Agreement with NAM on security for subsidence damage

Certainty regarding reimbursement

This provides certainty regarding compensation for damage caused by ground subsidence resulting from gas extraction. The security arrangement ensures that, should NAM be required to pay compensation under the 1983 Groningen-NAM Agreement, the parties have the assurance that NAM will be able to meet this obligation. This pertains to damage to hydraulic infrastructure such as dykes, bridges, and pumping stations.

End of gas production

The 1983 agreement specifies a number of circumstances under which the parties may require financial security from NAM. The cessation of gas production from the Groningen field is one such circumstance. Now that it appears that gas production from the Groningen field is set to be discontinued, the parties have decided to require financial security from NAM. The financial security is established through a settlement agreement and a bank guarantee. The amount of the bank guarantee will decrease with each compensation payment made in the future following an assessment by the subsidence committee.

Calculation of the subsidence commission

The subsidence Committee subsidence currently subsidence the future costs of claims for subsidence damage, on behalf of the province, both water boards, GSP, and NAM. Once this investigation is finalised, the committee will determine the final amount for which NAM must provide security. NAM will adjust the amount for which security must be provided accordingly. The parties agreed to this in the settlement agreement. The final amount will never exceed 574.3 million euros: that is, the amount remaining from the total amount made available by NAM under the agreement.

Damage caused by earthquakes

In addition to the efforts of the provincial executive, both water authorities, and GSP to compensate for subsidence damage, the provincial executive, together with local councils and water authorities, remains committed to compensating all costs related to damage, reinforcement, and health caused by earthquakes. They demand that the national government compensates all costs related to damage, reinforcement, and health, whatever the cost. The provincial executive, local councils, and water authorites are supported in this by the report of the parliamentary inquiry 'Groningers boven gas' (Groningers above gas).