Manitoba Hydro, which plans to build a high voltage transmission line across farmland in the province, has sweetened its compensation offer to rural landowners.
The latest compensation proposal for the Bipole III right of way is a much better deal for farmers, said Doug Chorney, Keystone Agricultural Producers vice-president, who met with representatives of the crown corporation in early December.
“I think we’re moving in the right direction,” said Chorney.
The proposed compensation package has four components:
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• a 75 percent payment, based on market value, for a 66 foot wide easement on the landowner’s property;
• a lump sum payment of $5,000 to $23,000 per tower, depending on the value of the agricultural land, to compensate landowners for the hassle of having to navigate equipment around the tower in future years;
• ancillary damage compensation of zero to 60 percent of the market value of the 66 foot wide easement for specific impacts on agricultural or residential land;
• compensation for loss of crop production during construction and maintenance of the towers.
The compensation for ancillary damage is new and could potentially result in a payment greater than the value of the land under the towers, Chorney said.
“If you were to get the maximum, you would be at 135 percent of the value of the land in a payment,” he said.
“So they’re actually paying you more than its worth. And you still own the land.”
Earlier this year, Manitoba Hydro announced its preferred route for Bipole III. It will begin at hydroelectric dams in northern Manitoba, run down the west side of the province, cut across prime farmland near Carman and terminate southeast of Winnipeg.
The route remains controversial and many producers have said publicly they will not sign a deal with Hydro.
During the fall, Hydro sent letters to 500 to 600 private landowners with detailed information about how Bipole III will cut across their land.
“What we’re showing them is a preliminary preferred route,” said Patrick McGarry, Hydro’s senior environmental assessment officer.
“We’re saying this is where we want the route to go and it’s subject to environmental approval…. It (the route) is only final when we get environmental approval for it.”
Hydro won’t negotiate with landowners until it receives the environmental go-ahead, which should be finalized by the summer of 2012, McGarry said.
“At that point we can start full negotiations with individual landowners.”
While direct negotiations could be 20 months away, McGarry said Hydro is honing its compensation package now. Otherwise, dealing with 500 landowners could become protracted, tedious and difficult.
“We want to make this fair, if not more than fair, so we can facilitate the project when we get approval. It would take an awful long time to battle with 500 plus landowners if your compensation package isn’t adequate.”
In addition to a better compensation deal, Chorney said Hydro has listened to farmer’s concerns. Bipole III will not cut across agricultural land diagonally, which will lessen its impact on cropland operations.
As well, the utility hired a producer to drive a tractor under high voltage transmission lines in the province to determine the impact on GPS equipment.
Despite the progress, Chorney said landowners remain concerned about the phrase “market value.” Does it mean Hydro will compensate property owners based on the assessed value of the land or based on the market value of land?
“It’s one of those details that could really bog you down. If you have an unrealistic assessment and the producer feels his land is worth more than that, they’re going to have a hard time agreeing.”
