## ENVIRONMENTAL REGULATION AND PERFORMANCE (CONTINUED) 

  The pumping of underground water for the prescribed purpose of ‘Livestock Intensive’ requires licensing and regular reporting and monitoring. The Company has several licences allowing this pumping subject to these regulations and conditions being met. 

  Stock watering facilities, which utilise bores, require licensing in Queensland, and registration in the Northern Territory. 

  Stock water facilities shared with Queensland Stock Routes are administered by local governments, guided by legislation and framework developed by the Queensland Government. Shared water facilities need to comply with registered Stock Route water agreement requirements. A Permit to Occupy is also required if this facility is unfenced within a station grazing area. 

  Vegetation Clearing Permits are sought under the Vegetation Management Act 1999 (Queensland) for any clearing required for ongoing operations including but not limited to the development of areas for land use change and the installation of infrastructure such as fence lines and water development. 

  The Company continues to be involved in consultation processes for example in the areas of Water Resource Planning, Wild Rivers legislation, and the conversion of land titles in relevant areas. 

  The Company must abide by environmental and other obligations contained in Queensland’s State Rural Leasehold Land Strategy in respect of the Company’s pastoral leasehold interests in Queensland. The State Rural Leasehold Land Strategy is a framework of legislation, policies and guidelines supporting the environmentally sustainable, productive use of rural leasehold land for agribusiness. 

  Northern Australian Beef Limited (NABL), a wholly owned subsidiary of the Group has been issued with an Exceptional Development Permit (EDP) to build an abattoir on land owned by NABL at Livingstone Farm, Noonamah, Stuart Highway, NT. That EDP contains stringent and detailed environmental monitoring requirements overseen and administered by Department of Lands, Planning and Environment (NT). NABL is not aware of any breaches of the EDP requirements to date, and strives to comply in all respects with the terms of the EDP. 

The Board considers the Company has adequate systems in place for the management of its environmental requirements and is not aware of any material breach of environmental requirements of licence conditions as they apply to the Group. 

The Company is aware of the reporting requirements under the National Greenhouse and Energy Reporting Act 2007 (the Act).  The Company conducted an assessment, which complies with the framework provided by the Department of Climate Change and Energy Efficiency. This assessment concluded the Company’s energy consumption and greenhouse gas emissions are below thresholds set for mandatory registration and reporting under the Act. Previously, the Company reported voluntarily under the ‘Greenhouse Challenge Plus’ (GHC) Program. This program ceased in June 2009, but the Company continues to collect greenhouse emissions and energy consumption data using the GHC reporting structure. 

With respect to the Australian Federal Government’s carbon schemes certain emissions from agriculture have been exempted. However the Company continues to monitor and assess carbon reduction schemes for risks and opportunities. 

## SHARE OPTIONS 

## Unissued Shares 

As at the date of this report, there were 2,798,343 unissued ordinary shares under options and performance rights (3,217,157 at reporting date). 

Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body corporate or in the interest issue of any other registered scheme. 

## Shares Issued as a Result of the Exercise of Options 

During the financial period, there were no options to acquire shares in the Company exercised. Since the end of the financial period, no options have been exercised. 

At the Company’s Annual General Meeting on 11 May 2011, shareholders approved a new Performance Rights Plan, which has taken the place of the option plan for future incentive awards comprising performance rights. There will be no further grants of options under the option plan in the future. The rights of the existing option holders will remain until such time as the options are either exercised or the rights lapse. 

There were no Performance Rights exercised under the AACo Performance Rights Plan during the three months to 31 March 2013. 

