|
|
|
|
|
|
|
|
|
Compensation
|
ATCO Electric believes in fairly compensating landowners who have transmission facilities on their property. There are two components to the compensation we pay:
1. Right-of-way/impact of construction payment
2. Annual payments for structures located on property
In 2010, ATCO Electric revised the transmission compensation structure to be consistent with the trend observed in the industry and related industries. Compensation applicable to the Eastern Alberta DC Transmission Line is outlined below.
Right-of-Way/Impact of Construction Payment
There are a number of components that make up this aspect of compensation.
Easement
ATCO Electric will pay the landowner fair market value of the land occupied by the right-of-way. This is payment for an easement only; the landowner retains title to the land within the right-of-way.
Entry Fee Payment
Under section 19 of the Surface Rights Act, an entry fee is paid to landowners for each agreement entered into on each titled unit.The entry fee is the lesser of:
1. $5,000 or
2. $500 per acre of right-of-way, not to be less than $250, where the land granted to the operator is less than
one acre.
General Disturbance Payment
Compensation for inconvenience related to consultation and construction is paid per the table below:
|
Per Parcel |
| Land Use |
Amount |
| Uncultivated |
$1,250 |
| Headland |
$1,500 |
| Midfield |
$1,750 |
An additional amount of $1,000 is paid for each parcel that is occupied by one or more residences.
Pre-paid Damages
Before construction begins, ATCO Electric pays landowners a pre-determined amount as compensation for any and all damages that may occur. The damages include ATCO Electric’s estimate of the value of loss of use of the right-of-way during construction and reduced production during a two year recovery period.
The full amount is paid in the first year as per the table below:
|
Pre-paid Damages |
Cultivated |
Pasture |
| Loss of use value |
$335/acre |
$150/acre |
| Year One |
100% |
100% |
| Year Two |
100% |
100% |
| Year Three |
50% |
50% |
| Year Four |
25% |
25% |
| Total for Four Year Period |
$925/acre |
$425/acre |
Trimming and Removal of Vegetation Details
In addition to the primary right-of-way, ATCO Electric may need a secondary right‑of‑way to trim or remove trees that could fall on the line. The compensation is 50% of the fair market value of the land needed for the vegetation control area.
Annual Structure Payment
Annual structure payments are as follows:
|
Type of Structure |
Location of Structure |
Amount per Structure |
|
Steel Towers |
Cultivated Land |
$1,178 |
|
Uncultivated Land |
$471 |
Payments for structures straddling a property boundary are divided between the properties. The annual payment rates are reviewed every five years to evaluate any changes to the factors on which they are based.
Early Access and Resolution Payment
In order to undertake environmental and geotechnical assessments and collect other data needed for design and construction planning, ATCO Electric will now pay for early access to the land. The type of activity required will have minimal impact on the land.
Early resolution of the right-of-way agreement will reduce regulatory costs, risk of construction costs, and schedule over-runs.
Effective September 1, 2010, ATCO Electric will pay $10,000 per parcel for early access to a landowner’s property and early agreement to its right-of-way terms.
Half is paid upon execution of the Early Access and Resolution Agreement (EARA) and the Right-of-Way Agreement. The remainder is paid prior to construction, provided the Alberta Utilities Commission (AUC) approves the right-of-way as applied for.
To be eligible for this payment, the landowner must execute these agreements within a specified time period of receiving them from ATCO Electric. ATCO Electric may agree to extend this period in certain circumstances.
Right-of-Way Acquisition Process
Once the feedback from the wider public consultation process has been reviewed and a preferred route chosen, ATCO Electric will begin the consultation and land negotiation process with landowners along the preferred route as outlined below:
1. Market Value Research: We will conduct market value research to determine the fair market value of the
land along the preferred route.
2. Easement Discussions: Our land agents will arrange meetings with landowners along the preferred route to
discuss any concerns or questions about the choice of the preferred route and the construction process. At
the same time or not long after, our representatives will discuss the terms of an offer for early access and a
right-of-way agreement which includes the specific terms for compensation.
3. If an agreement is reached: The landowner will sign the agreements which will then be registered on the
title. The right-of-way agreement will come into effect only if the right-of-way is approved by the AUC.
4. If an agreement is not reached: Following AUC approval of its application, ATCO Electric will check once
more with the landowner to see if an agreement can be reached. If not, ATCO Electric will apply to the
Surface Rights Board (SRB) for a Right of Entry Order. The SRB typically decides first on access, and then
schedules a proceeding to resolve the disagreement on compensation.
5. Construction: Communication with landowners will continue throughout the construction process to ensure
ATCO Electric meets reasonable expectations and standards.
Compensation Timeline
The following table outlines when you can expect to receive compensation:
|
Compensation Payments |
Payment Received |
|
Early Access and Resolution Payment |
50% upon signing and 50% prior to construction |
|
Easement payments including: Entry Fee, General Disturbance, Pre-paid Damages |
Prior to construction, after AUC approval of the project is received |
|
Annual Structure Payments |
Begins when line is in service |
Compensation Example
A right-of-way 60 metres wide contains about 12 acres, over a distance of one-half mile or 800 metres. For this example, a land value of $1,000/acre is used. Where the right-of-way straddles two cultivated quarter sections, the owner of each quarter section would receive:
|
Easement |
6 acres x $1,000 |
= $6,000 |
|
Entry Fee |
6 acres x $500 |
= $3,000 |
|
General Disturbance |
6 acres x $500 |
= $1,500 |
|
Damages |
6 acres x $925 |
= $5,550 |
|
Early Access |
|
= $10,000
-------------------- |
|
Total One-Time Payment |
|
= $26,050 |
|
Annual Structure Payment |
2 x $589* |
= $1,178/yr |
*Annual structure payment is halved when structure straddles two property boundaries.
Grazing Lease on Crown Land
Grazing lease holders on Crown land receive all the compensation components described above except for the entry fee. The legislation that stipulates an entry fee applies to landowners only.
|
|
|
|
|
|
|
|
|
|
|
|