2017-10-13 Special Meeting

SPECIAL MEETING AGENDA                                                          13 OCTOBER 2017


3.5. Apiary Licences
There are approximately a dozen apiary licences in the area. These provide licence holders with
the right to enter and conduct bee keeping activities on the site. The apiary licences are not
intended to be affected by this project and will be maintained.


4.   The Proposal “in principle”

After months of negotiations and consideration of different scenarios, the parties have reached "in
principle" agreement on the following:

4.1. Surrender of the PLA
   HQP will surrender its PLA to the State within 5 years of the signing of the formal agreement.
     HQP will receive compensation of $3.5M payable at the signing of the agreement for its
     surrender of the PLA.
   HQP will finalise its harvesting and removal of all pine located on the PLA area within that 5-
     year period.
   HQP has also agreed to forgo any rights it has in relation to the hardwood forests within its
     PLA upon the signing of a formal agreement i.e. all existing hardwood areas in the PLA will
     be protected from any logging.
   HQP also has agreed to finalise its harvesting of its pine plantation using the "Guidelines For
     The Management Of Conservation Handback Plantations, 2010” to ensure that the
     opportunities for natural regeneration are maximised. This will be subject to their operational
     requirements such as Workplace Health and Safety. A copy of this document has been
     provided in the Councillors Room by way of background.
   To facilitate the matters above, HQP will enter into a legally binding variation to their current
     PLA agreement with DAF. Their current PLA agreement covers all of their PLA holdings
     across the State and a legal agreement between DAF and HQP will vary that current
     commercial agreement.

4.2. Funding Acquisition Costs
   E&HP, Council and NPA will jointly fund the $3.5M cost of HQP surrendering their PLA in
     equal shares i.e. the E&HP will fund one-third, Council will fund one-third and NPA will fund
     one-third.
   To minimise the risk to Council, E&HP will pay the full amount of $3.5M up front and the
     remaining two-thirds will be paid into an interest bearing account held by E&HP (probably to
     be held by QTC).
   E&HP cannot draw down that two-thirds of the funding until two events occur:
     (i)   the State Forest Land (non PLA land) is substantially Gazetted into National Park (more
           than 90% of that land is expected to be gazetted into National Park within the next year
           or so with the balance being gazetted after 5 years); and
     (ii) Council is made trustee of a Conservation Park for the PLA land (expected to occur
           shortly after 5 years when HQP surrender their PLA). Further details on the tenure
           pathways are set out below.
   Interest on the funds held will be allocated by the State towards Koala protection projects in
     Noosa Shire and the State is required to consult with the Council on potential projects.
   Details on the funding contribution and timing of payments by NPA for their contribution are
     set out below.




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