TULBAGH MOUNTAIN VINEYARDS - Multilateral …. Undertake a desktop review of the property to set up an environmental checklist (Appendix 1) of the biophysical and socioeconomic characteristics

Tulbagh Mountain Vineyards: Environmental Due Diligence

WITHERS ENVIRONMENTAL CONSULTANTS

TTUULLBBAAGGHH MMOOUUNNTTAAIINN VVIINNEEYYAARRDDSS

TULBAGH HOLDINGS LLC

DRAFT

DUE DILIGENCE REPORT

ENVIRONMENTAL DUE DILIGENCE REPORT FOR THE TULBAGH MOUNTAIN VINEYARDS ESTATE LOCATED ON PORTIONS 2 AND 3 OF

THE FARM WELTEVREDEN NO. 239, TULBAGH, SOUTH AFRICA

Compiled by: C.D. Cilliers and A.W. Withers August 2010 (Revision 1)

ENVIRONMENTAL PLANNING tel +27 21 887 4000 fax +27 21 883 2952 IMPACT ASSESSMENTS email [email protected] web www.withersenviro.co.za MANAGEMENT SYSTEMS address P.O. Box 6118 Uniedal 7612



Job No. 10/06/1238

TABLE OF CONTENTS

1. INTRODUCTION ............................................................................................................................................................. 1 2. TERMS OF REFERENCE ................................................................................................................................................ 2 3. GENERAL BIOPHYSICAL DESCRIPTION OF THE TULBAGH MOUNTAIN VINEYARDS ESTATE ................. 3 3.1 Cadastral Units and Location ...................................................................................................................................... 3 3.2 Climate ........................................................................................................................................................................ 3 3.3 Soils and Geology ....................................................................................................................................................... 4 3.4 Hydrogeology and Hydrology of the TMV Estate ...................................................................................................... 5 3.5 Vegetation ................................................................................................................................................................... 6 4. SOCIO – ECONOMIC DESCRIPTION OF THE TULBAGH MOUNTAIN VINEYARDS .......................................... 7 4.1 Current Zoning and Land Use ..................................................................................................................................... 7 4.2 Buildings and Staff ...................................................................................................................................................... 7 4.3 Infrastructure on the TMV Property ............................................................................................................................ 8 4.4 Current Farming Practices and Future Operational Phase Management of the Farm ................................................. 9 5 ENVIRONMENTAL LEGAL FRAMEWORK ASSOCIATED WITH THE OPERATION OF THE TMV ESTATE 10 5.1 Land Use Planning Ordinance (Ordinance 15 of 1985) (LUPO) .............................................................................. 10 5.2 National Environmental Management Act (Act 107 of 1998) (NEMA) ................................................................... 10 5.3 National Water Act (Act 38 of 1998) (NWA) ........................................................................................................... 11 5.4 National Environmental Management: Waste Act (Act 59 of 2008) (NEM:WA) .................................................... 11 5.5 The Regulations of the Conservation of Agricultural Resources Act (Act 43 of 1983) (CARA) ............................. 12 5.6 National Heritage Resources Act (Act 25 of 1999) ................................................................................................... 12 5.7 Occupational Health and Safety (OSH) Act (Act 85 of 1993) as amended by the Occupational Health and Safety Amendment Act (Act 181 of 1993) ......................................................................................................................................... 12 5.8 Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act (Act 36 of 1947) as amended ................. 13 5.9 Basic Conditions of Employment Act (Act 75 of 1997) ........................................................................................... 13 6. ENVIRONMENTAL OPPORTUNITIES AND CONSTRAINTS OF THE FARM ...................................................... 13 6.1 Opportunities ............................................................................................................................................................. 13 6.1.1 Easy Access to Export and Internal Markets ............................................................................................................. 13 6.1.2 Ecotourism ................................................................................................................................................................ 13 6.1.3 Alien Vegetation Clearing ......................................................................................................................................... 14 6.1.4 Commercial Spring Water Production ...................................................................................................................... 14 6.1.6 Green Building Practices ........................................................................................................................................... 15 6.2 Constraints ................................................................................................................................................................. 15 6.2.1 Visual Impact ............................................................................................................................................................ 15 6.2.2 Sensitive Vegetation .................................................................................................................................................. 15 6.2.3 Road Access to the TMV Estate ................................................................................................................................ 16 6.2.4 Alien Vegetation Clearing ......................................................................................................................................... 16 6.2.5 Fire Management ....................................................................................................................................................... 16 6.2.6 Wild Animals ............................................................................................................................................................ 16 6.2.7 Alien Fish and Bird Species ...................................................................................................................................... 16 6.2.8 Sewage and Effluent Treatment ................................................................................................................................ 17 6.2.9 Electricity and Potable Water Provision .................................................................................................................... 17 6.2.10 Global Climate Change ........................................................................................................................................ 17 7. CONCLUSIONS AND RECOMMENDATIONS .......................................................................................................... 19 7.1 Vegetation ................................................................................................................................................................. 19 7.2 Damage Caused by Wild Animals ............................................................................................................................ 19 7.3 Fire Management ....................................................................................................................................................... 19 7.4 Potable Water ............................................................................................................................................................ 19 7.5 Sewage and Cellar Wastewater ................................................................................. Error! Bookmark not defined. 7.6 Electricity Requirements ........................................................................................................................................... 20 7.7 Road Access .............................................................................................................................................................. 20 7.8 Tourism Development Potential ................................................................................................................................ 20 7.9 Visual Sensitivity ...................................................................................................... Error! Bookmark not defined. 7.10 Zoning, Current and Future Land Use ....................................................................................................................... 20 7.11 Closing Summary ...................................................................................................... Error! Bookmark not defined.



1

1. INTRODUCTION

Tulbagh Holdings LLC has appointed Withers Environmental Consultants to undertake an environmental Due Diligence of the Tulbagh Mountain Vineyards, near the rural, historic town of Tulbagh, Western Cape Province, South Africa (Figure 1). The property, known as Die Fonteine (the Fountains), comprises two cadastral entities, namely: Portion 2 of the Farm Weltevreden No. 239 and Portion 3 (a portion of Portion 2) of the Farm Weltevreden No. 239 (herewith collectively referred to as the “property”, “farm” or “estate” below)( Figure 2).

The current owners purchased the farm in 1999, which was previously operated first as a cattle stud farm (with irrigated pastures) and as a spring water bottling plant. Vineyards were planted on the old pasture lands in 2000.

The agricultural enterprise in operation on the Estate comprises the Tulbagh Mountain Vineyards producing a brand of certified premium organic wines, producing about 60 000 bottles of wine per annum from ± 15 hectares of vineyards. The vineyards are situated on prime agricultural soils, on a northwest facing spur of the majestic Witzenberg Mountain range (Photo 1). The 140-ton cellar was built in 2002 (Photos 3 and 13) and the first vintage was produced in 2003.

Tulbagh Holdings LLC is in the process of purchasing the Estate. The Environmental1

Due Diligence (EDD) being undertaken is to assist Tulbagh Holdings LLC with their final analysis of the purchase of the property. The aim of the EDD is to ensure that Tulbagh Holdings LLC is fully aware of the environmental constraints and opportunities of the property and business enterprise that they wish to purchase and to remove any significant risk from such a decision. The terms of reference (TOR) for the EDD is provided below.

1 “Environment” (as defined in the National Environmental Management Act, 1998 (Act 107 of 1998)) means the surroundings within which humans exist and that are made up of- (i) the land, water and atmosphere of the earth; (ii) micro-organisms, plant and animal life; (iii) any part or combination of (i) and (ii) and the interrelationships among and between them; and (iv) the physical, chemical, aesthetic and cultural properties and conditions of the foregoing that influence human health and well-being.



2

2. TERMS OF REFERENCE

The Terms of Reference for the Environmental Due Diligence is as follows:

1. Undertake a desktop review of the property to set up an environmental checklist (Appendix 1) of the biophysical and socio-economic characteristics of Tulbagh Mountain Vineyards property and the legal frameworks within which the Estate operates, so as to assist in the compilation of the due diligence report to be used by Tulbagh Holdings with their final analysis in the purchase of the property.

2. The Environmental Due Diligence report must contain on an environmental evaluation of the farm to get an understanding of its environmental characteristics (biophysical and socio-economic constraints and opportunities) and the natural processes prevailing on the property.

3. The Environmental Due Diligence report must describe the relevant conclusions and recommendations of the findings, inter alia, to report on the status quo of the biophysical characteristics of the property and its wine making operations and the legal framework within which such operations currently take place, and to provide suggestions to improve the current farming practices and management of the natural ecosystems on the property.

4. The Environmental Due Diligence report should suggest any specialist studies that may be required to provide additional information and/or to mitigate any environmental degradation that may be taking place on the property.

5. The Environmental Due Diligence report should put forward any recommendations for enhancing the economic potential of the property and for ensuring that its operations are legally compliant with the countries legal system.

The information contained in this Due Diligence report is intended to assist Tulbagh Holdings LLC in their decision making process regarding an appropriate “way forward” with respect to the proposed purchase and future management needs of the Estate.



3

3. GENERAL BIOPHYSICAL DESCRIPTION OF THE TULBAGH MOUNTAIN VINEYARDS ESTATE

3.1 Cadastral Units and Location

The Tulbagh Mountain Vineyards (TMV) Estate comprises the following two properties (Figure 3):

• Portion 2 of the Farm Weltevreden No. 239, Tulbagh;

• Portion 3 (a portion of Portion 2) of the Farm Weltevreden No. 239, Tulbagh;

The TMV is located within the Witzenburg Local Municipality jurisdiction area, which covers the towns of Tulbagh, Ceres, Prince Alfred Hamlet and Wolseley. The TMV is located on a northwest-facing slope of the Witzenburg Mountains in the Tulbagh Valley (Photo 1), approximately 120km northeast from Cape Town. Access is off the R46 Road that connects the town of Tulbagh with Wolseley some 6km to the southwest, and with Worcester some 45km to the south east (Figure 1).

The Title Deed for Portion 2 indicates an area of 183,9919ha (Appendix 2).

Approximately 15.02 ha of Portion 2 of the property is under vineyards of various cultivars (Photo 2 and Figure 2). A 140-ton cellar produces wines sold under the TMV label (Photo 3).

3.2 Climate

The Tulbagh district has a typically Mediterranean climate, which normally receives about 567mm of rain per year, most of which falls during winter (Figure 4). Tulbagh receives the lowest rainfall (11mm) in January and the highest (105mm) in June. The average midday temperatures for Tulbagh range from 17.3°C in July to 30.8°C in February. The region is the coldest during July with average night time temperatures of 5.2°C (Author(s) Unknown, 2010a). The southern side of the valley (where TMV is situated) is open to cooling southeast winds during the hot, dry summer months (Author(s) Unknown, 2010b), making the climate perfectly suited to viticulture, and to growing red grape cultivars in particular.

Figure 4 depicts clima-diagrams for two of the main vegetation types that occur on the TMV Estate.

Figure 4: Blue bars show the median monthly precipitation. The upper and lower red lines show the mean daily maximum and minimum temperatures respectively. MAP: Mean Annual precipitation APCV: Annual Precipitation Coefficient of Variation; MAT: Mean Annual Temperature; MFD: Mean Frost Days (days when screen temperature was below 0 degrees centigrade); MAPE: Mean Annual Potential Evaporation; MASMS: Mean Annual Soil Moisture Stress (% of days when evaporative demand was more than double the soil moisture supply) (Mucina and Rutherford 2006).



4

3.3 Soils and Geology The types of natural vegetation that occur (or would have previously occurred) in the Tulbagh valley are indicative of the underlying geology and associated soil types.

Mucina and Rutherford (2006) describe the underlying geology and soils of the natural vegetation type Winterhoek Sandstone Fynbos, which occurs on the slopes of the Witzenberg Mountains, as follows: Acidic lithosol soils derived from Ordovician quartzitic sandstones (400 Ma) of the Table Mountain Group (Cape Supergroup).

According to Mucina and Rutherford (2006) the underlying geology and soils of the natural vegetation type Breede Shale Fynbos (Photo 4), which occurs on the upper slopes of the TMV, is as follows: Acidic, moist clay loam, Glenrosa or Mispah soil forms derived from Malmesbury Group Shales (Photo 5).

The Breede Shale Renosterveld (Photo 6) which occurs on the lower slopes of the TMV is characterised by clays and loams, mostly derived from the Porteville Formation phyllite / shale of the Malmesbury Group in the northwest (TMV is located near the north western boundary of this vegetation type). These dominant soils comprise Glenrosa and Mispah soil forms.

The Breede Alluvium Fynbos, which would have occurred along the river, near the valley bottom (Figure 2) is characterised by Quarternary alluvial deposits consisting of round cobbles embedded in fine loamy sand, over lying metasediments (shales) of the Malmesbury Group shales.



5

3.4 Hydrogeology and Hydrology of the TMV Estate Three natural springs occur on the TMV Estate (Figure 2), which were previously utilised to produce commercially available bottled mineral water (trade name “Tulbagh Mountain Dew”). Rudimentary infrastructure for such an operation is still in place. It is envisaged that these springs are associated with large scale normal NW – SE trending faults in the valley. These faults are probably associated with the Worcester fault, which gave rise to the Tulbagh earthquake of 1969, which destroyed a number of houses in the town.

The volumes of the three dams on the Estate are:

• Dam 1: ±20 000m³ • Dam 2: ±60 000m³ • Dam 3: ±10 000m³

Dam 1 is fed directly from the Adams River, through a weir system (Photo 8) and overflows into Dam 2 (Photo 9). Dam 2 is the primary dam and has a pump station connected with a filtration system, which irrigates the vineyards (drip irrigation). Dam 3 is fed by the aforementioned perennial spring that runs at about 30m³/hour and is connected to Dam 2 via an underground PVC pipe. The wall of Dam 3 has been damaged (partially collapsed) and needs to be professionally (engineering design and supervision) repaired.

Water use from the above springs and streams, diversion of water by means of the weir system and storage in the above dams was registered in favour of the then Tulbagh Water Company (Pty) Ltd. with the Department of Water Affairs (DWA) in terms of the National Water Act (NWA), 1998 (Act 38 of 1998) (Appendix 4).

Water use rights have also been entrenched in the Title Deeds for the property (Appendix 2) and, according to the winegrower at the TMV Estate, Mr. Paul Nicholls, there are also a number of servitude rights in place for downstream users (refer to Title Deeds).



6

3.5 Vegetation Historically, the TMV Estate would have been vegetated by four main vegetation types, namely:

• Breede Shale Fynbos on the upper slopes of the TMV (classified as Vulnerable in terms of conservation status by the South African National Biodiversity Institute2

• Breede Shale Renosterveld on the lower slopes of the TMV (classified as Vulnerable);

);

• Breede Alluvium Fynbos along the bottom of the valley, alongside the river (classified as Endangered) (Mucina and Rutherford, 2006) and

• Southern Afrotemperate Forest (Least Threatened) elements within the riverine habitats of the TMV and the Witzenberg Forest Reserve.

Winterhoek Sandstone Fynbos (classified as Least Threatened) occurs on the higher slopes of the Witzenberg Mountains, within the Witzenberg Forest Reserve (Figure 3).

Currently the undisturbed vegetation types of the TMV comprise Breede Shale Fynbos (Photo 4) and Breede Shale Renosterveld (Photo 6), while forest elements survive in deep, protected, moist kloofs (deep, steep-sided, narrow rocky valleys) and along the streams (Photo 10). Breede Shale Renosterveld and Fynbos have also returned to some previously ploughed / contoured areas on the property through natural succession and remnant bulbs and seeds stored in the soils (refer to the aerial Photograph of the property, Figure 2).

The species diversity (and thus conservation value) of the natural vegetation on the upper slopes of the TMV Estate (Breede Shale Fynbos) appears to be higher than the species diversity of the vegetation occurring on the lower slopes (Breede Shale Renosterveld).

Any remnant patches of Breede Alluvium Fynbos, which may still occur on the property, (refer to Figure 2) are highly conservation worthy (due to the Endangered classification of that vegetation type). Research has shown that plant species can persist in very small fragments, even in an agricultural matrix (Kemper et al. 1999 in Cowling 2010).

Ecotone areas, where the Renosterveld and Fynbos vegetation types merge (Figure 2), are also conservation worthy since such habitats are especially conducive to speciation / evolution and generally contain a greater number of rare plant species.

Alien vegetation, (predominantly Pine trees, with a number of different Australian Acacia species interspersed) has invaded the abovementioned natural vegetation types on the property and its water courses, and occurs in medium to dense stands (50 - 70% canopy cover).

The estimated total area of medium to dense alien vegetation in the naturally vegetated areas and along the stream courses is currently approximately 80 to 85ha. About 10ha of low density alien vegetation is also present on the property.

2 Mucina and Rutherford (2006:93)



7

4. SOCIO – ECONOMIC DESCRIPTION OF THE TULBAGH MOUNTAIN VINEYARDS A general description of the socio-economic characteristics of the TMV is provided below. It should be noted that the economic viability of the farm does not form part of this due diligence assessment. 4.1 Current Zoning and Land Use Approximately 600m2 of Portion 2 of the Farm Weltevrede No. 239 been rezoned to Agriculture Zone II to accommodate the wine cellar and bottling plant, while the remainder of the farm is zoned Agriculture Zone I, to be used for the primary production of agricultural products (Appendix 6).

Since there are no approved zoning maps (from Spatial Development Frameworks or the older Structure Plans) available for Tulbagh and the surrounding rural areas, the applicable Zoning Scheme for the area is by default the Zoning Scheme in terms of Section 8 of the Scheme Regulations of the Land Use Planning Ordinance, 1985 (Ordinance 15 of 1985) (LUPO). Such Section 8 Scheme Regulations allow for any activities associated with the primary use of agriculture, but does not include the Consent Uses applicable to such an Agricultural zoning. The Consent Uses are: additional dwelling units, farm store, farm stall, intensive farm feeding lots, riding school, nursery, service, trade and tourist facilities. Tourist facilities, as defined in the LUPO, do not however include overnight accommodation, viz. “Tourist facilities means amenities for tourists such as lecture rooms, restaurants, gift shops and restrooms permitted by the Council as a consent use, but does not include overnight accommodation”.

The Witzenberg Municipality has deemed the existing wine cellar as a legally acceptable agricultural land use (since it is associated with the primary use of agriculture).

Approximately 15.02 ha of the TMV Estate have been planted to vineyards. Cultivars include Syrah (Shiraz) (8.65ha), Mourvedre (5.05ha) and Cabernet Sauvignon (1.32ha) (Figure 2).

Approximately 70 ha of pastureland have been planted to kikuyu grass, Pennisetum clandestinum, which was originally irrigated, but has now fallen into disrepair (Paul Nichols, pers comm., June 2010). Approximately 120 organically certified sheep utilize the kikuyu pastures (Photo 11). 4.2 Buildings and Staff Buildings on the TMV Estate comprise the following:

• A 140-ton wine cellar, built in 2002 (Photos 3 and 13). The first vintage was produced in 2003;

• A main farmhouse. The main face brick farmhouse, which is not a historic building, has 4 bedrooms, 2 ½ bathrooms, kitchen, dining room, a swimming pool and 4 garages (the main farmhouse is situated on Portion 3 of the Farm Weltevreden No. 239);

• A three bedroom Cape Dutch styled house was built on Portion 2 of the Farm Veltevreden in 1949 (Photo 14). This house is used for housing guests and the current owners of the property. Being older than 60 years, a permit would have been required from Heritage Western Cape in terms of the National Heritage Resources Act, 1999 (Act No. 25 of 1999) for its recent renovation;

• An un-occupied one-bedroom guest cottage, which has a kitchenette and bathroom;

• Three farm workers cottages, one of which is occupied by way of a short term rental agreement by one of the employees of TMV (Appendix 7); and



8

• A number of outbuildings (stables, storerooms, sheds) are also located on the property.

In terms of permanent staff, there are currently two winegrowers/wine makers living in the main farmhouse on the TMV Estate, a cellar assistant, foreman and a driver.

Casual farm labourers are hired on an ad hoc basis, as and when necessary, to maintain the vineyards, sheep and the remainder of the property. The casual staff used on the farm, reside in the nearby town of Wolseley and are transported to work each day. During the harvest, the number of temporary labourers is increased as required.

Marketing, client relationship management and cost control are undertaken by the current owners of the TMV Estate, who do not live on the farm. A part time bookkeeper assists with the financial management of the TMV enterprise twice a week.

4.3 Infrastructure on the TMV Property Electricity:

The electricity Supply Authority for this area is Eskom. Electrical services (three transformers on the property) are fed from the existing 11kVA overhead line. The major National grid feed, comprising 80kVA overhead line is aligned in an approximate N-S direction, within a registered servitude in favour of Eskom across the western sector of the property.

There are currently no stand-by generators on the TMV Estate.

Potable Water:

Potable water is sourced from the perennial springs on the property. The spring water gravitates into 2 x 5000L tanks. The water is then pumped up into 2x 5000L tanks on higher ground, which then gravities to the houses and cellar, where it is then pumped around the winery. In the case of long power outages, sufficient storage of water may not be available to the houses and cellar and it is therefore recommended that greater storage capacity of potable water be provided.

Sewage:

Sewage is currently managed by means of septic tanks and soak-away systems, which drain into the ground, potentially contaminating groundwater. Because of the relatively impermeable clays derived from the weathering of shale, the efficiency operation of the soak-away systems is questioned. As such, it is possible that poorly treated sewage then finds its way into marshy areas and river courses, which potentially causes pollution of the soils and water courses and wetlands of the area.

Sewage volumes generated are currently low, since there are an average between 10 and 20 people on the property on any given day, i.e. ± 1750 litres of sewage could be generated per day.

Cellar Lees and Wastewater:

Cellar lees (± 2000L / annum) is currently removed off site by a private DWA-registered company, viz: “Brenn-O-Kem”, while cellar wastewater gravitates to a tank and is aerated and irrigated onto kikuyu grass paddocks (Photo 15).

Winery (stalks, skins and seeds) and garden biodegradable solid waste is composted on site (refer to Photo 11) to be used on the farm. Glass and cardboard are stored on site in separate bins, which are taken for recycling when full. The cardboard is taken to a pick up point in Ceres (a cardboard recycling bin). The glass is taken into Tulbagh, where it is donated to the Busy Bee Craft Centre, who collect glass to help with the funding of their projects. Other general waste is placed in a skip, which is serviced by the local Municipality and disposed of at a licensed Municipal waste disposal facility.



9

Access Roads and Internal Farm Roads and Tracks:

A gravel Municipal district road (Weltevreden Road) provides access to the various Weltevreden Farms off the R46 Road between Tulbagh and Ceres (Figure 1).

The Witzenburg Municipality maintains (a mechanical grader) the gravel Weltevreden access road to the TMV from time to time. The vertical alignment design and maintenance of the gravel district road is poor. As a result stormwater runs down on either side of the access road. The stormwater crossing over the road at low points, causing erosion and dangerous driving conditions (Photo 16).

The road should be maintained so that it slopes only to the northern side and engineering solutions should be sought in specific areas where water crosses the road (e.g. the placement of concrete pipes under the road). Diagonal earth berms should also be constructed to divert stormwater off the road into the channels, which runs on either side of the Weltevrede road.

Fencing and Security:

The Estate is fenced on 3 boundaries (north, west and south), with a 6-strand wire fence. “AC security”, an armed response company, is contracted to the Estate.

4.4 Current Farming Practices and Future Operational Phase Management of the Farm

The TMV Estate currently employs an agroecological approach to wine farming. Agroecology entails a move away from the traditional reductionist, production orientated mindset, toward a deeper understanding of the ecology of agricultural systems. Agroecolgy may be defined as the study of the interactions between plants, animals, humans and the environment within agricultural systems.

Agroecology is inherently multidisciplinary, including factors from agronomy, ecology, sociology and economics. In this case, the “-ecology” portion of "agroecology” is defined broadly to include ecological, social, cultural, and economic contexts as well (Author(s) Unknown. 2010d).

According to the Farm Manager at the TMV Estate, agroecology recognises that agriculture is not merely a way to produce food (wine in this case) but it is layered and embedded in social, cultural, political and economic dimensions and that a wider understanding of the agricultural context is necessary in order to perceive the complex interactions between these factors.

The current ethos of the TMV Estate is that, through effective implementation of the various disciplines that make up agroecology, that the farm will become increasingly productive and natural resource conserving, while at the same time being culturally sensitive (e.g. while preserving heritage resources), socially just and economically viable, i.e. the operations of the farming enterprise will become more sustainable.

Compost teas are also brewed on the Estate by the Farm Manager(s), using the above organic inputs. The compost teas are applied to the vineyards via the drip irrigation system. According to the Farm Manager these compost teas, which are often combined with horn manure (cow horns, which are filled with manure and buried for a number of months), serve to boost microbial activity in the soil. Increased soil microbe levels decompose organic matter already present in the soil and thereby make nutrients available to the growing vines. Microbes also degrade the mineral component of the soil, releasing valuable trace elements.



10

5 ENVIRONMENTAL LEGAL FRAMEWORK ASSOCIATED WITH THE OPERATION

OF THE TMV ESTATE All land use in the Republic of South Africa is governed by the “environmental guarantee” clause in the Bill of Rights section of the Constitution of South Africa, Section 24, which states that every person shall have the right-

(a) to an environment that is not harmful to their health nor well-being; and (b) to have the environment protected, for the benefit of present and future generations, through

reasonable legislative and other measures, that- (i) prevent pollution and ecological degradation; (ii) promote conservation; and

(iii) secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.

Land use in the Western Cape Province is governed by:

• The local Municipalities in terms of the Land Use Planning Ordinance, 1985 (Ordinance 15 of 1985) (LUPO);

• The Department of Agriculture in terms of the Conservation of Agricultural Resources Act, 1983 (Act No. 43 of 1983) (CARA); and

• The Department of Environmental Affairs and Development Planning (DEA&DP) in terms of the National Environmental Management Act (Act 107 of 1998) (NEMA).

The National Water Act (Act 38 of 1998) (NWA) governs all water use and the protection of inland water resources.

The environmental legal requirements for the current operations of the TMV Estate are provided herewith in terms of the above and other supplementary applicable legislation. 5.1 Land Use Planning Ordinance (Ordinance 15 of 1985) (LUPO) The purpose of the LUPO is “to regulate land use and to provide for matters incidental thereto”.

Approximately 600m2 of Portion 2 of the Farm Weltevreden No. 239 has been rezoned to Agriculture Zone II to accommodate a cellar (wine production and a bottling plant), while the remainder of the farm is zoned Agriculture Zone I (Appendix 6).

Since there are no zoning maps (generated from Spatial Development Frameworks – previously Structure Plans) available for Tulbagh and the surrounding rural areas, the applicable Zoning Scheme for the area is by default the Zoning Scheme in terms of Section 8 of the Scheme Regulations of the Land Use Planning Ordinance, 1985 (Ordinance 15 of 1985) (LUPO), which allows for any activities associated with the primary use of agriculture

The Witzenberg Municipality has deemed the existing wine cellar as a legally acceptable agricultural land use (since it is associated with the primary use of agriculture). National Environmental Management Act (Act 107 of 1998) (NEMA)

, but does not include the Consent Uses applicable to the zone. The Consent Uses are: additional dwelling units, farm store, farm stall, intensive farm feeding lots, riding school, nursery, service, trade and tourist facilities. Tourist facilities, as defined in the LUPO, do not however include overnight accommodation, viz. “Tourist facilities means amenities for tourists such as lecture rooms, restaurants, gift shops and restrooms permitted by the Council as a consent use, but does not include overnight accommodation.”

The primary function of the NEMA is to provide for co-operative environmental governance by establishing principles for decision making on matters affecting the environment, institutions that will promote co-operative governance and procedures for coordinating environmental functions exercised by organs of state; and to provide for matters connected therewith.



11

The Environmental Impact Assessment Regulations Listing Notices, 2010 were promulgated in terms of the NEMA on the 2nd of August 2010 to repeal the Regulations published in the Government Notices R385, R386 and R387 on 3 July 2006, and to introduce new provisions regarding environmental impact assessments.

5.2 National Water Act (Act 38 of 1998) (NWA) The objective of the National Water Act, 1998 (Act No. 38 of 1998) (NWA) is to provide for fundamental reform of the law relating to water resources; to repeal certain laws; and to provide for matters connected therewith. The National Water Act governs water use and the protection of inland water resources.

The use of water sources such as springs, dams, streams and rivers (e.g. for irrigation of vineyards) on the TMV Estate has been registered in favour of the Tulbagh Water Company (Pty) Ltd. with the Department of Water Affairs (Appendix 4). Water use rights have also been entrenched in the Title Deeds for the property (Appendix 2) to the owners of Portion 2 of the Farm Weltevreden No. 239, Austin Scott Farms (Proprietary) Limited.

In addition, a servitude right to downstream properties has been granted in terms of the NWA, which reads:

“B. Subject further to the terms of a Servitude referred to In the Endorsement dated 5 June 1839 on Deeds of Transfer No’s T2036/1938 and T2037/1938 which endorsement reads as follows:

By Transfer No. 5691 dated 5.6.1939 the owner and Successors in title of the properties thereby conveyed and the properties held under Transfer No. 6033/1922 have been granted certain rights to a furrow over the remainder of the property held under Para. 1 hereof from 5 a.m. Wednesday to 7 a.m. Sunday, in each and every week, and the rights to take water continuously for domestic purposes through a one-inch pipe placed in and running from the said furrow, together with certain right of way over the remainder for cleaning etc, of said furrow, as will more fully appear on reference to the said Transfer.”

If the spring water is again to be bottled for commercial purposes, then a Water Use Licence Application will also need to be submitted to the DWA in terms of Section 21 (a), (b) (c) and (i) of the NWA.

5.3 National Environmental Management: Waste Act (Act 59 of 2008) (NEM:WA) The National Environmental Management: Waste Act, 2008 (Act No. 59 of 2008) GN 718 (NEM:WA) aims to reform the law regulating waste management in order to:

• protect health and the environment by providing reasonable measures for the prevention of pollution and ecological degradation and for securing ecologically sustainable development;

• to provide for institutional arrangements and planning matters; • to provide for national norms and standards for regulating the management of waste by all

spheres of government; • to provide for specific waste management measures; • to provide for the licensing and control of waste management activities; • to provide for the remediation of contaminated land; • to provide for the national waste information system; • to provide for compliance and enforcement; and • to provide for matters connected therewith.



12

5.4 The Regulations of the Conservation of Agricultural Resources Act (Act 43 of 1983) (CARA)

This Act is to provide for control over the utilization of the natural agricultural resources of the Republic in order to promote the conservation of the soil, the water sources and the vegetation and the combating of weeds and invader plants; and for matters connected therewith.

The objectives of this Act are to provide for the conservation of the natural agricultural resources of the Republic by the maintenance of the production potential of land, by the combating and prevention of erosion and weakening or destruction of the water sources, and by the protection of the vegetation and the combating of weeds and invader plants.

5.5 National Heritage Resources Act (Act 25 of 1999) The National Heritage Resources Act, (Act 25 of 1999), provides for the management of National heritage resources, to set norms and maintain National standards for the management of heritage resources in South Africa, and to protect heritage resources of national significance, so that heritage resources may be bequeathed to future generations.

In terms of the above Act, Section 34 (1), refers to Structures and states: No person may alter or demolish any structure or part of a structure, which is older than 60 years without a permit issued by the South African Heritage Resource Agency (SAHRA). Therefore if any future re-development of the TMV Estate entails the demolition or alteration of any building or structure, which older than 60 years, it will be necessary to notify HWC and obtain a permit from them.

In the unlikely event that any graves, archaeological or palaeontological artefacts are uncovered (e.g. during construction or during establishment of new vineyards), then HWC must immediately be notified of such finds in terms of Section 35 (4) of the above Act. An archaeologist will then need to be appointed to assess such finds. Given the geology of the property it is highly unlikely that any fossils will be found in the Malmesbury shales.

Section 38 of the above Act requires that any person who intends to undertake certain categories of development in the Western Cape (see below) must notify Heritage Western Cape (HWC) at the very earliest stage of initiating such a development and must furnish details of the location, nature and extent of the proposed development.

• Construction of a road, wall, powerline, pipeline, canal or other similar form of linear development or barrier over 300m in length;

• Construction of a bridge or similar structure exceeding 50 m in length; and • Any development or activity that will change the character of a site–

a) exceeding 5 000 m2 in extent b) involving three or more existing erven or subdivisions thereof c) involving three or more erven or divisions thereof which have been consolidated within the past five years d) Rezoning of a site exceeding 10 000 m2

5.6 Occupational Health and Safety (OSH) Act (Act 85 of 1993) as amended by the Occupational Health and Safety Amendment Act (Act 181 of 1993)

The objectives of this Act are to provide for health and safety of persons at work and for the health and safety of persons in connection with the use of plant and machinery; the protection of persons other than persons at work against hazards to health and safety arising out of or in connection with the activities of persons at work; and to provide for matters connected therewith.



13

The farming activities and operation of the cellar need to be in keeping with the directives set out in the various Regulations promulgated in terms of the OSH Act. Similarly, the regulations of the OSH Act will be in force on the TMV Estate during the Construction and Operational Phases of any development or establishment of new vineyards, namely:

• The Contractor and the TMV Estate are to ensure that, as far as is reasonably practicable, that the working conditions on site are safe, and without risk to their employees;

• The Contractor and the TMV Estate must provide Personal Protective Equipment to ensure safety of workers;

• Adequate facilities must be provided to ensure that relevant minimum standards apply to working conditions; and

• The directives contained within the OSH Act with regard to job opportunities must be implemented.

5.7 Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act (Act 36 of 1947) as amended

The objectives of this Act are to provide for the appointment of a Registrar of Fertilizers, Farm Feeds and Agricultural Remedies; for the registration of fertilizers, farm feeds, agricultural remedies, stock remedies, sterilizing plants and pest control operators; to regulate or prohibit the importation, sale, acquisition, disposal or use of fertilizers, farm feeds, agricultural remedies and stock remedies; to provide for the designation of technical advisers and analysts; and to provide for matters incidental thereto.

5.8 Basic Conditions of Employment Act (Act 75 of 1997) This Act is to give effect to the right to fair labour practices referred to in section 23(1) of the Constitution by establishing and making provision for the regulation of basic conditions of employment; and thereby to comply with the obligations of the Republic as a member state of the International Labour Organisation; and to provide for matters connected therewith.

In terms of Chapter 4 of Act 75 of 1997, each employee is to have an employment agreement with the property / business owners; and in terms of Section 39 employees, in accommodation provided by employers, must also have contracts to such effect in place with the employers.

The owners and employees of the TMV Estate are to adhere to all the relevant requirements of the Basic Conditions of Employment Act (Act 75 of 1997).

6. ENVIRONMENTAL OPPORTUNITIES AND CONSTRAINTS OF THE FARM 6.1 Opportunities

6.1.1 Easy Access to Export and Internal Markets The access to the good R46 Regional Road between Tulbagh via Wellington to the N1 National Road just north of Paarl favours the distribution of wines from the property to both the local and overseas markets. The N1 National Road provides direct access to the Cape Town International Airport and the container terminals at the Port of Cape Town, approximately 120km to the west.

6.1.2 Ecotourism In terms of ecotourism opportunities the farm does have good potential. The views over the Witzenberg Mountains and the Tulbagh Valley are spectacular (Photos 1 and 18, respectively).

The current farming practices of the property, its diverse natural Fynbos vegetation, its bordering onto the Witzenberg Mountain chain, which forms part of the Boland Mountain Biosphere Reserve and the



14

fact that the farm is situated on the picturesque northwest facing slopes of the Witzenberg mountain range, gives the property a wilderness element that can be utilized in a sensitive manner for ecotourism purposes (e.g. low impact hiking and mountain-biking trails, viewpoint sites, indigenous fly fishing in the farm dams). The Cape Dutch styled house, together with the former labourer’s cottages, could be used for tourism accommodation opportunities (e.g. guest house, tourist accommodation).

If a Stewardship agreement is entered into with CapeNature for the management of the natural areas on the TMV Estate, then an additional tourism opportunity could be the establishment of hiking routes into the Witzenberg State Forest, perhaps to the picturesque waterfalls on the Adam’s River. An overnight hut for hikers could also be built on the mountain side within the Witzenberg State Forest.

A further tourism opportunity could include stocking the farm dams with indigenous fly-fishing species, such as “Witvis” or “Clanwilliam Yellowfish”. Stocking of farm dams should only be done in consultation with Mr. Dean Impson of CapeNature, who can be contacted at 021 866 8000 (since no fish of any species may be transferred without a permit issued in terms of the Western Cape Nature Conservation Laws Amendment Act, 2000 (Act No. 3 of 2000)).

6.1.3 Alien Vegetation Clearing With the eradication of the alien vegetation from the naturally vegetated areas, greater run-off will be achieved (up to 12m³/day/ha of dense alien vegetation cleared). Such run-off could be harvested for irrigation purposes from the Adams River and the non-perennial streams that run through the property. The greater stream flows generated would also favour the downstream ecology of the whole valley.

Clearing of alien vegetation should be conducted in a phased manner in a blocked system in accordance with the Plan for Invasive Alien Plant Species Management on the TMV Estate (Appendix 5). Alien vegetation removal clearing programmes epitomise sustainable development opportunities, where:

• Environmental gains are achieved with increasing the area of near pristine Fynbos / Renosterveld / riverine forest (enhancement of biodiversity);

• The natural areas of the farm can be linked to other neighbouring natural areas (e.g. Witzenberg State Forest). These linkages create natural corridors of vegetation, which are very important for species dispersal. Such natural vegetation corridors can be jointly managed under CapeNature’s Stewardship programme;

• Additional rainwater run-off is achieved (up to 25% more from cleared areas); • Development opportunities are created (tourism; fish farming activities and recreation); and • Various job opportunities (temporary and permanent) are created.

6.1.4 Commercial Spring Water Production Given the three springs on the property, which deliver high-quality water, one of which reportedly delivers about 30m³/hour, the property has huge potential for the production of natural spring water.

Should this groundwater resource be used for bottled water production, it is recommended that a detailed scientific hydrogeological study be undertaken to determine the respective sustainable yields of each spring.

6.1.5 Marketing Opportunities

We believe that a positive marketing opportunity avails itself with the existing organic TMV wine brand produced on the property. Coupled with the conservation of biodiversity, the clearing of alien vegetation, the composting of organic waste from the property, and other opportunities for becoming ISO 14 000 compliant, the marketing of the TMV wine brand could be greatly enhanced.



15

Certain opportunities exist on the TMV Estate regarding the implementation of green building guidelines in existing buildings, if they are to be refurbished, or in new developments where applicable (Refer to Appendix 10, Green Building Guidelines).

6.1.6 Green Building Practices We would strongly suggest, where possible, the employment renewable green energy at the TMV Estate to reduce energy use in the current operations. Education amongst staff and visitors as to sustainable water and energy use should also be incorporated into the management ethic of the property.

The employment of green energy can be achieved by using sunlight through passive solar (e.g. skylights), active solar (e.g. photovoltaic techniques - photovoltaics are arrays of cells containing material that converts solar radiation into direct current electricity). Architects can further reduce energy in existing and new buildings by fitting solar hot water systems, using recycled thermal insulation, and by plants and trees in judicious water wise landscaping.

Rainwater can also be harvested to supplement potable household water supplies, or for use in the winery / cellar.

In the event that new buildings are constructed on the TMV Estate in the future (e.g. boutique hotel or chalets), to reduce energy needs, natural convection should be built into the designs where cool air from the south side of buildings is naturally convected into buildings. Buildings should also be orientated and designed to minimise heat gains and losses. For example, to prevent sun glare off windows and overheating during summer, the use of deep recesses and planted pergolas is effective.

Any new development planned should recognise that a building’s entire life cycle needs specific attention and to the resources embodied in the building to reduce emissions.

Materials used in 'green' buildings should optimally be sourced from local, sustainable sources and have optimal qualities related to heat losses and gains.

Effective green building can lead to:

• reduced operating costs by increasing productivity and using less energy and water • improved public and occupant health due to improved temperature management; and • reduced environmental impacts by, for example, improving the quality of cellar

wastewater treatment and effluent released into the environment. 6.2 Constraints 6.2.1 Visual Impact Any new development planned on the TMV Estate should be mindful of visual impacts, especially if the development is to be located on the exposed middle and higher slopes of property. Various mitigation methods can however be employed to reduce visual impacts, such as the use of natural building materials, earthy colours, building orientation, colour of roofs, landscaping, etc.

6.2.2 Sensitive Vegetation A botanical impact assessment may need to be undertaken by a specialist botanist to determine the impact of any planned new development (e.g. expansion of vineyards should any naturally vegetated areas be impacted upon.



16

6.2.3 Road Access to the TMV Estate Any development on the TMV Estate would need to encompass the upgrading of the (Weltevreden) access road off the R46 Road that connects the town of Tulbagh with Wolseley (Figure 1 and Photo 16).

The stormwater management of the gravel Weltevreden road is currently inadequate and intervention is required by the Witzenberg Municipality to prevent recurring erosion problems and a poor level of service of the use of the road. Mitigation should include engineering solutions (such as pipes underneath the road), proper grading methods of the road and the construction of diagonal earth berms to divert stormwater off the road into the stormwater channel, which runs on either side of the Weltevreden road.

6.2.4 Alien Vegetation Clearing The infestation of the natural vegetation on the property by alien vegetation can be described as medium to dense, i.e. about 50-70% canopy cover. The area of the TMV Estate currently covered by medium to dense stands of invasive alien vegetation amounts to ± 82 ha. About 10ha of low density alien vegetation occurs.

6.2.5 Fire Management Since fynbos is fire dependent, the naturally vegetated areas will need to be burnt on a variable cycle of about 12 to 20 years. Such a fire management regime should be undertaken in conjunction with the TMV Estate neighbours and with CapeNature, if a Stewardship agreement is entered into.

The fire management plan must include the joining of a Fire Protection Association (if one exists for the area); and the making and maintenance of fire breaks (which may include roads). Annual fire fighting training of staff is essential and fire fighting equipment must be provided on site (drip torches, rubber beaters, mobile fire fighting bowsers, etc.).

Fire Management is governed by the Government by way of the National Veld and Forest Fire Act, 1998 (Act No. 101 of 1998), which includes the Regulations made under the Act.

Unplanned run-away veld fires can damage infrastructure (telephone cables, electricity cables, houses and outbuildings) the death of livestock and the burning of vineyards.

6.2.6 Wild Animals Losses of fruit to marauding baboons (that live in the adjacent Witzenberg Mountains) have occurred in the past. These losses could become more severe as the baboon population (new troops) is increased by being drawn to the area by the development of more and more wine estates and fruit farms. Similarly, small buck eat the new vineyard shoots, thus reducing the setting of grapes.

Whilst the activities of buck are easier to control than baboons, certain humane measures can be taken to reduce baboon activity (such as scare crows, or periodic load bangs from an air gun. Electric fencing can also be employed around the vineyards).

The presence of wildlife on the TMV Estate can however also be seen as an opportunity from an eco-tourism point of view, whilst creative marketing and labelling of wines could offset some of the losses of fruit to animals (e.g. “The Raptor Post” red blend).

6.2.7 Alien Fish and Bird Species Alien fish species (such as trout and bass) should under no circumstances be stocked in the farm dams, since the dams are connected to the Breede River system via the Adams River. Predation and habitat alteration by alien fish species are the two biggest threats to the survival of the Western Cape’s diverse indigenous fish species.



17

Mallard ducks and other alien water bird species (e.g. domestic geese) should also be removed from the farm dams. Mallard ducks interbreed with indigenous Yellowbilled and African Black ducks, and therefore pose a significant threat to their long-term conservation. Indigenous duck and other water bird species should return to the farm dams in time, and will enhance the biodiversity of the property.

6.2.8 Sewage and Effluent Treatment Sewage is currently managed by means of septic tanks and soak-away systems, which drain into the ground, potentially contaminating groundwater.

Figure 5: This artificial wetland along the Plankenbrug River below Kayamandi was planted in December 2003. It was designed to filter pollution from the settlement. The white arrows denote the flow of water (Photo: Dr. Charlie Boucher). 6.2.9 Electricity and Potable Water Provision Electricity is supplied by Eskom. South Africa is currently experiencing high population growth rates and industrial development, the demands of which are stressing the currently electricity supplies and its transmission. Eskom has warned that future electricity supplies could be interrupted, as has happened in the past.

6.2.10 Global Climate Change Future climate change predictions for the Western Cape, South Africa indicate the likelihood of hotter and drier conditions. This may hold implications for viticulture and wine production as drier conditions mean more irrigation needs and less river run-off. The incidence of an earth quake occurring along the NW-SE fault lines present in the Tulbagh valley, and which are associated with the mega Worcester fault zone, could cut off the current flows of water from springs on the property. Many springs stopped flowing after the 1969 Tulbagh earth quake.

1

2

3

4



18

The anticipated changing climatic regime of the West Coast would also most certainly holds serious implications for the extremely diverse fynbos vegetation, which appears to be relatively poorly adapted to drought, given the specialized habitat requirements of the numerous local and point plant endemics (Rutherford et al. 1999 in Cowling 2010; Author(s) Unknown. 2005).

Long term climatic changes could therefore have a number of negative impacts, not only on wine production but also on tourism attractions. The anticipated time frames of such climatic change scenarios are in the medium (20 to 50 year) to long term (50 to 100 year) time frames. In terms of these scenarios, droughts will also become more frequent and more prolonged.



19

7. CONCLUSIONS AND RECOMMENDATIONS The main conclusions that have been drawn with respect to the biophysical and socio-economic characteristics of the TMV Estate and its surrounds are provided below.

At the same time, various recommendations have been put forward to ensure that the operation and management of the TMV is undertaken in a sustainable way and is in line with Section 24 of the Constitution of South Africa, and with other relevant National and Provincial Legislation.

7.1 Vegetation Approximately 82 ha of the natural parts of the property contain medium to heavy infestations of alien vegetation and about 10ha of low density infestation, which in terms of the CARA Regulations (Appendix 9) need to be removed from the property. By entering into a Stewardship programme with CapeNature and DWA’s programme of “Working for Water”, it may be possible to enter into a management agreement for assistance with the control of alien vegetation following initial clearing and with the long term management of the naturally vegetated areas on the TMV Estate.

7.2 Damage Caused by Wild Animals Local marauding baboon troops do cause losses of fruit and damage to vineyards. Small buck also cause damage to the growth of new shoots on the vines which can reduce the berry carrying capacity of the vines. It is therefore recommended that mitigation measures to prevent the loss of fruit should be put in place. Such measures could include electric fencing, air guns and scare crows. Albeit that electric fencing is the most expensive mitigation method, it is probably the most effective. 7.3 Fire Management Fynbos is a fire prone vegetation type. It burns easily, especially during dry and windy conditions of late summer and early autumn. Fynbos also needs fire to propagate itself. The owners of the TMV Estate should be acutely aware of the dangers of run-away veld fires on the existing operations of the Estate and any future development on the slopes of the Witzenberg Mountain.

The TMV Estate should join a Fire Protection Association (if one exists for the area), commission the compilation of a fire management plan and make sure that legally binding Fire Management Agreements are in place with neighbours (to avoid costly litigation from neighbours in the event that a fire starts on the TMV Estate and spreads).

Such Fire Management Agreements must specify the placement, characteristics and maintenance of firebreaks and detail emergency procedures in case of a fire (including details regarding assistance from neighbours in the event of a wildfire breaking out).

The necessary fire insurance should also be taken out to cover any law suites being instituted should fires be initiated on the TMV Estate.

The necessary fire fighting training must be given to personnel staying on the property. In addition, the necessary fire fighting equipment must be stored on the property and should be checked for its efficient functionality from time to time.

7.4 Potable Water The necessary registrations with DWA in terms of water use and mass storage in accordance with the NWA are in place.



20

One of the springs on the property reportedly delivers about 30m³/hour per hour. It is recommended that a detailed scientific study be undertaken by a hydrogeologist for each spring to determine their respective sustainable yields, especially if the springs are to be utilized in the future for bottled water production.

Should bottled water production be a consideration in the future, a WULA will more than likely need to be submitted to DWA in order to ensure compliance with the NWA.

It should be borne in mind that the Tulbagh area is prone to earthquakes (albeit that the last devastating earthquake struck the area in 1969), being located on large fault systems. Should an earthquake take place within the Tulbagh area in the future, the springs on the TMV property may dry up. To obtain potable water for household and cellar use, it may be necessary to drill boreholes, or alternatively to install a filter system to treat mountain stream water.

It is also anticipated that climatic change in the medium to long term (25 to 100 year span) would see drier conditions on the West Coast of South Africa, including the Tulbagh region. It is anticipated that more frequent and prolonged droughts may occur. As such, less irrigation water will be available and the hotter climate may affect the quality of wines in the region.

7.5 Electricity Requirements Because of the anticipated intermittent supply of electricity by Eskom in the future, and the crucial requirement of the cooling of fermenting wines, it is recommended that an emergency stand-by diesel generator should be provided for use in the cellar. The size of the generator should also be able to supply electricity to the houses on the property.

7.6 Road Access While access to the national and regional collector roads is good, and accessibility to the airport and harbour are within an hour and a half’s drive from the TMV (120km to the west), the gravel Weltevreden access road off the R46 has a poor level of service and needs to be upgraded.

Negotiations with the District Roads Engineer in Ceres for the proper design and maintenance of this road should be entered into.

7.7 Tourism Development Potential The biophysical attributes (recreational opportunities) of the TMV Estate provides a number of good small tourism development potential opportunities. These could include the upgrade of the existing cottages on the farm for short term stays, while the Cape Dutch house could be used as a guest house. The dams could be stocked with indigenous fish for fly fishing, and hiking and mountain biking trails could be laid out on the property.

Special care will need to be taken of the visual impacts of any future development structures on the surrounding area.

7.8 Zoning, Current and Future Land Use While the Witzenberg Municipality has deemed the wine cellar itself as a legally acceptable land use (Agriculture Zone II).

1. In summary, we do not find any significant environmental impacts that should negate the acquisition and/or redevelopment of the TMV property.

2. We believe that the unique soils of the property and the climatic regime of the area will promote the production of unique wines. Additional scope avails itself for the planting of more vineyards to increase wine production.



21

3. Other biophysical attributes of the property foster the development of small-scale tourism facilities.

4. One constraint of the purchase of the property is the cost involved to eradicate the medium to dense stands of woody alien vegetation. We believe that the costs for the removal of alien vegetation on the property over the next 5 years should be used to negotiate a reduced purchase price for the property.

5. We would also recommend that the kikuyu grass and weedy fennel within the vineyards should also be removed as a matter of urgency.

6. We would also recommend that a Master Plan be prepared for the infrastructure, conservation areas, existing and future vineyards and possible future tourism facilities (hiking and mountain biking trails), on the TMV Estate.

7. Furthermore, we suggest that an Environmental Management Plan (EMP) be commissioned, complete with clear goals and objectives that are coupled to realistic time frames for the management of operations, including alien vegetation clearing, on the TMV Estate.

8. In closing, we do, however, get the general impression when driving around the TMV Estate that a lack of funding is perhaps curtailing its true potential as a unique wine estate. The impression is also gained that because the current owners wish to sell the Estate, its general management as a whole has slipped. We also believe that the current work force is too small to efficiently manage the Estate.

We trust that the above environmental Due Diligence report will be beneficial to Tulbagh Holdings LLC in making an informed decision regarding the purchase and potential redevelopment of the TMV Estate.

A. W. WITHERS WITHERS ENVIRONMENTAL CONSULTANTS (PTY) LTD. 26 August 2010 (Revision 1)



22

REFERENCES

Author(s) Unknown. 2005. Drought and fynbos floral diversity. CSIR Report No. ENV-S-C 2005-073. [Online] Available: http://www.botany.uct.ac.za/drier/impact.html. Accessed 25 June 2010.

Author(s) Unknown. 2010a. Tulbagh Climate. [Online] Available: http://www.saexplorer.co.za/south-africa/climate/tulbagh_climate.asp

Author(s) Unknown. 2010b. Tulbagh. [Online] Available:

. Accessed 15 June 2010.

http://en.wikipedia.org/wiki/Tulbagh. Accessed 15 June 2010.

Author(s) Unknown. 2010c. Tulbagh Mountain Vineyards, A rising Viticultural star. Unpublished Report. TMV Estate. Tulbagh.

Author(s) Unknown. 2010d. Agroecology. [Online] Available: http://en.wikipedia.org/wiki/Agroecology. Accessed 22 June 2010.

Author(s) Unknown. 2010e. Biodynamic Agriculture. [Online] Available: http://en.wikipedia.org/wiki/Biodynamic_agriculture. Accessed 22 June 2010.

Cowling, S. 2010. Lowland fynbos and renosterveld (AT1202). [Online] Available: http://www.worldwildlife.org/wildworld/profiles/terrestrial/at/at1202_full.html. Accessed 25 June 2010.

Mucina, L., Rutherford, M.C. (eds) 2006. The vegetation of South Africa, Lesotho and Swaziland. Strelitzia 19. South African National Biodiversity Institute, Pretoria.

CSIR. 1996. Hydrological monitoring of the Fynbos Water Project at Vergelegen and Knorhoek Estates, Somerset West. Unpublished Report for the Department of Environmental and Cultural Affairs: Western Cape Province.

http://www.botany.uct.ac.za/drier/impact.html�

http://www.saexplorer.co.za/south-africa/climate/tulbagh_climate.asp�

http://www.saexplorer.co.za/south-africa/climate/tulbagh_climate.asp�

http://en.wikipedia.org/wiki/Tulbagh�




http://www.worldwildlife.org/wildworld/profiles/terrestrial/at/at1202_full.html�

http://www.worldwildlife.org/wildworld/profiles/terrestrial/at/at1202_full.html�

Documents

TULBAGH MOUNTAIN VINEYARDS - Multilateral …. Undertake a desktop review of the property to set up an environmental checklist (Appendix 1) of the biophysical and socioeconomic characteristics