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According to Calor, the UK’s market leading LPG supplier, when an installer is faced with making a decision between oil and LPG for rural non-mains-gas installation, the cost of environmental pollution and issues surrounding tank insurance should be seriously considered.
Where environmental issues and tank insurance are concerned, LPG presents a strong case against oil. Oil spillages are a serious environmental concern; there are over 5,000 each year, at both commercial and domestic 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, as well as installers.
When an oil spillage occurs, the council can declare the ground contaminated under the Environmental Protection Act. In this situation, the person responsible for the pollution could pay up to £20,000 in fines, along with any associated clear up costs. This is a serious issue that homeowners should be made aware of, especially as they cannot rely on tank insurance to cover the cost of a fine.
Calor has found that domestic oil tank insurance is a grey area. Rachel Hodge, Calor’s market development manager, said: “Some of the UK’s largest insurance companies do not provide cover for the damage caused by spillages from domestic oil storage tanks – 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 incident in the village of Otterton, Devon, highlights how serious the consequences of an oil spillage 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 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.
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.
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.
Rachel Hodge commented: “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.”
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.
The storage tank remains the property and responsibility of Calor, therefore the homeowner does not have to worry about tank insurance. In addition, every time LPG is delivered the Calor tank is checked and maintained by qualified engineers.
With the benefits of LPG now being more widely understood, Calor LPG is becoming an ideal choice for many people living in non-mains-gas areas – telephone Calor on 0800 121 4461 or visit www.calor.co.uk for further information.
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/Cara Hastings/Annette Massam at Bright on Tel: +44 (0) 1564 795535 Fax: +44 (0) 1564 795560 or Email: ruth@bright-consultancy.co.uk
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Ref: CALG0056
Released: June 2005
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