Dutch Government offers $1.6 billion in compensation for houses ruined by fracking in Groningen province

Dutch Government to Pay $1.6 Billion in Gas Extraction Damages

By Corina Ruhe and Fred Pals
January 17, 2014 11:11 AM EST
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The Netherlands will spend 1.2 billion euros ($1.6 billion) to compensate for damaged houses and buildings after temblors linked to extraction of natural gas in the Groningen province led to a public backlash.
“There is no doubt anymore that those tremors were caused by gas extraction,” Henk Kamp, minister of Economic Affairs, said today in Loppersum, a village in the Groningen province 127 miles north of Amsterdam. The government will cut gas production by 21 percent to 42.5 billion cubic meters in 2014 and 2015, lowering gas proceeds by 700 million euros this year, 600 million in 2015 and 1 billion in 2016, he said.
The Dutch budget deficit will hit 3.3 percent of gross domestic product in 2014, The Hague-based government’s planning agency CPB said last month. The Netherlands, the European Union’s biggest gas producer, has been in breach of the bloc’s limit of 3 percent of GDP since the beginning of the crisis in 2008. The government and opposition parties reached an accord in October for a 6 billion-euro austerity package for 2014 on top of a four-year, 16 billion-euro cut approved in 2012.
“This spring we will have a complete picture on economic developments, positive developments, adverse developments and then we can make the calculation again,” Finance Minister Jeroen Dijsselbloem said today in The Hague. The consequence of less gas output could lead to additional austerity measures, Dijsselbloem said.
The strength of earthquakes triggered by gas production in the Groningen region where the Slochteren field is located may rise to a magnitude of 5 on the Richter scale, according to a study released in January last year by the State Supervision of Mining at the Ministry of Economic Affairs. An Aug. 16 temblor last year, measuring 3.4, damaged the property of about 2,500 people. The biggest earthquake ever in the Netherlands hit the southern province of Limburg in 1992, reaching 5.8 on the scale.

Earthquake Damage

“This is a big political issue in the Netherlands, so the government has to be seen to be doing something,” Trevor Sikorski, the head of natural gas, coal and carbon at Energy Aspects Ltd., a consulting company in London, said today by telephone. “On the other hand, the Dutch government has budget issues and Groningen gas is a big revenue provider for the Dutch government. It’s a lot of money.”
The Nederlandse Aardolie Maatschappij BV, or NAM, the Dutch gas-production venture of Royal Dutch Shell Plc (RDSA) and ExxonMobil Corp., have said they will compensate all damage resulting from the quakes, caused by a drop in gas pressure leading to subsidence in the ground above. The company has set aside 100 million euros for claims and has paid out about 50 million euros so far. Max van den Berg, the head of the Groningen province council, has said he wants one billion euros as compensation for owners of damaged houses.

Gas Proceeds

The Slochteren field has generated about two-thirds of the more than 200 billion euros in gas proceeds for the Netherlands since its discovery in 1959, according to NAM. Last year, gas production from the Groningen field rose to a record of about 53.8 billion cubic meters, NAM said yesterday.
NAM is allowed to produce 425 billion cubic meters in the 10 years from 2011 through 2020, Karin Donk, a spokeswoman for the State Supervision of Mining, said by phone yesterday. This is on top of 20 billion cubic meters that was unused in the former period, she said.
“A cut in the 2012-2020 production cap of more than 5 percent would move the markets as well as impacting the Dutch trade balance,” Sikorski said in a report before the announcement.
Dutch gas for 2015 has gained 1 percent this week to 26.25 euros/megawatt-hour, it’s first gain in three weeks, according to broker data compiled by Bloomberg.
To contact the reporters on this story: Corina Ruhe in Amsterdam at cruhe@bloomberg.net; Fred Pals in Amsterdam at fpals@bloomberg.net
To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net
The Tap Blog is a collective of like-minded researchers and writers who’ve joined forces to distribute information and voice opinions avoided by the world’s media.
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4 Responses to “Dutch Government offers $1.6 billion in compensation for houses ruined by fracking in Groningen province”

  1. Anonymous says:

    2014 LONDON RIOTS
    relations are deteriorating rapidly between the russian immigrants here in the UK and the black communities one black gang said to be behind the 2010 london riots claim this year the russian and polish people and shops will be targetted
    see enfield nigs statement below-

  2. Anonymous says:

    In 1983 Saddham Husseins astrologer announced that evil would soon engulf the world and babies would cry out and die of hunger, he said israel would bomb america in a double bombing, america would become palestine, and a black hearted man would lead the USA to disaster.
    Looking back this was pretty good, the USA put sanctons on medical supplies which killed thousands of Iraqi babies,
    israel did indeed bomb america and the double bombing was the twin towers, israel has robbed raped the USA just like palestine and the black hearted man must be obama who is helping israel to destroy the USA.
    Mossad distributed thousands of pornographic magazines throughut iraq with pictures of saddhams family members faces put over the naked participants in perversion, the iraqis did not fall for this crap, neither did the germans when the jews did it there, but in the Uk and USA porn has become big business for the jews, we should do what saddaham and hitler did and ban all of it

  3. Anonymous says:

    the enfield nigs are a damn menace
    they really are and if they carry out their threat to target us they will really regret it
    Dimitri kalenkov

  4. Anonymous says:

    You are talking bull crap about Tot N…..stirring ya spoon ..Bad Boys watcha. gonna do when comes to you ? umm think you are a Babylon or Roman..

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