Recent experience in the UK inland spill sector: Changes, influences, accreditation and the future!

Transcription

1 Recent experience in the UK inland spill sector: Changes, influences, accreditation and the future! Dr. Jon Burton Managing Director Oracle Environmental Experts Ltd

2 CONTENTS 1. Introduction 2. Changes and influences in the inland spill sector 3. The relevance of accreditation 4. The future?

3 1. Introduction Pollution Incident Summary EA Pollution Incidents Data for 2012 In 2012 the EA reported that they received reports of ~22,000 pollution incidents each year In 2012, ~3% (617) of all reported pollution incidents in England and Wales were serious or significant in that they caused significant harm to people or the environment (i.e. Cat 1 and Cat 2)

4 1. Introduction Pollution Incident Summary In 2012, the waste management, agriculture and the water and sewerage sector accounted for 60% (370) of pollution incidents. In particular, there had been a big increase in pollution incidents in the waste sector.

5 1. Introduction Pollution Incident Summary Pollution Incidents Data for 2015

6 1. Introduction Causes In 2015 containment and control failures on farms were the single largest cause of incidents affecting water followed by those from the water industry Failure of both secondary and tertiary containment (if present) See CIRIA 736! The sectors causing no serious incidents in the 3 years 2013 to 2015 were onshore oil and gas, textiles and non ferrous metals.

7 1. Introduction But what about the type of pollutant, and specifically oil? EA Article from 2010 Oil pollution incidents reported to us have halved compared to ten years ago, since the introduction of the Oil Storage Regulations in England. There are now around 3000 pollution incidents involving oil and fuels every year. Although some of these affect land, the vast majority affect the water environment. On average an oil spill costs a typical business up to 30,000 in fines, clean up charges and production losses. Under reporting? Under estimated?

8 1. Introduction Occurrence of a spill doesn t necessarily mean that a response, investigation and/or clean up will be instigated Whether or not any action is taken, or an instruction given to a particular contractor after a spill can depend on: Regulatory action/pressure; Pressure from a third party to act due to impact or the threat of impact; Whether or not the individual who has had the spill actually reports it and has appropriate insurance; Whether or not the individual who has had the spill actually wants to make a claim on their insurance; Whether or not the insurers will cover the necessary works; Whether or not the individual has the available funds to cover the works themselves if they have no insurance or insurers won t cover the works; and

9 2. Changes and influences in the inland spill sector Political So what has changed and influenced the inland spill sector in the UK in the last 10 years? Economic PESTLE Legal Social Environmental Technological

10 2. Changes and influences in the inland spill sector Brexit: Impact to be confirmed but may result in changes to domestic legislation in particular relating to waste, water and ecology Government Funding Funding Pressure on Environment Agencies and Local Authorities: Impacts on ability of regulators to respond to incidents and to queries when dealing with an incident Political Fiscal incentives: e.g. landfill taxes Brexit Fiscal incentives

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12 2. Changes and influences in the inland spill sector Climate: Can have major influence on the number and frequency of spills. More spills in very cold and very hot weather and also as a result of storms. Temperature extremes Increase in spills due to flooding although impact often not as great due to dilution Environmental Sustainability Storms Sustainability: Some insurers require information on sustainability on/off site treatment vs disposal costs but minimal Flooding

13 Useful Guidance from Oil Care Campaign after youroil/flood guidance/

14 2. Changes and influences in the inland spill sector Policyholder expectations: Insurance claims focus on Treating Customers Fairly All firms must be able to show consistently that fair treatment of customers is at the heart of their business model Policyholder Third party impacts / expectations: Can present significant challenges to working Vandalism Social Third parties Social Media

15 2. Changes and influences in the inland spill sector Vandalism: Can t predict number or location landowner / policyholder often left to cover costs Policyholder Social Media: Increased use of social media in recent years. Need to manage internal and external communications carefully Vandalism Social Third parties Social Media

16 2. Changes and influences in the inland spill sector Increase in in situ techniques (e.g. chemical oxidation, SVE, bioremediation) In situ remediation Increase in off site treatment (avoiding landfill tax) No major innovations in inland spill response equipment in recent years Technological Lack of innovation Off site treatment

17 2. Changes and influences in the inland spill sector Sentencing Guidelines 2014: Massively increased fines for environmental offences to ensure they have a real economic impact providing a strong deterrent from reoffending. Organisations convicted of offences under Regulation 38 of the EP Regulations 2010 could face fines of up to 3 million, with a starting point of 1 million for the most serious offences. Env. Damage Regulations Sentencing Guidelines Legal Increasing litigation Last year the highest fine was 2 Million this year for a number of combined offences a record 20 Million was given Oil Storage Regulations Civil Sanctions

18 2. Changes and influences in the inland spill sector Environmental Civil Sanctions (England) Order 2010 Permits the EA and Natural England to use civil sanctions (e.g. Enforcement Undertakings) which can be used against those committing certain environmental offences as an alternative to prosecution and criminal penalties of fines and imprisonment

19 2. Changes and influences in the inland spill sector Increase in litigation: particularly ROI and NI. Many accredited contractors finding themselves the subject of scrutiny by others Sentencing Guidelines Oil Storage Regulations: slowly reducing number of spills in England and now Wales. Env. Damage Regulations Legal Increasing litigation Environmental Damage Regulations: Reinforces polluter pays principle and introduces remediation goal of return to baseline conditions. Oil Storage Regulations Civil Sanctions

20 2. Changes and influences in the inland spill sector Recession Proof: Spill sector to some degree recession proof as Accidents will happen! Recession Proof Oil Price: See an increase in oil thefts when oil price is high. Range from small spills to some very large incidents as a result of pipeline tapping Lack of insurance Economic Oil Price Competition Tendering

21 2. Changes and influences in the inland spill sector Increasing amount of tendering: common for commercial clients but also seen for clients on domestic spills in recent years Recession Proof Underinsurance / no insurance: major influence on whether work is instructed and the extent of any work Competition: From other UK Spill accredited contractors but also non accredited companies Lack of insurance Economic Oil Price Competition Tendering

22 3. The relevance of accreditation The UK Spill Contractors Accreditation Scheme is voluntary and exists to maintain consistent standards of oil spill clean up in the UK. The standards for Accreditation in the Scheme are supported by the Maritime & Coastguard Agency and the Environmental Agencies and provides a guide to consumers, industrial or commercial organisations of good practice.

23 3. The relevance of accreditation It should be the case that the regulators recommend that UK Spill accredited contractors are used clients tendering spill response contracts insist on UK Spill accreditation when you use a UK Spill accredited contractor you receive a higher quality service

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27 3. The relevance of accreditation MANDATORY Accreditation Modules Module 0. Standards Compliance & Company Information Module 1. Basic Spill Responder OPTIONS SPECIALIST Accreditation Modules Module 2. Freshwater/Inland Water Spills Module 3. Ground Water Spills Module 4. Tanker Rollover/Product Uplift Module 5. Marine Oil Spills Module 6. Marine Hazardous and Noxious Substances (HNS) Spills (Ship Sourced) Module 7. Onshore Chemical Spills (Land Sourced Hazmat/CBRN) Module 8. Contaminated Soils

28 3. The future? What will the future hold for UK Spill and UK Spill Accredited contractors? Fewer oil spills as prevention increases Change in the challenges presented by spills Contractors will need to increase diversity of their spill response offering UK Spill will also need to change to support its members

29 4. The future? Increase in use of biofuels EU legislation means that the percentage of ethanol or FAME in each litre of fuel is going to rise Increases dissolution of BTEX into water phase

30 4. The future? View from OFTEC Homes could switch to a renewable alternative, such as a vegetable oil blend, by as early as We are going through a period of significant change in the way we consume energy, from the move towards electric cars for transport to renewable sources of heating. Biofuels could represent a realistic and viable option to help rural homes reduce their carbon emissions. We have presented our detailed proposals to local MPs and government and will shortly begin real world testing.

31 4. The future? For inland spill contractors: Increasing litigation more challenges to contractors Likely to include challenge to current approach to use of risk based remedial targets Increase in range and diversity of services (modelling, prevention, training etc)

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36 4. The future? For UK Spill: Increase in range of module types for responders to stay relevant Working with other trade associations: (e.g. BDMA, ISAA) Increase in UK Spill accredited training? Increasing visibility on international stage (e.g. Interspill)