The participants of the Foundation for the Valuation of Earthquakes in Groningen (WAG) gave the green light at the annual meeting this evening to end the legal proceedings against NAM. The company, whose head office is in Assen, will pay 1.8 million euros in return. Since 2013, the process has cost about 3.7 million euros.
After more than eight years, the decision puts an end to the mass claim intended to compensate for the depreciation of homes. Homeowners from the earthquake area in Groningen are united in Stichting WAG, who are struggling with the depreciation of real estate as a result of the earthquakes caused by gas drilling. WAG currently has 1340 members. Until two years ago, about 4750 people took part in the mass claim.
Dozens of people left the Hoeksteenkerk in Middelstum early tonight, where the closed annual meeting took place. Some of them said they had heard enough and described the atmosphere as ‘not cozy’ and ‘heated’. Others believe that the WAG Foundation ‘capitulates’ by agreeing to the 1.8 million euros from NAM.
However, the feeling that lingers with these participants is that they have their backs against the wall and therefore have no other choice but to agree to the proposal to stop. However, a majority of the participants can live with the choice and walk out of the church with a shrug, but not before the board received a big round of applause.
The board does not want to comment on the amount that NAM pays to the WAG Foundation, but several homeowners confirm that it concerns 1.8 million euros. In total, the process cost 3.7 million euros, of which 2 million euros is still outstanding. With the 1.8 million euros, almost the entire gap can be closed. Weegenaar: “We have agreed with NAM that we will keep that to ourselves.”
Weegenaar says that he received the most criticism for paying the success fee. When a value decrease is awarded, WAG participants must pay a percentage to the foundation. “People say: why do we have to pay if you end the business? But without WAG there would be no value reduction scheme at the Groningen Mining Damage Institute.”
The board also expects to be able to repay a quarter of that success fee to the participants at the end of the ride, because they expect to have a positive balance. “That is unique at home and abroad.”
In the invitation to the annual meeting of the foundation, the intention to stop was already revealed by the board last week. It was therefore extra important that as many participants as possible came to the meeting in Middelstum, the WAG Foundation said. In total, about 700 of the approximately 1,350 remaining members responded.