When an installer is making a decision between
oil or LPG for a rural non-mains-gas installation, issues
regarding environmental pollution and tank insurance
should be seriously considered. Rachel Hodge, market
development manager of Calor, the UK’s leading
LPG supplier, explains.
Oil spillage is a serious environmental concern. There
are over 5,000 oil spillage incidents each year, and
these are not just confined to commercial premises. According
to Property Matters, 10 per cent of all sites branded
contaminated by local authorities are due to a domestic
oil spillage.
The ‘polluter pays’ concept is an established
standard used in environmental regulation, and where
oil leaks are concerned this can become a serious and
expensive issue for domestic and commercial property
owners, and indeed installers.
When an oil spillage does occur, if the council declares
the ground contaminated under the Environmental Protection
Act, the person responsible for the pollution could pay
up to £20,000 in fines, along with any associated
clear up costs.
Worryingly, domestic oil tank insurance is a grey area.
Some of the UK’s largest insurance companies do
not provide cover for damage caused by a domestic oil
storage tank spillage – a fact further substantiated
by some independent insurance policy research Calor recently
commissioned. Out of 89 companies contacted, 32 would
not provide cover for a domestic oil tank leak. Many
others were either vague in their response, couldn’t
provide genuine advice or referred us to an insurance
broker.
A recent oil spillage in the village of Otterton, Devon,
has highlighted how serious the consequences can be.
Here the Environment Agency discovered that 94 out of
116 oil tanks were of high to medium risk. With Otterton’s
Otter Valley being responsible for providing drinking
water to over 200,000 East Devon residents, the Environment
Agency has now requested that the tanks are replaced
or improved – at the property owners’ expense.
The cost is thought to be at least £700 for each
oil tank.
Installers can also become liable for oil spillages
if they have not followed legislation regarding bunding,
risk assessments or registration.
Environmental pollution legislation has been in place
for some years. The Control of Pollution (Oil Storage)
Regulations, introduced in 2001, specified that oil storage
tanks with a capacity of 3,500 litres or more must be
bunded. The legislation comes into full effect from September
1 2005. An area of serious concern is a perception that
oil tanks below 3,500 litres escape any form of legislative
requirements.
It is true to say that such oil storage tanks may be
exempt from the new Control of Pollution (Oil Storage)
Regulations, but they are included in Part J (England
and Wales) and Part F (Scotland) of the Building Regulations
which requires compliance with BS 5410:Part 1 (and 2
Scotland), where it is specified that all new tanks and
those undergoing major refurbishment over 2,500 litres
must be bunded.
Those under 2,500 litres must either be risk assessed
by an OFTEC registered installer trained in this type
of work or checked by a Building Control Officer or someone
who holds a Building Control Licence. Tanks found to
be at risk, such as those within 50 metres of a spring
or borehole or 10 metres from controlled waters must
also be bunded. From September 1 2005, all existing oil
tanks will have to comply.
Secondary containment is compulsory
to minimise spillage; tanks and bowsers, for example,
must have a bund with a capacity of 110 per cent and
must be impermeable to oil and water, with no drain
valves, and holes where any pipes pass through the wall
must be carefully sealed.
Failure to comply with environmental regulations is
a criminal, not a civil, offence – and the penalties
are severe. This reflects the seriousness with which
potential damage to the environment from oil spillage
is viewed.
Where commercial premises are concerned, companies
and individual directors can face significant fines
and clean up costs or even a custodial sentence.
Businesses are liable for oil leaks however they
are caused – whether
due to poor design, installation, maintenance or
vandalism.
LPG presents a strong case against oil where insurance
and environmental issues are concerned. In comparison,
there is no risk of a pollution leak with Calor LPG,
and installation and insurance is Calor’s responsibility.
Once LPG has been chosen as the preferred fuel, a Calor
representative visits the customer, evaluates the proposed
site and recommends a suitable location for the tank.
A Calor approved contractor delivers and installs the
tank, connects the gas pipeline to the property and fills
the tank with Calor LPG.
Since the storage tank remains the property and responsibility
of Calor, the homeowner does not have to worry about
tank insurance. In addition, every time LPG is delivered
each Calor tank is checked and maintained by qualified
engineers.
Oil spillages are a serious environmental concern, and
oil tank insurance is clearly a grey area. It only takes
one oil installation to go wrong for environmental damage
to occur, leaving the ground and possibly water supplies
polluted, and the customer, and perhaps the installer,
with a bill for thousands of pounds.
Issued on behalf
of Calor by The Bright Consultancy,
1 Henley Court, High Street, Henley-in-Arden, West
Midlands B95 5BA. For further information please contact
Ruth Barrows/ Ian Bates at Bright on Tel: +44 (0) 1564
795535 Fax: +44 (0) 1564 795560 or Email: ruth@bright-consultancy.co.uk.  Click
here to download this press release in Word format
Ref: CALG0035AV
Released: January 2005
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