THE State Government will make ex-gratia payments of up to $10,000 available to landowners along the path of the proposed Wandoan to Banana rail corridor, despite the indefinite delay of the rail link project.
Jeff Seeney, Deputy Premier and Minister for State Development, Infrastructure and Planning, said the government and Surat Basin Rail Joint Venture (SBRJV) had agreed to end a mandate made in 2006 to develop the rail line, which would have linked the Wandoan thermal coal mine to Banana.
“The 214km rail line proposed by joint venture partners Glencore (formerly Xstrata Coal), Aurizon and ATEC Rail Group, would have linked the Surat Basin to the Port of Gladstone to allow the export of coal,” he said.
“However, in November 2012, the joint venture advised the State Government that due to global thermal coal market conditions and delays in other key projects in the Surat Basin coal supply chain, the timeframes for the rail project would be delayed.
“Following this advice, the acquisition program for the rail corridor was discontinued by the state and all parties came to a mutual agreement to end the mandate.”
About 36 landowners impacted by the proposed rail corridor will now be offered ex-gratia payments of up to $10,000. However, a state development area (SDA) will remain in place over the rail corridor.
“In recognition of the inconvenience and disruption caused, I have written to landowners in relation to the payment,” Mr Seeney said.
Roma lawyer, Tom Marland of Emanate Legal, has acted for landowners along the proposed rail line since the dispute began seven years ago. He said a $10,000 payment would do little to ease the concerns of landholders.
“It’s a token gesture,” he said.
“If they were really serious they would take back the SDA and deal with the project when it is finally viable.”
Mr Marland said the establishment of an SDA had severely impacted on property values along the rail corridor and landowners had genuine concerns about the impact of a high-volume coal railway line on their property management programs.
“One property sold during the past seven years demonstrated a loss of $1 million in value as a result of the proposed railway line,” he said.
Mr Seeney said the payments did not relate to any statutory claims landowners might lodge with the Coordinator-General in relation to the discontinued acquisition program.
“The state remains supportive of private development of a rail network to facilitate large scale coal mining in the Surat Basin and looks forward to working with all Surat Basin mining and infrastructure proponents in the assessment and progression of other rail projects,” he said.
Producer's plans now in limbo
THE rail link between Wandoan and Banana would have cut straight through the middle of Bill and Gail Blackley’s prime grazing property, 50km east of Wandoan.
The Blackleys have spent hundreds of hours negotiating the details of the rail line, planning underpasses for the movement of stock and machinery and new fencing programs to accommodate the railway.
Then in November, 2012, they were told the rail project would be delayed but that the state development area (SDA) would still exist to facilitate the construction of the railway when and if coal prices improved.
They say the declared SDA allows Surat Basin rail to move straight in and construct the line.
“We have no say in where it is constructed and have lost our bargaining power to gain fair compensation,” Mr Blackley said.
“You are allowed three years to seek compensation after the rail line is constructed.
“Even though the rail line backers have pulled out, Surat Basin Rail are still wanting us to agree to an interface deed. They have offered $10,000 to cover legal fees, provided an agreement is reached.
“I have advised them that I will agree to negotiate a template for an interface deed for the future provided they pay all legal fees and our personal time. We have had no reply.
“We aren’t against the project – we just want to be fairly compensated for the impost of it and the loss of value of the property.”
Mr Blackley said it was the loss in value of the property that most concerned him.
“Just going on the recent sale of a neighbouring property affected by the rail line, I would say the impact on our property value would be at least 30pc,” he said.