1 MARCH 2012
The 2012 year has already signalled some significant changes in the energy and resources sector. Notably, the Queensland Government have announced that:
- Transfer Duty will apply to the direct and indirect transfer of exploration permits (EP’s) and authorities to prospect (ATP) where they are capable of transfer; and
- Land in Queensland suitable for coal tenure will be subject to a competitive bidding tender process which is yet to be implemented.
EP’s & ATP – Transfer Duty
Previously transfer of an ATP or an EP was not dutiable and was not treated as land for the purposes of calculation of landholder duty.
Until legislation is enacted (which will be retrospective to 13 January 2012), the definition of land and statutory licence for the purposes of the Duties Act Qld will include:
- Prospecting and Exploration Permits under the Mineral Resources Act 1989;
- Authorities to Prospect under the Petroleum and Gas (Production and Safety) Act 2004, including those under the Mineral Resources Act 1923;
- Geothermal Exploration Permits under the Geothermal Exploration Act 2004;
- GHG Exploration Permits under the Greenhouse Storage Act 2009.
Transfer duty will apply to agreements for transfer and transfers entered on or after the start date, as well as other dutiable transactions relating to EP’s, such as creation or termination of a trust, a trust acquisition or surrender or a partnership acquisition.
EP’s held by a corporation or a listed unit trust will be treated as landholdings of the entity for the purposes of calculation of landholder duty.
Competitive Bidding Tender Process
The other significant announcement is that legislation will be introduced to allow for the periodic release of land suitable for coal tenure (possibly several times per year) through a competitive tender process requiring cash bidding.
Whilst the criteria for assessment of bids has not been documented, it is anticipated that the successful entity will be the applicant who can best demonstrate an ability to enhance the value of the coal resources of Queensland.
In the meantime, a transitional Restricted Area 394 (RA394) has been declared over Queensland, such that new applications for coal tenure are prohibited whilst the competitive bidding process is implemented. Existing EPC holders and applications for coal tenure lodged prior to 13 January 2012 will not however be effected by RA394.
You are a valued Kinneally Miley contact, for more information related to this Legal Update please contact us.
[contactsbox] [leftcolumn]Contact Partner: Tracey Miley
Direct Telephone : 07 3210 5780
Mobile Telephone : 0438 776 161
[email protected]