2018-06-27 SM - Attachment 2 to Item 1 - Draft Funding Deed

EV ¥ \                              Special Meeting Agenda
                                          RSENS       olf                          27 June 2018
                                             CSA)                             Attachment 2 to Item 1
                                           QXgIaN
                                          Queensland
                                          Government

                                  Deed of Funding
                 made at Brisbane on the          day of                   2018
 Between        State of Queensland acting through the Department of Environment and Science ABN 46
                640 294 485 (Department)
                Noosa Shire Council ABN 97 969 214 121 (Council) and
                Noosa Parks Association Incorporated ABN 18 870 049 909 (Association)
                (together, the Council and the Association are referred to as the Contributors)
 Background:
A.       The Department, the Department of Agriculture and Fisheries (DAF), Council, the Association and
         Hancock Queensland Plantations (HQP) are parties to a memorandum of understanding dated 18
         October 2017 outlining an intent to convert the Yurol and Ringtail State Forests to protected area
         tenure under the NCA.
B.       The relevant State Forest Land is made up of approximately 1,492 ha of Plantation Licence Area
         (PLA) in favour of HQP under the Forestry Act 1959 and approximately 910 ha of State Forest
         Timber Reserve not subject to.a plantation licence (Non-PLA).
 C.      The Department intends to transfer the sum of $3.5 Million to DAF to enable DAF to compensate
         HQP for relinquishing its harvest and any other rights under its plantation licence over the PLA
         within five years (Acquisition Costs), such funding and acquisition arrangements are to be
         recorded in an agreement between HQP and DAF (HQP/DAF Agreement) to be executed upon
         receipt by DAF of the Acquisition Costs from the Department, no later than 14 days from the date of
         transfer of the Acquisition Costs. The parties to this deed acknowledge that the HQF/DAF
         Agreement is ready for signature, pending completion of this deed.
 D.      As part of the HQP/DAF Agreement, DAF will facilitate amendments to HQP’s plantation licence
         with respect to the Yurol and Ringtail PLA so that within five years of the date of the HQP/DAF
         Agreement, HQP no longer has any rights or interest over the PLA.
 E:      HQP has indicated it will relinquish the right to harvest any hardwood in the PLA from the date of
         the HQP/DAF Agreement. However, HQP will retain its rights to harvest pine within the PLA for 5
         years from the date of the HQP/DAF Agreement.
 F.      DAF will retain access to state-owned hardwood plantations on State forests for up to 5 years from
         the date of execution of the HQP/DAF Agreement, with the specific areas of interest delineated on
         the Plan and marked “State Hwd Plantations — DAF interest about (136.38ha)”.
G.       Council and the Association have agreed to make the Funding Contribution to the Acquisition
         Costs.
 H.      The intent is that the former PLA will commence transition to protected area tenure under the NCA
         with Council as trustee within 5 years of the HQP/DAF Agreement or on completion of HQP’s pine
         harvest activities or DAF’s harvesting activities, whichever occurs the earliest.
 l;      The parties now enter into this deed in order to record the terms of the funding arrangements and

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