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REF 93 - Lease of Hunterston Construction Yard

Request

1. Have the tenants under the lease or their representatives raised with Crown Estate Scotland the possibility of the terms of the lease being varied in writing to permit the decommissioning of large marine related structures?

2. If so, have the terms of the lease been so varied?

3. Have the terms of the lease been varied in any other respect since the lease was executed, or has the possibility of such variation been raised with Crown Estate Scotland?

4. If any such variations mentioned in questions 2 and 3 have been registered in any of the public registers (eg the Register of Sasines, The Land Register or The Books of Council and Session) please let me know the registration dates. If not, what is the precise wording of all such variations?

5. If not already raised with them, how would Crown Estate Scotland respond to a request for the lease to be varied to permit the decommissioning of large marine related structures?

Response

1. Yes, the 1988 lease was varied in 1998 to allow for decommissioning work (refer to Paragraph 1.8 in document AY-5-9_1998 MoV_Redacted)

2. Refer to response 1.

3. Yes, the lease was varied again in 1989 (refer to document AY-5-9_1989 MoV_Redacted) and 1994 (refer to document AY-5-9_1994 MoV_Redacted).

4. Refer to the enclosed Minutes of Variation (dated 1989, 1994, and 1998) for precise wording. We have no information as to if these variations have been registered.

5. The 1988 Lease has already been varied to this effect, see previous answers. In general, Leases are varied by putting in place Minutes of Variation between the parties e.g. the Minute of Variation in 1998 (enclosed).

The redactions highlighted in ‘blue’ within AY-5-9_1989 MoV_Redacted, AY-5-9_1998 MoV_Redacted and AY-5-9_1994 MoV_Redacted is considered personal data under the Data Protection Act (2018); therefore, exception 11(2) in EIRs is applied.

The redactions highlighted in ‘red’ within AY-5-9_1989 MoV_Redacted and AY-5-9_1998 MoV_Redacted are applied under Regulation 10(5)(e) – “Confidentiality of commercial or industrial information”. The reasoning is because it is in the public interest that Crown Estate Scotland (Interim Management) is able to operate in a commercially competitive manner. This is because the annual revenue profit is paid to the Scottish Government for the benefit of the public and disclosing commercially sensitive information could adversely affect the ability to get ‘best consideration’ for transactions as required under the Crown Estate Act 1961.

Copies of Minute of Variations of Lease