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3 July 2009

COMPENSATION OFFERS TO PIPELINE LANDOWNERS

Compensation payments to landowners impacted by the Sugarloaf Pipeline are continuing to roll out along its 70 kilometre length.

Melbourne Water Project Director Rod Clifford said offers totalling nearly $1 million have so far been made for easements on private properties.

An easement is an interest in land which gives utility companies like Melbourne Water the ability to operate and maintain infrastructure after it is built. The pipeline easement is about 15 metres wide.

"Compensation offers have been made under the Land Acquisition and Compensation Act for easements acquired for continued operation and maintenance of the pipeline."

"In addition to compensation for easements, more than $90,000 has been paid under the Water Act for loss of agricultural production as a direct consequence of entering land and constructing the pipeline," Mr Clifford said.

Mr Clifford said the payments offered to landowners are determined independently by the Valuer General's Office and an independent Agricultural Adviser. Landowners who are unsatisfied with the compensation are able to make further claims.

"Compensation amounts do vary, but a typical dry land grazing property might receive easement acquisition compensation in the tens of thousands of dollars."

Mr Clifford said Melbourne Water was required to follow strict procedures before entering properties and every effort was being made to work with landowners to reduce the project's impact.

"These procedures ensure we don't stay any longer than necessary, cause as little inconvenience as possible and leave the land as close as possible to its original condition.

"We recognise building the pipeline impacts many landowners, which is why we have been working with them to ensure they are fairly compensated."

More than 80 percent of the 70 kilometre-long pipeline has now been laid and construction of the two pump stations is well under way.

Reinstatement in the Toolangi State Forest and the Glenburn area is underway.

The Sugarloaf Pipeline Alliance continues to work constructively with local landowners, residents and community groups.

The project remains on budget and ahead of schedule.

Media Contact: Denise Hurley on +613 9727 8405 or +61 (0)437 359 400