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PROPERTY RIGHTS AUSTRALIA CONFERENCE AND AGM Friday, 13 June 2014

PROPERTY RIGHTS AUSTRALIA CONFERENCE AND AGM Friday, 13 June 2014. ‘Negotiation Tool Kit’. Ann Somers Emanate Legal Roma. Introduction. The purpose of this session is to: Identify best practice for entering into a Conduct and Compensation Agreement (CCA) that works for you and your business

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PROPERTY RIGHTS AUSTRALIA CONFERENCE AND AGM Friday, 13 June 2014

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  1. PROPERTY RIGHTS AUSTRALIACONFERENCE AND AGMFriday, 13 June 2014

  2. ‘Negotiation Tool Kit’ Ann Somers Emanate Legal Roma

  3. Introduction The purpose of this session is to: Identify best practice for entering into a Conduct and Compensation Agreement (CCA) that works for you and your business The key messages are: Planning Communication Review

  4. What do Gas/Mining Companies Want and Why? What the Company wants: Landowners to sign the CCA quickly Using the company CCA With as few changes as possible Keeping conditions and definitions in the CCA, broad Hopefully without landholder lawyers’ involvement Why: To meet project timeline and within budget Ensure all drill rigs/crews are never left on standby

  5. Flaws in this System Does not acknowledge that the CCA is the start of the process not the finish Limits the time for proper planning on both sides (i.e. leaves CCA open to drafting issues) Substantially increases the opportunity for legacy issues to become the ‘norm’ rather than the ‘exception’ Does not acknowledge the long term relationship between the landowner and the company Encourages bad behaviour Risk of break down in communications

  6. The Nature of the Beast Companies are multi-national Companies have Land Liaison Officers on the ground who report back to Head Office Head Office has the main sign-off

  7. Mega Project Mega projects are high budget - ten billion plus ($10B) Technically complex First time for Australia Multiple investors and contractors Tight internal and external timelines

  8. Game Plan Basic Principles: Go into it with your eyes open Instruct your team (consultants) Resolve to stay at the table and never give up Keep negotiations moving and go into negotiations organised Before negotiations start, decide: What is worth fighting for? What is a win? What are you willing to invest in conflict?

  9. Landowners’ Baseline Requirements for Business as Usual Getting a deal that you can live with requires you to: Define your business needs Understand the Company needs Plan properly (both sides) Ask the right questions Make sure that you don’t end up with any legacy issues

  10. Farm Business Requirements Based on Activities The CCA governs WHAT, HOW and WHEN activities can be done on your Land. Understand EXACTLY what activities they want to do on your property: Scout your property with a company scout and a constructor (you need to know where and how things will be built) Name infrastructure – yours and theirs Future projects and works – yours and theirs All parties sign off a map with agreed locations/GPS coordinates to a five (5) metre tolerance

  11. The Cost of Conduct How companies behave on your Land and in connection with you business, home and family is of utmost importance Companies can’t pay their way out of situations they have behaved their way into Basic Principles: Conduct is as important as compensation Agree to how people are to operate on your property before talking about money Conduct should not be an after thought

  12. Baseline Requirements of Conduct Basic Principle: Communication is your best protection From the start of your relationship keep records of all communications with the company Reviews and monitoring will reduce legacy issues and save time for both parties During construction: Rely on most recent drawing of infrastructure published to a five (5) metre tolerance Attend the Icebreaker Reviews for the lifetime of construction Attend meetings for each construction phase Notify of any changes to construction On completion: Compare CCA Map to As Built drawings Review Production terms of access

  13. CCA Sign Up The Map: Identify all infrastructure Must match the activities in the CCA Clearly defines boundary of the Land the subject of the CCA Execution: Question how long for the company to sign off No access until compensation paid Land Liaison Officer plus one (1)

  14. Wish List Government standard CCA written by Lawyers for Lawyers More emphasis on planning – less emphasis on disputes Decision makers for the companies should be at the table

  15. For More InformationEmanate Legal Suite 1, 79 Arthur Street ROMA QLD 4455 PO BOX 1058 ROMA QLD 4455 P (07) 4727 0170 F (07) 4727 0150 info@emanatelegal.com.au 168 Flinders Street East TOWNSVILLE QLD 4810 PO BOX 1984 TOWNSVILLE QLD 4810 P (07) 4727 0100 F (07) 4727 0150 info@emanatelegal.com.au

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