National Grid 2008 Annual Report Download - page 12

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 64779
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: 20-F, Doc: 1, Page: 6
4/4006.00.00.00Y59930BNY
[A/E] EDGAR 2 *Y59930/006/4*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 64779
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: 20-F, Doc: 1, Page: 6
4/4006.00.00.00Y59930BNY
[A/E] EDGAR 2 *Y59930/006/4*
Table of Contents
The information set forth under the headings “Operating and Financial Review” on pages 14 to 73, “Note 37
Subsidiary undertakings, joint ventures and associates” on page 172, and “Definitions and glossary of terms” on
pages 186 to 188 of the Company’s Annual Report and Accounts 2007/08 contained in Exhibit 15.1 is incorporated
herein by reference.
Property, plant and equipment
United Kingdom
Our corporate centre operates principally from offices at 1-3 Strand, London. These offices, of approximately
25,000 square feet, are held on a 15-year lease from 24 June 2002. At present, environmental issues are not
preventing the businesses from utilising any material operating assets in the course of their business.
UK electricity and gas transmission. We own the freehold of the majority of all sites associated with our UK
electricity and gas transmission business in England and Wales. The remainder are held on long-term leaseholds,
including all the transmission offtake sites in the service areas of the UK gas distribution networks sold on 1 June
2005. In Scotland, we own the majority of our gas transmission sites outright through a disposition purchase. The
remainder are owned through a feudal disposition where purchase was subject to various rights retained by the
previous owner, for example mineral or forestry rights. In addition, we have three principal commercial lettings, at St
Fergus to Royal Dutch Shell and Exxon Mobil, and at Theddlethorpe (in England) to ConocoPhillips. The electricity
transmission business does not own any sites in Scotland.
Our gas transmission network comprises approximately 4,600 miles (approx 7,400 kilometers) of high pressure
transmission pipelines. Agreements with landowners or occupiers are only required for those pipes that cross private
land. These agreements largely comprise perpetual easements in England and Wales and deeds of servitude in
Scotland. Any land issues impacting on normal agricultural activity local to pipelines and their associated easement
or servitude are covered by national agreements with the National Farmers Union, the Country Land and Business
Association of England and Wales and the Scottish Landowners Association.
Our electricity transmission systems consists of overhead transmission lines and underground cable of
approximately 4,900 miles (approx. 7,200 kilometers of overhead transmission lines and 675 kilometers of
underground cable). Agreements with landowners or occupiers are required for the overhead lines and underground
cables, which make up our electricity network in England and Wales. The majority of agreements are in the form of
terminable wayleaves. The remainder are in the form of perpetual easements under which rights have been granted in
perpetuity in return for a lump sum payment. The sites at which we have electricity substations are split between
freehold and leasehold. Of the leasehold sites, the large majority are substations located on the premises of generators
and are held on long-term leases for nominal rental payments. Of the remaining sites, most are held as ground rents
(market price payable for land only) from the respective landlords, who include electricity distribution companies.
We also own the freehold of our control centre in Berkshire and we have major offices in Leeds (freehold) and
Warwick, which the Company sold and leased back during fiscal year 2007. The Warwick offices, of approximately
235,884 square feet, are now held on a 20-year lease from 2 February 2007 with a one-time tenant only break option
(i.e. Company lease termination right) exercisable during the 15th anniversary of the lease.
UK gas distribution. Our UK gas distribution system consists of approximately 82,000 miles (approx. 132,000
kilometers) of distribution pipelines. Agreements with landowners or occupiers are only required for those pipes that
cross private land. These agreements largely comprise perpetual easements. Any land issues impacting on normal
agricultural activity local to pipelines and their associated easement are covered by national agreements with the
National Farmers Union and the Country Land and Business Association of England and Wales.
We own the freeholds of the substantial majority of the operational sites where there are larger operational plant
and gas storage facilities used in our UK gas distribution business. The vast majority of office buildings, depots and
stores used by UK gas distribution are leased from another company within National Grid.
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