Transcript Land Access OPPORTUNITIES FOR THE INDUSTRY TO IMPROVE THE WAY IT’S DONE. MARCH 2012
Slide 1
Land Access
OPPORTUNITIES FOR THE INDUSTRY TO IMPROVE
THE WAY IT’S DONE.
MARCH 2012
Slide 2
Overview
About Maloney Field Services
Importance of Land Access
Training and Competency
Compensation
General areas of improvement
Conclusion
Slide 3
About Maloney Field Services
National land access and valuation consultancy
Established 1970
Offices – Adelaide, Brisbane, Newcastle
Specialist services in land access and valuation
Slide 4
Specialist Services
Management of Land and Easement Acquisition Programs
Land Access Negotiations
Landholder Liaison & Consultation
Land Access Training
Easement & Site Purchase Negotiations
Preparation of Land Access/Acquisition Budgets
Land Access Strategy
Valuations & Assessments of Compensation
Slide 5
Clients
Slide 6
Why is Land Access so
Important NOW?
Energy exports - $24b (2004) - $69b
World’s largest coal exporter
World’s third largest uranium producer
Top five producer of aluminium, zinc, lead,
nickel, gold and silver
World’s biggest LNG exporter by 2020?
Slide 7
Why is Land Access so
Important Now contd…?
Demand never been greater
More exploration than ever before
More land affected
Closer to communities
More intensive land uses
Massive impact
Equals greater access to land
Slide 8
Why is Land Access so
Important Now contd…?
Landholders are well organised and well informed
Landholders are aware of rights and more legislatively aware
Stronger voice
Stronger landholder advocates
Slide 9
Land Access Consultants
The “face” of major resource projects
Link between landholders and resource companies
Responsible for delivery of information
Very important job
Slide 10
What Qualifications?
Driver’s licence, heartbeat and breathing
The “good bloke” syndrome
Codes – bare minimum requirement - not enough
Slide 11
American Association of
Professional Landmen?
Mission – AAPL’s mission is “to promote the highest standards of
performance for all land professionals to advance their stature and to
encourage sound stewardship of energy and mineral resources”
Professional Development
Code of Ethics and Standards of Practice
Slide 12
Training
More rigorous training
National accreditation?
Consolidate training programs
Slide 13
Compensation
So you want to buy my farm he said
You’d buy my farm said he
Well, how do you value the light and shade?
What is the price for the dream I have made?
And how would you buy on size or grade the children who shouts you
hear?
You haven’t the money to buy he said
This bit of farm said he
You haven’t the money to buy the worth of the joy and prayer of the death
and birth
The power that blesses the fruitful earth and the love that made it dear
1984; Squire L Speedy – NZ Institute of Valuers
Slide 14
Reinstatement Principle
“The outstanding principle of compensation for the taking of property is that the
dispossessed owner, as far as money can provide must be put in a position
equal to that which he would have held if the land had not been taken”
RO Rost and HG Collins – Land Valuation and Compensation Australia, Australian Institute of Valuer’s 1984
Slide 15
Issues
Valuation based approach
Standard formulae linked to number of wells – not suitable
Recognise that each property is different
Recognise that impact on each property is different
Slide 16
Definition of Compensation
Under the Petroleum and Gas (Production and Safety) Act 2004;
Deprivation of possession of surface of the land;
Diminution of land value;
Diminution of use of land and improvements;
Severance of any part of the land; and
Any cost or loss incurred from the conduct of the relevant activities.
Slide 17
Deprivation of Possession
of the Surface of the Land
Value of the actual portion of land taken up
Value adopted should reflect utility value of that specific parcel
Standard Valuation principles apply
Market comparison approach typically used
Slide 18
Diminution of Land Value
Reduction in value of property due to project existing
Could include effects of impact due to:
•
Noise or dust impact of project on dwelling
•
Long term changes to overland water flows, drainage
•
Ongoing increased risk to safety of landholder, employees, family members
Justifiable based on precedent, market evidence and expert assessment
“Would the property sell for less under normal market
conditions as a result of the project existing?”
Slide 19
Diminution of Use of Land
and Improvements
(Including reduced use that could be made through any improvements to it)
Long term/permanent in nature
Examples include (not severance, but reduced utility):
–
Inability to operate irrigation equipment/processes
–
Inability to utilise broad acre cropping machinery
–
Inability to blade plough or deep cultivate
Slide 20
Severance
“Loss in value of land owned by the landholder caused by it being severed from
other land owned by the landholder”
Relates to loss of access and ability to utilise as before due to
it being severed from other land
Road ways, tracks, rail corridors, above ground pipelines
Loss can be determined using:
–
“Before and After” method
–
“Piecemeal” method
Before and After Method requires relevant market evidence to
support “after value”
Slide 21
Costs
“Accounting, legal or valuation costs reasonably incurred by the landholder to
negotiate or prepare a Conduct and Compensation Agreement”
Excludes costs of Alternate Dispute Resolution (ADR)
Reasonably incurred
Level of costs should reasonable
Beware the unqualified advisor!!
Slide 22
Damages
“Damages incurred by the landholder as a consequence of matters mentioned
above”
For example:
Damage to tracks, fences, gates, stock grids
Interruption to water, power, utilities and associated losses
Injury to employees, family members
Loss of livestock through injury, escape (gates left open)
Production losses – Short Term
–
Cropped areas
–
Livestock carrying capacity/yields
Slide 23
Who Should Undertake
Compensation Assessments?
Land Access Code prescribes appropriate induction and training for
representatives
Qualifications for Assessing Compensation not defined
Registered Valuers recognised by Courts and Legislation as qualified
experts in assessing compensation
Compensatable effects relate to impact on Property Value
Registered Valuers with relevant experience
Slide 24
Property Specific
Assessment
Compensation to be assessed based on specific characteristics of individual
property and agricultural enterprise
No two properties are identical
No two agricultural enterprises are identical
No two impacts are identical
Generic assessment models or matrices problematic
Property Specific Assessment vs “One Size Fits All”
Slide 25
Assessment and
Engagement
Be prepared
Know the market and the locality
Provide detailed project information and plans
Take time to understand the enterprise
Discuss methodology
Consultation and engagement WORKS not models!
Determine Extent of Project Impact through Consultation
Slide 26
General Improvements
Early Involvement
Still an after thought
Consultation often too late
First impression
Planning and accurate budgeting
Slide 27
General Improvements contd….
Engagement
Genuine
Regular
Thorough
Effective
Transparency
Slide 28
General Improvements contd….
Deliver documents or letters
Notes and records
Better plans, maps, photo’s
Empower Land Access Consultants
Avoid overly “legalistic” documentation
One point of contact - consistency
Slide 29
Conclusion
Land Access is essential
Challenging role
Improving however more improvement needed
Slide 30
Jamahl Waddington
0402 148 160
Land Access
OPPORTUNITIES FOR THE INDUSTRY TO IMPROVE
THE WAY IT’S DONE.
MARCH 2012
Slide 2
Overview
About Maloney Field Services
Importance of Land Access
Training and Competency
Compensation
General areas of improvement
Conclusion
Slide 3
About Maloney Field Services
National land access and valuation consultancy
Established 1970
Offices – Adelaide, Brisbane, Newcastle
Specialist services in land access and valuation
Slide 4
Specialist Services
Management of Land and Easement Acquisition Programs
Land Access Negotiations
Landholder Liaison & Consultation
Land Access Training
Easement & Site Purchase Negotiations
Preparation of Land Access/Acquisition Budgets
Land Access Strategy
Valuations & Assessments of Compensation
Slide 5
Clients
Slide 6
Why is Land Access so
Important NOW?
Energy exports - $24b (2004) - $69b
World’s largest coal exporter
World’s third largest uranium producer
Top five producer of aluminium, zinc, lead,
nickel, gold and silver
World’s biggest LNG exporter by 2020?
Slide 7
Why is Land Access so
Important Now contd…?
Demand never been greater
More exploration than ever before
More land affected
Closer to communities
More intensive land uses
Massive impact
Equals greater access to land
Slide 8
Why is Land Access so
Important Now contd…?
Landholders are well organised and well informed
Landholders are aware of rights and more legislatively aware
Stronger voice
Stronger landholder advocates
Slide 9
Land Access Consultants
The “face” of major resource projects
Link between landholders and resource companies
Responsible for delivery of information
Very important job
Slide 10
What Qualifications?
Driver’s licence, heartbeat and breathing
The “good bloke” syndrome
Codes – bare minimum requirement - not enough
Slide 11
American Association of
Professional Landmen?
Mission – AAPL’s mission is “to promote the highest standards of
performance for all land professionals to advance their stature and to
encourage sound stewardship of energy and mineral resources”
Professional Development
Code of Ethics and Standards of Practice
Slide 12
Training
More rigorous training
National accreditation?
Consolidate training programs
Slide 13
Compensation
So you want to buy my farm he said
You’d buy my farm said he
Well, how do you value the light and shade?
What is the price for the dream I have made?
And how would you buy on size or grade the children who shouts you
hear?
You haven’t the money to buy he said
This bit of farm said he
You haven’t the money to buy the worth of the joy and prayer of the death
and birth
The power that blesses the fruitful earth and the love that made it dear
1984; Squire L Speedy – NZ Institute of Valuers
Slide 14
Reinstatement Principle
“The outstanding principle of compensation for the taking of property is that the
dispossessed owner, as far as money can provide must be put in a position
equal to that which he would have held if the land had not been taken”
RO Rost and HG Collins – Land Valuation and Compensation Australia, Australian Institute of Valuer’s 1984
Slide 15
Issues
Valuation based approach
Standard formulae linked to number of wells – not suitable
Recognise that each property is different
Recognise that impact on each property is different
Slide 16
Definition of Compensation
Under the Petroleum and Gas (Production and Safety) Act 2004;
Deprivation of possession of surface of the land;
Diminution of land value;
Diminution of use of land and improvements;
Severance of any part of the land; and
Any cost or loss incurred from the conduct of the relevant activities.
Slide 17
Deprivation of Possession
of the Surface of the Land
Value of the actual portion of land taken up
Value adopted should reflect utility value of that specific parcel
Standard Valuation principles apply
Market comparison approach typically used
Slide 18
Diminution of Land Value
Reduction in value of property due to project existing
Could include effects of impact due to:
•
Noise or dust impact of project on dwelling
•
Long term changes to overland water flows, drainage
•
Ongoing increased risk to safety of landholder, employees, family members
Justifiable based on precedent, market evidence and expert assessment
“Would the property sell for less under normal market
conditions as a result of the project existing?”
Slide 19
Diminution of Use of Land
and Improvements
(Including reduced use that could be made through any improvements to it)
Long term/permanent in nature
Examples include (not severance, but reduced utility):
–
Inability to operate irrigation equipment/processes
–
Inability to utilise broad acre cropping machinery
–
Inability to blade plough or deep cultivate
Slide 20
Severance
“Loss in value of land owned by the landholder caused by it being severed from
other land owned by the landholder”
Relates to loss of access and ability to utilise as before due to
it being severed from other land
Road ways, tracks, rail corridors, above ground pipelines
Loss can be determined using:
–
“Before and After” method
–
“Piecemeal” method
Before and After Method requires relevant market evidence to
support “after value”
Slide 21
Costs
“Accounting, legal or valuation costs reasonably incurred by the landholder to
negotiate or prepare a Conduct and Compensation Agreement”
Excludes costs of Alternate Dispute Resolution (ADR)
Reasonably incurred
Level of costs should reasonable
Beware the unqualified advisor!!
Slide 22
Damages
“Damages incurred by the landholder as a consequence of matters mentioned
above”
For example:
Damage to tracks, fences, gates, stock grids
Interruption to water, power, utilities and associated losses
Injury to employees, family members
Loss of livestock through injury, escape (gates left open)
Production losses – Short Term
–
Cropped areas
–
Livestock carrying capacity/yields
Slide 23
Who Should Undertake
Compensation Assessments?
Land Access Code prescribes appropriate induction and training for
representatives
Qualifications for Assessing Compensation not defined
Registered Valuers recognised by Courts and Legislation as qualified
experts in assessing compensation
Compensatable effects relate to impact on Property Value
Registered Valuers with relevant experience
Slide 24
Property Specific
Assessment
Compensation to be assessed based on specific characteristics of individual
property and agricultural enterprise
No two properties are identical
No two agricultural enterprises are identical
No two impacts are identical
Generic assessment models or matrices problematic
Property Specific Assessment vs “One Size Fits All”
Slide 25
Assessment and
Engagement
Be prepared
Know the market and the locality
Provide detailed project information and plans
Take time to understand the enterprise
Discuss methodology
Consultation and engagement WORKS not models!
Determine Extent of Project Impact through Consultation
Slide 26
General Improvements
Early Involvement
Still an after thought
Consultation often too late
First impression
Planning and accurate budgeting
Slide 27
General Improvements contd….
Engagement
Genuine
Regular
Thorough
Effective
Transparency
Slide 28
General Improvements contd….
Deliver documents or letters
Notes and records
Better plans, maps, photo’s
Empower Land Access Consultants
Avoid overly “legalistic” documentation
One point of contact - consistency
Slide 29
Conclusion
Land Access is essential
Challenging role
Improving however more improvement needed
Slide 30
Jamahl Waddington
0402 148 160