NZIER report on compensation for transmission infrastructure
NZIER report on compensation for transmission infrastructure
NZIER report on compensation for transmission infrastructure
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enough to allow <strong>for</strong> machines to harvest trees safely <strong>on</strong> each side of the easement. 20<br />
Transpower needs to minimise the possibility of damage in the first instance by<br />
setting an adequate easement width.<br />
Dairy and crop land can, to a somewhat lesser extent, be used in the same manner<br />
as surrounding land. The key issue facing these landowners is in higher operati<strong>on</strong>al<br />
costs as discussed below in 4.2. The sheep and cattle farmers we spoke with were<br />
relatively unc<strong>on</strong>cerned about transmissi<strong>on</strong> <strong>infrastructure</strong> <strong>on</strong> their land (provided it<br />
was away from housing). Land under transmissi<strong>on</strong> lines is typically as productive as<br />
surrounding land. Compensati<strong>on</strong> should, however, be enough to reimburse <strong>for</strong><br />
restricti<strong>on</strong>s <strong>on</strong> land use and any decrease in the sales price of the land.<br />
In some countries unease with how easement values are estimated has lead to<br />
requirements that utilities provide more than estimated costs to landowners. In<br />
Québec, as menti<strong>on</strong>ed above, this is d<strong>on</strong>e by providing 100 percent of the land<br />
market-value of the easement <strong>for</strong> the whole easement (100 percent sterilisati<strong>on</strong> in<br />
spite of most the land still providing a return to the landowner). 21 Also in Québec<br />
compensati<strong>on</strong> is adjusted upwards depending <strong>on</strong> how the lines dissect land. The<br />
recent six to seven fold increase in compensati<strong>on</strong> in Alberta suggests an element of<br />
compensati<strong>on</strong> somewhat greater than costs. 22<br />
4.2 Operati<strong>on</strong>al costs<br />
We spoke with New Zealand landowners and managers, and two land-valuers to get<br />
an indicati<strong>on</strong> of the main operati<strong>on</strong>al costs imposed <strong>on</strong> landowners by transmissi<strong>on</strong><br />
<strong>infrastructure</strong>. We c<strong>on</strong>sider separately costs <strong>for</strong> four different types of land use:<br />
Commercial <strong>for</strong>ests<br />
Crops<br />
Dairy<br />
Hill or high country sheep or cattle farming<br />
There is a degree of comm<strong>on</strong>ality in the costs imposed by transmissi<strong>on</strong> <strong>infrastructure</strong><br />
<strong>for</strong> different land uses. Crops and dairy farmers both comm<strong>on</strong>ly face additi<strong>on</strong>al<br />
irrigati<strong>on</strong> costs <strong>for</strong> example. All landowners have some additi<strong>on</strong>al expenses <strong>for</strong><br />
c<strong>on</strong>trolling pests and weeds around towers. There are also some costs unique to<br />
particular land-uses. As we understand it the main c<strong>on</strong>cern facing <strong>for</strong>estry<br />
20 Liabilities <strong>for</strong> damage facing <strong>for</strong>estry owners is discussed under operati<strong>on</strong>al costs.<br />
21 Hydro-Québec 2000. Agreement <strong>on</strong> the sitting of power transmissi<strong>on</strong> lines <strong>on</strong> farms and<br />
woodlands.<br />
22 Beesley, S 2008. Electricity #4 Compensati<strong>on</strong> <strong>for</strong> Affected Landowners. CABREE School of<br />
Business working paper Surface Rights and Land Compensati<strong>on</strong> Board at<br />
http://www.srblcb.gov.ab.ca/<br />
<str<strong>on</strong>g>NZIER</str<strong>on</strong>g> – Compensati<strong>on</strong> <strong>for</strong> transmissi<strong>on</strong> <strong>infrastructure</strong> 31