Nord-Troms District Court, Tromsø

November 2018

Skype Interview

Translation of first section (1-15 of 75) of case 13.11.2018 in Nord Troms District Court, Tromsø, brought by Reindeer Grazing District representatives and other landowners, against Statnett, the national power network. The original document in Norwegian, was sent to me by Nicholas Tyler as an example of the type of response to the case, which is a standard response from the government.

Translation Case no .: 13.11.2018 i Nord-Troms tingrett, Tromsø

Judge: 15-116972SKJ-NHER

Members: Tingrettsdommer, Knut Rye-Holmboe

Case concerns: Knut Flatebø Johannes Grønvoll Arve Kleiven Harald Drøpping Sletten

Case concerns: Expropriation to Determine Compensation

Representing Statnett: Advokat Jarle Wallevik Holstrøm Advokat Pål-Martin Abell Advokat Johan Fredrik Remmen towards

Reindeer Grazing District 27 - Advokat Geir Haugen Könkämä sameby - Advokat John Jonassen Reindeer Grazing District 24 Helligskogen - Advokat Anja Jonassen Reindeer Grazing District 37 Skárfvággi - Advokat Jon-Andreas Lange Reindeer Grazing District 36 Cohkolat ja Biertavárri - Advokat John Jonassen Reindeer Grazing District 42 Beahcegealli - Advokat Jon-Andreas Lange Reindeer Grazing District 19/32 T Lakselvdal/Lyngsdal - Advokat Jon-Andreas Lange Reindeer Grazing District 39 Árdni/Gávvir- - Advokat John Jonassen Inger Helen Hilmarsen - Advokat Kristoffer Dons Brøndbo Alexander Midtbø m.fl. - Advokat Kristoffer Dons Brøndbo Geir-Tore Larsen - Advokatfullmektig Viktoria Hauan

Tore Joar Døhl - Advokat Kristoffer Dons Brøndbo Torild Helene Døhl - Advokat Kristoffer Dons Brøndbo Maar Ingard Stangeland m.fl. - Advokat Kristoffer Dons Brøndbo Troms Kraftforsyning og Energi AS Norddalen - Advokat Kristoffer Dons Brøndbo

Troms Kraft Produksjon AS - Advokat Kristoffer Dons Brøndbo Charlotte Johanne Enoksen m.fl. Sigrid Marie Fagertun John Tarald Taraldsen

Anny Elise Hansen - Advokatfullmektig Viktoria Hauan Dagmar Pauline Johansen - Advokatfullmektig Viktoria Hauan Egil Hansen m.fl. - Advokatfullmektig Viktoria Hauan Asbjørn Hansen - Advokatfullmektig Viktoria Hauan Jan Egil Hansen - Advokatfullmektig Viktoria Hauan Dorit Helene Andersen - Advokatfullmektig Viktoria Hauan Per Bjørnar Hansen - Advokatfullmektig Viktoria Hauan Kurt Magne Wergeland - Advokatfullmektig Viktoria Hauan Arne Steinnes - Advokatfullmektig Viktoria Hauan Troms Kraft Produksjon AS - Advokat Kristoffer Dons Brøndbo Kåord vest Kåord øst

Introduction: The application for discretion applies to determine compensation for affected landowners and licensees in connection with Statnett's development of an approx. 360 km long 420 kilovolt (kV) power line between Balsfjord and Skaidi.

The estimate affects many interests, landowners and licensees. The line touches reindeer grazing land on much of the stretch. It has been decided that the judgment is divided into four sessions.

Four reindeer grazing districts stated that discretion should be denied. The court specifically addressed the issue of the discretion, the validity of the expropriation, and was decided on November 27, 2017.

This case concerns the determination of compensation for the affected landowners, seven reindeer grazing districts and a Swedish Sami village, on the Balsfjord stretch to Reisadalen.

The court held a hearing on 28 and 29 August 2018. The main hearing was held from 27 August to 13 September 2018 in Nord-Troms district court. In addition to the explanations of the party, the court received an explanation from 15 witnesses.

The reason for the case: On May 29, 2009, Statnett SF submitted a license application for a new 420 kV power line from Balsfjord in Troms to Hammerfest in Finnmark. The Norwegian Water Resources and Energy Directorate (NVE) granted the application with an expropriation permit in a decision of 2 May 2012. The reason for the application for a new power line was partly to secure supply in Northern Norway north of Ofoten, and to facilitate expected future development in Finnmark. Growth in consumption is expected to come as a result of increased consumption in the petroleum sector, new industrial activity and growth in general supply.

The decision was appealed to the Ministry of Petroleum and Energy by several complaining parties. NVE found no reason to change or reverse its decision and sent the complaints to the Ministry in a letter of 9 July 2012 for final processing.

The Ministry made its decision on April 30, 2015, where NVE's decision was confirmed with some changes. This route choice was applicable for the section Balsfjord - Reisadalen Skibotndalen (alternative 1.0-1.23.1) and when passing the Kåfjorddalen (alternative 1.0-1.5-1.5.1-1.5).

Construction work for the Balsfjord stretch to Reisadalen started in 2016 and is expected to be completed in the fall of 2019. The plaintiff has submitted draft general assumptions. The defendants have not raised objections to the proposal. The court has established such general discretion:

GENERAL CONDITIONS OF ESTIMATE 1. LEGAL AND FACTUAL BASIS OF ESTIMATES The Norwegian Water Resources and Energy Directorate (NVE) has, by decision of May 2, 2012, granted Statnett a license to build and operate a 420 kV power line from Balsfjord power station in Balsfjord municipality to Hyggevatn traffic station in Hammerfest municipality. On the same day, NVE granted permission to make expropriation for the necessary grounds and rights to build and operate the licensed facilities. The decision was appealed. By decision of 30 April 2015, the Ministry of Petroleum and Energy (OEO) upheld NVE's decision on concession and expropriation regarding the section Balsfjord traffic station in Balsfjord municipality to Skaidi traffic station in Kvalsund municipality by decision of 30 June 2015. granted NVE concession and expropriation permit for minor trace adjustments, extension of station plots and construction roads. On the same day, NVE decided on a final construction license. In accordance with NVE and the OEO's decision, the following electrical installations have been granted, cf. § 3-1 of the Energy Act: • An approx. 300 km long 420 kV power line from Balsfjord substation in Balsfjord municipality to Skaidi traffic station in Kvalsund municipality after route 1.0 in Balsfjord municipality, route 1.0 - 1.23.1 in Storfjord municipality, route 1.0 - 1.5 - 1.5.1 - 1.5 i Kåfjord municipality, route 1.0 in Nordreisa municipality, 1.0 in Kvænangen municipality, trace 1.0 - 1.11 - 1.17 - 1.0 in Alta municipality and trase 1.0 in Kvalsund municipality, med some adjustments. • Construction and operation of Vinnelys traffic station in Nordreisa municipality, Skillemoen traffic station in Alta municipality and Skaidi traffic station in Kvalsund municipality. The Oet is also shown to the said decisions by the OEO and NVE, including clarifications to the decision. Estimates will be held to determine compensation for claims from landowners and licensees that are not resolved by agreement. The estimate applies to the entire stretch from Balsfjord traffic station to Skaidi traffic station. By Statnett is hereinafter also meant cord owner.

2. THE ESTIMATES The discretion presupposes the actual basis for the discretion to be based on the determination of damages for the acquisition of necessary land and rights referred to in section 3, cf. section 1, such as: • the extent of the property infringement or rights acquisition • procedure for calculating and paying compensation • Indication of the measures Statnett undertakes • Indication of the conditions to be kept out of the discretion. The discretionary assumptions consist of a common and a special part. The special assessment assumptions contain special provisions for the individual tariff numbers. Insofar as the special assumptions are contrary to the ordinary, or to the general map material presented, the special discretion assumes in front of. In addition to the assumptions, maps, area maps and similar material are presented for each property. Statnett reserves the right to change or supplement the aforementioned material until judgment is taken up for removal. In addition to what is assumed in the discretion and other material presented as mentioned above, Statnett does not undertake any other work or other obligations to the defendants.

3. GENERAL ABOUT THE PROPERTY AND RIGHTS ACQUISITION The right to build a high-voltage transmission plant with associated facilities and facilities is acquired from Balsfjord traffic station in Balsfjord municipality to Skaidi traffic station in Kvalsund municipality, as well as the right to future operation of the facility, including access to inspect, maintain, repair and rebuild the plant, as applied by Statnett and conceded by GEO, cf. item 1 above. The right to make minor displacements of the cable and mast points during the construction is reserved. In addition to the acquisition of land and the clause of land for mast moorings, conduction and other installations, the acquisition includes any right necessary for construction, rebuilding, inspection, maintenance, repair and operation of such transmission facilities with technical facilities and facilities included in the expropriation measure, cf. the first paragraph. This can be eg be entitled to use existing roads, to build new roads, to establish transformer stations, base, drum and winch sites, etc. Unless otherwise expressly stated, the acquisition of land and rights is permanent.

4. CLAUSING AND CLEANING OF FORESTS AND OTHER VEGETATION The right to clear forest and other vegetation is acquired in a path of normally 40 meters width by 20 meters on each side of the center line (hereinafter the path or line route). Forest and land in the path are recorded before harvesting begins. On stretches where the path gets a different width, where it is shifted relative to the center line or where it is the overlap of the clearing and construction prohibition belt becomes permanent power lines, this will be indicated by special assumptions for the property in question. Statnett acquires the timber and carries out harvesting and operation of economically viable timber in the route. The landowner may optionally take over fields as per further agreement. It'll be cleaned up afterwards in accordance with the usual good forest management indicates. If clearing the path necessitates the felling of dividing trees, Statnett ensures that the dividing trees are replaced with permanent and clear boundary marks. Also outside the route, Statnett has the right to chop trees that impede the construction of the cable or are considered dangerous to the transmission plant. Compensation settlement for such hedging is presumed to be arranged every once in a while, possibly at a later discretion, cf. clause 10.

Statnett is entitled to all forestry that grows up in the pipeline route after the first forest clearing. Statnett will clear the forest at regular intervals so that it does not interfere with the wiring system's operation and safety. The it is assumed that forest clearing is done in an environmentally sound manner and that it is taken into account to other interests. Statnett shall, without special remuneration, have the right to use ordinary roll-over sites and operating roads on the properties, but without displacement for the landowner's ordinary forestry. Any damages will be rectified / replaced by agreement or, if necessary, at a later discretion, cf. section 10.

5. ACQUISITION OF REASONS Statnett submits preliminary information on the area to be acquired for each tariff number where applicable, as stated in special assessment assumptions. Final measurement takes place when the plant is closed.

6. THE BUILDING PROHIBITION BELT The building prohibition belt is normally 40 meters wide by 20 meters on each side of the center line, but never less than 10 meters from the outer line. It is forbidden, without special permission from the wire owner, to build houses and other facilities where some parts of the building (including eaves, balconies, stairs) come closer to the live part of the wiring system than 10 meters, measured horizontally from the outermost line.

7. EARTH CORDS The masts will be grounded. The earth lines are normally assumed to be buried to approx. 40 cm depth in the outfield where possible and for plow proof, usually approx. 70 cm depth of cultivated field. Ground wires in cultivated land will possibly be laid if they get in the way of construction of ditches, wires, etc.

8. RIGHT TO USE FOR CLAUSED BASIS The landowner retains the right to cultivate and utilize the land over which the line passes, with the restrictions resulting from the discretionary assumptions. If landowner or others wish to exploit the land under the pipeline for special purposes, or in the poor manner conducting activities that may have an impact on the management and safety of the management, the written consent of the management owner must be obtained. The terrain height under the power line can also not be changed without the written consent of the line owner. Otherwise, the current safety regulations are used at all times. The landowner is not entitled to carry out blasting work, felling of trees, excavation work on mast foundations, or other measures that may cause damage to the transfer plant. If the landowner wishes to carry out the above types of work near the cable, the cable owner should be contacted, and if necessary, indicate which security measures must be taken into account for the cable. The costs of possibly having to take such security measures are borne by the line owner. The warning distance is 30 meters from the outer edge of the building prohibition belt. To the extent the landowner follows the owner's instructions, he is not liable to the cord owner for damages that may have been caused to the cord as a result of the measure. In addition, the regulations in force for electrical supply systems that the line owner is subject to apply at all times apply.

9. VEIER, ACCESS MV The pipeline owner and any engaged contractors shall have the right to unrestricted access to and along the pipeline during the construction period, and during its subsequent operation, inspection, maintenance, repair and reconstruction, including the right to use the existing roads, transport and transport facilities at all times, and the right to repair or build new such facilities if this proves necessary. Compensation for the right to use roads constructed by persons other than the plaintiff or his or her successors, after the judgment has been removed, is determined by rules of expropriation, either in amity or by judgment, cf. section 10. The roads can be used before the claim is settled.

10. FUTURE DAMAGES / DISADVANTAGES AND FIXED DAMAGES / DISADVANTAGES Determination of damages shall include disadvantages for the affected properties as a result of subsequent operation, inspection, maintenance, rebuilding and repair of the pipeline. It is assumed that maintenance work in areas with cultivated land is carried out in the time after the harvest. If such work has to be done before harvesting, any damage will be replaced each time by agreement, possibly by discretion. Construction inconveniences and property damage shall be kept out of the judgment, unless otherwise provided by special assumptions. The same applies to damage and disadvantages as a result of rebuilding. Compensation for property damage or construction disadvantage, as well as for any future damages and disadvantages referred to above, shall be determined by legal judgment set by two members of the panel.

11. DETERMINATION OF COMPENSATION, SETTLEMENT AND INTEREST Compensation for the encroachments made, rights acquired, use of roads, and for damage and inconvenience caused to the property, are determined as one-time compensation. Compensation settlement is made in accordance with Sections 53 and 57 of the Appraisal Procedure Act, possibly directly with the defendant. Losses due to payment being made after accession have been determined by the discretion under the Remuneration Act (Act 6 April 1984) § 10 third sentence. This applies both in the event of pre-accession, and if full settlement cannot take place until the measure has been implemented and sufficient grounds or rights have been sufficiently established. The special assumptions and claims for damages are given under the individual tariff numbers.

The Court's assessment General questions for the determination of damages:

The measure over the Balsfjord stretch to Reisadalen affects landowners, unmetricised land, various roads, seven reindeer grazing districts and a Swedish Sami village. For tariff number 23 - Odd Lydersen -, no 29 bnr. 12 in the municipality of Balsfjord and tariff number 503 - Østre Kåfjord bergameieie, the case was raised by order of 13 September 2018.

The court will divide the processing of the remaining tariff numbers into two groups: - Land properties / road systems - Reindeer husbandry

The route includes tariff number 89 Hilmarsen, 102 Midtbøe, 140 Stangeland, 128 Døhl, 121 Larsen, 500 Norddalen, 501 Kåfjord West, 164 Lund, 165 Enoksen, 168 Fagertun, 181 Taraldsen, 195 Hansen and others, 203 Steinnes 502 Kåfjord East. Different assessment themes are linked to the individual tariff numbers.

The expropriator shall pay full compensation for the encroachment on the individual property, cf. Section 105 of the Constitution. Determination of the remuneration is regulated by the Remuneration Act. The remuneration shall, as a starting point, be set at the higher of the sales value or the value in use of the area to be relinquished, cf. remuneration. § 4.

How sales value and value in use are calculated follows from consideration. Sections 5 and 6. Furthermore, disadvantages of residual property shall be assessed in accordance with section 8 of the Remuneration Act. Special assessments must be made under the individual tariff numbers. Nevertheless, the court finds that some general assessments are made when calculating damages.

The power line touches various woodlands, and involves forest clearing for mast mounts and clearing for cableway with safety zones. The extent of necessary forest clearing and quality of timber is assessed by Statnett's forest expert Simen Bie Larsen, who met and explained to the discretion. Area resource maps, aerial photographs and field control have been used. Compensation calculation is made on the basis of the resources that could give the landowner a future return. This includes loss of opportunity for future forest production as well as value of claimed forest. The court of appraisal has assessed the expert's registrations, calculation models and valuations. The court finds that these are used when calculating forest compensation for the individual tariff number.

Impediment: The plaintiff has stated that impediment (unproductive land) should be set at NOK 0, - as it is worthless. In the Ofoten District Court case handed down on December 30, 2016 related to the 420 kV line, the discretion was based on a value for impediment of NOK 2, - per day. In the present case, the discretion finds that impediment itself has no value. After this, the court will assume that no compensation is made for line drawing with the cloning zone over impediment without it being linked to other losses and disadvantages.

Mast points: For mast points, the discretion finds that these constitute a more intrusive measure because of where they are placed. The discretion indicates that voluntary agreements have been awarded for mast points. The Tribunal finds, in line with Ofoten District Court in the above judgment, that mast parties are replaced with NOK. 500, - per piece in outfield / impediment.

The appraisal panel will then evaluate each tariff number: Rate number 89 - Hilmarsen: Special assumptions: Statnett will acquire the right to establish and clause land for a new 420 kV power line of 180 meters. Accession took place on January 21, 2015. Clause of area to power line constitutes 6.29 daa impediment.

Landowner's claim: In principle, full compensation is required - Clause of area for power line - loss of housing - Disadvantage of remaining property In the alternative, full compensation is required for: - Clause of area for power line - value in use

The defendant stated that the area covered by the line is part of a larger area called Tverrelvmyra, which in 2009 was reported to the municipality in connection with land planning for allocation for future housing purposes. The input to the municipality's land planning was made by Kjell Skogli for the company Nysted As after discussions with the landowner. At the municipality's initial treatment of the area plan's area plan in April 2011, the area was allocated for housing development with a requirement for detailed regulation. It was further stated from the examination that the proposal was withdrawn after discussion with the reindeer husbandry management because the measure was contrary to reindeer husbandry considerations in that a relocation road from the 80s went through the area concerned. The area is allocated to an LNFR area in an area part of the municipal plan. The relocation road was later changed in 2016 with the agreement of the Ministry of Agriculture and Food so that it no longer affects the Tverrelvmyra area. The defendant has stated that it was the consideration of reindeer husbandry that caused the area not to be allocated for housing purposes when treating the area portion of the municipal plan. Once the obstacle is removed by moving the relocation road, it is likely that the property would have been allocated for residential purposes. Referrals were made by real estate developer Skogli who has good knowledge of the development of land in Balsfjord municipality. In addition, statements were made by the mayor of the municipality, Gunda Johansen, who stated in a newspaper interview that the purpose of moving the relocation route was precisely to be able to release housing plots. When giving up land, valuation must therefore be taken as residential property. It has also been shown that the area could have been adapted to approximately 20 residential plots with about 1 day per day. plot. The clause zone line will come into direct conflict with about 5 plots. Secondly, all or part of the remaining area will be lost due to disadvantages of the measure exceeding the tolerance limit. It was here referred to statements by Skogli that he considered the entire area lost for housing purposes as a result of the line. The plaintiff has stated that the discretion must use the applicable land allocation, which in the current planning plan is the LNFR area.

It is not probable that the area would be redistributed for housing purposes if this did not conflict with reindeer husbandry interests that prevailed in 2011. Initial treatment of the land area was only a preliminary administrative treatment where many areas were taken in without being subjected to political treatment or posted on consultation with sector authorities. The discretion assumes that the starting point for the assessment of a projected use of the area should be based on the current planning plan. The Supreme Court has stated in "The Lena Judgment" Rt-1996-521 on page 541:

“But in my view, it is different when the public in areas that are not, according to land plan in general, to be kept free of development, regulate land for public facilities, such as roads, and then expropriation on the basis of the plan. The plan then is to relinquish the striped areas to the road system; the restriction on availability that the plan entails has no other purpose than precisely this: that the ground until expropriation takes place must be kept undeveloped for the sake of the road construction. If the situation is that it was foreseeable that the land which the road seizes could have been utilized for other development if the road plan had not come, the development to public road represents an alternative, competitive utilization in relation to the development the owner could have made. It can be seen that the development value of the land is transferred from the private owner to the public. I then consider it well justified, and also best in accordance with the provision in Section 105 of the Constitution for full compensation on forced resignation, that it is disregarded from the plan it is expropriated on the basis, as it seems to me in law and practice. If the land use of the plan is not taken into account in road expropriation, this means that the discretion must judge which utilization without the road plan and the road would have been anticipated "according to the law on the city", cf. section 5 second paragraph of the Remuneration Act. If it is foreseeable that the land could then have been utilized by the owner for development, this is included in the determination of the sales value. "

If the 420 kV line is thought to be gone, the current plan for the property is the LNFR area. The discretion does not find it likely that the area would have been allocated for housing purposes if the line were not established. The discretion indicates that only a preliminary assessment of the administration in the municipality was made when treating the area part of the municipal plan where the area was included for further investigation. There are no proposed plans, but only an input on housing provision. The proposal has not been heard, including not submitted to the agricultural and environmental authorities for comment. Nor has it been submitted to political authorities for the assessment of priority areas for housing purposes. Planning counsel from the municipality provided an explanation to the court and stated that it was difficult to predict the outcome of a planning treatment for housing purposes under the given assumptions that the relocation road was gone and the line was not established. After this, the court has come to the foreseeable utilization of the property in the current planning plan. The area is allocated to the LNFR area and no sales value as residential premises should be taken into account. Therefore, no claim for compensation for disadvantage is accepted.

The claused area constitutes 6.29 days of impediment, and which the court finds is worthless.No replacement for tariff number 89 is awarded. Tariff numbers 160, 320 and 322 - Troms Kraft Produktion AS Special assumptions: For tariff number 160: Statnett acquires the right to use existing road V110cE at 2640 meters - 420 tonnes Rate number 320: Statnett acquires right to use existing road V110E at 16 750 meters - 2567 tonnes Statnett acquires right to use existing road TV111E at 3 600 meters - 20 tonnes Statnett acquires right to use existing road TV111bE at 10 100 meters - 20 tonnes Statnett acquires right to use existing road TV111eE at 1,900 meters - 20 tons Statnett acquires right to use new track TK111dN at 1 100 meters - 20 tons Rate number 322: Statnett acquires right to use existing road V89E at 12,800 meters - 2567 tonnes Statnett acquires right to use existing road V88E at 10,840 meters - 20 tonnes Statnett acquires right to use existing road TK87E at 5,830 meters - 20 tonnes Statnett acquires right to use existing road TV93E at 3 990 meters - 20 tons Accession for all roads was January 26, 2016.

Landowner's claim: It is awarded full compensation for - Fees for road use - Compensation for costs to attorney Normann with NOK. 52 813, - inclusive VAT - Compensation for internal costs of NOK. 115 000, -