VOLUNTARY PROPERTY
PURCHASE PROGRAM

Clarification Questions and Answers

Why is Sasol offering this Program?
Sasol recognizes that our growth plans and related property acquisitions will result in the expansion of our facility toward our neighbors to the west and northwest of our existing facility. Although a final decision on whether to start construction on the world-scale ethane cracker and GTL facility will not be made until 2014 and 2016, respectively, we are taking steps now to address the concerns of our neighbors. Sasol continuously strives to be a good corporate citizen and in the spirit of being a good neighbor to those residents that will be affected by our growth plans, we are offering our residential neighbors to the west and northwest of our existing operations an opportunity to sell their Properties to Sasol and move to a residential area of their choice.

Why isn’t Sasol offering the Program to other plant neighbors?
Sasol recognizes that our growth plans and related property acquisitions will result in the expansion of our facility toward our neighbors to the west and northwest of our existing facility. The Program will give those Property Owners and residents affected by the company’s growth plans the option to sell their Property to Sasol, and relocate to an alternative neighborhood, if they so choose.

How do interested parties find out more about the Program?
CIC will open an Information Center in the community in early August and launch a website, www.sasolvppp.com to provide Program specifics, timelines and contact information. CIC will also host small group information sessions at the Information Center for prospective residents and sellers around mid-August. Additional information on the opening date for the Information Center and scheduling of the information sessions will be provided as soon as it is available.

Why has it taken so long for Sasol to look seriously at relocating its nearest community neighbors?
Since commencing the front-end engineering and design (FEED) phase for our U.S. growth projects, Sasol has engaged with our neighbors to understand and address specific community needs and concerns. During this process, we received a number of requests from our near neighbors, a voluntary property purchase program being one such request.

What if an Owner or Tenant decides not to participate in the Program or to not accept Sasol’s Offer?
Your participation in the Program is entirely voluntary. You are under no obligation to participate in the Program or to request an appraisal from Sasol. And even if you do register your interest to participate in the Program and request an appraisal, you are not obliged to accept any Offer that Sasol may make to you.
However, if you have decided to participate in the Program and you have accepted Sasol’s Offer and signed the Purchase and Sale Agreement you will have to vacate the Property at Closing.

Will Sasol offer to purchase commercial property and places of worship within the Program Area?
The Program does not cover commercial properties or places of worship. Commercial property owners and religious leaders within the Program Area may approach Sasol to consider the purchase of their properties by contacting a CIC representative at the Information Center. Sasol will consider such requests from commercial property owners or religious leaders on a case-by-case basis.

Does Sasol have any plans to build operating facilities on the property it purchases?
Sasol does not have any plans to use the acquired property for operations or any other purpose, at this time.

By when do I have to register my interest to participate in the Program?
Property Owners will have from August 12, 2013 to December 4, 2013 to register their interest in participating in the Program by completing and submitting Appraisal Request and Authorization Forms to a CIC representative at the Information Center. Tenants also have until December 4, 2013 to register their interest in participating in the Program by completing and submitting a Renters Benefits Request Form to a CIC representative.
As stated above, in order to qualify for the Early Sign-up Bonus that is payable upon closing, a Property Owner (as defined) or Tenant (as defined) will need to register their interest in participating in the Program and complete and submit an Appraisal Request and Authorization Form and Renters Benefit Request Form, respectively before October 4, 2013.

How do I determine if my property falls within the Program area?
You can determine if your property falls within the Program Area by referring to the Program Area description on pages 7 and 8, which is in the form of an aerial map containing a list of the streets along which the relevant properties are located. Alternatively, you can contact a CIC representative at (337) 310-8200 or visit the Information Office at the former Mossville Elementary School located at 3301 Old Spanish Trail Westlake, LA 70669.

Can I participate in the Program and the Program Benefits if my property does not fall within the program area?
No, unfortunately the Program only applies to Property located within the Program Area as identified on pages 7 and 8. If your property falls outside the Program Area you will therefore not be able to participate in the Program Benefits.

How do i know if i qualify to participate in the Program?
You qualify to participate in the Program if you, as of July 12, 2013:

  • owned, and had title to either an Improved Property or an Unimproved Property in the Program Area; or
  • are a Tenant and your landlord participates in the Program.

If you are still unsure if you qualify for the Program, contact a CIC representative at (337) 310-8200 or visit the Information Office at the former Mossville Elementary School located at 3301 Old Spanish Trail Westlake, LA 70669.

I rent property together with one or more other co-tenants. Will each of us be individually entitled to benefit under the Program, or will we share the benefits jointly?
Co-tenants are viewed as a single Tenant for the purposes of the Program. Therefore, co-tenants will share the benefits jointly.

Do I have to accept Sasol’s offer to purchase my property?
No, the Program is entirely voluntary. You are under no obligation to accept any Offer that Sasol may make to you.

How can I start talking to Sasol about my participation in the Program?
CIC, a real estate and communications services company, will administer the Program on behalf of Sasol. Should you desire, a CIC representative is available to meet with you privately to go over all the features of the Program and assist you in understanding Program options available to you. We invite you to meet with a CIC representative at the former Mossville Elementary School located at 3301 Old Spanish Trail Westlake, LA 70669 or phone the Information Office at (337) 310-8200 to discuss how the Program features may benefit you.

Will Sasol consider buying my property if I can’t clear my title after taking advantage of the Curative Title Allowance?
Sasol may consider, on a case-by-case basis, to accept less than perfect title.

How is the Average Appraised Price calculated?
If the difference between the two appraisals requested by CIC is:

  • equal to, or less than 10% of the higher appraisal, then the average of the two appraisals will be equal to the
    Average Appraised Price for purposes of determining the Offer for the Property; or
  • greater than 10% of the higher appraisal, the CIC representative will arrange for an appraisal by the third (reserve)
    appraiser of your choice. The two highest appraised prices will then be averaged to establish the Average Appraised Price for purposes of determining the Offer for the Property.

In example #1, the higher appraisal is $150,000. This means that the lower appraisal must be within 10% of $150,000 or $15,000. Since the two appraisals are only $2,000 apart, a third appraisal is not required. The two appraisals are averaged to establish the Average Appraised Price of $149,000.

In example #2, the higher appraisal is $150,000. This means that the lower appraisal must be within 10% of $150,000 or $15,000. Since the appraisals are $16,000 apart, this means a third appraisal must be done. Now, out of the three appraisals, the two higher appraisals are averaged to establish the Average Appraised Price of $148,000.

  Appraisal #1 Appraisal #2 Appraisal #3 Average Appraised Price
Example #1 $150,000 $148,000 not required 149,000
Average of $150,000 and $148,000
Example #2 $150,000 $134,000 $146,000 $148,000
Average of $150,000 and $146,000

Only improvements on the Property as of July 12, 2013 will be considered in the appraisal.

I own and occupy a Property in the Program Area. How will the Purchase Price of my Property be calculated? What other Program Benefits will I qualify for?

The examples below are indicative of an Offer and potential Program Benefits available to an Owner Occupant:

Average Appraised Price is

equal to, or greater than $100,000

less than $100,000
Average Appraised Price 150,000 90,000
Higher of Average Appraised Price or Minimum Appraised Price 150,000 100,000
Premium Payment at 60% of Average Appraised Price 90,000 54,000
Offer Price 240,000 154,000
Early Sign-Up Bonus 1,000 1,000
Miscellaneous Expense Allowance 8,000 8,000
Rent Disruption Allowance* - -
Professional Advice Allowance 500 500
Clear Site Bonus (maximum) 15,000 15,000
Potential Program Benefits available to Unimproved Property Owner 167,500 178,500

* Rent Disruption Allowance of $1,000 will be available to an Owner Occupant if he/she also owns and leases an Improved Property to a Tenant

An Owner Occupant will furthermore qualify for the payment of a:

  • maximum Closing Cost Assistance Allowance of $5,000 toward normal and customary buyer closing costs for a new home outside of the Program Area, which will be payable directly to the closing agent; and
  • maximum Curative Title Work Allowance of $5,000 to cover legal costs associated with curing title problems payable directly to the law firm.

I own a Property in the Program Area that I rent out to a third party. How will the Purchase Price of my Property be calculated? What other Program Benefits will I qualify for?

The examples in the table below are indicative of an Offer and potential Program Benefits to a Rental Property Owner:

Average Appraised Price is

equal to, or greater than $75,000

less than $75,000
Average Appraised Price 100,000 70,000
Higher of Average Appraised Price or Minimum Appraised Price 100,000 75,000
Premium Payment at 50% of Average Appraised Price 50,000 35,000
Offer Price 150,000 110,000
Early Sign-Up Bonus 1,000 1,000
Rent Disruption Allowance* 1,000 1,000
Professional Advice Allowance 500 500
Clear Site Bonus (maximum) 15,000 15,000
Potential Program Benefits available to Unimproved Property Owner 167,500 127,500

A Rental Property Owner will furthermore qualify for the payment of a maximum Curative Title Work Allowance of $5,000 to cover legal costs associated with curing title problems payable directly to the law firm.

I own a vacant, Unimproved Property in the Program Area. How will the Purchase Price of my Property be calculated? What other Program Benefits will I qualify for?

The examples in the table below are indicative of an Offer and potential Program Benefits for an Unimproved Property Owner:

Average Appraised Price is equal to, or greater than $5,000 less than $5,000
Average Appraised Price 7,000 4,000
Higher of Average Appraised Price or Minimum Appraised Price 7,000 5,000
Premium Payment at 40% of Average Appraised Price 2,800 1,600
Offer Price 9,800 6,600
Early Sign-Up Bonus 1,000 1,000
Professional Advice Allowance 500 500
Clear Site Bonus (maximum) 15,000 15,000
Potential Program Benefits available to Unimproved Property Owner 26,300 23,100

An Unimproved Property Owner will furthermore qualify for the payment of a maximum Curative Title Work Allowance of $5,000 to cover legal costs associated with curing title problems payable directly to the law firm.

 

 

 

 

 

 

Letter from Sasol  |  Introduction  |  Program Area  |  Property Owner  |  Tenants  |  Description of Program Benefits
Program Definitions  |  Clarification Questions and Answers  |  Appraiser Instructions
Sasol Appraisal Request and Authorization Form  |  Sasol Renters Benefits Request Form  |  FAQs

 

Sasol appointed Community Interaction Consulting, Inc. to administer the Voluntary Property Purchase Program. This Program is entirely voluntary.