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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> Suffolk Energy Action Solutions SPV Ltd, R. (On the Application Of) v The Secretary of State for Business, Energy and Industrial Strategy [2022] EWHC 2623 (Admin) (06 October 2022) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2022/2623.html Cite as: [2022] EWHC 2623 (Admin) |
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KING'S BENCH DIVISION
ADMINISTRATIVE COURT
PLANNING COURT
B e f o r e :
B E T W E E N :
____________________
THE KING on the application of SUFFOLK ENERGY ACTION SOLUTIONS SPV LIMITED |
Claimant |
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- and - |
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THE SECRETARY OF STATE FOR BUSINESS, ENERGY AND INDUSTRIAL STRATEGY |
Defendant |
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- and - |
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(1) EAST ANGLIA ONE NORTH LIMITED (2) EAST ANGLIA TWO LIMITED |
Interested Parties |
____________________
MR M WESTMORELAND SMITH and MR J WELCH (instructed by the Government Legal Department) appeared on behalf of the Defendant.
MR H PHILLPOT KC and MR H FLANAGAN (instructed by Shepherd Wedderburn LLP) appeared on behalf of the Interested Parties.
____________________
Crown Copyright ©
MR JUSTICE LANE:
"The effect of these clauses has been profound. Virtually no landowner has turned up to give evidence to the Authority whether in relation to their own land or in relation to the application more broadly.
This has meant that on a wide range of really important issues SPR [the interested parties] has managed to prevent relevant evidence coming forward. This covers matters such as offshore turbines, the landing of the cables on-shore on the fragile Suffolk coast, the impact of the many miles of corridor that will be built to bring the cable inland and the enormous and damaging impact on the ancient village of Friston where vast substations, each almost as big as Wembley Stadium, will be built. The suppressed evidence could cover such varied matters as tourism, harm to the environment and to wildlife, noise and sound pollution, traffic, mental health and employment.
The landowners who are subject to compulsory purchase and to SPR's gagging system represent those who are most directly affected by this huge development. As a class they could have given vitally important evidence to the Authority. Their voices have been silenced."
"Initial Analysis
- Need
Planning Issues: Onshore
- Flooding and Drainage
- Landscapes and Visual Amenity
- Onshore Historic Environment
- Seascapes
- Onshore Ecology
- Coastal Processes
- Onshore Water Quality & Resources
- Noise, Nuisance and Health Effects
- Transport & Traffic
- Socio-economic Effects Onshore
- Land Use
- Other Onshore Matters
Planning Issues: Offshore
- Offshore Ornithology
- Marine Mammals
- Other Offshore Biodiversity Effects
- Marine Physical Effects and Water Quality
- Offshore Historic Environment
- Offshore Socio-economic and Other Effects.
Habitats, Overarching Analysis, Compulsory Acquisition, Temporary Possession and Development Consent Considerations.
- Habitats Regulations Assessment
- Alternative and Site Selection
- Good Design
- Compulsory Acquisition and Related Matters
- The Draft Development Consent Order and Related Matters."
"The Use of Non-Disclosure Agreements
26.29 This issue has been cited by the ExA in the objection of Dr Alexander Gimson and Tessa Wojtczak, but the ExA provides no further detail in its Report.
26.30 A submission was made to the Secretary of State by SEAS [the claimant] on 30 November 2021 setting out detailed concerns. The Applicant responded to these concerns on 31 January 2022 as part of its representation to the Secretary of State's second round of post-examination consultation.
26.31 In brief, concerns were raised that parties entering into an agreement with Scottish Power Renewables for the voluntary acquisition of land or rights in it were being required to sign Non-Disclosure Agreements that prevented these parties from participating in the examination and that consequently the ExA was not getting a clear picture of the strength of objection to the two Proposed Developments.
26.32 The Secretary of State has considered the representations of both SEAS and the Applicant carefully due to the important issues that they raise about the conduct of the Examination and the rights of all affected parties to have a fair hearing. Having also reviewed the totality of the ExA's Report the Secretary of State considers that all relevant issues were raised and explored in the Examination and that he has the necessary information to enable him to make a decision."
"22. The Secretary of State will, of course, comply with the duty of candour which requires the Secretary of State to ensure that you and the Court are aware of how the decision was taken and why and ensure that all the cards are face up on the table. We set out below the facts relating to how the decision was taken, as instructed to us by our client.
23. Shortly after receiving ExA's Report, SEAS sent two lengthy submissions to the Secretary of State which set out their concerns in relation to the use of what it described as non-disclosure agreements.
24. The BEIS team dealing with the application at the Department identified that this issue had not been addressed in the ExA's Report and that it ought to be addressed by the Secretary of State.
25. The provision of information by Scottish Power Renewables at Appendix 1 in its response to the Secretary of State's Questions of 20th December 2021, provided the Department with a substantive response to the concerns raised by SEAS. This response highlighted that many landowners and Affected Persons submitted Relevant Representations and that none of these were withdrawn during the course of the Examination (paragraph 10), the explanation of how the Option Agreements would operate, the approach taken by the Applicants to Dr Gimson's concerns, that no Option Agreements had been entered to, the non-binding nature of the Heads of Terms (paragraph 13 to 16), and that the Applicant did not seek to have the SEAS evidence removed (paragraph 23).
26. The Department considered whether, in light of the concerns, further consultation would be helpful but concluded that given the number of Affected Persons that participated in the Examination, it would not be likely to elicit new information and, further, in any event, concluded that the information before the Secretary of State was adequate and there were no particular areas or issues on which further information was required.
27. On this basis the Department was satisfied that it had sufficient information in order to determine the application and, in relation to the issue raised by SEAS, to be confident that no party was deprived of a fair hearing or that information existed that might have influenced the outcome of the decision but was not before the Secretary of State.
28. The Secretary of State accepted that advice which was given through the provision of draft decision letters which addressed this issue in the same terms as the published decision letter."
"77. SEAS commissioned a report from an expert ecologist, who was of the view that, notwithstanding the access issue, the unusual lack of input during the examination from landowners about species on their land may have prevented a true picture of the ecological impact of the development. In the ecologist's view:
'I start by expressing my surprise at the dearth of evidence that has been submitted and considered by the Authority in relation to biodiversity matters…If the applications are consented, it will adversely affect the land of a large number of landowners and have adverse ecological effects upon land owned by these parties. In an inquiry of this sort, it would be normal for affected landowners to have submitted evidence, and especially expert evidence, setting out the ecological harm that the SPR projects could cause. No such evidence has been submitted. One effect of this is that there is far less evidence available than I would have expected to be able to weigh against the position of SPR'."
"12. I made a number of representations in writing and at hearings to the ExA on behalf of my mother beginning with written representations of 16 November 2020 and on behalf of the Trust on 28 October 2020 and later during January 2021. During the Examination, I explained to the ExA that SPR wished to have access to my mother, Mrs Gimson's, land to conduct certain tests and possibly lay trench cables. These submissions all included mention of the threat posed by the applications to the water supply and to the charity. It was my evidence, supported by that of my fellow trustees, that, if the applications were consented, they posed an 'existential' threat to the Charity. One issue, amongst many, that I raised concerned the impact of SPR landing cables on the fragile cliffs very close to the Trust and the risks to the water aquifers through which SPR intended to undertake Horizontal Directional Drilling.
13. The issue of the potential damage to the aquifer, through which the drilling would pass and which supplied water to five properties at Ness House including Wardens Trust, was first raised in detail in my submissions in October and November 2020. This is a demonstration of the impact that landowner's information might have made to the Examination, because it shows the fact that my submissions for the Trust and on behalf of my mother were the first to describe, in submissions in October and November 2020 and January and February 2021, the presence of the aquifer that the drilling would traverse. The fact that SPR were not aware of the aquifer and the well head at Ness House is demonstrated by an email from Mr Richard Morris to me on 15 February 2021, asking for technical details about the well, including the depth from ground to water level and to the bottom of the well. I supplied this information on 16 February 2021. The fact that the potential impact of the proposed development on the activities of the Trust was also not appreciated by SPR before it was raised in my submissions of October 2020 is demonstrated by the first email communication from Mr Richard Morris, Senior Project Manager at SPR, to the Trust on 26 January 2021.
14. If I had been prevented from raising these issues consequent on a non-disclosure agreement, the potential development might have proceeded without considering the substance of those two crucial issues. I am aware that a couple who live at one of the cottages at Ness House gave evidence in 2020 which mentioned the Trust and the aquifer. However, that issue was not reacted to by SPR at the time, and the couple did not have the same specialist knowledge about the well head, such as the depth of the water, nor the same level of insight about the Trust as I did. Therefore, I was best placed to give the ExA the full picture."
"Concluding remarks
29. If I had been prevented from speaking out about the potential impact of the cable route on the integrity of the aquifer supplying water to 5 houses and a Charity, such information and all the data from subsequent boreholes would not have been available to the ExA in the detailed form I presented it. It is clear to me, therefore, that any similar agreements entered into with SPR by other landowners or APs would have had the same non-disclosure agreement clauses. This therefore means, as a consequence, that a similar risk that relevant information or issues, which might have had a material impact on SPR's case and the ExA's assessment of the development as well as that of the Secretary of State, would not have been made public and would not have been taken into account by the ExA and decision-maker."
Ground 1: The defendant failed to consider the practical impact of the agreements on his evaluation of the wider planning merits as opposed to merely issues concerning compulsory acquisition. He also misdirected himself that the issues fall only on compulsory acquisition and not on the planning merits.
Ground 2: This argues that the defendant did not address his mind to the fact that the environmental information before him was, it is said, essentially devoid of information which might have come from the most obvious source, namely affected landowners and people that they might let onto their land in order to assess and report on its features. The claimant says that in this regard Lang J, in refusing permission, effectively reversed the burden of proof by saying that the claimant had not identified any specific issues material to the decision which were not assessed and considered.
Ground 3: asserts that the defendant particularly failed to address the fact that where landowners, who had refused to entertain the proposed agreements with the interested parties, had given evidence to the examining authority, relevant material had in fact come forward. In this regard, the claimant places particular emphasis on the witness statement of Dr Gimson.
Ground 4: states that the defendant failed to consider the potential effects of the distortion caused by the conduct of the interested parties on the paramount public interest within the decision-making process. The claimant says it was wrong for Lang J, in refusing permission, to conclude it was sufficient that the defendant had raised this issue. The defendant, the claimant says, could not conclude that he had the necessary information to make a lawful decision. The defendant failed to recognise the implications of the agreements and the resulting suppression of evidence relevant to the planning merits, such as environmental information. The defendant did not, in short, grapple with this issue.
Ground 5: argues that the defendant similarly failed to investigate, in the context of the examining authority's inquisitorial role, and assess matters based on full information; that is, all the information that could reasonably have come forward without the distorting effects of the agreements between the interested persons and the landowners.
Ground 6: asserts that the defendant needed to enquire into the potential distorting effects, including the possibility that evidence would not have come forward that otherwise might have done. Lang J, in refusing permission, said there was no evidence of distortion. Mr Wolfe says this is wrong. The claimant had put forward evidence of distortion.
Ground 7: argues that the defendant failed to proceed on the basis of a complete and lawful environmental impact assessment process, which must be taken to include freely and properly available information from the affected persons and community groups and NGOs.
Ground 8: also concerns an alleged failure concerned with the environmental impact assessment regime. Contrary to what Lang J said, in refusing permission, the claimant contends it is no answer to say that it is for the planning decision-maker to decide whether the requirements of the EIA regime have been met.
Ground 9: asserts that the defendant failed to consider whether the approach adopted by the interested parties went beyond the purpose of seeking negotiated settlements with landowners in the context of what the claimant describes as "normal CPO proceedings", as compared with such negotiations with affected persons, in the context of the Planning Act 2008, where the acceptability of the project in planning terms is still in issue and where any negotiations need to allow the affected person freely to object to the project.
Ground 10: argues that the defendant failed even to grapple with the issues raised by the claimant, let alone give reasons for rejecting their claim. Again, it is said that the defendant missed the point being made by the claimant when the defendant focused on whether he had sufficient information before him.
DISCUSSION
"… we can see no valid objection on grounds of public policy to a covenant whereby a party to a commercial transaction involving the disposition of land undertakes to support, and to refrain from opposing, planning applications by the other party for the development of the land. Such covenants are commonplace."
"13. In representations dated the 14th February 2021 …, SEAS made claims about a condition in the draft Option Agreement which required the party entering the Option Agreement to withdraw any objection that had already been submitted and not to submit further objections. This type of clause is standard in circumstances where the landowner's interests have been fully protected in terms of the relevant Option Agreement and that they have voluntarily agreed to enter that Option for a long-term contract with the counterparty. It is recognised in the RICS guidance that such terms are likely to be included in this type of Option Agreement.
14. The SEAS complaint did not, however, disclose that Dr Gimson had instructed his agents to contact the Applicants' land agents to discuss the specifics of that clause. He had advised that he wished to continue making representations on behalf of the land interest that he represented in the Examinations. The Applicants' land agents took instructions from the Applicants and confirmed that the Applicants were happy to propose a variation of the particular contractual term to allow Dr Gimson to continue to make his representations. Against that background, the SEAS complaint did not contain the full details of the discussions with Dr Gimson and therefore did not put the full evidence before the Examinations.
15. After the SEAS complaint, some SEAS supporters lodged claims before the Examinations that they knew parties who had signed Option Agreements and taken payments, and now regretted it. This could not have been accurate as, at that time, no Option Agreements had been entered into and no option payments had been made to any landowner.
16. Against that background, the SEAS complaints then moved on to attacking what is known as the Heads of Terms. This is a document which is generally negotiated between land agents before the negotiation of the Option Agreement and which set out the intended commercial terms of that Option Agreement. The Heads of Terms are then passed to Solicitors to negotiate the detailed drafting of the Option Agreement. Again, this is referenced in the RICS guidance on such contracts and the recommendation is that on the front page there should be a statement on them that "they are subject to contract". That is exactly what the various Heads of Terms that the Applicants have used state. The Applicants' do not consider the Heads of Terms to be legally binding and that they represent the starting point of the further negotiation that requires to be held. This is how they have been treated by the parties in the process. Again, SEAS have mischaracterised the nature and character of these documents.
17. Furthermore, the specific Heads of Terms example used by SEAS in their Deadline 8 submission … was one which actually demonstrated the value of the process as the Heads of Terms were fully bespoke to one individual land-holding and, indeed, the Heads of Terms had been negotiated between agents over an extensive period of time. There had been no less than 4 drafts."
"58. Planning permission for development under the TCPA 1990 is not sought by acquiring authorities … but by developers (or sometimes local authorities as developers) and is a separate process to that of any CPO which can only be sought by an AA with statutory powers.
59. In addition, an essential part of justifying a CPO (not DCO …) is showing there is no planning impediment. Land ownership is not a pre-requisite to planning permission. To that end, whilst negotiations for land purchase by a developer can take place at any time, the 'threat' of compulsory purchase as part of that process is only forceful once planning permission has been separately obtained.
60. In contrast, under the PA2008 regime, the developer applicant and the AA are the same person, so threat of CA can be made immediately under the Order powers. That matters, because a landowner who wants to object to a DCO coming forward in planning terms in the first place (as opposed to objecting on CA reasons) may 'lose' that opportunity on the basis that he is asked to accept in effect that that decision has already been made (when it has not) and forego a right to object. That flows from the 'one stop shop' of the DCO process, but does not render such practice lawful, where it has the effect as identified in this claim. The PA2008 grants considerable powers to a private developer, whereas in the CPO process the developer is not the same person in fact or in law as the AA. The potential, therefore, for land purchase agreements, such as the ones the IPs sought, has clear potential under the DCO regime to suppress evidence that is relevant to the 'planning permission' part of the DCO as happened here."
"25. Applicants should seek to acquire land by negotiation wherever practicable. As a general rule, authority to acquire land compulsorily should only be sought as part of an order granting development consent if attempts to acquire by agreement fail."
MR WESTMORELAND SMITH: I am grateful, my Lord. Lang J made an order in relation to costs.
MR JUSTICE LANE: Yes.
MR WESTMORELAND SMITH: (Inaudible) it was an Aarhus claim and awarded £10,000 to the defendant.
MR JUSTICE LANE: But nothing to the interested party.
MR WESTMORELAND SMITH: Nothing to the interested party. And I would just ask you to affirm that order and make the same order.
MR JUSTICE LANE: Do I need to affirm it?
MR WESTMORELAND SMITH: Well, there is no-- there is nothing in the Lang J order that says it is a final order unless submissions are made, so-- which it usually does, so----
MR JUSTICE LANE: Well, you will no doubt formally draw up an order for my approval and if you wish to say in it that Lang J's order is to stand, then you may. We could have a debate about whether that is necessary but I do not think there is anything that turns on that.
MR WESTMORELAND SMITH: My Lord, I am grateful.
MR JUSTICE LANE: Thank you.