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Amendments were passed on 6 December 2016, to the Water Act 2000 (Qld) (“Act”), improving Landholders positions when negotiating Make Good Agreements (“MGAs”).
Explanatory Notes to the Act, provide:
“While resource companies are under additional obligations in regards to make good agreements, this is justified because it ensures the appropriate apportionment of burden. Therefore, insofar as the amendments are regarded to impose liability, the amendments should be regarded to be fair and reasonable.”
This recognition is great news for Landholders who have experienced difficulties and expense in negotiation of MGAs with a resource company in the past.
Of note, the Act has broadened the responsibilities of the resource company during the negotiation of the MGA, the resource company is to:
Further, the Act grants the following to Landholders:
Prior to entering into negotiations with a resource company, Landholders are encouraged to seek independent legal advice to ensure that their interests are adequately protected.
Amendments to the Act do not substantially vary the process by which Landholders and resource companies negotiate and enter into MGAs. However, the amendments:
Landholders now have been provided a more transparent regime and are placed in a better position in their negotiations of an MGA.
Emanate Legal have a dedicated and experienced legal team dealing with negotiating and drafting MGAs. We are available to discuss any queries a Landholder may have.