Cotton industry in favour of IPART’s benchmark report

The Independent Pricing and Regulatory Tribunal (IPART) is seeking feedback on a model that will guide the negotiation of compensation payments for landholders hosting CSG operations. This has flowed from the recommendations of the NSW Gas Plan.

Cotton Australia general manager, Michael Murray, says the industry is pleased IPART took on board the major points outlined in Cotton Australia’s submission to the process.

“Cotton Australia argued that a one-size-fits-all approach would not work for compensation payments, and we are glad IPART agrees with our stance,” Mr Murray says.

“IPART has proposed a bespoke model that allows landholders to estimate compensation benchmarks using information specific to their circumstances.”

“Under the proposed model, landholders would have input into how planned gas infrastructure would impact their property and farming operations, and these factors would need to be considered in a reasonable offer from the resource company.”

“We also support the proposal that gas companies should fund benefit payments to landholders, in recognition of the impost on agricultural operations from coal seam gas operations.”

IPART’s report into landholder benchmark compensation rates also recommends additional measures to support landholders, including legislative provisions to ensure landholder compensation equals that of other states, and funding negotiation workshops to provide landholders with independent and practice advice on negotiating agreements.

Mr Murray says IPART’s proposal was a step towards ensuring cotton growers and other farmers affected by CSG would be treated fairly when dealing with resources companies.

“One of the key planks in our platform is that if a landholder hosts gas exploration or production, then the landholder should receive a financial benefit, and IPART’s proposal is a step towards that goal,” Mr Murray says.

“If enacted, IPART’s model would join other landholder protections negotiated by Cotton Australia and other farm and irrigator groups, such as the agreement with AGL and Santos to respect a farmer’s right to say ‘no’ to CSG operations on their property.”

“However, the other two very important planks of our policy is that valuable land and water resources need to be protected, and we believe the NSW government still has a way to go to ensure that protection.”

Cotton Australia will attend public forums to be held by IPART to discuss the outcomes of the draft report, and encourages growers to attend.

The forums will be held in Narrabri on October 13 and in Gloucester on October 20.

Growers wishing to attend the events need to register at www.ipart.nsw.gov.au.

Cotton Australia will also make a formal submission on IPART’s draft report.