2021-09-13 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                              13 SEPTEMBER 2021


To assist Councillors, an extract of that July 2020 report is contained in attachment 2. It provides a
good summary of the negotiations that have been underway for the last 2 years in relation to the
Greenfleet / Kabi Kabi inclusion in this project. In July 2020, the Council resolved to authorise the
CEO to continue those negotiations and to advise the State government that Council supported “in
principle” the proposal by Greenfleet to undertake environmental remediation works in the Yurol
Ringtail project area. Further, at that time, the Council noted that the CEO would provide a further
report to Council once those negotiations were complete and to outline any changes required to
existing contracts.
That is the purpose of this report.
3.    Update on harvesting and progress
Under the existing agreements, HQP had 5 years from the signing of the contract to complete its
harvest of its existing pine areas held under their Plantation Licence Area (PLA) tenure i.e. by
October 2023. At the most recent Transition Committee meeting, HQP advised that subject to
weather, site conditions and contractual arrangements, it was likely to complete its harvest
obligations by February 2022 - some 18 months ahead of schedule.
Throughout this project, HQP has been an exemplary corporate citizen working cooperatively with
all parties to achieve the agreed outcomes.
Under the existing agreements, DAF had 5 years from the signing of the contract to remove
plantation hardwood from state forest areas i.e. by October 2023. At the most recent Transition
Committee meeting, DAF advised that subject to weather etc, they will have most, but not all, of their
plantation hardwood removed by February 2022 as well. They will have some very small areas that
are more difficult to access to be completed after that time and these will likely be finished during
2022.
In short, the overall project is approximately 18 months ahead of schedule subject to some minor
finalisation of hardwood areas by DAF.
As harvesting is finalised in each area, the Transition Committee identifies which parcels can be
readied for transfer into National Park tenure. QPWS is prepared to accept these harvested parcels
as national park on the basis that natural regeneration is already occurring and in recognition of the
proposed rehabilitation commitment by Greenfleet (more details below). Further, most of these
harvested areas are surrounded by natural forest which will support natural regeneration.
Also, as identified in earlier reports, NPA is paying their proportion (one third of $3.5M) of the PLA
(pine area) acquisition cost over a number of years. NPA are on schedule with all of their payments
under the funding agreement having paid the initial payment of $541,666 in October 2018. They are
also meeting their obligation to pay $125,000 pa for 5 years having paid the first two amounts in
2019 and 2020. Their 2021 payment is due shortly. They have two further annual payments due in
2022 and 2023 which will conclude their financial commitment.
4.    New Parties to the Agreement
As advised to Council in the last update report in 2020, negotiations had been underway to bring on
further project partners. In May 2020, Council passed the following resolution: -
Ordinary Meeting Minutes, 16 July 2020, Item 3, Page 9
That Council note the report by the Chief Executive Officer to the Planning & Environment Committee
Meeting dated 7 July 2020 regarding the Yurol Ringtail Environmental Project and:
A.    Note that the project remains on track with all milestones to date being met;
B.    Authorise the CEO to continue negotiations between the existing project partners and
      Greenfleet as outlined in the report and further, advise the State government that Council
      supports “in principle’ the proposal by Greenfleet to undertake environmental remediation work
      in the Yurol Ringtail project area; and
C.    Note that the CEO will provide a further report to Council once those negotiations are further
      advanced outlining details of any changes required to existing contracts.
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