Negotiating conduct and compensation agreements for coal seam gas operations

The development of unconventional gas resources in Australia promises to provide substantial economic benefits. The extraction of these public assets raises significant legal issues regarding access to landholders' private property by petroleum titleholders. This article analyses the significant questions and issues that arise in the Queensland regulatory structure for the negotiation of conduct and compensation agreements for the extraction of coal seam gas resources. Drawing on principles of good faith negotiation in other contexts, this article will assist in deriving principles of fairness, efficiency and effectiveness that, if properly applied, allow an appropriate balancing of the interests of titleholders and landholders to improve the chance of positive outcomes for all parties.