Dorset Marine and Coastal Topic Paper Series 2012 Minerals

Dorset has diverse mineral resources with stone continuing to be extracted from quarries and sand and gravel from both land based areas and licensed areas out at sea. Dorset minerals include Portland and Purbeck stone, chalk, clay and hydrocarbons (oil and gas). Minerals in the form of aggregate (sand, gravel and crushed rock from land or from marine dredged sources) are primarily used as raw materials by the construction industry, and for rock amour. Sand is used for beach replenishment. Offshore oil exploration has been active on to flow sufficiently freely to be extracted, an the Dorset Coast since the 1930s. The onshore impermeable cap to confine the oil within the This topic paper is primarily in relation to oil industry at Wytch Farm is Western reservoir, and a structure which ensures oil marine aggregates and offshore Europe’s largest onshore field, discovered in accumulates – normally a fold or a fault in the hydrocarbons. For land/coastal based 1974. There are also smaller fields being rocks. information please refer to the Dorset County exploited in Wareham and . Council's minerals topic paper (2009): Mineral Demand Dorset’s onshore oil industry combines Introduction commercial success with high standards of The Dorset aggregate demand arises from the environmental management. construction and maintenance of buildings, On the coast Portland is the main area for roads and sea-defence. The majority of quarrying blockstone and crushed aggregates. Offshore Dorset’s geological history has aggregates have come from land although 40% of Portland has planning permission for created an area with proven oil and gas some are from marine sources. quarrying and in 2012 6 quarries operated on reserves. Commercial oil deposits result from Portland. Purbeck stone is an established an unusual combination of geological factors, Key aggregate demand in Dorset is for: industry used for building, paving, roofing, comprising: monumental and ornamental work. The stone  a source rock for oil – usually shale -  Development of infrastructure within the is quarried within 10 square kilometres of where time and heat lead to oil - conurbation Swanage, Dorset. being formed from trapped plant  Defences built as protection in some areas and animal remains; on the coast from flooding and erosion Extracting aggregates from the sea need  an oil trap: comprising a reservoir of  Road construction e.g. the Weymouth facilities on the coast such as ports and porous rock to hold oil and allow it relief road opened in 2011 processing plants and needs ways of Beach replenishment schemes use marine transporting the material to the desired end dredged sand from channels to location. replenish three local beaches in 2006 to protect them from coastal erosion. e.g Bournemouth beach used 1505000t, Poole used 672000t and Swanage beach used

Dorset Marine and Coastal Topic Paper Series 2012 Minerals

143592t. This was done as part of a £5 million In 2007 marine dredged landings of sand and http://www.communities.gov.uk/documents/ coastal protection project. See: gravel in the south-west area , mainly dredged planningandbuilding/pdf/1392710.pdf) http://www.poolebay.net/projects.htm and from the Bristol Channel was 0.8%, an http://www.dorsetforyou.com/396732 increase of 20% from 2006. In the South In 2009 the licensed area in the South Coast Coast dredging area in 2009, 18 production region was 204.46km2, with 90.02 km2 of that Demand for gas in Dorset continues to grow licences permitted the extraction of available to be dredged. From this 3.49 million with Dorset’s population standing at 715 042 approximately 10.5 million tonnes of material tonnes of construction aggregate was in 2010, with 25.6% being over 65. The total per annum and over the same ten year period dredged, plus 0.28 million tonnes specifically number of dwellings in the Dorset area in the average annual utilisation of the dredged for beach nourishment schemes; 2.35 2010 is estimated at 192 625 and with colder permitted tonnage was 49%; in 2009 the million tonnes of this were landed at wharves winters predicted the need for oil and gas to utilisation level was 36%.. Two of these along the South Coast, and 1.14 million tonnes heat homes will increase especially in more licences lie to the east of the Marine were landed elsewhere in . The Port rural and isolated areas. More information at Management Area (MMA); Hanson of Poole has an active aggregates landing http://www.dorsetforyou.com/339524 Aggregates Marine Ltd and Tarmac Marine wharf, and some 0.09 mt were landed there Dredging Ltd hold licenses and currently in 2010. In contrast to the South East and Production dredge the South West Isle of Wight block, South West regions, the area of seabed Aggregates: whilst Hanson Aggregates Marine Ltd and licensed in the South Coast region has In 2007 in the South West the production of CEMEX UK Marine Ltd are licensed to and remained very stable. crushed rock aggregates was 26 million tonnes currently dredge the Needles Isle of Wight (mt), an increase of 5% on 2006. Sand and block. Hydrocarbons: Dorset has a long association gravel produced was 4.1mt in 2007, a with oil and gas exploration and production, decrease of 11% on 2006. In 2010, Dorset In 2007 0.1mt of sand and gravel was from with initial searches in the 1930s and the first produced 1.41 mt of sand and gravel, 0.26 mt licensed dredging areas off the South coast commercial discovery at Kimmeridge in 1959. crushed rock. Reserves of crushed rock for and landed at Poole (Ref: South West Regional The discovery of a significant oilfield at Wytch aggregate purposes are adequate to meet Aggregate Working Party, Annual Report Farm in 1973 has put Dorset in the forefront demand for the next 15-20 years, but new 2007. In 2010, 0.09 mt were landed at the of onshore oilfield development and sites may have t be considered sooner rather Port of Poole. Poole also imports a small intensified the search for oil throughout than later. Crushed rock is a by-product from quantity of crushed granite from Northern southern England. The discovery of further the quarrying of Portland stone. Ireland. commercial reserves, including those under , led to the Wytch Farm

Dorset Marine and Coastal Topic Paper Series 2012 Minerals

development becoming the most productive Production at Wytch Farm (which onshore field in Europe, Wytch Farm has a total of 95 wells, operating incorporates the three oilfields) is 10-20,000 reaching output levels of 110,000 barrels per from 10 sites on the . The barrels per day. day (bpd). This has since fallen to a current Wytch Farm oilfield, located around the level of around 10 - 20,000 bpd. Conventional southern shores of Poole Harbour, hosts the In part, oil is extracted using the extended oil and gas operations are the subject of a majority of these sites, which lie within the reach drilling techniques, reaching over 10km licensing system by the Department for Frome, Bridport and Sherwood oil bearing out and 1638m under Poole Bay. The total Energy and Climate Change (DECC). Such reservoirs. The smaller Wareham oilfield (west estimated recoverable reserves of these fields licences (Petroleum Exploration of Wareham) and Kimmeridge oilfield (at are 480 million barrels, of which over 90% lie and Development Licences), granted by the ) are supplementary in the Sherwood reservoir. Secretary of State for Trade and Industry, operations to the main oilfield production. Oil grant exclusivity to operators in the licence is processed at the Wytch Farm gathering Planning, Legislation and Licensing area. They do not however give consent for station. Crude oil is exported by pipeline drilling or any other operations. to a storage and loading facility at Hamble, Marine Aggregates: The licenced areas in the county mainly cover Southampton, whilst gas is exported by south and south east Dorset, including pipeline directly into a gas pipeline National: Purbeck. Much of the areas are sensitive transmission system at Sopley, north of The industry is regulated by the Marine environmentally, with habitats designated at Christchurch, for feeding into the main Management Organisation (MMO). Each the domestic gas network. Additionally, liquid dredger carries an electronic monitoring European level for their value, scattered is distributed direct to customers by system (EMS) to track and record its amongst them, notably the Dorset Heaths SAC road tanker. Extended reach directional wells movements every 30 seconds when it is and Dorset Heathlands SPA. In addition, the have been drilled offshore into the Sherwood actively dredging at sea. This ensures that Dorset AONB extends through three of the reservoir underlying Poole Bay, with the well vessels remain within their allocated licensed licenced areas, including where Wytch Farm is of the greatest distance extending 11km from area. located in Purbeck. Such designations may the onshore well site. This brings considerable present constraints on production and environmental benefits by enabling the The key national planning advice on minerals processing sites in the future and would need furthest parts of the reservoir to be drilled is set out in the National Planning Policy full consideration in line with the policies of from an onshore site. Taken from the Minerals Framework (NPPF). the Minerals Core Strategy and relevant Core Strategy chapter 12 legislation.

Dorset Marine and Coastal Topic Paper Series 2012 Minerals

Regional:  regulating individual developments that Department for Energy and Climate Change The South West Aggregate Working Party are proposed through deciding planning (DECC). Such licences (Petroleum Exploration (SWAWP) advises Mineral Planning Authorities applications (‘development and Development Licences), granted by the (MPAs) regarding annual production levels. management’); Secretary of State for Trade and Industry, MPAs are also required to work closely  policing of existing developments to grant exclusivity to operators in the licence together to ensure that adequate quantities of ensure that they are working within any area. They do not however give consent for mineral are produced to meet reasonable legal constraints outlined in the planning drilling or any other operations. economic needs. permission (‘monitoring and Natural England are advisers on conservation enforcement’). constraints. Standing Conference on Problems Associated MPAs are, since the Planning and Compulsory with the Coastline (SCOPAC) which looks at Environment Agency: regulate Discharge Purchase Act 2004, required to produce a the management of the shoreline from Lyme Consents to watercourses. ‘Minerals and Waste Development Bay to Shoreham-by-Sea are routinely Framework’ (MWDF), which shows how the consulted on licence applications. Department of Food, Environment and Rural MPA will plan for future provision of minerals Affairs (DEFRA) and the Joint Nature and disposal of waste in their area. The The Inshore Fisheries and Conservation Conservation Committee (JNCC) are consulted Bournemouth, Dorset and Poole Minerals and Authority (IFCA) and the Marine Management with regard to determine which projects Waste Development Framework, produced by Organisation (MMO) are routinely consulted (other than those where it is already Dorset County Council on behalf of on with regards to licence applications within compulsory under the Regulations) require Bournemouth and Poole, provides a more 6 miles. assessment. local policy context for minerals development.

County: Regional: Dorset County Council is responsible for Health and Safety Executive (HSE) is mineral planning, and is called a Mineral responsible for setting safety standards and inspection, and designating Control of Major Planning Authority (MPA). Bournemouth and Poole Councils are MPAs also. Their key Accident Hazard (COMAH) sites. Hydrocarbons: responsibilities include: Marine Pollution Control Unit (part of the Coastguard) approved emergency plans, and  formulating policies and plans to guide National: provide national backup for major incidents. future development (‘forward planning’); Conventional oil and gas operations are the subject of a licensing system by the

Dorset Marine and Coastal Topic Paper Series 2012 Minerals

Standing Conference on Oil and Gas set out Continental Shelf) is controlled by the UKCS in the English Channel, 20 of which lie at non-statutory policy view of local authorities Government. The issuing of licences carried least partly within the 12 mile limit. regarding exploration in the English Channel. out by Department of Energy and Climate Change (DECC) with different systems existing Licence blocks for land - are defined on 10km County: for the sea and for land (including some squares, relating to the national grid. Licences The Mineral Planning Authority is responsible defined estuarine and near shore waters – are referred to under different names due to for preparing a local plan to provide strategic termed ‘watery areas’). the different times at which they were issued. guidance for hydrocarbons development, and A Mining Licence (ML) is the oldest type of for determining applications for oil and gas For licensing purposes the UK Continental licence which is still in force. An ML covers the related development. Shelf (UKCS) is divided into 1° by 1° quadrants, area at Kimmeridge. Three areas, including each of which is divided into 30 blocks - with that which covers Wytch Farm, are covered by Block licensing process an average size of around 230 square Production Licences (PLs). Until 1996, kilometres. There are currently two types of different licences were issued for different Marine aggregates - The Crown Estate owns seaward licence: stages of development. In 1996, at the Eighth the mineral rights to the seabed extending to Licensing Round, Petroleum Exploration and the edge of the UK continental shelf (UKCS)  Exploration licences allow survey Development Licences (PEDLs) were and issues consents for non-exclusive work and shallow drilling in any part introduced to reduce the bureaucratic burden sampling and licences for commercial of the continental shelf not already of issuing a series of licences. PEDLs are aggregate extraction. To obtain a licence, under a production licence. These therefore the most recent type of licence. companies who have been successful in a are valid for three years, renewable tender round run by The Crown Estate must for one further term of three years The EU Environmental Impact Assessment obtain a Dredging Permission (DP) from the at the Secretary of State's discretion. (EIA) Directive has resulted that for certain government, a procedure which includes the  Production licences grant the holder types of project a developer must provide submission of an Environmental Impact exclusive rights to explore for and information to the relevant competent Assessment (EIA). If a favourable DP is produce petroleum in one or more authority - the body who must give consent granted, The Crown Estate will issue the particular blocks. for the development to take place - about any applicant with a production licence. likely environmental effects. This information is presented as an Environmental Statement Hydrocarbons - Oil and gas activity within the In 2012 32 licence blocks and part-blocks exist (ES). UK (its territorial seas and on the UK between the Dorset coast and the limit of the

Dorset Marine and Coastal Topic Paper Series 2012 Minerals

Current trends for minerals UK Ltd for $610m in May 2011,. The majority of planning permissions for the oilfield are Marine Dredged Aggregates time limited to 2016. The possibility exists of supplying some of Dorset’s future needs by material dredged NorWest Energy is an Australian company has from the sea-bed; however the evidence are a keen interest in the oil industry in Dorset. that there are few economic sources off the Norwest energy has been granted a PEDL Dorset coast. The availability of marine exploration licence for the 238 area. The PEDL aggregate off the Dorset is lees of an issue 238 exploration licence lies in the west of than the fact that Dorset only has one quite Dorset north of the operated Wytch small wharf. Dredges could bring material Farm. More information can be found at sourced some distance away, if the capacity to http://www.norwestenergy.com.au/index.php handle them existed. They could in theory be /projects/uk/ handled at Port of Poole itself or Portland Port, but indications are that these Ports do no wish to handle aggregates, a relatively low- value product. Contributors to the paper: Mineral team Dorset County Council Hydrocarbons In the last 20 years, 19 exploration wells have been drilled in a total of 9 blocks offshore the Dorset Coast. The focus for the most recent exploration is on areas to the south of Wytch Farm. Compared to the North Sea, offshore Dorset has been well explored - although the intensity varies from block to block and some areas have not been looked at in detail. There is a continued pattern of interest from the industry in oil exploration off the Dorset Coast. Wytch Farm was sold by BP to Perenco