Notional Field Development Final Report - EBN
Notional Field Development Final Report - EBN
Notional Field Development Final Report - EBN
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<strong>EBN</strong> <strong>Notional</strong> <strong>Field</strong> <strong>Development</strong> Plan<br />
4.2.14.1 Land access<br />
According to Article 4 of the MA, landowners within a license have to allow all mining activities that take<br />
place deeper than 100 meters below ground level. In case of refusal, a court order might be required.<br />
This can easily take longer than a year.<br />
There are different approaches to achieve an approval for land use with a landowner.<br />
The approach to follow depends on future investment at a site and the approach taken by the E&P<br />
Operator/developer. In general, the operator would prefer to become landowner of sites where wells or<br />
production station(s) will be situated, or if a long duration of activities is foreseen. This includes (certain<br />
rights with respect to) a certain buffer zone around the facilities. However, a rent or lease (sale/saleback)<br />
construction (agreement) may be better suited, in cases where exploratory drilling takes place,<br />
and where duration of activities are expected to be undertaken within a far shorter timeframe.<br />
It is more common to achieve a settlement of Business Rights for the routing of (underground) pipelines,<br />
in accordance with Dutch law (via an annual or ‘one-off’ payment). In all cases, there is an obligation to<br />
compensate the landowner for damage (if any) and the use of the property (ref. article 4, MA).<br />
Settlement of Business Right to use the property;<br />
After constructing a well pad and/or a pipeline, a Settlement of Business Rights should be prepared to<br />
ensure an operator has the right (to drill) on a landowner’s property. This settlement of Business Rights<br />
is a clear and transparent contract between the operator and landowner, which stipulates the juridical<br />
property of the pad, the well, and the pipeline, and practical appointments such as service activities,<br />
repair, access etc. Furthermore, this contract defines the rules for compensation in case of damage,<br />
disputes or any other irregularities. An environmental ’base-line’-survey (‘0’-study) is conducted, and<br />
then added as part of the agreement.<br />
Amicable expropriation of the property;<br />
During the design phase of the project (in particular towards the large scale production phase), a<br />
landowner feasibility study needs to be conducted. This study should provide an overview of<br />
landowners who are willing to cooperate on the roll-out of the infrastructure (access roads, well pads<br />
and pipeline routes). Such an approach should make it possible to acquire a property portfolio via<br />
amicable expropriation. After selecting the most suitable instrument per landowner, the execution<br />
stage follows. This will include all aspects of the expropriation, including negotiation, taxation,<br />
settlement of the contract and entry into the national land registry (‘Kadaster’).<br />
As a final remark on the subject of land access: In case the ‘National Coordination Procedure’ (NCP) is<br />
declared applicable, additional powers to enforce dispossession are assigned to the Minister related to<br />
the use and acquisition of private plots.<br />
© 2011 Halliburton All Rights Reserved<br />
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