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Impact of infrastructure projects on private land

Impact of infrastructure projects on private land

If the current population of Scotland, at around 5.3 million people, continues to grow at its present rate, in 25 years’ time an extra 500,000 people will inhabit our country.

New and improved public services and utility infrastructure will inevitably be required.

In some parts of the country major infrastructure projects are already commencing at pace.

In recent years we have witnessed the commencement of the Beauly Denny transmission line construction works, the reinstatement of the Waverley Railway and the new Forth Road Crossing, and works on the A9 dualling are imminent.

Almost all infrastructure or utility projects will impact on privately owned land, if not permanently, then almost certainly in the construction phase.

Even if new projects ground to a halt completely, farmers and landowners in Scotland would still feel some impact from maintenance and repair works associated with 1.5 million km of telephone lines and 200,000km of water and sewage pipes and electricity lines criss-crossing the country, five gas transmission pipelines stretching south from St Fergus in Aberdeenshire, and more than 55,000km of public roads and 2,800km of railway lines.

The payment to the landowner for allowing infrastructure to pass through their land, or for access during construction or for maintenance, is highly dependent on the project and the utility company undertaking the work.

As a quick guide, Scottish Water can take entry over land for pipeline construction work after serving the correct notice and will only pay compensation for loss or damage caused as a result of the works.

Electricity and telephone cables are generally all subject to a wayleave agreement with an annual payment based on the number of poles and metres of cabling.

Gas and oil pipelines are subject to a servitude where a one-off payment is made based on the value of the land.

In most circumstances, crop loss compensation is payable in addition to the wayleave and servitude payments to take account of losses arising from construction work.

Farmers and landowners should note that wayleave and servitude payments only arise when work is undertaken by an organisation with statutory powers, eg Scottish Hydro Electric, National Grid or BT Openreach.

Private companies and developers who do not have statutory powers cannot take access over ground without coming to an agreed settlement with the landowner.

Windfarm developers, housing developers and private companies are increasingly approaching landowners for cable, pipeline or access road requirements.

As these organisations are unlikely to have statutory or compulsory powers, they do not have an automatic right of entry and the landowner is in a strong position to negotiate an appropriate financial settlement in return for granting the required rights.

However, with all utility and infrastructure works, there are not only monetary/compensation aspects to consider.

What impact will the proposed route have on the holding?

How will the impacted land be accessed?

How will the sites be reinstated?

What will the long-term impact on the holding be?

When considering any aspect of a utility or infrastructure project, farmers and landowners should always seek advice from a land agent.

Most often the fees for such work are met by the utility or infrastructure company so, in effect, the services to the farmer are free of charge and can also help to ensure the best compensatory package and financial outcome.

* Rhona Booth is a chartered surveyor and heads the Forfar office of Davidson & Robertson Rural, specialising in all aspects of farm and land management.