AgForce after ag-friendly agreements for coal seam gas despite progress


AgForce has renewed its commitment to secure a Code and Conduct Agreement with an indemnity clause on coal seam gas (CSG) that better suits the needs of agriculture.

The announcement comes in the wake of a recently negotiated clause on indemnity that AgForce says contains a mix of positive and less positive outcomes for landowners.

Key representatives from AgForce, the Insurance Council of Australia, Queensland Farmers Federation, Cotton Australia, the Australian Petroleum Production & Exploration Association, and relevant government departments met to discuss CSG Code and Conduct Agreements after a major insurer, AIG, announced their intention to withdraw from the market in mid-2020, jeopardising public liability cover for landowners with CSG infrastructure on their properties.

AgForce CEO Michael Guerin said that while his organisation was appreciative of Gas Fields Commission Queensland taking a facilitation role in moving the gas, agricultural, and insurance industries towards a resolution on the issue of public liability insurance for landowners, the recent agreement still hadn’t addressed all their concerns.

“The amended clause on coal seam gas provides a measure of confidence for AIG and its subsidiaries including WFI to re-join the farm insurance market for properties with CSG infrastructure on them. And that in itself, is a good outcome,” Mr Guerin said.

“But landowners may still face issues with their cover because they have CSG infrastructure on their properties or from CSG activities carried out on their land.

“AgForce’s legal advice is that deficiencies exist in the proposed clause around the fact that indemnity is capped at an amount to be negotiated between the landowner and the CSG company.

“But there is no reason we can see for any cap on indemnity – the bigger the problem a tenement holder causes, the bigger the problem for which it should accept responsibility.

“We don’t believe it should be the landowner’s job to assess the risk they are being asked to take on.

“This is an additional burden for landowners who already juggle excessive amounts of bureaucracy on top of trying to produce food and fibre and leaves them, if they get it wrong, at risk of being underinsured.”

Mr Guerin said AgForce also had legal concerns around some of the terms used in the current CSG Code and Conduct Agreement and would continue to question the State Government and the CSG industry about the ongoing, long-term third-party risks associated with CSG sites and infrastructure remaining on properties post surrender of Environmental Authorities.

“Ultimately, AgForce and its members are keen to address the challenges of coexistence of agriculture with the resource sector,” Mr Guerin said.

“We have our own set of Land Use Protection Principles and we would hope for amendment of the Code so that it aligns more closely to these.” 
Business Business & Economy Energy & Water Political Primary Industries

AgForce Queensland :
Level 2, 110 Mary Street, Brisbane Qld 4000, Queensland Wide
07 3236 3100
AgForce Queensland
Showing 7 recent articles for this business
AgForce serving up advocacy, opportunity, and science at Beef Australia 2021 07 April 2021 | AgForce will host sessions on Reef regulations, natural capital, native title, and land valuation, as well as a seminar guaranteed to ignite the passions of all who attend Beef Australia 2021 in Rockhampton next... More information...
AgForce urging landholders to challenge land valuation hikes 01 April 2021 | AgForce is warning landholders throughout Queensland not to delay if they want to object to their new land valuations – or risk being lumped with higher council rates and rent. More information...
AgForce after ag-friendly agreements for coal seam gas despite progress 16 March 2021 | AgForce has renewed its commitment to secure a Code and Conduct Agreement with an indemnity clause on coal seam gas (CSG) that better suits the needs of agriculture. More information...
AgForce’s Agricultural Educators Conference On Wheels laying down rubber in 2021 08 January 2021 | AgForce’s Food, Fibre & Agricultural Educators Conference On Wheels series is taking in stops throughout Queensland in 2021 in what is an exciting, unique opportunity for educators of Australia’s younger... More information...
New Government has four years to prove commitment to agriculture 09 November 2020 | The incoming Palaszczuk Government has been challenged to demonstrate their promised commitment to the State’s $18 billion agriculture industry as it prepares to lead Queensland for a historic four-year term. More information...
Regions ask parties to commit to ‘Three Rs’ and safeguard millions of jobs 22 October 2020 | A million Queenslanders working in the State’s major industries have urged all political parties to prioritise the Three R’s – Revenue, Regions, and Regulation that is reasonable – to ensure our continued... More information...
Agriculture and conservation organisations welcome LNP announcement on protected areas 24 October 2020 | The LNP commitment of $80 million towards creating new national parks and protected areas on private land would bring a solid boost to the protected area estate, according to agriculture and conservation organi... More information...

comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service