Alleged Trespassing and Unlawful Behaviour by Advasol/Ice Finance in Blombos area.

This report comes from Fritz Bekker and reads as follows:

SITUATION REPORT

Possible unlawful commencement of natural gas exploration by Ice Finance and/or its filial Advasol (Pty) Ltd.

A situation has transpired on 10 July 2010 pertaining to the possible unlawful commencement of the non-invasive gas exploration phase by Ice Finance, the holding company of Advasol (Pty) Ltd. This situation report aims to put this incident on record for distribution and to facilitate the coordination of follow-up activities.

Some of the local Stilbaai- and particularly the Blombos farmers including myself have been aware of the presence of two white males in a white Ford Ranger double cab bakkie with registration number YSP 242 GP over the last three weeks. Their modus operandi is to obtain entry to farms through unmanned open gates, commence with scientific measurements and claim to be looking for subterranean drought relief water when confronted. Most farmers then allow their presence as they promise feedback pertaining to the groundwater quality and depth, which is always useful to the farming community.

We started contacting a number of Blombos farmers to investigate this situation. Some of them reported that they found these two males on their properties busy with scientific measurements and one farmer reported that field measurements were made in association with two boats that came very close to the shore at Odendaalspunt (Blomboschfontein). He noted some communication between the boats and the land based surveyors in the said white double cab bakkie.

The white Ford Ranger double cab bakkie was spotted on the Blombos road on Thursday 8 July 2010 at 14:30. The registration number was taken and a search of the SAPS motor vehicle database showed that this vehicle is registered to: Ice Finance; 210 Anarand Avenue, Waterkloof Glen, Pretoria.

The two males driving this vehicle were found to reside at the Little Rock Guest House in Jongensfontein where they also store a large off-road trailer that is packed with geotechnical measurement equipment.

A friend and I followed them from this venue at approximately 8:00 on 10 July 2010 to the farm Melkhoutefontein 480/101, commonly known as Blikhuis, and allowed them some time to unpack their equipment. We then photographed the vehicle and the geotechnical survey equipment, taped the ensuing conversation and took a GPS reading of the locality where they were busy conducting their fieldwork.

Their spokesperson, a Johan Koekemoer, claimed to be investigating the presence of ground water for the farm owner, a Mr. Michaels. He stated on record that he was appointed by Mr. Michaels to perform a ground water survey. They immediately packed up their equipment and left the scene. We phoned the Stilbaai SAPS to ask them to investigate a case of trespassing.

Upon further investigation it was found that the property belongs to Mr. Moses Michaels, an 83-year-old retired schoolteacher from Melkhoutfontein. Discussions were also held with the owner of a neighbouring farm, Mrs. Ellie Saayman as well as one of her family members, a Mr. Nickolas Riddles. They stated that semi-permanent measurement equipment was set up on the property three weeks ago and that the two males made regular visits to this location over the last three weeks.

I subsequently located Mr. Michaels in Melkhoutfontein on the same day. He stated that he found these two males with the vehicle YSP 242 GP on his property nearly three weeks ago and refuted their claim that he appointed them to do any survey. They were busy with scientific measurements at the time when he found them with many thin wires that radiated over his farm road from a central position, preventing him from driving there. Mr. Koekemoer reportedly then stated that he was doing his PhD in the area and asked permission to continue at this location. Mr. Michaels allowed them to stay on, as he would also like more information on his ground water. He was promised some feedback by the end of that week, which never occurred.

I accompanied Mr. Michaels to the Stilbaai SAPS on the afternoon of 10 July. Mr. Michaels made a statement to the Police and laid a charge of trespassing against the two males in the vehicle with Ice Finance registration number YSP 242 GP. Mr. Michaels felt betrayed and indicated that these two males deceived him in order to use his property for scientific measurements that may not be related to his farms water supply. The Stilbaai SAPS subsequently took statements from Mr. Koekemoer and his colleague and is now investigating a charge of trespassing against them.

Mr. Koekemoer made a statement to the SAPS that they are employed by a Pretoria-based company with the name Richtray and their superviser is named Jaco with the cell number 076 222 1759. They initially also lied the Police in stating that they have been contracted by Mr. Michaels to perform a ground water survey on his farm.

I believe that there is a high probability that Ice Finance and/or Advasol (Pty) Ltd. deceived some gullible farm owners to commence with natural gas prospecting and reconnaissance operations under the facade of ground water investigations for drought relief that is intended to benefit them.

Meeting with PASA and Advasol regarding Oil and Gas Prospecting in Blombos area

See email correspondence below from Martin Coetzee, the Advocate who is legally representing some of the Blombos Conservancy members.

Here are edited highlights from his note:

Dear All

The purpose of this message is to update you on the meeting that I had today (Wednesday) with Advasol and PASA regarding the envisaged exploration right application in the Stilbaai and Struisbaai areas. The meeting was called by PASA and the objective was to address my request to Advasol for further particulars and to discuss the process forward.

The gist of the 2 hour meeting is as follows –

I was provided with some of the information that I requested (application, acceptance letter, exploration works programme and company structure). They however still refuse to disclose any information on the motivation for and objectives of the envisaged exploration and possible production in the areas under discussion, including particulars of any data compilation, desktop studies and satellite image processing and interpretation that, according to the Applicant was done during 2008 and 2009. Their argument is that there is simply no way that they are going to divulge information that may be used by other parties to embark on a similar process (A matter of excluding competition especially in light of the fact that Advasol sees this as a commercial venture)

It was acknowledged by PASA that Advasol would experience difficulty in providing locations for the envisaged drilling until the non-invasive process has been completed. It is for this reason that they, if the application is approved, would grant a “blanket” authorisation to explore (non-invasive) over the area indicated and to identify and locate the anticipated drilling holes, on the condition that prior to the drilling of any exploration hole Advasol will have to
Ø inform PASA of their intention to drill

Ø demarcate the drilling area and provide an environmental impact assessment in respect of the area; and

Ø deliver proof that the individual landowner concerned was consulted with and an agreement in this regard was entered into.

It was also confirmed that the EMP’s for exploration with regard to the areas of Infanta, De Hoop West, Mossel Bay West and Mossel Bay will be made available on Golder’s website Monday next. (Apparently the background information documents were already sent to interested and affected parties – I have not yet seen one, but I believe it should almost be carbon copies of the Struis – and Stilbaai ones).

On a more positive note PASA is in agreement that the public participation process leaves much to be desired (Golder blame a former consultant for this)

As a result it was agreed that an “open house” meeting will be held on 27 July in Stilbaai to which all registered interested parties will be invited. The format will be an informal session starting at 9:00 (looking at maps, reports etc) and then a formal presentation at 11:30. The objective is to attend to all questions persons may have and also to provide information required by the attendees to enable them to make an informed decision (sic). Notices in this regard will be sent out by the end of the week.

It was also agreed that a public participation meeting will be held in Cape Town (26th or 28th) for the benefit of all the Cape Town based landowners – the purpose will be the same as the Stilbaai one, without the informal part.

Finally it was agreed that, in order to enable us to properly do our research, consultations and reports, the final date upon which our submission must be submitted to PASA will be 18 August 2010. although Golder objected in that it would leave them no time to respond to our submission, they were overruled by PASA.

and that was it —

Meeting with Advasol

See email correspondence below from Martin Coetzee, the Advocate who is legally representing some of the Blombos Conservancy members.

He writes as follows:

The purpose of this communication is to provide you with some feedback of the meeting with Advasol/Golder on Friday, 25 June 2010.

I was accompanied by Jean Te Water Naude, Johan Bothma (Agri Western Cape) and Charl de Villiers (representing AWC)

Advasol was represented by two directors (Francois Roos and Gerrit van Wyk). Erika du Preez represented Golder.

The meeting lasted for almost two hours and quite frankly in my opinion presented the objectors with no more information apart from the very little already known.

As I was instructed it was recorded that this meeting was not to be regarded as a public participation meeting and as far as we were concerned its purpose was to obtain more information to enable the objectors to submit an informed response. It was also made clear that commenting on the generalised EMP would serve absolutely no purpose unless adequate information on the application and the applicant is provided.

It was very evident that Advasol is adamant in proceeding with this application. We were informed that a lot of funds have been utilised to obtain the latest state of the art equipment to carry out what is referred to as the non-invasive exploration. Advasol was however not prepared to divulge any more information on the exploration work program, the geology data available or results of desk top analysis, since it was “commercially sensitive”.

It was explained that Advasol has access to enough funds since they are a subsidiary of Ice Finance (Pty) Ltd (apparently a South African Investment Company). Advasol’s shareholders at this stage are , a company Crystal Exploration (Pty) Ltd, BL Masethla and the Trustees of the Mamphore Trust. On the question where then does Ice Finance fit in as holding company, it was deducted from the reply that it could possibly be the holding company of Crystal Exploration. Advasol was however not prepared to provide any information about financial ability.

It was also clear that Advasol/Golder would prefer to have one on one discussions with land owners to explain the process and what the impact of it all would be on the properties concerned. It certainly was my impression that the Stilbaai area could well be the epicentre of the exploration process.

Advasol had a problem with the instructions by PASA that an EMP for the drilling process be submitted, for the simple reason that they are not in a position to present any concrete information on the drilling without first having completed the non-invasive process.

Their attention was drawn to the fact that the application process could be technically deficient and that all legal requirements were not met. Their response was that they would then obtain a legal opinion in this regard. If there were deficiencies it will be rectified – even if they have to withdraw the application and immediately resubmit. Advasol was however of the opinion that if they do this, someone else would seize the opportunity and they certainly would choose not to lose the initiative gained thus far.

It was admitted by Advasol that they do not have exploration or production experience – they however have extensive experience and expertise in large scale commercial and residential land development projects. The envisaged exploration and research are new areas of enterprise in which they will be assisted by relevant experts, third party consultants including Golder’s appointed geological advisers, Geo-Consult International (Pty) Ltd. At this stage they are looking at a possible contractual relationship with, amongst others, leading specialist drilling contractors, such as Black Viper Energy Service Limited, a Texas based firm.

Regarding a request for more specific information on the directly affected properties it was merely stated that a wide area of potential interest has been identified for the purposes of the application in order to safeguard the commercially sensitivity and confidentiality of this project.

Their motivation for this exploration is that hydrocarbons/natural gases represent an alternative and less environmentally detrimental source of potential energy to power the country’s growing electrical needs than the current dependence on coal-based energy from Eskom. The potential footprint of any production facility that may be developed should the exploration initiatives prove commercially viable and technically feasible would be significantly smaller and less intrusive.

Apart from these mission statements no further and specific information can be divulged because of it being commercially sensitive and confidential.

Confronted with the biodiversity and conservancy nature of the area, their response was that they would refrain from any exploration in declared and registered conservancy areas or nature reserves. As far as they were concerned neither the Blombosch or Duiwehoks conservancy areas were registered or enjoy legislative protection. It is regarded as initiatives by land owners.

As far as I am concerned the meeting did not assist in any way in getting substantial information. Advasol however said that they would consider providing some documents requested, but will block out what they regard as commercially sensitive information.

Based upon the meeting it therefore is my opinion that PASA be approached and certain points emphasised –
Ø It simply is not possible to comment on an application et al that we are not privy to have had insight to. It certainly would be detracting from all affected parties’ rights if they were not afforded a reasonable opportunity to consider and comment on matters that affect their rights;

Ø A “deadline” of 2 July 2010 is to say the least, ridiculous. PASA should indicate a reasonable time to comment after being provided with the information requested

Ø The consultation process was and is a farce – it would appear that it is being rushed and only superficial and inadequate information is provided.

I will be drafting a communication in this regard to PASA – in my opinion PASA’s role is not to accommodate the applicant, but a public service where the rights of the public and especially the affected land owners should be upheld at all times.

I also have had extensive discussions with Dr De Ville Wincker, an expert petroleum exploration geologist who has worked for thirty years in this field and who has written extensively on the hydrocarbon geology in especially the Riversdale area – his concern is that the Applicant provides no geological basis for their application and as far as he is concerned, documented data indicates that the possibility of finding natural gases in the areas applied for is negligent.

It is trusted that the above would provide some further insight into what all land owners are being confronted with.

Will keep you posted on further developments.

Regards

Martin