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‘ORA-CLE’ Eighth Edition February 28, 2020 Page 1 of 29 ‘ORA’ the Original Recycling Association for a Cleaner Living Environment PFO’ – the PRICE for OIL aka the OIL PRICE aka THE PRICE is RIGHT? DAILY Crude Oil prices shown in $ per barrel from 1987 to February 2020. 0 20 40 60 80 100 120 140 160 1 9 8 7 1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 5 2 0 1 0 2 0 1 5 2 0 2 0 WTI Price Brent Price

‘PFO ’ – the PRICE for OIL aka the OIL PRICE aka THE PRICE is … · 2020-04-18 · years. Water falling as rain, hail or snow may freeze on reaching land and form ice. The

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‘ORA-CLE’ Eighth Edition February 28, 2020

Page 1 of 29

‘ORA’ the Original Recycling Association for a Cleaner Living Environment

‘PFO’ – the PRICE for OIL aka the OIL PRICE

aka THE PRICE is RIGHT?

DAILY Crude Oil prices shown in $ per barrel from 1987 to February 2020.

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Page 2 of 29

Would it be misleading to tell a story about the workings of the UK waste oil market

since the late 1970s? Such a story may not be fake news but would it be old news? To

avoid this story ending abruptly in February ‘2020’, perhaps it would make more sense

to look at this ending sometime in the recent past, by describing the waste oil market

that may have existed up to 2015? Whenever this look back into history ends, the story

would not be complete without providing an insight into how things may change in the

new imagined order, i.e. the climate change political world.

Crude Oil Price History

West Texas Intermediate (WTI) signifies light sweet low sulphur crude that is favoured

for producing petrol, which is perfect for the US market. Original Brent crude was not as

sweet as WTI and more suited for producing diesel for the European market. Today’s

Brent crude blend of 15 different North Sea crudes is still not as sweet as WTI but now

also good for producing petrol.

1973 was not the first time that OAPEC had tried to use oil for political leverage but it

was the first time that it succeeded in creating a real oil price crisis. The first attempt

being in 1963 (Suez Crisis) and the second attempt in 1967 (Egyptian / Israeli War).

The second oil crisis came in 1979 in the wake of the Iranian Revolution and although

global supplies only dropped by 4%, there was major global panic (UK motorists queued

for hours for petrol rations as they had in 1973) and within 12 months the crude oil price

doubled to $39.50 a barrel. The Iran / Iraq War followed and the oil price remained

unstable until the mid-1980s.

Then the Japanese led the way with multi valve engines and fuel injectors replacing the

thirstier carburettors, which resulted in the late 1980s oil glut and a subsequent 20 year

decline in the oil price which dropped below $10 a barrel in 1998.

WTI prices have been reported since

January 1986; Brent prices have

been reported since May 1987.

During the 1970s there were two oil

crises. The first crisis started in

October 1973 when the Organisation

of Arab Petroleum Exporting

Countries “OAPEC” (not to be

confused with OPEC) proclaimed an

oil embargo on all nations seen to be

supporting Israel during the Yom

Kippur War. The embargo lasted for 6

months and the crude oil price

increased by 400%, from $3 a barrel

to $12 a barrel.

Page 3 of 29

Waste Oil Values

On a Net Present Value basis, waste oil prices were at their highest during the period

from 1979 to the mid-1980s and then again during 2012-13. In theory, waste oil prices

should have hit an all-time high in 2008 when crude oil prices peaked at $144 per barrel,

but this period came off the back of the 2007 OSS v Environment Agency court case,

when apart from OSS, other PFO producers were still getting their ducks in a row. The

strong £ (peaking over $2) also mitigated some of the oil price increase.

When considering the impact that historical crude oil prices and oil commodity prices

have had on the UK waste oil price, it is important to consider that other key variable –

the £ to $ exchange rate.

When the DAILY Exchange Rate data is overlaid with the DAILY Brent crude price data a

different picture emerges:

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Page 4 of 29

In $ terms, the 2008 crude oil price went higher than 2012-14, but in £ terms, the 2012-

14 crude oil price was higher than in 2008, when it hit record levels.

In addition to the £:$ exchange rate, it is also necessary to consider the elasticity of

crude oil to the price of various oil commodities:

During the collapse in the crude oil price to below $10 a barrel in 1998, bulk waste oil

prices were still £45 to £65 per tonne and apart from periodic fluctuations during 2005-

07, this position remained fairly stable until the 2008 crude oil price spike. However,

average 2008 waste oil prices remained relatively low compared to 2013 when waste oil

prices peaked at £280 per tonne, i.e. nearly 60% of the crude oil price.

Page 5 of 29

A TYPICAL LIFE CYCLE ANALYSIS?

Those who believe in the recycling of waste will often cite a Life Cycle Analysis that is

supportive of the recycling of a particular waste, versus the use of that waste as a fuel.

Likewise, those who believe in the recovery of waste for use as a fuel will make

reference to some other Life Cycle Analysis that favours that approach.

The word ‘Recycling’ has always been part of ORA’s name but that does not mean that

all of ORA’s Full Members recycle waste. In fact, during the last 22 years, the number of

members that do recycle waste has waxed and waned. Proximity to the waste arising is

an obvious consideration and the answer varies in each case. Life Cycle Analyses always

make assumptions about the proximity of waste to a particular waste recovery / waste

recycling process and this proximity principle is also enshrined in EU law.

Therefore, in addition to the Waste Hierarchy being an imagined order, the Circular

Economy is also an imagined order and just like religion, politics and climate change, an

individual’s beliefs and desires about those imagined orders will depend on their own

particular circumstances.

The recycling process that is known as the hydrological or water life cycle is probably the

simplest life cycle analysis of all, but it is certainly not simple. In very simple terms it is

the journey that water takes as it moves from the land to the sky and back again.

However, just describing this as a sequential process of evaporation, condensation and

precipitation misses out the complexity of the various options that prevail after the water

falling as rain, hail or snow has returned to the land.

During the next 15 years, through to 2035, in

the purported run up to ‘peak oil’, it remains

to be seen whether the market will continue

to hedge for crude oil / waste oil price

elasticity or decide that the situation is

inelastic. At some stage between now and

2050, large amounts of waste oil will continue

to be produced for 10 to 15 years after the

drop in demand for oil products. This must

mean that, at some stage; waste oil

collectors, processors and recyclers will price

waste oil as a hazardous waste rather than an

oil commodity. This may mean the price will

become inelastic or the elasticity will be

virtually non-existent, i.e. not increasing with

crude prices but decreasing in line with crude

prices. Even a squirrel prepares for winter,

but blind squirrels only find a nut now and

again. If common sense prevails, the future

market will not be a mirror image of the past?

Page 6 of 29

There are many different routes for water to take on land before the water evaporates

and returns to the land:

As rainfall, producing surface run-off, it may immediately collect in lakes or rivers

before returning to the sea or it may infiltrate the land accumulating as

groundwater and recharging aquifers before eventually reaching the sea. Aquifers

may store water for a very long time.

Potable water drawn from aquifers and drinking water from reservoirs may

become contaminated through use, passing through industrial processes, human

beings and animals before discharge as trade effluent or sewage to water

treatment works that discharge to rivers or direct to the sea.

Water consumed by plants may transpire to the atmosphere or be consumed as

food by humans or animals.

Freshwater reaching lakes and rivers may evaporate before it reaches the sea.

Freshwater flowing into the sea from rivers will mix with the seawater before it

evaporates. At first, the less dense freshwater will float on top of the denser

saltwater before eventually mixing with the seawater and creating convection

currents. In some cases, e.g. glacial melt, this mixing process can take ‘000s of

years.

Water falling as rain, hail or snow may freeze on reaching land and form ice. The

ice may not return to water for ‘000s if not a million years.

Some ice may sublime straight to water vapour and return to Earth’s atmosphere

without flowing into a river, i.e. sublimation cuts out the middleman.

ALL PART OF THE CYCLE OF LIFE

When water evaporates, it takes up

energy from its surroundings and cools

the environment. When it condenses in

cloud formations it releases energy and

warms the environment. The

evaporation purifies the water which

then replenishes the land with fresh

water. The flow of water and ice

transports minerals across the globe,

reshaping Earth through a process of

erosion and sedimentation. The water

cycle is essential for all life and

ecosystems.

Page 7 of 29

As water vapour is less dense than the nitrogen and oxygen in Earth’s atmosphere, the

natural buoyancy drives the humid moisture laden air higher in the atmosphere. As

altitude increases, air pressure decreases and the temperature falls. The lower

temperature causes the water vapour to form tiny water droplets that are visible as

clouds. As the droplets increase in size they return to Earth unless they are recycled

back to the higher atmosphere by rising warmer air.

Groundwater can spend over 10,000 years beneath Earth’s surface before finding its way

to the surface and eventually evaporating. After water evaporates it typically spends 9

days in the atmosphere before returning to land.

On average, water forming as ice in Antarctica will remain as ice for 20,000 years but

some of the ice is 800,000 years old. In contrast a glacier will only last between 20 and

100 years but when a river or glacial melt reaches the ocean; it will remain there for

more than 3,000 years before it evaporates.

Approx. 97% of the world’s water supply is stored in the oceans and the oceans supply

90% of the evaporated water that goes into the water cycle. If the water takes longer to

return to the oceans or the water returns more quickly than normal, the ocean levels rise

or fall. During the last ice age, when glaciers covered more than one third of Earth’s land

mass, the oceans were more than 120 metres lower than they are today. Just imagine

that amount of water stored on the land as ice. No wonder the Earth’s crust rises and

falls as the ice balance changes. Equally, during the last major global warm spell more

than 120,000 years ago, the oceans were 6 metres higher than they are today and three

million years ago they were up to 50 metres higher than today.

When ocean levels fall, the salinity of the oceans increases and when ocean levels rise

the salinity decreases. The changes in ocean temperatures and salinity change the

ecosystems. Without the water cycle supporting life and ecosystems and without the

evaporation of water cooling the planet, Earth’s surface temperature would be above

67oC and there would be no life.

Life cycle analyses for some waste streams are probably more complicated than the life

cycle analysis for water but the waste life cycle analyses are rarely / probably never

given the time and attention they require in order to make sense of them, to be factually

accurate and to be of any real value. Whether that means they are more or less

interesting than water is another question, but it is doubtful that life will depend on

them.

Page 8 of 29

THE TIDE IS HIGH (follow up to ‘Head Above Water’1)

The February 2020 Storm Ciara and Storm Dennis downpours raised the same issues

that were covered in the last soothsayer edition of ORA-CLE – ‘Head Above Water’.

With so much reliance on computer models rather than common sense, flood defences

erected in one town may save that community but by raising a column of water by a

metre or more only serves to increase the water levels further downstream. New river

level data fed into the computer then delivers the conclusion that more flood defences

are required further downstream……and on the story goes!

Furthermore, too many temporary flood defences only result in someone making a

judgment call about whether one town or one part of a town should be a sacrificial lamb

to protect another. There are many examples of this – Tunbridge Wells, Xmas Eve 2013

and more recently in Bewdley, Worcestershire during the beginning of Storm Dennis.

Why is it that major ports like Southampton; at the confluence of the rivers Test, Itchen

and Hamble, are able to carry out regular maintenance dredging to make sure that

approach channels and berths always have a safe depth of water for access for 64,000

annual commercial and recreational vessel movements, BUT the Environment Agency is

unable to dredge smaller inland rivers, just like their predecessors did before 1996?

The Agency cites the Water Framework Directive’s protection of sites with a high nature

conservation interest, as being their excuse, BUT the same directive also applies to port

authorities like ABP in Southampton. This does not add up!

The article in the The Telegraph quotes former Environment Secretary (2012-14) Owen

Paterson who accused the Environment Agency of using climate change as a "cop out".

He said "It has always rained in the UK in winter. The trick is to get it [the rivers] to go

down again. You have to manage the countryside and you have to manage the rivers. It

is a complete cop out to blame it all on climate change."

1 ORA-CLE 7TH Edition – December 2019

As reported in The

Telegraph after the storms

on the 17th February –

‘Don’t expect to be

protected from flooding,

Environment Agency to

warn’, is this a sign the

Agency is going to concede

that tinkering with flood

defences does not work?

Page 9 of 29

Innes Thomson, the chief executive of the Association of Drainage Authorities, claimed

the flood risk in some areas would be "massively reduced" if silt was removed from

swollen rivers.

"The Environment Agency has been hiding behind EU rules supposed to protect wildlife,"

he said. "But the technology exists to safely remove silt, and the EA knows it. It's

happening in some places, but not nearly enough."

As detailed in ‘Head Above Water’, it is simply not the case that the UK is experiencing

unprecedented levels of rainfall. If river levels are at unprecedented levels in flood

conditions, is that simply due to tinkering with flood defences? If a property owner’s

garden flooded because a neighbour diverted surface water into their garden, they would

be quick to point out that the problem is their neighbour’s fault but when the

Environment Agency diverts water no one thinks to ask why?

Governments don’t think twice about excavating 2 metres below ground level to widen a

motorway to create an un’SMART’ motorway or digging down 5 or 10 metres to build a

new road or create a railway cutting through a hillside for HS2. If excavations up to 10

metres deep are okay along 150 miles of new track for HS2, why is it not okay to dredge

and remove 1 to 2 metres of silt from a problematic 5, 10, 20………..mile stretch of a

river?

Dropping a river level by 1 or 2 metres in dry conditions surely provides an extra 1 to 2

metres of river capacity during heavy rainfall conditions, so that a river that normally

floods to a 5 metre height only rises to 3 metres, thereby making temporary flood

defences redundant.

Owen Paterson accused the EA

of having a mentality that

dredging was "a bad idea".

"What these people have

unwittingly done with their

idiotic views, they have

delivered an environmental

catastrophe of the first

order," he said.

Page 10 of 29

The following Annual Rainfall graph now shows this in more detail:

However, annual rainfall figures for the 42-year period since the end of 1977 do not

paint the complete picture. For example:

June 2007 was Sheffield’s wettest month but 2012 was the wettest year

October 2000 was Cardiff’s wettest month and 2000 was the wettest year

December 2006 was Glasgow’s wettest month but 2015 was the wettest year

For the first 20 years after the Intergovernmental Panel on Climate Change (IPCC) was

formed, the IPCC used to argue that global warming would cause droughts. During the

last 10 years the argument has switched from global warming to climate change, which

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1978 1985 1990 1995 2000 2005 2010 2015 2019

Annual Rainfall (mm) from 1978 to 2019

Cardiff

Sheffield

Glasgow

In ‘Head Above Water’, a

summary of the historic

rainfall DATA for Cardiff was

compared with the DATA for

Glasgow and Sheffield.

Page 11 of 29

causes heavier downpours not droughts. At first glance, the Annual Rainfall graph

appears to show the UK having its wettest years in the last 20 years, thereby implying

that everything is getting out of control. However, as rainfall memories fade with age,

this requires further scrutiny.

Analysing Statistical Data

All annual rainfall data can be analysed using statistical techniques. Provided there are at

least 25 data sets, the results can be used to determine whether the entire data set is

part of the same normal distribution curve or circumstances have changed part way

through. When data moves out of control, i.e. outside of the normal distribution curve,

this may be proof that something has changed.

This can either be done using the annual rainfall data or by using all the January data

over 42 years or all the February data etc. If the charts show that all the data is within +

or – 3 standard deviations then the second test is to check that there are no trends of 7

consecutive data points or more, above or below the average line. If this test is met, the

third test is used to check that there are not 7 data points as upward or downward

trends that cross over the average line.

If 99.7% of the

measured data is within

+ or – 3 standard

deviations of the mean

value, it is possible to

determine whether the

data is representative

and what the likely

minimum and maximum

values will be over time.

In order to do this using

25 or more datasets, it

is necessary to show the

data using statistical

charts.

Page 12 of 29

The Historical Situation in Sheffield

For the 42-year period from September 1977 to January 2020 there are 509 monthly

data sets. The monthly rainfall data is shown below:

The statistical control chart shows:

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SHEFFIELD

Monthly Rainfall mm

Average Monthly Rainfall

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Average Annual Rainfall mm

Mean + 3 std devns

Mean - 3 std devns

Over the 42-year period, the top 5 wettest

months were (only 2 in the last 20 years):

1. June 2007 – 286mm (30% of 2007)

2. June 1982 – 225mm (27% of 1982)

3. Dec 1978 – 208mm (25% of 1978)

4. Nov 2019 – 200mm (19% of 2019)

5. Oct 1998 – 198mm (21% of 1998)

42-year monthly average – 70mm 42-year monthly max – 286mm

42-year annual average – 837mm 42-year annual max – 1146mm

Results

None of the data is outside of

the +/- 3 standard deviations

and there are no trends of 7 plot

points or more either above or

below the mean and there are

no upward or downward trends

of 7 points or more. Although

June 2007 was the wettest

month, 2007 was not

exceptionally wet. This chart

suggests that annual rainfall

could reach 1,229mm, which is

7% higher than the 1,146mm

recorded in 2012. None of the

last 42 years would appear to

have been unusual. There is

also some evidence that 3 of the

last 20 years have been

exceptionally drier than the

previous 20 years.

Page 13 of 29

The Historical Situation in Cardiff

For the 42-year period from September 1977 to January 2020 there are 509 monthly

data sets. The monthly rainfall data is shown below:

The statistical control chart shows:

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Average Monthly Rainfall

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Over the 42-year period, the top 5

wettest months were (3 in the last 20

years):

1. Oct 2000 – 268mm (18% of 2000)

2. Aug 1997 – 251mm (20% of 1997)

3. Dec 1993 – 250mm (22% of 1993)

4. Oct 2019 – 236mm (17% of 2019)

5. Jan 2014 – 235mm (17% of 2014)

42-year monthly average – 97mm 42-year monthly max – 268mm 42-year annual average – 1165mm 42-year annual max – 1504mm

Results

None of the data is outside of the +/-

3 standard deviations and there are

no trends of 7 plot points or more

either above or below the mean and

there are no upward or downward

trends of 7 points or more. October

2000 was the wettest month and that

year was exceptionally wet but still

within 3 standard deviations. This

chart suggests that annual rainfall

could reach 1,643mm, which is 10%

higher than the 1,504mm recorded in

2000. None of the last 42 years would

appear to have been unusual. There is

some evidence that 3 of the last 20

years have been exceptionally drier

than the previous 20 years.

Page 14 of 29

The Historical Situation in Glasgow

For the 42-year period from September 1977 to January 2020 there are 509 monthly

data sets. The monthly rainfall data is shown below:

The statistical control chart shows:

The above chart suggests that annual rainfall could reach 1,773mm, which is 10% higher

than the 1,603mm recorded in 2015. None of the last 42 years would appear to have

been unusual. There is some evidence that 3 of the last 20 years have been

exceptionally drier than the previous 20 years.

So, Everything Must be Alright Then? There is Nothing to Worry About?

The most important thing is that statistical data should only ever be interpreted using

statistical control charts. It is a mistake to look at a chart and make a casual observation

that values appear to be ‘low’ or ‘high’. As the normal distribution curve shows, 68% of

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Glasgow

Monthly Rainfall mm Average Monthly Rainfall

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1978 1985 1990 1995 2000 2005 2010 2015 2019

Annual Rainfall mm Average Annual Rainfall mm

Mean + 3 std devns Mean - 3 std devns

Over the 42-year period, the top 5

wettest months were (2 in the last 20

years):

1. Dec 2006 – 299mm (21% of 2006)

2. Dec 1999 – 297mm (20% of 1999)

3. Sep 1985 – 288mm (22% of 1985)

4. Oct 1995 – 280mm (23% of 1995)

5. Nov 2015 – 278mm (17% of 2015)

42-year monthly average – 104mm

42-year monthly max – 299mm 42-year annual average – 1249mm 42-year annual max – 1603mm

Results

None of the data is outside of

the +/- standard deviations and

there are no trends of 7 plot

points or more either above or

below the mean and there are

no upward or downward trends

of 7 points or more. December

2006 was the wettest month but

2006 was not exceptionally wet.

Page 15 of 29

data will lie within 1 standard deviation from the mean and 95% is within 2 standard

deviations. The 3 standard deviation lines can be used to predict the worst-case

positions for 99.7% of occasions.

This valuable information should be used to prepare for the worst-case drought years

and the worst-case wet years? It is simply no use trying to measure the worst-case wet

weather conditions by reporting that a river’s level is at a record high. When the river

has not been dredged for nearly 25 years and flood defences have been put in place

upstream of the previous record level then of course river level records will be broken.

The situation in Cardiff & Glasgow has been ‘business as usual’ for the last 42 years but

Sheffield’s rainfall has become more variable? If it has, it is still much drier than Cardiff

& Glasgow. Why is that? Does that mean that Sheffield’s rainfall has increased or that

wind patterns have changed?

The Met Office’s records for Sheffield go back to 1883, so it is possible to extend the

date range to see if there are any different conclusions. The following statistical shows

the situation for the last 62 years:

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Sheffield 1958 to 2019

Annual Rainfall mm Average Annual Rainfall

Mean + 3 std devns Mean - 3 std devns

What would the great engineers such as Isambard

Kingdom Brunel and Joseph Bramah make of the

makeshift approach to temporary flood defences,

that start to move whenever the river levels reach

the top of the barrier and risk a mini tsunami if

they collapse?

Why are memories and experience lost in the

annals of time, why is there no ‘heavy lifting

anymore’?

Would Brunel have been a better engineer if he’d

had a computer?

Page 16 of 29

This demonstrates the point made earlier, that a casual observer looking at the data

from 1978 to 1990 may incorrectly conclude that the data was less variable than the

period after 1990. However, including the period from 1958 to 1977 now changes that

perspective.

This chart does show that there was a trend of 7 points below the mean from 1970 to

1976 but during the 12 years prior to that, from 1958 onwards, the wet weather years

were no different to the period from 1995 to 2007. The rainfall data for the period from

1970 to 1976 is not statistically ‘normal’ for the 62-year period shown in the chart.

Something caused that 7-year trend to prevail (known as a ‘special cause of variation’)

and that 7-year dry period ended with a severe drought, i.e. the famous summer of 76.

During the early 1990’s Her Majesty’s Inspectorate of Pollution and other parties, used to

issue reports about the long trail of acid gas emissions from UK coal-fired power stations

that extended across the North Sea and into continental Europe & Scandinavia causing

damage to woodlands and forests. It was also claimed that this blanket of acid gases had

a localised cooling effect on the UK’s climate, which caused drier weather. The Large

Combustion Plant Directive has forced many high SOx emitting power stations and large

industrial combustion processes to close or install flue gas abatement systems to reduce

the acid gas emissions. Therefore, in that regard, the UK’s atmosphere is now much

cleaner than it used to be. However, no party with any authority refers to the fact that

lower acid gas emissions means less cooling and warmer wetter weather. It is much

easier to blame the problem on a 150 parts per million increase in the concentration of

carbon dioxide in the atmosphere.

It will always be the case that in any locality (variances across one town or city can be

huge) heavy rainfall over several days, weeks or months can be the real problem, i.e.

the cumulative effect. When the rolling cumulative 3-month charts are plotted for the

42-year period shown above, the wettest cumulative 3 month periods stand out as

follows:

Sheffield – May to July 2007: 482mm or 51% of the annual rainfall

Cardiff – Oct to Dec 2000 and Nov 2015 to Jan 2016: 636mm or 42% to 53% of the

annual rainfall

Glasgow – Nov 2006 to Jan 2007: 785mm or 65% of the annual rainfall!

Most of this peak rainfall eventually escapes to the sea, and within any 12-month cycle,

during a 3-month dry period, the Environment Agency inevitably declares a drought and

water companies think about hose pipe bans.

If he was alive today, what would Isambard Kingdom Brunel2 do about this? Would he

blame climate change? Or would he conclude that if the peak loadings have been higher

2 Isambard Kingdom Brunel FRS was a British civil engineer who is considered "one of the most ingenious and

prolific figures in engineering history", "one of the 19th-century engineering giants", and "one of the greatest figures of the Industrial Revolution”, [who] changed the face of the English landscape with his ground breaking designs and ingenious constructions. He built under rivers and through hills, creating the longest tunnels, the biggest bridges and the speediest ships the world had ever seen. He astonished Britain by proposing to extend the Great Western Railway westward to North America by building steam-powered, iron-hulled ships.

Page 17 of 29

during the last 20 years then something should be done about it? Without a computer he

would probably seize control of his slide rule, a book of logarithmic tables, a sheet of

paper and a pencil.

If he had a computer, he would probably search the internet for where the largest 50

reservoirs are located and he would see that the total storage capacity is 1.7 billion

cubic metres of water but these reservoirs were built during the 100 year period from

1888 onwards and the last one was built in 1989. He would no doubt consult with

Thomas Hawksley (the engineer who designed the first reservoir at Lake Vyrnwy, Wales

to supply water to Liverpool) and he would surely conclude that the UK needs more

reservoirs and bigger reservoirs, strategically located so as to intercept rills, channels,

tributaries and streams.

A large river may be referred to as a 10th order stream, i.e. the first order stream is met

with a second stream to become a second order stream that meets another stream to

become a third order stream etc. When flooding occurs, higher order streams take

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longer to build up to flood stage than lower order streams and longer for the flood to

subside.

The River Severn is the longest river in Great Britain – 220 miles long, with a catchment

area of 4,400 square miles and with a typical flowrate of 60m3 per second and 600m3 a

second in flood conditions (measured at Bewdley, Worcestershire).

Therefore, intercepting the lower order streams on higher ground prevents the higher

order streams from reaching flood conditions. Such reservoir projects could even be

used to support hydro-electricity schemes that produce renewable electricity,

even when the wind does not blow!

Geologists have spent decades studying why streams flood. An increase in the rainfall

loading is not the real issue, it is the increase in urbanisation. Changes to the land in the

drainage area of a stream, such as the addition of buildings and roads, can change how

a stream floods. Buildings and pavements that cover the ground prevent infiltration and

cause increased surface water run-off. Increased stream runoff means smaller amounts

of rain will cause the stream to reach flood stage than before alterations to the land took

place. The stream will flood more frequently. For the same amount and rate of rainfall

that caused flooding prior to building, the stream will reach flood stage quicker and the

flood will be deeper. After urbanisation, the stream reaches its peak flood level quicker

and rises to a higher level than before urbanisation. Unless countermeasures are

engineered and installed, an urbanised area will flood more frequently and severely than

the same area that existed before.

The Victorians were well aware of this and knew that as the human population increased,

urbanisation increased, and more reservoirs were required to provide water for industrial

and residential use. By building reservoirs to solve a water supply problem this also

eliminated major flooding.

The Environment Agency is also well aware that reservoirs are the

answer to the problem

In November 2016, the Environment Agency published a 188-page report titled

“Delivering Benefits Through Evidence – Design, operation and adaptation of reservoirs

for flood storage”.

The Intro states – “This report is the result of research commissioned by the

Environment Agency’s Evidence Directorate and funded by the joint Flood and Coastal

Erosion Risk Management Research and Development Programme”.

The report’s Concluding Remarks state – “The use of storage reservoirs to provide flood

protection is now well established in the UK [i.e. up to 1989], with many hundreds of

such structures in operation. As the need for flood protection increases in light of climate

change, population growth and industrial development, it is clear that many more flood

storage reservoirs will be required in the future”.

Well, what are we waiting for then? Another 3 years have passed by!

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It is no coincidence that no new large reservoirs have been built since 1989 when the 10

Regional Water Authorities were privatised for £7.6 billion. Just like HS2, building new

reservoirs are a major infrastructure project. It is a nonsense to suggest that people

should become accustomed to their riverside properties flooding much more often in the

future and that the Environment Agency cannot protect everyone. Spending small

amounts of money on ‘soft engineered solutions’, i.e. flood defences (£4 billion) is not

the answer. Hard engineered solutions are the answer, whatever the cost? If

Government is unwilling to commit to this, homes and businesses should not be allowed

permission to build on flood plains?

Perhaps Brunel would want to name a series of projects like this – ‘HS2’ or something

like that! Or perhaps he would just take the literal meaning of his name - Iron Bright or

Iron Axe. The very thing that should be used on some of the ‘soft’ flood defences and the

Agency’s computer flood modelling system when new reservoirs have been built.

Page 20 of 29

NEW ENVIRONMENT BILL3

Structure

The Bill is split into eight Parts, with Part 1 containing three separate chapters. Part 1

concerns Environmental Guidance, Part 2 Environmental Governance in Northern Ireland,

Part 3 Waste and Resource Efficiency, Part 4 Air Quality and Environmental Recall, Part 5

Water, Part 6 Nature and Biodiversity, Part 7 Conservation Covenants and, last but not

least, Part 8, the ever exciting, Miscellaneous and General Provisions.

It looks like a fairly comprehensive piece of legislation, although it has only been through

its first reading in the House of Commons, so its contents might change.

The Government certainly thinks its comprehensive. When it was published, environment

secretary Theresa Villiers said that it formed part of the ‘pitch to be a world leader on

the environment as we leave the EU’, with it setting ‘a gold standard for

improving air quality, protecting nature, increasing recycling and cutting down

on plastic waste’.

Environmental targets

The Bill requires the Secretary of State to introduce long term targets for priority areas

of air quality, water, biodiversity, resource efficiency and waste reduction. These targets

are set for 15 years in the future and the Secretary of State is under an express duty to

endure that the targets are met.

There is to be a review of these targets by 31 January 2023 and subsequent five yearly

reviews. The purpose of the review is to consider whether the targets would significantly

improve the natural environment in England. The purpose of the review is not to see

whether or not the targets are on course to be met, nor does the Bill specify any

corrective action if it is evident that targets are or are likely to be missed.

Progress is to be reported annually in a report to be laid before Parliament. However, it

is important to remember that, for example, the Natural Capital Committee has been

scathing in its criticism of recent ‘Progress Reports’ against the 25 Year Environment

Plan. The net effect? Put simply, the Bill doesn’t yet require meaningful progress reports.

Does that mean that the “targets” are arguably misleading? Is their effect to essentially

delay the urgency and necessity of environmental improvements to a date 15 years in

the future? If there is no continuing public system of review to see whether we are ‘on

target’, there is always the risk that the Bill simply kicks the can down the road. But

surely that cannot be the intention?

There is a power to either revoke or lower targets. This can be done if the Secretary of

State is satisfied that ‘meeting the existing target would have no significant benefit

compared with not meeting it or with meeting a lower target’ or ‘because of changes in

circumstances since the existing target was set or last amended the environmental,

social, economic or other costs of meeting it would be disproportionate to the benefits.’

3 Analysis courtesy of 6 Pump Court Chambers

Page 21 of 29

This raises the potential prospect that the Government will exercise a discretion to

license heavily polluting projects on the basis they make economic sense. For example,

can Heathrow be justified on the basis of its economic benefit, despite the potential

environmental cost? Lowering the target requires a change in circumstances, but there

doesn’t appear to be any materiality threshold that must be reached, only that the

Secretary of State must consider that the ‘cost’ of meeting the target is disproportionate

to the benefits. That ‘cost’ could include a lost opportunity cost or a loss of predicted

economic benefits resulting from a major infrastructure project.

One welcome addition from a previous draft is the introduction of a two-yearly review of

“significant developments in international legislation on the environment” that will then

be “factored into the Environmental Improvement Plan and environment target setting

process.” Whilst this doesn’t guarantee alignment (expressly ruled out by the current

Government in the context of the UK-EU relationship) it does keep our place on the

world stage closely under review.

Environmental principles

The Secretary of State must prepare a policy statement on environmental principles,

explaining how the principles should be interpreted and proportionately applied by

Ministers of the Crown when making policy.

The environmental principles have been reduced to just 5. These are:

(a) the principle that environmental protection should be integrated into the making of

policies,

(b) the principle of preventative action to avert environmental damage,

(c) the precautionary principle, so far as relating to the environment,

(d) the principle that environmental damage should as a priority be rectified at source,

and

(e) the polluter pays principle.

A Minister of the Crown is now required to “have due regard” to the policy statement on

environmental principles currently in effect. This is a slight change in wording from the

previous draft, that only required Ministers to “have regard to” the environmental

principles.

This raises the question as to what “due regard” actually means. It’s arguably a step up,

potentially introducing a more objective element into the legal test to be applied. Due

regard implies a degree of weight behind the decision-making process that was

completely absent before. However, it is a long way from the establishment of an

overarching environmental objective which a number of commentators actively

campaigned for.

This legal framework is also a considerable distance from current EU law, which

enshrines environmental principles in a constitutional treaty as a legal requirement, with

a direct impact on all areas of EU policy that link with environmental protection.

Page 22 of 29

Article 11 of the Treaty on the Functioning of the European Union reads:

“Environmental protection requirements must be integrated into the definition and

implementation of the Union’s policies and activities, in particular with a view to

promoting sustainable development.”

Article 191 of the TFEU begins with:

“1. Union policy on the environment shall contribute to pursuit of the following

objectives:

- preserving, protecting and improving the quality of the environment,

– protecting human health,

– prudent and rational utilisation of natural resources,

– promoting measures at international level to deal with regional or worldwide

environmental problems, and in particular combating climate change.”

Part of the difference is that EU law has at its heart that overarching objective to

improve the quality of the environment. The current draft of the Environment Bill sets

out a method of influencing policy, but only where it is not considered disproportionate

and apparently yielding little by way of result if the Minister of the Crown decides, after

“due” consideration, that the proposed policy should not be restricted by an

environmental concern.

The Office for Environmental Protection (OEP)

The Environment Bill creates the OEP, whose principle objective will be to contribute to

environmental protection and the improvement of the natural environment.

The OEP will have to prepare a strategy that sets out how it intends to exercise its

functions and how it intends to avoid any overlap between itself and the Committee on

Climate Change (CCC). The relationship between the OEP and the CCC is likely to be

particularly important, not least because the CCC appears to be concerned that the OEP

will have the effect of forcing it to dilute its environmental message.

The same strategy must also set out the OEP’s enforcement policy, in particular that sets

out how it will determine whether failures to comply with environmental law are serious.

And it appears to be envisaged that the OEP will uphold environmental standards

predominantly through direct engagement and formal notices. Don’t expect the OEP to

take many cases to Court.

The Government has committed to having the OEP up and running by 1 January 2021

but there is a huge amount of work to do. One key area is on the implementation of

environmental law. The European Commission has historically looked not only at the

extent to which law was transposed but also how it operated in practice. In theory,

developing closer relationships with local authorities may yield quicker environmental

results. However, the emphasis on local authorities may also pose a problem. Taking air

quality as an example, if the principal obligations on tackling air quality are to fall on

local authorities and their already stretched budgets, is the existence of the OEP likely to

spur them to action?

Page 23 of 29

And the Bill doesn’t address those concerns that have been raised about the

independence of the OEP and its funding. So much of this is going to depend on how the

OEP develops in practice.

The excluded matters

Matters that remain excluded from the scope of the Bill are disclosure of or access to

information, the armed forces or national security and taxation, spending or the

allocation of resources within government.

This has already been the subject of much criticism. In addition, there is no non-

regression clause. However, Ministers must make a statement that, in their view, new

Bills will not have the effect of reducing the level of environmental protection provided

for by any existing environmental law or a statement that the Minister is not able to take

that view.

Some specific highlights

There are powers to impose producer responsibility obligations under Schedule 4;

Financial penalties will be able to be imposed for the emission of smoke in smoke-

controlled areas in England, up to £300;

The Environmental Protection Act 1990 is amended to allow for regulations to be

introduced that will establish an electronic waste tracking system.

The Verdict

The Bill is a step in the right direction in terms of providing a much-needed update on

the legislative framework for the environment in the UK. However, there are real

concerns about the efficacy of the Office for Environmental Protection; but we’ll have to

wait and see how that develops. It’s also worth mentioning that the Bill of course

contains the usual statement that the Minister, in this case Theresa Villiers [now

changed to George Eustice], is satisfied that the provisions of the Bill are compatible

with the European Convention on Human Rights – after the success of Urgenda in the

Netherlands, this raises the prospect of similar human rights challenges against the

finalised Act.

Critically, because net zero is now enshrined in law, policy and practice going forwards

have to promote environmental objectives, otherwise in just a few years’ time the UK

will have to implement a wall of legislation, bringing with it serious potential economic

costs. It may be easy to point out certain arguable flaws in the drafting of the Bill but

ultimately there can be only one direction of travel.

BIO-DIVERSITY NET GAIN

The new Environment Bill will mandate a measurable 10% Biodiversity Net Gain for most

new developments in England. Once mandated, biodiversity net gain will move to a more

quantitative, measurable and transparent based assessment using the DEFRA

biodiversity metric tool to quantify biodiversity losses and gains in terms of ‘biodiversity

Page 24 of 29

units’. The DEFRA biodiversity metric tool can be used to calculate the ecological baseline

value of a site pre-development and the predicted ecological value of a site post-

development using detailed design proposals. It is essentially an evolving process that

involves regular communication between project managers, designers, landscape

architects etc.

Although biodiversity net gain is not yet mandatory, many local planning authorities are

already adopting it. Achieving a 10% biodiversity net gain can be difficult and may

involve finding off-site areas in which it is possible to undertake woodland re-planting to

compensate for the loss of biodiversity within the development site. This would involve

producing a report documenting the ecological baseline of the site, and the number of

units generated by the site post-development. The report would state whether the

development achieves the 10% biodiversity net gain, and if not, suggest habitat

creation/enhancement measures both on-site and off-site that could be undertaken to

achieve the 10% biodiversity net gain.

CAN NEW TECHNOLOGIES SOLVE THE PLASTIC

WASTE PROBLEM?

Dow is forming global partnerships to break the cycle of plastic pollution by re-thinking

how plastics are designed, manufactured and recycled. Dow believes that if plastic waste

can be made to be a valuable raw material for producing new plastics, the pollution

problem will be solved. Easier said than done?

Dow claims this thinking is already resulting in a new generation of technologies being

implemented worldwide. A new bio-based solution is being implemented with remarkable

results. One of Dow’s partners is UPM Biofuels in Finland. UPM claims to produce paper

from sustainable forests and Dow has found a way of extracting a bio-based oil as a

residue from the paper pulp production, that can be used as a feedstock to produce

plastic that is suitable for 100% recyclable milk cartons and other types of food

packaging.

Dow have also partnered with Dutch company Fuenix Ecogy to produce an oil from

plastic waste that can be used to produce high quality plastics for use in sensitive

applications such as meat and cheese packaging. They claim that 70% of the waste

plastic ends up as new plastic.

Dow has also launched trademarked AGILITY CE shrink film that can be produced from

waste plastics including used shrink film. Previously, used shrink film could not be

recycled.

The plastic end of life challenge has also been pursued by Procter & Gamble with their

PureCycle Technologies. This revolutionary solvent-based process removes colour, odour

and contaminants from polypropylene plastic waste to transform it into a “virgin-like”

resin that can be used in new plastic products. This works by using additives

manufactured by Milliken & Company and the first commercial scale process is due to be

commissioned in 2021.

Page 25 of 29

Currently only polyethylene terephthalate (PET) and high-density polyethylene (HDPE)

are economically viable for recycling. PureCycle focuses on polypropylene (PP) because it

is the second most used plastic in the world and currently only 1% is recycled. PP is used

for the majority of plastic bottle caps, luggage, carpets, computers, phones and grocery

packaging. However, as it retains pungent smells and contaminants when it is recycled,

it is restricted to things like park benches and car bumpers.

Procter & Gamble claim that the solvent choice plus the specific process steps, allow

them to tailor the PureCycle Process to purify the recyclate in a manner that no one else

has been able to do before. The recycled resin can then be combined with Milliken’s

additives so that the output is not limited to black and grey products. The first

commercial plant will process more than 50,000 tonnes per annum of waste PP. Procter

& Gamble’s ambition is to build 25 plants around the world, each one bigger than the

one before, to PureCycle 10 to 20 percent of all PP.

EU (Withdrawal Agreement) BILL

Government Ministers to decide (new clause 26) if any court or tribunal should be

bound by rulings from European Court of Justice

House of Lords claims this risks leading to “significant legal uncertainty” for

individuals and companies if case law can be reinterpreted at any point

The previous version of the Bill (i.e. pre-General Election) only gave the Supreme

Court and High Court judges the right to reinterpret EU case law.

Retained EU Law can be altered after exit day with courts prone to political

manipulation

How will this impact the OSS v Environment Agency caselaw and the PFO Protocol

Review

How will this impact the legal position with SWOBs

PFO PROTOCOL REVIEW

The first PFO review meeting will take place at Ashorne Hill, Leamington Spa, on the 25th

March.

The review of all 13 Quality Protocols is continuing but there have been a number of

delays including during the election period. There is currently a call for evidence out on

the first three QPs (Compost, Anaerobic Digestate, and Poultry Litter Ash) and the

Agency are hoping the initial review of these will be complete by the end of April. Next in

line for review is the Inert Aggregates QP followed by the PFO QP (hopefully by start of

Summer).

Page 26 of 29

The process will work as follows:

Initial review by Richard Fairweather, EA Senior Advisor (Resources Frameworks)

and Subject Matter Experts within the Environment Agency to determine Pro’s

and Con’s of QP in its current form.

Call for Evidence both internally within the EA, and to external interested parties.

These revolve around general items of clarity and product specifications as set

out in the Briefing Note issued in August 2019. There may also be further

questions that arise from the initial review with the Subject Matter Experts.

Review of evidence to determine if the Agency will continue to support the QP in

its current format or withdraw support with a view to revision.

If the Agency support the QP in its current format it will be reissued as a

Resources Framework and hosted on Gov.uk.

If support is withdrawn, Industry can ask the Agency to work with them to revise

the document so that it meets current standards. In such circumstances the

Agency’s charging scheme will apply at minimum £125 per hour. If any issues

identified in the call for evidence can be overcome an agreed Resources

Framework will be issued and hosted on Gov.uk. It should be noted that in some

cases where the Agency agrees to undertake a revision it may not be feasible to

update the QP. For example, if the end of waste tests could not be met. The

chargeable revision process does not guarantee an updated Resources

Framework can be produced and published.

ORA is registered with the Agency as an Interested Party for the PFO Protocol Review.

ORA’s objective is to reach a members’ consensus by May or June at the latest, so that

ORA is then able to respond to the EA’s call for evidence sometime this summer. The

outcome of this process will have an impact on waste oil recovery operators (PFO &

RFO), waste oil recyclers and waste oil collectors. If the Agency decides not to continue

with the Protocol this may also have ramifications for other End of Waste positions, e.g.

for electrical oils and laundering. Now that the UK Withdrawal Bill is law, government

ministers have the authority to reinterpret EU case law and/or direct UK courts to

reinterpret.

Although the PFO Protocol was successfully defended 7 years ago, the question now

arises whether the actions which were recommended for PFO residual should be the

starting point for this review? If so, what should be the new non-waste comparator in

place of HFO, e.g. MFO or LFO? Furthermore, is the proposed distillate spec from 2016

still fit for purpose? Should different specs apply to inland and marine use? Other

considerations will be debated and explored during the meeting.

Page 27 of 29

APPROPRIATE MEASURES FOR PERMITTED

FACILITIES THAT TAKE CHEMICAL WASTE

(including WASTE OILS)

ORA’s January meeting included details about the phasing out of SGN 5.06 to make way

for new guidance “appropriate measures for permitted facilities that take chemical

waste”. Waste oils are included in the definition for “chemical waste”. This was originally

planned for June last year but then delayed until the clinical waste consultation process

was completed. Further delays then followed with the BREXIT impasse and the general

election.

As predicted in January, the new guidance is now out for consultation (announced 3rd

February 2020), which will close at 11.45pm on 6 April 2020.

This new guidance will also incorporate the relevant requirements of the waste treatment

best available techniques conclusions publication made under the European Industrial

Emission Directive (2010/75/EU).

The preparations for the new Waste Treatment BREF (Best Available Techniques

Reference) were first outlined during ORA’s January 2019 meeting and the BREF Working

Group was formed in August last year. The working group members are Steve Chalupka,

Barry Couzens, Gareth Kelly and Vin Vernon (Neil Holland had to drop out but is trying to

facilitate input from Veolia’s Technical Manager – John Humpage). It is not too late for

this consultation to be handled via ORA’s BREF Working Group and if you would like to

be involved in that process then please get in touch.

REMEMBER that the measures set out in this Guidance will need to be implemented by

2022 (via variations to permits) and unlike the previous SGN 5.06 there are now lots of

“MUST” do requirements.

More details are available from the following link:

https://www.gov.uk/government/consultations/appropriate-measures-for-permitted-facilities-that-

take-chemical-waste

If you do not wish to support ORA’s BREF Working Group to produce a consultation

response, you can still provide your own response via the following link:

https://consult.environment-agency.gov.uk/environment-and-business/appropriate-measures-for-

chemical-waste/

ORA’s AGM – 8th OCTOBER 2020 at ASHORNE HILL

More details will be announced in April when the Early Bird offer tickets go on sale.

Terry Waite CBE will be the After-Dinner speaker at this year’s event.

Terry was born in Bollington, England on the 31st May 1939. He was educated locally

and received his higher education in London.

Page 28 of 29

On leaving college, he was appointed as Education Advisor to the Anglican Bishop of

Bristol, England and remained in that post until he moved to East Africa in 1969.

In Uganda, Terry worked as Provincial Training Adviser to the first African Anglican

Archbishop of Uganda, Rwanda and Burundi and in that capacity travelled extensively

throughout East Africa. Together with his wife Frances and their four children he

witnessed the Idi Amin coup in Uganda and both he and his wife narrowly escaped death

on several occasions. From his office in Kampala, he founded the Southern Sudan Project

and was responsible for developing programmes of aid and development for this war-

torn region.

In 1972, Terry responded to an invitation to work as an International Consultant to a

Roman Catholic Medical Order and moved with his family to live in Rome, Italy. From

this base, he travelled extensively throughout Asia, Africa, North and South America and

Europe both conducting and advising on programmes concerned with Institutional

Change and Development, Inter-Cultural Relations, Group and Inter-group Dynamics

and a broad range of development issues connected with both health and education.

In 1980, he was recruited by the Archbishop of Canterbury and moved to Lambeth

Palace, London where he joined the Archbishop’s Private Staff. In his capacity as Advisor

to the Archbishop, Terry again travelled extensively throughout the world and had

responsibility for the Archbishop’s diplomatic and ecclesiastical exchanges. He arranged

and travelled with the Archbishop on the first-ever visit of an Archbishop of Canterbury

to China and had responsibility for travels to Australia, New Zealand, Burma, USA,

Canada, The Caribbean, South Africa, East and West Africa to name but a few places.

In the early 1980s, Terry Waite successfully negotiated the release of several hostages

from Iran, attracting worldwide attention. In 1983 he negotiated with Colonel Ghadafi for

the release of British hostages held in Libya and again was successful.

In January 1987, while negotiating for the release of Western hostages in

Lebanon (which included the journalist John McCarthy), Terry himself was

taken captive and remained in captivity for 1,763 days, the first four years of

which were spent in total solitary confinement changed to a radiator for more

than 23 hours a day.

Following his release on 19th November 1991, Terry was elected a Fellow Commoner at

Trinity Hall Cambridge England, where he wrote his first book Taken on Trust, which

quickly became an international bestseller. Following his experience as a captive, Terry

decided to make a career change and determined to give himself to study, writing,

lecturing and humanitarian activities.

His second book, Footfalls in Memory, is a collection of selections from books, poems and

prayers, which Waite had read throughout his life and then remembered during his

solitary confinement in Beirut. Published in 1995, it, too, became a bestseller.

Terry has contributed articles to many journals and periodicals ranging from the Reader’s

Digest to the Kipling Journal and has also contributed articles and forewords to many

books. Terry Waite gives audiences a perspective of world affairs founded on open

communication, cooperation and a deep understanding of diverse cultures.

Page 29 of 29

FILL THIS SPACE

MEMBERS’ SPACE

Any member can use this space for asking questions that may be of interest to all

members, or for publishing a member’s editorial about a particular topic that is of

interest to them, or about a new exciting business development.

For more details email:

[email protected]

ADVERTISING SPACE

Any member or non-member can use this space to advertise their products or services to

ORA members. Any member may have an existing or new product/service offering that

may be of interest to other members. For more details and to advertise in this space

please email:

[email protected]

ORA-CLE and its contents are confidential, protected by law and legally privileged. Only access by ORA

Members and their professional advisors is authorised. Any liability (in negligence, contract or otherwise)

arising from any party taking any action, or refraining from taking any action on the basis of any of the

information contained in ORA-CLE is hereby excluded. Please do not disclose the contents to any person other

than your professional advisors (subject to them accepting these conditions) or other ORA Members. Do not

copy the information in any medium or use it for any purpose whatsoever. Except where stated otherwise

copyright belongs to the Original Recycling Association Limited and as the author, it asserts the right to be

identified as such and it hereby objects to any misuse thereof.

Original Recycling Association Limited, 6 Abbey Court, High Street, Newport, TF10 7BW

Tel: +44 (0) 1952 306228 www.ora.org.uk