APPLICATION FOR NON-PASTORAL USE OF PASTORAL LAND

APPLICATION FOR NON-PASTORAL USE OF PASTORAL
LAND

(s.86 Pastoral Land Act)

1: APPLICANT’S DETAILS

Name of Lessee Branir Pty Ltd (ACN 061 718 876) and
Applicant’s Full Name Tovehead Pty Ltd (ACN 003 745 140)
Position (eg. Lessee / Manager) Branir Pty Ltd and Tovehead Pty Ltd
(Contact: Stephen Dumsday)

Lessee

Telephone (03) 9653 3702

Mobile 0418 577 663

Facsimile (03) 9653 3710

Email [email protected]
Postal Address
PO Box 18367
Collins Street East VIC 8003

2: DETAILS OF LEASE ON WHICH NON-PASTORAL USE IS PROPOSED

Lease Name Tipperary Station

Pastoral Lease Number Perpetual Pastoral Lease 1004

Lease Expiry Date (for Term lease) Not Applicable

NT Portion Number NT Portion 2682

Location / Pastoral District Daly River
Total Area of Lease (km2) 2,070 km2

Size of Proposed Area for 8 km2
Non-Pastoral Use (km2)

Location of Proposed Area for Refer Attachment 1
Non-Pastoral Use (attach geo-
referenced locality plan)

3: NON-PASTORAL USE PURPOSE Forestry
Agriculture
Tourism Other
Horticulture
Aquaculture

4: LAND CLEARING

Does the proposed area for non-pastoral use require a clearing permit?
Yes No

If yes please advise the current status of the land clearing application:
Approved (please attach copy of permit)
Pending approval
Application to be lodged

5: WATER REQUIREMENTS

Licensing provisions apply to Water Control Districts and Water Allocation Plan areas. Contact the
Department of Land Resource Management (DLRM) Water Resources Division on (08) 8999 4613 for
advice on whether this applies to you.

Is a water license required? Yes No

If yes please advise the current status of the water license:

Approved (please attach copy of permit)

Pending approval

Application to be lodged

6: SACRED SITES

Are there any sacred sites or significant sites protected under the Aboriginal Sacred Sites Act located
within the proposed area for non-pastoral use?

Yes No

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Please provide a copy of the report from the Aboriginal Areas Protection Authority (AAPA) outlining
the results of a register inspection. Contact AAPA on (08) 8999 5511or visit www.aapant.org.au.

7: SITES OF CONSERVATION SIGNIFICANCE

Are there any sites of conservation significance located within the proposed area for non-pastoral
use?

Yes No

If yes, please show the location of sites of conservation significance on a map and describe how risk
will be mitigated.

Sites of Conservation Significance Search
NT Sites of Conservation Significance: www.lrm.nt.gov.au/plants-and-animals/conservation-for-
land-managers/sites-of-conservation-significance/map
Register of the National Estate: www.environment.gov.au/cgi-bin/ahdb/search.pl
NT Parks and Reserves: www.ntlis.nt.gov.au/imfPublic/imf.jsp?site=nreta
(check box for “Parks and Wildlife”, refresh map, click and drag over area of interest)

8: ENVIRONMENT PROTECTION

Non–pastoral use activities must comply with the Waste Management and Pollution Control Act, the
Environmental Assessment Act and the Public and Environmental Health Act. This will be taken into
account when considering your application.

9: NATIVE TITLE ACT

The Pastoral Land Board will continue to ensure the provisions of the Native Title Act are complied
with before approving a permit. Notification as required is the responsibility of the Board.

10: DETAILS OF INTENDED NON-PASTORAL USE

Please write a comprehensive description of the proposal including level of development/usage (i.e.
visitor numbers for tourism, number of trees and species type for horticulture or forestry), whether
outside operators will be involved, management setup, proposed access etc.

Branir Pty Ltd and Tovehead Pty Ltd T/A Tipperary Group of Stations (“TGS”), together with TPI
Enterprises Ltd (“TPI”), propose to commence the commercial production of poppies (Papaver
somniferum) on Tipperary Station in 2014.

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1. Overview of Project Proponents

a. TGS:
TGS, an entity ultimately owned by Allan Myers and his family, is well known to the
Pastoral Land Board, having owned and operated Tipperary Station, and the
neighbouring Litchfield, Douglas Station, and Elizabeth Downs since 2003. These
properties, covering 743,717 hectares in the Daly River catchment, have been run as part
of an extensive pastoral business running up to 85,000 head of high grade Brahman
cattle. The properties, in particular Tipperary Station, is well developed with 170
paddocks, 11 yards, a commodity shed, over 200 permanent water points, and several
large scale machinery sheds. The properties have several areas that have been cropped
in the past for internal fodder consumption.

b. TPI:
TPI was established in 2004 and is one of eight licit narcotic facilities in the world. It is
Australia’s only independent, Australian-owned poppy processor and narcotic raw
material producer. The global market for products derived from poppies has expanded
rapidly over the past 20 years due to an ageing population, increase in the range and
use of synthetic alkaloid medicines, and an increased access to medicines in third world
countries. TPI’s success has been built on its position as the only licit processor to utilise
a water based innovative extractive and purification technology. This has enabled TPI to
supply quality product to the international narcotics market at a competitive price.
While TPI has experienced significant growth, this has been constrained by the available
supply of poppies.

2. Overview of Poppies

Papaver somniferum poppies naturally produce Morphine, the majority of which is converted
into Codeine for pain relief medication. Through the application of Plant Growth Regulators,
Papaver somniferum poppies can also produce Thebaine and Orivapine, which have no
therapeutic benefit themselves but are the starting product for specialist active
pharmaceutical ingredients such as Buprenorphine and Oxycodone.

Australia supplies approximately 50% of the world market for opiates, all of which has
historically been sourced from poppies grown in Tasmania where, until recently, it was the
only location in Australia where poppies could be legally grown. To keep pace with growing
world demand for opiates, the area cropped to poppies in Tasmania grew from 4,900
hectares in 2006 to 36,250 hectares in 2013. This rapid increase led to over rotation of the
crop and many marginal areas being brought into poppy production, including areas with
poor soils and no irrigation, consequently negatively impacting yields and certainty of
supply for poppy processors.

In response to the ongoing issues with supply in Tasmania, TPI undertook analysis on
alternative areas on mainland Australia that were deemed to be suitable for poppy
production. The analysis considered climatic conditions, soil types and Government support
for establishing the industry. The outcome of this analysis resulted in trials being

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undertaken in Victoria and in the Northern Territory in 2013. The NT trials were conducted
at the Katherine Research Station (“KRS”) and the Douglas Daly Research Farm (“DDRF”).

On the basis of the success of the trials at KRS and DDRF, the NT Government drafted and
passed legislation to enable poppies to be legally grown at a commercial scale in the NT.
Contemporaneously, TPI and TGS entered into an agreement to undertake commercial
poppy production at Tipperary Station in 2014, subject to receiving all necessary approvals.

3. NT Poppy Legislation

The Poppy Regulation Bill 2014 was passed on 15th May 2014. The Poppy Regulation Act
2014 commenced operation on 29th May 2014. Under this legislation, poppies can be
cultivated, processed, transported and stored, provided a license has been issued.

The key areas that must be addressed as part of the application for a license include:
• The applicant must demonstrate that they are a fit and proper person. In addition to

this, the Licensing Authority, being the CEO of the Department of Primary Industries and
Fisheries (“DPIF”), will obtain advice from the Commissioner of Police on whether or not
a license should be granted to the applicant.
• A detailed risk management plan must be provided, which addresses, among other
things, site security, transportation security, and biosecurity risks.
• The applicant must have entered into a contract with a licensed poppy processor, either
in the NT or in another jurisdiction that issues poppy processing licenses, to ensure the
poppy crop has a pre-determined destination.

Application will be made to the DPIF under this legislation to enable poppies to be legally
grown, harvested and transported on Tipperary Station.

4. Poppy Crop Site

The proposed site for growing poppies is a 724 hectare paddock known as ‘Horse Paddock’,
which is located in the area of Tipperary known as ‘Honeymoon Hill’ (refer to Attachment 1
for location).

The site has been selected based on its long history of successful cropping, producing crops
such as cavalcade, maize and sorghum. Refer to Section 13 for a detailed site description.

The site is cleared and has a Ground Water Extraction License for 5,151ML/year. Irrigation
will be via centre pivots – refer Attachment 2 for intended location of centre pivots.

5. Site Development

The site was cleared prior to 1992 and has been part of a cropping program for a significant
period of time, so is ready to be cultivated. However, on advice from the Department of
Land Resource Management, a clearing permit will need to be obtained for the site prior to
undertaking the cropping program proposed in this Non-Pastoral Use application. The
required Application to Clear will be lodged at the same time as this Non-Pastoral Use

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application.
Production of poppies requires irrigation. In June 2014, two 55 hectare centre pivots will be
installed at the site – refer Attachment 2 for intended location. It is anticipated that the
irrigation infrastructure will be fully commissioned by late June 2014. Further irrigation
infrastructure required for 2015 and beyond will be determined following the completion of
the 2014 season.
A security fence will be required in order to obtain a license under the Poppy Regulation Act
2014. The proposed fence will be 1,500mm high, with deer mesh mounted on 3 strand
fencing wire and 300mm mesh width on the ground to the outside, plus electric wires at the
top and 200mm from ground level. The fence is designed to restrict unauthorised access
and to prevent wild and feral animals from obtaining access to the poppy crop. The fence
will be constructed prior to sowing of the poppy crop.
TGS is responsible for the installation of the irrigation infrastructure and fencing.
6. Cropping Program
Based on their extensive experience in poppy production, TPI will have the responsibility for
sowing, growing, maintaining, harvesting, transporting and processing the poppy crop. The
crop will ultimately be transported to Tasmania for processing in TPI’s facility.
The following information relating to poppy crop production is sourced from TPI and the
recent trials undertaken by TPI and the Department of Primary Industries and Fisheries at the
Katherine Research Station (“KRS”) and the Douglas Daly Research Farm (“DDRF”).
a. Growth Cycle:

Poppies have seven key growth stages as shown in Figure 1. Each of the stages has
different nutritional and watering requirements. Application of urea, potassium, sulphur
and trace elements will increase poppy yields. Poppy plants can have 30 plus heads per
plant, however in a good crop, one plant will have 3-4 capsules.
Figure 1: Key Growth Stages of a Poppy Plant

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The typical time between germination and senescence is 140 days, with the time at each
stage affecting the alkaloid content, capsule size, amount of seed produced, and the
stem strength of the crop.

In the recent trials at KRS and DDRF, the time between germination and senescence was
only 110 days. As a result, there were a reduced number of flowers and smaller capsules
than typically observed. Lodging also occurred due to lack of stem strength. A plant
growth regulator (Sumagic®, uniconazole-p) will be applied to future crops to delay
plant maturity in order to increase the capsule size, capsule count and strengthen the
poppy stem therefore reducing the potential for crop lodging.

Overall, the ability to control the amount of water applied to the crop, stop watering at
the ideal time and the weather being hot and rainless at the time of harvest make the
climatic conditions of the NT ideal for the cultivation of poppies.

b. Sowing and Germination:
The ideal sowing time for poppies is when the soil temperature falls below 20°C. This
occurs from mid-June through to the end of July in the NT. However, sowing at the end
of July pushes harvesting into a period when the first rains of the wet season are likely to
occur, which is undesirable as capsules need to dry out completely after senescence.

In the trials at KRS and DDRF, sowing occurred in mid-June, which achieved good
germination and enabled harvesting in dry and hot conditions. This is the target sowing
time for the crop.

Poppies require a well prepared seed bed, not too firm with the surface free from straw,
weeds and other vegetable matter. The seed bed will be prepared initially by deep
ripping to break up compacted layers and soil hardpans. This will be followed by
shallow cultivation, with as little consolidation as possible.

Poppy seeds are sown within 5 – 10 mm of the soil surface by drill seeding. The aim is to
achieve a density of approximately 70-80 plants/m2 based on row spacing of 150mm.
This equates to a sowing rate of around 1kg per hectare.

c. Nutrient Requirements and Fertiliser Program:
As with all plants, poppies require a good supply of nitrogen, phosphorus, potassium,
sulphur, calcium and magnesium along with other trace elements.

A critical micro nutrient for poppy production is Boron. This is vital for the plants
immune system and helps the plant deal with fungal infections and other diseases.
Boron is added to the fertiliser at sowing, and foliar applications of Boron are applied
during the growing season.

Table 1 shows the fertiliser application for the trial conducted at DDRF, which is located
near Tipperary Station.

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Table 1: Fertiliser Program at DDRF Trial 2013

Date Fertilisers Applied Units of NPKS applied per Ha
66 : 75 : 42: 23
Early May 600g Yates trace elements;
46 : 0 : 21 : 9
3.75kg diammonium phosphate; 46 : 0 : 21 : 9

1.25kg sulphate of potash; 112 : 75 : 63 : 32
158 : 75 : 84 : 41
13th August (Day 60) 12g boron 160 : 64 : 176 : 28
500g sulphate of potash;

29th August (Day 76) 800g urea
500g sulphate of potash;

1.0kg urea

NB: selected subplots in trial

Total Applied

Total Applied (incl. day 76 application)

Required nutrient uptake (4tn/ha total biomass)

The day count in Table 1 started at the sowing on the 14th June. Sufficient phosphorus
was applied early in the crop cycle, however due to soil characteristics it was apparent
that the soil did not make enough of this phosphorus available for the plants and it
became deficient. The amount of potassium applied was also below target, which was
amplified by its soil mobility.

In future crops, more phosphorus and potassium will be added in line with advice from
TPI’s agronomists and the Department of Primary Industries and Fisheries.

d. Pest Management and Insecticide Program:
Seeds can be coated with suitable inoculant to help prevent insect damage to the seed
and has some effect on seedling protection from certain pest species. Seed harvesting
ants, heliocoverpa caterpillars and spodoptera caterpillars will be the main targets of the
insecticide programme. In the KRS and DDRF trials, Chlorpyrifos, a broad range
insecticide, was utilised to control ants and caterpillars. Success2™ was also utilised at
DDRF in controlling caterpillars. These insecticides will be utilised in the Tipperary
cropping program.

Feral pigs are the most significant vertebrate threat to the crop, as they will be attracted
by the moisture and water from the centre pivots. Pigs like to dig and scarify moist earth
searching for roots and bulbs that are their preferred diet. They are capable of causing
widespread damage to crops and vegetation over large areas in a relatively short period
of time. The design of the proposed fence will mitigate this threat to a large extent.

e. Weed Management and Herbicide Program:
Most weeds in poppy crops can be chemically controlled but all herbicides have some
negative effects on the poppy plants. These negative effects can be minimised by
controlling weeds prior to sowing the crop and by making sure the poppy seeds
germinate evenly across the paddock. This ensures herbicides can be applied at the
optimum time to minimise the damage to poppies and to maximise their impact on
weeds.

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Broad-range herbicides will be used to control weeds, including Lontrel™ Advance
(clopyralid) to control broad-leafed weeds, Verdict™ (haloxyfop) to control grass weeds
and Command® (clomazone) to control annual broad-leaf weeds. Target species
include Sabi grass, Pigweed, Crotolaria and Wynn cassia.

Table 2 shows the herbicide application for the trial conducted at DDRF, including
application rates.

Table 2: Herbicide Program at DDRF Trial 2013

Date Herbicide Applied Target
Sabi grass
12th July (Day 28) Command® (1L/ha) Pigweed
Crotolaria
Verdict™ (300ml/ha) Wynn cassia
Broadlead weeds
1st August (Day 48) Lontrel™ Advance (150ml/ha)

A similar program will be implemented at Tipperary under advice from TPI’s agronomists
and the Department of Primary Industries and Fisheries.

f. Disease and Fungicide Program:
Poppies are susceptible to a number of fungal diseases including poppy fire, downy
mildew, leaf smut and sclerotinia. Some of these can be avoided by good farm hygiene
practices such as cleaning up stubble, controlling volunteer poppy plants and ensuring
at least a three crop rotation between poppy crops. Ridomil® (mancozeb and
metalaxyl-M) will be applied to the crop as a preventative measure. In the KRS and
DDRF trial, Ridomil® was applied at the rate of 2.5kg/ha. It is expected that the
fungicide will be the same for the Tipperary cropping program.

g. Water Requirements and Irrigation:
The critical times for water application are germination and establishment, vegetative
growth, hook stage and flowering and post flowering prior to leaf senescence. The
amount of water required is expected to be between 3 to 6 megalitres per hectare.
There is sufficient water available under the current Groundwater Extraction License to
accommodate this.

In the first year, the crop will be grown under two 55 hectare centre pivots. This area will
increase in 2015 depending on the success of the 2014 crop.

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Summary of irrigation program below:

Table 3: Irrigation Program

Growth Stage Day Irrigation Requirements
Day 0 (mid to late June) Keep surface moisture high
Planting and Sowing

Germination Cotyledon

Vegetative – Leaf 2 leaf

Development 4 leaf

6 leaf

8 leaf

Early Generative – Stem 10 leaf (small rosette)

Elongation and Rosette Large Rosette Provision of water
important – keep soil at fill
Growth Running up capacity

Late running up

Generative – Bud in apex

Inflorescence Early hook

Development Upright bud

Generative – Flowering First flower

Full flower Day 74

Late flower

Petal fall

Maturity – Seed Green capsule

Development Striped capsule Day 95 No irrigation – keep dry
Day 110 (October)
Seed free

Senescence Harvesting

h. Harvesting:
Harvesting of the capsules occurs after the plant has senesced and dried to a moisture
content of below 14%. Only the capsules and approximately 5cm of the stem are
harvested. Poppies are harvested with a combine header or preferably a specialised
forage harvester.

i. Crop Rotation:
Advice from the Department of Primary Industries and Fisheries suggests the following
rotation for poppies:

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Table 4: Proposed Crop Rotation

Year 1 Crop

- Dry Season Poppy

- Wet Season Legume

(Peanut/Soy)

Year 2

- Dry Season Poppy

- Wet Season Grass

(Maize/Sorghum)

Year 3

- Dry Season Legume

(Peanut/Soy)

- Wet Season Grass

(Maize/Sorghum)

Grass and legume rotational crops will be grown as cover crops or harvested, depending
on soil requirements.

7. Security and Access

Security of the crop is of utmost importance to TPI and TGS. Only persons with the correct
authorisation are able to cultivate the plant and unlike other cropping activities, security
measures will be in place at all stages of sowing, cultivation, harvest and transport. Security
will involve both physical aspects and background checks of persons involved in the
cultivation of the crop.

The primary physical security measure to prevent unauthorised access is the fencing
described in part 5 above.

All persons involved in the sowing, cultivation, harvesting and transport of the poppy crop
will be required to undergo a National Police Check.

Access to the site will be via a gravel road from Dorat Road, which is approximately 12 km in
distance. There at least two gates between the site and Dorat Road that could be secured at
night by padlock. Staff associated with the project will reside at the Honeymoon Hill
complex, which overlooks the site.

A detailed security plan has been provided to the DPIF (refer Attachment 3). TPI and TGS
will also comply with any additional requirements under the new legislation and
accompanying regulations for the growing and cultivation of poppies.

11: EXPECTED DURATION OF NON-PASTORAL USE

Under the new amendments to the Pastoral Land Act non-pastoral use permits can now be approved
for a period of up to 30 years, or in the case of a Term Pastoral Lease until the expiry of the lease.
Please write the number of years expected for this non-pastoral use enterprise.

30 years

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12: DETAILS AND COST ESTIMATES OF INFRASTRUCTURE / DEVELOPMENT

Existing or proposed Description of infrastructure Estimated Cost
$ 3,500,000
Proposed Irrigation Infrastructure $ 200,000
Proposed Fencing

13: DESCRIPTION OF SITE

Please provide an accurate description of the site (topography/vegetation) photographs and
comments on any possible environmental impacts.

The site, known as ‘Horse Paddock’, is located to the south of Honeymoon Hill on Tipperary
Station. It falls within the Wriggley and Jindara land system and is located over the Jindukin
and Tindall aquifers.

From a desktop analysis, soils within Horse Paddock can be described as Tippera soil,
comprising Loamy Red and Clay Red Earths, with minor inclusions of Elliot Loamy Yellow Earths
(refer Attachment 4 for relevant maps and photos). Belonging to the loamy subgroup of the
Red Earths, they are massive with a porous earthy profile and are well drained. These soils
commonly occur on sediments of the Jinduckin formation, a unit of siltstone with bands of
dolomite and sandstone, but sometimes are associated with the Tindall limestone (Aldrick &
Robinson, 1972).

The soils are well drained with slow run off and flat to gently sloping to 2%, as analysed with
DEM imagery. On-site inspection, gradients are suitable for agricultural use with minimum soil
conservation works required.

The paddock has been previously cleared and used for cropping over the last 30 years. During
the 2013/14 wet season, it was planted to Sorghum, however it has also previously been
cropped with Maize and Cavalcade.

There is a small riparian zone to the west of the paddock that remains uncleared and contains
low open woodland, and tall open woodland on Tenosol soils, unsuitable for cropping.
Additionally another drainage line to the south of the paddock was previously cleared and will
be excluded from further disruption and be rehabilitated.

Soils types (i.e. Land Units) in the Douglas Daly have been broadly classified by Department of
Land Resource Management (formerly Department of Natural Resources, Environment, Tourism

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and Art) scientists into 6 broad Agricultural Capability categories (refer Table 5).

Table 5: Broad agricultural potential classification for Land Units in the Douglas Daly
Soil Classification Recommendations
A Arable with few or slight limitations
B Arable with slight to moderate limitations
C Marginally arable suited to permanent improved pastures given
minimal disturbance at establishment
D Non Arable, suited to rough pasture or semi improved pasture
E Non Agricultural rough grazing of native pastures
CW Seasonal waterlogging

The soil types within classification A, B and C across the property have been reviewed
extensively by soil scientists and agronomists from Northern Development Company, based on
their description and literature. The Land Units on Tipperary considered suitable for
agriculture/cropping or had potential, were verified by on ground analysis. This involved
digging soil pits on a sample of each soil type to a depth of approximately 1.4 metres. Each pit
was described, classified, sampled and photographed by an experienced soil scientist.
Secondary pits were dug nearby to allow the collection of deeper soil samples. The sampling
depth for laboratory analysis at each of the sites was: 0-10cm, 10-30cm, 30-60cm, 60-90cm and
3m. Laboratory analysis by Incitec Pivot on sample sites adjacent to Horse Paddock, and
laboratory analysis undertaken on Horse Paddock by Incitec Pivot previously were
subsequently reviewed.

Based on extensive desktop and field analysis, it was determined that the soil types could be
characterized as having an Agricultural Capability of ‘A’, that is, arable with few or slight
limitations.

14: STAGING OF DEVELOPMENT

Activity Timing Details
(month/year)

Refer to section 10 for comprehensive detail.

Clearing Not applicable Already complete.

Irrigation – Stage 1 June 2014 One to two bores and two 55ha centre
pivots to be installed.

Fencing June 2014 To be erected prior to sowing of crop.

Irrigation – Stage 2 April/May 2015 Remaining irrigation infrastructure to
cover 600ha to be installed

Crop Rotation Not applicable Refer Table 4, Section 10

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