Queensland Bills Explanatory Notes

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CENTRAL QUEENSLAND COAL ASSOCIATES AGREEMENT VARIATION BILL 1996

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           Central Queensland Coal Associates Agreement Variation


   CENTRAL QUEENSLAND COAL
ASSOCIATES AGREEMENT VARIATION
            BILL 1996

                  EXPLANATORY NOTES

Short Title of the Bill
  Central Queensland Coal Associates Agreement Variation Bill 1996.

Objectives of the Bill
   The objective of the Bill is to provide for variation of the Central
Queensland Coal Associates Agreement to reflect changes in membership
of the Central Queensland Coal Associates (CQCA) joint venture.
  The change in membership arises from the sale of Pancontinental Coal's
and Bowen Basin Minerals' interests in the joint venture to BHP Australia
Coal, Mitsubishi Development and QCT Resources.

How objectives will be achieved
  Accommodating this change in joint venture membership will be
achieved by introduction of an Act which authorises the Premier to make an
agreement substantially in accordance with the Schedule attached to the Act.
   The schedule provides for amendment of clauses 11 and 12 of Part IX of
the CQCA Agreement which set out the percentage interests of the parties
in the CQCA joint venture.

Reasonable alternative methods of achieving objectives
  The Central Queensland Coal Associates Agreement Act 1968 allows for
changes to the CQCA Agreement to be made either by legislation or by
Order in Council.
   In the case of amendment by Order in Council (or other subordinate
instruments) the amendment may be overturned by the Legislative
Assembly within 14 sitting days from the date on which the Governor
grants assent. The CQCA joint venture parties were concerned by the
 
 
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           Central Queensland Coal Associates Agreement Variation


significant commercial uncertainty associated with this provision and
indicated a preference for changes to be provided by legislation.

Administrative costs
  Variation of the CQCA Agreement by legislation will involve minor
additional costs, primarily in terms of printing expenses.

Fundamental Legislative Principles
  The Bill is consistent with fundamental legislative principles.

Consultation
  Consultation occurred with the Department of the Premier and Cabinet,
Crown Law, the Office of Parliamentary Counsel and BHP Australia Coal.



Notes on Clauses

Short Title
  Clause 1 Sets out the short title of the Bill.

Making of Agreement authorised
  Clause 2(1) Authorises the Premier to make an agreement with the
specified parties on behalf of the State.
  Clause 2(2) Requires that the agreement is substantially in accordance
with the terms set out in the Schedule attached to the Act.
  Clause 2(3) Requires that the date on which the agreement is made must
be notified in the Gazette.



                           © The State of Queensland 1996

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