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Jun 2007 - Australian Institute of Energy

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10 WAYS TO GET THE MOST FROM YOUR LEGAL TEAM<br />

By Mark Kemp*<br />

Very few energy companies whose involvement in major infrastructure<br />

projects requires large scale land or easement acquisitions use their<br />

lawyers to best effect. Typically, such companies call their lawyers<br />

in at the beginning <strong>of</strong> these projects to ensure compliance with<br />

regulatory and planning issues, and then at the tail end to deal with<br />

any unresolved disputes with a small number <strong>of</strong> recalcitrant land<br />

owners. Using your legal team through the acquisition/construction<br />

phase <strong>of</strong> a project can save you money, avoid disputes and ensure<br />

that project timeframes are met. It is here that a good legal team can<br />

really prove its worth and deliver value for money.<br />

1. INVOLVE THE LEGAL TEAM EARLY<br />

Don’t wait until discussions with land owners have already taken<br />

place. Involve your lawyers in those discussions and in any initial<br />

project team briefings so that they are familiar with and understand<br />

all <strong>of</strong> the issues surrounding the project. Involving your lawyers<br />

early is critical if there are likely to be issues which relate to<br />

particular owners or involve geographical features, endangered<br />

fauna and flora, or community sensitivities.<br />

2. INVOLVE THE LEGAL TEAM<br />

IN COMMUNITY BRIEFINGS<br />

It is pretty much standard procedure nowadays for companies to hold<br />

community briefings and presentations in the major regional centres<br />

and towns along a project’s proposed route. For some inexplicable<br />

reason, lawyers, valuers, surveyors, engineers and other expert<br />

service providers are rarely included in such activities. But, who<br />

else can satisfactorily answer the questions that will be asked? The<br />

attendance <strong>of</strong> these service providers will increase the transparency<br />

<strong>of</strong> the project and help to alleviate any community distrust.<br />

3. LET YOUR LEGAL TEAM PRESENT<br />

TO LOCAL LAWYERS<br />

Not only will a presentation enable your legal team to explain the<br />

project’s procedures, timeframes and lines <strong>of</strong> communication, but<br />

it will allow individual members to begin establishing their own<br />

comfortable relationships with the local lawyers who’ll be acting<br />

for various landowners. Meeting and greeting over a drink or some<br />

food is just as important as the company’s formal presentation and<br />

will break down the barriers between your legal team and the local<br />

lawyers with whom they might find themselves at loggerheads.<br />

4. ENSURE YOUR LEGAL TEAM ESTABLISHES<br />

STRONG PROFESSIONAL RELATIONSHIPS WITH<br />

THE LOCAL LAWYERS WHO WILL BE ACTING FOR<br />

THE LAND OWNERS<br />

Your legal team will be much better equipped to resolve potential<br />

disputes before they happen if they can have a friendly chat to an<br />

aggrieved landowner’s solicitor rather than having to rely solely<br />

on formal correspondence which is typically anything but friendly.<br />

When you’ve got a very tight construction timetable and an owner<br />

denies you access by locking the front gate, the chances are that<br />

a letter won’t bring about a speedy solution. Lawyer-to-lawyer<br />

relationships are essential when dealing with emotional owners<br />

who are facing compulsory acquisition.<br />

5. GET YOUR LEGAL TEAM OUT OF ITS OFFICE<br />

AND INTO THE FIELD<br />

Not only will getting out and about enable your lawyers to develop<br />

a better knowledge and understanding <strong>of</strong> the project but it will help<br />

them build relationships with property owners and the local lawyers<br />

who represent them. You and your lawyers will both benefit if they<br />

visit the project site every month or so to update themselves on<br />

progress and meet with local lawyers and landholders.<br />

6. ENSURE THAT YOUR LEGAL TEAM KNOWS AND<br />

BUILDS STRONG PROFESSIONAL RELATIONSHIPS<br />

WITH YOUR OTHER SERVICE PROVIDERS<br />

Many issues that arise during the land acquisition phase <strong>of</strong> a project<br />

require contributions from your lawyers, surveyors and valuers.<br />

If you require efficient resolution, it is crucial that these service<br />

providers develop good pr<strong>of</strong>essional and personal relationships<br />

so that they can work together. It is very difficult, for example, for<br />

lawyers to contribute to resolving compensation issue if they have no<br />

or only limited knowledge <strong>of</strong> the approach your valuer is taking.<br />

7. ENSURE THAT THE LEGAL TEAM PREPARE AS<br />

MANY DOCUMENTS AS POSSIBLE<br />

Most companies will already have easement terms and although<br />

lawyers rarely need to be involved when landowners sign standard<br />

easements, large-scale land acquisition and construction creates<br />

related issues which require specific legal documentation. It is<br />

essential that your lawyers are involved not only in the discussions<br />

with owners and their solicitors in relation to these types <strong>of</strong> issues<br />

but that any documentation involved is prepared by your legal team<br />

to ensure that it is correct.<br />

8. ENSURE THAT THE LEGAL TEAM IS AWARE OF<br />

THE POLITICAL ENVIRONMENT OF THE PROJECT<br />

Although this applies particularly to statutory corporations and<br />

government-owned utilities, it also applies to private sector<br />

organisations. The legal team needs to be briefed on and understand<br />

the political environment <strong>of</strong> your project. In particular, it needs to<br />

know about any owners’ actions groups which have been established,<br />

what local members <strong>of</strong> parliament are being told and what<br />

governments are saying, if anything, about the project. Providing<br />

technical legal advice about a project without understanding the<br />

political environment is <strong>of</strong> little value. This applies both to the formal<br />

legal advice provided to you as well as the formal and informal<br />

dealings your legal team has with owners and their local lawyers.<br />

Your lawyers need to understand that anything they write or say<br />

to an owner or the owner’s lawyer may end up in the hands <strong>of</strong> the<br />

relevant government minister with adverse implications for your<br />

organisation. ‘Ministerials’ are not only stressful and cause public<br />

relations problems. They also take a lot <strong>of</strong> time, effort and resources<br />

to answer, thereby diverting resources from the project itself.<br />

9. USE YOUR LEGAL TEAM AS ANOTHER SOURCE<br />

OF COMMUNICATION/INFORMATION<br />

In its meetings and field trips, your legal team may discover<br />

and be told things that your field representatives are not hearing<br />

about local issues. Because many local lawyers are involved in<br />

community associations and local government, they <strong>of</strong>ten know<br />

about potential problems and community concerns well before<br />

those issues become known to you.<br />

10. USE YOUR LEGAL TEAM AS PART<br />

OF YOUR PUBLIC RELATIONS EFFORT<br />

Do not keep the members <strong>of</strong> your legal team in reserve until a<br />

dispute erupts. Use them not just as advisors but also to manage<br />

legal issues throughout the life <strong>of</strong> your project. Furthermore, make<br />

it publicly known that you are doing so. This will make it clear to<br />

the local lawyers that your legal team is available and contactable<br />

and that you regard legal issues seriously. From a public relations<br />

viewpoint, there is considerable kudos in doing this.<br />

These 10 points about how to get the best from your legal team have<br />

been successfully used by energy companies in a variety <strong>of</strong> projects<br />

involving large-scale land and easement acquisitions. There’s<br />

nothing academic or theoretical about them. They actually work!<br />

*Mark Kemp is a Senior Associate with Melbourne law firm Mason<br />

Sier Turnbull. He can be contacted at mark.kemp@mst.com.au.<br />

47 EnErgy nEws Vol 25 no. 2, <strong>Jun</strong>e <strong>2007</strong>

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