[2025] NSWLEC 1525
General information, not legal advice.
Land and Environment Court (NSW)
2025-07-23
Walsh C and Young AC
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Medium Neutral Citation: Buttai Gravel Pty Ltd v Independent Planning Commission [2025] NSWLEC 1525
Hearing dates: 17-21, 24-28 March 2025, final written submissions 11 April 2025
Date of orders: 23 July 2025
Decision date: 23 July 2025
Jurisdiction: Class 1
Before: Walsh C and Young AC
Decision: The Court makes the following orders:
(1) The appeal is dismissed.
(2) State significant development application SSD 6612 for the Martins Creek Quarry Project is refused.
(3) The exhibits are returned with the exception of Exhibits A, B, C, D, 6, 17 and 21 which are retained.
Catchwords: DEVELOPMENT APPLICATION – appeal – hard rock quarry – State significant development –pedestrian safety – traffic safety – traffic flow – uncertainty of impacts of intended road improvements – social baseline – negative social impacts related to quarry product road haulage – negative amenity impacts of quarry product road haulage – feasibility of rail haulage – economic benefits of the quarry – strategic benefits of quarry to major infrastructure – negative consequences outweigh benefits – insufficient information
Legislation Cited: Environmental Planning and Assessment Act 1979, ss 4.15, 4.17, 4.36, 4.38, 4.40, 4.5, 8.7,
Land and Environment Court Act, s 39
Roads Act 1993, s 138
Dungog Local Environmental Plan 2014
Environmental Planning and Assessment Regulation 2000, cl 49
State Environmental Planning Policy (Planning Systems) 2021, s 2.6, 2.7, 2.10, Sch 1
State Environmental Planning Policy (Resources and Energy) 2021, ss 2.17, 2.22
Cases Cited: Australian Protein Recyclers Pty Limited v Goulburn Mulwaree Shire Council [2006] NSWLEC 641
Dungog Shire Council v Hunter Industrial Rental Equipment Pty Limited [2019] NSWLEC 132
Dungog Shire Council v Hunter Industrial Rental Equipment Pty Ltd (No 2) [2018] NSWLEC 153
Dungog Shire Council v Hunter Industrial Rental Equipment Pty Ltd (No 3) [2019] NSWLEC 3
Gloucester Resources Limited v Minister for Planning [2019] NSWLEC 7
Hunter Industrial Rental Equipment Pty Ltd v Dungog Shire Council (2019) 101 NSWLR 1; [2019] NSWCA 147
Jonah Pty Limited v Pittwater Council [2006] NSWLEC 99
Kouflidis v Salisbury City Corporation (1982) 29 SASR 321
New Century Developments Pty Ltd v Baulkham Hills Shire Council (2003) 127 LGERA 303; [2003] NSWLEC 154
Ralph Lauren Pty Ltd v New South Wales Transitional Coastal Panel [2018] NSWLEC 207
Warkworth Mining Ltd v Bulga Milbrodale Progress Association Inc [2014] NSWCA 105
Weal v Bathurst City Council & Anor (2000) 111 LGERA 181; [2000] NSWCA 88
Texts Cited: Austroads Guide to Road Safety Auditing, 2020
NSW Road Noise Policy, 2011
Noise Policy for Industry, 2017
Social Impact Assessment Guidelines, 2023
Michael Porter, Competitive Strategy (1980)
Category: Principal judgment
Parties: Buttai Gravel Pty Ltd (Applicant)
Independent Planning Commission (First Respondent)
Maitland City Council (Second Respondent)
Dungog Shire Council (Third Respondent)
Representation: Counsel:
N Eastman SC and L Sims (Applicant)
H El-Hage SC and H Morgan (Solicitor) (First Respondent)
T To and A Hannam (Second Respondent)
M Wright SC and A Harker (Third Respondent)
Solicitors:
Sparke Helmore (Applicant)
Crown Solicitors Office (First Respondent)
Moray and Agnew Lawyers (Second Respondent)
Lindsay Taylor Lawyers (Third Respondent)
File Number(s): 2023/252084
Publication restriction: Nil
JUDGMENT
The refusal of a fresh development application for Martins Creek Quarry is appealed
Background
The site and locality
Pre-existing quarry operations
Recent quarry-related activities and legal proceedings
The development application: amendments, consultation and assessment
Application before the Court
Assessment framework
State Significant Development
Dungog Local Environmental Plan 2014
State Environmental Planning Policy (Resources and Energy) 2021
Development control plans
Issues in dispute
Road safety and traffic considerations
Background
Contentions relating to this topic
Expert Evidence
Four intended sites for road works
Procedural considerations
Owner’s consent
Findings
Merits considerations
Site 1 - New Quarry Access Road and Dungog Road
Site 2 - Gostwyck Bridge
Site 3 - Gresford Road and Dungog Road
Site 4 - King Street and Duke Street Paterson
Finding
Inter-relating ss 4.15(1) and 4.38(1) of the EPA Act
Residual road safety concerns
Expert evidence
Findings: residual road safety considerations
Impact on the Melbourne St/New England Highway intersection in East Maitland
Evidence
Findings
Noise impacts
Contentions relating to this topic
General acceptance that the proposal is adequate with respect to noise-related regulatory criteria
Haulage route noise
Operational noise
Social impact
Social impact assessment guidance
Contentions relating to this topic
The process of social impact assessment in support of the proposal
Social baseline
Differing expert interpretations
Finding
Foundations of Social Impact Assessment accompanying proposal
Finding
Particular social impacts
Selected topics and evaluation approach
Note on expert evidence
Social impact related to quarry trucks and pedestrian and vehicle safety
Finding
Vulnerable groups
Finding
Social impacts related to amenity
Findings
Strategic benefits of the proposal
Contentions relating to this topic
Question to the parties and response
Buttai Gravel’s reference material
Demand for hard rock as of relevance to the proposal
Supply
Findings
Localised benefits
Findings
Rail feasibility
Context
Insufficient information
Balancing competing factors in evaluation of the development application
Selected further statutory considerations
Conclusion
Orders
The applicant in these appeal proceedings is Buttai Gravel Pty Ltd (BG). BG is the operator of Martins Creek Quarry (quarry), an existing hard rock quarry enterprise located in the Dungog Shire Council (DSC) Local Government Area (LGA). BG appeals under s 8.7 of the Environmental Planning and Assessment Act 1979 (EPA Act) against the refusal of a fresh development application (DA) which would provide for an expansion of currently approved quarry operations and associated development.
The DA is State significant development within the meaning of s 4.36(1) of the EPA Act, and the consent authority is the NSW Independent Planning Commission (IPC), the first respondent in the proceedings. The IPC’s reference number for the DA is SSD-6612. The IPC refused the DA on 13 February 2023, after the NSW Department of Planning and Environment had recommended consent be granted subject to conditions.
The DA is seeking consent to extract, process and transport by road and rail up to 1.1 million tonnes per annum (Mtpa) of quarry materials, including expansion into a new extraction area. A defined quarry truck haulage route from the quarry to the New England Highway at Maitland passes through both Dungog LGA and Maitland LGA. Maitland City Council (MCC) and Dungog Shire Council (DSC) were joined to the proceedings as second and third respondents, respectively.
Briefly here, we have determined that the appeal should be dismissed and the DA refused. There are two principal aspects behind the reasoning for this decision. The first aspect is based on the need to balance the public interest in approving or disapproving the project. While there are certainly beneficial aspects to the proposal, the negative consequences outweigh benefits. The beneficial impacts of the DA relate principally to the supply of the quarry's product for the construction sector and particularly for infrastructure projects of public significance. The negative consequences are particularly in relation to adverse traffic and pedestrian safety implications and social and amenity related impacts in the local area. The second aspect is based on our finding that BG has not made its case in relation to certain matters which warranted further resolution. Each aspect is individually determinative in this matter.
The quarry site is located near the village of Martins Creek, approximately 7 km north of the village of Paterson in the Hunter Valley region of NSW (see Figure 1).
The quarry is located off Station Street, Martins Creek and includes a rail spur, which is connected to the Main North Coast railway line. The quarry site is described in the Applicant’s Closing Submissions, dated 27 March 2025, (ACS) par 12 as comprising Lot 6 in DP 1298985, Lot 5 in DP 242210, Lot 42 in DP 815628, Lot 1 in DP 1006375, Lot 1 in DP 204377 and Lots 4 and 6 in DP 249026.
The site is bound by the North Coast Rail Line to the west, Vogeles Road to the south and a densely vegetated ridgeline to the north and east. To the north of the site is the locality of Vacy. Existing road access to the site is via Grace Avenue and Station Street in Martins Creek. The site’s rail spur connects to the North Coast Rail Line providing access to Newcastle, Sydney and Regional NSW.
Apart from Martins Creek village itself, the predominant land use in the quarry environs is agricultural. Rural residential land use has become prominent more recently, with land subdivision and housing to the north and south of the Martins Creek village and in Vacy (Ex A Tab 04 p 1.4).
The quarry product haulage route is 28 kms in length from the site to the New England Highway at East Maitland (indicated in blue in Figure 1). The route passes through quite a range of land uses including agricultural areas, Paterson village in Dungog LGA and the developing areas of Bolwarra and Bolwarra Heights before entering Maitland town centre.
The hard rock quarry has been operating since it was established in around 1914, initially by Department of Railways. The quarry was established to supply railway ballast and other quarry product for the State’s rail network. Expansion of quarry operations has occurred over time, with rail or transport related authorities operating the quarry until 2012. Since then, Daracon Group entities have operated the quarry.
For clarity here we note that in some of the evidence "Daracon" and "Buttai Gravel" are used to describe the applicant, interchangeably.
The site of the quarry operations (and for the current DA) can be thought of as comprising two distinct areas, which can be referenced as the western land (located northwest of Station Street), and the eastern land (located northeast of Station Street). The quarry commenced in the eastern land. When, in about 1991, the eastern land's andesite rock was fully exploited, the State Rail authority (SRA) obtained the western land and sought consent to operate a quarry on it primarily for obtaining railway ballast.
Figure 1 – Site setting with “primary haulage route” identified in blue (Source: Umwelt, Amended Development Application and Response to Submissions (Ex A Tab 04 p 1.3))
Figure 2 – Quarry site (Source: IPC Bundle (Ex A Tab 19A Department’s Assessment Report p 3))
“An extractive industry (designated development) being a quarry, winning material primarily for railway ballast.”
The 1991 development consent did not include a limit on the volume of material permitted to be extracted from the site and did not have any expiry date. Notably, Condition 6 of DA 171/90 stated that the operator must not transport more than 30% of the quarry products by road without further specific approval from DSC (First Respondent’s Closing Submissions dated 27 March 2025 (IPC-CS) par 6).
Quarrying operations commenced in the western land in approximately 1993. In May 1999, DSC resolved to accept that the quarry had continuing use rights for part of Lot 1 DP 1006375 for the processing of material of up to 449,000 tonnes per annum (tpa). Environment protection licence no. 1378 (EPL 1378) granted on 27 April 2000 allowed extraction to 500,000 tpa.
Today, the quarry produces hard rock extractive materials used in rail, concrete, asphalt and general civil construction across the Hunter, Central Coast, Northern NSW and Sydney Metropolitan areas. The rail spur on the site has historically been primarily used to supply railway ballast for regional rail infrastructure projects.
For circumstances that become clearer when issues relating to impact evaluation are in attention, it is necessary to provide a considerable mapping-out of recent history.
In 2012, it was Hunter Industrial Rental Equipment Pty Ltd (another Daracon Group company) which commenced to operate the quarry. In 2015, DSC commenced proceedings against this entity in the NSW Land and Environment Court (LEC) seeking enforcement orders in respect of alleged breaches of the EPA Act and the 1991 development consent, including that the quarrying operation was no longer primarily for obtaining railway ballast. A judicial review of a variation of EPL 1378 for the quarry dated April 2007, permitting the extraction of 2 million tpa, was also sought (IPC-CS par 11). A factor here was alleged quarry product road haulage considerably exceeding the consent requirement that the operator not transport more than 30% of the quarry products by road (now evident from Ex K which provides an historical picture of “historical road tonnages from 1993-2025”).
DSC was largely successful in its LEC claim and consequential declarations and orders were made by Molesworth AJ on 12 October, 2018: Dungog Shire Council v Hunter Industrial Rental Equipment Pty Ltd (No. 2) [2018] NSWLEC 153 (Hunter Industrial 1). Certain orders were made restraining use, but with a related stay to such orders for a period of 3 months, during which operations were to be conducted in accordance with an Interim Environmental Management Plan (IEMP) (attached at Annexure C to that judgment). An aspect of the stay of the restraining orders was the Court’s supposition, on the evidence, of the advanced status of a development application seeking to legitimise the quarry and related transport activities, and which would require a full merits review by the consent authority.
While there were a number of exclusion provisions, safeguards and the like, the IEMP included the following:
“1. No more than 650,000 tonnes of product will be dispatched from the Quarry by road in any twelve month period.
2. No more than 130 laden trucks will be dispatched from the Quarry in one calendar day.
3. No more than 30 laden trucks will be dispatched from the Quarry in any 1 hour period.”
Orders were also made declaring the EPL variation invalid.
Acting Justice Molesworth heard and declined to grant a stay of his orders by further judgment dated 10 January, 2018: Dungog Shire Council v Hunter Industrial Rental Equipment Pty Ltd (No 3) [2019] NSWLEC 3.
Hunter Industrial Rental Equipment Pty Ltd lodged an appeal against this LEC decision which was dismissed by the Court of Appeal in May 2019: Hunter Industrial Rental Equipment Pty Ltd v Dungog Shire Council (2019) 101 NSWLR 1; [2019] NSWCA 147 (Hunter Industrial 2). The Court of Appeal also declared with respect to Lots 5 and 6 DP 242210, at Order 2A(1) that:
“… the consent to development application 171/90/79 granted by Dungog Shire Council (“the consent”) permitted use of the land only as a quarry primarily for the purpose of winning material for railway ballast, in breach of which the appellants have since 2012 used the land otherwise than primarily for winning railway ballast, in breach of the Environmental Planning and Assessment Act 1979 (NSW) (“the Planning Act”), s 4.2(1)(a).”
“Order that the appellants by themselves, their employees, agents and assigns, be restrained from:
(a) using the land otherwise than as a quarry primarily for the purpose of winning railway ballast; and
(b) excavating rock on lot 6 DP 242210 without a consent granted for such activity under the Planning Act; and
(c) permitting the transport of greatly more than 30% of the quarry products derived from rock excavated from the land, and whether processed on the land or on adjoining land, including lot 1, DP 1006375, by public road on an annual basis without the specific approval of Dungog Shire Council.”
These restraining orders were stayed for a 3-month period or until “the determination of the State significant development application lodged by the appellants with respect to the land”, whichever is the earlier. The stay was subject to operations being conducted in accordance with the IEMP referenced in this judgment at [19]. Orders were also made confirming the EPL variation invalid.
Finally, in regard to legal proceedings up until the case before us now, on 21 August 2019, Hunter Industrial Rental Equipment Pty Ltd brought a notice of motion to the LEC seeking to extend the stay made by the Court of Appeal for a further 12 months. In September 2019, Duggan J determined to dismiss the motion (Dungog Shire Council v Hunter Industrial Rental Equipment Pty Limited [2019] NSWLEC 132 (Hunter Industrial 3)).
Based on the orders of the Court of Appeal determination, the development consent and EPL 1378, the key elements of the approved quarry operations can be summarised as follows (Ex A Tab 19A p 5):
According to Ex K, from 2002-2003 to 2018-19 the tonnes per annum transported by road from the quarry exceeded 400,000. During the period of 2019-20, haulage rates complied with current approvals (133,048 tpa vs in the order of 150,000tpa agreed as permissible). For the most recent five years, referenced in Ex K, road haulage rates have been very low.
Figure 3 - Historical road tonnages (Source Ex K)
The DA was lodged with the Department of Planning and Environment, accompanied by an Environmental Impact Statement (EIS) (Ex 2 Tab 9). Henceforth, for references to the Department of Planning and Environment, or its later equivalents, the abbreviation “the Department” will be used. The DA sought approval for (among other activities) an expansion to the existing quarry operations to enable the extraction of up to 1.5 million tonnes per annum (Mtpa) of hard rock materials for a period of 30 years (IPC-CS, par 15-16). The DA and EIS were publicly exhibited between October and November 2016. In response, 873 submissions were received with 419 objections, 447 in support and 7 providing comment.
After further interaction with the Department, in May 2021, BG lodged an amendment to the DA and further impact assessment work with the Department. The amended application sought approval for extraction of 1.1 Mtpa of quarry product material over 25 years transported by road and rail, with road haulage up to 500,000 tpa. Among numerous other provisions, no trucks would pass through Paterson Village before 6:45am. The amending documents were publicly exhibited in June and July 2021. In response, 670 submissions were received with 634 objections, 31 in support and 5 providing comment (IPC-CS par 24-25).
In August 2021, the Department requested BG to respond to issues raised in the submissions. BG provided a Revised Project Submissions Report in November 2021 (Ex 2 Tab 25 and Ex A Tab 8). On 5 October 2022, the Department provided to the IPC its assessment report (Department’s Assessment Report), finding that “the benefits of the project outweigh its residual costs, and that the project is in the public interest”. It was found by the Department that the project warranted approval, subject to nominated conditions of consent (Ex 2 Tab 27).
In November 2022, the IPC invited further direct public submissions in respect to the proposal and a public meeting was held. 1453 submissions were received with 931 objections, 517 in support and 5 providing comment. On 23 November 2022, the IPC wrote to the Department seeking further information from it, and BG, in respect of a number of matters (IPC-CS par 32 and 34). Further information was provided. This resulted in further amendments to the DA with a reduction in the volume of quarry product materials to be transported by road to 450,000 tpa along with a reduction in the daily road haulage truck movements from 280 to 180 movements on the primary haulage route. The IPC sought submissions on these amendments during December 2022 and January 2023 and received 89 submissions (IPC-CS par 36-39).
On 13 February 2023, the IPC refused the Revised SSDA and issued a Statement of Reasons for Decision (Ex 2 Tab 43).
As indicated above, the proposal has been on public exhibition a number of times. There is extensive documentation of lay submissions in the material before the Court. More recently, the objecting submissions have been notably more numerous than those supportive. Positive submissions commonly related to local economic benefits and the wider strategic need for the quarry material. The main topics raised by those who objected were traffic and safety implications, social impacts and amenity impacts (IPC-CS par 33).
A number of further points on lay submissions can be noted relating to events closer to the hearing. First, is that following a pre-trial mention on 11 March 2025, and after some planning options relating to traffic and pedestrian management for Paterson village were prepared on behalf of BG, a public exhibition of these plans occurred, via IPC’s website. Some 342 public submissions were received by the time of the closing of the notification period on 26 March 2025 (Ex 30). Second is that on 17 March 2025, prior to the commencement of the site inspection for these proceedings, the Court attended Tocal Hall to hear a number of lay submissions from objectors, with many others also in attendance. Ex 4 provided some of the documentary material behind the lay submissions heard directly by the Court. Finally, we indicate that on the first day in Court a further lay objecting submission was heard via AVL. Various points from lay submissions arise later in the judgement.
The DA’s key constituent parts can be summarised as follows:
Extraction of up to a maximum of 1.1 Mtpa of quarry product material over 25 years from the site, including:
(a) Quarrying and processing operations on the site from 7.00am to 6.00pm Monday to Saturday, with blasting restricted to 11.00am to 3.00pm Monday to Friday; and (b) Transportation of quarry product from the site by road and rail (involving an extension to the existing rail spur to assist with rail haul feasibility), with road transportation of up to 450,000 tpa on the primary haulage route.
(a) Peak daily movements of 80 laden trucks (160 movements) consisting of:
(i) 12 laden trucks per hour (24 movements), Monday to Friday between 7.00am and 3.00pm; and (ii) 9 laden trucks per hour (18 movements), Monday to Friday between 3.00pm and 6.00pm;
(b) No road haulage of quarry product on Saturday, Sunday and public holidays; (c) No road haulage between 24 December and 1 January, inclusive; (d) No trucks through Paterson Village before 6.45am, although BG committed to amending this to no trucks along the haul route before 7.00am during the proceedings (Tcpt, 27 March 2025, p 508(1)).
Various commitments in relation to quarry management practices, driver behaviours and in relation to ongoing community consultative arrangements and financial contributions.
BG states in its written and oral submissions that certain proposed road upgrades on the primary haulage route do not form part of the DA before the Court (but, as explained later, responsibility for such works are attended to by way of proposed conditions of consent).
BG indicated a commitment to surrendering the existing development consent for the quarry were the DA to be approved. As such activities at the quarry would be regulated under a single contemporary consent.
Under s 2.6 and Sch 1 of State Environmental Planning Policy (Planning Systems) 2021 (Planning Systems SEPP), the development is State significant development as it is for the purpose of an extractive industry that extracts more than 500,000 tonnes of extractive materials a year.
In accordance with s 4.5(a) of the EPA Act and s 2.7 of the Planning Systems SEPP, the IPC was the consent authority for the application as more than 50 unique submissions in the form of objections were made in respect of the development application.
Section 4.38 of the EPA Act sets out specified determination powers of a consent authority for State significant development. BG highlighted that s 4.38(1) provides that consent for State significant development may be granted with such modifications or on such conditions as the consent authority may determine. A point of tension in the proceedings was the application of this power, under s 4.38(1) vis-a-vis obligations to consider “the likely impacts of the development” under s 4.15(1) of the EPA Act.
Dungog Local Environmental Plan 2014 (DLEP) applies to the site. Under DLEP, the site is zoned primarily RU1 – Primary Production and partially RE1 – Public Recreation. Extractive industries are permissible with development consent in the RU1 zone but prohibited in the RE1 zone. Activities proposed within the RE1 zone comprise surface water management and environmental monitoring (ACS par 257). Section 4.38(3) of the EPA Act provides that development consent for State significant development may be granted despite the development being partly prohibited by an environmental planning instrument. Accordingly, the development application before the Court is permissible with consent.
Other DLEP provisions are not relevant to our findings and require no attention here.
Before determining an application for consent for development for the purposes of mining, petroleum production or extractive industry, the consent authority must—
(a) consider—
(i) the existing uses and approved uses of land in the vicinity of the development, and
(ii) whether or not the development is likely to have a significant impact on the uses that, in the opinion of the consent authority having regard to land use trends, are likely to be the preferred uses of land in the vicinity of the development, and
(iii) any ways in which the development may be incompatible with any of those existing, approved or likely preferred uses, and
(b) evaluate and compare the respective public benefits of the development and the land uses referred to in paragraph (a)(i) and (ii), and
(c) evaluate any measures proposed by the applicant to avoid or minimise any incompatibility, as referred to in paragraph (a)(iii).
Before determining an application for consent for State significant development for the purposes of mining, petroleum production or extractive industry, the consent authority must consider any applicable provisions of the voluntary land acquisition and mitigation policy and, in particular—
(a) any applicable provisions of the policy for the mitigation or avoidance of noise or particulate matter impacts outside the land on which the development is to be carried out, and
(b) any applicable provisions of the policy relating to the developer making an offer to acquire land affected by those impacts.
Each of the respondents prepared individual statements indicating contentions which they saw as warranting refusal of the application. There is some overlap amongst these contentions. In our view, the essential issues in dispute can be categorised into the following seven topics:
Road safety and traffic considerations;
Noise impact;
Social impact;
Strategic justification for the proposal;
Other benefits;
Feasibility of rail; and
Insufficient information.
The public interest is also raised. While arising in other contentions, this topic is dealt with when drawing conclusions relating to the balancing of the positive and adverse effects of the proposal.
The key point of attention for us here relates to the “primary haulage route” as identified in Figure 1. The proposal would result in additional traffic along the primary haulage route, including through the residential settlements of Martins Creek, Paterson, Bolwarra Heights, Bolwarra and East Maitland. Approximately 13 km of the primary haulage route is located within the Dungog LGA and approximately 15 km is located within the Maitland LGA.
The predicted increased truck movements along the primary haulage route are as outlined at [36]. The majority of the quarry product hauled by road would use a truck and dog (trailer) combination, with semi‐trailers and rigid trucks also in use (Ex A Tab 04 p 6.108).
The application was accompanied by specialist material in support, including the following:
Traffic Impact Assessment, SECA Solution (May 2021) (Ex A, Tab 4);
Martin’s Creek Quarry – Existing Condition Road Safety Audit Report, October 2024, CCHD (Traffic joint expert report filed 14 February 2025 (Ex 10 Annexure B p 70ff);
Martin’s Creek Quarry – Existing Condition Thematic Road Safety Audit Report – Heavy Vehicles, November 2024, CCHD (Ex 10 Annexure C p 154ff);
Martins Creek Quarry Crash Assessment of Haulage Route, 2 December 2024, TTPP (Ex 10 Annexure D p 257ff); and
Memorandum RE: Traffic Modelling, 28 January 2025, TTPP (Ex 10 Annexure E p 330ff).
BG nominates various measures aimed at addressing potential road safety related impacts, including certain nominated road works and intersection upgrades along the primary haulage route, certain financial contributions towards both capital works and maintenance to DSC and MCC and other factors addressed in consent conditions.
An understanding of the relationship between the proposed increased truck movements and background traffic volumes at various points along the haul route can be understood from traffic composition data in the Existing Condition Thematic Road Safety Audit Report – Heavy Vehicles (Thematic RSA).
Figure 4 - Varying traffic composition along the haul route (Source: Thematic RSA Ex 10 Annexure C p 164)
Each respondent raised contentions relating to this topic. The contention of essential relevance is that the predicted increased truck movements would have an unacceptable impact on traffic and pedestrian safety along the haulage route. The key specific subtopics for attention are as follows:
The four intended sites for road upgrade works – and in particular the resolution of detail;
Residual traffic safety concerns (assuming achievement of the upgrade works); and
Impact on the Melbourne St/New England Highway intersection in Maitland.
It is accepted by BG that “certain road upgrades along the road haulage route are reasonably necessary to address the potential impacts arising from the increase in road haulage” (ACS, par 37). DSC puts it more that the increased truck volumes could not operate safely without the proposed road works.
The works comprise:
A new intersection at the new quarry access road and Dungog Road (nominated as Site 1);
Upgrades to the approach to Gostwyck Bridge (Site 2);
Upgrades to the Gresford Road and Dungog Road intersection (Site 3); and
Upgrades to the King Street and Duke Street intersection in Paterson village (Site 4).
Both procedural and merits concerns were raised in relation to these proposed works.
“The owner whose consent to the making of the development application is required is the owner of the land on which the development the subject of the development application is to be carried out: North Sydney Council v Ligon 302 Pty Ltd (1996) 185 CLR 470 at 476-477; [1996] HCA 20. This is “the land to which the development application relates” (cl 49(1) of the Regulation). The development application seeks consent to carry out particular development on particular land. The development application must contain “a description of the development to be carried out” and “the address, and formal particulars of title, of the land on which the development is to be carried out” (cl 1(1)(b) and (c) of Sch 1 of the Regulation). Having identified the development and the land on which the development is to be carried out, the development application must contain “evidence that the owner of the land on which the development is to be carried out consents to the application” (cl 1(1)(i) of Sch 1 of the Regulation).”
“The “Amended Development Application and Response to Submissions” sets out the “Revised Project” the subject of the application. Its key features are identified to include:
upgrades to the Dungog Road and Gresford Road intersection; the King and Duke Street intersection (within the village of Paterson); and upgrades to the approach to the Gostwyck Bridge.”
As DSC is not the consent authority, the Court has no power under s 39(2) of the Land and Environment Court Act 1979 to step into the Council’s shoes and provide owner’s consent, according to DSC.
In response, BG indicates directly in closing submissions that the DA “does not seek development consent for road works within the DSC road reserve”. It is further put (ACS, par 56) that:
“However, the lawful condition making power pursuant to s 4.38 may extend to the requirement to carry out those works. That condition is within power in the Ulan sense, and is precisely what has been initially recommended by the Department40, and now carried into the conditions proposed by the IPC41. This does not give the Applicant any right to carry out the work. As is noted above and expressed in the conditions (B44 for example) any works required by the conditions would be subject to an approval under the Roads Act, which would be by DSC with TfNSW’s concurrence under s 138(2) given the road is a “Main Road” (MR101) for the purposes of s 46 of the Roads Act and is therefore a classified road…”
“74 … The power to impose conditions on an approval under Part 3A of the Act is not confined in the manner specified for conditions of development consent under Part 4 of the Act (see sections 80 and 80A of the Act). The power to grant approval under s 75J is expressly stated to be able to be exercised, first, “with such modifications of the project” and, secondly, “on such conditions”, as the Minister may determine in both cases.
75 Clearly, the power to impose conditions on an approval under Part 3A is wide. There is no warrant to read that power down by imposing the limitation argued by Ulan that parameters of any adjustment to the Project to meet any outcome or objective specified, must also be specified.
76 In these circumstances, the failure of Condition 29 to specify the permissible parameters for adjustment of the scale of mining operations does not cause the Condition to be outside the class of conditions which s 75J permits.
77 Moreover, Ulan’s argument that without such specification of parameters, there is legally unacceptable uncertainty, is not established. Questions of degree are always involved in determining whether a condition is sufficiently uncertain so as to be outside power: Transport Action Group Against Motorways v Roads and Traffic Authority (1999) 46 NSWLR 598 at 629 [117].
78 Retention of practical flexibility, leaving matters of detail for later determination, and delegation of supervision of some stage or aspect of the development, may all be desirable and be in accordance with the statutory scheme: see Scott v Wollongong City Council (1992) 75 LGRA 112 at 118; Transport Action Group Against Motorways v Roads and Traffic Authority (1999) 46 NSWLR 598 at 629 [117] - 630 [122]; Kindimindi Investments Pty Ltd v Lane Cove Council (2006) 143 LGERA 277 at 292 [55] and Hurstville City Council v Renaldo Plus 3 Pty Limited [2006] NSWCA 248 (8 September 2006) at [89].
79 In this case, leaving a choice of the means by which the outcome or objective of ensuring sufficient water for all stages of the project is to be met, to the proponent, including the nature and extent of adjustments that should be made, cannot be said to be outside the statutory scheme of Part 3A of the Act and in particular the power under s 75J to grant approval subject to conditions.”
The provisions of s 4.38(1) of the EPA Act are relevantly facultative and are intended to provide for a certain level of “practical flexibility” in relation to the evaluation of State significant development. In turn, even if it were not the case with the DA itself at present (ie BG’s statement in Court indicating the DA does not seek development consent for road works within the DSC road reserve does not change the “land to which the development application relates”), it is reasonable to assume there is the availability of power within s 4.38(1)(a) to grant approval “with such modifications of the proposed development” as necessary to bring about a DA in accordance with BG’s Court submissions. That is, one which excludes the proposed road works, but requires the works to be undertaken as conditions of consent under s 4.17(1)(f) of the EPA Act.
In relation to the second procedural point, generally, we accept the submissions of DSC that there is a requirement to consider the likely impacts of these proposed roadworks in accordance with s 4.15(1) of the EPA Act. The question as to whether these impacts cannot be adequately assessed under s 4.15(1) due to the lack of detail and uncertainty about the proposed road upgrades will be considered when we turn to the merits questions on this topic. But noteworthy and in accord with the submission of DSC we do accept there has been a significant change in relation to the powers relating to the determination of DAs for State significant development, or its equivalent, when the Ulan statutory setting is compared to the present. Section 4.40 of the EPA Act now provides that s 4.15 applies to the determination of DAs for state significant development. This is not representative of the Ulan setting.
BG has prepared conceptual drawings for the proposed road upgrades to assist assessment. These conceptual drawings have been designed to accommodate BG’s proposed annual road haulage of 450,000 tonnes and to form a basis for the preparation and approval of the final detailed designs. BG also states that the impacts of the proposed road upgrades have been assessed, relevantly, in the documentation outlined at [52] and the following additional material:
In respect to Gostwyck Bridge: the Gostwyck Bridge Report (Ex A Vol 3 Tab 4(m))
In respect to traffic queuing: in the traffic engineers' joint expert report (Ex 10 including Annexure I);
In respect of parking implications in Paterson for the works at King and Duke Street: also in the traffic engineers' joint expert report;
Road safety impacts of the proposed road upgrades: in the Safe Systems Assessment annexed to the traffic engineers' joint expert report (Ex 10 Annexure J); and
Civil engineering requirements for the works: in the civil engineers' joint expert report (Ex 8, which includes reference to the particular concept drawings for Sites 1-3).
In regard to the information necessary for an assessment under s 4.15(1) of the EPA Act, BG considers that mindful of Ulan, the Court only needs to understand the "outer boundaries" of the potential scope of impacts in order to carry out the required assessment (Tcpt, 27 March 2025, p 479(24)).
DSC argues that in respect of Sites 1 to 3, the Court does not even understand the impact outer boundaries.
There was evidence of a consensus that none of the conceptual designs for Sites 1 to 3 comply with the minimum sight stopping distances under relevant Austroads standards. There seemed to also be a consensus among the civil engineering and traffic experts that any final design of Sites 1 to 3 would require some combination of the following:
A design concession from TfNSW; and/or
Lowering of the applicable speed limits in the relevant environs of the proposed intersection and road works by TfNSW; and/or
If TfNSW refuses to provide either of the above approvals, then the works will need to change from the conceptual design submitted by BG to another configuration satisfactory to TfNSW.
DSC argues, and no documentation provided to us indicated other than, that TfNSW has not at this stage agreed to the concept road works, including associated concessions, at any of the sites.
We now turn to the expert evidence. First in relation to Sites 1 to 3, then to the Paterson Village site (Site 4).
Once haulage rates exceed the currently approved tonnages, a new access road to the quarry and associated intersection with Dungog Road is agreed as required. Beyond the joint report, potential issues and impacts associated with a design for Site 1 were considered when the civil engineering experts were subject to examination by the parties.
Mr Kenny indicated:
“… site 1, we’re talking about, I think, the major - the major area of requirement for concession is going to be the stopping site distance. If that concession is not agreed to, then we’ll have to come up with an alternative design. That alternative design, as initial advice I’ve had is, may involve a fill of three metres, which is going to have constructability issues. It may well have some issues in terms of needing retaining walls, so that we don’t impinge on people’s property. It may have some impact on the public utilities. And also, with detailed design, that’s when you usually do your detailed work on your drainage. But I don’t see - I don’t see drainage as being a particularly tough issue here, because it’s actually located at the top of a crest…” (Tcpt, 21 March 2025, pp 284(50)-285(5))
“WITNESS MAHER: Certainly. I think site 1, given we don’t have a compliant site distance within that design currently, we don’t have a site distance that complies with the 100 kilometre hour speed zone heading towards Paterson, and the preferred option is a site distance of 60 kilometres an hour, and we haven’t got the defined, or I guess, an accurate definition of what work would be required to achieve those sight distances. I don’t believe the concept is anywhere near complete. It hasn’t assessed, in form, the impact of complying with those required sight distances. I think for the concept to be complete, we’ve got three options that are put forward, none of which comply with the sight distance requirements at that location.
We haven’t been shown in - in potentially a fourth option what is required to - to comply with sight distance. I think it would only be fair to consider the first three if we had four as well. We can’t make a decision that perhaps, as Mr Kenny says, that we have three metres of [fill] or we need a retaining wall without that design put - being put forward...
...
WITNESS MAHER: --I think then that leads us to the position of not being sure what the scope of works is and the potential impact on properties, private properties where we don’t have consent for those works. The need for retaining walls. Retaining walls lead to the need for barrier systems, safety barrier systems, road safety barrier systems as well. …Relocation of public utilities, yes.” (Tcpt, 21 March 2025, p 285(23)-(48))
In cross examination, Mr Kenny agreed there was a possibility of additional impacts from a compliant design that we are not yet aware of (Tcpt, 21 March 2025, p 286(16)). These potential, and essentially, unassessed impacts could affect the private properties immediately opposite the proposed access.
When queried in relation to his finding in relation to the safety of the other two concept designs (apart from concept design 1 which he did agree was unsafe), Mr Kenny referred to professional experience and data:
“WITNESS KENNY: The question of unsafe is another issue. If the road authority says they have to be designed to 90 k design speed, that’s what it should be. The question of safe versus unsafe, roads are - this is a philosophical argument; just allow me a minute - some roads are safer than other roads, but the concept that a road is safe at that speed and unsafe with this is really a bit simplistic, because no matter how well you design the road, someone will have a crash on it. Okay? So the concept, is it safer designed at 80? In my opinion, it is safe designed at 80, because there’s already factors of safety worked into it. Is it a safer design, is it a better design at 90? Yes.
EL-HAGE: You, in your answer, made reference to a philosophical debate or the like. Is that because your answer is - the one that you just gave - is not premised on some objective criteria but is dependent upon your own subjective views?
WITNESS KENNY: Obviously it’s based on my experience, which includes subjective and objective views. As a civil engineer, I’m required - my - my profession requires data. In this case, if you said to me, how many extra crashes are you going to get for an 80 k design speed versus a 90 k design speed, I don’t know anybody who could answer that question. So you’re talking about objective data?” (Tcpt, 21 March 2025, p 288(17)-(37))
“I think in terms of data and objectivity, in the absence of those 85th percentile traffic counts and speeds, I don’t believe we could assess road safety at that location or impact at that location.” (Tcpt, 21 March 2025, p 289(28)-(30))
Gostwyck Bridge is single lane and operates one way/each way, only, with give way control. It is under the care and control of TfNSW. The current posted speed limit at this location is 80km/hr. The proposed concept treatment of the eastern and western approaches are based upon a 40km/hr speed limit. Mr Maher indicated a compliant design would require revisiting the road alignment, vertical curve lengths, and cross sections, with associated potential to increase the impacts of the proposed road works.
BG submits that TfNSW has no issues with the proposed design for Gostwyck Bridge (ACS par 75). The speed limit reduction is required primarily as a result of load testing on the bridge as identified in the Gostwyck Bridge Report (Ex A Tab 4M p 29).
However, DSC disputes this (Dungog Council’s Written Submissions dated 28 March 2025 (DSC-CS) par 49), and notes that TfNSW has stated in its comments to the Department that:
“There has been no consideration of the traffic impacts at the bridge noting it operates as a one way with give way control. Assessment of the ongoing safe operations of this control point is required, including consideration on approaches in peak time and end of queue management.”
“… a compliant driver approach sight line to a stopped vehicle at the proposed GIVE WAY location needs to be confirmed by the applicant, as this was discussed and agreed in the joint civil/traffic conclave.”
The lack of certainty about the scope of works and associated impacts relating to this intersection are similar to Site 1 with issues regarding sight distances and design speeds. Site 3 has been designed to 80 kph in a 90 kph setting and is non-compliant with stopping sight distances under Austroads. The scope of works required to make the intersection compliant is not known.
The evidence of Mr Maher, which was not disputed by Mr Kenny, is that a compliant design could require works on private properties and/or construction of retaining walls (Tcpt, 21 March 2025, p 297(10)-(20)). Mr Kenny’s evidence was that the top of the crest could be addressed through additional cut, but that such works would be “quite disruptive” (Tcpt, 21 March 2025, p 298(35)).
We note that it was Mr Kenny and Mr Maher who were the principal experts who were interrogated on the matters of sites 1-3. The traffic experts also provided evidence. Generally, we note that Mr Hollyoak acknowledged the various non-compliances with Austroads intersection standards but referred to the evidence of Mr Kenny to suggest “relaxations do occur”. Mr McLaren disagreed, indicating that in his professional experience he had not “known TfNSW to permit a lower design speed limit to apply to both main road approaches to an existing public road intersection, as is sought by the applicant in this case” (Ex 10 par 4(c)).
The fourth and southernmost location where BG agrees there is an identified need for, and commitment to, significant roadworks is within the environs of Paterson village. The haulage route involves a right-angle turn within the village itself. If travelling south from the quarry, the right turn is located where King Street (an extension of Gresford Road) intersects with Duke Street (an extension of Maitland Road).
Again, a number of options were considered by the traffic and civil engineering experts during the proceedings. An important intent was to allow for safe separation between two trucks, and their associated trailers (or dogs), passing at the right angled turn in the centre of the township at the same time. Certain carriageway widenings would need to occur, with some instances where the carriageway would extend closer to property boundaries, including adjacent to a land along the northern side of King Street, which is the site of a popular café including a streetside outdoor seating area.
A significant implication of carriageway widenings in preferred configurations on traffic safety grounds (and mindful of land ownership restrictions in relation to previously intended off-street parking), would be the loss of 12 parking spaces, central within the village. Figure 5 indicates one of the concept layouts for works (Ex 10 Annexure KJH2). The concept plan indicates that replacement (perpendicular) parking, totalling it seems 11 spaces, would be provided further along King Street towards the east. It can also be seen that part of the works would be provision of medians to establish a pedestrian refuge configuration in Duke Street.
Figure 5 – One of the concept plans for proposed road works in Paterson (Source: Ex 10 Annexure KJH2)
“There’s also some works required to redirect pedestrians to that pedestrian refuge and relocation of a bus stop, quite a bit of line marking and signage to delineate those changes and to reinforce the change to the parking regime. My concern with the parking and the changes to the parking relates to the location of those proposed spaces and their usability and how the people entering Paterson who are unaware with the location of parking will - will find - a matter of wayfinding. How do they find that car parking? The parking isn’t provided near to the existing businesses in the village itself, it’s off to the right in King Street.
If we’re travelling from Maitland towards Paterson and we turn right into King Street, how do you access - how do we access those car parking spaces?
Someone travelling that direction would need to travel down to King Street and do what we did in the bus and turn around and come back to park, or alternatively, if they were aware in advance, they might come through Tucker Park which we also passed on the way in and come around the back and join into King Street and park in those car parking spaces.
So the question then to my mind then is what I would term utilisation. If we provide those 11 car parking spaces, if they can’t be utilised in reality, then we’re not actually providing those 11 spaces, so there’d be greater competition for spaces that are more easily accessed within Duke Street particularly, with people wanting to stop near to their desired point. So if they were looking to go to the post office or looking to go to the takeaway shop, if they can’t get there, they’re going to look for the next available car parking space.” (Tcpt, 21 March 2025, p 298(23)-(47))
“…the southbound bus stop is being moved to south of the - to be moved south of a driveway. The - the northbound bus stop will actually be formalised. I think they’re both good ideas. You’ve got a pedestrian refuge as you approach King, the intersection of King and Duke. That’s a safety issue. I think those - those changes, those suggestions, make sense. The loss of car parking is, especially in a small village, is regrettable.
When we were in King Street on Monday, I noticed there were cars on both sides of the road. I was surprised how heavily utilised it was as a parking area, so - so certainly the locals know about it.
…- in general terms, I think it improves the safety of the village, and - and formalising the bus stops is a good idea, and doing some amendment to the curve outside the post office so as to make sure that the trucks can get around in both directions, I think that’s a positive as well. So, they’re the positives about it. That’s my comment.” (Tcpt, 21 March 2025, pp 303(45)-304(12))
With respect to Sites 1-3, and the associated proposed roadworks, there seem to be three essential queries. The first is based on the notion that relevant, and quite localised, speed limits should be varied to allow for road works design not compliant with current speed limits. This speed limit reduction in the environs of these three sites would bring about a general road use inefficiency in these areas. It is entirely possible that this may be thought as warranted as a trade-off for the otherwise benefits of a State significant quarry. There was considerable attention to the function of TfNSW in such a decision in the evidence, but in any event, the balancing of such (competing) public interest factors might be reasonably thought to go beyond the ambit of TfNSW as a line agency of government. As a general principle, it seems not unreasonable to think that in some circumstances it could be quite appropriate to determine to proceed on that path (ie restricting speed limits) were the otherwise public benefit of, in this case the supply of quarry product, were to outweigh the relatively localised traffic inconvenience. A resolution of this query (ie the substance of the public benefit provided by the proposed quarry) relates to other factors in these proceedings.
The second query is more technical. It is whether it would be safe to adopt the preferred (currently non-compliant) concept schemes, generally, or whether construction of the road works would introduce new safety risks. It includes the question of whether in the particular settings of Sites 1-3, if in fact speed limit controls (ie signage and the like) were to indicate a regulatory requirement for reduced traffic speeds, a considerable degree of compliance by road users could be expected. Mindful of the Austroads standards, it is reasonable to assume a significant additional safety risk would arise as a consequence of the proposed works themselves (particularly associated with stopping site distance) without good levels of speed compliance by traffic.
In regard to this second query, we find that the DA was significantly deficient in contextual “data” gathering, in the form of localised speed surveys were not undertaken. To have done so would have assisted in gaining an appreciation of the actuality of localised traffic’s behavioural response to these particular settings. This would have assisted in the resolution of the technical question involved in the second query. We accept Mr Maher’s evidence that there is presently an incapacity to assess road safety of the concepts as proposed. As it stands, we see significant uncertainty about the safety of the concept of reducing traffic speeds to allow the construction of the non-compliant road works, required to otherwise allow safe passage of the increased haulage truck movements associated with the proposed tripling of current lawful road haulage volumes.
The third query relates to uncertainties associated with the impacts of the proposed road works. This query is more pronounced in the event that the concept designs are unacceptable on safety grounds and there is a need for a compliant (or near to compliant) design. There is a deficiency in understanding of the scope of works involved to assess impacts in such a scenario. To the extent that the experts estimated likely construction requirements, somewhat on the run, there seemed to be agreement that due to the scale of earthworks there was at least the possibility of additional impacts that the experts are not yet aware of. Our interpretation is that this potentially included impacts relating to private lands outside the road reservation, such as in relation to: existing accessway reconfiguration, the consequences of concentrated stormwater management associated with retaining walls or other unknown factors. To make it clear, with respect to Site 1, we can indicate that BG’s claims that the ecological implications of potential land clearing on the site have been satisfactorily addressed are accepted.
In relation to Paterson village, we note Mr Maher highlights the parking loss central to the village and sees the net result of the replacement parking as a local loss. While Mr Kenny sees the parking reconfiguration as “regrettable”, he argues that there is an overall safer outcome as a consequence of the proposed pedestrian refuge and treatment of the right-angled intersection of Duke and King Streets (widened carriageway to allow two trucks to pass). Mr Hollyoak noted some of the inadequacies of current parking spaces (and current bus stop locations) in Paterson (Ex 10 pars 135-143). The parking relocation from desirable to less desirable spatial locations is an obvious negative aspect of the proposal.
The proposed roadworks in Paterson village seemed to be concerned with easing the flow of traffic, and especially haulage trucks and dogs, through the village. We accept that the provision of the pedestrian refuge assists with pedestrian safety. However, it is not clear to us, from the evidence, that there is an overall safer outcome in Paterson Village were the proposal to be approved. Given that it involves a tripling of allowable quarry trucks from the site and doubling of trucks through the village overall. The implications of the proposal on Paterson are examined more closely when social impacts are considered.
We conclude this section of the judgement with commentary in relation to how we have inter-related ss 4.15(1) and 4.38(1) of the EPA Act in coming to our findings here. We note what might be thought of as a tension, at least, evident between BG’s submissions on the application and implications of s 4.38(1) of the EPA Act and the submissions of other parties, at least, with respect on the application and implications of s 4.15(1) of the EPA Act.
Under Ulan, s 4.38(1)’s predecessor at the time and the then Part 3A provisions generally, are seen as providing “wide” powers in regard to the imposition of conditions on development consents for matters of State significance. The intent is to provide for “practical flexibility”, including “leaving a choice of the means by which (a wider) outcome or objective” might be met and for “leaving matters of detail for later determination”.
On the other hand, and mindful of Weal v Bathurst City Council & Anor (2000) 111 LGERA 181; [2000] NSWCA 88 (Weal), for example, we see a need to understand the scope of the road works sufficiently to assess potential relevant impacts of these works on the road network, the surrounding environment and the amenity of local residents (Weal at [80] in reference to s 4.15(1) of the EPA Act’s predecessor):
“The terms of s 90(1) were mandatory: the Council was obliged to take into consideration relevant matters from the catalogue of matters in s 90(1), and to weigh them up in determining the development application. It had to inform itself sufficiently to be able to take into consideration the matters of relevance to the determination of the development application. With particular reference to para (b) of s 90(1), it had to be aware not only of the impact and the likely harm but also of available protective or mitigating means: so the conditions to be included in the consent were an integral part of the consideration (Parramatta City Council v Hale (1982) 47 LGRA 319 at 338-9, 340,342; King v Great Lakes Shire Council (1986) 58 LGRA 336 at 384). Taking relevant matters into consideration called for more than simply adverting to them. There had to be an understanding of the matters and the significance of the decision to be made about them, and a process of evaluation, sufficient to warrant the description of the matters being taken into consideration …”
When we turn back to Sites 1-3, and mindful of an opening position to see provisions as to be intended to be read in harmony, we would see it not to be generally unreasonable for there to be flexibility left open in regard to a final concept scheme with respect to each of the sites. The proviso is that there be a reasonable understanding of the scope of possible works and the significance of a decision in support with respect to such works. This involves a well-rounded outline of impacts and mitigation potentialities, albeit in concept form. Were a consent to then be granted (mindful of s 4.38(1) of the EPA Act), conditions could allow arrangements for a final decision to be taken at a later point of detailed scheme development.
However, as it stands, we do see a procedural problem in that we have a lack of understanding of the potential impacts of the proposal in respect to Sites 1-3. Certain of the concepts presented with the application may not raise relevant concerns on this front, but there is a lack of clarity of potential delivery of such concepts and the potential for a requirement for Austroads compliant (or near compliant) schemes the impacts of which are not well understood.
We acknowledge BG’s reference to proposed Condition B41 and 42 which establish a regime for the finalisation of design plans for each of the road upgrades having regard to s 138 of the Roads Act 1993, including in relation to the involvement of private lands, but this does not relieve us from the obligation to inform ourselves sufficiently to be able to take into consideration the matters of relevance to the determination of this DA.
More generally, both MCC and DSC contend that the DA should be refused because it would result in an unacceptable impact on the safety of road users and pedestrians along the primary haulage route as a result of the increase in truck movements, even after road improvement works at the four sites considered above.
The concerns include that the increased heavy vehicle movements will directly impact the ability for pedestrians to cross the primary haulage route safely. This includes school children and vulnerable members of the community that are less mobile. The locational focus includes formal and informal bus stops where sometimes buses are forced to remain partially within the travel lanes whilst passengers are picked up and set down. The Councils also considered that the proposed traffic safety management measures, including the proposed Driver’s Code of Conduct would be weak as they would be difficult to monitor and enforce, and would therefore not adequately mitigate these risks (Maitland City Council Outline of Closing Submissions (MCC-CS) dated 27 March 2025 par 163).
While the IPC primarily relied on the evidence of the Council’s traffic related experts in regard to road safety, it referred to the formal IPC Statement of Reasons (for its refusal decision), which connected up with the numerous submissions from local residents about the lived experience of living in or near the primary haulage route (IPC-CS par 92). In regard to road safety, the IPC found (Ex 2 Tab 43 p 1643-1644):
“Significant concern was raised by the community in submissions and at the public meeting regarding road and pedestrian safety. Key concerns including sharing the roads with heavy vehicles, safe access to bus stops, and crossing the haulage route in residential and commercial areas. While acknowledging the Department’s position in relation to accident data, the Commission does not have any certainty on how such a significant increase in heavy vehicle movements along the primary haul route would affect the risk profile.
The Commission is also of the view that residual and unacceptable risks to pedestrians would persist along the route, and in particular in and around Paterson. The predicted increase in heavy vehicle numbers would make it difficult and dangerous to cross the road to access other services, especially for the young and less mobile.”
Mr Hollyoak and Mr McLaren gave evidence on this topic, referring particularly to the Existing Condition Road Safety Audit Report (RSA) and the Existing Condition Thematic Road Safety Audit Report – Heavy Vehicles (Thematic RSA), referenced at [52].
In terms of existing truck traffic and proportionate increases, the Thematic RSA identified that the existing daily number of heavy vehicles varied along the primary haulage route from 28 on Gostwyck Bridge to the north to 191 on Melbourne Street at the southern end (Ex 10 p 169). The proposal would generate up to 80 laden trucks a day (160 movements). Based on the Thematic RSA, the existing number of trucks through the village of Paterson is 87 each day (Ex 10 p 169). So the additional 80 trucks generated by the quarry represents just under a doubling of trucks travelling through Paterson village and almost four times the number of trucks at Gostwyck Bridge to the north. The proportionate increase becomes much lower as one approaches Maitland.
The experts agreed that there were a large number of identified high level risks identified in each of the RSAs and that corrected action recommendations were not documented in either, the need for which was a point of disagreement. Mr McLaren indicated as follows (Ex 10 par 5c):
"Of the sixty-five (65) identified risks along the Primary Haulage Route, all except one required corrective treatment. The breakdown of reported risk levels are as follows:
Extreme: Two (2),
High: Thirty-four (34),
Medium: Twenty-three (23),
Low: Five (5)."
Figure 6 - Level of prioritisation based on risk rating (Source: Ex 10 folio 169).
Mr McLaren was critical of various details relating to these documents (Ex 10 pars 5 and 6), including the preparation process, which he suggested did not satisfactorily document the independence of the RSAs appropriately.
Mr McLaren saw the non-inclusion of corrective actions, at locations where high-level risks were identified, as a serious deficiency of the RSAs. He gave particular attention to bus stops where pedestrian activity would occasionally focus, both within 60km/hr built up areas and higher background speed rural areas:
“Then beyond [the four improvement sites] there are the bus stops, and of the bus stops, there’s a total of 36. 22 of those are formal, and 14 are informal. And again, if you dig through the - the audits, there are suggestions of risk ratings there that need to be looked at. Again, the need for recommendations, corrective treatments, I don’t know what they would be in relation to those areas where there would be risk in relation to bus stops, so I think that there is a need for Council and the applicant to actually sit down and look at those. And then the other - the other matters in relation to risk would be, as I understand it, reading through all of both audits, there’s a total of 52 high risk items within both the existing and thematic road safety audits, and there’s also 25 medium risk.” (Tcpt, 20 March 2025, p 219(22)-(31))
“…the audit team must provide a recommendation for all risks and hazards that are identified, and risk assessed, and include identification of an appropriate mitigation measure/s.”
Mr Hollyoak highlighted the guideline’s provision of recommendations to mitigate risk was “not a requirement, its good practice” (Tcpt, 20 March 2025, p 218(13)).
A reference in the Thematic RSA catching the attention of Mr McLaren was what he saw as a contradiction in content. On the one hand what may be “an increased risk of pedestrians being struck” was identified, while waiting or walking along narrow shoulders. There was then an aligned conclusion that this was “not expected to result in increased risk of a pedestrian crash over that risk that currently exists”. The relevant content is produced in full below” (Ex 10 Thematic RSA p 172):
“A school bus was observed picking up school children on Tocal Road in the 80km/h speed zone section between Maitland Vale Road and Lang Drive heading southbound towards Maitland. The bus slowed in the through lane stopped in the shoulder entirely out of the through lane. No flashing 40km/h school bus lights were in operation on the rear of the bus.
Traffic surveys show existing heavy truck movements being low at under 2% and when combined with proposed increased truck movements the total increases to about 5-6% in the areas where the informal bus stops occur. It was noted that truck speeds were typically to the posted speed limit in these areas.
There may be an increased risk of a pedestrian being struck at narrow shoulders waiting for a bus or walking along a road corridor to or from a bus stop. A bus may also be sideswiped if a bus stops where the shoulder is of insufficient width for a bus to be clear of through traffic. This issue maybe compounded where a bus stop is located within a higher speed zone of 80km/h or 100km/h and shoulder widths are too narrow for a bus to leave the through lane completely.
Marginal increase in truck traffic is not expected to result in increased risk of a pedestrian crash over that risk that currently exists.
It is noted that the proposed development proposes regular engagement with local bus companies to mitigate the risk at bus stop locations.”
“WITNESS MCLAREN: … - that’s fine, but the 52 high and the 25 medium, I - I - I would expect that if - whatever proportion of those risks are located in areas where the truck numbers have significantly increased in terms of proportion with accelerating the need for such corrective measures, then I would expect that the applicant would be required to fund - well, it may not be fully, but certainly a high proportion of those costs, particularly for those 52 high and 25 medium risks, because they are risks that are current, and I’m assuming that they are within the MR101 regional road section, which is Pitnacree Road and north of that”
Mr Hollyoak noted that sites where the higher proportionate increased truck movements would occur aligned with the locations where the four road improvement projects were proposed. While acknowledging the high-risk points identified in the RSAs, Mr Hollyoak identified this as an existing problem caused in the Paterson area by “87 trucks already on that road”, a problem which, Mr Hollyoak suggested “Council should be addressing” (Tcpt, 20 March 2025, p 211(33)).
Mr Hollyoak indicated that:
“Council are using this as an excuse to try and seek the quarry to actually do all of these works, and it’s - to me, in my view, it’s an existing road safety audit. It’s got nothing to do with the trucks. This is an existing issue.”
“…I think, 80 - 80 items here that have been raised. Do we [sic] have to address all of them?”
“COMMISSIONER: Just let me be clear on that. Are you saying, Mr Hollyoak, you think the works that are proposed [are] offsets, in a sense, [to] any increased risk associated with the extra trucks?
WITNESS HOLLYOAK: Well, the main - no, I don’t say that at all, I don’t think. What I’m saying is that there are increased risks caused by the additional trucks, but we’re talking about a safety audit which has identified existing problems, which will be there whether the trucks are there or not, and is it the responsibility of the quarry to pay for all of those improvements, and I think the answer is no.” (Tcpt, 20 March 2025, p 216(5)-(15)
It is of course fair to observe that existing road safety issues are not the responsibility of BG, particularly given current road tonnages (Ex K). But it is an entirely different point to suggest that this premise (lack of applicant’s responsibility for various haul route settings with high safety risk) means it follows, as if by way of deductive reasoning, that allowing significant additional truck movements by BG, bringing known “increased risks”, are acceptable. While it will sometimes be more obvious in the sections of the haulage route where proportionate volume increases are higher (see Figure 4), introducing the proposed tripling of quarry truck movements directly increases safety risks beyond that which exists now.
A significant failing of the application is that there has been no evaluation of any particular incremental risk associated with the proposal (beyond sites 1-4) and what mitigation strategy is warranted. While it may not be a “requirement”, Austroads guidelines suggest “good practice” should attend to this.
That is not at all to say it is a matter of BG being responsible for “all of them” (ie all of the high and medium risk setting corrective actions) but, in our view, more a matter of sensitively and sensibly considering higher impact interventions relating more directly to the increased risks posed by the application, including what otherwise impacts may associate with such interventions. Mr McLaren pointing to the high number of at risk bus stop settings as pedestrian concentration points, a number of which we inspected during the site visit, would seem a good starting point.
BG argues that all road safety related issues are capable of being assessed and can be dealt with by way of consent conditions. It is further put that consent conditions can ensure that road haulage limits that exist under current consents would remain in place until finalisation of road upgrades are approved and undertaken. We note and appreciate the parties filing of a consolidated set of conditions on 11 April 2025 (the respondents indicated their conditions were to be understood as without prejudice). According to the applicant, BG’s suggested conditions could be adopted, or if this was not acceptable to the Court, the without prejudice (WP) conditions nominated by other parties were available for adoption. These WP conditions identify a suite of open-ended (or to be identified) further road upgrades, many of which are disagreed by BG; with in some instances the alternative to require payment of various Council contributions (ACS par 79-82). We note BG’s agreement to proposed condition A26 to pay an additional $180,000 “for bus stop work” (ACS par 81), which we had thought centred on Paterson village.
We are not satisfied that BG’s submission (that residual road safety concerns can be addressed via conditions including with respect to various contributions) releases us from an obligation to assess, in this case, traffic related safety impacts of the proposal under s 4.15(1) of the EPA Act. For example:
An open-ended analysis in respect to each of the 36 identified bus stops along the haul route as identified in the Thematic RSA, to lead to so far generally unexplored corrective treatments, as would occur under Condition B41C of the respondents, leaves unreasonable uncertainty in respect to the evaluation of impact of these improvements (some of which seem to involve some complexity, for example bus stops investigated during the site visit); and
Contributions made with respect to contributions plans under Part 7 of the EPA Act are, in this instance, insufficiently responsive to identified safety risks relating directly to road haulage aspects of this major DA.
On the latter point, strategic infrastructure contribution plans and a development application’s adopted integrated staging strategy, can at times inter-relate. But in this instance, there is insufficient line of site between the contributions works program and the RSA-identified safety risk sites (see eg tendered version of MCC 2016 City Wide Infrastructure Contributions Plan Ex 20 p 40). This means there are substantive uncertainties associated with the suggested reliance on infrastructure contributions as a means of mitigating residual adverse impact on pedestrian and traffic safety directly associated with this new development proposal.
A notable point for us in relation to the crash data is that there was relatively low traffic generation from the quarry during the survey period. This is less relevant for lengths of the haul route where there are already higher traffic volumes. Certainly, this crash data does not alleviate the need for further analysis of direct safety mitigation in selected higher safety risk locations.
The relevant location is at the southern end of the haulage route, where quarry trucks might be understood to enter/exit the New England Highway at Maitland and the State’s higher order road system.
MCC contentions included the proposals impact on the intersection of Melbourne Street and New England Highway. It is common ground that this intersection is already operating at, and sometimes beyond, its design capacity; in that during the peak hour traffic queuing will exceed turning lane capacities and thus affect through traffic flows at the key points.
There have been a number of data gathering and analytical exercises associated with the study of this intersection. Of particular relevance to us are three short reports.
The first is a “memorandum” entitled “traffic modelling” dated 28 January 2025 but which also undertakes an assessment and draws conclusions with respect to that modelling in support of the proposal. It was prepared by TTPA and formed Annexure E to Ex 10 (TTPA assessment). The findings in the TTPA assessment were essentially that: (1) intersection levels of service (LoS) would be maintained with the proposal (both currently and under a 10 year future traffic growth scenario); and (2) that average vehicle delays (AVDs) would be imperceptible at up to three seconds. The TTPA assessment was prepared after it was agreed between the traffic experts that there were significant problems with the 2021 traffic assessment undertaken by SECA (SECA assessment) which had been undertaken earlier in relation to the DA and had been the assessment which had been forwarded to TfNSW.
The second report is a critique of the TTPA assessment prepared by Mr McLaren. It formed Annexure CM4 to Ex 10. It documents what are suggested by Mr McLaren to be various “modelling inconsistencies” in the TTPA assessment. These inconsistencies related “particularly in calibration of the base case time periods for observed vehicle queue lengths and lane utilisation” (Ex 10 par 8). Attention was drawn to base case queue lengths along the Melbourne Street from the north which were seen to not align with “the community’s raised concerns”. In oral evidence, Mr McLaren indicated that the base queue lengths also did not align with his own experience of the intersection (Tcpt, 20 March 2025, p 190(35)). A need for calibration validation was identified.
The third report was a response to CM4 prepared by Mr Hollyoak which is referenced as Annexure KJH1 to Ex 10 (KJH1). KJH1 is not dated. It updated the SIDRA modelling to “enable a more conservative queue lengths for the critical right turn movement from the New England Highway (south) to Melbourne Street”. The conclusions were summarised as follows (Ex 10 par 117):
“Whilst these signalised intersections currently operate marginally over capacity in the peak hours under existing base line scenarios during 8-9am and 3-4pm, the intersection performance would be maintained even with addition of haulage trucks under both approved and proposed schemes. The maximum increase in average delay would be up to three seconds at these intersections from the approved scheme which is considered small and would be imperceptible to a motorist waiting at the intersection.
Similarly, under a 10-year future traffic growth scenario the SIDRA modelling results indicate that all intersections would operate at capacity with LoS F during 8-9am and 3-4pm due to background traffic growth only. With the additional truck movements, the intersection performance would be maintained under both approved and proposed schemes. The maximum increase in average delay would be up to four seconds at these intersections from the approved scheme which is considered small and would be imperceptible to a motorist waiting at the intersection.”
There was some considerable lack of clarity regarding certain of the above-referenced reporting (and in particular what stood behind it) and certain oral evidence on this topic.
Three queries relating to lack of clarity stand out. The first query concerns the robustness of the traffic survey material. This query arose, initially, with Mr McLaren questioning traffic survey data in the TTPA assessment relating to queue lengths along Melbourne Street. It is worth mention here that very commonly there is a position of acceptance and reliance, on the part of traffic experts in the Court, upon data collected by traffic survey firms. That is not to say such documentary evidence does not on occasion warrant interrogation, if sufficient doubt is raised. In this instance the doubt is sufficient for the interrogation of the traffic survey data relied upon by TTPA. This is based on Mr McLaren identifying in his written evidence the alleged observations of lay persons of queue length problems (ie those lodging objecting submissions) but also then confirming in oral evidence his own personal observed experiences of queue lengths inconsistent with the traffic survey findings (Tcpt, 20 March 2025, p 190(35)).
Later, when the question about the surveys was raised and action initiated to address it by Mr Hollyoak, a number of other uncertainties arose. The first is that the videos which were used in the traffic surveys were not available. The most detailed explanation was provided by Mr Hollyoak in oral evidence:
“…what happened was the - the cameras were damaged, ‘cause my normal thing would’ve been just go and look at the next day and see what - but what has happened is he managed to salvage the videos via a recovery software, which is when they did their checks, but when they went back to visit them in December/January, several of them were corrupt. Not all of them, but some of them were corrupt. Though we’ve still got a record of the - of the queue lengths via their survey.” (Tcpt, 20 March 2025, p 182(5)-(11))
Selected still shots from recovered footage was provided in KJH1. It was reported in KJH1 (after a reference to “lane utilisation” and some data on “flushing out” of intersection cycles and finally the inclusion of five particular still shots of the intersection looking diagonally across the intersection to the south-west) that the above information shows “the observed traffic queues is generally shorter than the those recorded in the queue length survey”. Under examination in the witness box, Mr Hollyoak quickly corrected this written evidence and agreed that the still shots did not do this. Mr Hollyoak submitted that instead the stills were concerned with looking at “lane utilisation” (Tcpt, 20 March 2025, p 191(5)-(10)). It was confusing that there seemed not to be an intention to use survey videos, at least those recovered, to verify the surveyed queue lengths and/or make appropriate calibrations, which was a central question raised by Mr McLaren. We understood it that Mr Hollyoak had, as some kind of empirical base, used “the surveyed queue lengths in the excel file, which was given to us by the surveyor” (Tcpt, 20 March 2025, p 186(8)). But then adjusted the model to a more “conservative” queuing scenario, which we return to below.
Mr McLaren also pointed out what he argued to be an unreasonably improbable set of averages in the survey findings, which he believed showed a “calibration problem”. There were two factors. One was that they were remarkably low given Mr McLaren’s own observed experience of intersection queuing (and the lay evidence). But there was also very unlikely data in the sets provided:
“You’ll see that the survey average - the black numbers to the left, through and right - coming from Pitnacree along Melbourne Street, the average queues are four on the right turn, three in the through and two on the left. I can’t see how that could be repeated in all four time periods.” (Tcpt, 20 March 2025, p 190(25)-(28))
“In terms of the four, three, twos, we were provided that by the survey company, so that’s all I can rely on…” (Tcpt, 20 March 2025, p 190(49))
The second and related query in relation to lack of clarity in traffic reporting, is whether the SIDRA model for the intersection has been appropriately (or indeed “conservatively”) calibrated. Mr Hollyoak indicates that the KJH model is conservative and adopts queue lengths, essentially, as had been suggested in CM4 (ie considerably beyond the traffic survey’s suggested empirical findings). This was not a matter of merely inserting new queue lengths to the model but rather involved adjustments of various parameters which provided the output of an elected queue length (assuming this was elected by Mr Hollyoak himself). Mr Hollyoak had not documented what parameter changes were involved in coming to this new model. MCC, in closing submissions, referred to the TfNSW Traffic Modelling Guidelines (Ex 18, p 906ff) which indicates at Section 14.4 that “all changes required in order to calibrate the model should be fully documented with an explanation and justification of the change”. There seem to be two questions on this point: (1) whether it can be known that the SIDRA model queues are conservative given there is no calibration of the base information (ie no empirical confirmation on observed queues seems to be available); and (2) whether there were any implications of parameter adjustments which led to the adopted queue lengths.
The third query in relation to traffic reporting, is the marked difference in ultimate findings between the traffic experts in relation to the implications of the (tripling of) Martins Creek quarry truck movements on the intersection. Mr Hollyoak indicates no significant implication (see above). But Mr McLaren argued the implications were significant and that comparisons between the SECA and TTPA assessments suggested notable variances in LoS from D/E to F (CM4 p 8). This evidence was not examined in the witness box.
The relevant location in a significant intersection in Maitland is at the southern end of the haul route, where background traffic volumes are at a relative peak, and the relative impact of quarry traffic generation might be thought of as lowest. Generally, it might be thought that the impact of the addition of this scale of truck movements might be absorbed into the major trunk road system and ongoing plans for its improvement. However, generality is insufficient for this significant aspect of a State significant development and there is a reasonable expectation that rigorous data and analysis is available to the Court in making findings in regard to impacts on State and higher order roads. In this instance, this expectation has not been met.
There is a lack of clarity and thus uncertainty in relation to the chain of events leading to the loss of empirical survey information from September 2024 and its connection to what was relied upon in traffic assessment for the DA. One understanding from the evidence is that a number of separate unfortunate incidents occurred. First is that the survey cameras (more than one of them perhaps although this is uncertain), used in the field to later review and quantify queues by the surveyors, were damaged. Next, a former colleague of Mr Hollyoak who worked for the survey form, managed to salvage the videos from the damaged cameras via recovery software. Mr Hollyoak indicates this is when “they did their checks”. It is not clear but this might be the time when the surveyors prepared the excel spreadsheet of queue data referenced by Mr Hollyoak in the TTPA Assessment. Finally, when the recovered videos were revisited in December/January “several of them were corrupt”, not all of the videos but it seems a sufficient number of them were corrupt to not be able to satisfy Mr McLaren’s concerns relating to queue calibration.
While this all may be possible, our uncertainty would have been assisted by either some further, in the field, survey work on queuing or at least affidavit evidence explaining this unusual predicament the surveyors found themselves in. Mr Hollyoak’s evidence is not accepted that the survey data provided by the survey company was “all that I can rely on” (at [143]). It seems important that experts assisting the Court have a capacity to be inquisitive and responsive when external material they based their evidence on doesn’t add up, something Mr Hollyoak did indeed otherwise seek to do (see below).
There is then (a) a serious statistical improbability in the queue length survey data (which we assume to be the spreadsheet data explained by Mr Hollyoak), and (b) the curiously low numbers of queued vehicles at Melbourne Street southbound.
Here we accept Mr McLaren’s evidence that 4, 3 and 2 vehicles queued during the peak periods cannot be valid. The statistical improbability, if not implausibility, of the same average queue lengths for the three southbound turn movements out of Melbourne Street equating over the four nominated measurement periods raises a legitimate question about the queue survey data (at least) which would be assisted by confirmatory video or new surveys. Together this cast doubts on an intended positive response by Mr Hollyoak that a conservative position has been adopted for queue lengths (ie much longer than the survey had shown). It is not clear to us how it is known that conservative queue lengths were adopted if there is no verifiable data in relation to measured queue lengths.
The differences of opinion between these two very experienced experts is also troubling for us. It is possible that Mr McLaren’s key concern is that TfNSW should have had the opportunity to comment on the lower LoS figures for this State road intersection, as estimated by TTPA (versus that included in the report actually provided to TfNSW). We do not see this as a legal concern, but it is fair to understand that the Court would have been assisted were TfNSW provided opportunity to comment on this.
Ultimately, we do not accept a position that State significant development should never add to an at-capacity State road intersection, albeit noting Mr McLaren’s point that there are public benefits if this can be avoided. As indicated earlier, for development of State significance sometimes there may be externalities (ie adverse impacts) that need to be accommodated due to wider public benefits. We have also noted that that State road infrastructure evolves over time. However, this is a general point. As is well known, in particular cases, BG bears the persuasive burden of satisfying the Court that consent ought to be granted (Australian Protein Recyclers Pty Limited v Goulburn Mulwaree Shire Council [2006] NSWLEC 641 at [2]). In this instance, it is reasonable to expect models of the kind used in BG’s traffic assessment to be validated by representative in-field measurements. This has not been sufficiently addressed here. There is insufficient knowledge of the effects of the additional quarry trucks and dogs on the Melbourne St / New England Highway intersection, including whether any particular critical junctures might be reached as a consequence of the proposal warranting mitigative treatment.
The respondents contended that there will be unacceptable noise impacts on receivers along the haulage route associated with the additional truck movement. Concerns were also raised concerning activity at the quarry. Lack of information in relation to acoustic impacts was also raised.
The noise-related contentions can also be thought of as having two aspects. One aspect is in relation to compliance with applicable regulatory criteria. Two particular EPA policy documents are relevant here: (1) Noise Policy for Industry (NPfI), and (2) NSW Road Noise Policy (RNP). The other aspect relates to residual impacts on persons and the community, even were compliance with these criteria to be achieved under assessment modelling. The respondents’ contentions connected this second aspect to contentions relating to social impact. In this section of the judgment, we examine the former (or regulatory criteria) aspect. The latter aspect is examined in the next topic, under social impacts.
The expert evidence in relation to acoustic impact was given by T Procter (called by BG), A Shearer (called by MCC) and R Haydon (called by DSC). Their initial joint report was dated 21 February 2025 (Ex 11). A further joint report responding to questions from the Court associated with the proposed rail siding extension and arising during the site inspection, was dated 25 March 2025 (Ex 24).
There are two areas of interest relating to the regulatory noise criteria. The first is concerned with the proposal’s on-site noise impacts. That is, within the general bounds of the quarry, and including loading for haulage. The second is the implications of quarry trucks on the haul route.
“…the proposed 160 truck movements will not create an adverse noise impact (Leq,15hours) at the residential receivers located in ‘Traffic Count Locations’ Zone 3, Zone 4 and Zone 5 during the day period (7 am to 6 pm), only.”
There are three points to note here. First is that the relevant (MCC) contention only related to “Zones 3, 4 and 5”.
Second, is that Mr Shearer’s reference point for the finding of “not create an adverse noise impact” is related to the RNP criteria. The RNP provides that proposals not result in an exceedance greater than 2dB(A). Mr Shearer agrees with Mr Proctor that the maximum increase along the haul route is 0.6dBA. Then, when seeking to back-up the finding of “not create adverse noise impact”, Mr Shearer quotes the particulars of the RNP when he expressed a view that “an increase of 0.6 dBA ‘represents a minor impact that is considered barely perceptible to the average person’” (Ex 11 par 50).
The third point relates to the reference to “only” in Mr Shearer’s evidence above. It is to acknowledge that Mr Shearer and Mr Haydon had both raised concerns relating to the lack existing road traffic noise level data for the night-time period. Their concern was related to sleep disturbance criteria. The concern was that, while truck movement along the haul route was anticipated (and proposed) prior to 7am, there has been no adequate consideration of noise impacts when the night-time criterion applied. On this point, we generally accept that BG’s proposed consent conditions include provisions that there be no use of the haulage route by trucks associated with the quarry prior to 7am satisfies this concern from a regulatory criteria point of view.
We note Mr Haydon’s concern that it is unknown whether the quarry was operating in accordance with the 150,000 tpa limit or at reduced capacity during the vehicle counts used in noise assessment. While acknowledging this uncertainty we were not sure of the implications. Generally, we were persuaded by Mr Shearer and Mr Proctor’s expressed views, albeit mindful of the evidence of Mr Haydon.
In regard to the dispute in regard to whether real time monitoring along the haul route should be required via condition (proposed Condition B7(d)(iii)), it is our view that high levels of assistance in addressing implementation difficulties would be appropriate in regard to truck movement along the haul route. However, further evidence would be required as to the practicalities of this particular management device in this instance.
It is accepted that it is the NPI that provides the regulatory criteria relating to operational noise. Among other things, the NPI provides for the setting of Project Noise Trigger Levels (PNTLs) which has been undertaken in the work of Umwelt and Mr Proctor. A requirement for compliance with the calculated PNTLs for the various identified noise receiver locations have then been incorporated into consent conditions (Conditions B1-B3).
Umwelt’s Noise Impact Assessment (NIA) refers to a series of sequencing elements and proposed works aimed at minimising noise emissions from quarry operations and on-site haulage actions (road and rail) and meeting PNTLs. This includes construction of various noise barriers and bund walls, sequencing of works to enable placement of quarrying equipment in lower and more noise-shielded locations and incorporation of various operational controls (Ex A Tab 4D pp 32-34).
Again, we note the concern raised by Mr Haydon as to whether the calculated PNTLs are appropriate (Ex 11, par 113-115). Again, uncertainties arise here. But, on balance, we accept that the case has been made with respect to operational noise criteria compliance, mindful of: (1) the PNTL related condition requirements, (2) other impact management related conditions (B4-B9: concerning noise management, A18: controlling night time train loading prior to the construction of the spur line, and C11-C17: concerning requests for acquisition from qualifying affected landowners), and (3) the fact that the existing consent and license do provide for around 450,000 tpa operational extraction at the quarry (albeit only 30% of which is transported by road); and with less explicit noise controls than now proposed. It is also notable that the first respondent has not in this instance put evidence against the proposal on operational noise criteria.
The social impact assessment for the DA as now before the Court was prepared by Umwelt and finalised in May 2021. It was prepared mindful of the 2017 version of the Department’s Social Impact Assessment Guideline (nominally relating to “State significant mining, petroleum production and extractive industry development). An updated guideline was released in 2023 by the Department also titled Social Impact Assessment Guideline (nominally relating to “State significant projects”). The experts in the proceedings seemed to refer, at different times, to both documents. Indeed, further input from Umwelt also referred to both guidelines. In any event, these are guideline documents rather than statutory instruments and we were not taken to any particular savings provisions. Neither were we taken to particularly notable differences in terms of content between the two guideline documents (albeit noting some comparative commentary between the two from time to time).
Below, when referring directly to the Umwelt Social Impact Assessment we use the abbreviation SIA. When referring to this SIA, we acknowledge it is the 2017 version of the SIA Guideline that is in attention. Otherwise, it is the 2023 version of the SIA Guideline that we reference below.
The SIA Guideline provides an outline of how to understand social impact assessment (SIA), as follows (p 7):
“‘Social impacts’ generally refer to the consequences that people experience when a new project brings change. For the purposes of the SIA, ‘people’ are classed as individuals, households, groups, communities, or organisations.
The SIA aims to identify, predict and evaluate likely social impacts arising from a project and propose responses to the predicted impacts.”
“…change the place function of the main streets of these areas, which are significant contributors to the community and civic life, to a movement corridor for heavy vehicles…”
This change to the place function of the streets was impactful because the streets are "significant contributors to the community and civic life" (Ex 6 p 7).
In relation to the respondents’ contentions, there was a connection between the topics of amenity, noise and safety and the social impact contention, which was considered by the social impact experts, who in this instance comprised: R Ryan (called by BG), A Kanaris (called by IPC) and J Stubbs (called by MCC and DSC).
The particulars nominated by the second and third respondents of relevance to the social impact contention related closely to each other and had considerable alignment with the matters raised by the first respondent. There are of course differing geographical or spatial settings of interest for the second and third respondents. Other specific topics related to social impact, included health impacts including in relation to air quality, distributional inequity (in relation to beneficial and adverse impacts) and suggested missing attention to vulnerable groups in the impact assessment generally.
The respondents each also argued that there were serious deficiencies in the approach to social impact assessment.
We start this section of the judgement with an examination of approach or process-related contentions, especially considerations relating to “social baseline”. We then move onto contentions relating to particular social impacts.
“The social baseline study describes the social context without the project. It documents the existing social environment, conditions and trends relevant to the impacts identified.
The study is a benchmark against which direct, indirect and cumulative impacts can be predicted and analysed. Tailor the scope and content of the social baseline study to the project context and the level of assessment of social impacts using meaningful indicators and information.”
“The study is a benchmark against which direct, indirect and cumulative impacts can be predicted and analysed. Tailor the scope and content of the social baseline study to the project context and the level of assessment of social impacts using meaningful indicators and information.”
“- Extraction and processing of material limited to 125,000 tonnes per three-month period
- Product transport by road limited to 75,000 tonnes per two-month period (equalling 450,000 tpa)
- A maximum of 90 laden trucks per day and 20 laden truck per hour
- No transport of product on weekends or public holidays.”
The return to the existing consent conditions (after Duggan J’s related 2019 findings in Hunter Industrial 3: see [26]) was also acknowledged by Professor Ryan.
Professor Ryan believed that in establishing the social baseline it was important to give considerable recognition to this operational history (Ex 15 par 503):
“In my view, standard of scaffolding for an assessment of social impacts is not appropriate in the context of this matter, wherein the Quarry’s long operational history is embedded in the cultural, economic, social and built environments of the relevant localities. The social baseline in these localities is informed by this context and the social impact assessment of the current proposal.”
“TO: … Is it a reasonable interpretation of the social baseline as it is defined in the social impact assessment guidelines - in a context such as this is it a reasonable interpretation that the baseline is the project as it exists within its envelope of consents and approvals?
WITNESS RYAN: No.”
(Tcpt, 26 March 2025, p 418(40)-(45))
“Within the timeframe of operation within the parameters of the 2018 IEMP (February – September 2019), community complaints to the Applicant reduced significantly to 6 complains in total. From this representation of community experience (i.e. very low reported negative impacts through the complaints mechanism) through community feedback in the context of an operational (and haulage) history that had far exceeded the 450,000 tpa limit set by the EIMP (2018,) it is my perspective that this … volume of 450,000 tpa is a reasonable social baseline as informed by the Project context.”
Figure 7 – Applicant’s data on complaints received 2014-2020 (source: Ex 15 Figure E.1)
“…the social baseline for the assessment of social impacts must be the existing approval compared with the proposal to increase quarry product by road/ haulage truck movements under the current application (the ‘marginal’ social impacts, or the social impacts ‘with and without’ the project).”
Firstly, we acknowledge and accept Professor Ryan’s argument that the SIA Guideline is just that - a guideline to aid the work of practitioners in social impact assessment rather than something to be followed precisely always. For our purposes, and generally in accordance with the SIA Guideline, the social baseline is established to measure the impact of a development proposal. Its purpose is to provide a benchmark against which the proposal’s social impacts can be measured against. While the quarry is not operating at present, in accordance with the current lawful operational consent, it could lawfully do so at any time. If one is seeking to evaluate the impacts or consequences (positive and negative) that people would experience were the proposed development to go ahead, the existing consent’s operational aspects should provide the baseline against which impact should be measured.
It is inappropriate to set as a social baseline, for the evaluation of impact, the setting at the time of earlier unapproved operations. Four points support this finding. First is that to adopt the earlier unapproved operating period would provide an advantage to BG in the evaluation of the impact of the proposal. A suggestion that BG should gain either direct or indirect advantage from this past unlawful use should be firmly rejected (Kouflidis v Salisbury City Corporation (1982) 29 SASR 321 at [324], cited in Ralph Lauren Pty Ltd v New South Wales Transitional Coastal Panel; Stewartville Pty Ltd v New South Wales Transitional Coastal Panel; Robert Watson v New South Wales Transitional Coastal Panel [2018] NSWLEC 207 at [128]). Second, is that it is against the SIA Guideline’s definitional provisions to exclude the proposed development from the understanding of the social baseline. Third, is that to do so would set a frame for evaluating something other than an impact of the current project on (what is reasonably understood to comprise) the locality (s 4.15(1)(d) of the EPA Act). Fourth, is the position adopted by the other two social planning experts and indeed those preparing the Revised Response to Submissions Report relating to social impact which we return to below (Ex A Tab 8 Annexure Ap 9 par 3).
That is not to say that there is not value in understanding how social (and other) impacts were experienced during the time of the earlier operations, including the period of the IEMP operation, with its similar road haulage annual quantum to that expected from the proposed development. Information on this past use could be useful to understand likely impacts: Jonah Pty Limited v Pittwater Council [2006] NSWLEC 99 at [38]. Were the evidence to support a view that impacts were low or acceptable during this period this could be pertinent, as could evidence at odds with that.
The second procedural concern raised in contentions related to the Umwelt Social Impact Assessment itself. The respondents argue that misinterpretation of social baseline has brought about a fundamental flaw in the SIA. BG argues that the SIA (Ex A Tab 4O Section 5) provided an extensive examination of the “baseline profile of the community” potentially impacted by the proposal (ACS par 186).
There are elements of the SIA which suggest adoption of an invalid benchmark. This was evident in the SIA when, after considerable detail was provided in relation to community views on truck volume-related impacts on “high level of importance” attributes relating to “serenity” and “rural lifestyle” and many other factors, some “context” was established (SIA p 269):
“In the context of the above views, while not intending to diminish the impacts on the community and the extent to which they are felt, it is also important to acknowledge the historical operations prior to Daracon’s management of the quarry and the associated historical road haulage of product from the quarry as outlined at Section 4.1. The proposed road transportation limit of 500,000 tpa returns road haulage volumes to a level that is not inconsistent with road haulage volumes occurring prior to Daracon securing its licence in 2013 with road transportation volumes proposed for the Revised Project less than those previously transported by RailCorp, particularly through the period of 2003‐2004 to 2010‐2011 (refer to Figure 4.1).”
“Overall the Revised Project as currently presented represents a significant reduction in the volume of quarry related trucks compared to both those originally proposed in the 2016 EIS and also compared to historical activities to which the community have been exposed over more recent years and which has informed lived experiences”
There are some absolute operational changes which would reduce impacts when compared to the highest road haulage times, including in relation to early morning operations. But rather than a substantive reduction, to limit road haulage to 500,000 tpa, or 450,000 tpa as now proposed with the current proposal, still constitutes in the order of a 3x increase to the approved operation (say 150,000 tpa).
We do note that the Revised Response to Submissions also included an "updated risk rating table" which "assesses the Approved Operations, Original Project and Revised Project" (Ex A Tab 8, App 4). The revised table indicated "extreme" impacts in relation to the original DA proposal and lower impacts in relation to the approved operation, and often higher impacts related to the current proposal (Dr Stubbs analysed this at Ex 15 par 511). However, we did not see there to be any changes to the consultant's findings relating to social impact risk for individual items of the evaluated proposal in the Revised Response to Submissions. Umwelt indicated that they had applied the SIA Guideline definition of social baseline in the SIA. Here we understand Umwelt to be saying that the higher historical (unapproved) activities were notable (as put in our references at [191]-[192]), but Umwelt did not factor in the notion of "a significant reduction" from unapproved operations into their actual impact "prediction" in the SIA risk tables.
“…engagement activities have been undertaken over two key rounds; June ‐ August 2018 during which time 78 individuals participated in discussions either via personal or group interviews; and again commencing July 2020 with follow up interviews and discussions during this second round continuing until March 2020 [sic] (a total 114 stakeholders participated in interviews during this second round).”
There was what appeared to be a considered documentation of the community concerns, including quoted evidence of “lived experience”, which we go to when considering specific impacts. The SIA provided seemingly rigorous feedback garnered from local residents, both during periods of higher and lower road haulage rates. This comprised Round One engagement during 2018 when one might assume in round terms road haulage of some 500-600,000 tpa (from Ex K); and during 2020 when road haulage had dropped off to considerably below even approved levels. That is to say, there was contemporaneous feedback, under a program developed by social impact specialists, on community attitudes to the proposal before and after the reduction in road haulage levels which was available for review.
To the extent that there was a reliance on unapproved operations and the notion of a reduction in truck volumes (rather than a tripling of truck volumes), it would misdirect the SIA findings. This question is best considered in the evaluation of actual social impacts which we turn to immediately below. We do note that the SIA did find impacts (even with mitigation) were "high" with respect to many notable areas. This is acknowledged by Umwelt, where, after consideration of criticism, those preparing the SIA made reference to "the high proportion of the identified impacts which have still been assessed as high (for some within the community), post mitigation" (Tab 8 p 134).
We note Professor Ryan seemed to rely significantly on a record of complaints received by Daracon over a period of time (see [184]). We found this particular material unconvincing of itself. That is, as a time-based table of data, from which one might draw reliable inferences. The relatively low complaint numbers indicated by Daracon during 2019 and 2020 can be observed, but the lack of general correlation between the number of complaints recorded in this table and the variation in road haulage tonnages was unexplained. The low level of complaints during 2015, when haulage rates were very high, lacked any explanation in particular. Further, there seemed to be no disagreement that there was a lack of confidence on the part of the community in the complaints handling process of Daracon. That is to say, there was significant unaccounted for doubt about the relationship between an individual's experience of impact and the lodging of a complaint with Daracon. On this point of the Daracon complaints data, we prefer the evidence of Dr Stubbs (Ex 15 par 597(d)):
“When considering the large volume of submissions and presentations, as well as public forums and other means by which residents expressed strong and consistent concerns, I do not consider that the record of complaints to Daracon is an accurate representation of community concern, or problems faced by the community. I also do not consider that these formal complaints for a limited period of operation are an adequate representation of community concerns, and that they are in any case statistically unreliable.”
The nominated social impacts raised in the contentions mostly relate to the road haulage of quarry products and its implications.
The first respondent raises a certain “place function” of the relevant public road in “Paterson and to a lesser degree Bolwarra and Bolwarra Heights” that are significant contributors to community and civic life. The contention is that this function would deteriorate as a consequence of trucks at the levels proposed over the 25 years of the project. The first respondent raises amenity, road and pedestrian safety and social impacts and also directly referenced noise impacts (Ex 6 p 6).
The second and third respondents raised noise, safety and additional particular “social amenity” impacts (related to air quality, dust, traffic congestion, visual amenity). But also made reference to wider effects (the quote below is from the second respondent’s contentions (Ex 17 pp 16-18) but the related content in the third respondent’s contentions (Ex 21) provided very similar and at times identical commentary:
“(b) Adverse impacts on the values, aspirations, reasonable expectations, character and/or way of life of people or groups affected will occur in affected localities.
(c) Adverse impacts will occur with regard to sense of place, community connectedness or social cohesion, and changes to the way that people experience or interact with each other, or their physical environment, including:
i. Changes to the usage of roads and streets for day-to-day activities and social interactions;
ii. Loss of quiet enjoyment of public spaces (e.g. parks, community facilities), outdoor areas of homes, etc proximate to the primary haulage route;
iii. Loss of social connection when places are avoided and/or interactions no longer occur;
iv. Avoiding areas where there are real or perceived safety threats, or a serious deterioration in amenity, and increased in social isolation, including for more vulnerable groups and individuals.
…
(e) Adverse social amenity impacts related to reduction in business activity, tourism, and economic growth will occur, including related impacts on social vibrancy, connection and social and economic diversity for communities and businesses along the Primary Haulage Route.”
“For example, potential impacts to social amenity as a result of traffic and truck movements, are perceived by stakeholders to impact on their way of life, their health and well‐being, and their access to and use of surroundings.”
We are mindful of this in our evaluation approach in this section of the judgement. We have found that we can reasonably distinguish the social impact topics into three interconnected areas. The first topic concerns pedestrian and vehicle safety. The second topic addresses the broader topic of amenity-related social impacts, which we link up to the question of impacts on sense of community and way of life for local people. The third topic relates to vulnerable groups.
In relation to evaluation approach, we are mindful of the SIA Guideline’s approach to the assessment of social impact risk, referenced in the SIA, including the Social Risk Matrix. The notion is to consider both the consequences of the social impact (minimal, minor, moderate, major and catastrophic) and the likelihood of the impact occurring (rare, unlikely, possible, likely and almost certain). The risk matrix is then used to determine an overall risk assessment of the social impact as 'low', 'moderate', 'high' or 'extreme'. Explanatory material is available to assist in coming to “ranking” decisions in regard to the various definitions (SIA p 258-259).
Figure 8 – Social risk matrix (source: referenced as Figure 7.1 in Umwelt Social Impact Assessment – original source referenced in figure)
A point of difference between the experts in relation to the evaluation of social impacts was that Professor Ryan essentially relied on other expert evidence, including the SIA itself, when the topic involved technical matters relating to traffic safety and amenity considerations. Dr Stubbs and Ms Kanaris saw it as appropriate to interrogate or, at least, consider more closely the particulars of such “technical specialist” expert findings.
In her evidence, Professor Ryan also referred to a number of the positive aspects of the projects as matters to be balanced against any negative impacts (eg Ex 15 pars 569-570):
“a. the proposed operations and haulage rates do not exceed previous levels of operation/road haulage (DPIE, Figure 6.1).
b. The economic benefits of the project at the local, regional, and state levels, particularly in terms of meeting demands for hard rock quarry material for construction works (local and regional) are clear.
c. The impacts of proposed haulage on the roads absorbed by the Primary Haulage Route will be managed and funded through contributions made by the Applicant.
d. Employment associated with the proposed Development (including an estimated 18 fulltime employees) can reasonably be expected to bring some economic benefits to the local community, including but not limited the indirect economic injections with households of younger and/or working-age people.
Concerns expressed around increased road traffic and associated disturbances are reasonably addressed in relevant reporting by Traffic and Civil Engineering joint expert reports.”
“In relation to road and pedestrian safety (which are key concerns), I note the conclusion of the TTPP Crash Assessment Report (2024, p.43), that overall, the crash rate assessment did “not highlight any crash clusters along the primary haulage route nor associated intersections” and that the “haulage route is not any more susceptible to crashes than the average NSW roads”. This conclusion is by no means a dismissal of expressed concerns around safety and crash assessment, but rather the outcome of an assessment that has set out in part to address comments raised by Second and Third Respondents.” (Ex 15, par 594)
“The likelihood of certain adverse events (e.g., traffic-related accidents) is underestimated. For example, despite documented historical incidents along the haulage route, the SIA frequently categorises risks as "unlikely" rather than "possible," without sufficient empirical justification.
Limitations:
- The risk assessment fails to apply context-specific data (e.g., past accidents in Paterson and Bolwarra) to inform the likelihood and consequence ratings. This oversight leads to underestimation of potential risks.
…
Impact:
- By underestimating the probability of high-impact events, the SIA diminishes the perceived severity of risks to public safety, particularly for vulnerable populations (e.g., schoolchildren, elderly residents, and cyclists).”
“[the traffic assessment] determined that since Daracon commenced operating the quarry in December 2012, there have been no serious incidents recorded and/or reported to Daracon along this route nor the other historical main haulage route historically associated with trucks working for the Martins Creek quarry.”
Above we have given more direct consideration to the more technical road safety expert evidence. While of some relevance, crash assessment data provides an inappropriately limited basis for a conclusion on road safety. In this instance it is also noted that the crash data relied upon by Professor Ryan was based was the period between 2019 and 2023 when quarry haulage levels were low (see [125]). On the other hand, the RSA and Thematic RSA make clear that there are numerous identified high and medium traffic safety risk settings along the haul route. Mr McLaren’s evidence was there were a total of some 52 high risk items within both the existing and thematic road safety audits and another 25 medium risk items (see [115]). Setting aside the four areas where road works have been identified by BG at least at concept level (Sites 1-4), there is no coherent strategy to address other higher priority safety risks by way of corrective treatments.
In addition, the lay submissions and in particular feedback to Umwelt in community engagement associated with the preparation of the SIA, brought forward evidence of historical road safety problems. Umwelt undertook a review of Daracon’s complaints register which indicated that the majority of reported complaints from community members regarding the quarry’s operations have been associated with impacts on roads and road user safety (Ex A Tab 4O p 266):
“…members of the public having reported issues with ballast falling from truck loads, or getting caught in the treads or tyres in some instances resulting in cracked windscreens indicating that there are interactions with quarry vehicles. These incidents have been noted during discussions with community members, most recently at one of the SIA CAFs in which one participant specifically made reference to an incident whereby ’one Daracon truck tailgate opened and lost its load in Paterson and another one lost petrol and jack knifed’.”
We acknowledge the proposed pedestrian refuge within Paterson. However, its effectiveness is not so convincing given the diffuse pattern of pedestrian crossing desire lines within Paterson village.
In our view, the social impact consequences involved with quarry truck related road safety are at least “major”, having regard to the definitional tables provided in the SIA (Ex A Tab 4O Table 7.2). That is:
“Substantial deterioration/improvement to something that people value highly, either lasting for an indefinite time, or affecting many people in a widespread area.”
There were a number of concerns raised by social planning experts for the respondents in relation to vulnerable groups, beyond the personal safety concern considered above. Ms Kanaris argued there was a significant deficiency in the SIA in relation to baseline health or vulnerability data for shift workers, people with depression, the elderly, those with disabilities, mental health conditions and the like. Ms Kanaris provided various data sets for the Dungog and Maitland LGAs, suggesting higher than NSW average rates of reported mental health conditions (including depression and anxiety) and asthma, but also noting some other vulnerability indicators close to or below state average (Ex 15 Annexure AK1 section 1.2). Dr Stubbs believed that those with pre-existing health conditions, older people and shift workers had not been given appropriate attention in the technical assessment report relating to dust and noise (Ex 15 par 360).
The connection of vulnerable groups to the increased truck movements and pedestrian safety when walking along or crossing roads including within Paterson village was drawn out by Dr Stubbs (Ex 15 par 245):
“Again, more vulnerable groups, including older people, families with young children, school children and those with a disability, report that they walk along or cross the route at various points for healthy exercise, recreation or to access services (e.g. pedestrian refuge cross Paterson Rd Bolwarra Heights to access a bus stop in Reference number 6); and at various points along the haulage route). It is an adverse social impact if reasonable fears for their safety mean they must curtail social and recreational or healthy activities because of significantly intensified truck movements.”
“…adverse impacts will again be more intensively experienced by people more sensitive to such impacts, in particular, those with pre-existing physical and mental health conditions, who will likely face increased social isolation, and an exacerbation of existing health and mental health conditions through increased stress, noise and vibration, and dust, which are identified in the literature but not properly assessed in technical reports.”
“…will not increase the traffic noise levels at any sensitive receiver by more than 2dB and therefore meets the relevant criteria in the EPA Road Noise Policy (RNP) for traffic- generating development.”
Professor Ryan’s view was that because the EPA’s RNP requirements are satisfied then the potential social impacts associated with traffic noise are acceptable (Ex 15 par 67).
The respondent’s experts’ evidence on social impacts associated with truck noise did accept that the proposal would comply with “EPA Guidelines” (Ex 23 p 2). However, Ms Kanaris, for example, was concerned that the SIA “relies heavily on technical noise assessments without integrating social perception data (e.g., residents’ subjective experiences of noise disturbances)”. This was seen to (Ex 15 Annexure AK1 p 12):
“…(weaken) the validity of conclusions drawn about community well-being impacts and underestimates the potential for long-term mental health issues”
“The loss of amenity for those living near the quarry in Paterson and on the haulage route is immense. Social impacts are extreme and detrimental to my mental health and the mental health of others. The loss of amenity is not an ill perceived prediction or an unsubstantiated claim. It is a lived experience. It is real. (IPC Meeting 8.11.22, Pg 18, Dungog Locality).
My well-being is at risk because I am going through a tough time and I understand how important it is for my psychological health to be able to sit in a quiet place such as one of the cafes and have something to eat and talk with a friend or family member. However, from past experience, the community found that you could not have a conversation as you couldn’t hear what the other person was saying and it’s wasn’t relaxing and we were breathing in the exhaust fumes of the trucks (Resident submission to the IPC on the current application).
From a mental health point of view noise pollution can cause loss of hearing, stress levels to rise and sleep disturbance. Noise pollution is a health hazard. Frequent or loud noise can trigger anxiety, stress reactions, tinnitus or distorted hearing. People living with noise pollution may feel irritable, on edge, frustrated, or angry. If a person feels they cannot control the amount of noise in their environment, its impact on their mental health intensifies (IPC Web submissions to the amended DA, Objections, Web page 73)."
We note the SIA also references a series of responses to health and mental health concerns (Ex A Tab 8 section 6.9).
Dr Stubbs indicates that the “expressed strong concerns of residents” that the tripling of truck movements would result in serious adverse social impacts is reasonable based on the evidence and her own reasoning as demonstrated in the joint report (Ex 15 par 218).
Professor Ryan indicated that in the SIA’s consideration of community feedback, the impact category of ‘Health and Wellbeing’ was cited as a concern with relatively low frequency (citing SIA p 239).
More generally, Professor Ryan was satisfied with the SIA and felt that the concerns raised with respect to more vulnerable persons would be reasonably addressed, post consent in the Social Impact Management Plan (SIMP) and its processes. This is where the more “granular detail working with those particular vulnerable communities” (Tcpt, 26 March 2025, p 451(8)).
Dr Stubbs and Ms Kanaris believed it was appropriate that identification and assessment of impacts on vulnerable groups occur as part of the SIA, rather than post consent, to assist DA evaluation (Tcpt, 26 March 2025, pp 452(32)-(49), 453(16)-(24)).
It is noted that there is some identification of vulnerable groups in the SIA data collection phases. For example, section 5.13 “Social Profile Summary” identifies a range of community vulnerabilities; and section 5.84 “At-Risk and Vulnerable Groups” provides data to indicate “a number of the study communities exhibit greater proportions of at risk groups when compared to NSW state averages”. Beyond this, we accept the evidence of Dr Stubbs and Ms Kanaris that there was insufficient attention to specific impacts on relevant vulnerable groups associated with the specific proposal and mitigative responses. BG’s and Professor Ryan’s argument that such matters can be addressed subsequent to development consent through the SIMP does not assist in understanding and evaluating the said impacts.
In regard to pedestrian safety and the elderly, parents with small children, and children in particular, we accept the evidence of Dr Stubbs that such groups will experience significant additional fears for pedestrian safety as a consequence of the increase in quarry truck movements in Paterson, even with the proposed pedestrian refuge. The particular suggestion “that an older person or someone with decreased mobility may not catch the bus due to increased fears for safety” seems to illustrate the general point reasonably; a point not examined to any depth in BG’s material before the Court. The suggested consequences, relating to curtailed social and recreational or health-related activities, which we accept as material and likely, would provide a further adverse social impact.
We are not convinced that the history of quarry activity and truck haulage along the haul route over time, and especially the illegal haulage which ceased over 5 years ago, softens the impact in any significant way today.
In regard to noise, it is insufficient to rely on compliance with EPA Guidelines if social impact is the point of attention. These guidelines allow noise in excess of current levels which in this instance, on occasion at least, already exceed relevant criteria (SIA Table 7.1 top right hand corner p 3). This can mean that there is a direct adverse amenity effect associated with noise annoyance which, certain more vulnerable people may feel greatly (shift workers being an obvious example).
But in this instance, an indirect effect can also come into play. As put in in Gloucester Resources Limited v Minister for Planning [2019] NSWLEC 7 (‘Gloucester*’*) at [354]:
“…(dust and particulate emissions, noise emissions and night lighting impacts) have the potential to affect people's health and wellbeing, both directly and indirectly. Air, noise and light pollution can directly affect people's health and wellbeing, if the pollution is sufficient, but it can also affect people's perception of their health and wellbeing, such as by increasing stress and anxiety, which can affect their mental health. This indirect effect on people's mental health is significant in this case. As I have found earlier, the Project may well comply with the applicable criteria for air quality and noise, but people perceive that the Project will have a negative impact on their health and wellbeing.”
There seems to be potential for instances of overstatement in the lay submissions and too close a comparison made to periods of around 10 years ago when haulage rates were much higher than now proposed. But, similar to Gloucester at [367], the perceptions of impacts, with approval of the tripling of quarry truck traffic, for vulnerable groups, but also many less vulnerable, is likely to further raise stress and anxiety, potentially affecting mental health and physical health. Such reasonably expected increases to stress and anxiety are impacts of themselves.
There was also, for example, a direct recognition of past history related sensitivity associated with exposure to annoying noise in the evidence of Mr Proctor, who acknowledged this as a factor in acoustics and something accounted for in NPfI. That is that individuals who had experienced annoying noise over a prolonged period could be more sensitive to that noise. This sensitivity had not been factored into the NIA (Tcpt, 25 March 2025, 343(35)-344(47)).
As identified in the 2017 and more recent SIA Guideline, close attention is warranted to persons more susceptible or vulnerable to negative social impact. There was a significant under-investigation of particular impacts of the proposed increased road haulage on vulnerable sectors within the local population. In the circumstances, reliance on outputs of the SIMP to address such factors is a weakness of the proposal. Consideration of those especially susceptible to social impact is a significant factor in the evaluation of the proposal before us (under s 4.15(1) of the EPA Act) and should have been more closely attended to in the SIA to devise appropriate mitigations and allow the net impact to be evaluated.
But beyond this lack of information in the application material, in this instance we accept the evidence of Dr Stubbs and Ms Kanaris that there are likely significant impacts on vulnerable groups which at least would impose a high social impact risk.
“372 These social impacts can also be seen to be impacts on the amenity of the place. The concept of the amenity of a place or locality is wide and flexible. Some aspects of amenity are practical and tangible. Examples include the traffic, noise, nuisance, appearance and way of life in the locality. Other aspects of amenity are intangible and subjective. They include the standard or class of the locality and the reasonable expectations of residents in the locality: Broad v Brisbane City Council [1986] 2 Qd R 317 at 320.
373 Amenity may embrace the effect of a place on the senses and the residents’ perception of the locality. Knowing the uses to which a place is or may be put may affect a resident’s perception of amenity: Broad v Brisbane City Council at 326; Telstra v Hornsby Shire Council (2006) 67 NSWLR 256; (2006) 146 LGERA 10 at [190].”
In turn, here we are focused on how the proposal (and in particular the proposed increases in quarry truck movements) would relate to a range of amenity factors, the higher orders of which would include impacts on sense of community and way of life for local people.
We saw the SIA focus on the topic of “impacts on social amenity and surroundings due to truck volumes and disruptions” (SIA p 261) as also pertinently taking on this broad topic.
The SIA’s Table 7.7 provided the analytical outputs, referencing social impact categories: “way of life, surroundings, access to and use of infrastructure, services and facilities, community, health and well being”. One of the points of focus within Table 7.7 (differentiated for example from safety related risk) is social impact relating to “social amenity and surroundings due to truck volumes and disruptions”. This material connects well to the topic at hand.
In undertaking this component of the impact risk assessment, Umwelt seemed to give a considered degree of attention to points raised in the SIA consultation efforts referencing various comments on perceived social impacts expressed by residents. The following citations are examples of comments relating to Paterson village (SIA p 262):
“Substantial deterioration of the Village Activity Centre Function in Paterson. – MCQAG correspondence
The proposed scale (hourly and daily intensity of truck movements) will impact upon the function of Paterson utility centre. The truck intensity will serve to provide a physical divide between one side of the road and the other as was experienced in 2014‐2019 by Daracon’s illegal operations – Round Two [consultation]”
The SIA ultimately agreed with the “perceived” impacts expressed during community consultation on this point and predicted a “high” social impact ranking as a consequence of quarry trucks and traffic (with mitigation) for the following affected parties: the quarry near neighbours, visitors/users/residents of Paterson village, Paterson businesses and residents along the proposed haul route to Melbourne Street, East Maitland (SIA Fig 7.7). For each of these affected parties, the consequence levels were expected to be “moderate”, with likelihood ranging between “possible” and “likely”.
Certainly, the respondent’s experts agreed that impacts would be high in relation to impacts on way of life and community associated with the increased truck movements. As put by Dr Stubbs (Ex 23 p 9):
“…[the increased quarry truck movement] is likely to result in significant adverse changes in amenity, way of life and social cohesion in affected localities, including reducing physical access to valued services and facilities; changing behaviour, such as walking or cycling for healthy exercise or social contact; reducing social interaction in localities like Paterson village; and adversely affecting the way that residents experience and interact with their social and physical environment.”
“Overall, the 379 objection submissions noted concern about the loss of social amenity. This concern generally made reference to an anticipated loss of community. This concern was related to: truck movements and associated noise disruptions, expected to interrupt the peaceful town environment and robust public social life; disruption of ambience and character; damage to the public image/social identity of the area; interference with accessibility in the town and surrounding area.”
“a. Capping hourly truck movements
b. Limiting hours of truck movements
c. Increase current and future rail transportation
d. No trucks through Paterson”
“a. Reductions in truck movements – volumes and timeframes (this strategy has since been refined to reduced haulage from 3-6pm on weekdays, and no haulage on weekends and public holidays)
b. Reduced quarry operating hours
c. Increased use of rail (discussed further below)
d. Community sponsorship program to focus on amenity projects
e. Monitoring and evaluating the success of mitigation measures via a SIMP
f. Community engagement strategy.”
“…these practical strategies seek to uphold the reasonable expectations, character, and/or way of life of people in the involved localities. The development of these strategies, partly in reflection of the community’s expressed concerns and needs exemplifies the effective ‘call and response’ of which the Applicant is capable and committed in their relationship with the community members, their concerns, and value systems.”
We are mindful of the findings in New Century Developments P**ty L**td v Baulkham Hills Shire Council (2003) 127 LGERA 303; [2003] NSWLEC 154, [63], that “a court would prefer views from residents which are based upon specific, concrete, likely effects of the proposed development”. Having reviewed both written and oral submissions there is considerable specific lay evidence of likely social impact in relation to amenity and its social consequences. There has been considerable attention to this lay submission evidence on the part of those preparing the SIA and the experts providing evidence to assist the Court in the proceedings. The SIA provides commentary in relation to both “perceived” impact and their own findings on impacts having regard to these lay perceptions. We take it that the social planning experts have also sought to understand and validate the experiences expressed in these lay submissions (Ex 15, par 222).
Those undertaking the SIA concluded that, in matters relating to this subtopic, even with the proposed mitigation, the then (revised) project had a high social impact ranking with respect to a large group of parties like “visitors/users/residents of Paterson village”, “Paterson businesses”, and “various residents along the haul route” (eg Ex A Tab 8 App 4 Table 1.2).
The amendments to the proposal, subsequent to the undertaking of the SIA, need to be accounted for (ie reducing total haulage volumes by around 10% reduced truck haulage movements and specified changes to trucking hours among other factors). The respondents’ experts have taken these changes into account and have concluded that the amenity related social impacts are at least high.
We accept the evidence of Dr Stubbs and Ms Kanaris and find that social amenity related impacts are high as a consequence of the tripling of truck movements from the social baseline level. Here we are in the domain of effects on “way of life, surroundings, access to and use of infrastructure, services and facilities, community, health and well being” (see [242]). The evidence of the respondent’s experts was analytical and capable in its drawing lay evidence into material, beyond say personal or idiosyncratic perceptions, and into factors bringing weight to the contention before us. As it happens, the SIA also drew similar conclusions in relation to the analysis of lay evidence of social impacts on this particular aspect of social impact. The respondents’ experts also provided a reasoned critical analysis of social amenity related way of life impacts concerning: (1) road safety (usefully critically appraising the RSA work) and (2) noise (reasonably going beyond the ambit of the EPA guidelines as a social impact factor).
The additional truck movements would effect a notable change within the village of Paterson, through the week, which would have a significant effect on social interaction and community life. There would be inter-related effects on local businesses which we consider later. These social amenity effects would be less as the haul route approaches Maitland although the particular risks associated with the bus stops in Bolwarra and Bolwarra Heights warrant mention.
Professor Ryan’s point relating to the various beneficial aspects of the proposal are noted (see [208]) and the balancing of positive and negative impacts are considered in the concluding sections of the judgement.
There has been some considerable time between the preparation of some of the material accompanying the lodgement of the DA and the hearing dates. BG’s material on strategic justification, as at the commencement of the hearing, fell into that category. But we also heard current (lay) evidence in the course of public submissions at the commencement of the hearing. Certain points of this evidence (Ex 4 Tab 1 p 1) argued that a number of the major infrastructure projects referenced in Umwelt’s additional information report of December 2021 to IPC (Ex A Tab 21A p 41), suggested to be serviced by the quarry, had been constructed, or were well underway, despite the fact that the quarry has not been operating significantly since at least 2020-21 (Ex K).
While we were aware of the long term nature of the proposal (25 year outlook), it was also our view that it would be of assistance to the Court if updated material on strategic justification for the project were able to be made available. In turn, we invited the parties to provide further material in relation to two matters: (1) the supply side – in particular in relation to other already identified quarries supplying hard rock and whether there were any new quarries which warranted attention, and (2) the demand side – in particular in relation to significant (potentially targeted) infrastructure projects for the road haulage aspect of the proposal. With this invitation to the parties, we noted an intention to allow all parties the opportunity to respond to any new material provided.
On 19 March 2025, BG tendered updated material to the Court on strategic justification (Ex J). The first respondent provided a written response to this material (Department of Planning, Housing and Infrastructure response to Exhibit J dated 28 March 2025, marked Ex 31). The parties each made certain oral submissions in relation to the broader topic of the strategic justification for the project which we have had a mind to in drawing our conclusions.
In closing submissions, BG also referenced the various other pieces of documentary evidence relating to this question of the strategic need for the project and the economic benefits it would provide more generally (ACS, par 213-214). This material included the following:
Amended Development Application and Response to Submissions Report (Umwelt May 2021) (Ex A Tab 4 pp 3.42-3.51);
Amended Geological Assessment (VGT March 2021) (Ex A Tab 4B);
Economic Impact Assessment (Umwelt 19 March 2021) (Ex A Tab 4P); Revised Project Submissions Report (Umwelt November 2021) (Ex A Tab 8 pp 285-288);
Additional Information Report, at the request of the IPC (Umwelt December 2022) (Ex A Tab 21A pp 9-16).
We also note the material in Ex F (Applicant’s Bundle) which included a section entitled “Hard Rock Materials Shortage”. We have reviewed this material, relevantly, and reference it below as we see as appropriate.
“. railway ballast
. use of aggregates in concrete, bituminous surfacing, asphalt, landscape works, drainage works, road construction and gravel surfacing
. pavement construction materials, including road base for use in road construction, railway capping, structural and engineering fill
• rock for gabion baskets and wire mattresses used in civil retaining, stabilisation (e.g. road batters) and drainage works
• rock for coastal protective works
• manufactured sand for use in concrete, as fill and in landscaping applications
• oversize rock for landscaping, decorative and stabilisation works.”
Beyond quarrying itself, BG advises that the quarry undertaking has in the past, and would also as an aspect of the proposal before the Court, involve design and manufacture of certain more advanced road pavement-related manufactured product several of which are unique within the regional setting.
Both the wide range of available products and the quality of the source material are suggested as important points of differentiation between the quarry and alternative suppliers. The comparative quality of the aggregates available from the quarry is indicated in the specialist geological assessment (Ex A Tab 04B p 61):
“The analysis of the various properties of aggregates from quarries supplying the Hunter region demonstrates that the aggregates of the Martins Creek Quarry display properties which are suitable (and in many cases preferential to aggregates from other quarries) for a range of uses where physical and chemical properties are an important consideration.”
The geological assessment also references the value of three manufactured products which have been made available from the quarry including an “unbound road base”, a “heavily bound road base” (each meeting stringent RMS standards), and “washed manufactured sand” (replacing “exhausted” natural river deposits), each of which seem to be not otherwise available in the Hunter (Ex A Tab 04B pp 61-62).
Further in relation to range of products, Umwelt advises (Ex J p 1):
“Generally, quarries target materials into a particular market sector. The quarry produces materials for supply to all sectors, including products to the highest specified requirements. This is an important point of difference between the quarry and other hard rock quarry producers in the Hunter Region that primarily focus on the supply of aggregates to their internal Concrete and Asphalt customers.”
“Railway ballast is currently supplied by rail with an increase in product transported by rail subject to market demand and availability of rail paths on the Main North Coast railway line, and feasible access to rail unloading facilities in locations relevant to major infrastructure construction activities.”
“• infrastructure development – State or Federal spending on roads, rail, ports, schools, housing, hospitals, etc
• private investment – commercial development, industrial development and residential construction.”
“In addition to the existing Martins Creek Quarry, there are six other approved hard rock quarries with the capacity to provide significant volumes of high strength aggregates and construction materials within the Hunter Region.”
Figure 9 Table of Approved Hunter Region hard rock quarries and production rates (source: Table 3-2 State Significant Development Assessment SSD-6612 - October 2022 (Ex 2 p 956/1710))
Figure 10 – Umwelt commentary on production capacities of approved Hunter Region hard rock quarries (source: Table 2 Quarry Product Demand, Umwelt 19 March 2025 (Ex J p 956/1710))
“During the time that Martins Creek Quarry has been unable to supply the local market prices for some material have increased from 40-70%.”
Ex J also included a listing of hard rock quarries “proposed” to operate in the Hunter Region. Five additional quarry areas were nominated (including expansions to Martins Creek and Seaham) which could bring on a further 4,200,000 tpa (Ex J p 2). Table 1 in Ex J indicates the current approved resource base at “>132.5 Mt” (million tonnes) with the proposed additional potential resource at some 113.7 Mt. Table 1 adopted a figure of 5.0 Mt for the additional resource available from the Seaham extension. It is notable that in Ex 31, the Department indicates that according to the EIS the overall resource outlook for Seaham (extension) was 40 Mt. The Department also noted Table 1 as having some other variances from the EIS documentation which overestimated additional resource availability however these were only minor in scale compared to Seaham (extension).
While such things seem to be hard to pin down (see [280]), the commentary in Ex J (in particular the material in the right hand column reproduced in Figure 10, above), querying the production capacities of approved Hunter Region hard rock quarries as indicated in the Department’s Assessment Report (reproduced in Figure 9, above), is not supported by high standards of evidentiary material. We do have regard here to the commentary in the Additional Information Report to the IPC which does refer to (without providing copies of) “emails” (Exhibit A Vol 5 Tab 21A pp 9-16) and does provide actual correspondence indicating that the Brandy Hill Quarry was approaching its consent limit (Applicant’s Bundle of Documents Ex F pp 997 and 1260). We also note the reference to commentary from the Mayor of Dungog regarding the shortage of materials for local road construction and "difficulties day after day with labour, with contractors and with materials" (Ex A Tab 21A p 13).
In respect to the supply position, the Department indicated that:
“the Department notes that this information is based on Daracon’s assertions from its knowledge of operating in the market. The Department has limited ability to verify the information.” (Ex 31 p 1)
The additional information in BG’s bundle of documents (Ex F) also included four documents headed “Hard Rock Materials Shortage”. This material involved a wider analysis. Two documents outline work of an industry association (Cement Concrete and Aggregates Australia) to encourage a more strategic approach to planning for quarrying activity to meet infrastructure demand and in particular the preparation of an integrated NSW Heavy Construction Materials Supply Strategy (Ex F p 890-893). Apart from the Brandy Hill Quarry material mentioned above, Ex F also includes a report from the statutory authority Infrastructure Australia (IA), entitled Infrastructure Market Capacity 2023 Report (IA report). Among numerous areas, the IA report engaged with the question of quarried hard rock supply.
We found the IA report provided some useful contextual information, which can be readily seen as independent and focused on the public interest associated with the delivery of infrastructure; including infrastructure reliant on the kinds of hard rock which the proposal would supply.
The report suggests there is “no single source of quantitative ‘truth’” with respect to supply of such infrastructure inputs as quarry products (Ex F p 989). The IA report relied on both published data and primary research to draw conclusions with respect to non-labour supply, including quarry materials. The primary research seemed substantial and involved both industry surveys and, seemingly, considerable telephone interviews with those with the ability to “deliver larger infrastructure projects” and “major infrastructure industry suppliers” to the “wider supply chain” (Ex F p 989).
The IA report included research and analysis in regard to “understanding demand” and “understanding non-labour supply” including with respect to “quarry supply” (labour is commonly identified as the major supply constraint (eg Ex F p 934)). With respect to the supply of quarry products, the research identified that it was “quarries that serve Melbourne, Mid North Coast New South Wales and Southeast Queensland” which were identified as being “low on supply”. This report also included a “spotlight” section on quarry products which identified capacity risks as “high”. The “key insights” in this section included (Ex F p 939):
“• Due to high transportation costs relative to materials value, quarry products must be sourced locally.
• Planning processes are the biggest constraint to quarry expansion and capacity. It takes 5—10 years from quarry application approval to extraction, during which time the built environment may take over a prospective quarry site.
• Melbourne has been projected to experience acute quarry shortage as several quarry consents are due to expire before new greenfield quarries can be established. If consents are not renewed, local construction costs will increase significantly…
• In South East Queensland, increased infrastructure demand fuelled by population growth and the Brisbane 2032 Olympics will exert pressure on local quarry reserves for the next decade.
• Elsewhere, quarry capacity in Mid North Coast NSW is a growing risk to Coffs Harbour Bypass investments, as are quarries that serve regional and remote areas due to a lack of logistics and capacity approvals.
• Labour access remains the biggest issue for the quarry industry: truck drivers and quarry operators are in particularly short supply.”
We are not aware that this Martins Creek quarry proposal has a substantive concern with serving the Mid North Coast region. Rather, Newcastle and the Hunter region provide for the largest target markets with aspirations for growing markets in Sydney and the Central Coast (Ex A Tab 08 p 285). It’s possible that it might be interpreted that Newcastle and the Hunter might be included within the nominated “regional and remote areas” which are also identified as subject to capacity constraints. However, we note that according to the Revised Response to Submissions material (Ex A Tab 8 p 286), the Hunter Region is “Australia’s largest regional economy”. Given its scale, it would be reasonable to understand Newcastle and the Hunter to be directly referenced in the IA report (over say the Mid North Coast) if they were areas of particularly notable “capacity risk” at the identified point in time.
We also accept the submissions of BG that the Department carried out an assessment of the demand for construction materials and the regional extractive industry market and concluded that:
“…the proposed quarry extension would contribute a broad range of affordable, high-quality construction materials to local and regional markets; and contribute to the supply of materials for the construction of housing and major regional infrastructure projects.” (ACS, par 220)
It is clear that operation of the Martins Creek quarry would assist in the supply of hard rock for what is intended to be an ongoing rollout of important, and fairly proximate (in the sense of convenient and thus lower associated supply cost) State infrastructure, and other construction works over coming years. We also accept that there are certain features of the resource which differentiate it from other quarries in a positive sense. However, we were less convinced of the differentiation qualities in the Ex J documentation than that provided in the specialist geological assessment associated with the application (Ex A Tab 04B p 61) and cited at [265], which inferred some parity with respect to product quality at other quarries, with respect to at least some areas of high quality product demand. That is, the specialist geologist assessment provided somewhat feinter praise in our interpretation than the commentary in Ex J. We also give weight to the advice in the Department’s Assessment Report indicating that at the time a number of other identified quarries have capacity to provide the required hard rock resource (see [271]), and further rollout of hard rock quarry areas is expected (see [275]).
In turn, the non-availability of the Martins Creek product would provide a negative impact on the market supply for quality hard rock and certain, specialised manufactured product. This could be understood to result in a cost to public infrastructure provision and to various others in demand for this resource. A reference to more recent price increases for hard rock supply is made in Ex J (see [274]), however this is not supported by evidence which might allow testing of the claim. It also does not indicate the extent to which it is lack of (convenient) supply, over other pricing factors which might contribute to the increase. In relation to the suggested $58m NPV contribution to the State economy over the 25 year project life, we have not been taken to information on the extent to which this contribution would be replaced by other mines were the project not to go ahead.
On the evidence before us, the case has not been made that the negative strategic implications (or increased cost for larger public interest related construction) would be of such high order, or the Martins Creek product to be of such irreplaceability, as to almost inevitably override other effects in a DA evaluation exercise. Of note to us on replaceability is that: (1) since September 2019, Martins Creek Quarry has not supplied any significant material volumes of construction materials into the greater Hunter regional market, and (2) there is what seems to be undisputed (albeit lay) evidence on the roll-out of significant infrastructure over that period (Ex 4 Tab 1 p 1), which was a trigger for our invitation to BG to provide updated material on this topic. We also would understand that there are many factors involved in the cost equation for infrastructure development such as roads, rail, ports, hospitals and schools, which the proposal would seek to supply. That is not at all to say there is not a public interest in keeping this particular cost factor down (rock supply, specified manufactured products, along with associated road haulage).
This matter is further considered in our conclusions.
“• increase employment opportunities for those within the local community who are interested in pursuing employment with Daracon, by advertising locally
• offer apprenticeships and traineeships to local youth, where possible
• maximise the use of local suppliers in procurement activities at the quarry where feasible.”
“This is largely driven by benefits to local suppliers, based on information from Daracon that 100% of the inputs to production are supplied from the region. In fact, the net benefit to local suppliers is estimated to be about $26.2 million in NPV terms. There is an estimated additional benefit of $9.2 million in NPV terms to local workers over the life of the Revised Project.”
“The Lower Hunter region is located to the west of Newcastle and circles the regional Centre of Maitland. The SA3, includes Singleton and Cessnock, as well as towns like Wollombi in the southern end of the region and Chichester in the north.” (Ex A Tab 4P p 19)
As indicated earlier there were a substantial number of lay submissions expressing support for the proposal in regard to local economic benefits. There was also scepticism in relation to local benefits from both local residents and the respondent’s social planning experts. In relation to local businesspeople we note that a number raised concern in SIA consultations regarding impacts on livelihood (Ex A Tab 21 p 29).
Ms Kanaris argued that (Ex 15 par 165):
“The 22 jobs does not sufficiently outweigh the potential negative impacts that are related to potential loss of livelihoods for small businesses in Paterson and Bolwarra (cafés, bakeries, shops)”.
A concern was that despite extensive submissions from local residents concerned about business livelihood and loss of people to the local area as a consequence of the increased trucks and dogs, insufficient appraisal of associated negative effects had occurred.
We note that the SIA does include a section on “local business and livelihood”. There is information on tourism’s contribution to the Dungog economy (some $47 million) (Ex A App O p 325) and a representation of concerns raised by local community members and business owners of negative effects, for example (Ex A App O p 324):
“…I also believe that a further increase of truck traffic will have a great impact on local tourism. A lot of the money coming into this area is from people visiting to enjoy the peace and quiet and get away from the city traffic. (EIS submission 173913) The increased truck Traffic through Paterson directly affects not only my business
… The noise from the truck Traffic disturbs not only me but also my guests. I have on occasion had guests leave due to the truck noise, or have said they would not return for that reasonThe statement of economic effects does not seem to address adverse tourism or other localised adverse effects associated with risk from increased quarry trucks.”
“The examples of relevant TripAdvisor reviews included in this section of the SIA Report (pp.324-5) demonstrate guests’ positive experiences of their stay and of the area, citing aspects of its historical charm. While these reviews make mention of noise associated with trucks and trains in the early mornings as the only drawback of their stay, they also highlight the comfort of their stays. These cited reviews are all dated 2017, and it follows that the haulage activity proposed currently, being lower than the actual activity of 2017, would stand to create lower levels of this disturbance.”
The localised benefits of the proposal are less clear than the wider strategic benefits of the proposal. There seem to be at least four unanswered queries arising on that front.
First, is that the assumption in the calculation of LEA that 100% of the inputs to production are supplied from the region might be reasonably thought to be an ambition rather than something that will definitely be achieved over the project life and would be enforceable, for example, through consent conditions and the like. For example, we note the qualifying commentary (“where possible” and “where feasible”) above at [289].
Second, is that the question arises as to what proportion of local economic benefits would be delivered if, rather than the Martins Creek quarry, other quarries in the local area were to provide the supply (and associated direct and indirect effects). Relatedly, what proportion of benefits otherwise provided by local quarries would be lost as a consequence of approval the proposal. We have not been directed to information on this.
Third, is that we accept the evidence of Ms Kanaris, having considered Professor Ryan’s evidence and assessed the various lay submissions including from local business people, that there would be economic downsides with the tripling of quarry truck traffic along the haul route, especially in Dungog LGA and especially in Paterson. We could observe during our site visit the obvious potential effects of both loss of highly convenient parking in Paterson (to well used cafes and post office for example) and the fact of closer passing quarry trucks and dogs, especially the Paterson Country Café outdoor dining where a road widening occurs. An adverse economic and job creation effect can be expected related to both tourism (Monday to Friday but not necessarily limited to that period); and associated with general local commerce (which relates to sense of community and the like discussed above). There was also persuasive oral evidence from the owner of Paterson service station and café, on this front, where it seems local employment in this facility has grown to 13 staff during this much quieter period of quarry truck use, and is concerned that a number of local businesses would be seriously affected or not survive with increased quarry truck movement through the town (Ex 4 Tab 9). These considerations have not been interrogated or accounted for sufficiently in the LEA.
Fourth, and related to more localised effects, is that even if these benefits do accrue in the LEA’s larger defined area (eg including Singleton and Cessnock, then ranging to Wollombi in the south and to Chichester in the north), to what extent might such benefits be offset against the very localised adverse effects along the quarry truck haul route. The question of distributional equity has been raised in the contentions. It might be reasonably thought to apply not only to the question of strategic benefits but also localised benefits.
(1) Before granting consent for development for the purposes of mining or extractive industry that involves the transport of materials, the consent authority must consider whether or not the consent should be issued subject to conditions that do any one or more of the following—
(a) require that some or all of the transport of materials in connection with the development is not to be by public road,
(b) limit or preclude truck movements, in connection with the development, that occur on roads in residential areas or on roads near to schools,
(c) require the preparation and implementation, in relation to the development, of a code of conduct relating to the transport of materials on public roads.
“… a detailed assessment of the existing railway siding facility at the site as an alternative transport option for delivering quarry products and avoiding potential impacts associated with road delivery.”
“Not proceeding with the Revised Project would not provide for a commercially viable extraction rate nor the extraction of a long term resource. Not proceeding with the (amended DA) is not considered a feasible alternative due to:
1. The extent of valuable resources remaining in the lease areas.
2. Lack of certainty over the rehabilitation requirements of the whole Project Area.
3. Lack of certainty on the Approved Operations, as demonstrated in community and interest group submissions on the Revised Project.
4. Uncertainty around ongoing supply of construction materials to the local, regional and greater Sydney regions.”
The experts providing evidence on this topic were P Imrie, called by BG; and T Brooker called by the respondents. The joint expert report of Mr Imrie and Dr Brooker was marked Ex 7 and no points of disagreement were identified.
Three specialist reports referenced in the expert report were:
Rail Logistics Options Report prepared by Plateway (Mr Imrie's firm) and dated 25 May 2021 (referenced in the joint expert report as "Rail Logistics Report");
Rail Logistics Report prepared by Plateway and dated 22 June 2015; and
A further analysis of rail transport options for the quarry undertaken by Plateway, under year 2024 economic conditions (Ex 7 par 2.8).
Various points of agreement between the experts were synthesised by BG and MCC in closing submissions (ACS par 243(d) and MCC-CS par 219). These included that (Ex 7 paragraph references introduce each quote):
“[2.68]. There is no clearly feasible local rail transport operation able to be established for the quarry in the short term …
…
[2.64]. The operation of multiple trains out of Martins Creek is possible only if the proposed siding upgrade goes ahead. Due to multiple constraints such as noise impacts, it is not possible to extend the daytime loading windows with the existing rail siding.
…
[3.77]. The Rail Logistics Report did consider the opportunity for local rail distribution at local hub sites. Alternative hub sites were considered in the investigation to the use of road transport. In the short to medium term, there were no feasible alternatives to road haulage identified.
[3.78]. However, in the longer term, economic and environmental metrics (see TfNSW Sustainability Policy in Annexure G) should encourage the use of rail transport to supply constructions to major transport projects. This will drive the uptake of increased rail volumes from Martins Creek Quarry, given the proposed upgrade to the facilities.
…
[2.18]. Daracon has grown its existing/likely client base using road transport. Implicitly, Daracon will need to find a new client base to effectively use rail transport.
[2.19]. There are some opportunities in the list of projects provided by Daracon in Annexure I which would allow the change in client base to occur.
…
[2.21]. An additional client base is most likely to be found in the Sydney market, in combination with major projects in the Hunter Valley. The Sydney markets will require an additional aggregate distribution hub at Glenlee or Chullora or potentially other locations.”
“TO: Now, none of your analyses, either in May 2021 or now, have evaluated feasibility in terms of whether it would produce a profit to the applicant or achieve a particular return to the applicant; do they?
WITNESS IMRIE: No. My assumption is that in a free market, to be efficient, your quarrying costs are going to be similar. So if you’re subject to competition, right, particularly, let’s say we run to Glenlee and I’m competing against a quarry in the Southern Highlands hauling by road to Glenlee. Right, to be successful I have to offer that product there at the same or lower price. And transport forms a significant portion of the cost of the delivered product.
TO: So it follows, doesn’t it, that your analyses don’t shed light on whether rail haulage, if used, may still be profitable, but comparatively less so than road; correct?
WITNESS IMRIE: Correct.”
(Tcpt, 25 March 2025, p 326(14)-(29))
We have indicated in earlier findings that the road haulage aspect of the proposal is central to the adverse impacts the projects bring about in relation to both public safety and social amenity. This does draw into attention the requirements of s 2.22(1) of SEPP Resources. That is whether we should require by condition “some or all of the transport of materials in connection with the development (to be not by) public road”.
The DA does indicate an intention to increase rail haulage. The indications are that the new longer siding would be constructed and operational in four years. The experts also indicate that conditions will improve in relation to the commerciality of rail haulage. However, in relation to the DA, there was little in the way of specific flow-on implications of the turning on of the new rail system, such as indications of the bringing down of impactful road haulage levels and to what extent (ie after construction of the rail siding and its noise treatments).
MCC and DSC submit that increased hard rock extraction levels should be limited to that which can be transported by rail, and that the feasibility of this has simply not been investigated. According to these parties, the focus of all the evidence has been on what is the most profitable of the two haulage options.
We found the Plateway evidence to examine, principally, that which was the most profitable out of road and rail; and that this was essentially based on low cost production and with relatively short time horizons in mind. The view seemed to be held, seemingly also by both experts providing evidence to the Court on this topic, that there was a market for hard rock and the competitive offering into it, in a free market, was the low cost producer. That is to say, if this quarry can supply the quarry product by road at one (relatively low) haul ($) rate to market, then if the rail haul rate was higher there was no place for it in the market – it would be “uncompetitive” (see for example Tcpt, 25 March 2025, p 326(18)-(35)).
This is a limited assessment of the question of rail “feasibility” on a number of grounds. Conceptually, it is unreasonable to assume low cost production is the only way to compete in the market. It is reasonable to understand there to be variations in costs for existing market participants today but there is participation from a number of suppliers. One line of reasoning behind this is different positions on acceptable rates of return on investment. But at a more basic level, adoption of “low cost” as a competitive strategy does not take account of other strategies to compete in a competitive market. Many working in the field of competition and associated strategy would be familiar with the work of Harvard University’s Professor Michael Porter, who described two “generic” strategies; one of which is low cost production. But value to a buyer can also be centred on a second strategy based on product “differentiation” factors according to Porter (see Michael Porter, Competitive Strategy (1980)). In this instance a point directly argued by BG is that the Martins Creek quarry product is differentiated from other hard rock supply on the basis of its quality. Geology expert evidence suggests the material is “preferential”, at least “in many cases” (see [265]). There is also no examination of the potential for improved supply reliability, as a product differentiation strategy, associated with rail, given the identified concerns with short supply of drivers in the IA research (Ex F p 939). The point we make is not that consideration of such factors might prove rail as feasible. Rather it is that the rail feasibility evidence has, for us, significant limitations in what it does cover.
But, relatedly, and more important for us on this feasibility question, is the evidence that even over the time horizon of this project, “the gap in costs between the road and rail transport options is now much closer than in either 2014 or 2021” (Ex 7 par 2.8) and that rail haulage can indeed be profitable even now under suitable conditions (Tcpt, 25 March 2025, p 327(26)-(40)). Instead of attention to a situation today where the quarry cannot now supply any volume by rail (Tcpt, 25 March 2025, p 327(12)-(13)), what would have assisted the Court here was further considered analysis of the make-up of an operating rail haul system at Martins Creek, and downstream logistics, considering some reasonable time horizon; appropriately discounted to present value. Interesting elements to factor in for us would include: naturally, the significant obvious capital upfront costs involved in the rail spur improvements, but also running truck haulage at the current lawful limits, and the holding costs of stockpiling excavated material for the rail spur construction in the eastern area of the site for the period until a rail haulage system was back on line (eg reference MCC-CS par 241).
In our consideration, the evidence supports the submissions of MCC and DSC that neither the DA material, nor the specialist work accompanying it, including the recent 2024 analysis of Mr Imrie, nor indeed the expert evidence to the Court, address the question of the feasibility of a proposition that rail haulage be employed instead of road haulage for some proportionate level of the annual haulage (say either at the currently approved level or otherwise). Further work on this question would have assisted us with respect to our need to give consideration to s 2.22(1) of SEPP Resources.
As a commercial imperative alone, it seems understandable that there be no rush to the move to rail haulage at scale. Truck haulage gives both lower cost and heightened flexibility to the supply of quarry product to the market. It is also easier to work with a pre-existing client base. But, in this case, it is clear such commercial imperatives would come at a cost to the community along the haul route. The setting is captured, in a sense, in evidence from the rail experts in response to a question on a suggested profitability focus in the Rail Logistics Report (Ex 7 par 2.27):
“Any quarry operator will focus on the most market competitive, commercially feasible, operation. This is subject to the constraints which the planning approval imposes”.
Elsewhere in the body of the judgement, we have come to findings in relation to topics where we have found the application wanting of further information to assist its case. These are in relation to factors associated with at least: (1) traffic safety (in particular relating to intersection design and feasibility and traffic queuing), (2) social impact concerns (particularly in relation to vulnerable persons), (3) rail feasibility, and (4) localised economic effects.
We note BG’s arguments that conditions of consent (under s 4.38 of the EPA Act) and a prospective future role of the Secretary of the Department undertaking a vetting role, could satisfy the Court with respect to such matters. However, as explained in the various content sections of the judgement, in this instance, there is a concern about whether we can adequately meet the requirements for impact assessment under s 4.15(1) of the EPA Act, generally, without further pertinent information.
This State significant development proposal would bring about significant effects both negative and positive. In terms of this judgment, the setting arises where the task before the Court, in accordance with the findings of the Court of Appeal in Warkworth Mining Ltd v Bulga Milbrodale Progress Association Inc [2014] NSWCA 105 at [172] is to “balance the public interest in approving or disapproving the project”.
There is considerable supportive evidence for the proposal. We note the Department’s positive assessment report in that regard, also noting the further refinements of the proposal subsequently, attempting to reduce impacts. Expert evidence in support of the proposal is evaluated above. On the evidence, the most important public interest factor for approval of the proposal is that related to increased availability of quality hard rock into the construction sector, especially to serve the construction of major infrastructure including State and regional roadworks and other construction works that are significant to economic growth and of social importance. The extraction of the proposed 1.1 Mtpa of quarry product over 25 years from the site, is of a considerable scale and the grant of consent and flow on supply of hard rock would make a positive contribution at a strategic level. There are other positive effects of the proposal including in relation to improved noise outcomes in the environs of the quarry over time, localised economic effects, funding related to community programs and, although not particularly clear, improved prospects for increased use of rail haulage.
The evidence in relation to adverse impacts of the proposal is clear and strong. There are significant road safety concerns. The existing haul route has a series of identified traffic and pedestrian safety problems including a large number of high risk settings, now, as identified in the RSA and Thematic RSA. Associated risks would undoubtedly increase significantly with the tripling of quarry traffic (effecting a doubling of larger trucks through Paterson through the week). The proposed consent conditions do not provide a sufficiently clear path to resolution in our opinion. There is also considerable uncertainty in terms of general configuration of the four road improvement proposals (and TfNSW endorsement, as relevant) and importantly and even mindful of s 4.38(1) of the EPA Act, insufficient information to properly evaluate the impacts with respect to certain aspects of the three rural road improvement proposals. There is also insufficient detail in relation to impacts on the publicly important Melbourne St/New England Highway intersection in East Maitland. Finally on this topic, and while not determinative, we also note that despite all good intentions in regard to a future improved truck driver code of conduct, a sense of scepticism was reasonable in the circumstances. This acknowledges difficulties in managing quarry truck drivers in the past, even for this particular quarry, despite an existing driver code of conduct; and evidence of ongoing pressures on truck drivers indicated in lay submissions.
The evidence was also quite clear in regard to social impacts. For reasons indicated above, we preferred the evidence of the experts called by the respondents on this topic, generally. There would be significant adverse social impacts relating to road and pedestrian safety and in relation to the broader amenity along the haul route, particularly within Paterson. There is a pleasant amenity in Paterson village and its surrounds, which is supportive of social interaction relevant to the local sense of community. We accept the notion of the IPC that this place function of the main road through Paterson village, at least, would change as a consequence of tripling of quarry truck and dog traffic and result in social interaction and cohesion decreasing. Arguments by and in support of BG, to suggest that the historical use of the haul route by quarry trucks assisted a finding that amenity impacts were acceptable, were unconvincing. The case law is clear that past conduct which is unlawful should not advantage BG here. Moreover, the operating consent demonstrates an explicit finding, at the time of its determination, that this quarry would have only limited impacts on the more local road system. We also noted that the SIA directly found social amenity impacts related to truck noise as “high” for “residents along the proposed primary haul route” and for “visitors/users/residents of Paterson village” and “Paterson businesses”.
Persons particularly vulnerable to road and pedestrian safety or noise concerns would be particularly affected, such as older people, those with physical disabilities, families with young children, shift workers and those with anxiety associated with historical truck noise. There would be flow on effects on factors such as sense of wellbeing. Post approval intentions on the part of BG relating to considerably more community consultative arrangements and program funding; and preparation of a social impact management plan were unconvincing.
A cost benefit analysis for the proposal indicated positive economics both in wider strategic terms and in regard to a regional catchment. However, it was missing information on a number of fronts, including adverse effects on local commerce and tourism associated with the increased quarry truck movement; and to what extent these suggested benefits were irreplaceable or would be otherwise replaced from outputs from other quarries.
When we undertake the balancing out of the public interest in approving or disapproving the project, the public interest in disapproving the project is considerably more weighty. This is because of the extent of demonstrable negative impacts the project can be expected to bring in regard to road safety and social amenity along the quarry truck haul route, including the concomitant disbenefit at a community level, particularly in the Paterson village environs. That is to say, it is the extent and particulars of the quarry’s required haul route, rather than the operating quarry that are of key concern. On the evidence before us, the strategic and more localised benefits associated with increased supply of hard rock are significant, but not unlimited, and in all of the circumstances cannot match these adverse impacts.
Mindful of s 2.22 of SEPP Resources concerned with transport (see [302]), there may be a path open to the Court to impose the kind of conditions suggested by MCC, to require construction of the rail spur extension and noise mitigation within two years (limiting road and rail haulage to current levels until then) and once completed raise the extraction limit to 1.1Mtpa (while retaining road haulage to the existing approved limit of 150,000 tpa. This conception does have some appeal to us. But we have two concerns which are determinative on that particular question, first is that we are still missing an understanding of the feasibility of a path whereby the current approval locks in something akin to current approved road haulage levels and requires construction of the rail spur (while efforts have been made, there are limits to MCCs capacities to draw conclusions on that question). Second is that BG has made clear that this is not its application. BG saw no unreasonable impacts of road haulage at the levels it sought approved. It is unknown whether these findings may bring about a reconsideration, given the experts’ suggestion on the future increased viability with respect to rail haulage, including to the Sydney market.
Section 2.17 of SEPP Resources is concerned with the compatibility of proposed mine and extractive industry with other land uses. There are certain requirements for consideration within it which we have considered in our evaluation but can record now. We are aware of the site’s history as an operating mine and extractive industry. This has been a particular consideration in our deliberations, given that there are often significant regulatory hurdles involved in creation of new mine sites. This point is well outlined in a specialist geological report accompanying the application (Ex A Tab 4B, p 50). We note that there is still potential for extraction of the resource given the evidence of increasing commerciality of rail haulage into the future, including into the Sydney market.
We have also considered approved land uses in the vicinity of the development. What has become a determinative matter in this case, in relation to public benefits and disbenefits is the road haulage aspect of the proposal. There are associated impacts concerned with public safety and social amenity. In terms of the question of preferred land uses and inter-compatibility, when we balance things up, it is preferable that these land uses not be impacted upon to the extent which would occur were the proposal to be approved.
In all of the circumstances, the balancing of public interests in relation to approval or refusal of this proposal indicates to us that the proposal should be refused.
We also note that the proposal is also lacking in certain information reasonably required to undertake an evaluation of the impacts of the proposal under s 4.15(1) of the EPA Act, including certain matters outlined at [318]. BG has not met the persuasive burden to make its case in relation to these matters.
The Court makes the following orders:
The appeal is dismissed.
State significant development application SSD 6612 for the Martins Creek Quarry Project is refused.
The exhibits are returned with the exception of Exhibits A, B, C, D, 6, 17 and 21 which are retained.
**********
Amended a typographical error.
Buttai Gravel Pty Ltd
Independent Planning Commission [2025] NSWLEC 1525
(2019) 101 NSWLR 1
(1982) 29 SASR 321
(2003) 127 LGERA 303
(2000) 111 LGERA 181
(2018) 233 LGERA 170
(1996) 185 CLR 470
(2008) 160 LGERA 20
(1999) 46 NSWLR 598
(2006) 143 LGERA 277
(2006) 67 NSWLR 256
(2006) 146 LGERA 10