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WRITTEN QUESTION TO THE CHIEF MINISTER BY DEPUTY M.R. HIGGINS OF ST. HELIER
ANSWER TO BE TABLED ON TUESDAY 22nd MARCH 2016
Question
With regard to the renewal of the Fuel Farm lease, will the Chief Minister set out for Members a detailed chronology of the key actions, decisions and events from January 2012 which led to the renewal of the lease, identifying the Ministers and officers (by title) who were involved at each stage?
Answer
This answer has been compiled in the time available since the question was notified to the department (five working days). Because the fuel farm involves seven individual areas of the States of Jersey, it is not possible in the time allocated to research and prepare a written answer to guarantee that records of every key action, decision and event since January 2012 have been identified.
It is, however, a high level chronology of the known key events, meetings and discussions during that time.
If any further key events are identified they will be notified to members in due course.
Chronology – Lease Renewal of LC03 Public to La Collette Terminal Limited (LCTL)
Following an assignment of the lease from Shell UK Limited and Esso (the Assignors) to Esso and La Collette Terminal Limited (LCTL) on 26 July 2009, at 1 January 2012 the Fuel Storage site LC03 was subject to a lease from the Public to Esso and LCTL.
The lease was due to expire on 31 January 2016.
The option to buy the fuel farm equipment required notice to be served no later than 18 months before the lease expired (i.e. 31 July 2014)
Below are Jersey Property Holdings (JPH) key actions, decisions and events from January 2012 to September 2015.
Date | Event | Action/Decision | Officers/Minister |
February 2013 | Email correspondence discussing matters relating to the lease and options for regulation | Following a question from a back bencher discussions re ground lease between JPH & fuel consortium. JPH stated that regulation of fuel pricing were issues outside the role of landlord & should be progressed by EDD/CICRA | JPH EDD Ports of Jersey Assistant T&R Minister |
October 2013 | Email correspondence discussing future lease and regulatory matters | JPH asked for discussions at ministerial level. | JPH EDD Assistant T&R Minister CICRA TTS |
25 November 2013 | States and CICRA meeting re LCTL acquisition of Esso interest | JPH and EDD to consider use of ground lease for imposing throughput conditions after proposed acquisition by LCTL of Esso equity | Assistant Minister T&R Chief Officer EDD Chief Officer TTS Fire Service Group Commander Director of Estates JPH Head of Property Ports of Jersey |
16 January 2014 | States and CICRA meeting re letter of commitment' to CICRA from Rubis | JPH, EDD and CMD to work with CICRA to consider how to impose throughput conditions after proposed acquisition by LCTL of Esso equity | Officers from EDD , JPH and CMD |
June 2014 | Outstanding Rent Review finalised on existing lease with Esso and LCTL | Review implemented by JPH – notification issued | JPH Principal Property Manager |
24 July 2014 | Officer working group established to consider future options for fuel farm, including Oxera advice on strategic options | No action agreed | Officers from ED, JPH, Ports of Jersey, CMD |
Period to September 2014 | ED process begun to review competition issues in Fuel Market due to merger | JCRA advised (April 2014) that ED were engaging with the States' Economic Adviser and Oxera to produce formal response to initial CICRA findings on LCTL acquisition of Esso equity in LC | EDD officers CMD Officers |
September 2014 | CICRA issue Decision on re LCTL acquisition of Esso interest | Report issued re Proposed Acquisition by LCTL of ESSO assets at Fuel Farm (M885/12F) – including terms and conditions for policing CICRA agreement | CICRA |
29 October 2014 | States of Jersey approached by Ogiers (LCTL legal representatives) to resume discussions on renewal of lease |
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21 November 2014 | Meeting called by ED to discuss position prior to engaging further in discussions to renew the lease | No actions arose. Meeting to update on CICRA's conditions of LCTL's acquisition of Esso equity and how they would be enforced | Invitees (newly appointed ministers): EDD minister IM ACM Competition Ports GCEO Ports officers EDD officers CMD officers JPH officers |
January 2015 | Officer working group re- formed under Chief Executive to progress fuel farm lease |
| Chief Executive and Officers from ED, JPH, Ports of Jersey, TTS, CMD, Fire and Rescue Service |
15 January 2015 | Meeting Public and LCTL | LCTL set out its preferred route new lease to be concluded as soon as possible, but that in the event that any delay is anticipated in concluding the new lease, an assignment would be | Infrastructure (TTS) Minister Infrastructure (TTS) Assistant Minister Director of Estates JPH Head of Property Ports of Jersey |
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| needed in order to release Esso from the head lease. LCTL reiterated its commitment to investing in this essential piece of Island infrastructure, thereby ensuring continuity of service and supply to the population. |
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28 January 2015 | Officer Meeting |
| CEO CO TTS CO Ports CO ED CMD Officer Director of Estates |
4 February 2015 | Officer and Political Meeting |
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12 February 2015 | Officer group meeting |
| CEO CO TTS CO Ports CO ED CMD Officer Director of Estates |
2 March 2015 | Officer and Political Meeting | Officer meeting to consider terms of lease and operating agreement | meeting schedule attendees: CM TRM ACM (Competition) Infrastructure Minister ED Minister CMD officers Home Affairs Chief Officer JPH officers Fire and Rescue Chief Officer ED Chief Officer Infrastructure Chief Officer Environment Chief Officer |
10 March 2015 | Officer and Political Meeting |
| Meeting schedule attendees: Infrastructure Minister Environment Chief Officer Chief Executive ED Chief Officer Infrastructure Chief Officer Ports of Jersey Fire and Rescue chief officer JPH officers CMD officers |
12 March 2015 | Officer and Political Meeting with Rubis |
| Meeting schedule attendees: Infrastructure Minister Infrastructure Chief Officer JPH officers Law Officers Department Rubis legal adviser Fire and Rescue Chief Officer |
| Development of Operating Agreement |
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18 March 2015 | Travelling Draft Lease Heads of Terms | E-mail LoD to Ogiers | LoD instructed by Director of Estates JPH |
21 April 2015 | E-mail received from ATF indicating their interest in operating the Fuel Farm |
| Email from ATF to JPH |
2 June 2015 | Consent to the assignment of Esso interest to LCTL | Ministerial Decision under delegated authority (DD- PH-2015-0005 refers) | Director of Estates JPH |
12 June 2015 | Assignment Esso interest to LCTL | Court | n/a |
July onwards | Discussions on lease terms – particularly rent and length of term | States of Jersey continue negotiation on terms of lease and development of an Operating Agreement alongside the lease | LoD instructed by Director of Estates JPH |
September 2015 | Political Oversight Group formed to oversee lease renewal |
| Chief Minister, TTS Minister, Both Assistant Chief Ministers, Home Affairs Minister Chief Executive and Officers from ED, JPH, Ports of Jersey, TTS, CMD, Fire and Rescue Service |
January 2016 | Ongoing negotiations for lease/operating agreement with existing operator |
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13 January 2016 | Council of Ministers asked to approve proposals to lease Fuel Storage Site at La Collette to La Collette Terminal Limited for 10 years from 1 February 2016 in the terms set out in the draft Lease and accompanying Operating Agreement | First full briefing re fuel farm with full COM. Ministers & AMs raised a number of questions. | Council of Ministers* Known absences included CM, TRM (minutes confirm actual attendance & any assistant minister substitutes) ACM (Competition) States Greffier Attorney General & other law officers Chief Executive CMD officers Greffe officer Chief Fire Officer Infrastructure officers |
27 January 2016 | Council of Ministers were updated on progress with negotiations on the renewal of the lease for the La Collette Fuel Terminal | Update on fuel farm questions & clarification of legal issues | Council of Ministers (minutes confirm actual attendance & any assistant minister substitutes) ACM (Competition) States Greffier Attorney General Chief Executive CMD officers Greffe officer |
3 February | Council of Ministers considered further the proposed renewal of the lease of the Fuel Farm at La Collette to La Collette Terminal Limited | Further update on fuel farm negotiations & update on latest questions previously posed | Council of Ministers Apologies from – EDD Minister & ACM (Competition) States Greffier Attorney General |
| ("Rubis") for a period of 10 years from 1st February 2016. |
| Chief Executive CMD officers Greffe officer |
5 February | Council of Ministers considered further the proposed renewal of the lease of the Fuel Farm at La Collette to La Collette Terminal Limited ("Rubis") for a period of 10 years from 1st February 2016. | Urgent meeting to discuss fuel farm lease, including oral update | Council of Ministers Apologies from – Environment Minister, External Relations Minister, HSS Minister, Home Affairs Minister, ACM (Competition) States Greffier Law officers Chief Executive CMD officers Greffe officer |
24 February | Council of Ministers considered the renewal of the lease of the Fuel Farm, La Collette to La Collette Terminal Limited ("Rubis") for a period of 10 years from 1st February 2016. |
| Council of Ministers Apologies from ACM (Competition) States Greffier Attorney General Chief Executive CMD officers Greffe officer |
4 March 2016 | Approval of renewal of Lease and accompanying Operating Agreement | Ministerial Decision (MD- PH-2016-0011) | Minister for Infrastructure |
9 March 2016 | States Members Briefing | Officer briefing at St Paul's Centre | Minister for Infrastructure Various ministers & assistant ministers ACM (Competition) for a time Chief Executive CO DfI Chief Fire Services Officer ED Chief Officer JPH Director of Estates CMD officers Law officers States Members (c.20) |
11 March 2016 | Lease passed in Court |
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*Home Affairs Minister was deputised by Assistant Minister for most meetings throughout these discussions | |||