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STATES OF JERSEY
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LA COLLETTE, ST. HELIER: MODIFICATION OF LEASE OF LAND TO JERSEY GAS COMPANY LIMITED
Lodged au Greffe on 21st June 2005 by the Harbours and Airport Committee
STATES GREFFE
PROPOSITION
THE STATES are asked to decide whether they are of opinion
to re f er to their Act dated 31st July 1984 in which it was agreed to lease an area of land at La Collette of
99,414 square feet to the Jersey Gas Company Limited for 99 years with effect from 1st May 1978 and, that in order to facilitate the construction by the Public of a vaporisation unit on land currently leased to the Jersey Gas Company Limited to the east of the gas storage and distribution area –
(a ) to agree a modification of the Contract Lease agreement between the Public and the Jersey Gas
Company Limited, passed before the Royal Court on 17th May 1991, reducing the area of land leased by the Company to 95,846 square feet as shown hatched on Drawing No. 1662/05/97;
( b ) to authorise the payment of £87,011 to the Jersey Gas Company Limited, as fair and proper
compensation for the loss and disturbance suffered by the Company, from the Environment and Public Services Committee Capital Vote C0393 – South La Collette Reclamation;
(c ) to authorise the payment by the Public of all legal fees associated with the modification of the
contract lease agreement; and
(d ) to authorise the Attorney General and the Greffier of the States to pass the necessary contracts on
behalf of the States.
HARBOURS AND AIRPORT COMMITTEE
Notes: 1. T h e Environment and Public Services Committee supports this proposition. 2 . T h e Finance and Economics Committee supports this proposition.
REPORT
As part of the original construction of La Collette reclamation site, 2 storm water outfalls were constructed through the outer enclosing arm. These outfalls provided an exit point to the sea for the storm water and emergency fire fighting water originating from the Fuel Farm and Gas Company sites.
When La Collette reclamation Phase II was constructed, the new enclosing arm and the infill material effectively land-locked' the 2 outfalls. Negotiations between the Public Services Department and the Jersey Gas Company Limited have been ongoing for over 10 years to resolve the issues caused by this situation but solutions have now been agreed to the satisfaction of all parties.
The storm water from the Gas distribution and storage area will be dealt with by replacing the outfall with a soakaway capable of taking the maximum rainfall likely to fall on the site. Associated with this is the need to construct a gas vaporisation area on land currently leased by the Jersey Gas Company Limited to vaporise all Liquid Petroleum Gas (LPG) prior to it entering the soakaway.
Following advice received from both the Health and Safety Inspectorate and the Law Officers, it is clear that the States have a statutory obligation to install the gas vaporisation unit and also compensate any loss.
Under the terms of the original lease, the Jersey Gas Company Limited is entitled to compensation due to the loss of an area of the land which is currently leased. An independent Chartered Surveyor was employed to determine the level of compensation payable and enter into negotiation with the Jersey Gas Company Limited.
The agreement reached provides for the Jersey Gas Company to give up an area of 3,568 square feet of the land currently leased, to enable the construction of the vaporisation unit, and for which the Company will no longer be charged rent for the remaining period of the lease which terminates in 2077. Fair and proper compensation has been agreed in the sum of £87,011 for the loss and disturbance which the Company will suffer. In addition, the Public will pay all legal fees associated with the modification of the contract lease agreement.
The construction cost of the vaporisation unit is estimated to be £96,000, which together with the compensation and legal fees will be funded from the Environment and Public Services Committee Capital Vote C0393 – South La Collette Reclamation, which is used for the construction of La Collette Phase II works.
There are no other financial or manpower implications.