Coal seam gas (CSG) or renewable energy projects – when two worlds collide

June 17, 2026

Whilst renewable energy projects in Queensland are continuing to grow so is the established CSG industry, particularly in southwest Queensland with 22,000 wells projected by 2050. Landholders need to be aware of the significant “on farm” competition between CSG proponents and renewable energy developers driven by each party seeking to get first access rights to the land.

Rights to access land

Understanding how each industry accesses private land is critical in managing their competing interests.

CSG proponents have a statutory right to access land for the purposes of undertaking authorised gas exploration and production activities under the Mineral and Energy (Common Provisions) Act 2014 (Qld) (MERCP Act). The MERCP Act requires parties to enter into a conduct and compensation agreement (CCA) which sets out:

• the terms governing how a CSG proponent must access and undertake activities on the land (such as biosecurity, notice requirements, noise and the like); and
• the amount which the landholder must be compensated on account of the impacts of the activities on the landholder’s operation, use and value of the land.

For renewable energy projects, there is no statutory right for access and such rights must be negotiated by the developer directly with the landholder. Generally, this is through:

• initial negotiations for an access / licence / exclusivity agreement which effectively “locks up” the land for exclusive by the developer to undertake feasibility activities such as wind/ solar monitoring; and
• if the developer considers the land is suitable for inclusion in the larger project, negotiating an Option to Lease / Option which grants the developer access for a longer period and commits the parties to a formal and usually long-term lease of the land.

Key impacts and risks for Landholders

With the rapid rate of development across both the CSG and renewable sector, landholders will be required to navigate simultaneous proposals from CSG and renewable developers more frequently. Without a clear, forward-thinking approach to negotiations, landholders expose themselves to significant and sometimes irreversible risks such as:

• Limited land use opportunities: If a landholder enters into an exclusivity agreement with a term of 10 years which includes a clause preventing any third-party access for mineral or petroleum exploration, the landholder has committed the land to one use which is not guaranteed to generate an income (e.g. if the land is not suitable for renewable energy infrastructure) at the exclusion of other potential income-generating uses (e.g. the landholder grants access rights for CSG exploration which would generate compensation regardless of whether CSG production went ahead).
• Diminished negotiating leverage: The first agreement entered into significantly impacts a landholders “bargaining power” for all subsequent negotiations, especially compensation. For land with existing CSG exploration activities, renewable energy developers may discount any offer to account for the added risk and complexity associated with managing their project with existing CSG infrastructure.
• Competing compensation: Compensation for CSG projects is governed by the MERCP Act and broadly designed to reimburse the landholder for specific impacts such as diminution in land value, loss of productivity and disturbance typically paid as an upfront amount and then ongoing payments. For renewable energy projects, compensation is negotiated on a commercial basis having regard to the stage of development underway and how critical the relevant property is to the future development of the project. Depending on the location and feasibility of the land, some renewable energy projects will provide a larger offering of compensation compared to CSG projects.

In addition to the above, there are complex co-existence burdens such as:

• Liability ambiguity: Ambiguities arise in circumstances where there are two operators on the land. For example, if a contamination event occurred it will be difficult to determine which operator is responsible. If there is a dispute regarding liability, the landholder may be caught in the middle and left to undertake rectification works if the dispute goes unresolved.
• Operational conflict: Managing simultaneous operations on the land creates complex challenges related to biosecurity, water, access roads, infrastructure maintenance, safety and liability ambiguity as outlined above.
• Decommissioning and rehabilitation: Whilst CSG proponents have a statutory obligation to return disturbed land to a stable, pre-disturbance, or safe, non-polluting condition, without clear decommissioning and rehabilitation obligations documented within each agreement for each proponent, there is a significant risk one party may attempt to defer its obligations to the other if infrastructure remains on the Land.

Strategies for landholders

Strategies for landholders looking to negotiate competing interests on the land include:

• Engaging Experts Early: Before any negotiation, seek integrated legal, valuation and if necessary, agronomy and accounting advice to develop a whole-of-property plan with realistic expectations as to how multiple interests can be managed in addition to the existing land uses whilst maximising the potential for new revenue streams.
• Clear Access Arrangements: In any agreement, especially a CCA, insist on precisely defined development areas, access tracks, and pipeline corridors. Establish clear “no-go zones” to protect valuable agricultural land or prime renewable energy sites.
• Preserve Your Future Options: Ensure any agreement you sign explicitly allows you to grant rights to other parties provided they do not unreasonably interfere with existing activities or at a minimum allow you to obtain consent from the original operator to any new access / activities.
• Seek Co-existence Agreements: Where possible, advocate for a formal co-existence agreement between the landholder, the CSG company, and the renewables developer to manage shared access, coordinate activities, and allocate liability.

If you have any existing agreements you would like reviewed to ensure your future interests are protected or want to discuss any proposals for CSG or renewable energy development on your property, please contact Fox and Thomas’ Property and Renewables team on (07) 4671 6000.