Lightning Ridge Miners Association Limited v Slack-Smith & Anor
[2013] NSWLEC 1063
At a glance
Source factsCourt
Land and Environment Court (NSW)
Decision date
2013-04-10
Source
Original judgment source is linked above.
Judgment (15 paragraphs)
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 sinking of a bore;
- the construction of associated headworks facilities on the mineral claim; and
- use of the bore to supply water to four ground tanks located on "Muttabun". 4The water so supplied to the ground tanks was to be available for use by opal miners for puddling (the process of washing potentially mineralised rock to remove the clay soils within which it is located). The water so supplied was also available to Mr Slack Smith to be used for stock watering purposes. 5Mineral Claims have a tenure for one year but are renewable. The Association has consistently renewed the mineral claim since it was transferred to it and the mineral claim currently remains in effect. 6To allow all these activities to take place, the Association obtained a bore licence from the relevant water licensing authority. It current holds what is now called a water allocation to permit use of water from the bore. 7Later in 1996, the bore was sunk and the appropriate headworks were erected on a slab around the bore head. A protective security cage was erected and piping installed to carry the water to the designated ground tanks. 8At the commencement of the proceedings, I inspected the bore and the area of the mineral claim. A photograph of the present bore and associated headworks is reproduced below: 9On the way to the bore site, I was also shown a range of other facilities on "Muttabun" (including a number of fence lines with adjacent firebreaks and roads that were independent of those fence lines). 10Sometime in the recent past, the Association determined to apply for a mining lease over an area of land identical to that encompassed by the mineral claim. To seek to effect this, Mining Lease Application 361 was lodged in mid 2010 and, later that year, the nominated purpose for which the lease was sought was amended by letter from the Association to describe the mining purpose to be in accordance with the form of words used in the Mining Act 1992 (the Mining Act): The maintenance and use (in connection with mining operations) of a pipeline, and the maintenance and use (in connection with mining operations) of a drill hole for the conveyance of water. 11S 62 of the Mining Act places a number of restrictions on the granting of mining leases. Relevantly for these proceedings is the element in s 62(1)(c) relating to "significant improvements". That provision is in the following terms: 62 Dwelling-houses, gardens and significant improvements (1) A mining lease may not be granted over the surface of any land: (a) ................., or (b) ................., or (c) on which is situated anything that is taken to be a significant improvement under clause 23A of Schedule 1, except with the written consent of the owner of the dwelling-house, garden or improvement (and, in the case of the dwelling-house, the written consent of its occupant). 12The section also requires, in order that the above provision is triggered, that the significant improvement must have been in existence at the relevant date [s62(4)]. 13The relevant date is derived by application of the appropriate element of s62(5). In this case, as the application for the mining lease is made by the holder of a mineral claim over the same land, the relevant date is that set by s62(5)(d) - namely, the date on which the mineral claim was granted. In this instance, as earlier noted, the original mineral claim was granted on 16 May 1996. 14In this case, Mr and Mrs Slack Smith have not given their consent to Mining Lease Application 361 being granted and they claim, as provided for by cl 23A of Schedule 1 to the Mining Act that their consent is required as there is what they consider to be a "significant improvement" located on the land. 15The provisions of cl 23A are in the following terms: 23A Identification of significant improvements (1) A landholder of land to which an invitation for tenders will relate, or over which a mining Lease is sought, may make a claim to the Minister that something on the land is a significant improvement. (2) A claim must be in writing, identifying the nature and location of the improvement, and must be lodged with the Director-General on or before the date specified in the relevant notice under clause 21. (3) In the case of a claim relating to an application for a mining Lease, the Director-General must cause notice of the claim to be given to the applicant for the Lease. (4) An applicant for a mining Lease may give notice to the Director-General of an application to the Land and Environment Court for a determination in relation to the claim. (5) Anything identified in a claim as being a significant improvement is taken to be a significant improvement for the purposes of section 62 unless the Land and Environment Court finds that it is not a significant improvement in an application made under section 62 (6A). 16Mr and Mrs Slack Smith have made a claim to the Minister that there is a "significant improvement" on the land subject to Mining Lease Application 361. That claim having been made, the Association does not accept that there is any such "significant improvement" on the relevant land and has exercised its right pursuant to s 62(6A) to apply to the Court for a determination of the matter. 17To complete the description of the framework giving rise to these proceedings, it is to be noted that the term "significant improvement" is defined in the dictionary to the Mining Act in the following terms: 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.