E784 Volume 4

SASOL MINERAL RIGHTS, ESTATES AND SERVITUDES DEPARTMENT (SMRD)

OWNER CONSULTATION AND SERVITUDE NEGOTIATIONS - NATURAL GAS PROJECT RSA Public Disclosure Authorized

CONTENT

* ROUTE OF PIPELINE * SERVITUDE AGREEMENT * EIA-PHASE AND PROPERTY/OWNER SCHEDULE. * VALUATIONS AND PERMANENT SERVITUDE COMPENSATION * TEMPORARY SERVITUDE AND COMPENSATION PAYABLE * NEGOTIATIONS. * LIAISON DURING CONSTRUCTION AND REGISTRATION OF SERVITUDES * FINAL SERVITUDES NEGOTIATED

Notes It is important to bear in mind that obtaining servitudes is a long-term relationship between the property Public Disclosure Authorized (surface) owner and the servitude owner.

Relationships need to be established from the first visit or first contact with any property owner. This includes being reasonable with the proposed route and the compensation amount applicable.

This is a continuous process whereby the owners are kept informed about the whole process, including personal visits and correspondence.

1. ROUTE OF PIPELINE

Public Disclosure Authorized * The pipeline route from Secunda to begins at the Sasol plant in Secunda and traverses approximately 343 kilometres up to the Mozambique border at . * The starting point at Secunda is situated on the highveld and leads to the middleveld where it goes down Rooihoogte in the Carolina- area. The last descent is at Nelshoogte, across Devils Knuckles towards the lowveld. * The towns situated in close proximity to the route are Secunda, Bethal, Carolina, Badplaas, Barberton, Kaapmuiden, Malelane, Hectorspruit and Komatipoort.

2. SERVITUDE AGREEMENT

The agreement is the final document produced after negotiations between the various parties involved. The purpose of the servitude agreement is to negotiate certain rights between the parties, secure these rights through registration of the servitude and to regulate the future access and conditions agreed between the

Public Disclosure Authorized parties.

An agreement is compiled in conjunction with all relevant parties concerned with the content and conditions of the agreement: FILE COPY The width of permanent and temporary servitudes is determined by the future space and access needed for maintenance work as well as allowing sufficient space during construction. (Permanent and temporary servitudes measure 6 m and 20 m respectively). Eventually the 6 m servitude will be registered against the title deed of each property, with coordinates indicating the exact route of the pipeline/servitude.

2.1 Payment of compensation

There are two types of compensation, namely the permanent servitude based on property values and temporary servitude based on actual financial losses.

The compensation amount payable on the permanent servitude is determined and negotiated when the agreement is signed. Compensation on the temporary servitude can be determined before construction, at the time of negotiating servitude, 30 days after construction has started or on the registration date.

Also included is the rate of interest to be paid on the compensation amounts (to be agreed on between all parties). The interest, if any, is payable from the date of entry onto the property for construction activities up until the date of registration.

Future access is also one of the conditions negotiated between the parties. Access onto an ordinary cattle farm will differ from that of a game farm. Conditions will include access and the installation of gates (how, when and why).

Specific property usage has an effect on the property values. The agreement can have a permanent influence on property usage, for example, it is a specific agreement precondition that no permanent structures or trees (orchards) will be allowed on the permanent servitude area. Within the permanent servitude area the following cash-crops/orchards are allowed, bananas, paw-paws, sugarcane, etc. However, nuts, avocados, mangos, citrus and forestry are not allowed.

3. EIA PHASE AND PROPERTY/OWNER SCHEDULE

The first step undertaken by Sasol during the owner consultation and servitude negotiations was to obtain an initial list of all potentially affected properties on all the alternative routes identified. The initial amount of owners on the different alternative routes was nearly 400. Deeds office investigations were conducted and a schedule complied with property and owner information.

All property owners were contacted and visited on all the different alternative routes. The EIA Scoping Report was distributed during these contact periods, the process was discussed and explained and any initial questions answered. People were informed of open days and all potentially affected owners were invited.

Lists with all the addresses and telephone numbers of potentially affected property owners and all the comments and concerns raised by property owners were complied. These lists were then sent to the EIA consultant.

Sasol personnel then undertook to attend all the open days and meetings with interested and affected parties (I&APs). Sasol staff familiarised themselves with the l&APs and kept records of potential problems as well as problem-owners.

Sasol personnel also attended meetings with affected parties on re-routing and obstacles along the route. SMRD had continuous input on the route planning, relating all information and concerns addressed by property owners to all parties concerned. This formed part of the final EIA process. Concerns regarding environmental issues were:

* Rehabilitation of the servitude areas. * Invasion by alien plants. * Usage and maintenance of roads. * Future erosion. * Loss of agricultural land.

Other factors, not environmentally related, taken into consideration when choosing and finalising the route were:

* Length of route. * Existing services and service-corridors. * Cadastral boundaries. * Constructability. * Cost.

4. VALUATIONS AND PERMANENT SERVITUDE COMPENSATION

An independent Valuator (member of the Institute of Valuators) was appointed to do general valuations of the proposed pipeline route. This usually took place after the open days and determination of a preferred route. The route was divided into certain sections where a general valuation would be applicable for the whole section. Management needed to approve these valuations before they could be used for any negotiation purposes. On this specific project an additional 25% was added to the maximum valuation for each section or category making sure that relevant and fair compensation amounts were negotiated with the property owners.

If necessary, individual valuations were done on individual properties to get specific values or to determine the devaluation of the property involved. The owner could, however, choose to appoint a valuator of his own choice and even in this case, Sasol would pay the costs. Therefore, a list of potential valuators, approved by SMRD, was compiled all of whom were members of the Institute of Valuators.

After receipt of the servitude sketches for the whole route, a decision was taken on which areas general and specific valuations would be done. The valuators were then supplied with all the relevant servitude sketches and route plans. The process of property valuations was managed according to the negotiation requisites.

The valuation reports from the valuators were scrutinised for correctness regarding the proposed compensation amounts. A schedule of all the valuations was complied and forwarded to the Legal Department for Management approval. The route followed in terms of Management approvals was that all information was provided in writing prior to commencement of the valuation process. Sasol approved amounts 25% higher than the valuators had stipulated.

A minimum amount of R 1 000.00 per servitude was applicable. In some instances the amount payable, if only calculated on the extent of the servitude and the property values, was not worth the inconvenience to a property owner.

The valuators were available to assist SMRD during negotiations in cases where their specialist (property/price) knowledge on properties was required. Owners had the right to ask for a specific valuation to be done by a valuator of their choice. Different valuation categories used on this project were:

* Grazing (rocky and mountainous). * Grazing (veld). * Grazing (suitable for pastures). * Grazing (old fields). * Fields. * Fields suitable for irrigation. * Irrigated fields. * Orchards. * Forestry areas. * Game farms. * Game farms with potential for ecotourism.

The valuation amounts differed from one category to the other. The valuation amounts for the total pipeline route differed from a minimum of R 750.00 per hectare up to a maximum of R 16 500.00 per hectare. The property valuations for the smaller properties, smallholdings and industrial areas differ from R 25 000.00 per hectare up to R 200 000.00 per hectare.

The route can be divided into certain areas:

* The Highveld-area where there is mostly grazing and cash crops (mainly maize and wheat). * Nelshoogte and Glenthorpe areas where forestry is the main agricultural activity. * Barberton-Kaapvalley area that mainly comprises orchards (nuts, avocado, citrus, cane, vegetables). * Kaapmuiden - Hectorspruit area (mainly sugarcane and citrus). * Hectorspruit - Komatipoort area (mainly game farms, sugarcane, bananas and cattle). * Komatipoort area has many smaliholdings.

5. TEMPORARY SERVITUDE AND COMPENSATION PAYABLE

Research was done on the various kinds of crops and vegetation, which would be affected by the servitude. Values and formulae for calculations were obtained regarding different kinds of damage compensation that had to be negotiated from accredited organisations like OTK, Irrigation Boards, Sugar Cane Associations, etc.

The actual financial loss incurred by the property owner had to be taken into consideration. This could include the loss of an annual crop, interim loss of grazing or the permanent loss of perennial crops. Damage was also payable for the repair or usage of private roads, not having access to certain areas, loss of crops due to damages to irrigation lines, etc.

The following categories were used in negotiating for and paying of damage compensation:

* Damage to grazing. * Re-instatement of grazing. * Weed control. * Damage to cash crops. * Permanent loss of usable agricultural land (orchards on pipeline route).

The amounts paid ranged from as little as R 1 000.00 per hectare up to as much as R 60 000.00 per hectare. Damages were assessed and paid, depending on what was negotiated with the claimant (some property owners insisted on negotiation of damages prior to commencement of construction while others insisted on discussing damage compensation only after completion of construction).

6. NEGOTIATIONS

After all the values had been obtained and approved, SMRD agents visited every individual property owner to negotiate servitudes. The negotiations were an open negotiation between the parties. Every landowner was entitled to negotiate an amount he felt to be appropriate for his land. Sasol used the valuations as their basis from which to negotiate and tried to get to an agreement within that framework. The purpose of this is to be consistent with compensation amounts offered and not to have a negative effect on property values.

Every owner was entitled to legal advice before entering into an agreement with Sasol. Conditions of the agreement could be amended according to the owners' as well as Sasol's needs.

It was agreed that should any action be taken as a result of consultation/negotiation with owners, SMRD will inform and instruct the relevant parties. Consultation would then take place with the engineers and environmental consultant in cases of re-routing the servitudes in order to accommodate property owners' demands and to finalise agreements.

Records were kept of all conversations, negotiations and decisions with owners, engineers, etc. as well as all agreements entered into.

A copy of every signed servitude agreement was forwarded to the relevant property owner as well as to the Consulting Engineers.

Servitudes were negotiated with the following categories of owners:

* Bona-fide farmers (cattle, game, annual crops, perennial crops, orchards). * Government. * Municipalities. * Mine-houses, private companies. * Closed Corporations, Trusts. * Part-time farmers. * Professional people (attorneys, engineers, doctors, ministers, etc).

7. LIAISON DURING CONSTRUCTION AND REGISTRATION OF SERVITUDES

Sasol, accompanied by the contractor, visited all affected owners before any construction started to make sure they were satisfied with the final agreed route and to discuss potential problems during construction. The contractor also noted all affected services.

Sasol attended to all complaints and possible claims received from property owners and tenants. All claims related to the servitude agreement were handled by Sasol to make sure the there were no deviations on the compensation amounts. Sasol also ensured that the terms of the servitude agreements were adhered to.

After construction, the permanent servitude was surveyed and a Surveyor General (SG) diagram produced indicating the precise position of the servitude with the relevant coordinates. The SG sketches were forwarded to SMRD by the land surveyor, for registration of the servitude against the title deed of the property. Payment of the permanent servitude compensation was made within 30 days after registration. After registration the original title deed as well as a copy of the Notarial Deed of Servitude were handed to the owner.

8. FINAL SERVITUDES NEGOTIATED

The final amount of servitudes negotiated with approximately 235 different property owners was 272. All the negotiations were done on a one-on-one basis where each party had the opportunity to negotiate for compensation amounts they felt were fair, reasonable and market related.

No-one had to be re-settled on the RSA portion of the route. Route planning and route changes made it possible to accommodate all settlements. SERVITUDE AGREEMENT (MSP PIPELINE)

1. PARTIES

THE REPUBLIC OF MOZAMBIQUE PIPELINE INVESTMENTS COMPANY PROPRIETARY LIMITED (Registration number 2000/013994/07)

a Company incorporated with limited liability in the Republic of

(hereinafter referred to as ROMPCO)

and

herein represented by:

Identity number/registration number: ...... (hereinafter referred to as the OWNER)

2. RECORDAL

2.1. ROMPCO is desirous of acquiring servitudes over the PROPERTY for the purposes of construction, maintenance and use of the PIPELINE and WORKS;

2.2. The OWNER as registered owner of the PROPERTY is prepared to grant the acquired servitudes over the PROPERTY in favour of ROMPCO subject to payment of the con- sideration as set out hereinafter.

3. DEFINITIONS

In this AGREEMENT, the following expressions have the meaning respectively set opposite them unless it appears otherwise from the context;

* "PROPERTY" shall mean the Property known as:

,...... - ......

Measuring ...... (hectares) Province Held by the OWNER by virtue of Deed of Transfer: T ...... - 2-

* "AGREEMENT" means the servitude agreement as recorded herein and any annexures hereto;

* "PARTIES" means ROMPCO and the OWNER;

* "PIPELINE" means an underground pipeline or pipelines which pipeline or pipelines may be used and/or leased for the conveyance of solids, gases and liquids and which may not be installed nearer to the surface than 1 (one) metre;

* "PIPELINE MARKERS" means markers at intervals sufficient to indicate visually on a continuous basis, the exact location of the PIPELINE;

* "PERMANENT SERVITUDE AREA" means an area which does not exceed 6 (six) meters in width along a route as approximately indicated by the letters ...... on the attached diagram marked "A" within which the PIPELINE and WORKS will be accommodated. The boundaries of such area will be determined by a land surveyorto be appointed by ROMPCO, after construction of the first pipeline over the PROPERTY and the extent of such area shall be approximately ...... m2. The said land surveyor shall frame a servitude diagram of such area with co-ordinates and will have such diagram approved by the Surveyor General.

* "TEMPORARY SERVITUDE AREA" means an area over the PROPERTY 20 (twenty) metres wide which includes the PERMANENT SERVITUDE AREA and of which the boundaries run parallel to that of the PERMANENT SERVITUDE AREA.

* "TEST POSTS" means testing apparatus, approximately 600mm in height above natural ground level located along the route of the PIPELINE;

* "WORKS" means all power cables, communication cables, transformer units, cathodic protection equipment, TEST POSTS, PIPELINE MARKERS, valve boxes, and any other constructions, appurtenances, additions or fittings which in ROMPCO's discretion may be necessary or convenient for the purpose hereof and which are installed or erected by ROMPCO on the surface or underground.

4. SERVITUDE

4.1. The OWNER hereby gives and grants to ROMPCO two perpetual servitudes over the PROPERTY within the PERMANENT SERVITUDE AREA for the installation, maintenance -3- and use of the PIPELINE and WORKS and the right to patrol, inspect, maintain, repair, renew, remove and re-lay the PIPELINE and WORKS.

4.2. The OWNER hereby gives and grants to ROMPCO a temporary servitude over the PROPERTY for the duration of the construction of the PIPELINE and WORKS within the TEMPORARY SERVITUDE AREA.

ACCESS TO PROPERTY

5.1. ROMPCO, its contractors, or agents, or its or their servants, together with all necessary vehicles and equipment shall have such right of ingress to and egress from the PROPERTY as may be necessary or convenient, for the exercise of any or all of the rights granted to ROMPCO in terms of this AGREEMENT.

5.2. For the purpose of unrestricted ingress to and egress from the PIPELINE and WORKS by ROMPCO, its contractors, or agents, or its or their servants, for the exercise by ROMPCO of its rights in terms of this AGREEMENT, the OWNER, tenant or occupier shall not erect any buildings, fences or other structures, or plant any trees, or deposit any materials in the PERMANENT SERVITUDE AREA, or reduce, disturb, or interfere with any soil deposit over the PIPELINE and WORKS, or elsewhere in the PERMANENT SERVITUDE AREA without the written consent of ROMPCO.

5.3. Notwithstanding the provisions of clause 5.2, the OWNER shall be entitled to cultivate such land within the PERMANENT SERVITUDE AREA which is available and suitable for this purpose, to a depth of not more than 0,50 metres for agricultural purposes, excluding orchards and plantations, provided however, that the OWNER does not thereby reduce the soil deposit, or in any manner cause damage to the PIPELINE and WORKS, or interfere with the rights of ROMPCO in terms of this AGREEMENT.

5.4. ROMPCO shall in its sole discretion and at its own cost, decide whether to install suitable gates at places where existing fences cross the PERMANENT SERVITUDE AREA, or where access to the PERMANENT SERVITUDE AREA is hindered by existing fences. The OWNER undertakes to install suitable gates, at his own cost, at places where fences are hereafter erected with the consent of ROMPCO on or over or adjacent to the PERMANENT SERVITUDE AREA. All the aforementioned gates shall be locked by ROMPCO and if the OWNER shall also require the said gates to be locked, this shall be done in a manner approved by ROMPCO. The OWNER shall be responsible to maintain all such gates used by him in good order, provided that he shall not be responsible to -4 - repair any damage caused by ROMPCO, its con-tractors, or agents, or its or their servants, acting as such.

6. CESSION

ROMPCO may, at any time, cede its rights and delegate its obligations in respect of each of the servitudes granted in terms of this AGREEMENT to any third party(ies).

7. MINERAL RIGHTS

7.1. In the event of the OWNER being the holder of the mineral rights in respect of the PROPERTY the following conditions shall be applicable:

7.2. Should the presence of the PIPELINE at any stage in any way whatsoever, interfere with, restrict, or prevent the exploitation of minerals (excluding sand, stone and clay) the OWNER shall inform ROMPCO accordingly in writing and should ROMPCO within 90 (ninety) days thereafter not be able to offer an alternative solution which is reasonably acceptable to the OWNER other than to remove the PIPELINE and WORKS, ROMPCO will remove and relocate the PIPELINE and WORKS along a route over the PROPERTY to be determined by ROMPCO and the OWNER jointly.

7.3. The OWNER undertakes to provide a new servitude, similar to the servitude contained herein, to ROMPCO should it become necessary to remove and relocate the PIPELINE insofar that the new route traverses the PROPERTY.

7.4. All costs for and incidental to the removal and relocation of the PIPELINE and WORKS, including the cost of obtaining and registering servitudes to protect the PIPELINE, will be for ROMPCO's account.

8. SERVITUDE

8.1. The provisions of this AGREEMENT shall be registered in notarial form against the Title Deed of the PROPERTY.

8.2. The OWNER undertakes to deliver to ROMPCO, on demand, the Title Deed and diagrams relating to the PROPERTY and to sign, or obtain such other documents and consents as may be necessary for the registration of the notarial agreements.

8.3. The OWNER nominates, constitutes and appoints...... -5- ...... asagent with the power of substitution to sign all documentation that may be required to execute and register notarial servitudes which have been drafted according to the conditions set out in this AGREEMENT and to

make all necessary alterations for registration purposes; and generally for effecting the purposes aforesaid, to do or cause to be done whatsoever shall be requisite, as fully and effectually, for all intents and purposes, as the OWNER might or could do if personally present and acting herein - hereby the OWNER ratifies everything his or her agent shall lawfully do, or cause to do.

8.4. ROMPCO shall, at its own cost, procure the execution and registration of such notarial agreements. The costs aforementioned shall include the cost of the preparation of notarial agreements and all attendances, documents and papers which may be necessary for preparation and registration thereof, the transfer duty and stamp duty payable, including the cost of survey, preparation and approval of diagrams and in general any cost whatso- ever to obtain execution and registration of the notarial agreements.

8.5. ROMPCO shall be entitled to exercise all the rights granted in terms of this AGREEMENT notwithstanding that registration of the notarial agreements have not been effected.

9. CONSIDERATION

9.1. As compensation for the rights granted in 4.1 above, ROMPCO shall pay the OWNER the amount of R...... (. ).

9.2. As compensation for the rights granted in 4.2 above, ROMPCO shall pay to the OWNER an amount equal to the OWNER's actual financial loss caused by the granting of the rights in 4.2 above, which amount will be agreed upon by ROMPCO and the OWNER within 3 (three) months after the PIPELINE and WORKS have been completed to such an extent that in the opinion of ROMPCO the extent of the actual financial loss of the OWNER can be ascertained and in the absence of an agreement on the amount of such compensation, an amount as to be determined in accordance with Clause 13 hereof.

9.3. As compensation for the use of the PERMANENT SERVITUDE AREA and the TEMPORARY SERVITUDE AREA, before the amounts of the OWNER's actual financial loss has been determined as envisaged in 9.2, ROMPCO shall pay to the OWNER interest at a rate of 10% (ten percent) per annum calculated on such amounts as from the date on which ROMPCO enters the mentioned servitude areas to install the PIPELINE and - 6 - WORKS until date of payment.

9.4. The compensation in respect of the PERMANENT SERVITUDE AREA, together with interest intended in 9.3, shall be payable within 30 (thirty) days after registration of the servitude against the title deed of the property.

9.5. The compensation in respect of the TEMPORARY SERVITUDE AREA, together with interest intended in 9.3, shall be payable within 30 (thirty) days after such compensation has been determined as envisaged in 9.2

9.6. ROMPCO shall pay reasonable compensation for all damage caused on the PROPERTY, outside the servitude areas by ROMPCO (its contractors, agents or its or their servants acting as such), arising from the exercise of any of the rights granted in terms of this AGREEMENT, but shall not be liable for any damage caused within the PERMANENT SERVITUDE AREA except when the second pipeline is constructed in which event ROMPCO shall be liable for direct damage caused within the PERMANENT SERVITUDE AREA.

9.7. The compensation excludes Value Added Tax and should such tax be payable, ROMPCO shall pay the amount of such tax on submission of an acceptable tax invoice.

10. EXERCISE OF SERVITUDE RIGHTS

10.1. To the extent that the rights of the holder of a servitude granted in terms of this AGREEMENT may conflict with the rights of the other servitude holder, the rights of the holder of the servitude which first exercised its rights by the construction of a pipeline, shall prevail.

10.2. In exercising its rights in terms of this AGREEMENT a holder of a servitude shall exercise its rights civiliter modo and in such a manner that the other servitude holder is able to exercise its rights meaningfully and on an equitable basis.

11. GENERAL CONDITIONS APPLICABLE TO OWNER

11.1. The conditions and provisions of this AGREEMENT shall be binding on the OWNER, his heirs, executors, assigns, administrators or successors in title.

11.2. In event of the OWNER disposing of the PROPERTY during the currency of this AGREEMENT and before the registration thereof in notarial form, he shall advise the purchaser in writing of the provisions of this AGREEMENT and if he fails to do so, he shall be responsible to ROMPCO for all damages which ROMPCO may suffer as a result of his failure to do so.

12. DOMICILIUM

12.1. The PARTIES do hereby respectively choose the following addresses as their domicili citandi et executandi for purposes of this AGREEMENT:

OWNER:

ROMPCO: The Manager Sasol Mineral Rights, Estates and Servitudes

1 Sturdee Avenue

ROSEBANK

12.2 The PARTIES do hereby respectively choose the following addresses for the delivery or despatch of any correspondence or any documents in pursuance of this AGREEMENT:

OWNER:

ROMPCO: The Manager Sasol Mineral Rights, Estates and Servitudes

P 0 Box 699

TRICHARDT

2300 -8-

12.3 A notice by pre-paid registered post as aforesaid, shall be deemed to have been received by the party to whom it is addressed on the tenth day following the date on which it was posted.

12.4 The PARTIES shall be entitled, by written notice sent by registered post, to change their addresses aforesaid to another address within the Republic of South Africa.

13 DISPUTES ON COMPENSATION

13.2 The OWNER shall be entitled to refer any dispute in respect of the determination of the amount of the compensation as intended in 4.2 hereof to an umpire as though the servitude rights granted to ROMPCO were obtained by means of expropriation in accordance with the provisions of the Expropriation Act, 63 of 1975 on the date on which this AGREEMENT had been concluded, provided that such referral takes place within the period of 3 (three) months as intended in 9.2 above and failing to do so the OWNER shall be deemed to have accepted the amount referred to in 9.2.

13.3 For purposes of the determination of the compensation intended in 13.1 the norms of Section 12(1)(b) read together with the provisions of Section 12(5), as well as the provisions of Section 12(2) of the abovementioned Expropriation Act will be applicable and for these purposes any reference to the said sub-sections of the Expropriation Act to:

13.3.1 "State" - shall be interpreted as a reference to ROMPCO; and

13.3.2 "Owner" - shall be interpreted as a reference to the OWNER; and

13.3.3 "Property" - shall be interpreted as a reference to the servitude rights granted by the OWNER to ROMPCO in terms hereof.

13.4 In the event of a dispute as intended in 9.2 hereof, such dispute will be referred to a person as agreed upon by the parties and failing such an agreement within 14 (fourteen) days after the date upon which the dispute arose, the dispute will be referred to a practising senior advocate of the Bar or a practising attorney of Pretoria with at least 15 (fifteen) years practical experience and appointed by the then President of the Law Society of the .

13.5 Any person appointed in terms of the agreement as set out above ("the UMPIRE) shall -9- always act as an expert and not as an arbitrator.

13.6 The procedure and method to be followed in the hearing of the dispute and the hearing of expert evidence and anything which is necessary to be done to reach a decision, shall remain in the full discretion of the UMPIRE.

13.7 The PARTIES shall use their best endeavours to procure a decision by the UMPIRE within 21 (twenty-one) days or as soon as possible thereafter, after the dispute was referred to the UMPIRE.

13.8 The decision of the UMPIRE will be final and binding upon the disputing parties and may be made an order of any court of competent jurisdiction upon the application of a party to the dispute.

13.9 The provisions of this clause 13:

13.9.1 serve as an irrevocable consent by all the PARTIES to any of the proceedings in terms hereof and the PARTIES shall not be entitled to withdraw from the proceedings or to maintain that they are not bound by such provisions; and

13.9.2 be divisible from the rest of this agreement and will remain of full force and effect notwithstanding termination of this agreement for any reason whatsoever.

13.101n respect of the costs in the arbitration proceedings, the PARTIES agree as follows:

13.10.1 The UMPIRE shall be empowered to make such award or awards in respect of costs as he in his discretion may deem fit in respect of the following

13.10.1.1 interim awards in respect of wasted costs;

13.10.1.2 on request of any party determine whether a particular item or items claimed by any party in terms of an order to costs made by the arbitrator, should be allowed or disallowed against the other party.

13.10.2 The provisions of Section 15(2) and (3) of the Expropriation Act, 63 of 1975 in respect of costs is mutatis mutandis applicable on the arbitration proceedings.

13.10.3 Costs shall be allowed as between party and party in accordance with the provisions of the tariff applicable in the Supreme Court of South Africa. -10-

14 MANAGEMENT APPROVAL

This AGREEMENT is subject to the suspensive condition that management of ROMPCO approve this AGREEMENT within 30 (thirty) days from signature thereof.

15 TERMINATION

ROMPCO shall be entitled to at any time prior to the commencement of construction of the first PIPELINE, terminate this AGREEMENT should it appear that the route of the PIPELINE is- diverted not to effect the PROPERTY. On termination, this AGREEMENT will lapse and neither of the PARTIES will have any claim against the other as a result of such termination.

SIGNED AT ...... on the .. DAY OF .... 2002.

WITNESSES:

1

2 OWNER who warrants that he is duly authorised thereto

SIGNED AT ...... on the .. DAY OF .... 2002.

WITNESSES:

1

2 ROMPCO who warrants that he is duly authorised thereto MANAGEMENTAPPROVAL: DATE MANAGER: MINERAL RIGHTS, ESTATES AND SERVITUDES

GSISERVER\ADMIMKONTRAKTE\SERWITUUT\MSP\MSP PIPELINE\rs -09/0812002 cfdt SsosL H,idrocra rionetos o /iqdr,caMM rborle tos de Alc>qEirlbiqLJe SL de A4c; rrbique

NO. DO NO. DO CARTAO: CARTAO:

APELIDO IMPRESSAO APELIDO IMPRESSAO DIGITAL DIGITAL

NOME NOME

DISTRITO DISTRITO

DATA ASSINATURA DATA ASSINATURA

FOTOGRAPHIA: FOTOGRAPHIA NUMERO DE CASAS TAMANHO DA CASA NUMERO DE CASAS TAMANHO DA CASA

TIPO DE CASA TIPO DE CASA NUMERO DE NUMERO DE CAMPAS CAMPAS

NUMERO DE PESSOAS NUMERO DE PESSOAS

ACTIVIDADES ACTIVIDADES AGRICULTURAIS. AGRICULTURAIS: SASOL NATURAL GAS PROJECT

CHRONOLOGICAL SUMMARY OF THE GOVERNMENT AND PUBLIC CONSULTATION PROCESS

May 2000 to May 2003

It is important to note that there has been extensive consultation as part of the environmental impact assessments undertaken for the Natural Gas Project. These consultations do not form part of the record presented here. Furthermore, it is important to note that Sasol has prepared a Public Consultation and Disclosure Document that is currently in the public domain.

DATE WHO CONSULTED ACTIVITY NOTES Various Potentially affected Consultation, interviews and Activities undertaken by communities and individuals meetings IMPACTO in order to compile the EIA and associated reports May 2000 - Potentially affected Consultation and information Undertaken by Sasol's ongoing communities and individuals dissemination with regard to all Communications Team who has project components remained on the ground throughout the project and has interacted with communities continuously in an on-going manner 04.09.00 National Government of Meeting/Workshop First meeting held to establish Mozambique (GOM) guidelines for the approach required with regard to resettlement and compensation 20.09.00 National GOM, particularly Meeting Direccao Nacional de Carvgo e Hidrocarbonetos (DNCH) 17.11.00 Project Liaison Committee Meeting (Held monthly. Sasol and National GOM (PLC) Commenced in 1997) 15.12.00 Damage Compensation Meeting Committee 06.04.01 Resettlement and Meeting First meeting, comprising Compensation Task Group members of Sasol, GOM and (RTG) Resettlement Consultants. GOM submitted thoughts on resettlement procedures and requirements 14.05.01 RTG and GOM Advisor Meeting Discussions primarily focussed on resettlement procedures 28.05.01 Provincial officials from Gaza, Meeting Inhambane and Maputo Provinces 08.06.01 RTG Meeting DATE WHO CONSULTED ACTIVITY NOTES 19-22.06.01 Ministerio de Agricultura e Field trip ACER/Codemo and Desenvolvimento Rural, representatives from the Ministerio Maputo Province de Agricultura e Desenvolvimento Servicios Provinciais de visited GOM agricultural entities in Agricultura, Gaza Province the provinces of Gaza and Servicios Provinciais de Inhambane in order to determine Agricultura, Inhambane appropriate compensatable values Province for agricultural crops 28.06.01 RTG Meeting July 2001 Affected individuals Registrations Damage as a result of seismic exploration 12.07.01 RTG Meeting 18.07.01 Blessing Ceremony Ceremonial gathering Held at the CPF site, Temane 18-19.07.01 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members 25-26.07.01 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members 31.07.01 Affected individuals Compensation payments Damage as a result of seismic exploration 30.07.01 - Various District Administrators, Field/site visit to Temane and Undertaken by SMRD 05.08.01 local leaders and community along the pipeline route members August2001 Affected individuals Registrations Damage as a result of seismic exploration 22.08.01 RTG Meeting 30-31.08.01 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members 31.08.01 Affected individuals Compensation payments Damage as a result of seismic exploration September 2001 Affected individuals Registrations Damage as a result of seismic exploration 13.09.01 RTG Meeting 17-19.09.01 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members 27-28.09.01 Affected individuals Compensation payments Damage as a result of seismic exploration October 2001 Affected individuals Damage registration during seismic exploration 29.10.01 RTG Meeting

2 DATE WHO CONSULTED ACTIVITY NOTES 30-31.10.01 Affected individuals Compensation payments Damage as a result of seismic exploration

October 2001 - Potentially affected Blue carding/pre-registration along January 2002 communities and individuals the pipeline route November 2001 Affected individuals Damage registration during seismic exploration 01.11.01 Affected individuals Compensation payments Damage as a result of seismic exploration 07.11.01 Sasol representatives and Meeting Meeting to establish Community GOM Interface Forum concept 08-09.11.01 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members 28.11.01 Affected individuals Compensation payments Damage as a result of seismic exploration December 2001 Affected individuals Damage registration during seismic exploration 07.12.01 GOM Meeting 17-18.12.01 Affected individuals Compensation payments Damage as a result of seismic exploration 18-20.12.01 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members January 2002 Potentially affected Blue carding/pre-registration along communities and individuals flow lines and at the CPF January 2002 Affected individuals Registrations Damage as a result of seismic exploration January 2002 Affected individuals Registrations Damage as a result of gas field activities 17.01.02 RTG Meeting 22-24.01.02 District Administrator, Field/site visit to Temane Undertaken by SMRD during Inhasorro seismic exploration Presidente de Local, Maimelane Local leaders, Temane Community members February 2002 Affected individuals Damage registration during seismic exploration 14-15.02.02 District Administrator, Field/site visit to Temane Undertaken by SMRD Inhasorro Presidente de Local, Maimelane Local leaders, Temane Community members 21.02.02 RTG Meeting 25-27.02.02 Affected individuals Compensation payments Damage as a result of seismic exploration March 2002 Affected individuals Registrations Damage as a result of seismic exploration

3 DATE WHO CONSULTED ACTIVITY NOTES March 2002 Affected individuals Registrations Damage as a result of gas field activities 14.03.02 RTG Meeting 25.03.02 Mr Victorino Joaquim (MOPH) Meeting Discussion focussed on house plans for resettlement April 2002 Affected communities and Damage registration along the Compensation and individuals pipeline route commences Communications Team present in field to interact with people April 2002 Affected individuals Damage registration during seismic exploration April 2002 Affected individuals Registrations Damage as a result of gas field activities 03-04.04.02 Affected individuals Compensation payments Damage as a result of seismic exploration 03-05.02 Affected individuals Compensation payments Damage as a result of gas field activities 03-05.04.02 District Administrator, Field/site visit to Temane Undertaken by SMRD Inhasorro Presidente de Local, Maimelane Local leaders, Temane Community members 23-24.04.02 District Administrator, Field/site visit to Temane Undertaken by SMRD Inhasorro Presidente de Local, Maimelane Local leaders, Temane Community members 26.04.02 RTG Meeting May 2002 Potentially affected Baseline survey within PPZ homeowners May 2002 Affected individuals Registrations Damage as a result of gas field activities 06.05.02 Affected individuals Compensation payments Damage as a result of seismic exploration 06.05.02 RTG Meeting 15.05.02 RTG Meeting 21-24.05.02 Affected individuals Compensation payments Damage as a result of pipeline activities 30.05.02 Community Interface Forum Meeting Sasol, Foster Wheeler and GLMC (CIF) June 2002 Affected communities (GF and Field/site visits GOM representatives join the PL) Compensation Teams on a permanent basis June 2002 Affected communities (PL) Field/site visits GLMC appoint community liaison officer to interact in an on-going manner with potentially affected individuals and communities June 2002 Potentially affected Interviews Access road and PPZ homeowners (Gas Field) June 2002 Potentially affected individuals Interviews People living within 100m radius of (Gas Field) welihead site June 2002 Affected individuals Registrations Damage as a result of gas field activities

4 DATE WHO CONSULTED ACTIVITY NOTES 07-10.06.02 Community members Site visit (Pipeline and Gas Field) Undertaken by the World Bank, Local leaders accompanied by SMRD 19-21.06.02 Affected individuals Compensation payments Damage as a result of pipeline activities 29.06.02 - District Administrator, Field/site visit to Temane Undertaken by SMRD 05.07.02 Inhasorro Presidente de Local, Maimelane Local leaders, Temane Community members July 2002 Affected individuals Registrations Damage as a result of gas field activities 05.07.02 RTG Meeting 25.07.02 CIF Meeting August 2002 Affected individuals Registrations Damage as a result of gas field activities 08.08.02 CIF Meeting 15.08.02 RTG RAP discussion meeting 27-28.08.02 Community members along Field/site visit the pipeline route 29.08.02 RTG Meeting September 2002 Potentially affected Blue carding within the PPZ homeowners September 2002 Affected individuals Registrations Damage as a result of gas field activities 09.09.02 MICOA and Department of Meeting Discussions focussed on Public Works replacement housing 13.09.02 RTG Meeting 17-18.09.02 Affected individuals Compensation payments Damage as a result of pipeline activities October 2002 Affected homeowners (Gas Interviews Access road and PPZ Field) October 2002 Affected individuals Registrations Damage as a result of gas field activities 02.10.02 Affected individuals Compensation payments Damage as a result of seismic exploration 03.10.02 CIF Meeting 03.10.02 Affected individuals Compensation payments Damage as a result of pipeline activities 05.10.02 Affected individuals Compensation payments Damage as a result of seismic exploration 05.10.02 Affected individuals Compensation payments Damage as a result of pipeline activities 10.10.02 Affected people (PL) Interview Investigation undertaken as requested by affected individuals 11.10.02 GOM Meeting Discussions focussed on right of way utilisation 14-16.10.02 Presidente of the Local and Field/site visit to Temane Undertaken by SMRD, MICOA community members and the Department of Public Works 17.10.02 Community members Site visit Discussions with community members with regard to housing resettlement. November 2002 Affected homeowners (Gas Interviews Access road and PPZ Field)

5 DATE WHO CONSULTED ACTIVITY NOTES November 2002 - Affected individual (PL) Interview and meetings Investigation undertaken as present requested by affected individual November 2002 Affected individuals Registrations Damage as a result of gas field activities 09-11.12.02 District Administrator, Field/site visit to Temane Undertaken by SMRD Inhasorro Presidente de Local, Maimelane Local leaders, Temane Community members 14.11.02 Potentially affected Site visit to Ressano Garcia homeowners 21.11.02 Mr Samuel Rovicene Meeting (MADER) 21.11.02 CIF Meeting 25.11.02 RTG Meeting December 2002 Affected individuals Registrations Damage as a result of gas field activities 08- 10.01.03 Affected individuals Registrations at Manhice Damage as a result of gas field activities 09.01.03 Task Group Chairperson Meeting Discussed resettlement and compensation matters 20 - 22.01.03 Community leaders and Field/site visit to Temane Undertaken by SMRD affected individuals 20 - 24.01.03 Community leaders and Field visit to Temane Information dissemination affected individuals regarding the Seismic Replacement Tree Programme 29.01.03 Affected individuals Field payments at Manhice Undertaken by SMRD 31.01.03 Affected individuals Field visit to Chibuto Information dissemination 04.02.03 Task Group Meeting Scheduled meeting attended by S Booyens and A Potgieter 05.02.03 Affected individuals Field payments at Manhice Undertaken by SMRD 05.02.03 Affected individuals Site visit to Manhica Undertaken by S Booyens and A Potgieter 06.02.03 District Administrator and Meeting in Magude Attended by SMRD, GLMC and affected individuals ROMPCO and GOM representatives 10 - 14.02.03 Community leaders and Field/site visit and field payments Undertaken by SMRD and GTZ affected individuals at Temane 11.02.03 Govemment field Progress discussions Discussions between S Booyens, representatives S Rovicene, T Boaventura and E Cuna 12.02.03 Project Liaison Committee Meeting Scheduled meeting 19.02.03 Task Group and affected Site visit to Macaratane and areas Task Group site visit including individuals. Also, discussion north of the Limpopo River representatives of SMRD with Chefe de Posto of Chokwe 20.02.03 Task Group and affected Site visit to the area between Task Group site visit including individuals Macaratane, and the EN4 representatives of SMRD 03.03.03 Task Group Meeting Scheduled meeting attended by S Booyens 10.03.03 Affected people Site visit to Temane to monitor Undertaken by S Booyens progress with the construction of replacement houses 11.03.03 Affected individual Site visit to Funhalouro to monitor Undertaken by SMRD

6 DATE WHO CONSULTED ACTIVITY NOTES progress with replacement house construction 27.03.03 Affected individuals Field visit to Chibuto Undertaken by SMRD 27.03.03 District Administrator and Meeting at Magude Attended by SMRD and GLMC affected individual 31.03 - 01.04.03 Affected individuals Field visit to Guija and Chokwe Undertaken by SMRD 13.04.03 Affected individuals Site visit to Chokwe to monitor Undertaken by SMRD resettlement activities 08.04.03 Community leaders and Field payments at the gas field Undertaken by SMRD affected individuals 14.04.03 Local leaders, Temane Site visit to Temane to monitor Undertaken by S Booyens resettlement activities and discuss progress with local leaders 07.05.03 Administrator of Inhasorro and Site visit to Temane to monitor Undertaken by Z Qwemesha local leaders progress and to discuss resettlement with District Administrator and local leaders 24.04.03 Affected individuals Site visit to Temane to monitor Undertaken by SMRD resettlement activities 24.04.03 Affected individuals Site visit to Ressano Garcia Undertaken by SMRD 14.05.03 Affected people at Ressano Site visit and discussions Undertaken by Z Qwemesha Garcia 19.05.03 Local leaders, Temane Site visit to Temane to monitor Undertaken by S Booyens, A resettlement activities and discuss Potgieter and Z Qwemesha progress with local leaders 19 - 21.05.03 Affected individuals Field payments along pipeline Undertaken by SMRD route 21.05.03 District Administrator, Magude Meeting Undertaken by SMRD 29.05.03 Affected individuals Site visit and registrations at Undertaken by SMRD Ressano Garcia

7 EPCM Contractor camp and lay down area land requirements and procurement procedures

Camp Location Area Period of Previous land use Procurement Compensation Compensation (Kind) Rehabilitation No use and GLMC procedure (Cash) intervention Magude 16 ha (400 May 2002 - Virgin bush - no Use of land negotiated No compensation was Classrooms built at Rehabilitation will be (KP 430) m x 400 m). August 2003 houses or directly with the paid as the land was Magude. Levelled and undertaken as per the Fenced off machambas. landowner and the allocated in terms of a graded soccer fields. approved Environmental area is 300 Demining and bush contract attested with Government decree. Provided access over Management Plan. m x 300 m clearing occurred. the District Administrator The land has not been the Inkomati River at GLMC will leave the - balance No improvement in acquired permanently Moamba. Graded boreholes and equip acts as fire land in immediate and will be retumed on community access roads them with hand pumps break area of camps, project completion only within demined areas 2 Magandene 16 ha (400 October Virgin bush - no Use of land was No compensation was Graded community Rehabilitation will be (KP 570) m x 400 m). 2002 _ houses or requested directly from paid as the land was access roads undertaken as per the Fenced off September machambas. the District Administrator allocated in terms of a approved Environmental area is 300 2003 Demining and bush Govemment decree. Management Plan. m x 300 m clearing occurred. The land has not been GLMC will leave the - balance No improvement in acquired permanently boreholes and equip acts as fire land in immediate and will be retumed on them with hand pumps break area of camps, project completion only within demined areas 3 Funhalouro 16 ha (400 December Virgin bush - no Use of land was No compensation was Graded community Rehabilitation will be (KP 698) m x 400 m). 2002 - June houses or requested directly from paid as the land was access roads undertaken as per the Fenced off 2003 machambas. the Distnct Administrator allocated in terms of a approved Environmental area is 300 Demining and bush Govemment decree. Management Plan. m x 300 m dearing occurred. The land has not been GLMC will leave the - balance No improvement in acquired permanently boreholes and equip acts as fire land in immediate and will be retumed on them with hand pumps break area of camps, project completion only within demined areas 4 Mapinhane 16 ha (400 March 2003 Virgin bush - no Use of land was No compensation was Graded community Rehabilitation will be (KP 800) m x 400 m). - October houses or requested directly from paid as the land was access roads undertaken as per the Fenced off 2003 machambas. the Distnct Administrator allocated in terms of a approved Environmental area is 300 Demining and bush Government decree. Management Plan. m x 300 m clearing occurred. The land has not been GLMC will leave the - balance No improvement in acquired permanently boreholes and equip acts as fire land in immediate and will be retumed on them with hand pumps break area of camps, project completion only within demined areas NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

032 Sr Antonio Goulap Magude Allegedly lost 37 cattle GLMC, the DA Sr Goulap not legal CLOSED 3 October He sent a letter. due to broken fence of his and Sasol met land occupant. 2002 kraal. Also complained with Mr Goulap Damage to dip tank about damage to a dip on 27 March. DA payable to State. He tank. told Sr Goulap accepted the verdict, that he sold but said that he some cattle and would pursue the his cattle were claim through other not registered at institutions. the Dept. of Agriculture.

039 Work force Nova Request (not complaint) Favourably CLOSED 14 November Mambone for transport assistance Resolved by 2002 from contractor, to Nova Group Five. Mambone on pay weekends. There is daily transport to Vilankulos and Inhassoro. 040 Amir, GLMC Ressano Truck driver from Truck GLMC took the CLOSED 12 December Garcia border Africa blocked the border matter up with 2002 post post by refusing to park in Truck Africa. the truck lane with a load Similar events of pipes. will be avoided in future. 041 Sr Joao Lopes, a Property 1) Fence of his ranch See no 047. The size of the pond OPEN 121 days 20 December farmer. located at KP was damaged and he Agreed that must still be GLMC 2002 464+000 lost 37 cattle. GLMC will restore determined. Mr Monitor agreement D 2) Not satisfied with the an existing pond Lopes must state the reached between arrangement of instead of size in writing. parties. guards at the fence compensation for NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED. 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

entrance. 34 cattle. DA must see the pond and act as arbitrator. 3 Cows to be replaced, but price must be agreed.

042 Sr Ambrosio Maimelane Demining team (MMA) MMA will repair Sr Ambrosio to be OPEN 88 days 22 January Community Leader damaged a section of the the bridge to its informed. Foster Wheeler 2003 bridge that links Mabime, original state. F Chiphongo and Mungonze Communicated with Maimelane. to community. 043 Brian King Moamba and The activities of Sasol's GLMC repaired CLOSED 22 January Game reserve Sabie contractors damaged the the bridge in the 2003 operator in the bridge between Moamba presence of the Sabie area and Sabie. DA of Moamba and the District Director of Public Works. 044 Community Mbeve, Roads are constructed Public liaison Satisfied. CLOSED 27 January members Manhica through their properties officer explained 2003 without damage compensation compensation. They policy to them. threaten to disrupt truck SMRD made movement. arrangements for payment in week of 27 Jan 03. 045 Church leader Mbeve, Wants rental for use of Meeting with the Mr Lawal will inform CLOSED 27 January Manhica church premises for a church leader on the church leader 2003 temporary road. 18 March. that no rental is .______pay able.

2 NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

046 District Inhassoro A trainee group were Mr Louw handled Mr Lawal to give CLOSED 27 January Administrator (DA) brought in from Vilankulo with Adcorp. feedback to DA. 2003 during Dec 2002 for More people are urgent training. People being recruited should have come from from Inhassoro. Inhassoro. 047 District Magude Sr Joao Lopes is not Meeting was held OPEN 83 days 27 January Administrator (DA) satisfied with the manner with Sr Lopes, GLMC 2003 in which his complaint was DA, GLMC and Monitor agreement D resolved (see no 041) Sasol at Magude, reached between on 6/2/03. The parties. local chief was also involved. See 041. 048 Sr Mugumbe for Sr Chiziane Has not received damage SMRD is OPEN 82 days 28 January Antonio Rodriques area, compensation payment for investigating. SMRD 2003 de Almeda Chigubu loss of trees They could not Will be paid first D district reach him yet, week in April 2003. because he was in hospital. 049 Sr Antonio Joao Maimelane Has not received Compensation to CLOSED 28 February Mucavel compensation for tree be paid in April. 2003 losses: 8 Mango trees 2 Banana trees 3 Pawpaw trees 27 Casava plants 050 District Chokwe A truck driver caused GLMC will obtain OPEN 52 days 28 February Administrator damages to an electric quote for a new GLMC 2003 pole and a wall next to the pole. F government guesthouse. NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

051 Licenced diesel Chokwe Business is lost due to GLMC discussed CLOSED 28 February dealers illegal sale of diesel. The with Police 2003 truck drivers are Department and suspected. carrier on 4 March 2003. 052 District Funhalouro GLMC recruits people from GLMC decided to CLOSED 28 February Administrator Gaza instead of recruit 350 2003 Funhalouro. people from Funahlouro to replace the people from Gaza. 053 JFS Tobacco Farm Macarretane GLMC has not replaced GLMC replaced CLOSED 28 February management damaged irrigation pipes. pipes. 2003 054 Sasol observer EN4 main Truck drivers occupy GLMC discussed CLOSED 3 March 2003 route almost whole width of with carrier and road, forcing other road Police users to go off the road Department on 4 when passing. March 2003. 055 Town Council Manhissa Still waits for payment for P Bamard OPEN 49 days 3 March 2003 sand from borrow pits informed. P Bamard used for construction of Contractor to S Lawal D the road to the CPF. meet with Town Council. 056 Construction Fly camp Camp facilities are not as GLMC will CLOSED 3 March 2003 workers near Sabie good as those in camp 3. manage. River crossinq 057 Municipal council Chokwe Truck drivers parked along Sr Octavio of Everybody is happy CLOSED 3 March 2003 and community main road in Chokwe due Sasol met with with the members to heavy rain at the pipe the Council and arrangement. laydown areas of camps 2 negotiated a NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

and 3. dedicated temporary parking space for the trucks. 058 Management staff of Inhassoro, Discrimination against Mr Louw took up Situation was CLOSED 4 March 2003 Group 5 Vilankulo and certain management staff with Group 5 resolved. CPF members with regard to senior HR person housing. in South Africa. Some people were moved around. 059 Community Manhica and Rainwater accumulates at P Bamard OPEN 49 days 6 March 2003 along EN1 a construction diversion informed. P Bamard F main road road. 060 Community Manhica and Trucks damaged overhead Repaired. CLOSED 6 March 2003 along EN1 electric cables, leaving the main road community without electricity. 061 Community Manhica and Excavated soil still lies P Bamard OPEN 49 days 6 March 2003 along EN1 around. Needs to be informed. P Bamard G main road cleaned up. 062 Community Manhica and Truck drivers occupy GLMC discussed CLOSED 6 March 2003 along ENI almost whole width of with carrier and main road road, forcing other road Police users to go off the road Department on 4 when passing. March 2003. 063 Community Pande More people are recruited C Louw CLOSED 20 March 2003 for jobs from Temane discussed with than Pande. Adcorp and Sr Domingos. New trainees will come from Pande. NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

064 Mayor Vilankulo Project waste is disposed CPF will get own OPEN 20 March 2003 at the waste disposal site disposal site in a Foster Wheeler 37 days of Vilankulo, overloading few weeks. G the site. Municipal site will be cleaned. 065 Community Manhica Contractor did not pay Informed Piet OPEN 32 days 25 March 2003 them for work on the road Barnard. P Barnard C diversion. 066 District Simbie Community has no water GLMC will leave S Lawal informed DA CLOSED 25 March 2003 Administrator after GLMC closed Camp 1 electric pump on 25 March 2003. and removed the and Sasol will generator that powered donate the water pump. generator. 067 Provincial Chibuto Rehabilitation of bridge at Copy of letter to OPEN 32 days 25 March 2003 Environmental Dept. Chibuto was not done Piet Barnard and Maria Prinsloo F according to Prov. Env. Marja Prinsloo. Dept. prescriptions. 068 District Sovela Community is unhappy, Inform R Lawson OPEN 24 days 2 April 2003 Administrator of because the ROW cut and GLMC. R Lawson Macarretane across a water canal and A the water supply to the community is now impeded. 069 M G Zimba River Plastic spoons and Maria Prinsloo OPEN 24 days 2 April 2003 crossing. disposable food boxes are and Ron Lawson M Prinsloo G lying around. informed. 070 District Morrumbene, Person killed in road Police are Very concerned, OPEN 24 Days 2 April 2003 Administrator road accident, allegedly investigating, negative. Foster Wheeler H between T9 involving a contractor assisted by and vehicle. Driver did not Foster Wheeler. Inhassoro stop. 071 District Morrumbene, Person killed in road Police are Very concerned, OPEN 24 Days 2 April 2003 Administrator road accident, allegedly investigating, negative. Foster Wheeler H NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

between T9 involving a contractor assisted by and vehicle. Driver did not Foster Wheeler. Inhassoro stop. 072 Administrative Post Mapinhane Pedestrian knocked down Police are Very concerned, OPEN 24 Days 4 April 2003 by blue Ford Ranger 4X4 investigating. negative. Foster Wheeler H on 7 April 03, allegedly driven by a contractor. Driver did not stop. 073 District Funhalouro GLMC requested some 10 Days 14 April 2003 Administrator people to work in Camp 3, C but no people have been recruited and the camp is closing already. 074 Administrative Post Ressano Pipeline construction team 10 Days 14 April 2003 Garcia did not warn adjacent B communities and schools before blasting. It caused panic and concern. 075 Administrative Post Ressano Blasting on pipeline route 10 Days 14 April 2003 Garcia caused cracks in buildings, B especially at nearby school. 076 Administrative Post Ressano Construction vehicles use 10 Days 14 April 2003 Garcia premises of Chefe de B Posto as transport route. 077 Sr Massinge Temane Community needs were Refer to Social OPEN 4 Days 24 April 2003 identified regarding cattle Development E Temba Social Devt breeding, agricultural Committee. equipment, water boreholes and pumps and a road connecting Temane with Cometela. Nothing has been done so far. NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003_

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

078 SR Massinge Temane He lost farm land. New Refer to SMRD OPEN 4 Days 24 April 2003 farmland was given to Sarel Booyens D him, but it does not correspond with the hectares lost and the location is not as agreed. 079 Community Leader Moabsa Requested assistance Refer to Social OPEN 4 Days 24 April 2003 from Sasol for Development E Temba Soc Devt replacement of school roof Committee blown away by the recent cyclone. Community is very close to the pipeline.

Complaint Classification

A Water resources B ROW affecting properties and people C Labour related issues D Compensation payment E Transport of heavy equipment on roads F Damage to infrastructure G Environmental H Traffic accidents I Social development projects NATURAL GAS PROJECT COMPLAINTS REGISTER UPDATED: 28 April 2003 FOR 2003

Serial no Name of Community Complaint raised Action taken Community Status and Age & complainant & reaction responsible analysis date district person

9 Crop Valuation Calculation Method

ACER, together with representatives of the Provincial Directorate of Agriculture in Maputo, visited representatives from the Servicios Provinciais de Agricultura in Gaza and Inhambane Provinces as the Natural Gas Project has potential impacts across all three provinces, viz. Maputo, Gaza and Inhambane Provinces.

Annual crops

Most commonly, annual crops are valued by multiplying the yield (kg/hectare) by the prevailing retail market rate. However, it must be taken into account that the vast majority of areas affected are under subsistence cultivation (otherwise referred to as family sector), do not use paid labour and use a mixture of seed packages. Consequently, the real cost of production is difficult to calculate, especially as there are no data on production costs within the family sector.

Using income data from the National System of Aviso Previo do MADER and the cost of production as obtained from SIMA (National System of Prices) and averaging the values over the three provinces, compensation values were calculated.

In instances where data were not available for a specific province (not all provinces produced or have data on all the crops) use was made of data from that which were available. Also, where there were considerable variations in income, for example, crops such as rice and pineapples, it was decided to use only the yield and price data for the province with the maximum production, thereby avoiding potential problems with farmers receiving lower than normal values for the specific crop.

Tree crops

Due to the lack of yield data in all provinces and considering that most trees are more or less similar in age (over 20 years old), values based on age of the tree could not be applied. Evaluating the amounts paid as compensation for loss of tree crops by different projects, it was decided to adopt the 1999 values paid during resettlement associated with the establishment of the Beluluane Industrial Park.

Furthermore, for sugar cane and bananas it was decided to use the per leg (single plant) value. Also, for canhueira (Marula) it was agreed to pay for the trees in production. As previous projects did not value this tree in production a symbolic value was decided upon.

All unit values were originally done in Meticias, as detailed in the following table. Actual payments were rounded off to the nearest 10,000.00 Mts. Following a decision taken by the Joint Task Group in August 2001, unit tree crop values were increased by a factor of 60% (see table that follows). In October 2001, however, the Joint Task Group decided that a unit US dollar rate be assigned to each crop. These unit US dollar rates were rounded to the nearest US$ 0.50. At the time of payment, using the prevailing exchange rate, US dollars were converted to Meticais and this figure again rounded to the nearest 10,000.00 Mts (in order to facilitate easier cash payments). Crop /unit Maputo Gaza Inhambane Recommended Province Province Province Value (Mts) Value (Mts) Value (Mts) Value (Mts) Cashew /tree 849,000.00 Mango /tree 2,240,000.00 Natal Mahogany /tree 928,125.00 Orange /tree 1,260,000.00 Lemon/lime /tree 630,000.00 Eucalyptus /tree 700,000.00 Avocado /tree 800,000.00 Casuarina /tree 100,000.00 Paw paw /tree 10,000.00 Coconut /tree 849,000.00 Canhueira/Marula /tree 300,000.00 Maize /hectare 1,500,000.00 1,500,000.00 3,000,000.00 2,000,000.00 Peanuts/amendoim /hectare 7,650,000.00 7,050,000.00 6,600,000.00 7,125,000.00 Cow peas/feijao /hectare 2,700,000.00 2,950,000.00 1,900,000.00 2,515,000.00 Cassava /hectare 4,900,000.00 4,900,000.00 4,900,000.00 4,900,000.00 Rice /hectare 3,150,000.00 6,000,000.00 1325,000.00 6,000,000.00 Sweet /hectare 3,000,000.00 3,000,000.00 3,000,000.00 3,000,000.00 Sorghum (Mapira) /hectare 870,000.00 1,035,000.00 975,000.00 952,500.00 Sorghum (Mexoeira) /hectare 930,000.00 870,000.00 900,000.00 Pineapple /hectare 12,000,000.00 12,000,000.00 12,000,000.00 12,000,000.00 Pineapple /plant 335.00* Sugarcane /leg 1,000.00 1,000.00 1,000.00 1,000.00 Banana /leg 125,000.00 125,000.00 125,000.00 125,000.00 Basket of crops /hectare 5,000,000.00 5,000,000.00 5,000,000.00 5,000,000.00 Vegetables /m2 7,500.00 7,500.00 7,500.00 7,500.00 Garlic /m2 30,000.00 30,000.00 30,000.00 30,000.00 *Assuming 35,750 plants/hectare

It is important to note that for crops not listed, but found to be eligible for compensation, the relevant information is gathered and an informed decision is made with regard to a fair compensatable value. For example, where damage to a commercial tobacco field occurred, the affected company was requested to supply current yield and price information and using this a compensation value was determined.

For infrastructures such as irrigation pipes, kraals fencing, etc (referred to as agricultural infrastructure) current replacement values were assigned in addition to any labour costs, as necessary. In instances where livestock deaths occurred, current market prices for replacement were used.

Data sources:

* Crop yields. Sistema Nacional de Aviso Previo (1999). Crop Forecasting and Monitoring Unit, National Family. Early Warning System for Food Security, FAO-GCPS/Mozambique. * Prices. Quente-Quente (May, 2001): Informag5o Semenal de Mercado Agricolas no Pais, Regiao e Mundo, MADER-Direc9a de Economia-DPTO. Estatistica, Maputo.

* Consultations. Ms Tereza Boaventura (Provincial Directorate of Agriculture, Maputo). Mr Elias Cuna (Provincial Directorate of Agriculture, Maputo). Mr Paulo Munembwe (Servicios Provinciais de Agricultura, Gaza). Mr Mauricio Leonardo (Servicios Provinciais de Agricultura, Gaza). Mr Lopes Manuel Paruque (Servicios Provinciais de Agricultura, Inhambane). Mr Alfeu Come (Servicios Provinciais de Agricultura, Inhambane). Unit rate Increases and unit US$ rates as applied to crops affected by the Natural Gas Project

CROPS UNIT ORIGINAL 60% TOTAL TOTAL VALUE (Mts) INCREASE (Mts) REVISED REVISED VALUE (Mts) VALUE (US$)' Cajueiro/Cashew /tree 849,000.00 509,400.00 1,358,400.00 60.37 Mangueira/Mango /tree 2,240,000.00 1,344,000.00 3,584,000.00 159.29 Mafureira/Natal Mahogany /tree 928,125.00 556,875.00 1,485,000.00 66.00 Laranjeira/Orange /tree 1,260,000.00 756,000.00 2,016,000.00 89.60 Limoeiro/Lemon /tree 630,000.00 378,000.00 1,008,000.00 44.80 Abacateira/Avocado /tree 800,000.00 480,000.00 1,280,000.00 56.89 Papaeira/Pawpaw /tree 10,000.00 6,000.00 16,000.00 0.71 Coqueiro/Coconut /tree 849,000.00 509,400.00 1,358,400.00 60.37 Canhueiro/Marula /tree 300,000.00 180,000.00 480,000.00 21.33 Eucalipto/Eucalyptus /tree 700,000.00 420,000.00 1,120,000.00 49.78 Casuarina/Casuarina /tree 100,000.00 60,000.00 160,000.00 7.11 Milho/Maize /ha 2,000,000.00 N/A N/A 88.89 Amendoim /ha 7,125,000.00 N/A N/A 316.67 Feij>o-Nhemba/Cowpeas /ha 2,515,000.00 N/A N/A 111.78 Mandioca/Cassava /ha 4,900,000.00 N/A N/A 217.78 Arroz/Rice /ha 6,000,000.00 N/A N/A 266.67 Mapira/Sorghum /ha 952,500.00 N/A N/A 42.33 Mexoeira/Sorghum /ha 900,000.00 N/A N/A 40.00 Batata-doce/Sweet potato /ha 3,000,000.00 N/A N/A 133.33 *Anan>s/Pineapple /ha 12,000,000.00 N/A N/A 533.33 Pacote/Combination /ha 5,000,000.00 N/A N/A 222.22 Ananazeira/Pineapple fruit /fruit 335.00 N/A N/A 0.01 Cana-sacarina/Sugarcane /leg 1,000.00 N/A N/A 0.04 Bananeira/Banana /leg 125,000.00 N/A N/A 5.56

Horticolas W 7,500.00 N/A N/A 0.33 Alho/Garlic / i30,000.00 N/A N/A 1.33

'Exchange rate of 22,500.00 Meticais per 1US$, as at the 18' September 2001, Standard Totto Bank, Maputo, Mozambique. Compensation methodology for trees of economical importance (timber)

Forest species tree compensation was determined according to the table of current forestry concession in Mozambique, viz. Boletim da Rebublica, Terca-feira, 25" August 1998, 1 Serie-Number 33, 3rd Supplement. Using this decree and following confirmation from the Unidade Inventario Florestal, the table below, detailing compensation values applicable to timber trees, was compiled. Compensation values are applied in Meticais, but have been converted to US$ (using the standard rate) for the purposes of comparison in this RPIP only.

Local name Botanical name Common name Classification Value Value 3 3 (MtsIm ) (US$1m ) Chafuta Afzelia quanzensis Pod mahogany 1a 65,000.00 2.95 Mecrusse, Androstachys johnsanil Lebombo ironwood la 65,000.00 2.95 Cimbire Messasa Brachystegia spiciformis Msasa 3a 30,000.00 1.36 Chacate Guibourtia conjugata Kleinbastermopanie Precious 65,000.00 2.95 Nulo, Nunlu Balanites maughamui Torchwood, fakkelhout 1a 65,000.00 2.95 Pau preto, Chire Dalbergia melanoxylon Zebrawood, sebrahout Precious 65,000.00 2.95 Lunhane Albizzia brevifolha Bergralsdoring 1a 65,000.00 2.95 Sandalo Spirostachys Africana Tambotie Precious 65,000.00 2.95 Mondzo Combretum imberbe Leadwood, hardekool 38 30,000.00 1.36 Tingare Albizzia verzicolor Grootblaarvalsdoring 1a 65,000.00 2.95 Tsandjanhovo Pterocarpus lucens Doringkiat 18 65,000.00 2.95 Mbila Pterocarpus angolensis Kiat 1a 65,000.00 2.95 Nala Albizzio forbesti Breepeulvalsdoring 1i 65,000.00 2.95 Primary Level Secondary Level Tertiary Level Dossiers Original signed and completed registration sheets, claim receipts (where available) and payment receipts Dossiers labelled according to Cutlines 1, 3, 6, 7, 8, 9, 10, 11, cutline, for example, Cutline 70, 12, 13, 15, 16, 17, 18, 19, 20, Claims 1-50, and Cutline 70, 24, 31, 32, 33, 34, 35, 36, 37, Claims 51-113 38, 39, 43, 44, 45, 47, 48, 69, 69BGP and 70 CD Excel Spreadsheet Registered claimants, listed by name, including cutline reference, registration date, identification, photographic reference, GPS reading, location, community leaders and any notes Paid claimants, listed by name, including cutline reference, identification, photographic reference, payment date and amount paid __ _ Registration versus payment summary, provides a quick reference to who has not collected compensaton Crops register, details per claimant, crops lost and the associated compensatable value Photographs Photographic record of both registrations and payments