Legal tensions have escalated between SOLA Group and JSE-GENTEND helium producer Renergen, because each party claims rights on land that is currently under development for the 150-megawatt Springbok Solar Power Plant.
Renergen, with its Virginia Gas project that includes the production rights of 187,000 hectares of gas fields in Welcome, Virginia and Thunissen, in the Free State, in the Free State, yesterday expressed their concern about what it claims the unauthorized construction of the sun facility by Springbok Solar for future Natuur Gasasing.
Sola, developer of the Springbok project in Virginia, Free State Province, yesterday claimed that the company has followed all legal procedures and has obtained the necessary permits for the construction of the Sun Practory.
Renergen, which since 2012 has a valid Onshore petroleum production under the Mineral and Petroleum Resources Development Act (MPRDA), said Springbok Solar started his project without obtaining the required permissions under section 53 of the MPRDA.
“In a serious attempt to force the company to grant them such permission, the company noted a non -related appeal on aspects of the law of production by Springbok Solar Solar, which have no influence on the case for the case.
According to Renergen, the law requires that new developments within a legal area of ​​petroleum production protect the permission of the production holder and establish a co-existency agreement to guarantee operational harmony.
CEO Stefano Marani said that Reernergene supported renewable energy, but although the helium producer has set up successful partnerships with other solar developers in the region, the construction of Springbok Solar continued without taking into account the rights or legal provisions of Renergen.
Marani said: “We are meaningfully involved in many other solar developers in the area, where no compensation is needed based on the fact that they design their installations around our gas support structures and have good relationships with all.”
However, he said that in the case of Springbok Solar Project, the construction started without the earlier permission of Renergen or a co-existence agreement.
Renergen said it will continue to pursue a legal resolution to protect its access rights under the MPRDA, while maintaining the interests of all stakeholders.
SOLA argues, however, that it consulted extensively with Reernergene before construction. “Springbok Solar Power Plant (Springbok) has obtained all the necessary legal authorizations. Since April 2022 we have provided riders of the factory and consulted more than ten times, including personal meetings, to tackle possible objections in connection with the layout of the facility,” Sola said.
According to SOLA, the country that has been designated for the solar project do not overlap with gas or mineral production activities that are set out in the publicly available prospecting or production plans of Renergen.
Sola claims that Renergene has only increased objections after a few months of construction, and then issued letters that had issued layout changes, compensation and a stop to construction. Sola further claims that the claim of ridges on helium rights can be illegal and as a result it has filed an appeal against a change in the Product Right of Renergen, which Sola claims to have been obtained by a material wrong representation of things.
Sola said that Springbok Solar intends to continue with the necessary legal processes as the dispute unfolds, but was open to structural involvement.
Despite the legal dispute, the share price of Renergen was 1.48% higher on R9.60 at 5.05 pm yesterday.
Business report
Philippa Larkin
businessreport.co.za