A model agreement has been developed by a joint committee chaired by former WA deputy premier and Nationals leader Hendy Cowan to support agricultural productivity in areas being explored for onshore gas, primarily the Perth Basin, but applicable to other onshore basins, such as the Canning, Ord and Carnarvon.

Peak bodies in the agricultural and petroleum sectors have worked together for more than two years on the co-operative project, which allows landowners to gain access to expert advice, detailed information and appropriate management plans to ensure the continued success of farming in areas such as the Mid-West.

Farmers will be compensated for any losses or inconvenience and will be able to negotiate protocols for sound land and environmental management practices on their properties.

The agreement has been endorsed by APPEA, WAFarmers, Pastoralists and Graziers Association of WA, and Vegetables WA.

WA Mines and Petroleum Minister Bill Marmion hailed the deal as it would provide certainty for land holders and petroleum explorers, ensuring land access could be negotiated in a "fair and equitable manner".

“The agreement will assist the development of the onshore gas industry, which with estimated shale reserves of over 288 trillion cubic feet, is vital for the State’s economic growth and energy security,” Marmion said.

While WA will probably never see the need for thousands of CSG wells as the coals are insufficient to generate commercial levels of gas, there has been renewed interest in the Perth Basin recently in the wake of discoveries such as Red Gully and Waitsia and several wells targeting unconventional and tight gas have been drilled in recent years.

These have stirred up a hornet’s nest of community concerns about fraccing, largely stoked by protests in the US and the east coast.

Cowan said the most important feature of the process was the “constructive input” of industry leaders, making sure that farmers’ and explorers’ key priorities were accommodated in the potential development of a new onshore gas industry.

He said the model agreement and a companion ‘Farmer’s Guide to Land Access’ addressed an important need for both farmers and oil and gas companies and would help promote greater trust, understanding and mutual respect.

“This agreement protects the rights and interests of land owners while also providing oil and gas companies with the certainty they need to negotiate land access in a timely and efficient way,” he said.

“I am confident it will provide a strong foundation for constructive and mutually-beneficial relationships between farmers and petroleum operators and I commend all of the parties involved in its development.”

The Australian Petroleum Production and Exploration Association’s chief operating officer–- western region, Stedman Ellis, said the agreement showed oil and gas operators were keen to establish positive relationships with farmers and regional communities.

“The potential for our industry to provide jobs and investment in regional WA can mean little to individual farmers if they feel their own interests have been ignored or neglected,” Ellis said.

“This agreement recognises that establishing and maintaining good relationships with landholders is absolutely vital.”

PGA president Tony Seabrook said the agreement was a positive step in protecting the rights of landholders in WA.

“This agreement is about setting out guiding principles that will ensure landholders are treated fairly in access arrangements; it is not about granting farmers a right of veto over whether they allowed oil and gas companies onto their land or about how much compensation will be paid,” Seabrook said.

“This agreement shows that it is possible for industry and landholders to work together to ensure a positive outcome for all parties.”

WAFarmers president Dale Park said the model agreement is an important resource which will be of significant benefit to the organisation’s members.

“When members are faced with the prospect of exploration for gas and petroleum on their properties this agreement will act as a checklist to ensure they’ve thought of everything that could be an issue,” Park said.

The book is designed to help rural land owners negotiate fair and equitable agreements for exploration on private land, filling the need for a balanced and easy-to-understand guide to the rights and responsibilities of the parties to an agreement.

The package includes the agreement template, a summary of key laws and regulations covering exploration, and a checklist of some of the issues the land holder needs to know – and questions which need to be asked.

It also says that exploration activities might involve infrastructure like roads, water bores, fencing and power supply, which can sometimes be retained and subsequently used by the farmer.

In a similar context, the operator might hire the farmer to carry out rehabilitation work – providing this meets with the approval of the regulators.

It reminds farmers that any operator needs consent from the landholder, and compensation can be discussed.

However, access can only be denied on properties that are smaller than 2000sq.m, burial places, or within 150m of a reservoir or any substantial improvement.

If compensation cannot be agreed after three months, and mediation fails, either party may apply to the Magistrates Court to fix the amount of compensation.

Compensation will include provision for compensation for any losses, damage or other impacts from exploration, and the land holder’s agreed costs to secure legal, financial or technical advice, presuming they are reasonable.

Where appropriate, the agreement will also outline protocols for stock movement, fencing, gates, biosecurity, fire risk management and a range of additional farming priorities

The model agreement assumes the agreement is based on a set of overarching principles, including that the landholder is not financially disadvantaged by the exploration activity and will be compensated for any loss of income, damage, inconvenience or loss of amenity.

Partnership

Elsewhere in WA, petroleum minister Bill Marmion has launched a new Community Partnership Resources Sector Award, to recognise outstanding achievement and leadership in building partnerships between resources companies and communities.

“The new award will be presented for the first time next year and will acknowledge companies and communities that show outstanding leadership in developing meaningful community partnerships,” Marmion said.

“By engaging with communities and community groups to understand their issues and concerns, resources companies can help leave an ongoing positive legacy in the communities where they operate.”

The community partnership award will be presented for the first time in October 2016 alongside the Golden Gecko Awards for Environmental Excellence.

Any company or individual operating within Western Australia’s minerals, energy resources or extractive industries can nominate a project for the award.

Resources sector companies can submit a joint nomination with a WA community organisation or an individual entry that clearly demonstrates community collaboration.