NT government says Claravale land-clearing dispute is now settled

After a years-long legal battle over allegations of the unpermitted land clearing of 286 hectares at Claravale Station, the NT government has finally formalised an out-of-court settlement. The government first announced a settlement had been reached more than a year ago, but the agreement was never signed. What's next? Under the deal, the station owners must revegetate and protect an 80-hectare corridor along the Daly River, creating a buffer zone intended to safeguard the sensitive river environment. A years-long legal fight between the Northern Territory government and the owners of Claravale Station over the clearing of hundreds of hectares of land without a permit has been settled outside of court. However, it is not the first time the government has announced a settlement deal. More than a year on, following further litigation, the owners of Claravale have only recently signed the deal under the original terms. "Whilst there was an agreement reached in March last year, it was not formally signed by the owners of Claravale Farm, which meant that the matter continued to be listed in the court," Mr Burgoyne said in a statement to the ABC. "The agreement between the NT Government and Claravale Farm has now been formally signed by both parties." How did this happen? The dispute dates back to late 2023 , when the then-Labor government first launched legal action against Claravale in the wake of national scrutiny on the issue of land clearing for the territory's cotton industry. Claravale is a 67,000-hectare property north of Katherine, which comprises Claravale Station and the smaller Claravale Farm, along the Daly River. The action involved allegations that 286 hectares of the property had been cleared without a permit, in contravention of the NT's planning laws. The then-NT minister for infrastructure, planning and logistics, Joel Bowden, said the prosecution would "send a message" that land clearing without a permit would be "treated seriously". The action received strong support from environmental groups, including the NT Environment Centre, which at the time described it as a "massive win". Then, in March 2025, the government publicly announced the case had been settled. In late 2025, Claravale Station and the neighbouring Claravale Farm were listed for sale, with the owners seeking upward of $30 million for the property. Earlier this year the case was listed in the Darwin Local Court after the NT government attempted to block Claravale from selling the property. Sources have told the ABC that legal representatives for Claravale reached out to the NT government a fortnight ago seeking to have the matter settled, despite rejecting the agreement in 2025. Corridor of land to be revegetated In 2025, Mr Burgoyne told the ABC that under the terms of the agreement, the station owners would be required to revegetate and protect a particularly sensitive strip of land along the Daly River. The 80-hectare corridor is separate from the land where the unauthorised clearing took place, but Mr Burgoyne said the agreement would secure a "buffer zone" between the farm's operations and the Daly River, addressing a key concern raised by community members. "They're now going to lose 80 hectares of land along a river, and they're going to have to wear the cost of revegetating that area," Mr Burgoyne told NT Country Hour in 2025. At the time, Mr Burgoyne said the settlement would avoid the possibility of years of costly litigation. Despite a year having passed since he first said an agreement had been reached, Mr Burgoyne said he was pleased the parties had now formalised the settlement. "I'm pleased this matter has now been finalised so that the 1.2 kilometres of land adjacent to the Daly River is protected now and into the future," he said. Despite attempts, the ABC was unable to reach Claravale's owners or its lawyers for comment for this story.