CSG companies negotiate with Landholders in two phases.  The first phase involves introductions by Company representatives and leads to detailed site inspections and usually environmental, cultural heritage and land surveys of proposed CSG infrastructure locations on your land – well sites, gathering corridors, lay-down areas, gravel pits and more.  Landholders are usually asked to agree the location of infrastructure and sign their name on survey plans.

The second phase of negotiations involves the negotiation of the terms of a Conduct and Compensation Agreement (CCA) at which point landholders usually obtain independent legal and other professional assistance such as valuation and accounting advice – fees for which the CSG company is liable.

Unfortunately it is not until the second phase that Landholders (through persistence in negotiations) get full disclosure of the impacts of the proposed CSG activities on their land – e.g. the noise, light, dust from drill rigs during construction and during regular work-overs of wells throughout the life of the gas field; or the impacts from high point vents or low point drains.

Knowing the full impacts will affect the positioning of the infrastructure and will affect your lifestyle and business.

Don’t engage in the first round without good legal advice.  Don’t sign maps or assist with surveys.

This information provides advice of a general nature only and should not be relied upon as legal advice.

Published 8 November 2014.