Mineral and Energy Resources and Other Legislation Amendment Act 2024 (Qld) (MEROLA) now passed

The Mineral and Energy Resources and Other Legislation Amendment Bill 2024 (Qld) was introduced into the Queensland Parliament on 18 April 2024 and passed with amendment on 12 June 2024. This omnibus Bill amends various pieces of legislation including the Mineral and Energy Resources (Common Provisions) Act 2014 (Qld) (the MERCP Act), the Mineral and Energy Resources (Financial Provisioning) Act 2018 (Qld), the Mineral Resources Act 1989 (Qld), the Petroleum and Gas (Production and Safety) Act 2004 (Qld) and the Water Act 2000 (Qld).

When introduced the Act was predominantly aimed at introducing a new framework for managing the impacts of coal seam gas (CSG) induced subsidence. However, the Government has since removed the framework after industry consultation resulted in negative feedback. Further consultation will occur with industry in relation to the subsidence framework for possible re-introduction at a later date.

Commencement details

The Act was passed with amendment on 12 June 2024. Generally, the provisions of the Act will commence on a date to be fixed by proclamation, however the provisions of the Act discussed below relating to Coexistence Queensland commenced on the date of assent, which was 18 June 2024.

Coexistence Queensland

For some time, the Queensland Government has emphasised the importance of growing Queensland's resources sector while "fostering coexistence" between industry, landholders, and other stakeholders. Among other actions that are being undertaken by the Queensland Government, the Department of Resources has been committed to reviewing land access and coexistence institutions to ensure these institutions can continue to effectively cater for existing and emerging industries (including importantly, the renewable energy industry).

As it stands, Queensland's current coexistence framework consists primarily of:

• the land access framework, set out in the MERCP Act, which requires the negotiation of conduct and compensation agreements (CCAs) prior to particular activities; and
• the assessment and management of groundwater impacts caused by resource tenure holders exercising their underground water (groundwater) rights, including requirements for tenure holders to enter make good agreements (MGAs) with landholders under Chapter 3 of the Water Act.

To support coexistence outcomes, the framework has established the following institutions:

• the Office of Groundwater Impact Assessment (OGIA) which independently assesses and manages the cumulative impacts on ground water from coal seam gas (CSG) development;
• the GasFields Commission Queensland (GFCQ) which seeks to manage and improve the sustainable coexistence of landholders, regional communities, and the onshore gas industry in Queensland; and
• the Land Access Ombudsman (LAO) which seeks to independently resolve disputes between landholders and CSG companies in relation to CCAs and MGAs.

Upon commencement, the Gasfields Commission Act 2013 (Qld) will be amended to rebrand the GFCQ as "Coexistence Queensland" and broaden its functions. Coexistence Queensland's functions will now include an expansion of its coverage from onshore gas to the broader resources industry including renewable energy and providing advice to government and other stakeholders with respect to systemic coexistence issues. As part of amendments introduced to the Act, the Act clarifies that membership of community leaders councils established by Coexistence Queensland will include a representative from the agricultural industry as well as representatives from local governments, regional communities, the resources industry and the renewable energy industry.

The Act also expands OGIA's advisory functions designed to provide assistance to relevant government entities that request expertise regarding the possible impacts of authorised subsurface activities on the groundwater in that area.

Prohibition of greenhouse gas storage activities in the Great Artesian Basin

The Act is now also the legislative tool being used by the Queensland Government to introduce its well publicised restrictions of carbon capture and storage activities in the Great Artesian Basin. Specifically greenhouse gas (GHG) storage activities and enhanced petroleum recovery (EPR) activities are now banned in the Great Artesian Basin (GAB). The Act defines the geographical extent of the GAB in Queensland as that area on or below the surface of the plan area under the Water Plan (Great Artesian Basin and Other Regional Aquifers) 2017. It is noted that the ban is not defined by applying to specific aquifers.

To achieve this, the Act brings to an end, without a right to seek compensation, specific existing approved GHG exploration permits under the Greenhouse Gas Storage Act 2009 (GHG Act), the related approvals under the Environmental Protection Act 1994 (EP Act) and any related applications in train. The amendments also ensure decommissioning of existing wells and monitoring bores occurs and rehabilitation of the site after tenure is cancelled is undertaken. The necessary rights to access the land to undertake these activities are provided for in the Act. The Act makes clear that no future applications can be made for GHG exploration permits, GHG injection and storage leases under the GHG Act within the GAB. In practice, this will mean that applications cannot be made under the EP Act for these activities.

Financial Provisioning

Also to be amended is the Mineral and Energy Resources (Financial Provisioning) Act 2018 (Qld), specifically in relation to the prescribed "Estimated Rehabilitation Costs". On a day to be fixed by proclamation, the legislation now:

• will increase the prescribed Estimated Rehabilitation Costs for risk assessments from the existing $100,000 to $10 million, reducing compliance and administrative burden;
• seeks to better reflect company risk profiles by introducing an additional risk category "Moderate-High" and setting appropriate prescribed percentage contributions. "Very Low" and "Low" risk category rates remain the same, "Moderate" reduces from 2.75 per cent to 2.25 per cent, and the new "Moderate-High" is 6.5 per cent;
• will increase the fund threshold for BBB+ or better credit rated entities to $600 million, increasing availability of finance (a $450 million threshold is retained for all other entities).

In addition, amendments have been made to streamline the assessment process, seek to provide flexibility to environmental authority holders that are transitioning to higher risk categories and reduce some administrative burden for environmental authority holders under the scheme.

Caveats

The caveat regime in the MERCP Act is also set to be changed on a date to be fixed by proclamation. Specifically, a person claiming an interest in a resource authority may not only lodge a caveat over the resource authority itself, but will now also be entitled to lodge a caveat over an application for a mining lease under the Mineral Resources Act 1989 (Qld) (MRA). A caveat will now prevent registration of a transfer of an application for a mining lease under the MRA as well as registration of dealings generally.

Aerial surveys

More amendments to the MERPC Act will also occur upon proclaimation in relation to aerial surveys of land which aim to ensure that the land access framework is not overly onerous in circumstances where there is virtually no impact on the underlying land holder.

Specifically, the Act clarifies that a resource authority holder does not need to give an entry notice or a periodic report to a private land owner or occupier in relation to entry to that land if the activity being carried out is an aerial survey conducted at 1000ft or higher.

Alternative dispute resolution

The Alternative Dispute Resolution (ADR) process under the MERCP Act has been moved into a new Chapter 7A and will apply to additional processes (ie. not simply CCA negotiations). Of note, the changes concern the following:

• voluntary ADR pathways introduced for parties where a dispute arises in relation to the negotiation of an "access agreement" or in relation to the payment of negotiation and preparation costs under section 91. It is noted that these provisions are not intended to limit the ability of the parties to apply to the Land Court to resolve these matters;
• more extensive powers will be granted to the Land Court to decide alleged breaches of an access agreement, allowing the Land Court to make "any order it considers appropriate" (in addition to the Land Court's already established powers to vary access agreements and decide whether their terms are reasonable).
• clarifications to the requirements for the parties to engage in ADR (e.g. amendments to clarify that a "Party may require ADR" instead of "Party may seek ADR", which clarifies that the parties have a right to ADR); and
• clarifying the process and requirements for requesting arbitration and giving an arbitration election notice.

Obligation to keep Mining Lease (ML) "tidy"

The Act introduces a new condition on all MLs through an amendment to section 276 of the MRA (ie. General conditions of mining lease).

In effect, the holders of a mining lease must now "keep the surface of the area of the mining lease tidy during the term of the lease". This includes removing debris and rubbish from the area, ensuring waste is properly stored, and ensuring equipment is stored in an orderly manner.

Rent payments

Amendments to the MERCP Act in relation to rent payments include new measures for the calculation of rent for resource authorities as well as the deferral of rent payments in certain circumstances. The amendments have the effect of granting the Minster additional powers (by way of a regulation) to defer the payment of rent for a resource authority because of hardship. This will include exceptional circumstances such as natural disasters and emergencies of adverse economic conditions. A regulation may also provide power to the Minister to apply alternative methods of calculating rent payable for a resource authority, so that a lesser amount of rent is payable.

Development plans under petroleum legislation

With respect to Development Plans under the Petroleum and Gas (Production and Safety) Act 2004 (Qld) & the Petroleum Act 1923 (Qld), clarification amendments have been introduced to ensure it is clear that petroleum lease holders are always required to have a relevant development plan in place.

Clarification to relinquishment requirements

The Act introduces amendments to the PAG Act to clarify the relinquishment requirements that apply to ATPs granted prior to 25 May 2020 which were inadvertently omitted when the new relinquishment requirements (which apply to ATPs granted on or after 25 May 2020) were introduced.

Amendments to the Water Act 2000 (Qld)

Similar to the amendments made to the MERCP Act, the Act amends the Water Act 2000 (Qld) extend the applicability of ADR under the Water Act to clarify that a party may utilise the ADR process where they are unable to agree on the terms of a make good agreement as well as where the parties are unable to agree on the amount of the costs of the resource tenure holder must reimburse the bore owner.