THE MEREENIE LEASE NEGOTIATIONS IN THE AMADEUS BASIN-AN HISTORICAL PERSPECTIVE

Abstract

Following the discovery of oil and gas, the Mereenie Joint Venture (MJV) applied for a production lease in November 1973. However, the Aboriginal Land Rights Act NT 1976 came into operation in January 1977 and the MJV was thereby required to negotiate with the Central Land Council in order to be granted the lease. The CLC was reluctant to proceed with negotiations because of the difficulty of identifying traditional owners. After 22 communications with the Council, the MJV grew impatient and the Northern Territory Government advised them to engage the author to assist in expediting the negotiations. After an intense period from March to November 1979 in which the traditional owners were identified and some violent exchanges occurred, agreement was reached on the financial terms. The Mereenie lease, which was the first petroleum lease on Aboriginal land, was granted on 18 November 1981. At present oil is piped to Brewer Estate in Alice Springs and then transported by rail to Port Stanvac in South Australia. Gas is transported to the Channel Island Power Station near Darwin via a 1,485 km pipeline. Aboriginal traditional owners receive royalty payments from all petroleum produced from Mereenie, in addition to sharing a 10% statutory royalty under the NT petroleum ordinance. The Mereenie agreement stands as a precursor to all agreements on Aboriginal land in central Australia.