REFORMS demanded by independent MPs Tony Windsor and Rob Oakeshott conditional to their supporting the government's mining tax legislation could expose the commonwealth to a multi-billion-dollar damages bill, legal experts have warned.
The changes would give the federal government sweeping powers over environmental regulation that could even force farmers to apply to Canberra to drill a hole on their land.
At present, the Constitution gives state governments ownership of mineral resources and any powers not specifically awarded to the commonwealth. State governments thus hand out mining leases and collect the bulk of mining royalties.
But Mr Windsor has demanded the commonwealth seize control over leases - and has threatened to derail Labor's $11 billion mining tax if he does not get his way.
The Australian
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