Landholders need to be aware of the impacts

Landholders approached by CSG companies need to be aware critical importance of seeking independent legal advice on all aspects of CSG development on your land as any Conduct and Compensation Agreement you enter into with a CSG company will:

  • Lie with the land – that is, it will bind you, your children/grandchildren and future purchasers of your land;
  • Impact the value of your land – the first thing Buyers in the future will want is a copy of your Conduct and Compensation Agreement to see what has been negotiated; and
  • Will alter and limit future uses of your land

When negotiating a CCA, there are a vast range of impacts to be consider

  1. The value of your property may be altered
  2. The equity you hold in your business may be altered
  3. The ability or capacity for you to generate income from your land and resources may be altered
  4. Your ability to meet market or other compliance schemes may be compromised (Examples: Biosecurity, WPHS, Organic Certification, Quality Assurance Schemes)
  5. Your ability to adopt new technologies/farming practises in the future may be altered
  6. Your ability to carry out normal activities on your land may be compromised
  7. You will spend a significant amount of time (otherwise used for your business) to understand CSG development and negotiate with the CSG company
  8. You may become overwhelmed by the enormity of the decisions before you and the timeframes under which you are expected to respond
  9. You may have concerns about the long‐term environmental impact on your land and water resources and their implications for you and your family/staff/community’s health, stock health and food safety
  10. You will have to consider that any payments for compensation for impact are structured correctly to avoid excessive taxation
  11. You may experience a loss of privacy with CSG employees and contractors accessing your land.
  12. The exclusive rights you previously enjoyed to your land may be forever changed.
  13. There will be flow on affects due to the impact on your land and business to the community, business and social environments in which you operate.

The laws applying to CSG development are very complex to traverse and negotiating Conduct and Compensation Agreements is simply NOT something you can do on your own. Go to our landholder factsheet>>