The National Court has dismissed a proceeding filed by landowners of the Hides area in the Southern Highlands Province against Gas developers, the Department of Petroleum and Energy and the State.
Justice Derek Hartshorn handed down the decision on Thursday (Dec 3) on questions that were raised by the landowners representing clans of the areas Hides 1,2,3 and 4, Angore, South East Mananda, Moran and Juha fields.
The case arose from a Gas agreement that the state entered into on May 22, 2008 for the purpose of commercial production of natural gas in various locations in the Southern Highlands province.
The landowners filed the motion through a writ of summons seeking a declaration from the court to declare that the Gas Agreement of 2008 is void.
It was filed on grounds that the Gas Agreement or at least parts of it were void and that it was made without compliance with mandatory provisions of the Organic Law Act and the Organic Law on Provincial and Local Level Governments.
A total of 11 questions were raised in the motion for the court to determine.
Among those questions was whether the Gas Agreement complied with the requirements of section 115 of the Organic Law which is mandatory or directory.
The court was to determine section 115 of the Organic Law “whether,
1) There is a proposal to develop a natural resource in a province or provinces, the appropriate National Minister designated by the National Executive Council shall consult with the provincial government in the province or provinces where the natural resources is situated,
2) The National Government, the provincial government and the local level government in the province or provinces where the natural resource is situated, shall liaise fully with the landowners in the development of the natural resource,
3) In this section, unless contrary intention appears, “natural resource” has the same meaning as it has in section 98” of the Organic Law.
The landowners submit that compliance was mandatory as Justice Ambeng Kandakasi had ruled earlier as the matter is a case which has already been decided on and is no longer subject to appeal.
However Justice Hartshorn found that Justice Kandakasi did not make a decision that Section 115(2) of the Organic Law was a mandatory obligation on the part of the State.
He however found that Justice Kandakasi’s earlier ruling was a refusal to allow the Department of Petroleum and Energy and the State to amend their defence.
Justice Hartshorn also found that section 115 of the Organic Law was directory and not a mandatory provision and did not provide for a proposal to develop a natural resource shall not be approved until there has been consultation with the provincial government.
In dealing with each of the 11 questions, Justice Hartshorn found that each of the claims for declaratory relief in the amended statement of claims could not succeed.
He also found that the amended statement of claims does not plead any cause of action entitling the landowners to any other relief.
He dismissed the proceeding, ordering the landowners to pay the cost.
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