Compensation payments

Hands stretched out in a gesture of agreement by GAZ-SYSTEM
The compensation will be paid to property owners, perpetual usufructuaries or persons who have a limited right in rem to the property through which the gas pipeline will run, and those within the assembly strip of the gas pipeline.

The legal basis for awarding compensationin in the case of investments carried out under the special gas act, is regulated by i.e. the Act of 24 April 2009 on Investments in the Liquefied Natural Gas Regasification Terminal in Świnoujście (for consolidated text see Dz.U. 2021.1836).

Steps in the determining and payment of compensation

  1. The investor’s representative, before undertaking the works, draws a baseline report. This report includes information on the crops, trees, shrubs and other features existing on a given plot.
  2. When the works on a given plot of land are completed, a final report will be drawn up to assess the condition of the property after all the works have been carried out.
  3. Following the completion of the construction stage, GAZ-SYSTEM forwards the reports describing the properties to the competent Voivode together with a request to initiate the procedure concerning compensation payments. The amount of compensation will be determined on the basis of assessments and other documents collected as part of the procedure. The assessments are carried out by independent valuers appointed by the Voivode.
  4. At the end of the procedure, the Voivode will issue a decision assessing the amount of compensation. GAZ-SYSTEM will be obliged to pay compensation to the landowner or perpetual usufructuary of the property within 14 days of the date on which the decision in question becomes final.

Amount of compensation

The amount of compensation will be determined upon the completion of the project, on the basis of appraisal reports prepared by property valuers appointed by the Voivode upon completion of the project. The compensation will include:
  • compensation for material damage, i.e., inter alia:
    • lost crops, inability to grow crops within the strip occupied by the works contractor,
    • reduction in yields in the years following the completion of the project,
    • reimbursement of part of the real estate tax and reimbursement of subsidies and agri-environmental payments,
    • in the case of lease (land owned by ANR, commune or State) – reimbursement of lease payments for the period during which the property is occupied.
  • compensation for legal damage, i.e., inter alia:
    • value of the restriction in the use of the property in the control zone,
    • reduction in the value of the property resulting from the construction of the gas pipeline,
    • compensation for restrictions resulting from the marking of the gas pipeline.

Additional information

The Voivode will determine the compensation for damage caused within the assembly strip. The contractor is obliged to compensate for any damage to the property outside the assembly strip of the gas pipeline.

In rare cases when aboveground transmission facilities are to be erected, expropriation with compensation will take place on the basis of a decision on the determination of location, and part of the real estate on which the facility will be built will become, by virtue of law, the property of the State Treasury.