Compensation frameworks take shape, show results, but activists still not happy

September 23rd, 2015

More evidence this week of the benefits that the gas industry can deliver to regional communities and landholders, with the Queensland Gasfield Commission Annual Report showing that Queensland farmers have earned $200 million in compensation from the coal seam gas industry.

Of course, in the face of evidence, activist groups have gone on the attack, labelling the Commission as ‘hopeless’ and describing compensation agreements as inadequate.

The information from the Gasfields Commission comes hot on the heels of a draft report from the NSW pricing regulator on possible compensation frameworks for landholders in that State.

According to Independent Pricing and Regulatory Tribunal (IPART) Chairman Peter Boxall:

“Stakeholder feedback and our assessment of arrangements in other jurisdictions have shown that the appropriate level of compensation depends on the individual circumstances of the landholder and the proposed activities of the gas company – both of which are highly variable and site-specific”

Rather than setting a monetary benchmark for compensation, IPART is instead proposing a model that allows landholders to estimate compensation using information that is appropriate for their own circumstances.

And as sure as night follows day, Lock the Gate isn’t happy with this proposal either, claiming that the release of the draft compensation framework is premature.

That’s an odd position, as the group was calling for clarity on ‘important’ issues like compensation as far back as January last year.

The Tribunal’s draft report is available here.

When we find a consistent position from Lock the Gate, we’ll let you know.

 

 

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