Assessing Compensation for Landholders Affected by Coal Seam Gas Occupation

Abstract

Valuation theory in Australia has long established principles relating to compensation for the acquisition of part of property. However, the theory relating to assessing compensation for coal seam gas (CSG) occupation is relatively undeveloped and CSG activity in New South Wales (NSW) takes place in an environment where some confusion surrounds the subject of the assessment of landholder compensation. This paper applies a comparative study of the compensation assessment practices of courts in NSW, Queensland and Alberta. The research, reported in this paper, documents a trail of judicial decisions supporting the use of “piecemeal” and “before and after” approaches where mining infrastructure occupies part of property. A comparison of the valuation techniques identified in this study with the harms described by Fibbens et al 2013 indicates the “piecemeal” and “before and after” valuation approaches have greater utility in addressing losses to the balance land than the so called common industry practices used in NSW which ignore effects on the balance land.