'Reimbursement of pipes only for a certain period of time'

LTO Nederland has not yet reached agreement with Gasunie and TenneT about the compensation farmers should receive for the construction of pipelines in/on their land. Talks have stalled, but will resume after the summer. Biggest point of discussion: the conditions. "Farmers are finding it increasingly difficult to make agreements for an indefinite period of time," says Alfred Jansen, the portfolio holder Lease and Security at LTO Nederland.

Why has the consultation with Gasunie and TenneT stalled?
"We have a cooperation agreement with TenneT and Gasunie, but that agreement expired last year. We have discussed how to proceed. LTO Nederland has put a number of requirements on the table, which Gasunie and TenneT have indicated cannot be realized at the moment. ."

Do these requirements only concern the compensation that farmers receive?
"No. Last year those rates were €3,29 per m² obstructing strip of land (the termination fee) and €1,31 per m² work slip (the additional work allowance). Something should be added to that, because we want a market-based compensation for our members, but that is simply a matter of handshake. We especially want to change the indefinite time that is now attached to the appointment and which our members are increasingly struggling with."

Why is that a sore point?
"The agreements between the farmers and pipeline managers are now always for an indefinite period. That is understandable for a party such as Gasunie or Tennet. The construction is a costly operation, so they prefer not to worry about it afterwards. for the farmer, however, it is simply clear when the pipe will be removed again. A pipe through the country places an obstacle on the ground. This can have a restrictive effect in the event of a possible zoning change or construction plan."

"The conditions must therefore be clear. The moment you start discussing this, however, you end up in a large gray area. When does a pipeline have to be removed again? When does it not have to be? When must the pipeline be changed? destination changes? What is allowed to run through the pipe? And so on, and so on. It quickly becomes very technical and legal. The devil is in the detail."

But the talks are back on track?
"After the previous negotiations had stalled and the matter received attention from the press, we are now talking again. We will in any case meet with Gasunie in September. Then we hope to come closer from a business point of view. With TenneT there is a higher hurdle to overcome. We have heard from our members that the cooperation with this party is very difficult. We would first like to change that; everyone benefits from this. The Ministry of Economic Affairs is also involved in the negotiations and can act as act as a mediator. TenneT has promised to improve."

Why is it important that LTO Netherlands makes agreements?
"You could also leave it to the market. However, this is a very specific matter. There are many commercial parties on the market with sometimes a fairly aggressive approach. And the number of pipelines through agricultural land is only increasing. Knowing that, I think it is good that general agreements are made that all farmers can fall back on."

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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