Ngai Tahu Settlement

ALL SITES AGREED IN SECTION 11: PROPERTY LEGAL DESCRIPTIONS IN SQUARE BRACKETS TO BE CONFIRMED BY PARTIES

ATTACHMENT 11.12

matariki to be vested in Te Runanga in fee
simple

(Clause 11.2.20)

ATTACHMENT 11.13

VESTING OF Taramea (Howells point)

(Clause 11.2.21)

ATTACHMENT 11.14

restrictions, conditions and administrative processes
for the administration of taramea (howells point)

(Clause 11.2.23)

[to be inserted]

ATTACHMENT 11.15

VALUATION METHODOLOGY

(Clause 11.1.1)

1

Object

This Attachment 11.15 sets out the process to be followed, the factors
to be considered and the methodology to be adopted in determining the Transfer
Value of the Tribal Properties. The procedures outlined in this
Attachment 11.16 must apply in all cases unless this Deed provides
otherwise or the parties agree otherwise in any particular case.

2

Definitions and Interpretation

2.1

In this Attachment 11.15, unless the context otherwise requires:

Arbitrated Property means any Tribal Property to which
paragraph 6 applies;

Arbitration Commencement Date means, in respect of each Arbitrated
Property, the date specified by the Crown under paragraph 6.1 or, as the
case may be, determined in accordance with paragraph 6.3;

Arbitrator means a member of the panel constituted under paragraph
7;

Business Day means a day (other than Saturday or Sunday) on which
registered banks are open for normal banking business in Wellington and
Christchurch but shall exclude any day in the period commencing 25 December in
any year and ending on 5 January in the following year, inclusive, and shall be
deemed to commence at 9.00 am and to terminate at 4.00 pm;

Crown means the Minister of the Department which holds the Tribal
Properties;

the Crown's Valuation Report means the valuation report prepared by
the Crown's Valuer in accordance with this Attachment 11.15; and

the Crown's Valuer means any Registered Valuer appointed by the Crown
to take part in the process set out in this Attachment 11.15;

Disputed Property means any Tribal Property to which paragraph
5 applies;

Market Value is the estimated amount for which an asset should
exchange, on the Valuation Date, between a willing buyer and a willing seller,
in an arms length transaction, after proper marketing, wherein the parties had
each acted knowledgeably, prudently and without compulsion.

In applying this definition to any Tribal Property, the following matters
must be taken into account:

(a)

the terms and conditions of vesting of the Tribal Property (including any
warranties given or not given in respect of the Tribal Property) other than the
effect of the delayed possession date;

(b)

any encumbrances or interests or other matters affecting or benefiting the
Tribal Property as at Valuation Date or to appear on the certificate of title
for the Tribal Property when issued;

(c)

the value is to be on a plus GST (if any) basis;

Registered Valuer means a person registered under the Valuers Act 1948
and who holds a current annual practising certificate;

Te Runanga's Response Date means the next Business Day after the
expiration of the period of 41 Business Days commencing on the date of this
Deed;

Te Runanga's Valuation Report means the valuation report prepared by
Te Runanga's Valuer in accordance with this Attachment 11.15;

Te Runanga's Valuer means any Registered Valuer appointed by Te
Runanga to take part in the process set out in this Attachment 11.15;

Transfer Value means, in respect of each Tribal Property, the purchase
price to be paid by Te Runanga to the Crown, as determined by the methodology
and process set out in this Attachment 11.15;

Tribal Properties means the properties specified in
[Attachments 11.8, 11.9, 11.10, 11.12 and 11.16 which are being
vested in fee simple, the properties specified in Attachments 11.23 and
11.31, which are being vested as reserves, and the property specified in
Attachment 11.13 which is being vested in fee simple subject to
section 38 of the Reserves Act 1977 (to be checked)];

Valuation Presentation Date means the next Business Day after the
expiration of the period of 21 Business Days commencing on the date of this
Deed;

Valuation Date means the date of this Deed.

2.2

Time shall be of the essence in relation to all stipulations as to time in
this Attachment unless the Crown and Te Runanga agree otherwise in writing.

3

appointment of valuers

3.1

No later than the next Business Day after the expiration of the period of 5
Business Days commencing on the date of this Deed, the Crown and Te Runanga must
each:

(a)

appoint Registered Valuers and instruct them to assess the Market Value of
each Tribal Property in accordance with this Attachment 11.15; and

(b)

give notice to the other and to the Crown of the identity of each Valuer
appointed and specify the Tribal Properties in respect of which he or she has
been appointed.

3.2

The Crown and Te Runanga must ensure that the terms of appointment of their
respective valuers require them to participate in the process set out in this
Attachment 11.15 in accordance with the terms of this
Attachment 11.15.

4

presentation of crown's valuation reports and Te Runanga's response

4.1

The Crown's Valuer must carry out an inspection of each Tribal Property
owned by the Crown in sufficient time to enable it to comply with paragraph
4.2 by the Valuation Presentation Date. The Crown's Valuer must give at
least 5 Business Days' notice of the date, time and location of each inspection
to the relevant Te Runanga's Valuer and give that valuer an opportunity to
attend the inspection.

4.2

The Crown's Valuer must, in respect of each Tribal Property, prepare a
valuation report which includes the assessment of Market Value of the Tribal
Property and deliver a copy of the report to the Crown and Te Runanga by no
later than the Valuation Presentation Date.

4.3

The Crown's Valuation Reports must:

4.3.1

meet the minimum requirements set out in Section 5 of the New Zealand
Institute of Valuers Practice Standard 3 ("Market Value basis of Valuation") and
other relevant standards insofar as those requirements are consistent with the
express provisions of the Deed and this Attachment 11.15;

4.3.2

include an executive summary containing:

(a)

a summary of valuation along with key valuation parameters;

(b)

a summary of key issues affecting value, if any;

(c)

the name of the valuer and his or her firm; and

(d)

the signature of the valuer and lead valuer if applicable;

4.3.3

include a property report based on the standard referred to in
paragraph 4.3.1; and

4.3.4

attach appendices setting out:

(a)

a statement of valuation policies; and

(b)

relevant market and sales information.

4.4

No later than Te Runanga's Response Date, Te Runanga must give notice in
writing to the Crown that it either accepts or rejects the assessment of Market
Value contained in the Crown's Valuation Report for the Tribal Properties.

4.5

If, in respect of any Tribal Property, Te Runanga gives notice that it
accepts the assessment of the Market Value contained in the Crown's Valuation
Report, that assessment will be the Transfer Value for that Tribal Property for
the purposes of this Deed.

4.6

If, in respect of any Tribal Property, Te Runanga gives notice by the date
referred to in paragraph 4.4 that it rejects the assessment of the Market
Value contained in the Crown's Valuation Report, paragraph 5 will apply
to the determination of the Transfer Value for that Tribal Property.

5

negotiations to agree disputed market values

5.1

Each notice rejecting the assessment of Market Value for a Tribal Property
under paragraph 4.4 must be accompanied by a copy of a valuation report
which contains Te Runanga's Valuer's assessment of the Market Value for every
Tribal Property referred to in the notice. Paragraph 4.3 applies to each
Te Runanga's Valuation Report.

5.2

If, in respect of any Tribal Property, Te Runanga:

(a)

fails to give notice by Te Runanga's Response Date; or

(b)

gives such a notice by that date rejecting the assessment of the Market
Value contained in the Crown's Valuation Report but fails to give Te Runanga's
Valuation Report in accordance with paragraph 5.1,

then Te Runanga may give Te Runanga's Valuation Report by no later than the
next Business Day after the expiration of the period of 5 Business Days
commencing on the Business Day immediately following Te Runanga's Response Date.
If Te Runanga gives Te Runanga's Valuation Report by that date
paragraph 4.6 will apply. If Te Runanga fails to give Te Runanga's
Valuation Report by that date, paragraph 4.5 will apply.

5.3

No later than Te Runanga's Response Date, or (if applicable) on such later
date that Te Runanga gives all its reports under paragraph 5.2, the Crown
and Te Runanga must each appoint and notify the other of the appointment of a
person or persons who will have authority to act as their respective
representatives to negotiate an agreed value for each Disputed Property in
respect of which Te Runanga has rejected the assessment of Market Value.

5.4

The Crown and Te Runanga, through their respective representatives appointed
under paragraph 5.3, must negotiate to attempt to agree the Transfer
Value in respect of each Disputed Property. Where agreement is reached in
respect of a Disputed Property both representatives must sign a statement
identifying the Disputed Property and the amount which the parties have agreed
is the Transfer Value for that Disputed Property and must give a copy of that
statement to the Crown. All such statements must be received by the Crown no
later than the next Business Day after the expiration of that number of Business
Days which equals the number of Disputed Properties commencing on Te Runanga's
Response Date or (if applicable) on such later date that Te Runanga gives all
its reports under paragraph 5.2.

5.5

The amount agreed as the Transfer Value for each Disputed Property in
respect of which the Crown receives a statement under paragraph 5.4 will
be the Transfer Value for that Disputed Property for the purposes of this Deed.

5.6

Where, in respect of any Disputed Property, the Crown does not receive a
statement under paragraph 5.4, the determination of the Transfer Value of
that Disputed Property will be referred to an Arbitrator in accordance with
paragraph 6.

5.7

The Crown's Valuer and Te Runanga's Valuer may, as part of the negotiations,
disclose to the other relevant comparable sales by no later than the earlier of:

(a)

the next Business Day after the expiration of the period of 5 Business Days
commencing on Te Runanga's Response Date or (if applicable) on such later date
that Te Runanga gives all its reports under paragraph 5.2; and

(b)

the date referred to in paragraph 5.4.

6

Determination of disputed values

6.1

No later than the date of expiration of the period of 5 Business Days
commencing on the date referred to in paragraph 5.4, the Crown must give
a notice to Te Runanga allocating all the Arbitrated Properties to one or more
specified Arbitrators and, in respect of each allocation, specifying a date on
which the process set out in this paragraph 6 must commence (which,
subject to paragraph 6.3, will be the Arbitration Commencement Date). In
allocating Arbitrated Properties to the Arbitrator or Arbitrators and specifying
the Arbitration Commencement Date in respect of each allocation, the Crown must
first consult with Te Runanga and have regard to the following principles:

6.1.1

Arbitrated Properties in respect of which the dispute or market conditions
are similar or which have similar characteristics or which are in reasonably
close proximity to each other should be allocated to one Arbitrator;

6.1.2

as few Arbitrators as possible should be used; and

6.1.3

the Market Value for all Arbitrated Properties must be determined by no
later than the date of the expiration of the period of 100 Business Days
commencing on the date of this Deed.

6.2

If Te Runanga does not object to the notice given by the Crown under
paragraph 6.1 within 2 Business Days of receipt, the Crown must
immediately give written notice to each Arbitrator concerned that he or she is
to determine the Market Value for each Arbitrated Property allocated to him or
her under paragraph 6.1 in accordance with this paragraph 6.

6.3

If Te Runanga gives notice within that 2 Business Day period objecting to
the notice given by the Crown under paragraph 6.1, the Crown will
immediately request the President for the time being of the Institute of Valuers
(or its successor) or his or her nominee to allocate the Arbitrated Properties
to the Arbitrators and, in respect of each allocation, to specify a date on
which the process set out in this paragraph 6 must commence having regard
to the matters set out in paragraph 6.1 and the date so specified will
become the Arbitration Commencement Date in place of the date specified under
paragraph 6.1. The Crown must request the President to comply with the
request within 5 Business Days of the Crown's request.

6.4

The Crown must serve a copy of the President's (or his or her nominee's)
determination on Te Runanga immediately on receipt by the Crown of it and must
also immediately give written notice to each Arbitrator concerned that he or she
is to determine the Market Value for each Arbitrated Property allocated to him
or her under that determination in accordance with this paragraph 6.

6.5

Not earlier than the date of expiration of the period of 5 Business Days
commencing on the Arbitration Commencement Date, the Arbitrator must give notice
of a meeting to be attended by the Crown and Te Runanga and their respective
Registered Valuers, at a venue to be decided by the Arbitrator.

6.6

The Arbitrator's notice of the meeting must include a request by the
Arbitrator to the Crown and Te Runanga that they forward to the Arbitrator all
information relating to the assessment of the Market Value of the Arbitrated
Properties allocated to him or her which is in their possession. The Crown and
Te Runanga must ensure that this information is provided to the Arbitrator (and
any submissions or expert evidence based on information already disclosed must
be copied to the other parties) no later than 5.00 pm on the day which is 2
Business Days prior to the date of the meeting.

6.7

The information sent to the Arbitrator by the Crown and Te Runanga (and to
each other) must constitute, in respect of each Arbitrated Property allocated to
him or her, the Crown's Valuation Report, Te Runanga's Valuation Report, sales
evidence disclosed under paragraph 5.7 and any submission or expert
evidence based on that information which the Crown or Te Runanga intend to
present at the meeting.

6.8

At the meeting, the Arbitrator will establish a procedure and give each
party to the arbitration the right to examine, cross examine and re-examine the
Registered Valuers and other experts appointed by the other parties in relation
to the information provided to the Arbitrator and, subject to paragraph
6.7, otherwise have regard to the requirements of natural justice in the
conduct of the meeting.

6.9

The Arbitrator must hold the meeting and give his or her determination of
the Market Value of each Arbitrated Property allocated to him or her by no later
than the next Business Day after the expiration of the period of 35 Business
Days commencing on the Arbitration Commencement Date.

6.10

Once the Arbitrator has determined the Market Value he or she must
immediately serve notice on the Crown and Te Runanga of his or her decision.

6.11

The Transfer Value of each Tribal Property for the purposes of this Deed
shall be the Arbitrator's determination of the Market Value. That determination
shall be:

6.11.1

no higher than the higher of the assessment of Market Value contained in the
Crown's Valuation Report and Te Runanga's Valuation Report'; or

6.11.2

no lower than the lower of the assessment of Market Value contained in
''''those reports.

6.12

The determination of the Arbitrator will be final and binding on the Crown
and Te Runanga and the persons claiming under them. No person will have any
right of appeal against, or review of the decision of the Arbitrator in relation
to any matter of fact or law or procedural irregularity or any other grounds
other than misconduct by the Arbitrator. If, however, the determination is
appealed, clauses 11.2.22 to 11.2.29 of this Deed, and this
Attachment 11.15 will continue to apply as if the determination were
final and binding but an adjusting payment will be made if necessary once the
appeal is concluded.

6.13

The Arbitrator must not make an interim decision.

6.14

Notwithstanding any other provision in this paragraph 6, the
Arbitrator may, if he or she thinks fit, prescribe an alternative procedure for
determining the matters in dispute so long as the determination is given by the
date referred to in paragraph 6.9 or any later date agreed by all parties
and does not limit the rights of the parties referred to in paragraph
6.8.

7

establishment of arbitrators panel

7.1

The Crown and Te Runanga will, in accordance with this paragraph 7,
establish a panel of 2 persons who are independent, sufficiently qualified and
experienced to be considered experts in the area of determination of values of
the types of properties comprising the Tribal Properties and who are ready,
willing and able to act as Arbitrators.

7.2

The Crown may appoint 1 such person in consultation with Te Runanga and Te
Runanga may appoint 1 such person in consultation with the Crown. The Crown and
Te Runanga must both have discharged their obligation to consult and appoint
such persons by the expiration of the period of 41 Business Days commencing on
the date of this Deed. If either of them fails to do so, the panel will consist
only of the persons appointed by the other party until the party which has
failed to consult and appoint does so.

7.3

An appointment under this paragraph will not be properly made until the
Arbitrator has confirmed in writing to the Crown and Te Runanga that he or she
has read and understood clauses 11.2.22 to 11.2.29 of this Deed
and this Attachment 11.15 and that he or she will conduct an arbitration
in accordance with this Attachment 11.15 on receipt of and in accordance
with a notice received under paragraph 6.2 or paragraph 6.4.

8

general provisions

8.1

Subject to clause 17.2.2 the Crown and Te Runanga shall each bear
their own costs in connection with the process set out in this
Attachment 11.15. The costs of the Arbitrator and the costs of the hire
of a venue for the meeting referred to in paragraph 6.5 (if any) shall be
borne by the Crown and Te Runanga equally. However, in appropriate cases, the
Arbitrator may award costs against Te Runanga or the Crown where the Arbitrator
considers that it would be just to do so on account of unreasonable conduct.

8.2

The Crown and Te Runanga each acknowledge that they are required to use
reasonable endeavours to ensure the process set out in this
Attachment 11.15 operates in the manner, and within the timeframes,
specified in this Attachment 11.15.

8.3

If the procedure set out in this Attachment 11.15 is delayed through
any event (such as the death or incapacity of any Registered Valuer or
Arbitrator), the Crown and Te Runanga will use reasonable endeavours and
co-operate with each other to minimise the delay.

8.4

Te Runanga may, in respect of any Tribal Property, give a written proposal
to the Crown setting out details of a revised timeframe for the processes set
out in this Attachment 11.15 relevant to that Tribal Property. If, in the
opinion of the Crown, the proposal is reasonable and administratively workable
the Crown may agree in writing to that proposal in which case this
Attachment 11.15 will be deemed to be varied in respect of that Tribal
Property to the extent necessary to give effect to the proposal.

ATTACHMENT 11.16

south BAY/KAIKOURA PENINSULA

(Clause 11.3.2)

ATTACHMENT 11.17

MOTURATA (TAIERI ISLAND)

(Clause 11.3.3)

ATTACHMENT 11.18

huriawa

(Clause 11.3.4)

ATTACHMENT 11.19

MAPOUTAHI PA

(Clause 11.3.5)