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Supreme Court of Papua New Guinea |
PAPUA NEW GUINEA
[IN THE SUPREME COURTOF JUSTICE]
SCCA 4 OF 2023 (IECMS)
APPLICATION PURSUANT TO CONSTITUTION
SECTION 18(1)
APPLICATION BY SIMON EKANDA
First Applicant
AND:
HELA TUGUBA LABANDA INCORPORATED
Second Applicant
AND
HON. PILA NININGI MP, ATTORNEY GENERAL OF PAPUA NEW GUINEA
Intervener
Waigani: Salika CJ, Gavara Nanu J, David J, Hartshorn J and Murray J.
2024: 29th August & 4th December
CONSTITUTIONAL LAW – Application – Constitution; ss.18 (1), 53, 212B (as amended)- Hydrocarbons and natural resources under customary land – Ownership - Customary landowners – Whether Constitution; s. 53 vests ownership of hydrocarbons and natural resources in customary landowners - Constitution; s.212B (as amended) and Oil & Gas Act, 1998; s.6 vest ownership of hydrocarbons and natural resources in the State – Whether Constitution; s.212B (as amended) and Oil and Gas Act, 1998; s.6 in breach of Constitution s. 53 - Standing of the Applicants.
Facts
The First Applicant is from the Hela Province. He says his tribe owns the customary land in which Hides, Angore, and Juha Gas Projects PDLS 1, 7, 8 and 9 are situated.
The Second Applicant is an Association incorporated under the Association Incorporation Act, 1966. The First Applicant and his fellow tribesmen and women are members of the Second Applicant. The Second Applicant represents its members in negotiations and formal agreements relating to benefit sharing and equity participation in natural resources including hydrocarbons and raw minerals on and in their customary land. Thus, the Second Applicant was formed to pursue ownership and equity rights of its members and participated in the PNG-LNG Agreement in 2008 and the Umbrella Benefit Sharing Agreement in 2009.
The Applicants say they are aggrieved by s. 212B of the Constitution (as amended) and s. 6 of the Oil and Gas Act, 1998, which vest ownership of hydrocarbons and other natural resources (mineral resources), in their natural state, such as the above-mentioned Gas Projects in the State.
The Applicants claim s. 212B of the Constitution (as amended) and s. 6 of Oil and Gas Act, 1998 which vest ownership of natural and mineral resources in the State, are in breach of s. 53 of the Constitution, which the Applicants claim protects their ownership right of the resources that are found on and in their customary land, such as the hydrocarbons and other the mineral resources.
Held
Cases Cited:
Papua New Guinean Cases
Application by Edward Mike Jondi in his capacity as General Secretary of PNG Party (2016) SC1561
Application by Hon. Douglas Tomuriesa (2024) SC2594
Application by Hon. Douglas Tomuriesa MP (2024) SC2610
Application of Justice Foundation for Porgera Limited (2002) SC2257
Avia Aihi v. The State [1981] PNGLR 81
Donigi v The State [1991] PNGLR 376
Justice Sir Bernard Sakora (2020) SC1980
Kuman v. Digicel (PNG) Ltd (2019) SC1851
Leo Maniwa v. Aron Malijiwi (2013) N5687
Louis Siu v. Wasima Land Group Incorporated (2011) SC1107
Minister for Lands v. Frame [1980] PNGLR 433
Namah v Kua [2014] PNGLR 422
Namah & Geno v O’Neil (2015) SC1617
Namah v Pato [2014] PNGLR 150
Peter Donigi v. Base Resources Ltd [1992] PNGLR 110
Philo Aufa v. Richard Pii (2018) N750
PNG Aviation Services Ltd v. Geobb Karri (2009) SC1002
Png Ready Mixed Concrete Pty Ltd v. The State [1981] PNGLR 396
Reference by Fly River Provincial Executive (2007) SC917
Reference No 2 of 2018 – Reference by The Ombudsman Commission pursuant to Constitution s. 19 (1) of the Constitution –
Re: The Public Money Management Regulation Act, 2017 (2020) SC1944
Re: Petition of M T Somare [1981] PNGLR 265
Takori v. Yagari (2008) SC905
Talibe Hegele v. Tony Kila (2012) SC1180
Tzen Plantations Ltd v. Open Bay Timbers Ltd (2014) SC1380
Wilson v. Kuburam [2016] PGSC 7; SC1489
Overseas Cases
Carl-Zeiss Stiftung v. Rayner and Keeler Ltd and Others (1966) 2 All ER 536
Counsel:
J. Wohuinangu and K. Bun, for the Applicants
N. Pilamb, for the Intervener, the Attorney General
4th December 2024
DO THE APPLICANTS HAVE STANDING?
The Second Applicant:
APPLICANTS SUBMISSIONS
PRINCIPLES
THE LAW
He has not established he is a landowner or the landowner of the subject land in these proceedings. The subject land referred to by the applicant in his application is customary land. The relevant statute that determines ownership of customary land is the Land Dispute Settlement Act (LDSA). There is a process under the LDSA to resolve disputes relating to ownership of traditional land in PNG. If Mr Simon Ekanda is claiming to be the owner of the subject traditional land, he needs to show this Court that he has been declared by the Local Land Court or a Provincial Land Court to be the owner of the subject land. With respect, he cannot just assert ownership of the subject land without the land being awarded to him by the Local Land Court or a Provincial Land Court in a proceeding commenced under the LDSA.
B. The Issues
53. Protection from unjust deprivation of property.
(1) Subject to Section 54 (special provision in relation to certain lands) and except as permitted by this section, possession may not be compulsorily taken
of any property, and no interest in or right over property may be compulsorily acquired, except in accordance with an Organic Law or an Act of the Parliament, and unless—
(a) the property is required for—
(i) a public purpose; or
(ii) a reason that is reasonably justified in a democratic society that has a proper regard for the rights and dignity of mankind, that is so declared and so described, for the purposes of this section, in an Organic Law or an Act of the Parliament; and
(b) the necessity for the taking of possession or acquisition for the attainment of that purpose or for that reason is such as to afford reasonable justification for the causing of any resultant hardship to any person affected.
(2) Subject to this section, just compensation must be made on just terms by the expropriating authority, giving full weight to the
National Goals and Directive Principles and having due regard to the national interest and to the expression of that interest by
the Parliament, as well as to the person affected.
(3) For the purposes of Subsection (2), compensation shall not be deemed not to be just and on just terms solely by reason of a fair
provision for deferred payment, payment by instalments or compensation otherwise than in cash.
(4) In this section, a reference to the taking of possession of property, or the acquisition of an interest in or right over property,
includes a reference to—
(a) the forfeiture; or
(b) the extinction or determination (otherwise than by way of a reasonable provision for the limitation of actions or a reasonable law in the nature of prescription or
adverse possession),
of any right or interest in property.
(5) Nothing in the preceding provisions of this section prevents—
(a) the taking of possession of property, or the acquisition of an interest in or right over property, that is authorized by any other
provision of this Constitution; or
(b) any taking of possession or acquisition—
(i) in consequence of an offence or attempted offence against, or a breach or attempted breach of, or other failure to comply with
a law; or
(ii) in satisfaction of a debt or civil obligation; or
(iii) subject to Subsection (6), where the property is or may be required as evidence in proceedings or possible proceedings before
a court or tribunal,
in accordance with a law that is reasonably justifiable in a democratic society that has a proper regard for the rights and dignity
of mankind; or
(c) any taking of possession or acquisition that was an incident of the grant or acceptance of, or of any interest in or right over,
that property or any other property by the holder or any of his predecessors in title; or
(d) any taking of possession or acquisition that is in accordance with custom; or
(e) any taking of possession or acquisition of ownerless or abandoned property (other than customary land); or
(f) any restriction on the use of or on dealing with property or any interest in or right over any property that is reasonably necessary
for the preservation of the environment or of the national cultural inheritance.
(6) Subsection (5)(b)(iii) does not authorize the retention of any property after the end of the period for which its retention is
reasonably required for the purpose referred to in that paragraph.
(7) Nothing in the preceding provisions of this section applies to or in relation to the property of any person who is not a citizen
and the power to compulsorily take possession of, or to acquire an interest in, or right over, the property of any such person shall
be as provided for by an Act of the Parliament. (My emphasis).
34. Section 54 provides as follows: -
54. Special provision in relation to certain lands.
Nothing in Section 37 (protection of the law) or 53 (protection from unjust deprivation of property) invalidates a law that is reasonably
justifiable in a democratic society that has a proper regard for human rights and that provides—
(a) for the recognition of the claimed title of Papua New Guinea to land where—
(i) there is a genuine dispute as to whether the land was acquired validly or at all from the customary owners before Independence
Day; and
(ii) if the land were acquired compulsorily the acquisition would comply with Section 53(1) (protection from unjust deprivation of
property); or
(b) for the settlement by extra-judicial means of disputes as to the ownership of customary land that appear not to be capable of
being reasonably settled in practice by judicial means; or
(c) for the prohibition or regulation of the holding of certain interests in, or in relation to, some or all land by non-citizens.(My emphasis).
(1) Hydrocarbons and minerals in their natural state are, and always have been, the property of Papua New Guinea.
(2) An Organic Law may make further provision in respect of Papua New Guinea’s interests in hydrocarbons and minerals, including the development of, disposal of, and dealing with the consolidation and commercialisation of those interests. (My emphasis).
37. The Applicants also challenge the Constitutional validity of s. 6 of Oil and Gas Act, 1998.
38. Section 6 of Oil and Gas Act provides as follows: -
(1) Subject to this Act, but notwithstanding anything contained in any other law or in any grant, instrument of title or other document, all petroleum and helium at or below the surface of any land is and shall be deemed at all times to have been, the property of the State.
(2) Nothing in Subsection (1) shall be construed as an additional acquisition of property in relation to Section 53 of the Constitution beyond that which prevailed under the former Act and all previous Acts.
(3) Petroleum and helium shall not be removed from the land from which it has been obtained, or disposed of in any manner, except -
(a) subject to Subsection (4), by a tenement holder, for the purpose of sampling or analysis; or
(b) by a tenement holder in accordance with the terms of his tenement or a written agreement with the State; or
(c) as otherwise permitted by this Act.
(4) A licensee shall not take or send out of the country any samples of petroleum or helium without the written consent of the Director. (My emphasis).
39. The requirements of ss. 53 and 212B of the Constitution (as amended) and s. 6 of the Oil and Gas Act are pivotal, thus they require proper interpretation. To do this, it is proper to turn to the Constitutional Planning Committee Report (“the CPC Report” hereon) which pursuant to s. 24 of the Constitution is an aid to interpreting Constitutional provisions, especially in view of the types of relief sought by the Applicants.
C. The CPC Report
40. At page 2/1 of the CPC Report, the Constitutional Planning Committee (“the CPC” hereon) asked the question – What kind of society Papua New Guinea wanted, and in giving relevance to the “Eight Improvement Aims” formulated by the government, the CPC said the following: -
What kind of society do we want?
The relevance of the Eight Improvement Aims
Over the last two years, there has been much discussion about the kind of society that our people want. There was a wide-ranging debate on the socio-economic aspects of this topic in the House of Assembly last year resulting in the adoption by unanimous decision of certain fundamental guidelines for national improvement known as the "Eight Aims". These are:
(i) a rapid increase in the proportion of the economy under the control of Papua New Guinean individuals and groups, and in the proportion of personal and property income that goes to Papua New Guinea;
(ii) more equal distribution of economic benefits, including movement toward equalisation of incomes among people and toward equalisation of services among different areas of the country;
(iii) decentralisation of economic activity, planning and government spending, with emphasis on agricultural development, village industry, better internal trade and more spending channelled to local and area bodies;
(iv) an emphasis on small-scale artisan, service and business activity, relying where possible on typically Papua New Guinean forms of economic activity;
(v) a more self-reliant economy, less dependent for its needs on imported goods and services and better able to meet the needs of its people through local production;
(vi) an increasing capacity for meeting government spending needs from locally raised revenue;
(vii) a rapid increase in the active and equal participation of women in all forms of economic and social activity;
(viii) government control and involvement in those sectors of the economy where control is necessary to achieve the desired kind of development.
There are several basic principles which lie behind these aims. These have been summed up in the ideas of Equality, Self-Reliance and Rural Development. The Government has clearly stated its commitment to these aims in developing the country's human and natural resources to bring about improvement in the lives of our people, and there is general consensus on these principles all over the country.
In evolving the National Goals and Directive Principles of Policy which we propose should be incorporated in the Constitution, we have taken full account of the Eight Aims. The Goals and Directive Principles we recommend are broader and more comprehensive than the Aims in that they provide for the full development of our people, whereas the Aims emphasize the economic aspects of our society. The Goals and Principles are generally consistent with the Aims but are more specifically aimed at achieving a free and just society in Papua New Guinea.
We did not determine these national goals in a matter of days or weeks. We have distilled them after a great deal of thought and discussion over the twenty-two months during which our Committee has been at work. During that time, as we have mentioned in our Introduction, we held well over one hundred public meetings in all parts of the country, and we received thousands of submissions, verbally and in writing, many of which were concerned either directly or indirectly, with the type of society we should seek to build for ourselves.
We believe that these goals, and the principles which should guide the government and our people in order to achieve them, express the needs and aspirations of our people in meaningful terms, and that they are stated in such a manner that people will readily understand and remember them. The particular form in which they have been cast - spelling out the goals first, and then stating the goals and the principles - is intended to assist our people to fully understand and appreciate them.
We consider that they should be given the widest possible publicity at all levels of government; in towns and villages; in schools and tertiary institutions; in churches and other organizations so that our people will become fully aware of them, discuss them and obtain a clear sense of the direction in which our country is heading. It should give each man and woman a clear appreciation of the need for him or her to participate fully in the building of our new nation - a nation which is firmly based on equality and social justice. (My emphasis).
41. At page 2/18 of the CPC Report, the CPC among others, said this in respect of “Papua New Guinea Equity”: -
Papua New Guinean Equity
We recommend that the equity of the Government and of citizens should be maximized in the case of all large-scale enterprises for the exploitation of natural resources; that this equity should normally be as great as possible and should constitute at least a majority shareholding. This proposed provision is in line with the resolution passed by the House of Assembly in November, 1972 in relation to mining enterprises. We believe it should be extended to all enterprises for the exploitation of natural resources, as similar considerations apply to these other industries. (My emphasis).
42. In commenting on “Protection from Deprivation of Property”, which is relevant to s. 53 of the Constitution, the CPC in referring to some developing countries which had problems with the development of their mineral resources, the CPC Report at pp 5/1/14 and 5/1/15, recommended among others, the following: -
...Apart from the limitation of its scope to Papua New Guinean citizens, the provision we recommended is somewhat similar to the equivalent section of the Ordinance. However, there are two other significant differences between the respective provisions. The first is that instead of using the phrase “on just terms” in respect of the power to deprive a person of his property (which is identical to that used in section 51 (xxxxi) of the Australian Constitution) we have preferred to use the phrase “in accordance with principles of justice”. This latter phrase we propose should be interpreted so as to give full weight to the National Goals and Directive Principles in the Constitution, to the national interest (and in particular to that expression of that interest by Parliament) as well as to the interests of the person deprived of his property. The effect of this recommendation should be that the courts will not simply follow the precedents from Australia in assessing whether or not laws providing for the payment of compensation for the acquired property are valid, but will give weight to the interests of the people of the country as a whole, and in particular, to parliament’s interpretation of those interests, as well as to the interests of the individuals concerned. (My emphasis).
43. The CPC Report in recommending the implementation of Goals and Principles at p.2/15 said among others, this: -
IMPLEMENTATION OF THE GOALS AND PRINCIPLES
1. All activities of the State and its institutions should be based on the directive principles and directed towards achieving the National Goals set out in this chapter.
2. The goals and principles as a guide in judicial interpretation
(1) All courts and other adjudicatory tribunals shall be guided in the exercise of their functions by the National Goals and Directive Principles.
(2) Except to the extent provided for in this recommendation, the National Goals and Directive Principles shall not be directly justiciable. However, these goals and principles should not be regarded by any court, other adjudicatory tribunal or institution of government as being of less weight than other directly justiciable provisions. (My emphasis).
D. The Constitutional framework
44. The Preamble of the Constitution is in my view the relevant starting point and it is determinative; it states and declares among others, the following: -
By authority of our inherent right as ancient, free and independent peoples.
WE, THE PEOPLE, do now establish this sovereign nation and declare ourselves, under the guiding hand of God, to be the Independent
State of Papua New Guinea.
AND WE ASSERT, by virtue of that authority
· that all power belongs to the people—acting through their duly elected representatives;
· that respect for the dignity of the individual and community interdependence are basic principles of our society;
· that we guard with our lives our national identity, integrity and self-respect;
· that we reject violence and seek consensus as a means of solving our common problems;
· that our national wealth, won by honest, hard work be equitably shared by all
WE DO NOW THEREFORE DECLARE
that we, having resolved to enact a Constitution for the Independent State of Papua New Guinea
AND ACTING through our Constituent Assembly on 15 August 1975
HEREBY ESTABLISH, ADOPT and GIVE TO OURSELVES this Constitution to come into effect on Independence Day, that is 16 September 1975.
IN SO DOING WE, THE PEOPLE OF PAPUA NEW GUINEA, SET BEFORE OURSELVES THESE NATIONAL GOALS AND DIRECTIVE PRINCIPLES THAT UNDERLIE OUR
CONSTITUTION: —
National Goals and Directive Principles
WE HEREBY PROCLAIM the following aims as our National Goals, and direct all persons and bodies, corporate and unincorporate, to be guided by these our declared Directives in pursuing and achieving our aims: -
2. Equality and Participation.
We declare our second goal to be for all citizens to have an equal opportunity to participate in, and benefit from, the development
of our country.
WE ACCORDINGLY CALL FOR—
(1) an equal opportunity for every citizen to take part in the political, economic, social, religious and cultural life of the country; and
(2) the creation of political structures that will enable effective, meaningful participation by our people in that life, and in view
of the rich cultural and ethnic diversity of our people for those structures to provide for substantial decentralization of all forms
of government activity; and
(3) every effort to be made to achieve an equitable distribution of incomes and other benefits of development among individuals and
throughout the various parts of the country; and
(4) equalization of services in all parts of the country, and for every citizen to have equal access to legal processes and all services,
governmental and otherwise, that are required for the fulfilment of his or her real needs and aspirations; and
(5) equal participation by women citizens in all political, economic, social and religious activities; and
(6) the maximization of the number of citizens participating in every aspect of development; and
(7) active steps to be taken to facilitate the organization and legal recognition of all groups engaging in development activities;
and
(8) means to be provided to ensure that any citizen can exercise his personal creativity and enterprise in pursuit of fulfilment that
is consistent with the common good, and for no citizen to be deprived of this opportunity because of the predominant position of
another; and
(9) every citizen to be able to participate, either directly or through a representative, in the consideration of any matter affecting
his interests or the interests of his community; and
(10) all persons and governmental bodies of Papua New Guinea to ensure that, as far as possible, political and official bodies are
so composed as to be broadly representative of citizens from the various areas of the country; and
(11) all persons and governmental bodies to endeavour to achieve universal literacy in Pisin, Hiri Motu or English, and in "tok ples"
or "ita eda tano gado"; and
(12) recognition of the principles that a complete relationship in marriage rests on equality of rights and duties of the partners,
and that responsible parenthood is based on that equality. (My emphasis).
45. Section 4 provides as follows: -
4. Natural resources and environment.
We declare our fourth goal to be for Papua New Guinea's natural resources and environment to be conserved and used for the collective
benefit of us all, and be replenished for the benefit of future generations.
WE ACCORDINGLY CALL FOR—
(1) wise use to be made of our natural resources and the environment in and on the land or seabed, in the sea, under the land, and
in the air, in the interests of our development and in trust for future generations; and
(2) the conservation and replenishment, for the benefit of ourselves and posterity, of the environment and its sacred, scenic, and
historical qualities; and
(3) all necessary steps to be taken to give adequate protection to our valued birds, animals, fish, insects, plants and trees. (My emphasis).
22. Enforcement of the Constitution.
The provisions of this Constitution that recognize rights of individuals (including corporations and associations) as well as those
that confer powers or impose duties on public authorities, shall not be left without effect because of the lack of supporting, machinery or procedural laws, but the lack shall, as far as practicable,
be supplied by the National Court in the light of the National Goals and Directive Principles, and by way of analogy from other laws,
general principles of justice and generally-accepted doctrine. (My emphasis).
47. Section 25 is under PART III – BASIC PRINCIPLES OF GOVERNMENT, it relevantly provides as follows: -
PART III — BASIC PRINCIPLES OF GOVERNMENT.
Division 1— National Goals and Directive Principles.
25. Implementation of the National Goals and Directive Principles.
(1) Except to the extent provided in Subsections (3) and (4), the National Goals and Directive Principles are non-justiciable.
(2) Nevertheless, it is the duty of all governmental bodies to apply and give effect to them as far as lies within their respective
powers.
(3) Where any law, or any power conferred by any law (whether the power be of a legislative, judicial, executive, administrative or
other kind), can reasonably be understood, applied, exercised or enforced, without failing to give effect to the intention of the
Parliament or to this Constitution, in such a way as to give effect to the National Goals and Directive Principles, or at least not
to derogate them, it is to be understood, applied or exercised, and shall be enforced, in that way.
(4) Subsection (1) does not apply to the jurisdiction of the Ombudsman Commission or of any other body prescribed for the purposes
of Division III.2 (leadership code), which shall take the National Goals and Directive Principles fully into account in all cases
as appropriate. (My emphasis).
E. Reasons for decision
48. The recommendation by the CPC in its Report that the National Goals and Directive Principles should not be directly justiciable was incorporated in s. 25 (1) of the Constitution. Notably, Sub-section (2), permits the governmental bodies to apply and give effect to the National Goals and Directive Principles in exercising their respective powers. Under Sub-section (3) there is in my view a duty placed on a body or bodies exercising power, be it legislative, judicial, executive, administrative or other kind; to enforce and give effect to the intention of the Parliament or the Constitution in ways that will give effect to the National Goals and Directive Principles, ant not to derogate them. Thus, there is a mandatory requirement on such bodies, including the Courts to understand, apply and or exercise their powers in such ways to enforce the National Goals and Directive Principles. For myself, that requirement is plenary and determinative, and it puts an end to the matter. Thus, in the case of the Court, when exercising its judicial power, it is prohibited by the Constitution under s. 25 (1) from interpreting s. 53 in a way that will result in the derogation of the National Goals and Directive Principles. To me, that is what the Applicants are attempting to do in this Application, viz; invoke s. 53 to ask the Court to declare that mineral resources under their customary land are owned by them. The Court’s exercise of its power in that way will inevitably result in the derogation of the National Goals and Directive Principles this is evident from the terms of the Application, which in essence challenge the validity of the National Goals and Directive Principles. That is why s. 25 (1) declares the National Goals and Directive Principles to be non-justiciable from such challenges, unless the purpose for asking the Court to exercise its power in such a challenge fall within the exceptions under Sub-section (3), which is to enforce the National Goals and Directive Principles. The Court is therefore prohibited in this case by s. 25 (1) from making determinations on the validity of National Goals and Directive Principles, as they are rendered non-justiciable by the types of relief the Applicants are seeking. See, Application by Hon. Douglas Tomuriesa MP (2024) SC2610. It can also be deduced from this that the intention of the Constitution is that s. 53 should be read and applied subject to the National Goals and Directive Principles. It is the duty of the Court to apply and enforce the intentions of the Constitution and protect the Constitution and its processes from being abused.
49. Section 212B of the Constitution (as amended) and s. 6 of the Oil and Gas Act, in my view simply resonate and enforce the requirements of the National Goals and Directive Principles. It is axiomatic that these laws simply reflect the wishes and aspirations of the people of Papua New Guinea, including the landowners as expressed in the CPC Report, and embodied in the Constitution.
50. Having regard to the CPC Report, the wish and the desire of the people of Papua New Guinea is that the mineral resources found under the customary land should be collectively owned by the people through the government, viz; the State so that the government could have control over those resources to ensure that every Papua New Guinean benefited fairly and equally from them. In this regard, the resource owners are not left without fair compensation and adequate benefits, they are given the opportunity to be compensated through equity participation as stated clearly in the National Goals and Directive Principles.
51. It is impossible for Papua New Guineans, including landowners to benefit from the mineral resources under their customary land if they had control over them, because in the first place they would not know their existence and second, even if they knew their existence they would not have the capacity to extract them. It will also be very difficult for exploration experts such as geologists and international corporations to carry out tests and conduct surveys where minerals are deposited and for the extractive industries such as mining companies to mine and develop the resources. Even if mining and exploration tenements and licenses were controlled, managed and administered by the government, one can imagine problems arising with constant landowner demands, if landowners were in control. Developers will be discouraged from participating in any form of resource development activities such as mining and other forms of extractive enterprises and large-scale commercial ventures in the country.
52. The Application will obviously have far-reaching consequences and effects if the Applicants are successful in this Application, as it would mean all the customary landowners throughout the country will have control over the mineral resources found under their customary land. In my view that will have catastrophic consequences for Papua New Guinea’s economy and the people. That said, any grant of such rights to the landowners would be against the clear Constitutional declarations that raw minerals in their natural state found under the customary land are owned by the State. For that reason, I also do not believe s. 53 grants ownership rights over mineral resources found under customary land to the customary landowners, including the Applicants.
53. I have no doubt that these issues were first and foremost in the minds of the framers of the Constitution, when they suggested in the CPC Report after having wide consultation with the people of Papua New Guinea that the people through their government viz; the State should collectively own the mineral resources found under their customary land.
54. In my view, what is required is for the government of the day to fairly compensate the landowners by giving them fair and equitable benefits which are commensurate to the value of resources extracted from their customary land. This was indeed recommended by the CPC in its Report (p.2/18), which had been embodied in the Constitution under the National Goals and Directive Principles. The system under the existing constitutional and legislative framework in my view already ensures and provides for sufficient and equitable distribution of the benefits from the mineral resources extracted from customary land to all Papua New Guineans, thus it is in my view in the interest of the public that the status quo remains.
55. In my opinion, the constitutional and legislative framework discussed above renders this Application frivolous and vexatious and an abuse of process. Thus, even if the Applicants satisfied the criteria for standing as stated by this Court in Re Petition of MT Somare [1981] PNGLR 265, to bring this Application, regard must also be had to the principles this Court adopted in Takori v. Yagari [2008] SC905, when considering ‘frivolous and vexatious’ and ‘abuse of process’. The principles are cited below. Thus, having regard to these principles. I am of the firm view that it would be untenable for this Application to succeed, even if it was allowed to proceed to substantive hearing, simply on the basis that the Applicants have standing. If it is very clear at this stage that the Applicants cannot succeed in their substantive Application, then there is no reason or purpose in allowing the Application to proceed to substantive hearing. In Takori v. Yagari, this Court in stressing these principles said: -
“Our judicial system should never permit a plaintiff or a defendant to be ''driven from the judgment seat'' in a summary way, ''without a Court having considered his right to be heard.'' A party has a right to have his case heard, as guaranteed by the Constitution and the laws of the land. The Rules are designed to enhance those rights and to ensure the prompt and fair disposal of matters coming before the Court. That right cannot be lightly set aside.
At the same time however, the law, such as the Rules under consideration, provide for and the Court has an inherent jurisdiction to protect and safeguard against any possible abuse of the processes of the Court.
The object of these rules are (sic.) therefore ''to stop cases which ought not to be launched — cases which are obviously frivolous or vexatious or obviously unsustainable.'' In other words ''the object of the rule was to get rid of frivolous actions.''
A claim may be frivolous if it can be characterized as so obviously untenable that, it cannot possibly succeed or that, the claim or defence is bound to fail, if it proceeds to trial.
A claim or defence may be vexatious, if the case amounts to a sham or one which, cannot succeed and is one that amounts to harassment of the opposing party who is unnecessarily put to the trouble and expenses of defending or proving the claim”. (My underlining).
56. The Court made these observations in Takori, when considering Order 12 Rule 40 (1) of the National Court Rules. In this case, the power of the Court to decide whether the Application itself is frivolous and vexatious and an abuse of process at this early stage of the proceeding derives from the unlimited well of its inherent power, exercised under s. 18 (1) of the Constitution with its supervisory and original jurisdiction to interpret, apply and enforce the relevant Constitutional provisions. See, Avia Aihi v. The State [1981] PNGLR 81, per Kearny DCJ.
57. The exercise of Court’s power to declare the Application frivolous and vexatious and abuse of process at this stage derives from its duty to protect its processes from being abused, which includes using processes of the Court in an improper and or incorrect ways, resulting in the opposing parties being forced to defend the actions. See, Takori v. Yugari (supra) and Wilson v. Kuburam [2016] PGSC 7; SC1489. In the latter case, the Court when discussing abuse of process held that although the issue was not relied on by the respondent in seeking dismissal of the applicant’s application for leave to review, the issue was raised in court and argued fully by the parties, thus the Court in the exercise of its inherent power held that it could decide the issue to protect its processes from being abused. Similarly, in this case, the Court has the inherent power to decide on its own initiative whether the Application is frivolous and vexatious and an abuse of process, and after thorough consideration of the issues raised, I have for the reasons already given concluded that the Application is frivolous and vexatious and an abuse of process.
58. The conclusion I have reached leads me to raise one other issue which is relevant to the issues before the Court which I have also discussed in my judgment. It appears to me that the Applicants are essentially challenging the validity of s. 212B of the Constitution (as amended) and s. 6 of the Oil and Gas Act, which vest the ownership of mineral resources in the State. However, as I alluded to earlier in my judgment, these two laws simply resonate and give effect to the National Goals and Directive Principles, as such, they cannot be challenged in any way, for to do so would result in the derogation of the National Goals and Directive Principles. Section 53 is in my view intended to protect the rights and interests of property owners whose properties, including land, are compulsorily acquired under the Lands and Acquisition Act, 1974 (as amended). In my view, the properties in this regard are unlike the mineral resources, those which are on the land and visible, which can be taken away or “stripped” from the owner through compulsory acquisition viz; land, rivers, traditional hunting grounds, customary landmarks, forests, etc. See, Leo Maniwa v. Aron Malijiwi (2013) N5687 and Minister for Lands v. Frame [1980] PNGLR 433, in the latter case, this Court held that s. 53 of the Constitution applied to protect rights and interests of the property owner whose property was compulsorily acquired under the Lands Acquisition Act, 1974 (as amended). The case arose out of the compulsory acquisition of the property, viz; a coffee plantation owned by Frame. The issues before the court were whether Frame was entitled to “just compensation” under s. 53 (2) of the Constitution and if so, what was “just compensation” for him. Section 53 was considered and applied to give effect to the National Goals and Directive Principles. In his decision, Kapi J (as he then was) who was a member of the bench said: -
“Section 53 of the Constitution deals with compulsory acquisition and compensation. On compensation, s. 53 (2) provides that:
...just compensation must be made on just terms...giving full weight to the National Goals and Directive Principles and having due regard to the national interest and to the expression of the interest by Parliament, as well as to the person affected”.
...The Constitution adopted two pre-independent laws, which also apply to noncitizen’s, being the Land Act, 1962 and Lnds Acquisition Act, 1974. In this case, we are concerned with the Lands Acquisition Act.
...Section 53 of the Constitution was clearly made discriminatory. The Constitutional framers gave consideration to the Lands Acquisition Bill. Their understanding of it was that it did not provide for “just terms”. Section 53 was put in to protect citizens. This is independent protection; it in no way changed the meaning of the Act as far as measure of compensation is concerned”. (My underlining).
59. Although Kapi J gave a dissenting judgment, the other two members of the bench agreed with him that the National Goals and Directive Principles had to be given full weight when considering whether Frame was entitled to claim compensation for his property, and if so, what was the “just compensation” for him under s. 53 (2) of the Constitution. All three members of the bench agreed on the relevance of s. 53 of the Constitution and its application to the Lands Acquisition Act. As it can be noted from the excerpts of his judgment, the point Kapi J differed from the other two members of the bench was Frame being a non-citizen could not claim certain form of compensation for his property which only the citizens could, under the Lands Acquisition Act. The other two members of the bench disagreed with Kapi J and held that Frame was entitled to be compensated in the same way as the citizens. See also, png Ready Mixed Concrete Pty Ltd v. PNG [1981] PNGLR 396.
60. The other case in point is Peter Donigi v. Base Resources Ltd [1992] PNGLR 110. In that case, this Court referred to and cited the observations made by Miles J in png Ready Mixed Concrete Pty Ltd v. The State (supra), where Miles J said among others, the following: -
“...On the other hand the powers exercisable under legislation such as the Land Acquisition Act, 1974 (to which the Constitutional Committee referred) do have the effect of stripping the landowner of the land to which he is entitled, and of substituting that right to land with a right to compensation. Thus it is that s. 53 (2) provides for just compensation to be made by the appropriating authority. It is quite inappropriate to consider the applicant company as being in any way an ‘authority’ (My underlining)..
61. The Court in Peter Donigi v. Base Resources Ltd (supra) went on to say among others, the following: -
“...There are three main components to s. 53.
(1) It deals with compulsory acquisition of property in accordance with an Organic Law or an Act of Parliament.
(2) Such acquisition must comply with s. 53 (a) and (b).
(3) Just compensation must be made on just terms by the expropriating authority.
As to the first matter, Mr Justice Miles in png Ready Mixed Concrete Pty Ltd v. The State [1981] PNGLR 396 at 409 said:
“The key word is ‘compulsorily’ which I think implies the exercise of some power conferred by statute on the State or instrumentality of the State”. (My underlining).
62. Section 53 of the Constitution was also considered by a 5-member bench of this Court in Ref No.2 of 2018 - Reference by The Ombudsman Commission pursuant to Constitution 19 (1) of the Constitution – Re The Public Money Management Regulation Act, 2017 (2020) SC1944. The Ombudsman Commission in that Reference challenged the constitutional validity of Public Money Management Regulation Act, 2017, which was to regulate handling and management of public funds received by public or statutory bodies. A question posed in the Reference for the Court’s opinion was whether public bodies which were authorized by law to own, manage and dispose of properties and maintain accounts for public funds received, had interests in the funds and whether the interests in such public funds and properties were protected by s. 53 of the Constitution. The Court in finding the Public Money Management Regulation Act, 2017 unconstitutional said among others, that because the Act provided for compulsory acquisition of property other than on just terms, the Act was contrary to s. 53 of the Constitution, and for that reason alone, the Act was inconsistent with the Constitution and was invalid and ineffective in its entirety.
63. In that Reference, I was a member of the bench and in my decision, I referred to Leo Maniwa v. Aron Malijiwi (supra), which was my own decision. The case was brought on by landowners in the East Sepik Province whose customary land was compulsorily acquired by the government for Special Agricultural and Business Leases (SABL) purposes. The lease was for 99 years which was granted to a foreign owned logging company. The lease holder, while purportedly executing the lease caused extensive damage to the environment and customary land owned by the plaintiffs which included rivers, forests, customary landmarks and so on. In my decision in the above Reference, I said among others, the following: -
“In Leo Maniwa v. Aron Malijiwi (2013) N5687 the Court, after discussing the National Goals and Directive Principles held that a Special Agricultural and Business Lease (SABL) issued by the State to a logging company for 99 years over a customary land breaches s. 53 of the Constitution because the SABL not only deprived the customary landowners of their ownership of the land but it also deprived them of their other rights and interests in the land that went with their ownership rights. For example, right to fish, hunt and other traditional rights relating to the usage of their land”.
64. Notably, a quick survey of all the cases in which s. 53 was applied and enforced had one common denominator, viz; they all concerned compulsory acquisition of property rights and interests in properties that were on the ground, tangibly visible which could be compulsorily acquired. In those cases, it was proper to declare the acquisition unlawful under s. 53 of the Constitution. See also, Tzen Plantations Ltd v. Open Bay Timbers Ltd (2014) SC1380; PNG Aviation Services Ltd v. Geob Karri (2009) SC 1002 and Philo Aufa v. Richard Pii (2018) N750.
65. Thus, it is crystal clear that issues relating to the application of s. 53 of the Constitution regarding ownership of mineral resources under the customarily owned land have already been exhaustively considered and determined by the courts. Therefore, the Applicants are in essence re-agitate the same issues, which the courts have already considered and dealt with. The parties in this case are same, viz; customary landowners who are privies to the landowners who raised the same issue in the previous cases referred to above and the State. The result is the issues are res judicata for which issue estoppel must lie against the Applicants from raising the same issues. The Application in this regard is also a clear abuse of process. See, Wilson v. Kubaram (supra).
66. In Carl-Zeiss Shtiftung v. Rayner and Keeler Ltd and Others (1966) 2 All ER 536 at 656, Lord Guest in commenting on the doctrine of res judicata and issue estoppel relevantly said: -
“The requirements of issue estoppel still remain (i) that the same question has been decided; (ii) that the judicial decision which is said to create the estoppel was final, and (iii) that the parties to the judicial decision were the same persons as the parties to the proceedings in which the estoppel is raised or their privies”.
...doctrine is still referred to as “res judicata” it is perhaps more accurately described as “issue estoppel” to take into account the widening of the doctrine in recent years to include decisions other than those of courts of record”. (My underlining).
67. These are added reasons I find that s.53 of the Constitution is irrelevant for the Applicants to rely on for the relief they are seeking.
F. Conclusion
68. For these reasons, it is my duty to refuse the Application, which I now do.
69. The Applicants will pay the Intervener’s costs of and incidental to this Application, which are to be taxed, if not otherwise agreed
70. Orders accordingly.
71. DAVID J & MURRAY J: Their Honours, Chief Justice Salika, Justice Gavara-Nanu and Justice Hartshorn have produced separate drafts of their respective decisions which we have had the benefit of perusing. With respect, we concur with the opinions expressed by their Honours and accordingly, would also deny the Applicants’ request for a declaration of standing, for the reasons outlined in their Honours’ judgments, as well as the additional reasons detailed in our judgment.
(a) the applicant must have a sufficient interest in the matter;
(b) the application must raise significant (not trivial, vexatious, hypothetical or irrelevant) constitutional issues;
(c) the applicant must not be a mere busybody meddling in other people’s affairs and must not be engaged in litigation for some improper motive, eg as a tactic of delay;
(d) the fact that there are other ways of having the constitutional issues determined by the Supreme Court does not mean that a person should be denied standing.
Do the applicants have sufficient interest?
(a). That they have interests or rights that are directly affected by the subject
matter of the application or
(b). That they are citizens who have a genuine concern for the subject matter or
(c). That they are holders of a public office, the functions of which relate to the
subject matter.
With respect to the first applicant, he argued that:
(1) they have not identified his direct interest that is said to be affected. In other words, he argued that:
- they have not identified the property affected
- they have not identified the type of hydrocarbons said to be on the first applicant’s purported land
- they have not identified the traditional lands being affected
- they have not identified how the first applicant’s interest has been affected and or the various instances of which they have been affected.
(2) They have not identified the Incorporated Land Group (ILG) under which the said customary lands are owned as it is settled law that customary ownership is only evidenced through a registered ILG and
(3) They have not properly demonstrated the first applicant’s authority to commence proceedings on behalf of the purported landowners.
Consideration
1. Identify the specific location by reference to specific customary land and volume of hydrocarbon which is the interest or property which he claims is untouched, unextracted, or unprocessed, which he further claims lie beneath the land he claims to own. This needs to be done by producing technical reports establishing and verifying the presence and volume of the untouched, unextracted or unprocessed hydrocarbon, the areas which they are present, and identifying and establishing the presence of all hydrocarbons remaining in situ on those traditional lands.
2. Demonstrate, the extent of his claim of landownership. This can be a Village Court or Local Land Court Order, identifying the land, setting out the land boundaries, and the interests it entails and
3. Identify the specific areas within PDL1, PDL 7, PDL 8 or PDL 9 which his traditional land lies.
13. POWERS OF INCORPORATED LAND GROUPS.
(1) The powers of an incorporated land group–
(a) relate only to land and its use and management, and to associated matters; and
.........
(2) Subject to Subsections (1) and (3), an incorporated land group may–
(a) acquire, hold and dispose of customary land and rights in or in respect of customary land, in the manner (if any) and to the extent (if any) allowed by custom;...... .
Conclusion
1. The applicants request for a declaration as to their standing is refused.
2. These proceedings are dismissed.
3. The applicants shall pay the intervener’s costs of the proceedings on a party- party basis to be taxed if not agreed.
125. It is submitted on behalf of the applicants that they raise issues with regard to the ownership, right or interest of traditional landowners over oil and gas resources situated in their customary or traditional land. Specifically, the applicants seek declaratory relief in respect of amongst others, hydrocarbons situated on, at or below customary land and the ownership thereof.
126. The applicants, as evidenced by this proceeding, take issue with and dispute the ownership of the hydrocarbons situated on, at or below their customary land as affected by s. 6(1) Oil and Gas Act 1998 and s. 212B (1) Constitution.
127. The Land Disputes Settlement Act 1975 (LDSA) relevantly provides:
s. 3(1)
(1) Subject to Subsection (2) and to Section 4, this Act applies to disputes as to interests in customary land; ...
(Subsection (2) and Section 4 are not relevant in this instance)
s. 26
Subject to Section 3 and 4 and to this Part, a Local Land Court has jurisdiction over and in relation to –
a) a dispute as to an interest in land where the land in dispute is situated wholly or partly within the province for which the Court is established.
128. In s. 2 LDSA:
“interest” includes any interest in land of whatsoever nature that is recognised by the custom of the people of the area in which the land is located.
“land” means customary land and includes –
.....
(c) things growing on land or in water over land, earths and minerals on or under land; and
(d) an interest in land.
129. The definition of “interest” is sufficiently wide to encompass hydrocarbons and oil and gas reserves; and an interest which is not presently owned by customary landowners, but which is recognized by the custom of the people of the area in which the land is located. This is one of the assertions of the applicants in this instance.
130. In Louis Lucian Siu v. Wasime Land Group Incorporated (2011) SC1107, the Supreme Court (Injia CJ (as he then was), Manuhu and Kawi JJ) said at [19] – [21]:
“19. The Land Dispute Settlement Act itself defines "interests" in section 2 of the as follows: "Any interests in the land of
whatsoever nature, that is recognized by the customs of the people of the area in which the land is located."
20. In Mamun Investments v Paul Ponda & Ors [1995] PNGLR 1. The Supreme Court (Kapi DCJ and Injia J as their Honours were then), stated that "sufficient interests" in the context of locus
standi or standing "means property interests" or proprietary interests, legal or equitable or even social or political interests".
21. So too in the present appeal, it is our considered opinion and we do hold that the phrase "a dispute as to an interests in Land"
as used in Section 26 and other provisions of the Land Dispute Settlement Act means a property interests or proprietary interests
or a legal or equitable interests or any financial and monetary interests arising out of one's ownership of such customary lands
or over the use of such traditional lands and includes financial benefits and any other benefits derived from the use of such lands.
It also means any monetary or financial benefits arising from or associated with or in connection with the use of or with one's ownership
of such a customary land and includes financial payments and benefits paid to land owners.”
(See also:
1. Kuman v. Digicel (PNG) Ltd (2019) SC1851 at [51] which reproduced [21] with approval)
2.Talibe Hegele v. Tony Kila (2012) SC1180 at [15] as to lack of jurisdiction of the Supreme Court).
131. Consequently, the issues raised by the applicants, being a dispute or disputes as to interests in customary land, are not within the jurisdiction of this Court. This proceeding is therefore either hypothetical, trivial or frivolous. The applicants have not raised a significant constitutional or other issue that is not hypothetical, trivial or frivolous. As one of the factors required for a successful declaration as to standing has not been satisfied, this application for a declaration that the applicants have standing should be refused.
1. The Application is refused.
________________________________________________________________
SLM Legal Practice: Lawyers for the Applicants
Mel and Henry Lawyers: Lawyers for the Respondent
[1] https://petrowiki.spe.org/Glossary:Hydrocarbon
[2] University of New South Wales. School of Petroleum Engineering. (2009). Short courses for the oil and gas industry: Introduction
to the oil and gas industry.
[3] University of New South Wales. School of Petroleum Engineering. (2009). Short courses for the oil and gas industry: Introduction
to the oil and gas industry.
[4] UNSW (supra)
[5] University of New South Wales. School of Petroleum Engineering. (2009). Short courses for the oil and gas industry: Introduction
to the oil and gas industry
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