EUROPEAN COMMISSION DIRECTORATE-GENERAL ENVIRONMENT STUDY ON THE VALUATION AND RESTORATION OF DAMAGE TO NATURAL RESOURCES FOR THE PURPOSE OF ENVIRONMENTAL LIABILITY B4-3040/2000/265781/MAR/B3 FINAL REPORT BY MACALISTER ELLIOTT AND PARTNERS LTD AND THE ECONOMICS FOR THE ENVIRONMENT CONSULTANCY LTD MAY 2001 MacAlister Elliott and Partners Ltd 56 High Street Lymington Hampshire SO41 9AH United Kingdom Tel: +44 1590 679016 Fax: +44 1590 671573 E-mail: [email protected] Website: http://www.macalister-elliott.com 1488-REG/R/03/B B4-3040/2000/265781/MAR/B3 1488-REG/R/03/B TABLE OF CONTENTS EXECUTIVE SUMMARY PART A: EVALUATION METHODOLOGIES 1 STUDY BACKGROUND AND OBJECTIVES....................................................... 1 1.1 BACKGROUND ................................................................................................................ 1 1.2 AIMS AND OBJECTIVES................................................................................................... 2 1.3 SCOPE............................................................................................................................. 2 2 OVERVIEW AND APPROACH TO THE ISSUES................................................ 3 2.1 MONETARY COMPENSATION BASED ON THE VALUE OF DAMAGE.................................. 3 2.2 RESOURCE COMPENSATION............................................................................................ 4 2.3 STRUCTURE OF THE REPORT........................................................................................... 4 3 NATURAL RESOURCE DAMAGE ASSESSMENT AND RESTORATION..... 7 3.1 PRE-INCIDENT RESOURCE STATUS ................................................................................. 7 3.2 DETERMINING THE SCALE AND ‘SIGNIFICANCE’ OF DAMAGE ...................................... 10 3.2.1 Scale of Damage.................................................................................................. 10 3.2.2 Significance of Damage ...................................................................................... 11 3.2.3 Establishing Conservation Objectives ................................................................ 13 3.3 APPLYING NATURAL RESOURCE DAMAGE ASSESSMENT IN PRACTICE......................... 20 4 PRIMARY RESTORATION OPTIONS................................................................ 23 4.1 SETTING PRIMARY RESTORATION TARGETS................................................................. 24 4.2 IDENTIFICATION AND CATEGORISATION OF TECHNICAL OPTIONS FOR PRIMARY RESTORATION............................................................................................................... 28 4.3 CATEGORISATION AND SELECTION OF RESTORATION OPTIONS.................................... 29 4.3.1 Categorisation of Restoration Options ............................................................... 30 4.3.2 Selection of Restoration Options......................................................................... 33 4.4 ESTIMATION OF INTERIM LOSSES ................................................................................. 36 4.5 ROLE OF COST-BENEFIT ANALYSIS .............................................................................. 36 5 COMPENSATORY RESTORATION OPTIONS................................................. 38 5.1 IDENTIFY THE OBJECTIVES OF COMPENSATORY MEASURES......................................... 38 5.2 RESOURCE COMPENSATION.......................................................................................... 41 5.2.1 Identifying Compensatory Restoration Projects ................................................. 41 5.2.2 Classifying and Selecting Compensatory Restoration Projects.......................... 42 5.2.3 Scaling Restoration Options ............................................................................... 43 5.2.4 Implications for Monetary Value of Liability...................................................... 47 5.3 MONETARY COMPENSATION ........................................................................................ 47 6 CONCLUSIONS AND RECOMMENDATIONS.................................................. 48 Final Report MEP and EFTEC B4-3040/2000/265781/MAR/B3 1488-REG/R/03/B PART B: THE CASE STUDIES 7 AZNALCÓLLAR MINE TOXIC SPILLAGE....................................................... 53 7.1 SITE DESCRIPTION........................................................................................................ 53 7.2 SITE SERVICES.............................................................................................................. 54 7.3 INCIDENT DESCRIPTION................................................................................................ 55 7.4 SCALE OF DAMAGE ...................................................................................................... 55 7.5 CASE STUDY ASSESSMENT OF DAMAGE TO THE DOÑANA NATIONAL PARK AND CORRIDOR ECOLOGICA DE RIO GUADIAMAR NATURA 2000 SITES............................... 56 7.5.1 Scope of Damage Assessment ............................................................................. 56 7.5.2 Establishing Conservation Objectives ................................................................ 56 7.5.3 Conclusion of Significance Assessment............................................................... 62 7.6 ACTUAL RESTORATION OF DOÑANA NATIONAL PARK AND ESTABLISHMENT OF THE GREEN CORRIDOR ........................................................................................................ 62 7.7 COMPARISON OF ACTUAL AND POSSIBLE RESTORATION ACTIVITIES........................... 63 7.8 OUTCOME OF SETTLEMENT .......................................................................................... 65 8 SEA EMPRESS OIL SPILL .................................................................................... 66 8.1 SITE DESCRIPTION........................................................................................................ 66 8.2 SITE SERVICES.............................................................................................................. 67 8.3 INCIDENT DESCRIPTION................................................................................................ 68 8.4 SCALE OF DAMAGE ...................................................................................................... 68 8.5 IMPACT ASSESSMENT ................................................................................................... 69 8.6 CONCLUSION OF DAMAGE ASSESSMENT ...................................................................... 71 8.7 ACTUAL RESTORATION OF PEMBROKESHIRE MARINE AND CARMARTHEN BAY AND ESTUARIES NATURA 200 SITES .................................................................................... 72 8.8 COMPARISON OF ACTUAL AND POSSIBLE RESTORATION ACTIVITIES........................... 72 8.9 OUTCOME OF SETTLEMENT .......................................................................................... 74 9 EXXON VALDEZ OIL SPILL................................................................................ 76 9.1 SITE DESCRIPTION........................................................................................................ 76 9.2 SITE SERVICES.............................................................................................................. 76 9.3 INCIDENT DESCRIPTION................................................................................................ 76 9.4 SCALE OF DAMAGE ...................................................................................................... 77 9.5 CLEAN-UP ACTIVITIES.................................................................................................. 77 9.6 IMPACT ASSESSMENT FOR NATURAL RESOURCES........................................................ 77 9.7 RECOVERY OBJECTIVES FOR HUMAN SERVICES........................................................... 78 9.8 OUTCOME OF SETTLEMENT .......................................................................................... 78 9.9 RISK AND UNCERTAINTY – IMPLICATIONS FOR LIABILITY ........................................... 79 9.10 COMPARISON OF EXXON VALDEZ AND SEA EMPRESS OIL SPILLS................................ 79 Final Report MEP and EFTEC B4-3040/2000/265781/MAR/B3 1488-REG/R/03/B FIGURES, TABLES AND BOXES Figures FIGURE 2-1: DAMAGE ASSESSMENT AND CHOOSING THE RESTORATION OPTIONS..................................................5 FIGURE 3-1: WETLAND ECOSYSTEM SERVICES AND SOURCES OF VALUE .............................................................10 FIGURE 4-1: PRIMARY RESTORATION PROCESS PATHWAYS ..................................................................................23 FIGURE 5-1: CHOOSING COMPENSATORY RESTORATION OPTIONS ........................................................................39 FIGURE 5-2: DAMAGE, INTERIM LOSSES AND RESTORATION OPTIONS..................................................................40 FIGURE 5-3: PRIMARY AND COMPENSATORY RESTORATION SCALING COMPONENTS OF PANTHER CREEK...........46 FIGURE 7-1: LOCATION OF DOÑANA NATIONAL PARK ..........................................................................................53 FIGURE 8-1: PROTECTED AREAS OF SOUTH-WEST WALES......................................................................................66 Tables TABLE 3-1: IMPACTS ON LAGOONS OF MINERAL EXTRACTION AGAINST CSAC CONSERVATION OBJECTIVES .....16 TABLE 3-2: MATRIX FOR ASSESSING SIGNIFICANCE OF IMPACTS ON NATURA 2000 SITES AGAINST CONSERVATION OBJECTIVES .............................................................................................................17