The MEROLA Amendment Act explained

This page provides information about the Mineral and Energy Resources and Other Legislation Amendment Act 2024 (the MEROLA Act), how amendments will commence, and why further consultation is required on the CGS-induced subsidence management framework.

The amendment Act made amendments to several acts to strengthen relationships between resources, agriculture and renewable industries and improve regulatory efficiency for the resources sector as a whole.

Commencement of amendments

Amendments to expand the role of the former Gasfields Commission Queensland, and the role of the Office of Groundwater Impact Assessment in relation to provide advice on sub-surface impacts from petroleum and gas activities, commenced on 18 June 2024.

All other amendments will commence via proclamation which is generally a date not more than one year after the Bill receives assent. This will allow time for us to consult with stakeholders and prepare materials to support the implementation of these amendments.

Coexistence institutional reform

Changes to the role of the Gasfields Commission Queensland (the Commission)

The Commission has been renamed Coexistence Queensland, and its responsibilities now expand beyond the onshore gas industry to identify broader coexistence issues, provide advice to government, and offer engagement and information services to industry, landholders and the community. This expanded role aims to promote coexistence between agricultural landholders and regional communities, and the renewable energy and resources industry more broadly, for example, the critical minerals industry.

Changes to the role of the Office of Groundwater Impact Assessment (OGIA)

OGIA’s functions were expanded to provide independent scientific advice in relation to subsurface impacts from authorised petroleum and gas activities, when requested by relevant government entities.

This will help us to remain responsive to issues that may arise due to subsurface impacts from authorised activities, and will help facilitate coexistence between landholders and the resources sector.

Changes to the role of the Land Access Ombudsman (LAO)

The LAO functions are broadening to include the investigation of breaches of access agreements. The LAO will also now provide a voluntary alternative dispute resolution service for parties negotiating or re-negotiating make good agreements, conduct and compensation agreements, access agreements, and compensation agreements relating to mining claims and mining leases.

The LAO’s expanded remit requires increased resources and funding, which will be met through the implementation of levies. These levies will be equitably apportioned among resource tenure holders, with an annual levy covering day-to-day operating costs, and a quarterly levy covering costs associated with providing discrete alternative dispute resolution and investigation services.

As the LAO transitions to being entirely industry-funded, rather than government funded, there will be an increased need for ongoing additional scrutiny of its financial management. Accordingly, the LAO will become a statutory body with additional financial reporting obligations, enhancing the accountability in its financial administration and budgeting.

To further ensure oversight and accountability, an advisory council will be established. This council will include an independent chairperson and representatives from both the agricultural and resources sectors. The council will advise the LAO and the Minister for Resources and Critical Minerals on the development of the LAO’s functions and budgets, including the formulation and calculation of industry levies.

We will consult on the details and methodology of the proposed funding model before the levies take effect. We will work closely with the LAO, the resources sector and other relevant stakeholders to understand and address any potential impacts or limitations of the levy methodologies and ensure effective implementation of the requirements.

Improved regulatory efficiency

Amendments made to the land release process

We are committed to enhancing critical mineral opportunities to support global demand for these strategic minerals, and Queensland’s transition to a low carbon economy. The Minister for Resources and Critical Minerals now has the discretion to decide how and when land, once relinquished to the State, will be re-released for application. This replaces the previous requirement to re-release land within two months after it has been relinquished from an exploration permit.

These amendments give the Minister discretion to delay the re-release of land for strategic reasons. Land for exploration will not necessarily be through a competitive tendering process, but will be determined based on various factors, including impact on stakeholder groups and State strategic objectives like critical minerals exploration. This could involve a competitive tendering process, or an over-the-counter process, depending on what best drives the State’s interests.

Threshold for aerial surveying

Previously, resource companies had to provide entry notices, periodic entry reports, sometimes negotiate conduct and compensation agreements, for every instance of aerial surveying regardless of type, altitude, or invasiveness of the activity. Aerial surveys conducted at 1000 feet or above are considered unlikely to affect the land use below.

The amendments mean that surveys conducted at 1000 feet or above no longer require entry notice and periodic reports, as they are not considered advanced activities, reducing unnecessary administrative burden on both the industry and landholders.

Fossicking in a mining lease application area

Fossickers are required to obtain written permission from a mining lease applicant before fossicking in a mining lease application area. This amendment addresses industry concerns about fossickers accessing and removing minerals from land under mining lease applications. The application process for a mining lease requires significant investment by resource companies in terms of time, knowledge and capital, creating an interest that could be impacted by fossicking activities. The same requirements already exist for mining leases and mining claims.

We recognise the popularity of fossicking as a recreational activity and the benefits that fossickers bring to local tourism in regional towns across the State. Fossicking is still allowed on designated fossicking land or areas where permission has been granted by landholders or reserve owners, according to the Fossicking Act.

CSG-induced subsidence consultation

Further consultation on the proposed subsidence management framework

The MEROLA Bill included amendments to establish a framework for managing the impacts, or predicted impacts, of coal seam gas (CGS)-induced subsidence on agricultural land. The framework aimed to support coexistence between the resources and agricultural sectors.

The Bill was considered by the Clean Economy Jobs, Resources and Transport Committee, where the following concerns were raised:

• the short timeframe for making a submission to Committee and not having enough time to consider the details of the proposed subsidence management framework
• the complexity of the proposed framework
• the lack of consultation on an exposure draft of the MEROLA Bill.

In response, the Queensland Government decided to remove the proposed subsidence management framework from the MEROLA Bill to provide time for further consultation on the framework.

This will allow stakeholders to submit detailed feedback on the framework and identify any unintended consequences of this framework ahead of further consideration by Parliament.

Consultation on the proposed subsidence management framework is now open. Read more about how to have your say.

The draft legislation (PDF, 774 KB) replicates the subsidence management framework that was included in the MEROLA Bill.

A range of tools and resources will also be made available throughout the consultation period to provide further clarity on the subsidence management framework, including stakeholder engagement sessions.

How to provide feedback

Consultation on the proposed CSG-induced subsidence management framework will close at 5pm on 23 September 2024.

You can make a submission online, or email resourcespolicy@resources.qld.gov.au.

Consultation on prescribed requirements

The current consultation process is limited to the subsidence management framework. Further consultation on prescribed requirements, including land monitoring, baseline data collection, farm field assessments, and technical guidelines, will occur at a later stage. We will provide further details once determined.

Read information about the CSG-induced subsidence management framework.