Mining lease process and obligations for overlapping tenures

Pre-grant obligations for mining lease (ML) applicants

Prior to grant, there are notification requirements and for an overlapping petroleum lease (PL), you must negotiate a joint development plan (JDP).

Notification requirements

Advance notice

You must notify any overlapping petroleum resource authority (PRA) holder of your mining application within 10 business days of lodgement. (Mineral and Energy Resources (Common Provisions) Act 2014 (MERCP Act) s. 121, Mineral Resources Act 1989 s. 318C)

Exceptional circumstances notice

Once a PRA holder considers the advanced notice they may issue an exceptional circumstance notice. The PRA must justify that their need to extend the period before commencing activities in the initial mining area (IMA) is due to either high performance wells or insufficient period for production. (MERCP Act s. 127(1)(b))

This notice must be issued within 3 months of receiving the advance notice.

You have 3 months to consider the exceptional circumstance notice. If you accept, a new mining commencement date will be set. If you do not accept, the PRA holder must apply for arbitration, or both parties can lodge a joint application.

Within 20 business days of the new commencement date being agreed or determined by the arbitrator, you must send a notice to the Chief Executive stating:

• the exceptional circumstances to justify the new commencement date
• the new mining commencement date.

Contents of notices

Learn what information is required for each overlapping notice.

Joint development plan

A JDP details arrangements within an overlapping area. Where the overlapping tenure is a PL, an agreed JDP must be established.

The advance notice must contain a proposed JDP. The PL holder must consider the JDP and negotiate in good faith. (MERCP Act s. 131(1))

If parties cannot agree on a JDP within 6 months of receiving the advance notice, the ML applicant must apply for arbitration or both parties can lodge a joint application.

Joint interaction management plan

A joint Interaction management plan (JIMP) identifies and controls the hazards and risks of the overlapping operations. You must negotiate a JIMP to ensure safety obligations are met.

Post-grant obligations for ML holders

There are continuing notification requirements once a coal ML is granted.

Notification requirements

Confirmation notice

For overlapping PL, you must give 18 months to 2 years notice to the PL holder before mining. The notice must include confirmation that mining will commence in the IMA on the nominated commencement date. (MERCP Act s. 123)

18 months notice

For overlapping authority to prospect (ATP), you must give 18 months notice to an ATP holder before mining. The notice must include confirmation that mining will commence in the IMA on the nominated commencement date.

This notice can be sent at the same time as the advance notice. (MERCP Act s. 122(3))

Acceleration notice

You can issue an acceleration notice if you believe the mining commencement date should be earlier. (MERCP Act s. 128)

This notice can only be given from the day the advance notice is received and 18 months before the mining commencement date.

Abandonment of sole occupancy

If you decide you no longer require sole occupancy of the IMA or rolling mine area (RMA) you must notify the PRA holder. (MERCP Act s. 129)

Contents of notices

Learn what information is required for each overlapping notice.

Amending a joint development plan

An agreed JDP may be amended at any time. Whoever receives a proposal for an amendment must negotiate in good faith. (MERCP Act s. 133(2))

If parties cannot agree on a JDP within 6 months of receiving the advance notice, you must apply for arbitration, or both parties can lodge a joint application.

Production may increase, decrease or stop in the event of an amendment by arbitration.

Joint interaction management plan

A joint Interaction management plan (JIMP) identifies and controls the hazards and risks of the overlapping operations. You must negotiate a JIMP to ensure safety obligations are met.