Is each permit a "lease"?
11 The State develops its contention first by drawing attention to the definition of "lease" provided by s 242 of the NTA:
(1) The expression lease includes:
(a) a lease enforceable in equity; or
(b) a contract that contains a statement to the effect that it is a lease; or
(c) anything that, at or before the time of its creation, is, for any purpose, by a law of the Commonwealth, a State or a Territory, declared to be or described as a lease.
References to mining lease
(2) In the case only of references to a mining lease, the expression lease also includes a licence issued, or an authority given, by or under a law of the Commonwealth, a State or a Territory.
12 In short, the State argues that, when read with other provisions of the NTA, s 242(2) makes the exploration permits into leases for NTA purposes.
13 The State observes that s 242(2) was not included in the first draft of the Native Title Bill 1993 (Cth) but was introduced following further consultation, and refers to the terms of the Supplementary Explanatory Memorandum, Native Title Bill 1993 (Cth):
The addition of subclause (2) provides that for the purposes of mining leases only, licences or authorities to mine are to be treated in the same way as mining leases. This amendment is part of a package of amendments to treat licences and authorities to mine in the same way as mining leases. The related amendments are found in amendments 66 and 67.
14 It may be noted, in passing at this point, that the Supplementary Explanatory Memorandum refers to licences or authorities "to mine" being treated in the same way as mining leases.
15 The State points out that amendments 66 and 67 are consequential proposed amendments to the definition of "lessee" as a result of the expanded definition of "lease" that is now reflected in s 243(2) of the NTA which provides, in effect, that in the case of a lease that is a mining lease because of s 242(2), the expression "lessee" means a person to whom the licence or authority was given or any person who subsequently acquires the licence or authority.
16 The State also draws attention to what the Supplementary Explanatory Memorandum states in respect of amendments 66 and 67:
This clause defines what is meant by the term 'lessee' for the purposes of this Bill. The addition of subclause (2) makes it clear that for the purposes of a mining licence or authority that is a mining lease because of subclause 227(2) [now subsection 242(2)] a person holding such a licence or authority is to be regarded as a lessee for the purposes of the Bill. These amendments are also consequential upon the treatment of mining licences and authorities which give similar rights to mining leases in the same manner for the purposes of this Bill.
17 By reference to Wilson v Anderson (2002) 213 CLR 401; [2002] HCA 29 at [59], the State observes that s 242(2) postulates the existence of an interest which, although described as a "lease", is not a lease at common law.
18 From that postulation the State draws the submission that anything described as a "lease" in the NTA is a "lease" by virtue of s 242(1)(c).
19 Thus, the State contends, the definition of "lease" in s 242 extends to include licences and authorities to mine. As to the definition of "mine", the State relies on the definition of that verb provided in s 253, as follows:
mine includes:
(a) explore or prospect for things that may be mined (including things covered by that expression because of paragraphs (b) and (c)); or
(b) extract petroleum or gas from land or from the bed or subsoil under waters; or
(c) quarry;
but does not include extract, obtain or remove sand, gravel, rocks or soil from the natural surface of land, or of the bed beneath waters, for a purpose other than:
(d) extracting, producing or refining minerals from the sand, gravel, rocks or soil; or
(e) processing the sand, gravel, rocks or soil by non‑mechanical means.
20 The State submits each of the two exploration permits, by the terms of s 38 of the PGERA under which each was granted, "authorises the permittee, subject to this Act and in accordance with the conditions to which that permit is subject, to explore for petroleum".
21 It follows, the State submits, that each permit, being an authority to explore, is an authority to "mine"; and so is a "lease" by virtue of s 242(2) of the NTA.
22 The State also notes that "mining lease" is defined in s 245 of the NTA in the following way:
(1) A mining lease is a lease (other than an agricultural lease, a pastoral lease or a residential lease) that permits the lessee to use the land or waters covered by the lease solely or primarily for mining.
23 The qualification, "solely or primarily for mining" is the subject of further submission by the State.
24 The State accepts it is only licences and authorities under the PGERA that are "solely or primarily for mining" (as "mine" is defined in s 253 of the NTA) that fall within this definition of "mining lease", and contend that the permits satisfy that qualification.
25 By contrast, the applicant contends that the exploration permits do not come within the definition of a "lease". It submits the extended definition of "lease" in s 242(2) applies in the case only of references to a mining lease, that is to say where a provision expressly refers to a "mining lease". Thus, the applicant submits, because para (b)(i) does not refer to a "mining lease" but only to a "freehold estate or a lease", it does not pick up the exploration permits in this case.
26 The applicant accepts that while the reference in para (b)(i) to a "lease" might include a mining lease under the Mining Act 1978 (WA) or a retention lease under the PGERA, by reason of s 242(1)(c) of the NTA, s 242(1) and (2) do not have a cumulative operation such that any reference in the NTA to a lease includes a "licence issued or an authority given, by or under a law of the … State", in the extended definition. It submits that such an interpretation or construction would contradict the opening words of s 242(2) itself: "in the case only of references to a mining lease".
27 Following the hearing on this question of construction, and the reserving of judgment on it by me, Mortimer J delivered a reserved judgment in Narrier v State of Western Australia [2016] FCA 1519. At [1194] to [1210], her Honour dealt with the issue whether an exploration licence granted under the Mining Act falls within the meaning of "lease" in s 47B(1)(b)(i) of the NTA. Because her Honour decided it did not, and her Honour's analysis appeared directly relevant to the question before me, I invited the applicant and the State to make further submissions having regard to her Honour's analysis.
28 Mortimer J's analysis at [1194] to [1210] is as follows:
1194 In its reply submissions, given the findings of the Full Court in Banjima People v Western Australia (No 2) [2015] FCAFC 171; 328 ALR 637, the State did not press its alternative submission under s 47B(1)(b)(ii) about the exploration licences.
1195 That leaves its submissions that these licences fall within the meaning of 'lease' in s 47B(1)(b)(i). The State submits that the definition of 'lease' in s 242 of the NT Act includes licences and authorities to mine. Relying then on the definition of 'mine' in s 253 of the NT Act, the State submits that a mining exploration licence is a 'lease' for the purposes of the NT Act, and therefore within s 47B(1)(b)(i).
1196 Section 242 provides an inclusive but not exhaustive definition of the term 'lease':
Lease
(1) The expression lease includes:
(a) a lease enforceable in equity; or
(b) a contract that contains a statement to the effect that it is a lease; or
(c) anything that, at or before the time of its creation, is, for any purpose, by a law of the Commonwealth, a State or a Territory, declared to be or described as a lease.
References to mining lease
(2) In the case only of references to a mining lease, the expression lease also includes a licence issued, or an authority given, by or under a law of the Commonwealth, a State or a Territory.
1197 The State relied on the effect of s 242(2). Its submissions describe the addition of subs (2) to the original draft of the Native Title Bill 1993 (Cth) and refer to the Supplementary Explanatory Memorandum and to the explanatory material which related to the corresponding expansion of the definition of 'lessee' in s 243(2). There is nothing in this explanatory material which assists the State's argument, as it simply repeats (as extrinsic material is wont to do) the terms of s 242(2).
1198 The real source of the State's submission is the definition of 'mine' in s 253, which provides:
mine includes:
(a) explore or prospect for things that may be mined (including things covered by that expression because of paragraphs (b) and (c)); or
(b) extract petroleum or gas from land or from the bed or subsoil under waters; or
(c) quarry;
but does not include extract, obtain or remove sand, gravel, rocks or soil from the natural surface of land, or of the bed beneath waters, for a purpose other than:
(d) extracting, producing or refining minerals from the sand, gravel, rocks or soil; or
(e) processing the sand, gravel, rocks or soil by non-mechanical means.
1199 The terms of (a) indicate, the State submits, that if a 'licence' falls within the definition of 'lease' then a licence to 'mine', as defined in s 253, must include an exploration licence. By this route, the State reaches the exclusion in s 47B(1)(b)(i).
1200 I do not accept the State's submission, as it distorts the exclusion in s 47B(1)(b)(i), and does not give effect to the text of s 242(2).
1201 Section 242(1) contains a general definition of 'lease' for the purpose of the NT Act. As I have noted, it is inclusive, not exhaustive. However, the remainder of Div 3 of Pt 15 then goes on to identify, and make specific provision about, a number of common lease types which might coexist on land over which native title is claimed. Unsurprisingly, one of the kinds of leases for which specific provision is made is a mining lease.
1202 Section 245(1) provides:
A mining lease is a lease (other than an agricultural lease, a pastoral lease or a residential lease) that permits the lessee to use the land or waters covered by the lease solely or primarily for mining.
1203 Agricultural, pastoral and residential leases all have their own definitions: see ss 247, 248 and 249.
1204 Division 3 of Pt 15 is, as s 241 states, a definitional division. The purpose of s 242(1) is to indicate what kinds of transactions are to be comprehended by the term 'lease', and this will inform the meaning of the word in the more specific definitions which follow. So that, for example, a residential lease under s 249 will include a lease that is enforceable in equity.
1205 The purpose of s 242(2) is to give an extended operation to the term 'lease' only in the case of mining leases. The effect is that wherever the NT Act uses the term 'mining lease', that is to be taken as including a 'mining authority' or a 'mining licence' issued or given under a law of the Commonwealth or a State or Territory.
1206 Whatever kind of authority or permission is given must still meet the definition of a 'mining lease' in s 245, and whether it meets that definition will be determined by the activities it authorises. To fall within the extended definition of a mining 'lease', there must be permission for the lessee to 'use the land or waters … solely or primarily for mining'.
1207 Despite the definition given to the verb 'mine' in s 253, in my opinion the NT Act defines a mining lease more narrowly, even taking into account s 242(2). It looks to the use of the land, and requires that the land be used 'solely' or 'primarily' for mining. There is no evidence that the exploration licences in question permitted the licensee to use the land or waters they covered 'solely' or 'primarily' for mining.
1208 Accordingly, I reject the State's submissions that the identified exploration licences which cover all or parts of the parcels said by the applicant to be subject to s 47B fall within s 47B(1)(b)(i). The existence of the exploration licences does not render s 47B(2) inapplicable.
1209 In Banjima (No 2) [2013] FCA 868; 305 ALR 1, the submissions put to Barker J by the State were that mining exploration licences fell within s 47B(1)(b)(ii) and for that reason s 47B(2) could not apply to areas covered by such exploration licences. After an examination of the authorities and, with respect, detailed consideration, Barker J rejected that argument: see [1208].
1210 I infer the State did not press the same argument in this case because of Barker J's finding in Banjima (No 2), which was affirmed on appeal: see Banjima [2015] FCAFC 84; 231 FCR 456 at [115]-[118].
29 In its supplementary submissions, the State accepts that, as a matter of construction, the issues considered in Narrier, while not dealing with petroleum permits under the PGERA, are substantially the same as those here. I agree.
30 However, the State maintains the submissions it has previously made and submits that I should not follow the decision of Mortimer J on the basis that her Honour clearly erred in making her finding.
31 As to error, the State submits:
That her Honour erred in finding that, despite the definition given to the verb "mine" in s 253 (which includes "explore or prospect for things that may be mined") and despite s 242(2), the NTA nevertheless defines a mining lease more narrowly.
In particular, her Honour made reference to the fact that s 245(1) refers to land being used "solely or primarily for mining" and considered there was an absence of evidence to establish that the relevant exploration licence before her permitted the licensee to use the land or waters covered by the licence "solely" or "primarily" for mining.
32 The State submits that her Honour's reasons are apt to be understood in two ways:
(1) that "mining" has a distinct and narrower meaning than the term "mine", so that where a mining authority permits (only) exploration it will never be an authority permitting "mining" (the construction issue); or
(2) that a mining authority which permits (only) exploration may be an authority permitting "mining", but it will be a question of fact and evidence as to what the authority permits (the evidentiary issue).
33 The State says that in Narrier the question of whether there was a distinction between the meanings of "mining" and "mine" was not raised by any party before her Honour so that, in that regard, her Honour had no assistance from the parties in reaching the particular conclusion(s) that she did.
34 The State says the issue before her Honour was, similarly to these proceedings, whether or not s 47B(1)(b)(i) of the NTA applied to "mining leases" that were authorities granted for the purposes of exploration.
35 The State makes further submissions about how the expressions "mining" and "mine" affect the constructional issue in this case.
36 It also makes submissions about what it calls the evidentiary issue, namely, a finding, as a matter of fact, that there was no evidence that the exploration licences permitted the use of the licence area "solely" or "primarily" for mining.
37 The applicant, in its supplementary submission, makes two further points by reference to Narrier.
38 First, that the reasoning in Narrier at [1200]-[1207] holds that:
(1) despite the definition of the verb "mine" in s 253 of the NTA, including explore or prospect, a mining lease as defined in s 245 looks to use of the land for mining in a narrower sense, that is, the recovery of minerals: first two sentences of [1207];
(2) the exploration licence did not permit the licensee to use the land and waters covered by the licence "solely or primarily" for mining, whether or not, or assuming that, the word "mining" in mining lease is to be read in an extended sense to include exploration: second and third sentences of [1207].
39 The applicant submits that the reasoning has equal application to a petroleum exploration permit granted under the PGERA, with the result that the first proposition in Narrier applies because a petroleum exploration permit authorises the permittee only to explore for petroleum (s 29 and s 38 of the PGERA) and not to recover (mine) petroleum, which can be done only under a production licence (s 49 and s 62 of the PGERA).
40 The second proposition in Narrier applies, the applicant submits, because a permit does not permit the permittee to use the permit area solely or primarily for mining petroleum (assuming the word "mining" in "mining lease" is to be read in an extended sense to include "explore"). The permit conditions requiring further approval before exploration can be carried out, and/or the status of the land as unallocated Crown land available for other uses, means that a permittee is not permitted to use the permit area solely or primarily for mining (exploration).
41 The applicant further submits that, in Narrier, Mortimer J observed that the purpose of s 242(1) of the NTA is to indicate what kinds of transactions are to be comprehended by the term lease which will inform the meaning of the word in the more specific definitions of particular kinds of leases that follow (ss 245-249B), and that the purpose of s 242(2) is to give an extended operation of the term lease only in the case of a mining lease: Narrier at [1204]-[1205]. That is consistent, the applicant submits, with its submissions in this case that the text of s 242(2) is clear in that it is only in the case of a reference to a "mining lease" that s 242(2) is engaged. The definition in s 242(2) is not engaged in relation to s 47B(1)(b)(i) because s 47B(1)(b)(i) refers only to a lease; it does not refer to a mining lease.
42 The applicant submits this textual reading of s 242(2), that the extended definition of mining lease to include a licence or authority is not engaged in relation to s 47B(1)(b)(i) because (i) refers only to a lease, is consistent with the context in which para (b) of subs (1) operates in defining when land is not vacant Crown land. Conferral of a statutory right to mine might be described in the NTA as a lease, but is not a lease of land. And Crown land covered by a statutory right to mine is or remains vacant (or unallocated or unalienated) Crown land. The applicant submits this context confirms the textual reading of s 242(2) as being engaged only when there is a reference in the NTA to a mining lease, and not when there is a reference only to a lease. Thus Mortimer J was right to observe in Narrier, at [1200], that the State's contention that a licence or permit to explore for minerals is a lease within s 47B(1)(b)(i) "distorts [that] exclusion, and does not give effect to the text of s 242(2)". So, a statutory right to mine might be described in the empowering statute as a lease, and fall within the definition of lease in s 242(1)(c), but the context of s 47B reveals a contrary intention that such a thing is not a lease for the purposes of s 47B(1). Further, the instruments in issue are not even described as a lease.
43 The State contends there are several difficulties with the applicant's supplementary submissions. It notes that the definition of "mining lease" in s 245(1) provides:
A mining lease is a lease (other than an agricultural lease, a pastoral lease or a residential lease) that permits the lessee to use the land or waters covered by the lease solely or primarily for mining.
44 Therefore, it submits, it is only licences and authorities under the PGERA that are "solely or primarily for mining" (as defined in s 253 of the NTA) that fall within the expanded definition of "mining lease" in s 242(2).
45 As to the applicant's submissions that the definition of "lease" in s 242(2) applies only where a provision in the NTA makes specific reference to a "mining lease", the State contends there are several difficulties with that submission too. First, if that was the intention, the expanded definition should have been included as a subsection to s 245 of the NTA (which defines "mining lease"), not as a subsection to s 242 (which defines "lease"). The applicant's submission is to the effect that the Court is to construe s 242(2) as somehow detached from the remainder of s 242. In the State's submission it is plain, when one reads s 242 as a whole, that s 242(2) flows on from, and is intended to deal with, the same subject matter as s 242(1), particularly given the terms of s 242(1)(c), which provides for "anything that ... is … declared to be or described as a lease" to be a "lease".
46 Secondly, the State says such a construction would not accord with Div 3 of Pt 15 of the NTA. Relevant provisions in that Division can only logically be read as meaning that a reference to "lease" includes reference to a "mining lease". Section 241 provides that Division 3 contains definitions "relating to leases". Section 243, which defines "lessee", includes s 243(2), which refers to "a lease that is a mining lease". Section 245, which within Division 3 defines "mining lease", commences "[a] mining lease is a lease ...".
47 Thirdly, the State says, it is plain from the context of the NTA, as a whole, that it is intended that the term "lease" is to be read as including a mining lease. The State says there are only a very limited number of places in the NTA where the term "lease" is used without qualification. Section 47B(l)(b)(i) is one instance. Section 44H uses the term "lease" in a global way. It is not restricted to a particular type or classification of a "lease". Another instance is s 24IC, which deals with "Future acts that are permissible lease etc. renewals". It is apparent from s 24IC(l)(e) that "lease" in s 24IC includes leases which permit mining (that is, mining leases). This is confirmed by s 24IC(4)(c). Section 24IC has been found to apply to mining leases granted pursuant to the Mining Act. In contrast, in other sections of the NTA, mining leases are specifically excluded from those classes or kinds of lease which are affected by a particular provision. That is not to alter the definition of "lease", but rather to identify which particular category or kind of lease is relevant in a particular instance. For example, s 21(3) (which deals with the validation of "intermediate period acts") refers to "a grant of a freehold estate or a lease (other than a mining lease)". This specific exclusion of mining lease from certain treatments of "leases" is replicated at ss: 23B(2)(c)(viii); 43A(2)(a)(i); 230(b) (which defines a "category B past act" as "a past act consisting of the grant of a lease where ... the lease is not a mining lease"); 232B(3)(g); and 232C(b). Each of these provisions only makes logical sense if the term "lease" otherwise includes a mining lease. That is, the specific exclusion of mining leases on these occasions where the term "lease" is used can only be necessary because "lease" otherwise includes mining leases.
48 The State submits that if mining leases were similarly meant to be excluded from the treatment of a "lease" under s 47B, then the same form of words would have been used as had been used in numerous other provisions. But to the contrary, the same wording as included at s 24IC and s 44H was adopted and enacted. Thus, as a matter of construction and interpretation, having regard to the explanatory memoranda, that drafting and its consequence was intentional.
49 The State also observes that in other sections of the NTA, specific categories of lease are referred to, for example in s 229(3)(a), which provides that:
A past act consisting of the grant of:
a) a commercial lease, an agricultural lease, a pastoral lease or a residential lease;
50 The State says such specific usage is replicated in s 23B(2)(c)(iii), (iv), (v) and (vi).
51 The difficulty with the applicant's argument, the State says, is apt to be demonstrated in that the applicant does not contend that any mining lease is excluded from s 47B(l)(b)(i). Rather, it is any mining lease that is not described by relevant State Acts as a "lease". Those "State leases" are included in s 47B(l)(b)(i) because, according to the applicant, s 242(1)(c) provides as much. Instruments of the kind as relevant here are not "leases" because, seemingly, they are not described as "leases" by State legislation.
52 What is not explained by the applicant, the State contends, is why s 242(1)(c) does not apply with equal force to all mining leases as they are defined and characterised by the NTA. It is entirely irreconcilable that s 242(2) of the NTA, being a Commonwealth law which defines a mining lease to include, relevantly, instruments of the kind considered here, is not apt to enliven the operation of s 242(1)(c). In order for the applicant's argument to succeed, that is a necessary finding to be made. Such a construction disregards s 242(2) and, critically, s 242(1)(c).
53 Notwithstanding the carefully constructed submissions of the State, I consider that the analysis provided by Mortimer J in Narrier is not clearly wrong, that it is applicable to the present construction issue before me, and that I should apply it, with the result that neither of the petroleum exploration permits in issue before me constitutes a "lease" for the purposes of s 47B(1)(b)(i).
54 In the result, the question is one of construction having regard to text, context and purpose of the statutory provision and not one to be resolved by reference to broader conceptual or policy issues that may be thought to underlie it.
55 I agree with the analysis provided by her Honour in Narrier and the conclusion that her Honour arrived at, and expressed at [1200], that to accept the State's submission would distort the exclusion in s 47B(1)(b)(i) and not give effect to the text of s 242(2).
56 In my view, it is plain from all the materials that the State relies upon, including the Supplementary Explanatory Memorandum, that it is only licenses or authorities under State and Territory legislation that give similar rights to mining leases that will be relevant. In that regard, the licences or authorities in question must, as provided for by s 245 of the NTA, license or authorise the use of land or waters "solely or primarily for mining". It is not open, in that context, to conclude that mining means exploration.
57 To the extent that there is any ambiguity in the legislative text in that regard, it should be resolved in favour of the result that s 47B is to apply unless it is clear that the Parliament has excluded the operation of the provision.
58 In my view, for the reasons that Mortimer J has given in Narrier, the Parliament has, at the least, left the question of the exclusion of s 47B in the case of licences and authorities to explore, but not actually to mine minerals or produce petroleum, ambiguous.
59 I find, therefore, in relation to the first separate question arising, that the exploration permits in question in this case, being for exploration only, do not constitute mining leases in the manner described in the NTA and so, in each case, the permit is not a "lease" for the purposes of s 47B(1)(b)(i). As a result, s 47B applies to this application.