austlii:nt/NTCAT/2025/14
General information, not legal advice.
NTCAT
2025-10-30
Original judgment source is linked above.
Blue Energy (Wiso) Pty Ltd & Wiso Oil Pty Ltd v Hughes Holdings and Investments No.600 Pty Ltd
Original Jurisdiction - Petroleum Act 1984
Over several months, Lavington Pty Ltd has been in negotiations with Blue Energy Limited as to the contents of a land access and compensation deed relating to Inverway Pastoral Station. Attached is the final form of the draft agreed between Blue Energy (Wiso) Pty Ltd, Wiso Oil Pty Ltd and Lavington Pty Ltd relating to Inverway Pastoral Station. This document could also be used for Riveren Pastoral Station.
Given that a sale and purchase of the pastoral stations was imminent, Lavington did not enter into the agreement but finalised it with a view to offering it to the purchaser of the pastoral stations. However, Lavington has no objection to your client entering into the agreement with Blue Energy with appropriate modifications.
We confirm LAA for Inverway Station has been provided to Hughes and we are awaiting provision of Hughes' executed counterpart of same.
Subsequent to receipt of the executed LAA counterpart from Hughes, we will revert to Blue Energy to arrange for full execution.
We are continuing to await instructions from Hughes in relation to secondary LAA proposed for Hughes' Riveren Station. We will revert to Blue Energy once we are in receipt of Hughes' instructions in respect of same.
We confirm that our Office is in receipt of Hughes' executed LAA counterpart for this Matter.
Notwithstanding, Hughes requires Blue Energy's commitment to attend to reimbursement of Hughes' reasonable and necessarily incurred legal costs in this Matter prior to Hughes exchanging their executed LAA counterpart with Blue Energy.
As Blue Energy would be aware, clause 5.5 of the LAA states Blue Energy agrees to pay Hughes' costs and expenses of the kind referred to in regulation 17 and 28 of the Petroleum Regulations 2020 (NT).
Regulation 17 provides the interest holder (Blue Energy) must pay the reasonable legal costs necessarily incurred by the designated person (Hughes) in connection with participating in the negotiation of the LAA.
The invoice is vague, refers to 'steps' and 'professional fees' and likely did not comply with the requirements under the Regulations to provide evidence of reasonable costs necessarily incurred.
The [Respondent's] conduct undermines the operation of the Act and Regulations to the extent that the only conclusion to be drawn is that it is not taking the steps required in good faith. The conduct appears obstructive. The Act requires all parties to act in good faith. The issue of costs is extraneous to the consensus arrived over the access agreements and costs are treated as such in the regulations.[2]
An evidential burden is not an "onus of disproof". An evidential burden does no more than oblige a party to show that there is sufficient evidence to raise an issue as to the existence (or non-existence) of a fact.
A thing is done "reasonably" in one of the protected activities in paras (a), (b) and (c) of s 18D if it bears a rational relationship to that activity and is not disproportionate to what is necessary to carry it out. It imports an objective judgment. In this context that means a judgment independent of that which the actor thinks is reasonable. It does allow the possibility that there may be more than one way of doing things "reasonably". The judgment required in applying the section, is whether the thing done was done "reasonably" not whether it could have been done more reasonably or in a different way more acceptable to the Court.
In conducting an assessment of legal costs, the cost assessor must consider: (a) whether or not it was reasonable to carry out the work to which the legal costs relate; (b) whether or not the work was carried out in a reasonable way; (c) the fairness and reasonableness of the amount of legal costs in relation to the work except to the extent that ss 339 or 340 apply to any disputed costs.
Perusal of email correspondence from Applicants' solicitor
Undertaking preparation for mediation (including review of LAA, drafting mediation statement of positions/discussion with clients)
[1] Petroleum Regulations 2020, reg 28(1)(a).
[2] Wiso Oil Pty Ltd & Blue Energy (Wiso) Pty Ltd v Hughes Investments [2025] NTSC 2, [48].
[3] Unattested Declaration of Bradly Steven Torgan dated 30 June 2025, [19].
[4] Dickson v Minister of Pensions [1953] 1 QB 228 at 232.
[5] JD Heydon, Cross on Evidence (12th Australian ed, LexisNexis Butterworths, 2020), [7060].
[6] Petroleum Regulations 2020, reg 17(3)(b) and reg 28(3)(b).
[7] Petroleum Regulations 2020, reg 40(1)(d).
[8] Sweetpea Petroleum Pty Ltd v Rallen Australia Pty Ltd [2022] NTCAT 1.
[9] Supreme Court of the Northern Territory Practice Direction No 4 of 2022.
[10] Applicant's Submissions in Reply dated 17 September 2025, [6].
[11] Wiso Oil Pty Ltd & Blue Energy (Wiso) Pty Ltd v Hughes Investments [2025] NTSC 2, [35].
[12] Bropho v Human Rights & Equal Opportunity Commission [2004] FCAFC 16; (2004) 135 FCR 105, [79].
[13] Bropho v Human Rights & Equal Opportunity Commission [2004] FCAFC 16; (2004) 135 FCR 105, [79].
Blue Energy (Wiso) Pty Ltd & Wiso Oil Pty Ltd
Hughes Holdings and Investments No.600 Pty Ltd [2025] NTCAT 14
(2011) 245 CLR 1
(2004) 135 FCR 105
(2023) 380 FLR 249