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Abstract
This commentary reflects upon the constitutional and legal foundations of management of natural resources in Australia. It is a revised version of the 2022 Annual Lecture of the Centre for Resources, Energy and Environmental Law delivered at Melbourne Law School on 3 November 2022. Natural resources have shaped Australia’s history, economy, society and environment for almost 200 years, and continue to do so. The exploitation of these resources involves governments as both proprietors and regulators, together with private enterprise as explorers and developers. The complex relationship between governments and private enterprise provides the central theme of this paper. Australia’s federal system of government adds complexity to that relationship.
Disclosure statement
No potential conflict of interest was reported by the author(s).
Notes
1 M Crommelin, ‘Resources Law and Public Policy’ (1983) 15 University of Western Australia Law Review 1
2 Australian Courts Act 1828, 9 Geo IV c 83 s 24 (UK)
3 Wik Peoples Case (1996) 187 CLR 1, 139
4 Ibid 90 (Brennan CJ), 139 (Gaudron J)
5 Mabo [No 2] (1992) 175 CLR 1
6 Ibid 44–45 (Brennan J), 15 (Mason CJ and McHugh J), 80–81 (Deane and Gaudron JJ), 180 (Toohey J); cf 139, 145, 162–63 (Dawson J)
7 Ibid 192–93, 195 (Toohey J)
8 Wik Peoples Case (1996) 187 CLR 1
9 Ibid 176
10 Mabo [No 2] (1992) 175 CLR 1, 48
11 Wik Peoples Case (1996) 187 CLR 1, 188–89. This matter is discussed below, in Part 3
12 Ibid 100 (Dawson J), 167 (McHugh)
13 Ibid 86 (Brennan CJ), citing Mabo [No 2] (1992) 175 CLR 1, 68 (Brennan J), 110 (Deane and Gaudron JJ)
14 RD Lumb, The Constitutions of the Australian States (5th edn, University of Queensland Press 1991) ch 1, 2
15 Wik Peoples Case (1996) 187 CLR 1, 108–09 (Toohey J), 139 (Gaudron J), 168 (Gummow J)
16 Australian Colonies Waste Lands Act 1842, 5 and 6 Vict c 36, s 1 (Imp) [22 June 1842]
17 Wik Peoples Case (1996) 187 CLR 1, 108–09 (Toohey J), 140 (Gaudron J), 168 (Gummow J), 227 (Kirby J)
18 13 and 14 Vic c 58
19 Ibid ss 2, 7 and 9
20 Ibid s 32
21 18 and 19 Vict c 54 [16 July 1855]
22 18 and 19 Vict c 55 [16 July 1855]
23 See eg 18 and 19 Vic c 55, Schedule 1, s 54
24 The Victorian Constitution Statute 1855, 18 and 19 Vict c 55 s 2 (Imp) [16 July 1855]; cf The New South Wales Constitution Statute 1855, 18 and 19 Vict c 54 s 2 (Imp) [16 July 1855]
25 An Act to repeal the Acts of Parliament now in force respecting the Disposal of the Waste Lands of the Crown in Her Majesty’s Australian Colonies, and to make other Provision in lieu thereof, 18 and 19 Vic c 56 [16 July 1855]
26 The Constitution Act of 1867, s 40; see also s 30; Wik Peoples Case (1996) 187 CLR 1, 110 (Toohey J), 142–43 (Gaudron J), 173–74 (Gummow J), 228 (Kirby J)
27 The early history of the colony of Western Australia is recounted in Western Australia v The Commonwealth (Native Title Act Case) (1995) 183 CLR 373, 423–34 (Mason CJ, Brennan Deane, Toohey, Gaudron and McHugh JJ). See also Western Australia v Ward (2002) 213 CLR 1, 117–20 (Gleeson CJ, Gaudron, Gummow and Hayne JJ)
28 53 and 54 Vict c 56 s 3 [2 July 1890]
29 Wik Peoples Case (1996) 187 CLR 1, 173–74, 189 (Gummow J)
30 Cudgen Rutile Case [1975] AC 520
31 Ibid 533
32 Forrest & Forrest Case (2017) 262 CLR 510
33 Cudgen Rutile (No 2) Pty Ltd v Chalk [1975] AC 520
34 Forrest & Forrest Case (2017) 262 CLR 510, 514 (Kiefel CJ, Bell, Gageler and Keane JJ)
35 Ibid 529–30 (Kiefel CJ, Bell, Gageler and Keane JJ); cf 547–48 (Nettle J)
36 Whoever owns the surface of land also owns up to the heavens and down to hell; in other words, the concept of entitlement to land is three-dimensional rather than two-dimensional. The presumption is subject to exceptions such as the royal metals, gold and silver. See Cadia Holdings Pty Ltd v New South Wales (2010) 242 CLR 195
37 Mabo v Queensland [No 2] (1992) 175 CLR 1, 63–71
38 eg ‘Crown lease’, ‘pastoral lease’, ‘perpetual lease’, ‘grazing licence’, ‘timber licence’
39 TP Fry, ‘Land Tenures in Australian Law’ (1946–47) 3 Res Judicatae 158, quoting AC Millard and GW Millard, The Law of Real Property in New South Wales (by BA Helmore) (4th edn, Law Book Co 1930) 474
40 M Crommelin, ‘Australian Responses to Subsurface Conflicts: Greenhouse Gas Storage v Petroleum’ in DN Zillman and others (eds), The Law of Energy Underground (Oxford University Press 2014) 421
41 Wik Peoples v Queensland (1996) 187 CLR 1
42 Geoscience Australia, Australian Land Tenure Map 1993, 35 (Appendix C)
43 The limitation is 15.24 m (50 feet)
44 M Crommelin, ‘Resources Law and Public Policy' (1983) 15 University of Western Australia Law Review 1
45 Mineral (Acquisition) Ordinance 1953 (Cth)
46 Mining Act 1971 (SA)
47 Coal Acquisition Act 1981 (NSW); see Durham Holdings Pty Limited v New South Wales (2001) 205 CLR 399; [2001] HCA 7
48 Mines (Amendment) Act 1983 (Vic)
49 eg Petroleum Act 1990 (Vic) s 13: ‘The Crown owns all petroleum on or below the surface of any land in Victoria that came to be on or below that surface without human assistance’
50 Petroleum and Geothermal Energy Resources Act 1967 (WA) s 9: ‘[A]ll petroleum, geothermal energy resources and geothermal energy on or below the surface of all land within this State, whether alienated in fee simple or not so alienated from the Crown, are and shall be deemed always to have been the property of the Crown’. See also Geothermal Energy Act 2010 (Qld) s 28, Geothermal Energy Resources Act 2005 (Vic) s 12, Petroleum and Geothermal Energy Act 2000 (SA) ss 4, 5 and Geothermal Energy Act (NT) s 9
51 (1976) 136 CLR 1
52 (1983) 158 CLR 1
53 Pape v Federal Commissioner of Taxation (2009) 238 CLR 1 (Pape), Williams v The Commonwealth (2012) 248 CLR 156 (Williams [No 1]), Williams v The Commonwealth [No 2] (2014) 252 CLR 416 (Williams [No 2])
54 eg KM Hayne, ‘Non-Statutory Executive Power’ (2017) 28 Public Law Review 333
55 Crennan J differed from the other members of the court in her reasons relating to the scope of Commonwealth legislative power to make laws with respect to ‘benefits to students’ under s 51(xxiiiA) of the Constitution: Williams [No 2] 471–76. This matter is irrelevant to the scope of non-statutory power
56 Williams [No 2] 468–69 (emphasis original)
57 Ibid 469 (citation omitted)
58 Ibid
59 (1975) 132 CLR 162
60 McTiernan and Stephen JJ adopted the reasons of Barwick CJ; Jacobs J concurred in the result and the reasons expressed by the Chief Justice, but also published his own reasons: ibid 172, 174
61 Ibid
62 Ibid 170
63 Ibid 174
64 18 and 19 Vict c 54 s II [16 July 1855]
65 in Section 3.1
66 Seat of Government Acceptance Act 1909 (Cth)
67 Parton v Milk Board (Vic) (1949) 80 CLR 119, 259 (Dixon J)
68 (2013) 250 CLR 548
69 Ibid 593–94 (Hayne, Bell and Keane JJ)
70 1 Plowden 310
71 Cadia Holdings Pty Ltd v New South Wales (2010) 242 CLR 195
72 Mining Act 1992 (NSW) s 284
73 Cadia Holdings Pty Ltd v New South Wales (2010) 242 CLR 195, 218
74 Ibid 227
75 Ibid 211
76 Ibid 226
77 Productivity Commission 2018, Horizontal Fiscal Equalisation, Report no 88, Canberra
78 Commonwealth Grants Commission, Report on GST Revenue Sharing Relativities 2020 Review, Volume 1, ix
79 M Crommelin, ‘Mining and Petroleum Titles’ (1988) 62 Australian Law Journal 863
80 TEC Desert Pty Ltd v Commissioner of State Revenue (WA) (2010) 241 CLR 576
81 M Crommelin, ‘The Legal Character of Resources Titles’ (1998) 17 Australian Mining and Petroleum L J 57
82 M Crommelin, ‘State Agreements: Australian Trends and Experience’ [1996] AMPLA Yearbook 328
83 [2021] HCA 30; see also Palmer v Western Australia [2021] HCA 31
84 M Crommelin, ‘The Mineral and Petroleum Joint Venture in Australia (1986) 4 Journal of Energy and Natural Resources Law 65
85 United Dominion Corporation Ltd v Brian Pty Ltd (1985) 187 CLR 1
86 Bank of Montreal v Dynex Petroleum Ltd (2002) 208 DLR (4th) 155