Why a Compensation Estimator?

The Compensation Estimator was years in the making

Why a Compensation Estimator?

The GasFields Commission's Compensation Estimator was years in the making.

The need for an estimate tool became clear when Robert Scott conducted an independent review of the GasFields Commission and its functions in 2016.

In his final report Mr Scott noted that, “When it comes to negotiating an amount of compensation in particular, there can be a real information asymmetry between a landholder and a CSG company as a CSG company will have negotiated many such agreements”. 

His review also found that, “Landholders expressed an overwhelming sense of powerlessness from the perceived imbalance in the land access framework and their inability to afford the legal and technical expertise necessary to understand the impacts on their land from CSG activities and to negotiate workable access arrangements and appropriate compensation”.

Stemming from those observations was a series of recommendations including, “… the Commission needs to critically review its current communication activities and develop an extension and communication program that leads to landholders becoming informed and self-reliant in their dealings with the CSG companies, both in terms of what they know and in terms of their capacity to source information and advice as required.

And so we did.

The Compensation Estimator was one of the tools we set about building to meet that need.

Resource companies all have their own ways of calculating compensation agreements so we decided to build a simple tool for landholders as well.

By building the Compensation Estimator into a phone app it can be constantly reviewed and improved.

It can be updated to include new legislation, court precedents, operational considerations and incorporate feedback from users, government and industry.

The compensation estimator is good use of modern technology to fix and old-fashioned communications problem.

Phone apps aren’t for everyone, we know that, but the estimator is another important tool in a suite of information solutions the Commission is working on to, in the words of Robert Scott, … empower landholders in their negotiations and increase self-reliance …”