Responding to articles last week in the Newcastle Herald, Transport for NSW said it preferred to negotiate agreement with landowners rather than use compulsory acquisition.

Transport said residents were told in 2016 of plans to acquire 36 properties - some of them partial rather than total acquisitions - covering a total of 114 hectares.

Most of the properties are rural farms, but a Singleton Council property at Glenridding, which was used as a council depot, is also within of the acquisition footprint.

Singleton council says the amount it has been offered is orders of magnitude below what it is costing to move from the site and to re-establish elsewhere.

Transport said it used "independent and qualified valuers" to propose compensation that includes "payments for the value of the land, and for businesses any interest in the land, along with legal costs, valuation fees, relocation expenses, eligible stamp duty costs and mortgage re-establishment costs".

If agreement could not be reached, the Land Acquisition (Just Terms Compensation) Act 1991 was used, with the Valuer General (VG) engaged to "independently determine" the landowner's entitlement.

Landowners could go to the Land and Environment Court if the VG's assessment was deemed unacceptable, with early stage conciliation overseen by a court commissioner.

Residents complained to the Herald that they were being charged rent on their own land. Transport said rent was charged, but it was offset against the eventual compensation payment. It said interest also accrued on a compensation payment once the acquisition was formally notified or "gazetted" by the government.

"In many cases, the amount of interest accruing is similar to or greater than the amount of rent payable," the department said.

The Valuer General said its independent valuers were required to consider a range of factors including market value at the acquisition date, special value to the landowner, loss due to severance or disturbance and an disadvantage caused by relocation.

"A qualified and independent valuer inspects the property and considers all information provided by the landowner and the acquiring authority, including valuation reports as well as independent reports as needed," the VG's executive director, Steward McLachlan said.

He said landowners were encouraged to "provide information, ask questions and raise any concerns".

"The expert independent valuation is peer reviewed by between two to five certified practising valuers depending on the valuation complexity to ensure the determination has been rigorously reviewed," Mr McLachlan said.

"A preliminary valuation is then made and provided to the landowner and acquiring authority who are given an opportunity to make submissions if they believe there are any errors of fact, prior to a final determination being issued.

"If a landholder is not satisfied with the Valuer General's final determination, they can lodge an objection with the Land and Environment Court. Court proceedings are between the landholder and the acquiring authority."

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