APPUBLIC1079

1
Six Monthly Review of the Coal AuthoritysHigh
Level Objectives

• AP/PUBLIC/1079
• Philip Lawrence, Chief Executive
• 19 September 2007

2
Objective 1

• Manage the legacy environmental and safety issues
  arising from the UK coal mining industry which
  are within our responsibility, addressing
  liabilities efficiently and treating minewater
  pollution appropriately within the legal
  framework.
• Public Safety
• Issues relating to the Public Safety project were
  discussed with the Board at the Awayday in May.
  Actions from the Awayday are significantly
  complete and have included
• A review of mine entries information on MRSDS
  and the development of a future strategy for
  inspections.
• A review of Authority records which may contain
  information relating to public safety.
• Discussions with developers and planners with
  respect to public safety issues and coal mining
  legacy. The Authority held a one day seminar
  for members of the British Drilling Association
  on 26 July and a further drilling seminar for
  Dudley Council officials will take place in
  October.
• Consultation with the HSE, BERR and Department
  for Communities and Local Government.
• The current position of the project will be
  discussed by the Executive in September and
  proposals will be made at the Board meeting.
• The Authority in partnership with Merthyr Tydfil
  County Borough Council, agreed that the land at
  Heolgerrig is a danger to the public and has
  therefore been fenced. Discussions on next steps
  continue.

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Objective 1 (continued)

• Manage the legacy environmental and safety issues
  arising from the UK coal mining industry which
  are within our responsibility, addressing
  liabilities efficiently and treating minewater
  pollution appropriately within the legal
  framework.
• Minewater
• Construction of the Dawdon minewater treatment
  scheme is progressing and Contract 2 negotiations
  nearing completion.
• Defra reviewed and amended the initial
  methodology for the non-coal minewater project.
  It has been successfully piloted in the Dee
  Catchment Area on the North Wales/England border.
  The results could lead to changes in approach
  prior to it being rolled out nationally. The
  project is due to be completed at the end of
  March 2009.
• It is anticipated that all the work associated
  with the planning, design and land purchase for
  the four schemes programmed to be constructed in
  2008-2009 will have been completed by the end of
  September 2007.
• A web based collaboration forum is now being used
  by the minewater team enabling direct
  communication with external contractors with the
  sharing of key documents reducing risks and
  improving efficiency.
• The project management system for minewater
  treatment schemes has been installed and staff
  are undergoing training prior to the system going
  live.

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Objective 2

• Expand the provision of coal mining reports and
  records and public sector information to meet the
  needs of the market and to use our resources and
  expertise to distribute electronically a range of
  other information.
• The Authority has produced 249,000 mining reports
  against a budget of 258,000 as at the end of
  August. 89 of these have been electronically
  ordered and delivered. (84.5 lt1 day (target
  90), 98 lt5 days (target 98)
• A pilot XML portal has been developed to enable
  customers to automate the submission of mining
  reports directly from their own systems. If the
  pilot is successful the portal will be enhanced
  to offer additional services to customers and is
  the first step towards licensing data for
  commercial use.
• The Ground Stability Report (GSR) continues to be
  promoted at conferences, exhibitions, in
  professional journals and also directly with
  customers. It currently accounts for 6 of the
  market of which 46 are for properties off the
  coalfield.
• Mining and natural subsidence has been given
  authorised status for inclusion in HiPs which
  are being rolled out. Three bedroom properties
  that come on the market will require HiPs as
  from 10 September 2007. Discussions are
  continuing with CLG about our mining data and
  impact on the market
• Discussions continue with BGS on a number of
  issues including closure of a number of projects
  that BGS have undertaken for the Authority. We
  are exploring with BGS the extension of the GSR
  to include other non-coal mining information but
  are researching thoroughly markets and customers
  before concluding to invest further.
• Following the continued success of the
  interpretive reports service, the system has been
  upgraded to increase resilience and reduce the
  manual effort required to produce reports.
• Work has begun on defining the next generation of
  the Mining Reports and Surface Damage System and
  the replacement of the MRSDS and Variant A
  contracts which together provide support and
  maintenance of all the Authoritys ICT services.

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Objective 2 (continued)

• Expand the provision of coal mining reports and
  records and public sector information to meet the
  needs of the market and to use our resources and
  expertise to distribute electronically a range of
  other information.
• Replacement mining reports insurance cover will
  be negotiated with effect from 1 October 2007.
  CON29M search cover will be increased to 50,000
  in light of increased property prices and to
  future-proof the cover for the contract period to
  2011.

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Objective 3

• Manage the Authoritys land and mineral estate
  and the associated liabilities and
  responsibilities.
• Work is ongoing in progressing a number of
  disposals to meet the 2007-2008 capital receipts
  target of 370,000. Strategic sites have also
  been identified which may benefit from a change
  in planning policy in future years.
• 421,000 has also been secured in clawback
  against the target for the year of 2.2 million.
  There are a number of transactions in the
  pipeline including a potential premium in respect
  of mineral royalties at Albion Void which is the
  subject of a separate Board paper.
• Income from rentals is on target to generate
  80,000 for the first half of 2007-2008. The
  income is made up from property rentals,
  structural precaution consents and fees generated
  by in-house surveyors.
• Estates have acquired land for the four minewater
  treatment schemes scheduled to be built during
  2008-2009. Land negotiations are also well
  advanced on a number of schemes identified in the
  Authoritys minewater five year plan. A further
  member of the Estates team has been recruited to
  bring the team back to full strength.
• Work is ongoing to dispose of liability sites
  including exit strategies for a number of long
  term leasehold interests. This area of work is
  significant and may potentially involve
  litigation. A significant amount of work has
  been carried out in respect of the former
  Creswell Colliery and Clipstone Colliery sites.
  The Clipstone buildings are due to be demolished
  in September.
• There is an arbitration dispute pending in
  respect of land adjacent to the Leeds City East
  West ring road owned by Yorkshire Water. The
  land was subject to a working rights agreement
  and the dispute is in respect of works required
  to return the land back to Yorkshire Water.
  There is significant valuation work required to
  dispute Yorkshire Waters claim.
• Work is ongoing with agreeing a reduction in the
  rateable value for the Authoritys Mansfield
  office, which when agreed will be backdated to
  2005.
• The Authority continues with its tips inspection
  regime for tips in its ownership.

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Objective 4

• To seek out and exploit commercial opportunities,
  in accordance with the Governments Wider Markets
  Initiative, which are within the Authoritys
  vires and ambit.
• Discussions continue with AI, the ICO and DBERR
  on accessing the Authoritys address base data.
  Issues associated with vires and data protection
  are being investigated in detail with the ICO
  (Information Commissioners Office).
• Large scale camera work for third parties has
  generated income of 10,000 to date. Contracts
  have been negotiated with Coal Industry Social
  Welfare Organisation (CISWO) and the Forest of
  Dean to scan property holding data and mine plans
  which will generate 35,000. Discussions are
  ongoing with the West Riding of Yorkshire County
  Archives about scanning their tithe maps and they
  are seeking the necessary finance for this work
  to be undertaken. Work for Devon/Cornwall County
  Archives has been agreed in the sum of 10,000.
• Tentative discussions have commenced with the
  Ordnance Survey about a large scale scanning
  project being undertaken by the Authority.
• Data licensing documentation has been updated
  with DLA Piper to include much stronger IPR and
  other protections for the Authority.
• A new contracts database has been developed to
  enable Authority contracts to be tracked and
  performance monitored and reported on.

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Objective 5

• Interact with industry and Government to promote
  the use of the UKs coal reserves as part of a
  diverse and secure energy portfolio.
• The Government published its Energy White Paper
  entitled Meeting the Energy Challenge in May
  2007. The Paper made a value statement that
  making the best use of UK energy resources,
  including coal reserves, where it is economically
  viable and environmentally acceptable to do so
  contributes to our securing of supply goals.
• BERR published the Overview of the work of the
  UK Coal Forum for the period November 2006 to
  June 2007 on its website (www.berr.gov.uk) on 3
  September. The Forum will continue to meet three
  times a year with the next meeting scheduled for
  October 2007. The future of the Forum will be
  reviewed annually. It is expected that the next
  Chair will be announced later in September. The
  Authority continues to be represented on the
  Forum by the Chief Executive.
• One result arising from the Forum was the revival
  of the biannual meetings between Coalpro and the
  Minerals and Waste Committee of the Planning
  Officers Society (England and Wales). The
  Authority will participate and representatives
  from the Planning Officers Society in Scotland
  and Government will be invited. The Board is to
  receive proposals for greater interaction with
  Local Authorities.
• UK Coal Plc won its legal case and is proceeding
  with developing surface mines at Lodge House in
  Derbyshire and Long Moor, Leicestershire. Miller
  Argent have also commenced work at the Ffos y
  Fran Land Reclamation Scheme in South Wales. The
  Authority has given evidence in connection with
  the Muir Dean appeal.
• The Court of Appeal granted AML leave to appeal
  the decision of Mrs. Justice Dobbs on 25 July in
  respect of granting Corus an exploration licence
  for Margam. The hearing is scheduled to take
  place between 4 and 6 February 2008.

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Objective 5 (continued)

• Interact with industry and Government to promote
  the use of the UKs coal reserves as part of a
  diverse and secure energy portfolio.
• Powerfuel Plc continue to make good progress in
  reopening Hatfield Colliery which is now
  producing development coal.
• Energybuild Mining Ltd, the operator of
  Aberpergwm Mine, floated on the AIM on 6 August
  and raised approximately 10.6 million to develop
  the Mine and adjoining underground anthracite
  reserves. It has also identified further
  possible opencast sites within the Aberpergwm
  surface lease.
• Unity Mine in South Wales produced its first
  development coal on 1 August 2007.

10
Risks, Strategy, Recommendation

• Risks
• The high level objectives capture the Authoritys
  duties and functions in a task based format. Non
  compliance would indicate that we are at risk of
  failing to meet those duties/functions and in
  providing services to our customers and
  stakeholders. In practice this could have direct
  detrimental impacts on the land conveyance
  market, the quality of our natural environment,
  the safety of individuals and their property, and
  leave the Authority ill prepared to meet the
  demands of the coal industry it regulates.
• Non compliance could be as a consequence of an
  insufficient allocation of grant-in-aid from DTI.
• A risk management database has been procured from
  the Nuclear Decommissioning Agency enabling both
  organisations to demonstrate the sharing of
  public services in order to obtain best value for
  money. It will systemise the management of the
  Authoritys risk register.
• Strategy
• The monitoring and reporting of the
  organisations performance against its high level
  objectives highlights to the Board the
  effectiveness of the implementation of the
  Authoritys strategy and policies.
• Attached as Appendix 1 to this paper are the
  cumulative key performance indicators as at the
  end of July 2007, together with the incident
  statistics at Appendix 2.
• Recommendation
• The Board is asked to note the above comments.