IT HASN’T come cheap and it hasn’t been easy, but Yuleba grazier Richard Golden has gotten what he wants: conduct and compensation agreements (CCA) with both Origin and QGC, and on his terms.
“I think we now have the framework to live together but saying we can co-exist might be pushing things a bit too far. What I think we have is a respectful relationship,” Mr Golden said.
The separate agreements cover Origin Energy and QGC’s rights to develop 88 gas wells and 110km of roads and pipelines in total in the midst of 7900 hectares spread over Golden Grazing’s two properties, Potter’s Flat and Sollow.
The CCA with QGC was signed last July after 12 months of negotiations, while the Origin Energy agreement took three years to finalise and included a Supreme Court judgment and mediation prior to signing last month.
Drafted with the help of Creevey Russell Lawyers, Golden Grazing’s CCAs include unique clauses on biosecurity, soil and water management which initially alarmed both CSG companies because of their reluctance to depart from standard CCA terms.
“The lesson was that to get a contract of any worth that was self-executing – that could provide solutions and workable tools to fix problems between the parties – it took a long time and a lot of fighting,” he said.
“And if you don’t follow through, you’re a fool. You must enforce the terms you fought so hard to get.”
In court, the fight meant a David and Goliath battle between up to 18 legal representatives on Origin’s side versus the Golden Grazing team of two lawyers and a barrister. But armed with affidavits from professionals including an agronomist, a vet, a valuer and a noise, dust and air-quality specialist, Golden Grazing got its message across to the bench.
“We’re close enough to square that it’s made it well worthwhile, but emotionally it’s been pretty tough,” Mr Golden said.
Creevey Russell Lawyers partner Dan Creevey appeared for Golden Grazing and said primary producers who have considered similar legal action in order to get a CCA they felt comfortable with could easily be put off by a show of corporate might.
“The CSG companies say to them ‘It’s unreasonable for you to be paying barristers and lawyers’ but imagine what they themselves are spending,” Mr Creevey said.
“And while I have no doubt the (CSG company) land-access officers are genuine, they have a certain direction to follow that’s driven from corporate levels.”
In a few weeks’ time, the efficacy of the CCAs will be put to the test by what you could call the silent partners in all this, the Goldens’ 1450 breeders.
“We join Grey Brahman bulls with Hereford cows and those Brahmans are pretty sensitive so how they’re going to go joining with wells being drilled and pipes being laid around them will be interesting to see. If the cows aren’t in calf, we’ll know things didn’t go to well.”
Mr Golden said it is factors like this that are hard to explain to CSG companies, which imply as a rule of thumb that their activities reduce a property’s carrying capacity by 10 per cent.
“But with the location of their activity, we believe it’s more like 25-30pc, and it’s a common myth out there that money from a CCA is an income stream. It’s not. It’s compensation for income you’re unable to make.”
