WAVERLEY RAILWAY (SCOTLAND) BILL CONSIDERATION STAGE EVIDENCE: PROMOTER RESPONSE TO GROUP 2 RESPONSE TO OBJECTIONS

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1 WAVERLEY RAILWAY (SCOTLAND) BILL CONSIDERATION STAGE EVIDENCE: PROMOTER RESPONSE TO GROUP 2 TRANSCO PLC (OBJECTION 116) A. Impact on property interests RESPONSE TO OBJECTIONS Promoter s Response 1. The Promoter notes that the objection states that Transco plc supplies gas though apparatus within the area affected by the works proposed by the Promoter in connection with the railway. It is stated that the company also has property interests that will be affected. 2. The objection notes that the objector has concerns that its apparatus and property will be severely affected by the proposals in the Bill. There are concerns that the Bill does not provide adequate protective provisions for the benefit of the objector s apparatus and protection of its statutory rights and obligations. 3. The Promoter notes that Transco no longer owns most of the gas apparatus affected by the Bill. Transco s Parliamentary Agents have indicated that there is believed to be a single affected main that is owned by Transco, but promised details have not yet been supplied to the Promoter. The Promoter also notes that the objector s written evidence fails to clarify the position. 4. It is apparent to the Promoter that the Transco s grounds of objection to the Bill are substantively the same as Scotland Gas Networks. The Promoter s responses to Scotland Gas Networks therefore apply also to Transco and the Committee is referred to those responses. 5. Transco s Parliamentary Agents have volunteered that the extent of Transco s assets now is such that the full protection that had originally been offered to Transco may not be required. The Promoter has nonetheless made clear that the full set of agreed terms will be on offer to Transco, as it is to Scotland Gas Networks. 6. The witness for the Promoter on this topic is: Alison Gorlov, Partner, John evidence on this topic lasting 5 minutes. B. Impact on assets and infrastructure 7. The objection states that the Bill should not be passed into law unless it is amended to provide sufficient assurances to the objector to ensure the 1

2 safety, and safe operation, of its apparatus. The objection states that the safe operation of gas pipelines is paramount. It also states that the objector is concerned that, without such amendments and assurances, the railway proposals will have an adverse impact on its business. 8. The Committee is referred to the responses to the objection of Scotland Gas Networks. 9. The Promoter recognises Transco s statutory responsibilities. They will be protected by the Agreement mentioned above. The Promoter also accepts that Transco has interests that are potentially compensateable. In accordance with the compensation code applied by the Bill (and applicable to compulsory purchase throughout Scotland) if compensation payable cannot be agreed it will be determined by the Lands Tribunal for Scotland. These matters are considered in more detail in the Promoter s policy paper on Compulsory Purchase and Compensation, which is attached. 10. The witness for the Promoter on this topic is: Alison Gorlov, Partner, John evidence on this topic lasting 10 minutes. SCOTLAND GAS NETWORKS PLC ( SGN ) (OBJECTION 140) A. Impact on property interests, assets and infrastructure Promoter s Response 11. The Promoter understands that the objector is a company which acquired from Transco on 1 June 2005 parts of Transco's gas network in Scotland. The objector has statutory duties and powers in relation to the conveyance of gas under section 7 of the Gas Act The objection expresses concerns that the proposed railway works go through the area where the objector s gas supply apparatus is located and also where the objectors have property interests. The objector states that this apparatus and property will be severely affected by the proposals contained in the Bill. 12. The objector states that the Bill does not provide adequate protective provisions for the benefit of its apparatus and for the protection of its statutory rights and obligations. The objector believes that the Bill should not be passed into law unless amendments are made and sufficient assurances given to the objector to ensure the safety, and safe operation, of its apparatus. 13. If the amendments the objector is seeking are not made to the Bill, the objector states its concerns that the proposals for the railway will have an adverse impact on its business. The objector states that the safe operation of gas pipelines is paramount. 2

3 14. It is inevitable that an infrastructure scheme of this sort will affect utility apparatus, including SGN s. The objective must be to ensure that such effect is minimised and mitigated so far as reasonably practicable. As an essential first step in this process, on 7 January 2002 the project (acting through Scott Wilson as project engineers) wrote to all utilities, including SGN. Utilities were requested to provide details of their relevant apparatus and the information obtained was taken into account when engineering the scheme prior to the preparation of the Bill. 15. The Bill itself applies the New Roads and Street Works Act 1991 and the protections for statutory undertakers in sections 224 to 227 of the Town and Country Planning (Scotland) Act 1997 ( the 1997 Act ). The effect is that, as respects utility apparatus that is in roads, all utilities (including SGN) have the same protection for their apparatus as they enjoy in all non Bill cases where apparatus is disturbed by infrastructure and other road works. In relation to off-street apparatus, the Bill s provisions result in the utilities getting the benefit of the protections for which the 1997 Act provides in cases where utility apparatus is disturbed as the result of development on land. 16. The Bill itself does, therefore, provide for statutory protections for apparatus on terms that are of general application in similar circumstances where a Bill is not required. However, it is the case that conventionally private legislation (such as the Bill) includes protective provisions for utilities that are enhanced over and above the general statutory protections included in the Bill. SGN s written evidence refers to the draft protective provisions Agreement that has been the subject of negotiation since July By offering this Agreement, the Promoter has made clear its willingness to commit to this enhanced level of protection. 17. From July 2004, the Promoter was actively negotiating with SGN on a draft agreement. There are outstanding issues on the revised draft Agreement, with outstanding matters to be dealt with on SGN s part before the Promoter can take the Agreement much further forward. The Promoter anticipates that agreement will be reached in the very near future. Given that SGN s Parliamentary Agents were provided with a revised draft Agreement on 11 th November, and a further letter on 13 th November, it is hoped that all the issues have now been identified for resolution. 18. The witness for the Promoter on this topic is: Alison Gorlov, Partner, John evidence on this topic lasting 10 minutes. 3

4 B. Contact with the Promoter Promoter s Response 19. Scottish Gas Networks (SGN) and National Grid Gas plc submit, in section B of their Group Submission to the Committee, that the Promoter has failed to respond in the course of the negotiation of protective provisions. 20. The Promoter reiterates its position as stated in paragraph 17 of this Response, that it is prepared to enter into an agreement with the objectors. The Promoter notes that the sale of Transco s property, assets and interests to Scottish Gas Network confused issues for a while which lead to some delay in negotiations. The Promoter notes that, on 7 January 2002, the Waverley Railway Project (acting through Scott Wilson as project engineers) wrote to all utilities, including Transco. A copy of the letter sent is attached to this response. Utilities were asked to provide details of their relevant apparatus so that it could be taken into account when engineering the scheme prior to the preparation of the Bill. 21. The Promoter notes, as set out in paragraph 3 of this Response, that it awaits details of Transco s property interests. In the meantime the Promoter has resumed negotiations with SGN and is confident that agreement is not far off. 22. The witness for the Promoter on this topic is: Alison Gorlov, Partner, John evidence on this topic lasting 5 minutes. 4

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