Concession Conflicts in Coal Seam Gas

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The occurrence of coal seam gas in association with the valuable commodity, coal, naturally creates the potential for concession conflicts between the holders of separate rights to extract these resources.

The rapid development of the coal seam gas industry in Queensland necessitated broad legislative change to govern the rights and priorities of the holders of coal and petroleum rights over the same areas of land.

The success of the Queensland legislative regime in dealing with concession conflicts between petroleum and mining lease holders is evidenced by the rapid growth of CSG production in the State and the number of LNG projects proposed to be built there. At the time of this paper, there are at least 6 separate LNG projects being planned for the export of LNG made from CSG produced in Queensland. Project proponents include major oil & gas companies such as Shell, BG, ConocoPhillips, Petronas and Santos. At the same time, Queensland is a major source of coal for overseas export and power generation within the State.

The Queensland legislative regime is clear, consistent and generally written in plain English, which makes it easier for non-legal persons to use it. We recommend this regime to other jurisdictions which have similar concession conflicts in relation to petroleum and coal or oil shale mining.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Michael Dulaney, Johnson Winter & Slattery | Attorney Advertising

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