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National Forest Land Scheme (NFLS) 31 st Meeting of the Evaluation Panel 23 rd April, 2014 The Dance & Drama Studio, Birnam Arts Centre, Birnam Present: Ian Ross, (Chair); Bob Stubbs, Donald McPhillimy, Penny Cousins, Jon Hollingdale, Joan Mitchell FCS: Bob Frost;,Malcolm Wield, Betsy Walling Apologies: Angela Douglas 1. Panel Session. 2. Chair introduction etc. - Ian Ross (IR) welcomed all to the meeting. Declarations of Interest: Joan Mitchell (JM) had declared her interest in the Creetown Initiative Ltd application and would not take part in the decision. Jon Hollingdale (JH) reported that ABC Group were members of CWA and that CWA had given advice to the group but it was agreed that this was not pertinent to the current application. 3. Staff Developments – Malcolm Wield (MW) informed the panel that he was leaving the Conservancy team and joining the Policy Group at Silvan House, He will still have a base at the Dingwall office and in his new role two- thirds of his time is to be spent on NFLS and one-third leading the review on the conditions of designated sites. Bob Frost (BF) also has a new post with FES. James Ogilvie will be providing support while a replacement is sought. 4. Minutes of 30 th January, 2014 Meeting, Actions Points and Matters Arising – the panel were content that the minutes were an accurate record of the meeting. AP1 – informal panel session is planned as part of the two day programme in August. AP2 , 3 and 4 – have all been actioned. AP5 - Map updated but not seen by panel. To be circulated to panel. AP1 BF 5. NFLS Application Progress Report - A copy of the report and spreadsheet was circulated to the panel. The report is at Appendix 1. 6. Consideration of Application by LOCHWATCH to purchase 2ha of land at Kinachreachan, Loch Awe side – the Key Issues summary and Panel report is at Appendix 2. MW and Penny Cousins (PC) had carried out the site visit and they expanded on their reports and panel discussion followed. IR summarised as follows: Panel generally content with group vision although there are a number of challenges including capacity, administration time and legal status of group. Observations made: community support needs to be reinforced and this is

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Page 1: 31st Meeting of the Evaluation Panel 23 April, 2014 The ... · AP5 - Map updated but not seen by panel. To be circulated to panel. AP1 BF . 5. NFLS Application Progress Report - A

National Forest Land Scheme (NFLS)

31st Meeting of the Evaluation Panel

23rd April, 2014

The Dance & Drama Studio, Birnam Arts Centre, Birnam

Present: Ian Ross, (Chair); Bob Stubbs, Donald McPhillimy, Penny Cousins, Jon Hollingdale, Joan Mitchell FCS: Bob Frost;,Malcolm Wield, Betsy Walling Apologies: Angela Douglas 1. Panel Session. 2. Chair introduction etc. - Ian Ross (IR) welcomed all to the meeting. Declarations of Interest: Joan Mitchell (JM) had declared her interest in the Creetown Initiative Ltd application and would not take part in the decision. Jon Hollingdale (JH) reported that ABC Group were members of CWA and that CWA had given advice to the group but it was agreed that this was not pertinent to the current application. 3. Staff Developments – Malcolm Wield (MW) informed the panel that he was leaving the Conservancy team and joining the Policy Group at Silvan House, He will still have a base at the Dingwall office and in his new role two-thirds of his time is to be spent on NFLS and one-third leading the review on the conditions of designated sites. Bob Frost (BF) also has a new post with FES. James Ogilvie will be providing support while a replacement is sought. 4. Minutes of 30th January, 2014 Meeting, Actions Points and Matters Arising – the panel were content that the minutes were an accurate record of the meeting. AP1 – informal panel session is planned as part of the two day programme in August. AP2 , 3 and 4 – have all been actioned. AP5 - Map updated but not seen by panel. To be circulated to panel. AP1 BF 5. NFLS Application Progress Report - A copy of the report and spreadsheet was circulated to the panel. The report is at Appendix 1. 6. Consideration of Application by LOCHWATCH to purchase 2ha of land at Kinachreachan, Loch Awe side – the Key Issues summary and Panel report is at Appendix 2. MW and Penny Cousins (PC) had carried out the site visit and they expanded on their reports and panel discussion followed. IR summarised as follows: Panel generally content with group vision although there are a number of challenges including capacity, administration time and legal status of group. Observations made: community support needs to be reinforced and this is

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important in terms of avoiding future problems; no problems with remaining sale area. Syd House, Conservator had asked that a condition of sale be that the applicants submit a simple Woodland Management Plan. The site is a registered Ancient Woodland Site and contains significant archaeology. JH noted that the applicants should be made aware of the availability of the Community Fund to help . AP2 MW The panel were content to recommend approval with conditions. 7. Consideration of Application by Creetown Initiative Ltd to lease 1.2 ha of land within Balloch Wood to install run of river hydro scheme – Summary of Key Issues and Panel Report at Appendix 3. The site visit was undertaken by BF and Bob Stubbs (BS). Two issues were raised in BF’s report regarding the ballot – level of turnout and age of ballot. MW and BF had discussed this as the guidance allows leeway in exceptional circumstances but they wished to consider panel opinion. BS thought result was near enough and the gap between ballot and submission was because the feasibility report had taken a long time, as it had been paid for out of group funds; JH said focus should be on significant Yes vote ; PC only issue with timing is if anything significant had happened within the community in the last 9 months that would have increased negative opinion. Report states that consultation on proposed wind farms, which are not going ahead, may have caused some confusion in the community but recent informal consultation has shown a high level of support. Donald McPhillimy (DMP) said that getting a higher than 50% turnout was notoriously difficult in urban communities. His concerns were recommending approval prior to group having more than 20 members. BF stated that from approval in principle there was an 18 month period to put conditions in place. IR summary: Strong support for an in principle approval; the panel were for taking a flexible view on the ballot issue; conditions to be put in place re structure; membership; community control; trading arm and fund raising. He asked that information about the structure of the group be shared with the panel as it emerges. The panel were content to recommend approval subject to conditions. 8. Consideration of Application by Achnacarry, Bunarkaig & Clunes (ABC) Group to purchase approximately 1096ha of woodland at Glen Mallie and South Loch Arkaig – Summary of Key Issues and Panel Report at Appendix 4. The site visit was undertaken by IR and MW who both expanded verbally on their reports. A discussion raised several issues which IR summarised: This project is as a significant challenge. All of panel expressed support for project but there are a number of issues. These include legal structure, community status and community control. The benefit and merit of Trees for Life involvement was recognised. Observations to be made to group: to encourage active engagement with neighbouring landowners; capacity challenge – they need to demonstrate wider support; to move towards an approved Long Term Forest Plan; need to balance conservation and rural development; panel strongly support for sustainable development objectives; Business Plan will have to demonstrate economic, social and environmental goals.

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The panel were content to recommend approval subject to these observations. 9. Future Meetings – Confirmation of meeting on 19th/20 August in Lochaber. JH said he may only join for business meeting as CWA conference is coming up. Wednesday, 26th November provisionally chosen for next meeting. 10. Site Visits - JH – Strontian and Achnaha DMcP – Barracks JM – Dinmurchie PC – Ballachulish, Dalavich and Mull IR – Invergarry 11. AOCB – 1. Application by Sunart Community Company to purchase land at Old Schoolhouse – this application has come in and will require a decision before the next meeting so it was agreed that the panel would be sent the information and send their responses by e-mail. 2. JH had had a telephone call from a representative of the Spotlight Theatre Musical Group reporting conflicting advice from OSCR. The decision was for CWA and FCS to discuss and decide between the best way to approach this.

AP 3 JH/BF 3. Valuations - JH said it was disappointing that FCS representations seem to bear no relation to property being disposed of. BF will give feedback to estates team and he said there was work to do in strengthening transparency.

AP4 BF 4. PC would like more follow-up information about applications which the panel has recommended approval for. Agreed that this would be included as an agenda item for meeting in August. AP5 MW/BMW 5. JM thought letters of support should be community specific rather than lobbying opportunities. MW said the issue of lobbying had been raised previously and that as a result, applicants are routinely advised that their submission to the panel should not be seen as a lobbying opportunity... 6. Website & Map – BF asked the panel to take a look and give their opinions on the scale and level of detail. 7. Tiroran Application – MW reported that group may not be following recommendations/observations of the panel and that there may be the need to review progress at an early stage and possibly a further meeting with FCS, panel member and group. Agreed. IR recorded thanks from the panel to Bob Frost and wished him well in his new post. The meeting was then closed.

Appendix 1

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NFLS Progress report April 2014 Red list – applications received - from the LochWatch group for part of Kinachreachan woodland on the shore of Loch Awe, for woodlands at Glen Mallie and Loch Arkaig in Lochaber and for a hydro project in Balloch Wood, Creetown. A further application has been received within the last few days for land near to the old schoolhouse in Strontian. Orange list – applications in preparation. The Invergarry community have recently formed a more structured group in partnership with the Highland Small Communities Housing Trust. As significant progress by the new group could be well demonstrated when the second submission guillotine of 12th February was reached, a final extension until 12th May has been granted. There has been less tangible progress at Creag Nay, Loch Ness-side. Some enthusiasm remains, mostly within the Abriachan community. A list of supporting elements for an application has been drawn up but not acted upon. An extension to the end of April (from the end of January) has been agreed for some definite progress to be shown. The Sunart community are progressing with their Community Acquisition application for Achnaha. A joint valuation has been instructed and will be ready by the end of April. The DV’s office have delayed their valuation at Dinmurchie and the interested group will consequently be given a reasonable extension. The Enzie Crossroads Community Woodland Group continue to prepare their CA application for part of Longhill woodland. There has been little feedback from hydro developments at Callander Community Hydro, Trossachs Community Trust, Strathard or Strathyre. However, Dalavich, Ballachulish and Glencoe, South Lochaline and Fernaig (South Strome) are making some progress; and Tiroran is being progressed steadily by the Mull and Iona Development Trust. The MICT interest pre-dates the FoRe Residual Offering exercise and will be intrinsically linked to the previously approved community acquisition of Tiroran Forest (see below). The Black Isle group remains interested in establishing a wind power project. Grey list – under consideration Scottish Wildlife Trust has expressed interest in The Barracks, currently formally notified for sale. Green list – previous approvals Aigas have reduced their area of interest for purchase to 50 ha and are maintaining an interest in a lease for the remaining area of forest. Kilfinan Community Forest Company will be approached in June to see whether they continue to have an interest in the remainder of Acharossan Forest. This area was originally

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applied for as a whole, with the community ultimately deciding to purchase a smaller area. FCS agreed to retain the remainder until January 2015 so that the community could reapply to the NFLS if desired. The observations on the Tiroran Forest approval - to continually engage with other members of the community and to progress the long term forest plan - will be reviewed at the end of April, 6 months after the approval date. Malcolm Wield 16/4/14

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Appendix 2 The National Forest Land Scheme

Sponsored Sale of Surplus Land

Summary of the key issues

Applicant: The LochWatch group Land: approx 2ha land at Kinachreachan, Loch Awe

1. LochWatch have charitable status at present and intend to become incorporated as a SCIO. Their application has been accepted on this premise.

2. The group currently have a small membership and have not produced evidence

of support from all the organisations they hope to help with their idea.

3. The support of the community council was initially reserved.

4. The group have applied to acquire approximately 2 hectares of woodland between the main A819 trunk road and the shore of Loch Awe, via the single access point. Future access to the remaining woodland (the woodland is approx 9.7 ha in total) has not been defined.

5. Much of the c.9.7ha woodland is listed as ancient woodland of semi-natural

origin. The Conservator has asked for a woodland management plan to be agreed as a condition of sale.

6. A visit to the site was made by Penny Cousins on the 13th March. The group

was represented by Directors Louise Glen-Lee and David Adams McGilp. Donald McNeil of West Argyll FD and an NFLS representative also attended. Penny’s report follows below.

M Wield 14th April 2014

The National Forest Land Scheme Community Acquisition Sponsored Sale of Surplus Land Woodland Crofts Leasing for Forest Management Purposes Leasing for Renewable Energy

Checklist for the Evaluation Panel

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Introduction This checklist sets out the criteria and the main points to be considered when judging whether the NFLS criteria have been met for any individual application. The criteria refer to the NFLS Guidance document, revised November 2010. Applicant:- LochWatch Land:- Kinachreachan, Argyll & Bute Please use the colour code to highlight your comments:- Observation- issues which could have a negative effect on the application Observation- issues where additional consideration could be useful Observation- issues which deserve special commendation Criteria:- 1. Who can apply? Only a formalised Community Body (CB) can apply to buy or lease national forest estate land and must geographically define the community area.

• Limited Company or alternative community body status • Community in control • No private gain • Appropriate winding up procedure • 20+ members, majority from the local community • Surplus assets used for community benefit • Main purpose is sustainable development • Majority of directors are voting members

Has the criterion been met ? Not yet – see below LochWatch is a constituted but unincorporated group, established in September 2013 and with an open membership (other than staff). At present the organisation has only 6 members and none of these reside in the area of the intended land purchase, although all are residents of Argyll and Bute. The group was awarded charitable status by OSCR in December 2013. The object of the group is to save lives by running a volunteer LochWatch scheme, encouraging the reporting of incidents, co-operating with and facilitating the work of the emergency services, and promoting safety information, advice and good practice amongst the general public. In order to deliver these activities the group does have

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the powers through their constitution to hold and manage land but the means for doing this is not compliant with NFLS requirements. We have discussed the question of incorporation with representatives of the group and are assured that this matter is being progressed, with the aim of transferring to a SCIO structure. No further information has been provided as yet so we are unclear what stage has been reached. Once draft M&As are available for the new organisation these need to be checked against NFLS requirements as listed above. One issue in particular that needs to be addressed by the group is the development of their membership to ensure that this is sufficiently linked into local communities and we have discussed this with them. See also Section 3. Overall there is a sense that this is a new group, still under development, and with a willingness to respond to NFLS compliance requirements. The group is wholly voluntary and does not have any dedicated project officer support; this is probably a constraint on their ability to respond quickly and fully to administration tasks. 2. Connection with the land The community should be situated by, near to, or on the land. Has the criterion been met ? Yes The area of land to which the application refers is situated at Creagan a’ Bhuic adjacent to the A819 Dalmally – Inveraray road a mile or so from its junction with the A85 at Dalmally. It is a small area of ground (1.05ha) lying between the road and the lochside, directly opposite the village of Lochawe. The site has been selected on the basis of its suitability for LochWatch activities across the whole of the north east section of Loch Awe, where most drowning incidents occur. The memorial created following the most recent incident lies on the shoreline within the site. The group propose improving the pulloff to create hardstanding for four emergency / support vehicles. A set of steps will be created down the steep slope from the hardstanding to the shoreline to allow access to the water. Given that the group is serving the general community of loch users who are likely to be either permanently or temporarily resident anywhere on the stretch of the A819 / A85 around this end of the loch then I am satisfied that the application meets this criterion. 3. Community support

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Where the value of the land is greater than £50,000 the CB must hold a ballot to demonstrate community support. Where the value is lower, the CB can still choose to ballot, or use other means to demonstrate support.

• Ballot required? • Relevant ballot question set? • If no ballot required, evidence of community support • Neighbours views taken into account • Stakeholders views taken into account • Detrimental effects identified and addressed?

Has the criterion been met ? In part The land was valued in December 2013 at £5,000 and no ballot is therefore required. The valuation appears to have been accepted by the applicant. Accompanying the application 6 letters of support were submitted, from: o Argyll & Bute Council (Chief Executive)

o Mike Russell MSP, Argyll & Bute

o VisitScotland (David Adams McGilp, a member of the applicant’s Board)

o Argyll & the Isles Strategic Tourism Partnership

o Glenorchy & Innishail Community Council (expressing some reservations about the project proposal).

The subject of community support was discussed with the applicant at our site meeting and the following key stakeholders identified: o the emergency services for whom the muster point is being created – HM

Coastguard; Scottish Ambulance Service; Police Scotland; Fire & Rescue Scotland;

o local communities as represented by their community councils:

Avich and Kilchrenan

Glenorchy and Innishail

Dunadd The applicant states that all of these key stakeholders support the application, with over 100 local volunteers offering to help maintain safety watches on the Loch. The application also states that there is support for the project from the Area Commander of Police Scotland, though no evidence of this is provided. Whilst we have no reason to doubt these statements, we asked the applicant to seek letters of support from the key stakeholders to demonstrate local, rather than strategic

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institutional support, which has already been supplied. Following our meeting additional letters of support have so far only been received from the Scottish Fire and Rescue Service (Oban) plus a revised letter from the Glenorchy and Innishail Community Council confirming that their earlier reservations have now been addressed.

In order to fully meet the community support criterion it would be useful for the applicant to continue building links into the local residential communities with a view to both cementing good working relationships and increasing the level of local representation on the Board of the SCIO when this is established.

Close working with the full range of emergency services should also be encouraged, especially during the project planning and development stage, to ensure that the needs of the service providers are fully understood and addressed. We have no evidence at present that these links have been made. 4. Capacity to manage the land The CB must have clear proposals for the land and demonstrate the capacity to provide long term sustainable management of the land. A feasibility study and business plan is always desirable and in any case is a pre-requisite for land valued at greater than £50,000. Evidence of capacity may include:

• Feasibility Study • Business Plan • Forest management plan • Other community purchases • Other community management

Has the criterion been met ? In part This is a very small area of land (1.05 ha) and the applicant has described quite clearly their intentions for improvement of the site to create a muster point, although as yet they have not obtained design plans or costings for the work. The present indicative cost of physical works is £10,000 with the expectation that volunteers will carry out initial site clearance and ground works. Key elements of the improvement works will include the creation of level/hard standing for vehicles; improvements to the pulloff approaches and associated signage; and the creation of steps down to the shoreline. Woodland on the site comprises mainly alder and birch and once the initial clearance work has been undertaken there will not be any substantial woodland management programme required. The applicant has indicated that a woodland management plan will be drawn up in due course if required and the FCS Conservator has proposed that this should be a condition of sale.

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The applicant has stated at our site meeting that they do not wish to seek ownership of the full strip of land between the road and the loch, simply the small area in the centre as shown on the map. The valuation report states that the area being applied for may contain a dyke of archaeological significance although this has not been mapped and it is unclear whether any special management requirements exist. Amongst the present Board members there are a number of individuals with good relevant experience in community-based project development, land management and health and safety. Given the scale of the project I would not expect the applicant to have any difficulty in meeting this criterion in full by the time of site purchase although, as noted in section 1 there may be constraints in terms of speed of response. 5. Consistent with the principles of sustainable development Applications should show how sustainable environmental, economic and social benefits would be delivered. For forested land an intention to obtain certification will be relevant.

• Economic benefits • Social benefits • Environmental benefits • Ecological and cultural features • Use of timber/ local timber/ renewables • Certification

Has the criterion been met ? Yes The applicant describes a wide range of benefits that will be generated through the project, in particular helping to build a stronger and more attractive tourism product for the area linked to improved safety on the water. It is expected that this will help stimulate the development of an increased range of leisure and recreation activities locally. The support of both VisitScotland and the AISTP is demonstrated through letters. LochWatch is also engaging with local operator Stramash to explore opportunities to develop more outdoor education activities in the area. Environmental benefits will accrue through improved management of the site, including both active management of the woodland and work with visitors and campers to minimise their impact on the site (refuse, fires etc). 6. Is community acquisition in the public interest? Will the proposals deliver additional public benefit to the whole community and are they in the public interest?

• Additional public benefit

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• Benefits the whole community, not individuals • Benefits outweigh disbenefits • Impact on wider community and private interests • Scottish Forestry Strategy, designated areas and national policies

followed Has the criterion been met ? Yes The project has been designed to meet a clearly identified need. A range of public benefits will be generated and there are no identifiable disbenefits. The impact on the wider community will be wholly beneficial. 7. Management of the national forest estate Are the proposals significantly detrimental to the management of the national forest estate? NB This criterion does not apply to Surplus Land sales. Has the criterion been met ? Yes – surplus land sale

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Appendix 3 The National Forest Land Scheme

Leasing for renewable energy

Summary of the key issues

Applicant: Creetown Initiative Ltd (CI) Land: approx 1.2 ha of land within Balloch Wood, Creetown

1. The Creetown Initiative is applying to lease an area of land within Balloch Wood to establish a hydro renewable energy scheme along the Balloch Burn. The generating capacity of the proposed scheme is around 250kW with an estimated construction cost of c.£1.4 million. 2. The Initiative proposes establishing a trading subsidiary as a special purpose vehicle to manage the project. The Initiative has plans to change its legal structure from a Company Limited by Guarantee to a Scottish Incorporated Charitable Organisation (SCIO). FCS has asked to see a copy of the draft SCIO constitution. The Initiative only has 8 voting members. FCS has raised this directly with the applicant and their response stated that they "recognised that a more formal membership system is required."

3. The Initiative intends to raise around a third of the capital to establish the scheme. The potential income will be greater than £50,000 per year and therefore a business plan and ballot are required, and have been received.

4.The local community has a long-term relationship with Forestry Commission Scotland through a formal 25 year land management agreement covering Balloch Wood (signed in 2009). That work is carried out by a sub-group, Balloch Wood Community Project, under the umbrella of the Initiative.

5.A ballot was carried out in February 2013. 39.8%, of those eligible to vote, voted in the ballot - 81% of those that voted supported the project. The turnout is below the 50% stated in the NFLS guidance booklet (page 14). However, the guidance does state that a lower turnout can be accepted in exceptional circumstances. The other requirement is that the ballot is carried out no more than 6 months prior to submitting an application. Despite the application not strictly conforming to the guidance, FCS is content that the NFLS Evaluation Panel still assesses the application to form an opinion on whether criterion 3 "Community Support" has been met.

6.A visit to the site was made by Bob Stubbs on 7th April. The group was represented by Dorothy Scherrer (Vice Chair, CI), Jim Anderson (Director, CI) and Katherine Elliot (Community Project Worker, CI). Also Lyndy Renwick the local Community Liaison officer (Galloway Forest District) and the NFLS team were represented. Bob’s report follows below.

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Bob Frost 15th April 2014

The National Forest Land Scheme Community Acquisition Sponsored Sale of Surplus Land Woodland Crofts Leasing for Forest Management Purposes Leasing for Renewable Energy

Checklist for the Evaluation Panel

Introduction This checklist sets out the criteria and the main points to be considered when judging whether the NFLS criteria have been met for any individual application. The criteria refer to the NFLS Guidance document, revised November 2010. Applicant:- The Creetown Initiative Ltd Land:- Balloch Burn, Balloch Wood, Creetown Please use the colour code to highlight your comments:- Observation- issues which could have a negative effect on the application Observation- issues where additional consideration could be useful Observation- issues which deserve special commendation Criteria:- 1. Who can apply? Only a formalised Community Body (CB) can apply to buy or lease national forest estate land and must geographically define the community area.

• Limited Company or alternative community body status • Community in control • No private gain • Appropriate winding up procedure • 20+ members, majority from the local community • Surplus assets used for community benefit • Main purpose is sustainable development

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• Majority of directors are voting members Has the criterion been met ? Mostly. The application has been submitted by Creetown Initiative Ltd (CIL), a community-led charity social enterprise established in 2001, which became a limited company in 2004. CIL have a strong board of experienced local individuals but they do not have a formal register of members and currently don’t comply with the requirement to have 20+ members. They do however recognise this issue and indeed, asked at the meeting about the rationale for the need for a minimum of 20 members. CIL are currently investigating changing status to that of a SCIO and are taking legal advice on it at present. As part of that process, they propose to address the issue of membership to bring it in line with the scheme requirements. As currently constituted, the M&A’s comply with the requirements of the scheme and make specific references to conserving, regenerating and promoting the restoration of Balloch Wood. There is an appropriate winding up clause within the M&A’s. There is a long-standing shared interest with the Balloch Wood Community Project and indeed the chair of that project is a Director of CIL. 2. Connection with the land The community should be situated by, near to, or on the land. Has the criterion been met ?

Yes. The communities in the polling districts of Carsluith and Creetown within Dumfries and Galloway are impacted by the work of the project. The woodland and the proposed site of the pipeline and turbine house are all within half a mile of the community of Creetown. 3. Community support Where the value of the land is greater than £50,000 the CB must hold a ballot to demonstrate community support. Where the value is lower, the CB can still choose to ballot, or use other means to demonstrate support.

• Ballot required? • Relevant ballot question set? • If no ballot required, evidence of community support • Neighbours views taken into account • Stakeholders views taken into account • Detrimental effects identified and addressed?

Has the criterion been met ? No but….The population of the community is 995 with a voting population of 754. A ballot was put to the community in February 2013 and this was handled independently by an organisation called “Democracy Counts”. A sample of the documentation created for the purpose is given in Part 12 of the information relating to the project. Voters were given the option of phone, online and postal voting and, 300 (40%) voted in total of which 241 (81%) were in favour of the lease going ahead.

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A further 39 votes were received after the closure of the ballot with 37 of these in favour. Taking these additional numbers into account would bring the eligible percentage of those voting to 45%, still short of the NFLS normal requirement of 50%. CIL recognise this issue but point out that the ballot was conducted at the same time that two larger commercial windfarm operators were consulting on proposals in the area and that the timing of CIL’s ballot might have led to confusion in voters’ minds. Ironically, both the windfarm proposals failed to materialise. Subsequent community consultation on a more informal basis has continued to demonstrate support for the project and there is also further evidence provided by CIL in their application in Appendix 8. Whilst the formal ballot took place outwith the normal period of 6 months prior to the NFLS application being submitted, CIL believe that they have sufficient valid support from the community.

4. Capacity to manage the land The CB must have clear proposals for the land and demonstrate the capacity to provide long term sustainable management of the land. A feasibility study and business plan is always desirable and in any case is a pre-requisite for land valued at greater than £50,000. Evidence of capacity may include:

• Feasibility Study • Business Plan • Forest management plan • Other community purchases • Other community management

Has the criterion been met ? Yes. CIL have undertaken substantial research and feasibility work in building up the proposal for a run of river hydro scheme and for that they are to be commended. All of their research is well documented in the supporting information to the application. The Business plan and financial projections for the project are robust in the sense that they project an income mix of Feed in Tariff (FIT) for 20 years and sales of electricity to a utility company and to a local caravan park who also happens to own some of the agricultural land that will be used to run the penstock down from the woodland to the proposed turbine house. The arrangement with the caravan park is therefore partially in lieu of rental for use of the land. The threat to the financial projections if there is one is the extent to which FIT’s change between now and the project coming online, projected to be Autumn 2015. Already the scheme has been projected on the basis of paying off a loan of c.£900k within the first ten years on the assumption that 35% of total project costs (potentially £500k) can be raised by the community themselves. In that regard, negotiations are ongoing with the Council, who seem keen to invest or potentially to provide more advantageous loan terms than has been projected in the plan. Either way, CIL are actively pursuing all angles to ensure a positive and financially sustainable plan can be brought to fruition.

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In connection with that, CIL recognise that in order to maintain their charitable status with OSCR, a separate trading arm company will need to be established and they are currently investigating that aspect as well. This also has the potential to introduce additional new members, perhaps addressing some of the issues raised in 1) above. 5. Consistent with the principles of sustainable development Applications should show how sustainable environmental, economic and social benefits would be delivered. For forested land an intention to obtain certification will be relevant.

• Economic benefits • Social benefits • Environmental benefits • Ecological and cultural features • Use of timber/ local timber/ renewables • Certification

Has the criterion been met ? Yes. CIL have an established track record and seem well resourced with enthusiastic and committed people who believe strongly in their ability to deliver social and community benefit for the area. The link to the woodland is strong in the sense that there is a long established close working relationship with the Forestry Commission and with the community. The woodland is managed on a low impact silvicultural system with the long-term aim that the woodland will slowly return to predominantly broadleaf cover. The community and local schoolchildren are closely engaged with the woodland and the woodland contains a poetry stone circle and wooden roundhouse. The wood itself is open access for recreational purposes and they are very popular with locals and visitors to the area as there are views across the Cree estuary from the top of the hill. The project that CIL are proposing is minimally disruptive to the woodland itself and delvers a sustainable form of renewable energy that will deliver for many years. I can confirm that the river had a good head of water coming through and indeed, it was being added to substantially during my visit. 6. Is community acquisition in the public interest? Will the proposals deliver additional public benefit to the whole community and are they in the public interest?

• Additional public benefit • Benefits the whole community, not individuals • Benefits outweigh disbenefits • Impact on wider community and private interests • Scottish Forestry Strategy, designated areas and national policies

followed Has the criterion been met ?

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Yes. It is evident from all the documentation and from meeting representatives of CIL, that they are committed to using this project as a vehicle for enhancing the community benefit to the area. The Business Plan demonstrates the potential viability of the project which forecasts sustained income to support future community based projects. Moreover, the project does not in any way compromise the long-standing and successful 25-year management agreement with the Forestry Commission 7. Management of the national forest estate Are the proposals significantly detrimental to the management of the national forest estate? NB This criterion does not apply to Surplus Land sales. Has the criterion been met ?

Yes. The FDM has confirmed that the proposal would not be detrimental to the NFE and is supportive of CIL’s proposals to lease 1.2ha of the woodland for the proposal.

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Appendix 4 The National Forest Land Scheme

Sponsored Sale of Surplus Land

Summary of the key issues

Applicant: The Achnacarry, Bunarkaig and Clunes Group (ABC) Land: approx 1096 ha land at Glen Mallie and Loch Arkaig, Lochaber

1.ABC is a registered Scottish Charitable Incorporated Organisation and has an eligible Constitution, containing an acceptable wind-up clause. The group plan a new community organisation to own and manage the woodlands, with Directors likely to be drawn from the current Steering Group.

2.One member of the project Steering Group is an FCS employee, but is not a Trustee of the SCIO.

3.The Glen Mallie woodland (approx 570 ha) contains a high proportion of registered ancient pinewood, but has no statutory designations.

4.The application details significant restoration proposals for peatland and native woodland.

5. The application contains a proposal for co-ownership with the well established environmental Scottish Charity, Trees for Life. TFL have suggested a potential structure for a combined relationship, subject to further discussion. TFL are an NGO approved by FCS to apply to the NFLS in their own right, when appropriate.

6.The defined post code areas embrace a vast land area containing a very low population, with only 40 eligible voters.

7. The ballot results were adequate but only 51.7% voted in favour of the

application.

8. Access to both woodland areas is poor with limited access rights over neighbouring estate ground, which may (or may not) include the shore on both sides of the loch. There is no road access into the Loch Arkaig woodland.

9. Support has been received from the Community Council, Woodland Trust

Scotland and some prominent public figures, but the neighbouring estate has not supplied its support.

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10. The prospect of timber extraction from the productive woodlands (c20-30k/t) is challenging. Sitka is limited to less than 10% area and low yielding Lodgepole pine predominates. Water borne timber transport is a consideration but investigations into cost have so far been prohibitive.

11. The application contains proposals for hydro power, biomass production,

woodland crofts, woodlots and hutting as means of raising income.

12. A visit to the site was made by Ian Ross on the 4th April. The group was represented by 3 members of the ABC group and the Executive Director of TFL. The outgoing and incoming FDM’s and an NFLS representative also attended. Ian’s report follows below.

M Wield 4th April 2014

The National Forest Land Scheme Community Acquisition Sponsored Sale of Surplus Land Woodland Crofts Leasing for Forest Management Purposes Leasing for Renewable Energy

Checklist for the Evaluation Panel

Introduction This checklist sets out the criteria and the main points to be considered when judging whether the NFLS criteria have been met for any individual application. The criteria refer to the NFLS Guidance document, revised November 2010. Applicant:- The Achnacarry, Bunarkaig and Clunes Group (ABC) Land:- Approximately 1096 ha land at Glen Mallie and Loch Arkaig, Lochaber Present at visit Malcolm Wield and Ian Ross (NFLS Assessment Panel) Kevin Peace and Michael Hymers (FES) Jamie MacIntyre, Gary Servant & Cathy Mayne (ABC) Pam Noble (HIE) Alan Watson-Featherstone (Trees for Life) Please use the colour code to highlight your comments:-

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Observation- issues which could have a negative effect on the application Observation- issues where additional consideration could be useful Observation- issues which deserve special commendation Criteria:- 1. Who can apply? Only a formalised Community Body (CB) can apply to buy or lease national forest estate land and must geographically define the community area.

• Limited Company or alternative community body status • Community in control • No private gain • Appropriate winding up procedure • 20+ members, majority from the local community • Surplus assets used for community benefit • Main purpose is sustainable development • Majority of directors are voting members

Has the criterion been met ?

The applicant is ABC and it is a registered Scottish Charitable Incorporated Organisation and has an eligible Constitution, containing an acceptable wind-up clause. The community is in a very low population area and has only some 40 people of voting age. This existing group (ABC) has a track record of delivery and this very much aligned to the principles of sustainable development. The group plan a new community organisation to own and manage the woodlands, with Directors likely to be drawn from the current Steering Group. An important point and one which has yet to be agreed and finalised is that a likely option to secure significant funding and to bring in wider resources and expertise is some form of partnership with Trees for Life. There is as yet no complete agreement on the form and legal nature of this potential partnership. Informal discussion confirmed that any future structure would need to demonstrate majority community control.

2. Connection with the land The community should be situated by, near to, or on the land. Has the criterion been met ?

The core community group is very much linked geographically to the area, but do not have a strong record of working on the land, although there is a clear

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demonstration of commitment and the presence of a wider skill base – conservation and general management skills. The community are also forging links with the wider community in and around the core postal code area and have some active supporters from this wider catchment. This is a reflection of historical population reductions and changes in the work demands of rural land management. The Achnacarry, Bunarkaig and Clunes area can by most standards be considered remote with some access challenges.

3. Community support Where the value of the land is greater than £50,000 the CB must hold a ballot to demonstrate community support. Where the value is lower, the CB can still choose to ballot, or use other means to demonstrate support.

• Ballot required? • Relevant ballot question set? • If no ballot required, evidence of community support • Neighbours views taken into account • Stakeholders views taken into account • Detrimental effects identified and addressed?

Has the criterion been met ?

A ballot was required and carried out. It should be noted that the ballot results were adequate but only 51.7% voted in favour of the application. The representatives present at the meeting were of the view that this was a reflection of the fact that at the time of the ballot, there was no business plan in place and the potential partnership with Trees for Life (TfL) had not been developed and there were resultant concerns over the levels of risk. The group felt that they had to progress matters to the ballot because of the tight timetable for a community acquisition where the land has been declared surplus. The group is continuing to work with the other members of the community and explain and promote the benefits of a community acquisition. The neighbouring estates might at best be considered neutral or potentially non-responsive to approaches. This is considered to be “sitting on the fence” and it is believed there will be positive engagement when the community acquisition becomes more “real”. The informal relations with the local laird and his family are considered to be good.

4. Capacity to manage the land

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The CB must have clear proposals for the land and demonstrate the capacity to provide long term sustainable management of the land. A feasibility study and business plan is always desirable and in any case is a pre-requisite for land valued at greater than £50,000. Evidence of capacity may include:

• Feasibility Study • Business Plan • Forest management plan • Other community purchases • Other community management

Has the criterion been met ?

Yes in general terms. There is a forest management plan, but it is more of a narrative than a detailed set of well evidenced proposals. There is also a summary business plan. The critical factor is the sourcing of the purchase capital and the assumptions which go with that – the participation of TfL and support from the Scottish Land Fund. Such support is not as yet confirmed, but that is not unusual and there is ongoing work to progress this. The ABC Group has taken forward other community projects and there are existing steps to involve people from the wider area. TfL could be pivotal in making this happen – this includes expertise, volunteers and financial resources. The community group do have a well-articulated sense of vision and it is about sustainable development, native woodland regeneration, greater community use and engagement, the employment of a community forester, the use of updated management information, a possible solution to the harvesting access challenge and the promotion of rural development forestry.

The future effective management of the woodland has certain dependencies on other owners – particularly in terms of access and use of land owned by neighbouring landowners. There are no firm agreements in place as yet, but it is felt that as the acquisition process progresses this will move forward.

5. Consistent with the principles of sustainable development Applications should show how sustainable environmental, economic and social benefits would be delivered. For forested land an intention to obtain certification will be relevant.

• Economic benefits • Social benefits • Environmental benefits

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• Ecological and cultural features • Use of timber/ local timber/ renewables • Certification

Has the criterion been met ?

Yes in terms of stated intent. The group’s proposals and active narrative are very much about sustainable development – an enhancement of the natural heritage value, a significant increase in community engagement and control and the promotion of active business and added vale from areas of the woodland. The challenge is how to make this real and deliverable, but the intent is evident. The group has confirmed it commitment to pursuing certification.

6. Is community acquisition in the public interest? Will the proposals deliver additional public benefit to the whole community and are they in the public interest?

• Additional public benefit • Benefits the whole community, not individuals • Benefits outweigh disbenefits • Impact on wider community and private interests • Scottish Forestry Strategy, designated areas and national policies

followed Has the criterion been met ?

Community ownership is considered the “only way” to “ensure” higher levels of effective community engagement, wider community engagement beyond the immediate small community and engagement which could not be delivered by other forms of future ownership. The group made strong connections with a range of strategies and plans and emphasised the alignment with the Scottish Forestry Strategy. There is a strong commitment to biodiversity improvement and the enhancement of natural heritage value – with a linkage to greater community use and access.

7. Management of the national forest estate Are the proposals significantly detrimental to the management of the national forest estate?

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NB This criterion does not apply to Surplus Land sales. Has the criterion been met ?

This is a surplus land sale.