On August 26, 2015, the
Dutch District Court of Assen ruled that an oil and gas company operating in
the Groningen area must give compensation to several homeowners in said area
for the decline in their real estate values. The District Court opined that it
is likely that gas extraction in the Groningen area is linked to recent
earthquakes.
According to media
reports, so as to be entitled to compensation, the District
Court stated that “homeowners need not show that their property had suffered
any physical damage, only that its value had been affected by its location in
the quake area. It also found that homeowners could request compensation
immediately, rather than waiting for a sale.”
The lawsuit was filed
by the Dutch Foundation Waardevermindering door Aardbevingen Groningen (the
Foundation Depreciation through Earthquakes Groningen) against the Dutch Natural
Gas Company Nederlandse Aardolie Maatschappij (NAM). The Foundation represents
900 homeowners and 12 housing cooperatives.
In June 2015, the Dutch
Government released a technical
addendum providing an analysis as to subsidence, induced
earthquakes, and seismic hazard in the Groningen Field. The addendum stated
that the number of seismic events appears to have increased with cumulative
production.
Written by Chloe Marie - Research Fellow
09/02/2015
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