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MPs angry as Shell distances itself from NAM earthquake claims

There has been furious reaction after energy giant Shell distanced itself from possible claims for earthquake damages in Groningen province made against its subsidiary gas production company NAM.

MPs are calling for an emergency debate to discuss the issue, the Financieele Dagblad reported on Monday.

In addition, farmers in the earthquake-damaged province of Groningen are planning a demonstration Monday evening in Delfzijl, local paper Dagblad van het Noorden said. Farmers claim subsidence harms their crops and threatens their manure stores.

Moreover, many claim NAM does not have the money to settle the escalating claims which are certain to reach billions of euros.

The row was triggered on Saturday when Trouw said Shell was backing away from possible earthquake damages claims made again NAM, an assertion based on Shell Nederland’s annual report published in June 2017. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell withdraws NAM guarantee, but why?

NAM had made provisions for € 495 million to compensate for earthquake damage, according to the annual report. That is a pittance compared to the final costs. Last week, NAM lost another lawsuit about the decline in value of houses. That damage is valued at at least € 1 billion. The ‘Groningen file’ will cost billions.

Printed below is an English translation of an article published today by the Dutch Financial Times, Financieele Dagblad

Carel Grol • Entrepreneurship

Shell withdrew the so-called 403 statement for NAM, which concerns liability for subsidiaries, last June. This has been overtaken by newspaper Trouw. Does Shell, therefore, lose its responsibility for compensating for the damage caused by the damage? Shell Nederland states that NAM will meet all its obligations, but experts doubt that. Politics The Hague is furious. Five questions about this legal provision, which can have far-reaching consequences. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Alternatives to Groningen gas are expensive, complex and politically sensitive

Printed below is an English translation of an article published by the Dutch Financial Times, Financieele Dagblad

Louis Hoeks Carel Grol • Economics & Politics: 25 JAN 2018

Since the earthquake at Zeerijp earlier this month everyone in politics The Hague agrees that the Netherlands should stop accelerating the use of Groningen gas. But good intentions come up against the unruly reality.

The five biggest obstacles in a row.

1. Gasless homes

Today the House is talking about a bill from Liesbeth van Tongeren (GroenLinks) to remove the obligation to connect new homes to the gas grid. The Cabinet also wants the gas connection obligation to be replaced by a heat law and that in 2021 approximately 50,000 new homes will be delivered by nature without natural gas.

However, those new houses are small beer. The pain is in the existing building: about 96% of the 7.7 million Dutch homes are currently dependent on gas for heating. There are no hard figures about the costs, says a spokesperson for Vereniging Eigen Huis. But it is certain that it will be a billion-dollar job. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Groningen Earthquakes: Uncertainty for NAM is increasing further

Printed below is an English translation of an article published by the Dutch Financial Times, Financieele Dagblad

Shell and ExxonMobil are the shareholders, so the real power lies in The Hague and Texas.

 Carel Grol • Entrepreneurship: 24 JAN 2018

The NAM must pay. Again. The gas extraction company already had to pay for cracks in walls and for psychological distress in people in the earthquake area, and now the company also has to pay for the reduction in the value of houses through gas production. Regardless of whether there is physical damage to these houses and whether they are sold, the court ruled yesterday. According to the Groningen lawyer Pieter Huitema, who represents many of the homeowners, it will cost NAM € 1 billion. “And maybe more.”

For example, the year is less than a month old or the Dutch Petroleum Company has already received some hard taps. Two weeks ago, in Zeerijp, the quake of 3.4 was on the Richter scale, the heaviest earthquake in five years. Immediately, Minister Eric Wiebes of Economic Affairs and Climate judged that gas extraction had to go down. The torchlight procession in Groningen, as a protest against the extraction, attracted some ten thousand people. A record. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell/Exxon NAM Earthquakes: Thousands of people protested in Groningen last week

Printed below is an English translation of an article published today by the Dutch Financial Times, Financieele Dagblad

Thousands of people protested in Groningen last week against natural gas drilling. Photo: Joris van Gennip

From our editor • Entrepreneurship

Shell is no longer responsible for debts with the 50% subsidiary NAM. The damage to houses caused by earthquakes in Groningen is therefore not at the expense of the petroleum company. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Court decision against SHELL/EXXON (NAM) in earthquake damage claims

English translation of a news brief issued 25 Jan 2018 by NAM, the Dutch Gas company owned jointly by Shell and Exxon. 

Hof van Leeuwarden rejects NAM appeal

The Court in Leeuwarden dismissed NAM’s appeal in the WAG case on Tuesday, January 23, about compensating for houses and buildings in Groningen that have fallen in value as a result of earthquakes.

NAM appealed against the judgment of the District Court in Assen on 2 September 2015. “The question raised in this appeal was not whether value reduction as a result of earthquakes should be compensated by us, but at what time and how this should be done “, explained NAM director Thijs Jurgens of the Groningen Earthquake team. “The court rules otherwise and we are going to take that seriously.”

Value control

With the Value Scheme, NAM compensates for the decline in value of the sale of a house since January 2013. From the start of the scheme, 94% of the proposals for compensation for the decrease in value of NAM have been accepted. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Dutch gas regulator to publish Groningen recommendation on Feb. 1

AMSTERDAM, Jan 24 (Reuters) – The Dutch gas regulator will publish its recommendation for production at the Groningen gas field on Feb. 1, a spokeswoman said on Wednesday.

Regulator SodM was asked to provide advice on a new production cut after the northern Dutch region was hit by the strongest earthquake in years earlier this month.

Both the regulator and gas production company NAM, a joint venture between Royal Dutch Shell and Exxon Mobil , have said that production needs to be cut substantially from the current level of 21.6 billion cubic metres (bcm) per year to limit seismic risks in the region. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Gas field earthquakes put Netherlands’ biggest firms on extraction notice

Extraction from the Groningen field, one of Europe’s richest sources of gas, is operated in a joint venture between Royal Dutch Shell and ExxonMobil, but has been capped in recent years by ministers due to seismic activity in the area. Following a quake two weeks ago which registered at 3.4 on the Richter scale – the second-strongest recorded above the gas fields and the biggest in five years – the country’s minister for economic affairs, Eric Wiebes, put major corporations on notice this week. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Dutch Minister says Groningen discussions with Shell/Exxon (NAM) may become ‘messy and bloody’

The minister did not want to reveal anything about the discussions about the claims handling with the owners of NAM, Shell and ExxonMobil. Wiebes fears that this will damage the State’s negotiating position. Those conversations may become ‘messy and bloody’, Wiebes said.

Printed below is an English translation of an article published today by the Dutch equivalent of the Financial Times, Financieele Dagblad

Minister Wiebes is not chased with claims protocol for Groningen

Louis Hoeks • Economics & Politics

Minister Eric Wiebes of Economic Affairs and Climate (VVD) is not keen on drafting a protocol for the claims handling of gas extraction in Groningen. That turned out to be Tuesday during a noisy and sometimes emotional debate with the House of Representatives.

Wiebes: ‘It should be as soon as possible and not as fast as impossible.’ However, he said he would have to come up with a plan in the coming quarter to reduce gas use in industry, in homes and for export. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Why the Dutch are Missing Out on the Global Natural Gas Glut

The world may never have produced more natural gas, but that’s little comfort for the Dutch government as it seeks to replace flows from Europe’s biggest field.

Lawmakers in the Netherlands on Tuesday will discuss options to supply their pipeline network, which was built around the relatively poor-quality gas from the Groningen deposit. More than a half century of production there triggered earthquakes, forcing the scaling back of output.

Progressive Decline

Annual gas output from the Groningen gas field under new rules read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

DUTCH PRIME MINISTER RUTTE BLAMES HIMSELF FOR DELAY IN A DAMAGE PROTOCOL FOR GRONINGEN GAS SEEPAGE VICTIMS  

Printed below is an English translation of an article published today by the Dutch equivalent of the Financial Times, Financieele Dagblad

DUTCH PRIME MINISTER RUTTE BLAMES HIMSELF FOR DELAY IN A DAMAGE PROTOCOL FOR GRONINGEN GAS SEEPAGE VICTIMS

From our editor • Economics & Politics

Dutch Prime Minister Rutte: ‘Time taken to form new cabinet is the cause of delay in new damage protocol for Groningen gas field’

The long time taken for cabinet formation has ensured that there is still no damage protocol for the victims of the gas seepage in Groningen Prime Minister Rutte said in the Buitenhof program on Sunday.

Because Rutte is ultimately responsible as prime minister, he also blames himself for the delay. “As prime minister, I am the first person to speak.” read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

What happens to Europe’s biggest gas field?

Bloomberg/London: January 13 2018 10:31 PM

Flows from the Groningen field in the Netherlands has fallen gradually in a bid to stop earthquakes triggered by extracting the fuel.

While the current annual production cap of 21.6bn cubic meters remains, the Council of State, the nation’s highest administrative court, in November gave the government a year to come up with a new plan.

More quakes could spur more drastic measures. On January 8, Groningen was hit by the region’s biggest tremor in more than five years. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

NAM €265 BILLION REVENUE FROM GRONINGEN GAS: THEN THE EARTHQUAKES CAME

Once good for 20% of the government revenue and extra influence in Europe, now a national blight: the natural gas extraction in Groningen. The crane is getting closer and closer. But when the earth stops shaking, nobody knows.

€ 265 billion: Total revenue from Dutch natural gas revenues in the period 1960-2013 amounted to approximately € 265 billion.

The Groningen field was a jewel in the Shell portfolio.

Printed below is an English translation of an article published today by the Dutch equivalent of the Financial Times, Financieele Dagblad under the headline: 

If you produce gas, you do not actually have to do anything

By Carel Grol

Harry Klevering (68) can still remember the arrival of the gas. About eight years old, he was the youngest of a family of thirteen from the Groningen village of Spijk, when the gas bubble was discovered in Slochteren in the late 1950s. Soon after, the Dutch Petroleum Company (NAM) visited his house, the company that still lives a life later on gas. To install free gas pipes. Tightly over the plinth, even though the tubes were plastic.

This Tuesday afternoon Klevering is in the office of Centrum Veilig Wonen in Loppersum. He just reported damage. He has lived in the same house for 24 years. Red bricks with a pointed roof, on the water. It is the second time that he has suffered damage. On Tuesday there were two explosions and then it felt like the house was falling. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Earthquake Shaker: Groningen Gas Field is on the highest alert level, code red

Minister Eric Wiebes of Economic Affairs and Climate has arrived in the village of Zeerijp in Groningen, where an earthquake occurred on Monday.

On Thursday, the State Supervision of Mines (SSM) stated that Groningen is in the highest alert level, code red, and that therefore a ‘considerable production reduction’ is necessary.

Printed below is an English translation of an article published today by the Dutch equivalent of the Financial Times, Financieele Dagblad.

Accelerated reduction of Groningen gas production is expensive and time-consuming

Gert van der Have Louis Hoeks Economy & Politics

The politicians want to close the gas tap further, but that is not possible. ‘I’m going to do everything I can to reduce the costs’, Minister Eric Wiebes of Economic Affairs and Climate promised this week during his visit to the province of Groningen. He has to make that happen now.

According to the coalition agreement, Groningen gas production in 2021 must be reduced to 20.1 billion cubic meters. Wiebes wants to continue. The Dutch Petroleum Company (NAM) also indicated this week, without mentioning volumes, that the gas production will be substantially reduced again. On Thursday, the State Supervision of Mines (SSM) stated that Groningen is in the highest alert level, code red, and that therefore a ‘considerable production reduction’ is necessary. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

Shell/Exxon (NAM) has delivered an urgent report to the Dutch State Supervision of Mines about the Zeerijp earthquake

TRANSLATED INFORMATION PUBLISHED 11 JAN 2018 IN DUTCH BY NAM

The Zeerijp quake

As a result of the recent earthquake at Zeerijp, NAM delivered a report to the State Supervision of Mines Supervisor (SSM) within 48 hours.
 
The report proposes measures for the Minister of Economic Affairs and Climate to ultimately decide on in the context of safety, safety perception and other assessment frameworks. In addition to primary safety, the safety experience of the citizens of Groningen is central to this.

Gerald Schotman emphasized in various interviews to national and regional media that NAM is not concerned about the level of gas production. That is a decision that politics must take. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan

NAM proposes substantial reduction in gas production

…there was another earthquake last Monday, of 3.4 on the Richter scale. That was the second heaviest earthquake in the area above the Groningen field. So the big question is: when is it safe?

Printed below is an English translation of an article published today by the Dutch equivalent of the Financial Times, Financieele Dagblad.

Heavy earthquake Groningen: Earthquake had a force of 3.4 on the Richter scale

Bert van Dijk Carel Grol • Entrepreneurship

The Dutch Petroleum Company (NAM) has advised Minister Eric Wiebes of Economic Affairs and Climate to substantially reduce gas production in the Groningen field. This is the first time that NAM has so explicitly managed a production reduction.

NAM has already significantly reduced production in the past five years. In 2013, production from the Groningen field was still 54 billion cubic meters. This is 21.6 billion cubic meters this year. Gas is now also won more evenly. Yet there was another earthquake last Monday, of 3.4 on the Richter scale. That was the second heaviest earthquake in the area above the Groningen field. read more

royaldutchshellplc.com and its sister websites royaldutchshellgroup.com, shellnews.net and cybergriping.com are all owned by John Donovan
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