Agreement with NAM on security for subsidence damage

Certainty about reimbursement

This provides certainty about compensation for subsidence damage caused by gas extraction. The security provision means that if NAM has to pay compensation on the basis of the 1983 Groningen-NAM agreement, the parties have a guarantee that NAM will be able to meet this obligation. This concerns damage to hydraulic infrastructure such as dykes, bridges, and pumping stations.

Termination of gas extraction

The 1983 agreement specifies a number of occasions on which the parties may demand financial security from NAM. The termination of gas extraction from the Groningen field is one such occasion. Now that it appears that gas extraction from the Groningen field is to be terminated, the parties have decided to demand financial security from NAM. The financial security is laid down in an amicable settlement and a bank guarantee. The amount of the bank guarantee will decrease with each compensation payment made in the future after assessment by the subsidence committee.

Calculation of land subsidence commission

The Land Subsidence Committee is currently investigating the future costs of claims for land subsidence damage, on behalf of the province, both water boards, GSP, and NAM. Once this investigation has been completed, 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. This has been agreed by the parties in the amicable settlement. The final amount will never exceed €574.3 million: this 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 province, both water boards, and GSP to compensate for subsidence damage, the province, together with the municipalities and water boards, remains committed to compensating for all costs related to damage, reinforcement, and health caused by earthquakes. They demand that the national government compensate for all costs related to damage, reinforcement, and health, whatever the cost. The province, municipalities, and water boards are supported in this by the report of the parliamentary inquiry 'Groningers boven gas' (Groningers above gas).