Nornew's local business plan

Written by Nardus

Monday, 08 December 2008

Nornew is trying to secure not just a single path to the Millennium Pipeline but to control all the paths...The landowners holding those unused easements are giving up the right of control over their land, They will have a perpetual encumbrance on their property record and will receive zero compensation. Nornew plans on extending their operations to the south toward the Millennium Pipeline. In the Norse Energy webcast  http://www.cik.no/norse/081111/081111_norse.php the presentation mentions these plans and a map is shown. In the greater Oxford/Norwich area, Nornew's current strategy is to retract from leasing but to secure right of ways/easements across properties ostensibly for the purpose of installing gathering lines connecting future well sites to the Millennium Pipeline. Nornew is trying to secure not just a single path to the Millennium Pipeline but to control all the paths. It seems an attempt is being made to block other natural gas companies from obtaining a route along which they might transport gas to the pipeline. Nornew is trying to secure right of ways/easements from many landowner instead of only along the paths that they actually need to get access to the pipeline. The Nornew agreement seems to contain  a clause defining the easement as "exclusive". Thus, the landowner cannot grant any other entity an easement on other parts of the property. Nornew may only need a 50-75 feet wide strip of land for the transport line. The agreement stipulates that the landowner will be paid when Nornew lays a line on the land. Nornew will need to install only a few lines in the area. The rest of the easements will serve to block others from using the land. The landowners holding those unused easements are giving up the right of control over their land, They will have a perpetual encumbrance on their property record and will receive zero compensation. If another company is interested in producing gas in the area it would have to pay Nornew's price to get the gas across the Nornew easements. Nornew will be in a position to offer less when leasing land.

Last Updated ( Monday, 08 December 2008 )