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Turaha v Pok [2023] PGSC 93; SC2433 (11 August 2023)

SC2433


PAPUA NEW GUINEA
[IN THE SUPREME COURT OF JUSTICE]


SCM NO. 44 OF 2021


JOSHUA TURAHA & BUSUNAE POSOU of Isaweri Bupuku Gohu Sub-clan of Isaweri Clan
First Appellants


PAUL SAPAKE & JASON TIRIME of Toale Hongiri Sub-clan of Imawe Bogasi Stock Clan
Second Appellants


YAKS YAKORIA of Tiasapi Sub-clan of Imawe Bogasi Stock Clan
Third Appellant


-V-


HON. DR FABIAN POK, MP – Minister for Petroleum
First Respondent


KEPSY K PUIYE, Acting Secretary for Department of Petroleum
Second Respondent


DAIRI VELE, Secretary for Department of Treasury
Third Respondent


INDEPENDENT STATE OF PAPUA NEW GUINEA
Fourth Respondent


WOLOTOU INCORPORATED LAND GROUP
Fifth Respondent


Waigani: Kariko, Murray & Dowa JJ
2022: 24th November
2023: 11th August


JUDICIAL REVIEW – appeal against refusal of applications for judicial review - ministerial determination - entitlement to royalties and equity grants payable under the Oil & Gas Act 1998 – claim that determination was ultra vires the Act – reliance on gazettal notice itself to rebut claim – matters for consideration in making determination, s 169(2) & (4) of the Act – whether properly considered


Two related applications for judicial review were filed separately in the National Court by different parties which challenged the validity of a ministerial determination purportedly made pursuant to ss 169 & 170 of the Oil & Gas Act 1998. Both applications were heard together and were both dismissed. The applicants appealed the decisions arguing, among others, that the determination was made contrary to the Act and was therefore ultra vires.


Held:


  1. In making a determination under s 169(2) of the Oil & Gas Act 1998 as to the identification of landowners who are properly entitled to equity and royalty benefits under ss 167 and 168 of the Act, the Minister is obliged to consider a number of matters set out in s 169(4).
  2. The Minister failed to consider some of the matters listed in s 169(4), including several court decisions on ownership of land the subject of the determination.
  3. The trial judge erred in finding the Minister fully complied with the requirements of s 169 of the Oil & Gas Act 1998.
  4. Appeal upheld.

Cases Cited:


Soso Tumu for Luhalipu Clan & Ors v The State & Ors [2002] PNGLR 250
Toale Hongiri Incorporated Land Group & Ors v Wolutou Incorporated Land Group & Ors (2016) SC2081
Turaha v Pok (2021) N8995
Wolutou Incorported Land Group v Manau (2021) N8788


Legislation:


Oil & Gas Act 1998
Supreme Court Act


Counsel:


Mr J Haiara, for the Appellants
Mr W Upeke (with leave), for the Fifth Respondent
No appearances for the other Respondents

APPEAL

This is an appeal against the dismissal of applications for judicial review.


11th August, 2023


  1. BY THE COURT: On 4 August 2021, the National Court at Waigani dismissed two related judicial review proceedings that were heard together, one referenced OS (JR) No. 421 of 2018 and the other OS (JR) No. 418 of 2018. The decision has been published as Turaha v Pok (2021) N8995.
  2. The plaintiffs in the National Court have appealed the decision.
  3. The first appellants were plaintiffs in OS (JR) No. 418 of 2018 while the second and third appellants were the plaintiffs in OS (JR) No. 421 of 2018.
  4. The respondents in this appeal were parties in those proceedings. In this judgment, we refer to the first four respondents collectively as the State. The fifth respondent is an incorporated landowner group which also lays claim to the land the subject of the dispute underlying this appeal.

NATIONAL COURT PROCEEDINGS


  1. The proceedings in the National Court concerned applications for judicial review of a Ministerial Determination made on 30 May 2018 by the first respondent, the Minister for Petroleum & Energy (the Ministerial Determination), purportedly pursuant to s 169 and s 170 of the Oil & Gas Act 1998 (the O&G Act).
  2. The Ministerial Determination which was published in the National Gazette No. G362 dated 4 June 2018 (Gazette G362), named the customary landowner beneficiaries and their respective shares to the royalties and equity grants payable under the O&G Act (the Benefits) in respect to the customary land impacted by the PNG LNG Project Pipeline License 4 Segment 6 (Segment 6).
  3. The first appellants filed proceedings OS (JR) No. 418 of 2018 seeking judicial review of the Ministerial Determination, while the second and third appellants filed a similar application referenced OS (JR) No. 421 of 2018.
  4. It was basically alleged in both proceedings that the Ministerial Determination was made contrary to the O&G Act and thereby the Minister acted ultra vires the Act.
  5. The appellants therefore sought declarations that the Ministerial Determination was null and void.

EVIDENCE IN THE NATIONAL COURT


  1. The appellants, then the plaintiffs, presented the only evidence in the National Court.
  2. In proceedings OS (JR) No. 418 of 2018, the first appellants relied on the following filed evidence:
  3. The case for the second and third appellants in proceedings OS (JR) No. 421 of 2018, rested on the:
  4. We summarize the evidence of each witness.

Joshua Turaha


Busunae Posou


Paul Sapake


Jason Tirime


Yaksie Yakoria


PAYMENT OF BENEFITS


  1. Under s 48 of the O&G Act, a development forum shall be convened by the Minister before the first grant of a licence or licences in respect of a petroleum project.
  2. The Benefits which are payable to the project area landowners include an equity benefit (s 167) and royalty benefit (s 168).
  3. The process and procedure for identifying the landowners who are to gain from the benefits is set out in s 169 of the O&G Act. This provision relevantly provides (with emphasis added):

(1) Notwithstanding any other provision of this Act, the persons (other than affected Local-level Governments or affected Provincial Governments) who shall receive the benefits granted by Sections 167 and 168 shall be identified in accordance with this section.

(2) Prior to convening or during a development forum under Section 48, the Minister shall determine, by instrument—

(a) the persons (other than affected Local-level Governments or affected Provincial Governments) who shall receive the benefits granted by Sections 167 and 168; and

(b) the incorporated land groups or, if permitted in accordance with Section 176(3)(f), any other persons or entities who shall represent and receive the benefit on behalf of the grantees of the benefit.

(3) .....................

(4) In making a determination under Subsection (2), the Minister shall consider any agreements by persons who are or claim to be project area landowners, the decisions of courts of Papua New Guinea as to ownership of land or rights in relation to land in the vicinity of the petroleum project in question, the results of social mapping and landowner identification studies carried out in accordance with this Act, and submissions from affected Local-level Governments or affected Provincial Governments of the petroleum project in question or from any other person claiming an interest or to be affected by the decision of the Minister.

(5) ....................

(6) ....................

(7) Where a dispute exists as to which persons or incorporated land groups or other entities should be identified to receive benefits in accordance with this section, the Minister may make a determination under Subsection (2) or may direct that monies or other benefits which are the subject of the dispute shall be held in abeyance pending a resolution of that dispute by other means, and where such a direction is given by the Minister the trustee referred to in Section 176 shall hold such monies or other benefits in accordance with that direction.

(8) .....................

(9) ....................

(10) .....................


  1. Under s 170, the Benefits may be shared by the affected customary landowners in proportions:
  2. The Ministerial Determination stated:

PNG LNG PROJECT PIPELINE LICENSE FOUR (PL No. 4) SEGMENT SIX (6) LANDOWNER BENEFICIARY IDENTIFICATION (LOBID) AND BENEFIT SHARING AGREEMENT


I, the Minister for Petroleum, Hon. Dr. Fabian Pok, MEc PhD. MP. by virtue of Sections 169 and 170 of the Oil and Gas Act 1998 (as amended) and all other powers enabling me hereby make the following Determinations on the sharing of 15.53% of the 28% apportioned for the PNG LNG Pipeline License Four (PL 4) Segment six (6) impacted beneficiary clans including the Buffer zone which are entitle to receive Royalty and Equity.


Having received and considered results of social mapping and landowner identification studies carried out under section 47 of the Oil & Gas Act 1998 (as amended). PNG LNG LOB-ID vetting reports signed intra clan benefit sharing consent forms from the project area. PNG LNG Project Umbrella Benefit Sharing Agreement Act 1998 (as amended) make the following Determination:


  1. Appearing in Schedule 1 are the beneficiary clans identified and verified within PNG LNG Project Pipeline License Four (PL 4) segment six (6) including the pipeline buffer zone under which the beneficiary clans are entitled to royalty ad equity benefits as agreed under the pipeline LBBSA shared in percentage splits as appearing on this Determination.

_______________
SCHEDULE
_______________

Determination on PNG LNG Project Pipeline License 4 (PL 4) Segment Six (6) including the buffer zone along the Pipeline Right of Way as beneficiary clans sharing their 15.53% (converted to 100%) as agreed in the Pipeline LBBSA.


No
BENEFICIARY CLAN
% split
No
BENEFICIARY CLAN
% split

1
2
3
4
5

IMAWE BOGASI
IMAWE KEWA
YESIK MUSONERI
WAFI

12.2
11.2
11.2
11.2
11.2

6
7
8
9

AFU
ISAWERI
MAKOF
MUKURD DIPAN MAKENA

11.2
11.2
13.6
7.0

This Determination supersedes all other Determinations and takes effect immediately.


Dated this 30th day of May, 2018.


Hon. Dr. F. POK, MEc, PhD. MP. K. Puiye,
Minister for Petroleum Director – Oil & Gas Act


D. VELE,

Secretary - Treasury


SUBMISSIONS IN THE NATIONAL COURT


  1. The appellants submitted in the National Court that the Minister contravened s 169(2) of the O&G Act which states that a ministerial determination shall be made before or during the development forum, and that was conducted and concluded in November 2009.
  2. The appellants also contended that in regard to the matters set out in s 169 (4) of the O&G Act which the Minister is obliged to consider in making a determination under s 169(2):
  3. The appellants further asserted that the Minster should have exercised his powers under s 169(7) of the O&G Act which provides that the Minister may direct that the Benefits are kept in trust where there is a dispute as to who are the rightful beneficiaries.
  4. In presenting the foregoing arguments, the appellants stressed that both the National Court and the Supreme Court have determined that customary ownership of the disputed land required resolution by the LTC.
  5. The plaintiff urged the trial judge to note that Cannings J had recently on 6 April in a related proceeding OS (JR) No. 85 of 2020: Wolutou ILG v Manau, which dealt with a dispute that basically involved the same parties as in the present action, ordered that the LTC resolve the question of customary land ownership, and that the State take necessary steps to facilitate the outstanding hearing.
  6. In reply, the State argued that:

JUDGMENT OF THE NATIONAL COURT


  1. After considering the evidence and submissions, the trial judge ordered the dismissal of both proceedings OS (JR) No. 421 of 2018 and OS (JR) No. 418 of 2018 with costs.
  2. His Honour found that the Ministerial Determination was properly made according to law because the relevant gazettal notice stated the Minister had acted under s 169 and s 170 of the O&G Act in issuing the determination: [16] of the judgment.
  3. His Honour also held that if there is any dispute among the landowner beneficiaries identified by the Ministerial Determination, the benefits will be held in abeyance in trust under s 169(7) of the O&G Act pending resolution of the dispute, and therefore the appellants were not prejudiced: [18]-[19] of the judgment.

APPEAL


  1. The appellants contend that the trial judge erred in fact and in law in not finding that the Ministerial Determination was ultra vires the O&G Act and therefore invalid, for these reasons:
  2. The appellants have asked this court to:

CONSIDERATION


  1. We view it appropriate to first determine the appellant’s claim that the Minister did not properly consider the outcomes of several court decisions that relate to the issue of who the proper customary landowners are of the Gobe project area.
  2. Those decisions are significant because they have direct bearing on the underlying issue in the judicial review proceedings and this appeal, namely who are the correct landowners entitled to the benefits under ss 167 and 168 of the O&G Act.
  3. One of the matters set out in s 169(4) of the O&G Act which the Minister shall consider in making a declaration under s 169(2) is “the decisions of courts of Papua New Guinea as to ownership of land or rights in relation to land in the vicinity of the petroleum project in question”.
  4. A history of the disputes between various clans and landowner groups over land impacted by the Gobe project are fully discussed in the cases of Soso Tumu for Luhalipu Clan & Ors v The State & Ors [2002] PNGLR 250 per Kandakasi J, Toale Hongiri Incorporated Land Group & Ors v Wolutou Incorporated Land Group & Ors (2016) SC2081 per Sawong, Toliken & Higgins JJ, and Wolutou Incorported Land Group v Manau (2021) N8788 per Cannings J.
  5. We set out a summary of the history, highlighting relevant litigation:
  6. When the Ministerial Determination was issued on 30 May 2018:
  7. The various court decisions dealing with the dispute (which include the decisions of Sheehan J, Kandakasi J and the Supreme Court) were not referred to in the Ministerial Determination. We think it therefore proper and safe to conclude that the decisions were not considered by the Minister.
  8. Similarly, the Ministerial Determination did not state that the Minister considered these other matters as required of him under s 169(4):
  9. We find therefore that the Minister did not comply with the requirements of s 169(4), and the trial judge erred in suggesting to the contrary at [16] of the judgment in finding that because Gazette G362 stated that the Minister had acted in accordance with s 169 of the O&G Act and that was conclusive evidence that the Minister had complied with the law.
  10. The error was compounded when the learned trial judge further stated at [22]-[24] of the judgment that while the Courts had ordered for the LTC to settle the landownership disputes, they had not specifically restrained the payments of the benefits under the O&G Act, and therefore the Minister was entitled to make the determination pursuant to the Act. The fact of the matter is that the Minister did not consider the court decisions which he was required by law to do.
  11. This error by the trial judge is sufficient reason for this Court to uphold this appeal and set aside the orders of the National Court.
  12. On that basis, we do not think it necessary to consider the other grounds of appeal, except to briefly add that the trial judge also wrongly held that the benefits would be held in trust under s 169(7) of the O&G Act pending resolution of any land dispute, when the Ministerial Determination did not state this.
  13. It is our view that the circumstances of this case do not warrant the applications for judicial review being remitted to the National Court to be re-heard.
  14. This Court has read all the evidence and the submissions presented in the court below, and we propose to exercise our power under s 16(c) of the Supreme Court Act and give such judgment that should have been given in the first instance.
  15. Our decision is that the applications for judicial review of the Ministerial Determination are granted on the basis that it was made ultra vires s 169(4) of the O&G Act, and we declare the determination null and void.
  16. As to costs, we are of the view that the State should pay the appellants’ costs of the National Court proceeding and this appeal.
  17. By way of additional remarks, we would encourage the interested landowners to follow up with the progress in the directions given by Cannings J in Wolutou Incorported Land Group v Manau (supra) for the outstanding land dispute to be reheard and settled by the Land Titles Commission.

ORDERS


(1) The appeal is upheld.

(2) The decision of the National Court given on 4 August 2021 in proceedings OS (JR) No. 421 of 2018 and OS (JR) No. 418 of 2018 is quashed.

(3) The applications for judicial review sought in those proceedings are granted.

(4) The Determination made on 30 May 2018 by the Minister for Petroleum & Energy under the Oil & Gas Act 1998 and published in the National Gazette No. G362 dated 4 June 2018, regarding beneficiaries within PNG LNG Project Pipeline License Four (4) Segment Six (6), is ultra vires s 169 of the Act and is declared null and void.

(5) The State shall pay the appellants’ costs of both the National Court proceeding and this appeal, to be taxed if not agreed.

(6) Time for entry of the order be abridged to the time of settlement which shall take place forthwith.

________________________________________________________________
Haiara’s Legal Practice: Lawyers for the Appellants
Office of the Solicitor General: Lawyers for the First to the Fourth Respondents


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