Northern Territory cattle station owners have lost a Supreme Court appeal to receive compensation for future damages from gas exploration in the Beetaloo Basin.

The owners of Beetaloo Station — the property from which the gas-rich basin gets its name — argued in court they should receive compensation from gas company Tamboran Resources' subsidiary Sweetpea Petroleum, over its proposal to clear land for seismic testing on the property.

Seismic exploration involves clearing corridors of vegetation in a grid format so heavy equipment can survey the geological structure beneath the ground.

Justice Peter Barr has upheld a NT Civil and Administrative Tribunal (NTCAT) decision in February 2022 which ruled Beetaloo Station's owners were not entitled to compensation before exploration activity had taken place.

The 1.05-million-hectare property, 750 kilometres south-east of Darwin, is owned by billionaire Brett Blundy and the Armstrong family, and is currently on the market, with expectations it could sell for more than $300 million.

The pastoralist's lawyer told the court that station staff would need to monitor Sweetpea's clearing for weeds, increasing management costs.

Justice Barr ruled that compensation to the landholders could only be considered after the exploration activity had taken place.

"Damage to land or improvements may be temporary, and one would not normally expect compensation to be assessed until such time as Sweetpea had carried out the rehabilitation and remediation measures required," Justice Barr said in his judgement.

Court rules no loss in market value from exploration

The court heard evidence from witnesses from both parties about what impact the seismic testing could have on the market value of the property.