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Memorandum submitted by Celtic Energy Limited
Contents
1. Introduction
2. Celtic Energy Limited - The company
3. The South Wales Coalfield
4. Government Energy Policy
5. The Report "Energy in Wales"
6. Clean Coal Technology
7. Land Use Planning
8. Coal Planning Policy in Wales
9. Environmental Standards
10. Community Issues
11. The Role of Statutory Environmental Bodies
12. Conclusions
1. Introduction
1.1 Celtic Energy Limited ('Celtic Energy') welcomes this opportunity to present evidence to the House of Commons Welsh Affairs Committee as part of the Review of Energy in Wales. The company notes that a two volume report was published by the Committee in July 2006, with the intention of making a contribution to the national debate on energy. That publication considered all aspects of energy ranging from nuclear to renewable sources and whilst it took evidence on the importance of coal, it specifically excluded reference to opencast coal extraction. In the opinion of many in the energy producing and consuming industries, that omission was a major weakness of the review, and regret was expressed to Members of Parliament and the National Assembly of Wales. However, Celtic Energy is pleased that an additional inquiry has been arranged and that the opencast coal industry is now able to contribute to this review on matters relating to the industry in Wales.
2. Celtic Energy Limited - the company
2.1 Celtic Energy was formed in January 1995 following the privatisation of the Coal Industry in the United Kingdom, having acquired the interests of British Coal Opencast in South Wales. Since then, the company has been the major producer of coal in Wales and currently operates three opencast sites in the South Wales coalfield with a fourth site due to commence in the near future. In addition, the company has a central washery and distribution facility which deals with most of the coal production. The company supplies coal to a number of markets across South Wales, principal amongst which is Aberthaw Power Station. Other markets include Corus Steelworks at Port Talbot, Lafarge Cement Works at Westbury, domestic consumers across Britain and exports to Europe. In percentage terms, Celtic Energy broadly supplies 70% of its sales to the electricity and industrial markets, 20% to the UK domestic market, and 10% is exported mainly to Belgium and France.
2.2 Celtic Energy produces approximately 1.2 million tonnes of coal per annum from its sites at Margam, Selar and Nant Helen. The Margam site produces high volatile bituminous coal suitable for power station blends, cement manufacture and steel production, whilst the other two sites produce low volatile anthracite used in power station blends, for industrial boilers and domestic purposes. Power station blends and graded anthracite are produced at the Onllwyn Distribution Centre, whilst coal for cement production and steel making is dispatched directly from the Margam site.
2.3 The company employs approximately 300 people all of whom live within south Wales and most within 25 kilometres (15 miles) of their places of work.
3. The South Wales Coalfield
3.1 In South Wales, unlike other coalfields in the United Kingdom, the diversity of the coal qualities that are available, ranging from high volatile steam coal to the low volatile anthracites enable a broad spectrum of customers can be supplied. In order to maintain this broad customer base, many of the coals that are mined are blended so that specific customer requirements are met. It is generally the case that supply companies in every economic sector require stock to enable continuity of supply to the markets. Coal is no different and thus the industry needs the range of coals for blending to satisfy market requirements. However, unlike some other industries, it can take several years for a supply site to become available to meet demand, and any delay from whatever cause, affects the supply pattern. Without reserves capable of being worked, there will be no assured supply for the markets, and no assured future for the company, for jobs, or for the communities which rely upon the coal industry. Celtic Energy cannot afford to carry large stocks of coal on the surface, other than for brief temporary periods and the company must attempt to meet demand as it arises. It is therefore, a simple fact that the coal industry exists to meet the requirements of the markets. Take away the industry and the markets would have to be supplied from imports. Take away the markets and the industry would perish.
3.2 Large scale opencast coal operations began in south Wales as a war time emergency measure to meet the energy needs of the nation. Since then, the opencast industry has provided vital supplies of coal to markets directly from the operating sites. It is also an historic fact that in many cases, opencast coal production assisted through blending, in making coal supplies from deep mines suitable for markets. With the almost total demise of deep mining, opencast coal has been the main source of indigenous coal for markets in South Wales. For the foreseeable future, the industry would hope to continue that supply of indigenous coal. Without it, the markets would have to seek supplies from other parts of the UK or more likely given the similarly difficult supply pattern in England and Scotland, from outside the UK with all the attendant issues associated with job losses and economics.
4. Government Energy Policy
4.1 The UK Government has set four goals for the country's energy policy, namely
Ÿ To cut the UK's CO2 emissions by some 60% by 2050, Ÿ To maintain reliable energy supplies, Ÿ To promote competitive markets, Ÿ To ensure all homes are adequately and affordably heated.
4.2 Celtic Energy supports those four goals. It is of course in everyone's interests to reduce CO2 emissions, but whatever is achieved in the UK must be viewed in the context of European and World-wide achievement. It would be an unnecessary penalty for the UK economy if efforts affect commercial competitiveness. Maintenance of reliable energy supplies is vital for the economy and recent history contains many instances of actual or potential difficulties associated with interruption of supplies. We live in a world of competition and all sectors of the supply industry must be given a fair chance. Finally, for the welfare and health of the population, adequate and affordable heating of homes is vital. There is no reason whatsoever why coal and in particular, opencast coal should be excluded from this policy.
4.3 It is encouraging therefore that at both Central and devolved levels of Government, ministers have stated that coal will be part of future energy supply. For example, Malcolm Wicks (Energy Minister) made it very clear in an Adjournment Debate on 21st July 2005 that : "The Government firmly believe that there is a future role for coal as part of a balanced energy policy, providing that its potential environmental impacts can be managed, and that there can be a continuing role for UK produced coal in meeting our total coal requirements. The coal-fired generating sector has demonstrated its confidence in that vision by committing to install flue gas desulphurisation equipment at a number of power stations. However, the vision depends on sufficient supply of UK produced coal, which means coal from both deep and surface mines" (source Hansard). Also, The Welsh Assembly Government has emphasised that its energy policy "focuses on five equally important strands; energy efficiency, renewable energy, energy infrastructure, encouraging the production of electricity from new clean coal power stations and lowering carbon dioxide emissions.". In addition, the Welsh Assembly Government "sees a long term future for coal - current price trends indicate that there could be a significant revival in the industry". Whilst those particular views were expressed in August 2004, such comments were broadly repeated at the Welsh Energy Summit in December 2005. Thus there seems to be a clear enough view from Government that the coal industry has a future, subject to certain factors. Most recently, as reported in the Western Mail on 4th January 2007, the Welsh Secretary Peter Hain has said in relation to Welsh Coal that "There is now a good future for coal mining, deep mining as well". That is a very positive message for both sectors of the industry.
4.4 Celtic Energy is encouraged by such statements but retains some concern when they are read in conjunction with those in which the Government suggests a far greater reliance upon renewable energy sources and gas fired electricity generation in the long term, or even nuclear power with declining contributions from coal fired plants. The Government must accept that until such time as capacity is available, changes will not be immediate, and there will undoubtedly be a role for coal in traditional and new electricity generation for many years yet, certainly over the next 20 years at least. Recent events both during high winter demand and during summer maintenance periods have demonstrated that coal has an important role in power generation.
4.5 In the document "Energy Wales : Route Map to a clean, low carbon and more competitive energy future for Wales" (published by the Welsh Assembly for consultation in June 2005), it is made very clear that the future for coal lies in clean coal technology. Significantly, both coal fired power stations in South Wales (Aberthaw and Fifoots Point) have installed FGD technology to make that possible in part. Whatever additional clean coal technology is introduced, the onus for such technology lies primarily with the energy generators rather than the coal producers, and future demand will be determined accordingly. Coal producers will not determine that demand, merely respond to it, and opencast production is best placed to do so in Wales.
4.6 The current DTI report "The Energy Challenge" (July 2006) notes that coal contributes 33% of the UK electricity generating system, although in terms of total energy supply, the contribution is lower at 17%. There is no doubt that given the target for reduction in CO2 emissions, coal fired energy generation is a major target for change. Reduction in coal fired generating plant is likely due to the effects of age, but more significantly, due to the impact of the EU Large Combustion Plants Directive. Some estimates suggest that coal contribution to energy generation could fall to between 15 and 20% over the next 10-15 years. The effects of that reduction will be dramatic. If that loss of contribution is borne by indigenous sources, then the effects on jobs and local economy will be major and should not be under-estimated.
5. The Report "Energy in Wales"
5.1 Celtic Energy has read the two volume report from the Welsh Affairs Committee published in July 2006 with great interest. It was indeed a timely publication given the overall Review of Energy being carried out in the UK, there is no doubt that Wales is blessed with considerable opportunities for sustainable energy generation. Producers and consumers alike will be able to play an important role in determining how that future is mapped out, but there must be a clear understanding of what is realistic and what can be done in the short, medium and longer terms. Energy usage will not be changed overnight and current production should ensure that supplies are available whilst the changes take place. There can be no argument therefore that coal will continue to play an important role on energy generation in Wales for some time, and Abethaw Power Station will be central to that role. In that regard, the comments from Andrew Davies AM as noted in paragraph 41 of the Welsh Affairs Committee Report "there is no doubt that large-scale fossil fuelled stations will remain the mainstay of electricity production in Wales for the next 20 years" are particularly apposite. Where better than to source that coal in Wales, and by implication, in part from opencast coal sites. Shifting the burden of supply to elsewhere in the world is not a sustainable option.
5.2 Within the report, the various sources of energy are well documented namely, gas, oil, nuclear power and renewables. In the opinion of Celtic Energy Ltd, renewable sources however popular, will not answer more than a relatively small percentage of need. Declining gas resources means that in the future, there will be greater reliance upon supplies from other countries where political stability is not necessarily certain. Although nuclear power will attract some support and has been promoted in recent statements from the UK Government, it is not popular in terms of its long term legacy of waste.
5.3 Whilst chapter 4 of that report contained a review of the coal industry in Wales, it is acknowledged within the text that the details related solely to deep mining. It is regrettable that the message that Aberthaw Power Station relies on Tower for the majority of its coal has been put in the public domain when clearly it is not the case. (paragraph 73 refers). In the submission to the Review from RWEnpower (Second Volume, Section Ev47 refers), it is stated quite clearly that annual consumption of coal at the power station is 2.4-3.0 million tonnes, of which a third can be supplied locally. Celtic Energy supplies a similar tonnage to that from Tower and hence makes an equivalent contribution. That contribution is expected to continue after production from Tower has ceased in 2008 as noted in the text of the report (paragraph 77).
5.4 In that same paragraph 77 it is claimed that Aberpergwm is capable of producing 450,000 tonnes per annum, even though Celtic Energy believes that such production has yet to be achieved or even approached. It is understood that RWEnPower intends to increase the usage of coal at the Power Station, and for the sake of the coal industry in Wales, there has to be a significant percentage of that increase attributed to indigenous supplies. Indeed the power company alluded to that point in its submission to the Committee when commenting on frustrations in the planning regime, adding that it did not wish to see the supply of locally mined coal drying up. Even with Aberpergwm production, there can be no doubt that a large proportion of the indigenous supply of coal to Aberthaw Power Station will have to come from opencast coal sites.
5.5 What must be remembered is that coal fired power generation has ensured that peak demand for electricity has been met in the UK. Paragraph 40 of the report notes that during the winter of 2005/2006, some 50% of power was generated from coal. A significant proportion of that supply has been due to the input of coal from opencast coal sites. To lose that ability by abandoning the indigenous coal industry and the related power generation capacity is not an option which should be dismissed lightly, and is certainly not a decision which fits comfortably in the promotion of sustainable development.
6. Clean Coal Technology
6.1 It is acknowledged that there is a downside to continuing use of coal i.e., increased CO2 emissions which make it more difficult to meet Kyoto climate change obligations. This may well be used as an argument for building more nuclear power stations to replace coal. However, it would take at least 10 years to build and commission a new nuclear power station once planning permission has been granted (and that in itself could take several years). In that time, there will be continued pressure to reduce coal fired generation simply to meet CO2 targets. There is little that can be done to fill the gap with other sources unless there is even more gas burnt in power generation. For those supporting wind power, to equal the output of Sizewell B power station for example, many hundreds of 2MW turbines would be required, which if built offshore could occupy an area of several tens of square kilometres. The recently announced development of over 350 wind turbines off the coast of Essex (sufficient for 250,000 homes) demonstrates the scale of what may be required.
6.2 The report from the Welsh Affairs Committee contained a detailed analysis of the contribution made by coal, and identified that clean coal technology would be vital for future energy needs. Clean coal technology is a matter primarily for the energy producers rather than the commodity suppliers. In simple terms, the purpose of clean coal technology is to reduce emissions whilst maximising efficiency of the coal burn. Using low sulphur coal will achieve some of the objectives but the introduction of Flue Gas desulphurisation at Aberthaw will be the major influence of emissions of sulphur based gases. However with CO2, there is no similar process and the objective is to reduce gaseous emissions by making the coal burning process more efficient. Wherever the coal is sourced is essentially unimportant in that efficiency drive. There is therefore no reason whatsoever why opencast coal cannot contribute to the principles of such technology and indeed it should be the most available source within South Wales for many years to come.
6.3 In the opinion of Celtic Energy some thought should also be given to a guaranteed market share for coal to ensure that the objective of the Government's central energy policy, namely "to ensure a secure, diverse and sustainable supply of energy is met, and that whilst UK coal is available and the generators continue to choose it, UK coal can continue to contribute to energy diversity and supply." The survival of the coal industry is an essential part of the transition to an integrated clean energy system for electricity generation. If such a market share idea is adopted, it should not be prescriptive on the nature of supply. The market should determine the economics and the planning system should allow a level playing field so that opencast coal can compete.
7. Land Use Planning
7.1 As noted earlier, reliable energy supplies are essential. The UK Government must do whatever it can within the bounds of sustainability and environmental targets to support the indigenous energy industry. Not only does that apply to generators but also to the producers of energy commodities. The UK is blessed with abundant coal resources and whilst exploitation may be economically unacceptable in some instances, there is no justification for placing greater controls on coal mining that for other mineral activities (e.g. aggregates) or on other energy related developments (e.g. Renewable systems) on which the country relies. Planning restrictions often form the greatest hurdle to the coal industry.
7.2 The recent Barker Review of Land-use Planning recommends a new regime for major projects aimed at reducing the timescale for determination of applications for planning permission. Nuclear Power Stations and wind farms are specifically identified, but Celtic Energy would argue that all energy projects, be they generation or supply developments (including opencast coal), should benefit from this new regime, and that idea is commended to the Committee. Delays within the current planning system can mean that the time from pre-planning through application (with Environmental Statement) to receipt of a permission (if lucky) can run into years. Celtic Energy has had much experience of these delays, and perhaps two examples would be helpful to the Committee.
7.3 For its Nant Helen Extension site, the company undertook early discussions with Powys County Council in early 1995, and an application was made in February 1996. The application was exhibited to the public but disruption by a small group of protesters caused much damage to the exhibition to the extent that a police presence was necessary for the safety of company staff. Refusal by the Council in October 1996 for reasons which experienced officers were not prepared to defend led to a Public Inquiry in late 1997 with an approval from the then Welsh Office in July 1998. The total time amounted to approximately 3 years. The delays which resulted caused considerable disruption in supply and the permanent loss of many jobs. For the East Pit East Revised application made in July 2002, the company received a recommendation for approval in February 2003, only for the application to be called-in for determination by the Assembly Government in April 2003. A Public Inquiry in February 2004 ultimately led to an approval in December 2004, some 21/2 years since the application was made and importantly 22 months after the recommendation for approval by the relevant local authority. The delay which resulted, caused the markets to seek supplies from elsewhere which the company has had difficulty in regaining. Whilst it is not for Celtic Energy to comment specifically on the Ffos-y-Fran case, the company can say from experience, that the planning delays which it suffered prior to the site being acquired by Miller Argent, were considerable.
7.4 Celtic Energy supports the proper and necessary planning of land and accepts that every appropriate opportunity should be given to the assessment of the merits of each application. However, the company becomes very frustrated when apparently acceptable developments are actually or potentially thwarted by inappropriate issues and prejudice.
7.5 There is no doubt that substantial recoverable coal resources are available in the UK. Whilst those resources will not disappear, some may well become sterilised forever due to short-term policy decisions to phase out what is an efficient, safe and sustainable opencast coal industry. For the sake of the country, that must not be allowed to happen. It cannot be said too often, that "coal can only be worked where it exists". Surface developments which are not so constrained must not be allowed to sterilise important and economically workable coal resources. Once that happens as is the case in many parts of south Wales, the coal is effectively lost to the nation. Even where the coal is not physically sterilised, the adoption of unrealistic safeguarding and buffer zones policies could have the same effect. Celtic Energy would urge the Committee to resist attempts to sterilise coal either by direct or indirect means.
7.6 Land use planning embraces social issues as well as development. Coal mining is still a vital part of the south Wales economy. Even though deep mining is still in decline with the likely closure of the last remaining pit in south Wales in 2008, the industry is still important for employment. The report "The Economic Significance of the Welsh Coal Industry - Cardiff Business School 1997" argued that point successfully. Whilst numbers have fallen in recent years due to exhaustion of sites, there are still at least 1,000 people at work directly in the coal industry, with perhaps an equal number indirectly employed. These jobs are well paid and skilled. Their loss to any community would be dramatic. Celtic Energy would endorse the conclusion in the Welsh Affairs Committee report about loss of skills and would add that such loss from within opencast coal mining would be every bit as severe as those lost from deep mining.
8. Coal Planning Policy in Wales
8.1 In January 2006, the Welsh Assembly Government produced a draft Minerals Planning Policy Technical Advice Note on Coal. Celtic Energy participated in an advisory group which considered details of that document and provided an extensive response to the Assembly. In essence, the company welcomed the publication as a step towards achieving the objectives stated in Ministerial and Welsh Assembly Government statements. However, although minerals are vital to society and indigenous coal has a definite contribution to make, there was regrettably, a clear message in the document that coal is being treated differently from other minerals not only because of its obvious characteristics and markets, but fundamentally, in terms of land-use planning and environmental considerations. That difference in approach is not acceptable wherever it may be suggested and there is no justification for placing more stringent controls on the coal industry than apply elsewhere.
8.2 The coal industry accepts that there should be clear guidance on development of coal resources. The Technical Advice Note stresses the importance of safeguarding and deals at length with buffer zones. Celtic Energy supports the concept of buffer zones and separation zones in principle, but is most concerned that incorrect or inappropriate application of general policy could have a terminal effect on the industry and hence cause the overall energy policy to fail. The distances which are identified are based on a false premise, namely that opencast coal workings have a greater impact than hard rock aggregates quarries. There is no scientific evidence to support that conclusion. Hence there is no basis for a greater width for a buffer zone for coal than hard rock quarrying. To define any buffer on the basis of parity with other areas of the United Kingdom or political view is totally unacceptable to the Industry - they must be defined according to facts and local circumstances.
8.3 The Technical Advice Note promotes that Health Impact Assessment and Social Impact Assessment should become part of every coal related application. Whilst Celtic Energy accepts that proper assessment of such matters is an important aspect, the impact on development costs could be huge, to the point of making schemes uneconomic. Such studies can be open-ended and can become embroiled in subjective assessment. No other industry appears to face such a prescriptive measure.
8.4 The Advice Note contains abundant reference to community involvement in coal development from the initial discussion of proposals to the actual management of certain aspects of development. Celtic Energy has no objection to the proper procedures being adopted and would indeed support dialogue and exchange of views where this would ultimately lead to a more acceptable proposal, and a complaint free site. However, that support does not extend to promotion of unreasonable limitations on legitimate activity simply because an individual or a group of people do not accept an approved development.
8.5 Celtic Energy would expect Mineral Planning Authorities in Wales to implement the advice contained in the Coal Technical Advice Note consistently, because without that there would be no anticipation of success. However, the current arrangement of Mineral Planning Authorities does not give the industry confidence in that regard. The expertise which is available is limited and the commitment to strategic minerals planning is frequently well-disguised or missing altogether. Celtic Energy would suggest that the 1996 Reorganisation of Local Government in Wales has failed to meet the objectives of strategic planning, and minerals development has suffered accordingly. Larger authorities with greater expertise and co-ordination may well be the better way forward.
9. Environmental Standards
9.1 Celtic Energy operates all of its sites on the basis of balancing the need to achieve commercial aims with the need to minimise the effect of its activities on the environment. All company activities comply with relevant statutory and regulatory requirements and all land holdings are managed with due regard to the environment. Day to day site operations are undertaken to ensure that dust and noise emissions are kept to a minimum in compliance with statutory controls with all plant being maintained to the highest standards. In planning sites for future development, the company prepares the most comprehensive Environmental Statements which take account of all relevant matters which may influence or be affected by the development.
9.2 Once coal extraction operations have been completed, sites are restored in accordance with agreed schemes with a strong commitment to protection and enhancement of scientific and ecological value of the land, commitment to increasing environmental quality and working in partnership with local community and specialist bodies. Sites are managed for lengthy periods, sometimes extending to 20 years from completion of operations. The company is proud of what it has achieved at sites such as Park Slip, Nant Helen, Derlwyn, Incline Top, Kays & Kears, Brynhenllys and Selar.
9.3 Celtic Energy would not only commend its record to the committee but would invite members of the Committee to see at first hand, the record of restoration and aftercare.
10. Community Issues
10.1 Celtic Energy is well aware that there is much opposition to its developments wherever they may be proposed. The issues are common to each site and are no different from those experienced by other members of the industry whether they be based in South Wales, North Wales, England or Scotland. In all cases, the opposition appears to be based on the alleged effects of the sites as they develop and the often repeated claims of damage to health, damage to the environment and damage to personal property as a result of site activity. Whenever claims of effects upon health are made, Celtic Energy undertakes the necessary investigation. Independent research has been unable to prove any direct link between opencast operations and the health of nearby communities. Workers within sites would be the most at risk of such effects and yet research has shown no adverse health impacts amongst them. Celtic Energy concludes that claims of health impacts by opposition groups in the public are unfounded, and yet they persist. Celtic Energy and the industry at large would welcome some support on the conclusions of the research.
10.2 Environmental damage may be regarded as loss of habitat, loss of landscape or loss of amenity. No development can take place without some effects upon the land. Celtic Energy adopts a policy at all times which seeks to minimise such effects, and where mitigation measures are capable of addressing those concerns, they are proposed and implemented. In every proposal put forward by the company, full assessments are made of the environmental impacts of development and the most experienced and respected consultants and experts are engaged to assess the implications. Regrettably, no matter what the findings of such assessment and analysis, those wishing to oppose opencast development will not believe the industry view and will always find a reason to continue their opposition sometimes quoting spurious examples of environmental damage. Sometimes that opposition will extend to identification of species which have never been near a site let alone affected by such a development. However, not all environmental impacts are negative. There are many examples of improvements in landscape and amenity as a result of opencast coal workings, and new habitats can be created so that they are every bit as good as, if not better than, those lost temporarily.
10.3 Allegations of damage to properties as a result of blasting are also commonplace. At no time has any blasting operation undertaken by Celtic Energy caused any proven case of damage to property. At all times, vibration levels are kept well below the threshold of nuisance which in turn is well below the threshold of cosmetic damage, e.g. cracking of plaster.
10.4 A real and relevant community issue which is often dismissed by those opposing development is the contribution which opencast coal sites make to the local economy. Jobs created by sites are filled by skilled workers from the general locality. Whether they be from the immediate neighbouring village is not an issue in the modern society where mobility and flexibility are key factors in employment. The fact is that all those employed by Celtic Energy live within South Wales and hence the economy of the region benefits. Supporting jobs in service industries and suppliers add considerably to the overall number so that whilst their are approximately 300 in the company, some 500 people rely upon Celtic Energy for jobs in South Wales.
10.5 Some people claim that communities suffer some cumulative impact as a result of opencast development over a lengthy period. Coal like any mineral, can only be worked where it exists. Communities made no issue of long-life coal mines and yet opencast developments are seen in a different light. Communities make no issue of factories and related industrial premises which support jobs whilst having a significant visual impact. Opencast sites should not be singled out for unreasonable claims of impact simply because of prejudice.
11. The role of Statutory Environmental Bodies
11.1 The Countryside Council for Wales (CCW) is the Government's statutory adviser on sustaining and conserving the nation's natural beauty, wildlife and the opportunity for outdoor enjoyment and its inshore waters. CCW is consulted by the opencast coal industry on future proposals and the comments which are provided are taken on board in every instance. Frequently, that advice can help to shape the proposal particularly if a feature of habitat can be protected by adopting a change to the proposal. The industry has a good relationship with CCW throughout operations and has worked with officers to provide new features of interest ranging from geological exposures associated with opencast coal extraction which have become or have the potential to become Sites of Special Scientific Interest. In addition, the industry has created new Nature Reserves and areas of local nature conservation interest to enhance the localities. Again officers of CCW have been involved at all stages and have commended the industry on its approach.
11.2 The statutory role of CCW also embraces commentary on applications for development via the local authority consultation. Sometimes that process will lead to recommendations that the development may be acceptable providing that suitable conditions are attached to any planning permission. On other proposals, the result of such consultation may be an objection or recommendation for refusal. Clearly, Celtic Energy does all it can to achieve the first outcome, but the company does understand the basis of objection in most instances, providing that the necessary data are provided. It may well be the case that the objection is a matter of opinion or scientific judgement which can be debated. However, it seems on occasions that the opencast industry is the focus of attention on issues which have no relevance, such as alleged impacts on areas remote from its sites. For example, questions are asked of the industry about matters which CCW officers should have ample knowledge given the statutory role which they play. The industry is happy to assist but there is always a cost. At some point that cost has to be judged as unreasonable. There are instances where too much emphasis is given to possibility of impact rather than probability.
11.3 The Environment Agency (the 'Agency') has wide responsibilities for managing the environment, including enforcing pollution legislation, overseeing the management of waste, water resources and freshwater fisheries and reducing the harm caused by flooding. Celtic Energy always consults the Agency prior to submitting applications for development and takes account of comments made. Similarly, the local authorities will consult the Agency on application received.
11.4 The opencast coal industry understands the role of the Agency but has reservations about how that role is practised. For example, the Agency appears to be oblivious to the timescale of development frequently taking weeks and months to respond to contacts. That can be very frustrating for the industry, particularly if there may be a request in that response for information which may involve survey work. Celtic Energy has often concluded that there is a lack of co-ordination in the Agency responses. Staff appear to be spread over many offices and the resulting correspondence may not always be complete. Even at meetings, there is a clear impression that there has been no previous contact between relevant staff, some being unaware of any site history. In several instances, the responses from the Agency have been in error with potentially serious and expensive consequences arising. Given that the final response from the Agency may well determine the recommendation to a planning committee, the concerns which have been expressed above are all too obvious in their impact.
12. Conclusions
12.1 Celtic Energy believes that opencast coal can play an important role in the future supply of energy in Wales. That role will only be possible if energy policy allows it to happen. There must be some clear guidance on that issue so that the coal producers can have some certainty.
12.2 Achieving that belief in a future for coal will of course require energy producers to use indigenous coal as a matter of choice. That choice will be greatly assisted if there is an opportunity to make that coal available economically and with a reliable supply. Celtic Energy can meet those two controlling factors provided that the planning and political systems allow.
12.3 The planning system should be capable of dealing with mineral development applications in a consistent manner. There are no fundamental differences between opencast coal extraction and hard rock quarrying and planning policy should not distinguish one from the other simply because of alleged impact or prejudice.
12.4 The minerals industry has the right to expect that staff involved in development control should be qualified and experienced enough to understand the issues associated with minerals development. As a result of reorganisation of local government, too many small authorities exist without any such expertise. There is a case for larger strategic authorities, one of which could arguably embrace the South Wales coalfield area. A similar argument may be made for the North East Wales coalfield, although without any experience of that area, Celtic Energy cannot comment in detail. Celtic Energy would argue that strategic local authorities could result in a better system of consultation which may speed up the planning system.
12.5 Celtic Energy would urge the committee to conclude that opencast coal extraction is not necessarily an unwelcome development and each case should be treated on merit. There is no case for opencast coal development to be restricted by inappropriate controls and prejudice. The facts do not support any such argument.
12.6 Finally, Celtic Energy would promote the word balance in dealing with energy policy. At least that would allow opencast coal to have a chance to influence future energy supply, and for the Wales economy to benefit accordingly.
January 2007 |