All pastoral leases in Western Australia granted under the Land Act 1933 (WA) (now repealed) are set to expire on 30 June 2015. Although the vast majority of leaseholders have a conditional right to renew their pastoral leases on and from 1 July 2015, there are aspects of the renewal process that may affect land access agreements between leaseholders and resource companies.
This article identifies key issues that may be relevant to resource companies.
Existing pastoral leaseholders do not have an automatic right to renew their leases from 1 July 2015. Most leaseholders will only be able to renew their leases if:
All eligible leaseholders should have been contacted by the Western Australian Department of Lands (Department) earlier this year in a letter addressing any outstanding compliance issues that may result in the non-renewal of a pastoral lease, or confirming that the pastoral lease will be renewed subject to continued compliance with the requisite conditions.
In addition, 23 pastoral leases will not be eligible for renewal due to viability considerations. The affected leaseholders should have been informed of their non-eligibility by the Department.
Another aspect of the renewals process is the excision of "exclusion areas" from pastoral leases.
In 2002, the Department identified areas of land that will be excluded from pastoral leases upon renewal in 2015 for the purposes of public works, conservation, national parks, nature reserves or other Government purposes.
There are approximately 75 pastoral leases that will be affected by exclusion areas when they are renewed. The renewal of each of these affected leases is conditional upon the relevant leaseholder agreeing to the exclusion area being excised from the pastoral lease.
A third aspect of the renewals process is the automatic expiry on 30 June 2015 of all encumbrances against pastoral leases that are registered on the title, including caveats, mortgages, subleases and memorials.
Any such encumbrances may be reregistered against the relevant pastoral lease after 1 July 2015, though ministerial approval will be required before mortgages and subleases can be registered against renewed pastoral leases.
If a resource company has a land access agreement with a leaseholder, it should consider how the renewal process might affect its access rights and compensation obligations under that agreement.
Be the first to receive the latest articles, news and publications.
Developments in cyber, privacy and data continue to evolve rapidly, so we’ve summarised highlights from the past three months to give you a whirlwind tour of the most significant updates.
While we await progress on the broad-reaching reforms to Australia’s Privacy Act proposed in the Attorney-General’s Review Report published in February 2023, there are plenty of other developments...
Johnson Winter & Slattery has advised AgriWebb on a $30 million capital raising in a round led by TELUS Ventures, the strategic investment arm of Canada’s TELUS. One of the largest private funding...