Re Recent ex experience in in the the UK UK in inlan land sp spill ill sect sector: Changes, Chang s, infl fluences, uences, accr accredit itatio ion and and the the futur future! Dr. Jon Burton Managing Director Oracle Environmental Experts Ltd
CONTENTS 1. Introduction 2. Changes and influences in the inland spill sector 3. The relevance of accreditation 4. The future?
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)
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.
1. Introduction Pollution Incident Summary Pollution Incidents Data for 2015
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.
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 Under ‐ reporting? 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 Under estimated? £30,000 in fines, clean up charges and production losses.”
1. Introduction • Regulatory action/pressure; • Pressure from a third party to act due to impact or the threat of impact; Occurrence of a spill doesn’t necessarily • Whether or not the individual who has had the spill actually mean that a response, investigation and/or reports it and has appropriate insurance; clean up will be instigated • Whether or not the individual who has had the spill actually wants to make a claim on their insurance; Whether or not any action is taken, or an • Whether or not the insurers will cover the necessary works; instruction given to a particular contractor after a spill can depend on: • 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
2. Changes and influences in the inland spill sector Political Environ ‐ So what has changed and influenced Economic mental the inland spill sector in the UK in the last 10 years? PESTLE Legal Social Techno ‐ logical
2. Changes and influences in the inland spill sector Government Funding Brexit: Impact to be confirmed but may result in changes to domestic legislation in particular relating to waste, water and ecology Funding Pressure on Environment Agencies and Local Authorities: Impacts on ability of regulators to respond to incidents and to queries when dealing with an Political incident Fiscal incentives: e.g. landfill taxes Fiscal Brexit incentives
2. Changes and influences in the inland spill sector Temperature extremes 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 . Increase in spills due to flooding although impact often Environ ‐ Sustain ‐ not as great due to dilution Storms ability mental Sustainability: Some insurers require information on sustainability on/off site treatment vs disposal costs but minimal Flooding
Useful Guidance from Oil Care Campaign http://oilcare.org.uk/look ‐ after ‐ your ‐ oil/flood ‐ guidance/
2. Changes and influences in the inland spill sector Policy ‐ holder 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’ Third Social Vandalism Third party impacts / expectations: Can present significant parties challenges to working Social Media
2. Changes and influences in the inland spill sector Policy ‐ holder Vandalism: Can’t predict number or location – landowner / policyholder often left to cover costs Social Media: Increased use of social media in recent years. Need to manage internal and external Third Social Vandalism communications carefully parties Social Media
2. Changes and influences in the inland spill sector ‐ Increase in in ‐ situ techniques (e.g. chemical oxidation, In ‐ situ SVE, bioremediation) remediation ‐ Increase in off ‐ site treatment (avoiding landfill tax) ‐ No major innovations in inland spill response Techno ‐ logical equipment in recent years Lack of Off ‐ site innovation treatment
2. Changes and influences in the inland spill sector Sentencing Sentencing Guidelines 2014: Massively increased fines Guidelines for environmental offences to ensure they have a real economic impact providing a strong deterrent from re ‐ offending. Env. Increasing Organisations convicted of offences under Regulation 38 Damage litigation Regulations of the EP Regulations 2010 could face fines of up to £3 Legal million, with a starting point of £1 million for the most serious offences. Last year the highest fine was £2 Million…this year for a number of combined offences a record £20 Million was given Oil Storage Civil Regulations Sanctions
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
2. Changes and influences in the inland spill sector Sentencing Guidelines Increase in litigation: particularly ROI and NI. Many accredited contractors finding themselves the subject of scrutiny by others Env. Increasing Damage Oil Storage Regulations: slowly reducing number of spills litigation Regulations in England and now Wales. Legal Environmental Damage Regulations: Reinforces polluter pays principle and introduces remediation goal of return to baseline conditions. Oil Storage Civil Regulations Sanctions
2. Changes and influences in the inland spill sector Recession Proof Recession Proof: Spill sector to some degree recession proof as Accidents will happen! Lack of Oil Price insurance Oil Price: See an increase in oil thefts when Economic oil price is high. Range from small spills to some very large incidents as a result of pipeline tapping Competition Tendering
2. Changes and influences in the inland spill sector Recession Proof Increasing amount of tendering: common for commercial clients but also seen for clients on domestic spills in recent years Lack of Oil Price Underinsurance / no insurance: major influence on insurance whether work is instructed and the extent of any work Economic Competition: From other UK Spill accredited contractors but also non ‐ accredited companies Competition Tendering
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.
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
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
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
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
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