Compensation for Taking of Natural Resource Interests: Principles and Practices in Recent Queensland Cases

Abstract

Designation of new protected areas, introduction of new environmental regulations and resumption of land for infrastructure development lead to expropriation of natural resources or limitations on private property rights. ‘Takings’ by government may be justified when the social gain exceeds the private loss. Important issues then arise as to compensation policy. This article examines economic aspects of takings and limitations of property rights to natural resources. Compensation decisions by government with respect to three case studies in Queensland are reviewed. The nature and extent of compensation varied widely in these cases, and lack of clearly enunciated policies by government is apparent. It is probably impractical for government to set out clear guidelines to compensation for the takings of resources interests, although some reduction in uncertainty appear to be desirable.