Photo by: Bloomberg
PERTH (miningweekly.com) – Oil and gas explorer Lake Oil has launched a A$2.7-billion legal claim against the Victorian government, after the state government announced plans to ban hydraulic fracturing (fracking).
“The unjust and unlawful actions of the Victorian government, and its proposed Bill to ban onshore exploration, have caused significant losses to the company and its 11 000 long-standing shareholders,” Lake Oil said in a statement on Wednesday.
The company is claiming A$92-million in damages for past expenditure and a further A$2.6-billion in lost future earnings.
In a writ, filed in the Supreme Court of Victoria, Lake Oil asserts that the actions of the Victorian Minister for Resources, in depriving the company of its opportunity to use its exploration permits, constitute a derogation from those granted permits.
“The derogation from grant claim is based upon a fundamental legal principal that a party, having given a thing with one hand, is not to take away the means of enjoying it with the other,” Lake Oil said.
The Victorian government in November introduced legislation to Parliament to permanently ban fracking in the state. If passed by Parliament, the Bill will permanently ban all onshore unconventional gas exploration and development, including fracking and coal seam gas, and will extend the moratorium on conventional onshore gas exploration and development to June 30, 2020.
Lake Oil told shareholders that the company was in discussion with parties regarding potential provision of funds specifically for the derogation from grant proceedings.