Centennial Mandalong v Delta Electricity (No.2) [2013] NSWSC 1860

Centennial Mandalong v Delta Electricity (No.2) [2013] NSWSC 1860

Charges related to methane emissions from post-mining activities and from goafs, as estimated under relevant statutory instruments, are a necessary incident of coal production and thus must be included within the 'Government Charges Per Tonne' for the contractual price adjustment formula between the parties.

Parties
Plaintiff: Centennial Mandalong Pty Limited; Defendant: Delta Electricity
Jurisdiction
Australia
Judgment Date
16 December 2013
Procedural Posture
Contract Dispute / Post Judgment; Determination of Relief and Orders
Outcome
Plaintiff entitled to declaration; Defendant to pay costs.
Legal Topics
Contract Interpretation, Pass Through of Government Charges, Carbon Emissions Liability, Methane Emissions From Coal Mining
Contract Law Environmental Law Energy Law Contract Interpretation Pass Through of Government Charges Carbon Emissions Liability Methane Emissions From Coal Mining

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Parties

Centennial Mandalong Pty Limited

Plaintiff

Delta Electricity

Defendant

Procedural Posture

Contract Dispute / Post Judgment; Determination of Relief and Orders

Legal Issues

  1. 1 Whether carbon charges attributable to post-mining activities and goafs are to be included in adjusted coal price under contract
  2. 2 Whether charges for methane emissions from various mining sources are attributable to coal sold to the defendant

Ratio Decidendi

Charges related to methane emissions from post-mining activities and from goafs, as estimated under relevant statutory instruments, are a necessary incident of coal production and thus must be included within the 'Government Charges Per Tonne' for the contractual price adjustment formula between the parties.

Court Disposition

Plaintiff entitled to declaration; Defendant to pay costs.

Orders

  • Declare that the plaintiff is entitled to require the amount of the 'Government Charges Per Tonne' to be adjusted under cl 12.3(c) of contract 5060 for charges incurred under the Clean Energy Act 2011 (Cth) or the Clean Energy (Unit Shortfall Charge - General) Act 2011 (Cth) in respect of covered emissions from the...
  • Order the defendant to pay the plaintiff's costs.