STAFF BRIEFING NOTES

EASEMENT AGREEMENTS

Zora Crnojacki

Form of Easement Agreements

Issues Covered:

1.	Outstanding negotiations with landowners

2.	Letter of Understanding -a framework for negotiations

3.	Form of easement agreements

NOTE: We will coordinate with Sarnia Industrial Line application (C. Mackie)

References:

Prefiled evidence Section 8

IR 36; 37; 38; 39; 40

Supplementary IR 9; 10

Background:

•	The width of the required permanent easement is 28 meters. In all instances there is a 16 meter wide new land and a 12 meter overlap with the adjacent easement (see IR45 attachment). This 12 meter overlap is where the cumulative impact of construction on soils, vegetation, crop, takes place.

•	Along Beachville to Bright loop there will be 4 parallel easements after the proposed project is completed. The total width of the new pipeline corridor is between 50.8 and 61.5 meters.(Ref Board Staff IR # 39)

•	Along Owen Sound to Brantford there will be 2, 3, and 4 parallel easements after the proposed project is completed. The total widths of the pipeline corridor will be between 35.6 and 52.3 meters. (Ref Board Staff IR # 39)

•	According to Section8/Schedule 3 in total, along Beachville Bright there are 29 private landowners, local and regional municipalities, Ministry of Transportation, Upper Thames River CA, and Union owns some right of way lands.

•	According to Section8/Schedule 4 in total along Owen Sound to Brantford there are 29 private landowners, 2 corporate landowners (Paris Pits Ltd., Blue Circle Canada), Canadian Pacific Ltd. (permit), local municipality T. of North Dumfries (road allowance), Regional Municipality of Waterloo, Grand River CA (2 locations) MNR (water-lot plan), MoT (highway crossing) and Union owns some right of way lands.

•	Total area of permanent easement required is 43.1 hectares for Owen Sound to Brantford and 54.1 hectares for Beachville to Bright. This is a total of 97.2 hectares (240.2 acres) of permanent easement required for both loops. The compensation amount including consideration, disturbance damage, and crop damage, for EBLO 267 NPS 48 Dawn to Enniskillen, was about $ 11,000 per acre. (EBLO Board Staff IR # 24) This gives an estimate of about total $ 4.4 million.

•	Total area of temporary easement required is 16 hectares for Owen Sound to Brantford and 10.5 hectares for Beachville to Bright. This is a total of 26.5 hectares (65.5 acres)of temporary land use requirements for both loops. The compensation amount for temporary land use, for EBLO 267 NPS 48 Dawn to Enniskillen, was about $ 1,000 per acre. (EBLO Board Staff IR # 24). For the proposed project it translates into $65,500 for compensation for use and damages of temporary land use lands.

•	Temporary easements are in the form previously approved by the Board. Temporary easements last for 2 years beginning in the year of construction, to allow Union to perform further clean-up. (Ref. Evidence Section 8/par. 3/p1.)

•	In the 1994 original landowners signed a permanent easement form which was approved by the Board in EBLO 251 (NPS48 Bright to Owen Sound, 1996).(Ref. Evidence Section 8/par 5/p1.) Subsequently, the form was changed as a result of negotiations between Union and landowners in EBLO 267 (Dawn to Enniskillin) and RP-1999-0047 (Century Pools II). This changed easement agreement form was offered to all landowners who signed previously and to all unsigned landowners.

•	Union submitted a form of permanent easement updated with highlighted changes in response to IR 40. As already emphasized, it was offered to all unsigned landowners as well as to all previously signed.

•	Negotiations for land rights between Union and landowners is a 2 stage process. In the first stage Union works with a landowner committee to develop terms of the LoU which will serve as a framework for negotiations with individual landowners. In the second stage Union negotiates with individual landowners. Also, Union aligns an independent qualified real estate appraiser to prepare a report on baseline value of land along the route.

(Ref. Evidence Section 8/par. 8/p2)

•	Updated version of the Letter of Understanding was endorsed and signed by both landowner Committees in the fall 2000.

•	According to the Supplementary IR 9, as of December 2000, there were 8 unsigned agreements, 4 of which involved the issue of sterilized gravel.

OS.B # 5 - Blue Circle Canada Inc.

OS.B # 35,36, and 39 - Paris Pits Ltd.

Questions:

1.	Please describe the process of negotiation with landowners regarding the easements associated with the proposed loops.

Ref. Supplementary IR # 10

2.	Referring to the attached Revised Letter of Understanding with highlighted changes comparing to the letter of Understanding offered to landowners in 1994 please discuss the revisions to this document.

Ref. IR # 34 and Supplementary IR # 9

As of December 2000 there were 8 outstanding easement agreements between Union and affected landowners. Out of these 8, 4 involve gravel sterilization issue with Blue Circle Canada Inc ( 1 agreement) and with Paris Pits Limited (3 agreements). These 4 outstanding "gravel easements" are located along Owen Sound-Brantford loop.

3.	Please describe the current status of negotiations between Union and Blue Circle Canada and Paris Pits Limited.

Ref. IR # 38

4.	Please outline the main features of the compensation package offered to the landowners affected by the proposed loops. Highlight the differences in comparison with the compensation offered to previously signed landowners.

5.	In terms of the amount of compensation per acre of land of temporary and permanent easements respectively, that are offered by Union, please indicate if the amounts offered are comparable to those offered in the EBLO 267 in 1998.

6.	Identify remaining outstanding easement agreements specifying:

location

landowner names

status of negotiations

prospects of negotiations

7.	Regarding the crown land please indicate the form of easement agreement. Is the form different from that offered to private landowners ?

If there is a different form crown land please undertake to file with the Board forms of the agreements.