The conflict between the Nederlandse Aardolie Maatschappij (NAM) and the government over the payment of the reinforcement operation in Groningen is increasing. The NAM does not want to pay more than 60 percent of the costs, because, according to the gas extractor, the state does not comply with the agreements. The outgoing cabinet and NAM are preparing for a legal battle.
That appears from a letter that outgoing ministers Stef Blok (Economic Affairs and Climate, VVD) and Kajsa Ollongren (Internal Affairs and Kingdom Relations, D66) sent to the House of Representatives on Tuesday and the written response of the NAM that followed.
In the spring it became clear that NAM did not want to pay a bill for the reinforcement operation. The company finds the costs insufficiently transparent. It now appears that the NAM has paid only 60 percent of the bill for the last quarter of last year and the first quarter of this year.
According to the outgoing cabinet, this has consequences. “The possibility that this will lead to legal proceedings is real,” the ministers said. The NAM expresses the wish to enter into discussions with the ministries, but does not rule out arbitration.
severe tremors
In Groningen, due to the earthquakes, 26,000 houses may have to be reinforced, so that people can at least safely leave their home in the event of a severe earthquake. The NAM disputes this high number; because the gas tap is closed, the risk of severe earthquakes – as a result of gas extraction – would decrease.
In an interview with NRC NAM director Johan Atema said this spring that “according to the latest calculations, fewer than 50 houses need to be reinforced for safety reasons” in Groningen. He later said he regretted the unrest his statement had caused, but did not take back his words.
In the same interview, Atema emphasized that it would not shy away from a legal battle over the account. “I would like objective arbitration on this,” he said. According to him, the specifications of the bill were too unclear: “Even in the supermarket you get a receipt with the groceries with what you have bought, the number of units, the VAT and the total amount.”
The NAM wants the costs it is supposed to pay specified at address level. Economic Affairs believes that it does not have to provide that specification, according to a spokesperson for the ministry.
Hearing
The latest response from NAM shows that the company is also putting pressure on the number of houses to be strengthened in Groningen. It sees the decline in gas extraction “not reflected in the magnitude of the reinforcement operation”. The NAM believes that it is only responsible for “costs necessary for safety”.
NAM, a joint venture of Shell and ExxonMobil, is not directly involved in the settlement of damage in Groningen and the reinforcement operation. However, the state does (largely) charge the costs of this to the NAM. According to outgoing minister Blok, “residents in Groningen are not bothered by the discussions” with the NAM.
NAM director Atema, together with Shell and ExxonMobil, will have to answer for his earlier statements in the House of Representatives on Thursday during a hearing in the House of Representatives. NRC about the reinforcement operation.
NAM boss Johan Atema: ‘We cannot pay everything the government promises’
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