Presentation on theme: "Land Access O PPORTUNITIES FOR THE I NDUSTRY TO I MPROVE THE W AY IT ’ S D ONE. M ARCH 2012."— Presentation transcript:
Land Access O PPORTUNITIES FOR THE I NDUSTRY TO I MPROVE THE W AY IT ’ S D ONE. M ARCH 2012
Overview About Maloney Field Services Importance of Land Access Training and Competency Compensation General areas of improvement Conclusion
About Maloney Field Services National land access and valuation consultancy Established 1970 Offices – Adelaide, Brisbane, Newcastle Specialist services in land access and valuation
Specialist Services Management of Land and Easement Acquisition Programs Land Access Negotiations Landholder Liaison & Consultation Land Access Training Easement & Site Purchase Negotiations Preparation of Land Access/Acquisition Budgets Land Access Strategy Valuations & Assessments of Compensation
Why is Land Access so Important NOW? Energy exports - $24b (2004) - $69b World’s largest coal exporter World’s third largest uranium producer Top five producer of aluminium, zinc, lead, nickel, gold and silver World’s biggest LNG exporter by 2020?
Why is Land Access so Important Now contd…? Demand never been greater More exploration than ever before More land affected Closer to communities More intensive land uses Massive impact Equals greater access to land
Landholders are well organised and well informed Landholders are aware of rights and more legislatively aware Stronger voice Stronger landholder advocates Why is Land Access so Important Now contd…?
Land Access Consultants The “face” of major resource projects Link between landholders and resource companies Responsible for delivery of information Very important job
What Qualifications? Driver’s licence, heartbeat and breathing The “good bloke” syndrome Codes – bare minimum requirement - not enough
American Association of Professional Landmen? Mission – AAPL’s mission is “to promote the highest standards of performance for all land professionals to advance their stature and to encourage sound stewardship of energy and mineral resources” Professional Development Code of Ethics and Standards of Practice
Training More rigorous training National accreditation? Consolidate training programs
Compensation So you want to buy my farm he said You’d buy my farm said he Well, how do you value the light and shade? What is the price for the dream I have made? And how would you buy on size or grade the children who shouts you hear? You haven’t the money to buy he said This bit of farm said he You haven’t the money to buy the worth of the joy and prayer of the death and birth The power that blesses the fruitful earth and the love that made it dear 1984; Squire L Speedy – NZ Institute of Valuers
Reinstatement Principle “The outstanding principle of compensation for the taking of property is that the dispossessed owner, as far as money can provide must be put in a position equal to that which he would have held if the land had not been taken” RO Rost and HG Collins – Land Valuation and Compensation Australia, Australian Institute of Valuer’s 1984
Issues Valuation based approach Standard formulae linked to number of wells – not suitable Recognise that each property is different Recognise that impact on each property is different
Definition of Compensation Under the Petroleum and Gas (Production and Safety) Act 2004; Deprivation of possession of surface of the land; Diminution of land value; Diminution of use of land and improvements; Severance of any part of the land; and Any cost or loss incurred from the conduct of the relevant activities.
Deprivation of Possession of the Surface of the Land Value of the actual portion of land taken up Value adopted should reflect utility value of that specific parcel Standard Valuation principles apply Market comparison approach typically used
Diminution of Land Value Reduction in value of property due to project existing Could include effects of impact due to: Noise or dust impact of project on dwelling Long term changes to overland water flows, drainage Ongoing increased risk to safety of landholder, employees, family members Justifiable based on precedent, market evidence and expert assessment “Would the property sell for less under normal market conditions as a result of the project existing?”
Diminution of Use of Land and Improvements (Including reduced use that could be made through any improvements to it) Long term/permanent in nature Examples include (not severance, but reduced utility): – Inability to operate irrigation equipment/processes – Inability to utilise broad acre cropping machinery – Inability to blade plough or deep cultivate
Severance Relates to loss of access and ability to utilise as before due to it being severed from other land Road ways, tracks, rail corridors, above ground pipelines Loss can be determined using: – “Before and After” method – “Piecemeal” method Before and After Method requires relevant market evidence to support “after value” “Loss in value of land owned by the landholder caused by it being severed from other land owned by the landholder”
Costs Excludes costs of Alternate Dispute Resolution (ADR) Reasonably incurred Level of costs should reasonable Beware the unqualified advisor!! “Accounting, legal or valuation costs reasonably incurred by the landholder to negotiate or prepare a Conduct and Compensation Agreement”
Damages For example: Damage to tracks, fences, gates, stock grids Interruption to water, power, utilities and associated losses Injury to employees, family members Loss of livestock through injury, escape (gates left open) Production losses – Short Term – Cropped areas – Livestock carrying capacity/yields “Damages incurred by the landholder as a consequence of matters mentioned above”
Who Should Undertake Compensation Assessments? Land Access Code prescribes appropriate induction and training for representatives Qualifications for Assessing Compensation not defined Registered Valuers recognised by Courts and Legislation as qualified experts in assessing compensation Compensatable effects relate to impact on Property Value Registered Valuers with relevant experience
Property Specific Assessment Compensation to be assessed based on specific characteristics of individual property and agricultural enterprise No two properties are identical No two agricultural enterprises are identical No two impacts are identical Generic assessment models or matrices problematic Property Specific Assessment vs “One Size Fits All”
Assessment and Engagement Be prepared Know the market and the locality Provide detailed project information and plans Take time to understand the enterprise Discuss methodology Consultation and engagement WORKS not models! Determine Extent of Project Impact through Consultation
General Improvements Early Involvement Still an after thought Consultation often too late First impression Planning and accurate budgeting
Deliver documents or letters Notes and records Better plans, maps, photo’s Empower Land Access Consultants Avoid overly “legalistic” documentation One point of contact - consistency General Improvements contd….
Conclusion Land Access is essential Challenging role Improving however more improvement needed