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[2013] NSWLEC 1063
Land and Environment Court (NSW)
2013-04-10
Original judgment source is linked above.
Judgment 1SENIOR COMMISSIONER: "Muttabun" is a grazing property located some distance to the south west of the village of Lightning Ridge. It comprises a number of Western Lands Leases. Since 1981, Mr and Mrs Slack Smith have owned "Muttabun". Of the Western Lands Leases that comprise "Muttabun", one of them, WLL308, has, amongst a range of opal mining related elements located on it, a bore that was sunk by the Lightning Ridge Miners Association (the Association) in late 1996. The land upon which the bore is located is the subject of Mining Lease Application 361, an application for a mining lease that gives rise to the issues encompassed in these proceedings. 2A little needs to be said about the bore and its location in order to provide further details of the context of the matters requiring determination by me. 3On 16 May 1996, Blue Fame Pty Limited, a company owned by Mr Slack Smith, was granted a Mineral Claim over an area comprising a small portion of WLL308. The claim, Mineral Claim 38516 (the mineral claim), comprises an area of approximately 2500 m². Several months later, as a result of negotiations between the Association and Mr Slack Smith, the mineral claim was transferred from Mr Slack Smith to the Association. At that time, a deed was entered into by Mr Slack Smith and the Association that permitted, inter alia:
The Court's jurisdiction 18As earlier noted, if there is a dispute about whether or not s 62(1)(a), (b) or (c) applies in a particular case, s 62(6A) permits a party to apply to the Land and Environment Court for a determination of the matter. 19Although s 293(1)(w) of the Mining Act only nominates, inter alia, disputes relating to s 62(1)(a) and (b) as specifically being within the jurisdiction of the Court, I am satisfied that s 293(1)(x) brings disputes relating to s 62(1)(c) within the Court's jurisdiction. The terms of sch 1 cl 23A(5) of the Mining Act reinforces this opinion.
The matters to be determined 20Before turning to describe the aspect of the land subject to Mining Lease Application 361 that is the subject of the dispute, it is appropriate to enunciate, with precision, what are the matters requiring to be determined in these proceedings. Two matters require such determination. They can be stated simply in the following terms:
The contended "significant improvement" 24Running north/south along the western boundary of the mineral claim and the coincident mining lease application area is an internal fence line within "Muttabun". A survey prepared by a registered surveyor for the purposes of Mining Lease Application 361 shows that the fence is 10 cm to the west and clear of the boundary of the Mining Lease Application 361 area. The element of the Association's application for a determination concerning the fence was not pressed after Mr Hetherington conceded that it was not on the Mining Lease Application 361 area and thus could not attract concern under s 62(1)(c) of the Mining Act. 25Inside the fence, generally parallel to it and traversing the Mining Lease Application 361 area but extending beyond it (to both north and south), is a cleared ground feature that has obviously been created by human activity. A photograph of a portion of that, within the Mining Lease Application 361 area, was taken during the course of the site inspection and subsequently tendered. That photo, looking to the north, is reproduced below:
The May 1996 position 26It is first necessary to consider whether or not that which is depicted in the photograph was, for the purposes of s 62(4), in existence in a fashion that would have it regarded as being a "significant improvement" as at the relevant May 1996 date. 27On this question, there is a significant conflict in the evidence. Ms O'Brien, the Secretary/Manager of the Association (who held that position as at the relevant date in 1996) gave oral evidence that the nature of that which was seen during the site inspection was similar to that which had been at the location in 1996. She said that it has always been very similar to what it is now. She described that which was observed during the course of the site inspection as being "a rough bush track". 28On the other hand, Mr Slack Smith gave evidence concerning the state of that which is depicted in the photograph as being very different in 1996. He did so in the context of a range of works undertaken by him over a period of time after he and his wife purchased "Muttabun". His evidence of the relevant works and his consequent description of thee condition of the area in dispute were in the following terms:
The approach to be taken to the 1996 position 31If I were to conclude that the present state of the land does not constitute a "significant improvement" and I were to accept that Ms O'Brien's recollection that the position in 1996 was comparable, then there would have been no relevant "significant improvement" as at the relevant date and thus the proceedings would be rendered futile. Such an approach has an unattractive element of circularity to it. 32If I were to conclude that there was a higher standard of improvement, consistent with Mr Slack Smith's evidence, at the relevant date in May 1996 and that this constituted a "significant improvement" at that date, the barrier in s 62(4) would be overcome and I could proceed to assess the current position on its merits 33Both Ms O'Brien and Mr Slack Smith were forthright and clear in their evidence on the state of the disputed land at the relevant date in May 1996. There was nothing arising out of their evidence that could cause me to prefer the recollection of one over the recollection of the other. There is no photographic evidence in these proceedings that provides any assistance. 34I do not understand that Mr Moore contested the proposition that those current works (identified by Mr Slack Smith as being relevantly comparable to those on the disputed land in May 1996) did not constitute a "valuable work" and thus would have been a "significant improvement" if present in 1996 on the disputed land. 35As a consequence, I have concluded that the appropriate course to follow is to the take the case for the landholders at its highest and to proceed on the basis that, for the purposes of analysis of the present position, the standard of work as at the relevant date in 1996 was that described by Mr Slack Smith as being equivalent to the firebreak identified in the photograph above and thus s 62(4) does pose any barrier to my initial consideration of the present position.
The context of the present dispute 36To understand the context in which the landholders contend that the identified area of land should now be regarded as a "significant improvement", it is necessary to recite a little of the land management framework within which the Slack Smiths operate "Muttabun". As earlier noted, the Slack Smiths purchased the property in 1981. In 1988, Mr Slack Smith circulated, to a number of government departments and instrumentalities, a document entitled "Muttabun Development Programme". A copy of this document was tendered. It sets out, in broad terms, the management strategy proposed to be adopted for the future as being: To develop "Muttabun" into an efficient and profitable wool growing and sheep breeding enterprise. 37Relevant to understanding matters in these proceedings, the "Muttabun Development Programme" dealt with fencing as a topic, setting out some notes concerning fencing accompanied by a diagram that showed the external and internal fence lines on "Muttabun" at the time of preparation of this development program. The section dealing with fencing was in the following terms:
The approach to the statutory framework 57In his closing submissions, Mr Hetherington took me to a 1992 decision of the (then) Chief Mining Warden, proceedings which also involved Mr Slack Smith. Relevantly to the process that I am undertaking, the Chief Mining Warden said: A road or track may be constructed by means of building up, grading or by general usage and whether or not a particular road or track or other feature comes within the category of being a valuable improvement will depend on evidence as to its nature and use. 58Although the terms of the legislation at the time of this decision were different and the concept of a "significant improvement" in the present statutory framework is defined in the current legislation, the current statutory process required by s 62(6A) clearly continues to remain one of an assessment of fact and degree in the circumstances of the particular work about the status of which there is a dispute. 59It is, perhaps at the risk of being unnecessarily repetitive, appropriate to quote again the relevant definition from the Dictionary in the Mining Act: Significant improvement means any substantial building, dam, reservoir, contour bank, graded bank, levee, water disposal area, soil conservation work or other valuable work or structure.
Applying the statutory framework to the present circumstances 60I have commenced this analysis by assuming that, for the purposes of s 62(1)(c) of the Mining Act, the element of the Mining Lease Application 361 land that is the subject of these proceedings was, at the relevant date in May 1996, a "significant improvement". I have done so on the basis of Mr Slack Smith's evidence to enable me to undertake an assessment of the landholders' position at its highest. Doing so does not require my adoption that that was, in realty, the position at 1996, but merely making that assumption (as this is necessary to invoke the requirement that I consider whether or not that which is in dispute constitutes a "significant improvement" at the present time). 61Although in a differently framed statutory context but with the essential wording elements being identical, the Court of Appeal considered, in Kayuga Coal Pty Limited v John Earl Ducey & 4 Ors [2000] NSWCA 54, the framework of words requiring consideration in these proceedings. A number of general propositions relevant to my consideration arise from the leading judgment of Meagher JA. Consistent the process endorsed Kayuga Coal, I adopt the following as relevant to this dispute:
Matters determining the status of the presently disputed element 64Adopting, for the purpose of this consideration, Mr Slack Smith's description of the 1996 situation and my observation during travel to the dispute's site of firebreaks of the type to which he drew attention and in the photographs he had taken and were in evidence, there are a number of significant areas of difference between what he describes as the 1996 position and that observed during the site inspection. The significant areas of difference may be summarised from the evidence and the site inspection as follows:
Conclusion 65In truth, Ms O'Brien's description of what we observed on site - that the disputed element is a "rough bush track" is the correct description of the relevant feature located on the land. Such a rough bush track cannot, in the context of the present site, be regarded as being an "other valuable work" as at April 2013. Its state is such that it cannot serve any reasonable purpose as an access track in light of the availability of the well-maintained track a short distance to the east. Its state is also such that it cannot serve any necessary purpose as an firebreak in light of the adoption by Mr Slack Smith of the well-maintained track a short distance to the east as the feature upon which he relies for that purpose. 66Although that which was present in 1996 may have constituted a "significant improvement" at that time, I am unable to conclude that the nature of that which presently exists to the east of the fence located immediately to the west of the western boundary of Mining Lease Application 361 could now be regarded as a "significant improvement". 67I am fortified in this conclusion (based on the evidence and observations during the site inspection and at the subsequent hearing) by the fact that, during the course of his evidence, Mr Lehman was not invited to (and did not volunteer) that he ascribed any value to the disputed land in circumstances were he was giving evidence concerning the value and desirability of firebreaks in the vicinity of fence lines for the purposes of both fire spread prevention and the protection of the valuable assets embodied in the fence itself.
Costs 68In its originating Summons, the Association sought an order that the landholders pay the Associations' costs. 69As the Chief Judge's delegation to me is pursuant to s 42 (and not s 36) of the Land and Environment Court Act 1979, I have and may exercise the functions of the Court. The exclusion contained in R3.10 of the Land and Environment Court Rules 2007 (the Rules) preventing Commissioners from making general costs orders for matters in Classes 1, 2 and 3 does not apply to proceedings in Class 8and I am vested with the general costs ordering power under s 98 of the Civil Procedure Act 2005. 70As the restrictions in R 3.7 of the Rules on making costs orders does not apply to Class 8 proceedings, R 42.1 of the Uniform Civil Procedure Rules 2005 creates the presumption that costs follow the event. 71As there was no detailed argument about costs during the hearing, I propose to order that the respondents pay the applicant's cost as agreed or assessed unless, within 14 days of the date of the orders below, the respondents lodge a notice in writing with the Court, addressed to me, that the wish to be heard as to why there is some reason that some other costs order should be made.
Orders (1)Pursuant to s 62(6A) of the Mining Act 1992, I determine that the cleared area on Mining Lease Application 361 is not a "significant improvement" for the purposes of s 62(1)(c) of that Act; and (2)The respondents are to pay the applicant's costs as agreed or assessed unless, within 14 days of the date of these orders, the respondents lodge notice in writing with the Court that the respondents wish to be heard as to why some other costs order should be made.
Return of exhibits The exhibits, other than Exhibits A, B and 5, are returned. Tim Moore Senior Commissioner
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated. Decision last updated: 17 April 2013
Lightning Ridge Miners Association Limited
Slack-Smith & Anor