The Planning Act 2008 (as amended) The Preesall (Underground Gas Storage Facility) Order Panel’s Report of Findings and Conclusions and Recommendation to the Secretary of State Panel’s findings and conclusions and recommendation in respect of an application for a Development Consent Order for an underground gas storage facility including associated development that comprises a brine pipeline and gas interconnector pipeline in Preesall, Lancashire Date: 21 January 2013 This page intentionally left blank Preesall Underground Gas Storage Facility File Ref EN030001 Preesall Underground Gas Storage Facility x The application, dated 30 November 2011, was made under s37 of the Planning Act 2008 (as amended) x The Applicant is Halite Energy Group Limited x The application was accepted for examination on 23 December 2011 x The examination of the application began on 24 April 2012 and was completed on 24 October 2012 x The development proposed is the creation of underground gas storage (UGS) caverns by solution mining of the Preesall Halite deposit in Lancashire to provide a working capacity of up to 600 million cubic metres at standard temperature and pressure (Mcm) together with associated development including wellhead compound areas, a gas compressor compound (GCC), a booster pump station, a seawater pump station, a brine outfall pipeline, a gas pipeline connecting to the national gas grid, pipelines and other elements. Summary of Recommendation: the Panel recommends that the Order be made, subject to modifications. Preesall Underground Gas Storage Facility Contents 1 Introduction 2 2 Procedural Decisions 6 3 The Application 9 4 Policy Context 13 5 Findings and Conclusions: Geology 22 6 Findings and Conclusions: Other Matters 68 7 The Panel’s Conclusion on the Case for Development 98 8 Compulsory Acquisition Matters 105 9 The Proposed Order and the s106 Agreement 126 10 Overall Conclusions and Recommendation 137 APPENDIX A – Obligations 139 APPENDIX B – The Examination 141 APPENDIX C – Library of Examination Documents 144 APPENDIX D – The Development Consent Order 159 APPENDIX E – Abbreviations 239 Panel’s Report to the Secretary of State 1 Preesall Underground Gas Storage Facility 1 INTRODUCTION 1.1 On 19 March 2012 a Panel of three Commissioners was appointed by the then chair of the Infrastructure Planning Commission (IPC) to handle the application dated 30 November 2011 for development consent for an underground gas storage (UGS) facility at Preesall, Lancashire. The Panel comprised: Paul Hudson – lead member of the Panel Libby Gawith – member of the Panel Emrys Parry – member of the Panel. 1.2 At the Panel’s request, as provided for under s100 of the Planning Act 2008 (PA 2008) and Rule 11 of the Examination Procedure Rules 20101, the chair of the IPC appointed Dr Ramues Gallois to act as an assessor to assist the Panel about geology and geotechnical matters in the examination of the application. 1.3 The IPC was abolished on 30 March 2012 and its functions transferred to the Planning Inspectorate. The members of the Panel are now termed Examining Inspectors and collectively constitute the Examining authority (ExA) for this application. 1.4 This report sets out in accordance with s74 of the PA 2008 the Panel’s findings and conclusions in respect of the application, and reasons for our recommendation to the Secretary of State to make an Order subject to modifications, granting development consent for the proposal under s114 of the PA 2008. 1.5 The proposed development for which consent is required under s31 of the PA 2008 comprises an UGS facility with a working capacity of up to 600 Mcm at standard temperature and pressure. It is far above the threshold of at least 43 Mcm specified in s17 of the PA 2008 and is within England. The proposed development comprises a nationally significant infrastructure project (NSIP) as defined by s14 and s17 of the PA 2008, and associated development as defined in s115 of PA the 2008. 1.6 The draft Order seeks powers of compulsory acquisition of land and rights and includes a deemed marine licence as provided for in s149A of the PA 2008. 1.7 The application is EIA development as defined by the Regulations2. It was accompanied by an environmental statement (ES) which in our view meets the definition given in Regulation 2(1). Supplementary environmental information was supplied during the course of the examination. In reaching our recommendation, we have taken all the environmental information into consideration in accordance with Regulation 3(2). 1 The Infrastructure Planning (Examination Procedure) Rules 2010 2 The Infrastructure Planning (Environmental Impact Assessment) Regulations 2009 Panel’s Report to the Secretary of State 2 Preesall Underground Gas Storage Facility 1.8 A preliminary meeting was held on 24 April 2012 at which the Applicant and all interested parties (IPs) were able to make representations to the Panel about how the application should be examined. Our assessor attended that meeting. The ExA’s procedural decision was issued on 2 May 2012 (PD3), and the examination proceeded in line with this. 1.9 In addition to the consent required under the PA 2008, the proposal is subject to various environmental permits from the Environment Agency (EA) under the Environmental Permitting regime3, and licences from Natural England (NE) in connection with European protected species.4 At the time the examination closed on 25 October 2012, none of the required licences had been issued, but letters of comfort dated 18 October 2012 from NE were sent to the Applicant in respect of great crested newts and bats such that no outstanding issues remain which would prevent the licences from NE being granted (REP281, Appendices 18 and 19). 1.10 A brine discharge consent under the Water Resources Act 1991 was granted by the EA in 2007 in connection with a previous planning application for UGS at Preesall (see Chapter 4 below). The EA reissued this consent in 2011 to take effect from the beginning of 2014 in connection with the Order if made (APP18, Appendix 2.1). A Water Abstraction Licence for up to 80,000m3 of water per day from the Fleetwood Fish Dock was granted by the EA in June 2012 (REP198, Appendix 3). 1.11 The certificates required from the Secretary of State in relation to compulsory acquisition of land and rights are dealt with in Chapter 8 below. 1.12 A separate parallel application was submitted for a deemed hazardous substances consent (HSC), and this has been progressed in order to enable the Secretary of State to make a direction under s12 of the Planning (Hazardous Substances) Act 1990 as amended by Schedule 2, paragraphs 42 to 47 of the PA 2008. 1.13 Subsequent to the Order being made, a range of other consents would be required. Approvals to satisfy the Control of Major Accident Hazards Regulations (COMAH) 1999 would be needed from the Competent Authority which is the Environment Agency (EA) and Health and Safety Executive (HSE) acting jointly. UNDERTAKINGS 1.14 During the course of the examination, a s106 agreement under the Town and Country Planning Act 1990 (TCPA) was concluded between the Applicant, Preesall Energy Services Ltd, Wyre Borough 3 Environmental Permitting (England and Wales) Regulations 2010. 4 Conservation of Habitats and Species Regulations 2010 Panel’s Report to the Secretary of State 3 Preesall Underground Gas Storage Facility Council (WBC) and others. This has been executed and dated 18 October 2012 (REP281, Appendix 24). It provides particularly for the Applicant’s obligations to WBC concerning the discharge of requirements, decommissioning of the site and monitoring of the existing brinewells, together with maintaining the established community liaison panel and the routeing of HGV traffic during construction. 1.15 An agreement dated 18 October 2012 in favour of the EA was also entered into by the Applicant (REP281, Appendix 26). It commits the Applicant to meeting the costs of restoring the existing flood protection to the current standard if the proposed works create an increased flood risk. 1.16 An option agreement dated 22 October 2012 was entered into between the Applicant and Blackpool Borough Council concerning an easement to enable a brine discharge pipeline to be constructed beneath the Blackpool to Fleetwood Tramway (REP308). 1.17 An undertaking dated 22 October 2012 in favour of Knott End Golf Club was issued by the Applicant limiting the exercise of compulsory acquisition rights and powers over the surface of the Golf Club's land for purposes related to subsidence monitoring equipment only (REP281, Appendix 7). This was not agreed by the Golf Club (REP281, Appendix 8). 1.18 The content of these undertakings is set out in more detail in Appendix A, and we took these into account in our findings and conclusions, and recommendation. STRUCTURE OF THE REPORT 1.19 Chapter 2 summarises the main procedural steps taken during the examination. Chapter 3 sets out the main features of the proposed development. Chapter 4 summarises the policy context applicable to it. In Chapters 5, 6 and 7, the Panel’s findings and our conclusions in respect of each of the main considerations and on the development merits are set out. Chapter 8 deals with compulsory acquisition matters. Chapter 9 considers the proposed Order, the changes which were made to it during the course of the examination, and further modifications we feel are necessary to make the proposed development acceptable. In the light of that, Chapter 10 sets out our overall recommendation that the Order should be made. 1.20 Appendix A summarises the contents of the obligations referred to in paragraphs 1.14 to 1.17 above. The main ‘events’ occurring during the examination and the main procedural decisions taken by the ExA are listed in Appendix B.