What it does
The Coal Acquisition Act 1981 effects a sweeping transfer of property rights in coal resources across New South Wales. At its core, s 5(1) provides that all coal—defined in s 3 by reference to the Mining Act 1992 as coal in a natural state on or below the surface of land within the State's legislative power—that would otherwise be vested in any instrumentality or agency of the Crown or any private person is vested in the Crown. This vesting occurs "freed and discharged from all trusts, leases, licences, obligations, estates, interests and contracts".
The Act operates notwithstanding any other legislation, any grant, lease, licence or instrument of title, or any other document, whether made before or after the appointed day (s 4). This supremacy clause ensures the vesting is not frustrated by pre-existing legal arrangements. Subsection 5(4) expressly prevails over s 42 of the Real Property Act 1900, preventing any Torrens title indefeasibility arguments from protecting prior interests.
Exceptions and qualifications have been layered onto this core mechanism. Section 5(2) excludes coal granted under the Coal Ownership (Restitution) Act 1990. However, s 5B(1)–(2), inserted in 1997, empowers the Minister to acquire such restituted coal on behalf of the Crown by contract or other arrangement. The original s 5(3) clarifies that the reference to "leases" in the vesting provision never included coal leases under the now-repealed Coal Mining Act 1973, preserving certain historical tenures from automatic extinguishment.
Compensation is not a default consequence. Section 6(2) states that, except in cases and to the extent determined under arrangements made by the Governor under s 6(1), no compensation is payable as a result of the operation of s 5 or (formerly) s 5A. The Governor's arrangements may differentiate between claimants, capping payments for specified persons or classes irrespective of coal volume owned (s 6(3)). These arrangements can also authorise summonses for evidence, provision for evidence on oath, and mechanisms for determining consideration payable under s 5B acquisitions (s 6(4)–(5)).