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Paragraph Numbers
Introduction
1.1 -1.6
2.1
2.2
2.3 2.3.7
3- 3.12
3.13 3.21
3.22 3.25
3.26 3.27
4.49
5 5.3
1.4. However, since the Scottish Mining Restoration Crisis broke, there
has not been a similar review of English surface mine operations to see
how robust the English Planning system is at assessing the risks
associated with opencast mining and whether sufficient safeguards exist
to prevent any kind of repeat of the Scottish experience.
1.5. Given this context, of the risk that sites can be left in an un-restored
state, it is perhaps understandable why a large part of the submission
from LAON is not so concerned about whether it is safe to grant
permission to start the development. Rather, our focus is on what
circumstances will be facing the operator when coaling is about to cease
or has ceased entirely, and, with it, the associated income stream. Will the
Applicant then have sufficient financial resources to complete the
expensive process of site restoration? We consider this to be a legitimate
question to ask, especially in view of the evidence we will present about a
predictable decline in the demand for thermal coal as indicated by DECC
figures and the more unpredictable impact on the demand for coal
represented by the adoption of newer energy producing technologies.
Companies operating in an industry in decline, face significantly different
financial pressures from those operating in a stable or expanding business
environment, as credit dries up and, for this industry, it becomes
increasingly difficult to get insurance based Restoration Bonds.
1.6 LAONs conclusion from this introduction is that it will be a material
consideration to ask if either the Applicant or the Liquidators will have
sufficient resources to restore the site if the appeal is upheld.
2.1. BASIS OF THE BRADLEY SURFACE MINE OBJECTIONS
This set of objections is based on sections of both the National Planning
Policy Framework (NPPF) and the accompanying Planning Practice
Guidance Notes as follows:
2.2 ADVERSE ENVIRONMENTAL IMPACTS: INTRODUCTION
The first objection is that this application does meet the criteria that the
adverse impacts of doing so (i.e. granting permission) would significantly
and demonstrably outweigh the benefits, when assessed against the
policies in this Framework taken as a whole as defined in paragraph 14 of
the NPPF
It will be argue that the statements in the NPPF and the Planning Practice
Guidance concerning both Climate Change and Air Quality have to be
considered as material considerations when weighing up the many factors
involved in determining this application. When these two objections are
added to an additional assessment about the detrimental environmental
impact of the proposal in paragraphs 3.9 to 3.21, to those that have been
submitted by others about this issue, that this proposal has had, and will
have, on the community surrounding this site should the appeal be
Our objection is based on the third of these points. It indicates that the
determining authority has discretion over deciding if an Applicant will or
will not experience the likelihood of a financial failure of such a concern as
to justify refusal of permission. We would argue that there is reliable
evidence of potential financial failure of this Company and that these
concerns are of sufficient merit to justify rejecting this appeal. Paragraphs
6
implied in their submission that this is the case, when they argue that
using indigenous coal has less of an environmental impact than using
imported coal. They cite in Chapter 12 of their submission, Highways and
Transport, that using the Bradley site as a source of coal will impose less
of a burden on the environment that using imported coal, as the amount
of C02 emitted on transporting this coal would be much less, 7.8% of the
equivalent tonnage of moving the same amount of imported coal.
(paragraphs 12.5.9 to 12.5.11)
3.9 However, this analysis / argument should not be taken as a proxy
argument for the total environmental impact, or for the argument over the
amount of CO2 generated by the mining of the coal when comparing
imported coal to local coal.
3.10 Although the figures used in the limited analysis provided by URS for
the applicant are not disputed, it should be understood that the argument
that utilising indigenous coal is better, taking account of the reduced
emission of CO2 used in transporting this coal, when set against the total
amount of CO2 to be released from burning this coal if approval is given,
is a bit like the story of the boy who plugged a Dutch dyke with his finger,
but that this time, he failed to see that the dyke was crumbling all around
him.
3.11 However this is only an analysis of the carbon footprint involved in
transporting the coal. Missing is any analysis of two further aspects the
carbon footprint of extracting the coal and the local environmental
impact if rejecting the planning appeal is the result of this Public Inquiry
and the coal has to be imported.
3.12 Neither UK Coal or its Agent have provided any detail of the amount
of carbon dioxide to be emitted whilst extracting the coal by utilising
diesel powered heavy and light machinery on the Bradley site Nor does
the analysis provided give any indication of the carbon dioxide to be
emitted whilst producing the coal that would be otherwise imported. Some
of this imported coal could well be produced from deep mines which use
electrical power, not diesel, thus tending to reduce the overall carbon
footprint when compared to producing UK surface mined coal. Thus,
arguments about using indigenous coal because it has a lower carbon
footprint, has still to be proved.
OBJECTION 1) ADVERSE ENVIRONMENTAL IMPACT: ADDITIONAL LOCAL
ENVIRONMENTAL IMPACT
3.13 The other point, most important to local people, is the difference in
the environmental impact between what is proposed here, once
permission has been given and what the effect would be on the local
community if planning permission is refused:
3.14 This is the likely effect on the local community should this appeal be
upheld:
9
Then possibly, after five years and six months after the initial
planning permission has been granted, the top soil has been
replaced and the site enters the aftercare phase (i.e. 3 years and six
months after soil stripping started).
3.15 If the appeal is upheld and the coal has to be imported, then the
local community around the Bradley site bears none of this cost or loss.
Instead, just 4 shiploads of coal, in 140,000 tonne ships, can discharge in
Immingham and transport all this coal, in much shorter time, to Drax by
rail, with having hardly any environmental impact on any British
community.
3.16 However, this is not the only environmental cost involved. Ever since
UK Coal submitted their initial Scoping Inquiry prior to them submitting
their initial planning application in 2007, an area within 500m meters of
the boundary of the proposed Bradley site has been affected by planning
blight. This is caused by the actions of the Coal Authority which, in
responding to any property search enquiry being made on local
properties, has to inform the inquirer that there is the prospect of a
surface mine application being made within 500m of the property in
question, if the property in question is within 500m of the boundary of the
proposed surface mine. The reality that opencast mining applications
cause planning blight was acknowledged by this Government in 2013, in
their publication Major infrastructure planning: extending the regime to
business and commercial projects. Summary of responses and
government response (7)
3.17 This document summarised responses to the Governments
proposals to extend the provisions laid down in 2013 Growth and
10
In all, that makes 26 years of the area being affected by the shadow
of the risk of, and experience of, opencast mining if permission is
granted.
3.20 This 26 year period is a far longer period than either UK Coal or their
Agent has indicated as being the extent of the time that this development
will have an environmental impact on this area. They give a different
estimate, 3 years and six months. LAON asks that in reaching a final
decision, that this longer period of 26 years in which this proposal would
have had an environmental impact is taken account of as a negative
factor when weighing up the balance between the costs and benefits of
this scheme,
11
12
That the mining and then burning of this coal will contribute to the
UK remaining in breach of EU law relating to levels of Air Pollution in
the UK (see paragraphs 3.22 -3.23)
That the burning of this coal from Bradley will contribute to 1,600
premature deaths, 68,000 additional days of medication, 363,266
working days lost and more than a million incidents of lower
respiratory symptoms, which is costing 1.1 to 3.1 billion (1.3 to
3.7 billion) each year. Lives cannot have a value put on them.
However a proportion of the cost of treatment provided by the NHS
to counter the effects of Air Pollution caused by the burning of this
coal would be attributable to this proposal if the Appeal is upheld.
The cost of this should be a material consideration when assessing
this planning appeal. For a full discussion of this objection see 3.22
3.25
13
3.27 In addition, these are two other issues that LAON would like to form
part of the Environmental objection to this proposal:
An additional measure of the Environmental Impact on this proposal of:
In all, that makes 26 years of the area being affected by the shadow
of the risk of, and experience of, opencast mining if permission is
granted.
Lastly, that the claim that utilising this coal reserve imposes a
smaller carbon footprint impact on the environment is not proved
(For a full discussion of this conclusion see paragraphs 3.8 to 3.12)
Challenging the Need for Coal: Changes in the demand for thermal
coal in the UK from 2014 to 2023 based on DECC statistics.
Challenging the Need for Coal: Changes in the demand and supply
of domestic coking coal.
14
Demand for coal within the UK is far greater than can be met from
indigenous production with the consequence that high levels of imports
are required to satisfy the market.
4.5 This is followed by a set of historical statistics. The implications are
that for the foreseeable future its business as usual. There is no
prediction in this submission about the future demand for coal for power
generation purposes or for steel making in the UK. LAON contends that
history is an unreliable witness, when the technology of power generation
is undergoing profound changes of three kinds:
4.6 In addition, the coking coal market in the UK is also subject to two
changes. Technical developments in steel making are reducing the
demand for coking coal. In addition, during the lifetime of the Bradley
development a new domestic source of coking coal may become
available, from the Lochinvar Development.
4.7 None of these developments is taken account of by the Applicant or
their Agent in the application.
ESTIMATING THE FUTURE DEMAND FOR COAL FOR POWER GENERATION
PURPOSES
4.8 The starting point for this stage in developing LAONs objection on the
need for this coal is the last Energy White Paper, Energy Security Strategy,
and Cm 8466 published in 2012. In the Statement of Common Ground
prepared for this Public Inquiry, both UK Coal and Durham County Council
agreed that
The Government Energy White Paper is a relevant consideration in
relation to coal production. (10) .
16
4.12 Table 1 below brings together all this information in a tabular form to
show what the trends estimated as Twh are for the amount of electricity
produced by coal in DECCs latest Energy and Emissions Projections, which
update the graph first published in the latest Energy White Paper,
translated into coal equivalent figures by multiplying the original Twh
figure by 0.38168, representing that, in 2013 it took 381,680 tonnes of
coal to produce each Twh of electricity. All the figures in the Estimations of
Millions of Tonnes Coal Used are based on my calculations, using the
method explained in paragraphs 4.9 to 4.11.
4.13 DECCs Energy and Emissions Projections statistics distinguish coal
use between the expected amount of electricity to be produced in coal
fired unabated power stations, referred to in the table above as old coal,
and the amount of electricity to be produced by coal fired power stations
fitted with Carbon Capture and Storage, referred to in Table 1 as new
coal. This enables estimates to be made about the total future use of coal
for power generation purposes, up to 2030, to be made.
TABLE 1 ESTIMATED USE OF COAL BASED ON STATISTICS IN DUKES
CHAPTERS 2 AND 5 PLUS DECCS UPDATED ENERGY AND EMISSIONS
PROJECTIONS: 2013.
DECC UPDATED ENERGY AND EMISSIONS PROJECTIONS: 2013 ESTIMATE X .38168
YEAR
TWH ELECT.
PRODUCED
FROM OLD
COAL
THW ELECT
PRODUCED
FROM CCS
NEW COAL
TOTAL
TWH
PRODUCED
FROM
COAL
OLD
COAL M
TONNES
NEW
COAL M
TONNES
EST. TOTAL
M TONNES
COAL USED
2013
131.00
131.0
50
50
2014
129.5
129.5
49.43
49.43
2015
106.4
106.4
40.61
40.61
2016
59.7
59.7
22.7
22.7
2017
49.3
49.3
18.81
18.81
2018
46.5
4.7
51.2
17.75
1.79
19.54
2019
37.9
4.7
42.6
14.46
1.79
16.26
2020
28.2
4.7
32.9
10.76
1.79
12.56
2021
23.6
4.7
28.3
9.00
1.79
10.80
18
2022
24.6
4.7
29.3
9.39
1.79
11.33
2023
20.2
4.7
24.9
7.71
1.79
9.50
2024
12.4
4.7
17.1
4.73
1.79
6.53
2025
8.4
11.0
18.4
3.21
4.2
7.41
2026
6.1
17.1
23.2
2.33
6.52
8.85
2027
4.3
23.1
27.4
1.64
10.46
12.1
2028
3.3
24.4
27.4
1.26
10.71
11.97
2029
2.7
28.9
31.6
1.03
12.06
13.09
2030
1.9
33.3
35.2
0.72
13.43
14.15
By 2020 the demand for thermal coal is expected to fall below the
current levels of UK Coal production, which the Agent states in
3.14.8 of the Environmental Impact Assessment (EIA), was 13m
tonnes. Put another way, by 2020, there will an excess of domestic
supply over domestic demand for thermal coal.
DECC expect the first Carbon Capture and Storage (CCS) power
station to be operational by 2018. If the schedule for developing this
power station, the White Rose project it is believed, should slip,
then the demand for coal will be less, and every year this project is
delayed increases the likelihood of an excess of domestic supply
over domestic demand for coal.
19
4.15 Two other factors affecting the domestic demand for coal also
suggest that on current trends, by 2020 current domestic supply will
exceed current domestic demand. Firstly for some power stations, to meet
the new lower EU pollution standards which are due to come into force in
2016, they will need to import coal with a lower sulphur content. The
second is that at least one large power station can burn cheaper coal,
cheaper because it has higher sulphur content, as it has already
introduced a technological change.
4.16 The first factor in their being a requirement to import coal was
addressed in a presentation given by Nigel Yaxley, Managing Director of
the Association of Coal Importers in 2009. In this, he pointed out that
imported coal, with its lower sulphur content, would be more important
after 2016 as
SO2 emissions are directly proportional to sulphur content in coal and
tighter limits after 2016 may mean sulphur also becomes important for
FGD stations(17).
4.17 The second factor concerns Drax Power Station, the UKs biggest
power station, which has already partly converted to biomass. It can, as a
consequence, import coal which is cheaper than domestically produced
coal because it has a higher sulphur content, burn it and still remain
within the new lower limits laid down by the EU, as explained in this article
from the Wall Street Journal Dirty US Coal Finds a Home in Europe. (18).
4.18 At present the effect of these trends for importing coal cannot be
quantified, but the likely effect will be felt by UK Coal Producers as
domestic production will be squeezed from both ends by price and quality,
Inevitably these two factors will reduce the demand for domestically
produced coal it is argued, below 13m tonnes sometime before 2020.
4.19 This estimated decline in coal demand is significant for this
application and should, it is argued here, be treated as a material
consideration. This is because the effects of the estimated dramatic
decline in the demand for coal will be occurring whilst this site is being
worked, should the appeal be upheld.
4.20 To put this into context, an assessment needs to be given of the real
timetable that is likely to occur should the appeal be upheld and
20
DEVELOPMENT
YEAR
YEAR 1
2015
YEAR 2
2016
2017
YEAR 3
YEAR 4 UK COALS
YEAR 1
2018
YEAR
YEAR
YEAR
YEAR
YEAR
YEAR
2019
2020
5 UK COALS
2
6 UK COALS
3
7 UK Coals
4
SITE ACTIVITY
PUBLIC INQUIRY. THE PLANNING INSPECTOR
RECOMMENDS APPROVAL. HOWEVER, THE TIME
TAKEN TO ANNOUNCE THIS DECISION CANNOT
BE PRE DETERMINED. THIS TIME TABLE
SUGGESTS THAT A DECISION TO UPHOLD THE
APPEAL IS ANNOUNCED IN JANUARY 2015
APPEAL UPHELD. BEFORE ANY ACTION CAN BE
TAKEN TO DEVELOP THE SITE ACTION HAS TO
BE TAKEN TO MEET PRE OPERATIONAL
PLANNING CONDITIONS AND SECTION 106
AGREEMENTS
SITE PREPARATION ACTIVITY CONTINUES
IF ALL PRE DEVELOPMENT CONDITIONS ARE
MET SOIL STRIPPING COMMENCES LATE
SPRING. COALING BEGINS 3 MONTHS LATER
(JULY)
COALING TO TAKE 32 MONTHS FROM JULY
2017 (SEE 3.3.38 OF THE E.I.A)
COALING
COALING CEASES c MARCH 2020 AND
RESTORATION BEGINS.
4.21 To prove the point about the lack of the need to exploit this coal
reserve, Table 3 Calibrating the Bradley Site Development with the
Estimated Demand for Coal below, brings together the suggested time
table for the development of the Bradley site should the Appeal be
upheld, with the best estimate on what will be the level of demand for
coal for power generation purposes during the lifetime of the proposed
development.
4.22 It can be seen, if these two sets of predictions are proved to be
correct, that by 2020, when coaling ceases on this site, that the level of
the demand for coal will have fallen below the UKs current level of
production. Whether this fact creates a cash flow problem when UK Coal is
about to begin site
TABLE 3 CALIBRATING THE BRADLEY SITE DEVELOPMENT WITH THE
ESTIMATED DEMAND FOR COAL
YEAR
21
2014
2015
2016
2017
2018
2019
2020
PUBLIC INQUIRY
INSPECTORS DECISION UPHOLDS THE
APPEAL. SITE PREPARATION FOR PROVING
THE SITE BEGINS AS DO DISCUSSIONS
ABOUT FINALISING CONDITIONS AND
SECTION 106 AGREEMENTS
IF THERE IS ANY DELAY AND THE
FAVOURABLE WEATHER / ECOLOGICAL
CONDITIONS ARE MISSED, IT CAN DELAY
SOIL STRIPPING.
COALING BEGINS c JULY
COALING
COALING
COALING CEASES 32 MONTHS AFTER JULY
2017 IN MARCH 2020
49.43
40.61
22.7
18.81
19.54
16.26
12.56
restoration is a matter for some consideration. Only UK Coal know if, when
it comes to opencast mining, they operate a system of cross subsidising
sites. Site A, in its productive stage pays for the preparation costs of site
B. Later Site B, once productive, pays for the restoration costs of Site A as
well as
the preparation costs of site C and so on. The success of the business plan
depends on gaining new site approvals. If this is the kind of business
model operated by UK Coal, what happens in 2020, when the likelihood of
gaining new opencast approvals will have diminished? The risk is that the
company we are calling UK Coal (or Juniper (No 3) Limited) a brand new
company arising from the wreckage of the old UK Coal Company after it
went into administration last year, with no public record of its financial
trading health or assets as described in paragraphs 2.3.5 to 2.3.8, may
find itself unable to fulfil its planning obligations to restore this site, once
the coal reserves are exhausted.
4.23 At present, unless there is a real development that makes CCS a
commercial prospect it seems to be the Governments policy not to rely on
coal to meet our energy needs in the short to medium term, but to rely on
new Gas powered generation units. As indicated in Table 1, the advent of
a commercialised (not commercial) CCS power station, due to start
operating according to the DECC figures in 2018, is only going to have a
marginal effect on the demand for coal and will not, of itself, arrest the
overall decline in the demand for coal up to 2020.
OBJECTION 2 ECONOMIC VIABILITY OF THE PROPOSAL: THE POTENTIAL
IMPACT OF THE DISRUPTIVE TECHNOLOGY OF RENEWABLE ENERGY.
4.24 The other, more unpredictable impact, is what the effect will be of
another, quite separate trend, probably not accounted for in the DECC
figures used above, in meeting the UKs future energy needs caused by
what has been called the Disruptive Technology of Renewable Energy.
This was a term coined by Mckinsey to encapsulate what they believed to
be the potential dramatic impact that twelve new, developing
technologies, including two technologies that contribute towards
22
Morgan Stanley (see Solar Power & Energy Storage Policy Factors vs
Improving Economics, (22)
UBS (see Big power out, solar in: UBS urges investors to join
renewables revolution) (23)
Citi Group (see Energy 2020: The Revolution Will Not Be Televised
as
Disruptors Multiply (24)
4.28 Some quotes from what UBS has said in advising its clients are
quoted in the Guardian article and indicates why the impact of these two
technologies will be so disruptive, as we are all on the cusp of witnessing
relatively dramatic changes:
Power is no longer something that is exclusively produced by huge,
centralised units owned by large utilities. By 2025, everybody will be able
to produce and store power. And it will be green and cost competitive, i.e.,
not more expensive or even cheaper than buying power from utilities,
say the authors, who urge their financial clients to join the revolution.
Solar is at the edge of being a competitive power generation technology.
The biggest drawback has been its intermittency. This is where batteries
and electric vehicles (EVs) come into play. Battery costs have declined
rapidly, and we expect a further decline of more than 50% by 2020. By
then, a mass [produced] electric vehicle will have almost the same price
as a combustion engine car. But it will save up to 2,000 (1,600) a year
on fuel cost, hence, it will begin to pay off almost immediately without
any meaningful upfront investment. This is why we expect a rapidly
growing penetration with EVs, in particular in countries with high fossil
fuel prices.
The expected 50% reduction in the cost of batteries by 2020 will not just
spur electric car sales, but could also lead to exponential growth in
demand for stationary batteries to store excess power in buildings, says
UBS. Battery storage should become financially attractive for family
homes when combined with a solar system and an electric vehicle. As a
consequence, we expect transformational changes in the utility and auto
sectors, it says. By 2020 investing in a home solar system with a 20year life span, plus some small-scale home battery technology and an
electric car, will pay for itself in six to eight years for the average
consumer in Germany, Italy, Spain, and much of the rest of Europe.
4.29 The quote ends by saying much of the rest of Europe. It would seem
that this rapid technological change will begin to occur during the lifetime
of the proposed Bradley development. If it begins to do so, if UK residents
begin to hook up their solar PVs to domestic battery storage systems one
can imagine that the decline in fossil fuel power generation will quicken,
24
most likely with the most polluting, coal fired power generation stations,
being closed first.
4.30 Another influential person has recently addressed this issue and
supports the idea that we are all on the cusp of dramatic changes in the
way energy, in the form of electricity, is both produced and distributed. He
was, until recently, head of one of the major energy utility companies
operating in the UK, which was recently operating these UK coal fired
power:
Aberthaw (still open), Didcot A (closed in 2013) and Tilbury (closed as a
coal fired power station in 2011)
The company is, in addition, still operating both gas fired and nuclear
power stations in the UK. Until 2013 Volker Beckers was head of RWE
npower. He has now added his voice to the series of warnings about the
limited future of a national grid system fed by fossil fuels including coal.
These extracts give a flavour of his thinking after he explains that he
came to the realisation
that the centralised energy model has "reached its natural end", with
market capitalisation for the largest energy companies plummeting
almost as fast as consumers' trust in them.
Energy firms "need a different approach", he says, if they want to win
back consumers in a new market where households can produce their
own energy via solar panels and wind turbines and may soon be able to
store it in advanced batteries or electric cars. (25)
4.31 There is now some evidence that the Government is waking up to the
impact that these new technologies will have in the UK. In a recent debate
on Sustainable Energy, Matthew Hancock, the new Minister for Energy,
Business and Enterprise said:
....I think solar is one of the big opportunities. As the price falls and it
becomes competitivepotentially grid competitivein the short to
medium term, solar is a big opportunity, even in cloudy old England. (26)
Here is official recognition that there is an expectation that in the short
term that there will be price parity between solar produced electricity and
the price of electricity produced by fossil fuels. Once that tipping point is
reached, the disruptive aspect of these two new technologies will begin to
be felt, if what the Minister has said is true, before 2020.
OBJECTION 2 ECONOMIC VIABILITY OF THE PROPOSAL: TECHNOLOGICAL
AND SUPPLY CHANGES TO THE DOMESTIC COKING COAL MARKET,WHICH
COULD LESSEN THE DEMAND FOR COKING COAL.
25
4.32 In one respect, the situation with regard to the future demand for
coking coal is similar to the technological changes likely to affect the
demand for thermal coal In another respect it is very different.
4.33 It is similar because technological developments are lowering the
level of demand for coking coal and enabling lower grades of cheaper
coal, i.e. non coking coal, to be utilised in steel making. At the Redcar
Steel works Sahaviriya Steel Industries (SSI) have installed a Pulverised
Coal Injection plant, which according to a press release, issued by the
supplier of the equipment to the plant, Siemens, will:
..... will reduce the coke consumption of the blast furnace, which, in turn,
will reduce both expenditure on raw materials and energy consumption.
This is because
The new PCI plant will enable SSI to replace some of the coking coal it
uses by cheaper, non-coking coal (27)
The other large UK Steel maker, TATA Steel, is also being reported as
developing new steel making technologies that will enable lower quality
coals to be used for steel making:
....The fine raw materials are used directly without the need for
agglomeration that is collection into a cluster or mass or coking. It can
even use low calorific grade coal and iron ore which otherwise was not
possible till now.... (28)
4.34 However, the situation with regard to the domestic market
for coking coal is made more complicated by the rapid
development of the Lochinvar Project on the Canonbie Coalfield in
S.E. Scotland. Here New Age Resource are planning to develop a
new drift mine to exploit at least 110m tonnes of coking coal,
which they intend to supply steel works in Teesside, Scunthorpe
and South Wales. According to a presentation given to investors
earlier this year, they intend to commence production in 2017.
(29) What the impact of this development will be on the domestic
demand for the coking coal to be produced from Bradley is far
from clear. However, all these developments the technical
developments that reduce the demand for coking coal plus the
exploitation of new coking coal resources in the UK weakens any
case being put forwards here for the need to develop the coking
coal potential of the Bradley site.
26
27
4.38 At this point, the discussion of the situation facing Scotland and
Wales in paragraphs 1.2 1.4 plus the Applicants financial position,
mentioned in paragraphs 2.3.5 to 2.3.7 and at 4.22 again becomes
relevant.
4.39 The Agent in their EIA submission at Chapter 3, discussing the Market
for Coal, make the following statement:
3.14.7 In response to strong coal demand, indigenous coal production has
been falling due to a combination of deep mine collieries reaching the end
of their economic lives combined with unprecedented occurrences such
as the recent fire at Daw Mill Colliery which forced early closure of the
mine. Surface mines have found it difficult to obtain the planning
permissions necessary to replace this lost tonnage.
3.14.8 In 2013 UK production fell to its lowest recorded level of 13.0
million tonnes. This has led to a strong growth in coal imports to meet
demand.
4.40 Two issues arise from this statement. Firstly the decline in coal
production issue and the associated Restoration Bond issue and secondly,
UK Coals claim that since the closure of Daw Mill it has been difficult for
the Company to gain planning permission for new surface mines.
4.41 It is very generous for UK Coal, in its present guise, to take all the
blame for the problems faced by its predecessor as being solely
responsible for the recent decline in coal production. However, they
cannot take all the credit for the fall in UK Coal production, because it fails
to mention another reason for the fall in coal production in the UK, the
collapse of the two biggest opencast coal operators in Scotland, Scottish
Coal and ATH Resources. It is their demise which has left Scotland with its
Mine Restoration Crisis as explained in paragraph 1.3. This problem exists
because of weaknesses in Restoration Bond schemes.
4.42 In a consultation document Consultation on Opencast Coal
Restoration: Effective Regulation, issued by the Scottish Government in a
response to this crisis, the following statement appears:
....10.3 Following the ATH and SRG failures, it is clear that companies
will find it more difficult to obtain insurance bonds (even assuming they
are available at all)... (30)
4.43 Judging from more recent experience in England as well, such as at
the Minorca site discussed below, this market failure of no insurance
bond market existing to cover the risk of the coal operator going
bankrupt, because the risk is too great should, itself, act as a red light to
stop such risky forms of development, until sufficient confidence has been
restored in the UK domestic coal industry and proper insurance based
bonds become available again.
28
been pursuing a number of new surface Mine proposals, five of which had
reached the stage of being ready for determination:
The score is then two approvals, two rejection and one dont know, the
latter because of the decision taken by the Company to withdraw the
application almost at the last minute without any public comment. Hence
the claim made in the EIA about how difficult it is to get planning
permission does not seem to be fully supported by the evidence.
4.49 To conclude this section, these are LAONS Economic Viability
Objections:
That the following be treated as material considerations when assessing
the Bradley Surface Mine Application.
The Applicant will not have sufficient resources to restore the site.
(see paragraphs 1.2;1.5 1.6; 2.3.1 2.3.5; 2.3.6 2.3.7 and 4.36 -4
30
That the applicant and their agent have made no case based on any
forward projections about the need to mine this coal. LAONs
assessment, based on DECC figures, indicates that before the coal
reserves on this site have been exhausted, the UK will be producing
more thermal and coking coal than it can use for power generation
purposes or steel making. See paragraphs 4.4 to 4.31 for thermal
coal, and 4.32to 4.37 for coking coal). We ask that considerable
weight be given to this material consideration.
In addition, any assessment about the future need for coal should
include an additional assessment on the impact that the disruptive
technologies of renewable power generation and energy storage
will have up to 2020. The Applicant and their Agent have provided
no information on the impact of these technologies. LAON has
indicated that the adoption of these technologies is likely to hasten
the decline in the demand for coal before 2020, even more quickly
that the published DECC statistics suggest. The likelihood of this
happening should be considered a material consideration. (See
paragraphs 4.24 - 4.31)
based bond is the only guarantee that, should the worst happen,
and this company goes bankrupt again, then a fully paid up bond
exists to restore the site. Such is the importance of this material
consideration that LAON suggests that if it is impossible to put such
an insurance based bond in place, then this application should be
rejected. (See paragraphs 1.3 and 4.41 4.47)
That the Applicants and Agents claims that ...Surface mines have
found it difficult to obtain the planning permissions necessary to
replace this lost tonnage.... is at best not proven in the discussion
at paragraph 4.48 and should be discounted .
That the mining and then burning of this coal will contribute to the
UK remaining in breach of EU law relating to levels of Air Pollution in
the UK (see paragraphs 3.22 -3.23)
That the burning of this coal from Bradley will contribute to 1,600
premature deaths, 68,000 additional days of medication, 363,266
working days lost and more than a million incidents of lower
respiratory symptoms, which is costing 1.1 to 3.1 billion (1.3 to
3.7 billion) each year. Lives cannot have a value put on them.
However a proportion of the cost of treatment provided by the NHS
to counter the effects of Air Pollution caused by the burning of this
coal would be attributable to this proposal if the Appeal is upheld.
The cost of this should be a material consideration when assessing
this planning appeal. For a full discussion of this objection see 3.22
3.25
32
5.2 In addition, these are two other issues that LAON would like to form
part of the Environmental objection to this proposal:
An additional measure of the Environmental Impact on this proposal of:
In all, that makes 26 years of the area being affected by the shadow
of the risk of, and experience of, opencast mining if permission is
granted.
Lastly, that the claim that utilising this coal reserve imposes a
smaller carbon footprint impact on the environment is not proved
(For a full discussion of this conclusion see paragraphs 3.8 to 3.12)
5.3 These are the Viability and Need for Coal issues which form the basis
of LAONs Viability and Need for Coal objections:
That the following be treated as material considerations when assessing
the Bradley Surface Mine Application.
The Applicant will not have sufficient resources to restore the site.
(see paragraphs 1.2;1.5 1.6; 2.3.1 2.3.5; 2.3.6 2.3.7 and 4.36 -4
.47) We ask that considerable weight be attached to this material
consideration.
That the applicant and their agent have made no case based on any
forward projections about the need to mine this coal. LAONs
assessment, based on DECC figures, indicates that before the coal
reserves on this site have been exhausted, the UK will be producing
more thermal and coking coal than it can use for power generation
purposes or steel making See paragraphs 4.4 to 4.31 for thermal
coal, and 4.32to 4.37 for coking coal. We ask that considerable
weight be given to this material consideration.
In addition, any assessment about the future need for coal should
include an additional assessment on the impact that the disruptive
technologies of renewable power generation and energy storage
will have up to 2020. The Applicant and their Agent have provided
no information on the impact of these technologies. LAON has
indicated that the adoption of these technologies is likely to hasten
the decline in the demand for coal before 2020, even more quickly
that the published DECC statistics suggest. The likelihood of this
happening should be considered a material consideration. (See
paragraphs 4.24 4.31)
That the Applicants and Agents claims that ...Surface mines have
found it difficult to obtain the planning permissions necessary to
replace this lost tonnage.... is at best not proven in the discussion
at paragraph 4.48 and should be discounted.
Stephen Leary, for The Loose Anti Opencast Network, with assistance
which includes the following persons:
Anthony Rae, Jeremy Ackertill and Dr Orest Mulker
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35
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