VPI Immingham OCGT

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VPI Immingham OCGT

Received 25 June 2019
From Veale Wasbrough Vizards LLP on behalf of CLH Pipeline System (CLH-PS) Limited (CLH Pipeline System (CLH-PS) Limited)

Representation

Dear Sirs CLH Pipeline System (CLH-PS) Limited (CLH) and its agents, Fisher German, have been engaging with VPI Immingham B Limited (VPI) in relation to their proposals for the construction and operation of a new Open Cycle Gas Turbine power station at a site at and adjacent to the existing VPI Immingham Power Station, Rosper Road, Immingham, since 31 October 2018. The Project potentially impacts and interferes with CLH's existing pipeline which runs in close proximity to the site. This pipeline is one of a network of fuel distribution pipelines that form a critical part of the UK’s fuel supply network. Please note that CLH operates this pipeline as a private company and not pursuant to any statutory undertaker powers. Construction works near or over the CLH pipeline can damage the pipeline or affect its future operation for the following reasons: 1. Restriction of future access by surcharging the pipeline easement, thus rendering the pipeline unsafe should a fault or feature be identified by future in line inspections; 2. Third party damage during construction including strikes and pipeline failure due to repeated heavy plant crossing; and 3. Stress to the pipeline by overburdening without correct support. Subject to the comments below, CLH has concerns over any impact to the operation of its pre-existing pipeline. CLH therefore objects to any interference with, extinguishment or suspension of the land rights relating to the pipeline or any Project activity that risks the operation of the pipeline. Barring infrequent maintenance, the pipeline operates on a continual 24/7 basis and interruption to its operation will have a significant impact CLH's business of fuel supply which includes supplying the Ministry of Defence - for which CLH must guarantee continuous supply in some circumstances - and will have serious financial consequences for CLH. There is a risk to the pipeline if VPI carries out works within 15 metres of the pipeline, especially if CLH is not given the opportunity to supervise the works. CLH needs to carry out protective works to minimise this risk. All works to CLH's apparatus, whether diversion or protective works, must be carried out by CLH. VPI and CLH will therefore need to enter a Protective Provisions Agreement to regulate how VPI will work in proximity to the pipeline asset. CLH fully expects these works to be at VPI’s cost and in addition CLH expects, in the usual way, that VPI will cover its advisor's costs in preparing and negotiating the PPA. CLH's lawyers, VWV, first approached Pinsent Masons (PM), VPI's lawyers, for a costs undertaking on 3 January 2019. VWV finally received an undertaking for the PPA on 15 May 2019. VWV is in the final stages of drafting the PPA and will send it to PM as soon as possible. Due to VWV not receiving the undertaking until this point, CLH has been unable to progress at this stage the necessary documentation or state it is close to an agreed position with VPI. CLH is confident that the parties, acting responsibly, will be able to progress matters but at this stage CLH must make a relevant representation regarding the risk to its pipeline asset and CLH objects to any interference or risk by the Project to this asset and its related land rights. CLH looks forward to updating the Planning Inspectorate upon the state of negotiations and, if necessary, detailing continued concerns in subsequent written representations to the Planning Inspectorate.