MINORCA OPENCAST PROTEST GROUP RESEARCH REPORT No 1 COAL, COLLUSION AND COMMUNITIES STEPHEN LEARY Summary This paper explores why, from the adoption of the revised Minerals Planning Guidance 3 (MPG3) up to October 2009, coal operators have been increasingly successful at winning appeals for opencast mines in England and the possible implications this has for future planning applications. THIS PAPER HAS BEEN WRITTEN BY STEVE LEARY, WHO HAS BEEN THE CHAIRPERSON OF THE MINORCA OPENCAST PROTEST GROUP (MOPG) SINCE OCTOBER 2008. HE HAS WRITTEN THIS IN A PERSONAL CAPACITY AND IT DOES NOT REPRESENT THE VIEWS OF MOPG COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 1 This paper argues that because the Government perceives the need to sustain a viable coal industry in England as paramount, this is having a detrimental effect on those communities in large areas of England who live on or near the shallow coalfields, as their interests are negated in the quest to maintain a viable domestic coal industry and provide a buffer of energy reserves in case other sources of energy supply are interrupted. This paper explores how we have arrived at this position after campaigners had almost brought a halt to opencast coal mining in the 1990’s. In 1999 it seemed that a major environmental battle had been won. Those who had vigorously campaigned against the ravages of opencast coal mining as detailed in ‘Digging Up Trouble’ (1) could celebrate the publication of a new revised Mineral Planning Document, MPG3 (2). This stated that there should be a presumption against opencast coal mining unless a planning application passed a number of environmental tests, requiring proof of the safety of an application, or in circumstances where this could not be achieved, the benefits accruing when the site was restored outweighed the environmental costs imposed whilst the site was being worked (3). For a while the coal producers were refused planning permission or backed away from submitting applications. Now, with the Secretary Of State for Communities and Local Government endorsing the Inspectors decision on UK Coal plc’s Huntington Lane application in October 2009, we have reached the point where, over the last four years (since Long Moor was approved in 2005) three other applications, all in England and all had been opposed by the relevant Local Authority, have been granted on Appeal, making, with Huntington Lane, five in all. We have also seen Local Authorities not defending their planning decisions and thereby granting planning permissions and saving themselves the cost of a Public Inquiry.(5) Those locally opposing opencast mining applications still have MPG3, but the “presumption against” directive seems to carry less weight. COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 2 The route to dilution can, it is argued, be traced. It starts in the Cabinet Office, goes via the Departments of State responsible for Local Government, is ingested and moulded by the Coal Forum and injected into the 2007 Energy White Paper. In addition a reiterative Public Inquiry process is underway whereby each new successful planning application effectively sets a precedent for the one that follows as case law is built up by successful applications. Each success seems to chip a bit more off MPG3’s revised safeguards. As each new development in the policy process occurs, applicants successfully incorporate these into their applications. This is how in 1999 MPG3 makes a series of clear statements about the sourcing of coal not being an issue for the planning system to the indication of the Inspector at the Huntington Lane Inquiry that the need for coal was to be one of the key considerations. The wake-up call for the Government that it had a real energy supply issue looming came with the Cabinet Office PIU Energy Policy Review in 2001. This, in the Key Themes and Points in the Submission Document by Professor John H Cheshire contained the following statement about the state of the UK Coal Industry “Further deep mine closures, and falling opencast output, could reduce UK coal production below 15 Mt/yr. by 2005 and some 10 Mt/yr. in 2010-20. If the UK coal industry falls below a certain size (perhaps its current size) it could be unsustainable.” (6) It is this paper’s contention that the Government has been reducing the significance of the “presumption against” opencast coal mining directive and working instead to sustain a viable, private, profitable coal mining industry, including deep and surface mine operations. The first sign of this was the publication of another planning guidance document MPS2, ‘Controlling and Mitigating the Environmental Effects of Minerals Extraction in England’, in 2005. This document set out a quality assurance methodology, which if followed, would increase the chances of a successful mineral extraction application. On first reading it is rather like a COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 3 “A Dummy’s Guide to How to Get your Application (including those for opencast mines) Accepted”. Long Moor came soon after. The second stage in this process of dilution came from the setting up of the Coal Forum by BERR in 2006 after another energy supply scare the previous winter. This is where the real issue of collusion comes to the fore. This body, made up of Coal Producers, Generating Companies, Unions, Rail Companies, the Coal Authority and the Government (all the stakeholders in the UK Coal Industry) was set up to explore how to maintain a viable sustainable domestic coal industry in an era of severe international competition over coal supply. The Forum’s answer to what was a sustainable UK coal industry was one which produced 20m tonnes annually from deep and surface mines. Although the Government has never officially set a target for UK coal production, it has never voiced disagreement with this target set by the Coal Forum. The context was set by a Minister at the first meeting “The Minister made it clear that he saw coal-fired generation as part of the future UK energy mix. In the immediate past coal had made a large contribution to electricity generation: last winter when there had been very high utilisation of coal-fired power stations in the face of shortages of other fuels. For the Government there was a need to take account not only of carbon reductions but also security of supply. As North Sea oil and gas outputs began to decline and older nuclear power stations were decommissioned, we needed to be very careful about dependence on imports – including the prospect of the potential reliance on imported coal. The Minister hoped that the Coal Forum, by bringing together both sides of the industry and other important groups, could begin to tackle these issues”.(7) Of course, if the Government and the industry worked together on finding a solution to this problem of maintaining a viable deep mine /surface mine coal industry it would save the need to consider other forms of state intervention which could maintain the industry, such as a public subsidy or even re-nationalisation. Is then the solution to the conundrum to be found in COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 4 officially sanctioned discrete changes in planning policies for surface mine applications which shift the balance back in favour of the coal producers? Since then, in the style of classic ‘pressure group’ politics, the Coal Forum has become the mouth piece of the domestic coal industry – a constant lobby vehicle for the promotion of a sectional interest. By its 10th meeting the minutes of the Coal Forum reported that “In the subsequent discussion members were pleased to note the Minister’s favourable comments regarding the potential for deep mining but they said that they were pro-coal in general and most were concerned that there should not be a return to an argument over deep versus surface mining. Members agreed in reality the surface mining sector remains key to the long term role an indigenous coal industry in the UK and represented a substantial proportion of the 20mt/pa which this national asset could provide towards security of supply. Members did however note that with regard to planning issues this was a matter for DCLG, and the Scottish and Welsh Governments, not DECC and there was a clear approach in place to seeking planning approvals despite the “presumption against”, which equally applied to deep mining, and that recent experience was encouraging in demonstrating the acceptability of surface mining in meeting continuing environmental standards.” (8) In this way the industry demonstrated its confidence in having discovered how to use the planning system to overcome the constraints set out in the revised 1999 MPG3.This degree of confidence may have reflected the influence that the coal lobby had had on the Energy Review White Paper 2007, when Lord Truscott observed that “ the Coal Forum had been established to improve communication between Government and those involved in coal related industries, and had played an important role in influencing Government. He said he was aware of the discontent surrounding the lack of a robust statement regarding coal in the White Paper but he said the views of the Forum had been taken into consideration. Lord Truscott noted that Paragraph 4.31 of the White Paper COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 5 states the Government believes that there is a value in maintaining access to reserves of coal and he felt that this was a positive message that could be referred to in any planning application” (9) For those trying to oppose opencast mining applications this prophecy has come to haunt us. Here a Minister shines a green light on how to successfully apply for an opencast mine. It is precisely this paragraph that has featured so significantly in the Planning Inspectors Report on Huntington Lane (10) and the subsequent comments of the Secretary of State for Communities and Local Government (11). Therefore the ‘need for coal’ arguments are now being deployed effectively by applicants to overcome the constraining arguments in paragraphs 2,3 and 4 which were put into MPG3 in 1999 to insulate the planning system to some degree, from the very same ‘need for coal’ arguments. This is how creeping planning decisions have diluted the revised MPG3. Central to this process of collusion and dilution has been the economic reality that, in the first decade of this century, deep mines in England do not pay. Those people in Leicestershire who are opposing the Minorca application, which is currently before Leicestershire County Council, are experiencing a new version of the ‘need for coal’ argument as put forward by UK Coal plc, the only major deep mine producer operating in England. In support of its Minorca Surface Mine Application the company argues “Surface and deep mine coal are considered by UK Coal (plc) to be complementary activities, and different sources of production are mutually supportive. MPG3 (revised) states that “........opencast is generally more flexible than deep mined coal....it can reduce the overall cost of companies with both opencast and deep-mine interests.”Surface coal and deep mining are further supportive due to the required blending of different grades of coal from different sources as required by power generators. MPG3 (revised) states “..........generators regard a coal feed with an average chlorine content above a certain level as presenting an unacceptable risk to their boilers...” Paragraph 3 continues “.....few deep mines produce coal with a chlorine content which would appear to meet the needs of generators with little or no need for blending”. As such, there is an interdependence of employment at COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 6 opencast sites and collieries, and this is one of the factors which determined the Company’s overall production and marketing strategies”(12) The Minorca Opencast Protest Group’s Response Document objecting to the planning application observes “... UK Coal (plc) puts forwards an argument that asks the communities surrounding the Minorca site to become stakeholders in their coal extracting enterprise. Despite the fact that MPG3 makes the sourcing of coal supplies a matter for generating companies alone (see the discussion on paragraph 2 above) UK Coal suggests that these communities become part of UK Coal’s Business Plan and accept the need to subsidise the overall cost of the coal that UK Coal (plc) produces from its deep mines by allowing it to develop new, cheaper surface mines. They want these communities to share the commercial risks that this company faces. This is an important issue for UK Coal (plc), a company that lost £82 million in the first half of 2009. In addition its deep mines have only been profitable for one calendar year since 2000. UK Coal (plc) is the only coal producer in England who treats opencast coal and deep mine coal as ‘mutually supportive’. Other producers in England only produce surface coal. (13) This means that local communities in the UK who live next to UK Coal (plc) surface mines are being asked to bear the social costs (especially the reduction in the value of private property) associated with opencast coal production in order to subsides UK Coal’s deep mine coal production. Why should these communities, including those surrounding the Minorca site in this case, be thought of as willing to contribute to the profitability of a private company? The idea is absurd. As MPG3 paragraph 3 states “nor does it see a role for the (planning) system in influencing the operation of the market in coal”. By making this ‘mutually supportive’ claim UK Coal (plc) is asking Leicestershire County Council to influence the operation of the market in coal. As this is the case, this ‘mutually supportive’ argument of UK Coal’s should be disregarded and not considered as a material consideration”. (14) This then is where planning policy creep has led opencast coal operators: they are in a position where they feel bold enough to suggest such a COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 7 justification as a material consideration in a planning application. Why should such communities effectively be asked to pay a public subsidy which maintains a viable privately owned coal industry in England? What more evidence do we want that a degree of collusion exists between coal operators and the Government to the detriment of local communities? Perhaps the answer to the latter, if more evidence is needed, is the way this Government is resisting calls for the introduction of 500 metre buffer zones around opencast sites as enjoyed by those living in Scotland and Wales. (15). The conclusion for MOPG drawn from this analysis is twofold. Firstly, that without another review of MPG3 that restates more explicitly policy safeguards that protect local communities from the consequences of successful opencast mining applications, such as the introduction of a 500 metre buffer zone, more English communities are in danger of finding themselves confronted by an opencast mining application because of the importance attached to ‘need for coal’ arguments. Secondly, urgent attention should be given to considering how to combat and contest the “need for coal” arguments that have been so successfully utilised in recent opencast coal mining applications and which form part of UK Coal’s arguments supporting their Minorca application in any further submission MOPG makes to Leicestershire County Council. © Stephen Leary Notes 1) Chapter 8, *Digging up Trouble The Environmental Protest and Opencast Coal Mining”, H Beyon et al, Rivers Oram Press, 2000. 2) “Minerals Planning Guidance 3: Coal Mining and Colliery Spoil Disposal”,1999. To see MPG3 go to: http://www.leics.gov.uk/index/environment/planning/community_ser vices_planning/planning_general/links.htm COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 8 3) Paragraph 8 MPG3 4) Page 9, Key Themes and Points in the Submission Document, Professor John H Cheshire, Cabinet Office, 2001. To see, go to: http://www.cabinetoffice.gov.uk/media/cabinetoffice/strategy/assets/ sumkeypoints.pdf 5) As reported by the Campaign for the Protection of Rural England. The other sites are: Delhi Extension (Northumberland), Shotton, Northumberland and Lodge House (Derbyshire) see: http://www.cpre.org.uk/news/view/630 6) For example, the Potland Burn site in Northumberland, as reported in The Journal news story “ Bid to rework Butterwell Opencast Site” 17/1/2009,see:, http://www.journallive.co.uk/north-east-news/todaysnews/2009/01/17/bid-to-rework-opencast-site-61634-22712550/ 7) Minutes of the 1st meeting of the Coal Forum 14/11/06 8) Minutes of the 10th meeting of the Coal Forum 23/10/08 9) Minutes of the 5th meeting of the Coal Forum 14/6/07. All minutes of Coal Forum meetings can be found on: http://webarchive.nationalarchives.gov.uk/+/http://www.berr.gov.uk/ /whatwedo/energy/sources/coal/forum/meetings/page37296.html 10) Huntigton Lane Public Inquiry Report para 72 where UK Coal cite this paragraph in evidence and this claim is discussed and supported by the Inspector in paragraphs 483-488 and further concluding comments in paras 578 -580. To see go to: COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 9 http://www.communities.gov.uk/documents/planningcallins/pdf/1352082.pdf 11) Letter confirming the Inspector’s Report on the Huntington Lane public Inquiry para 16. To see it, go to: http://www.communities.gov.uk/documents/planningcallins/pdf/1352073.pdf 12) Additional Information, J39 Leicestershire County Council, by Wardell Armstrong on behalf of UK Coal; July 2009. To see it, go to: http://www.leics.gov.uk/index/environment/planning/community_ser vices_planning/planning_applications/eplanning_searchform/eplannin g_resultpage/eplanning_detailpage.htm?appno=2009/C088/07&map =f It is at the bottom of the list and filed under Environmental Statement - NL08024 - Minorca Socio Economic Impact. 13) Since this was written it has been drawn to the notice of MOPG that earlier this year UK Coal sold the Maltby Colliery in Yorkshire to Hargreves Services. This is the only deep mine Hargreves owns and they have no surface/opencast mines. 14) Response to Application by UK Coal Mining Limited, the Former Minorca Colliery Coal and Fireclay Surface Mine, Minorca Opencast Protest Group P 34, September 2009. To see it, go to: http://www.leicestershirevillages.com/measham/minorcaprotest.html 15) Two Parliamentary questions have been put to Ministers on this issue, one in the House of Lords by Baroness Miller of Chilthorne Donner COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 10 (26/3/07) and in the House of Commons more recently (9/2/09) by David Wright MP. The reply on both occasions indicated that no change in policy was currently being considered. To see it, go to: http://www.publications.parliament.uk/pa/ld200607/ldhansrd/text/7 0326w0005.htm and http://www.publications.parliament.uk/pa/cm200809/cmhansrd/cm0 90901/text/90901w0018.htm This is the first of a series of research report MOPG will be producing on the ‘Need for Coal’ argument. Copies of this paper are available on: http://www.leicestershirevillages.com/measham/minorcaprotest.html or http://mopg.co.uk/ Steve Leary can be contacted about this research paper on: steveatmopg@googlemail.com COAL, COLLUSION AND COMMUNITIES STEVE LEARY OCTOBER 2009 Page 11