This circular has been produced for the benefit of pension fund institutions, potential scheme members and trustees to outline the main factors which are taken into consideration by Wilbourn Associates in deciding on whether or not an Environmental Screening report is considered to be necessary for a property. It may also be of benefit to surveyors undertaking valuations of property for pension schemes.

The factors which are taken into consideration are drawn from the valuation report prepared by others and submitted to Wilbourn Associates which should (but do not always) include location and site plans, a completed RICS Property Observation Checklist and Subsidence Questionnaire. Specific knowledge and experience of the locality from previous work undertaken by Wilbourn Associates may also be used.


The main factors taken into consideration are outlined as follows:-

Where new development or
redevelopment is proposed

This is because the risks can be greater during construction of a building than merely occupying it since if there is contamination, this may be in a stable condition and capped from the surface by existing development. However, disturbance of the ground during construction may increase the risk to construction workers and increase the potential for any contamination to be liberated from within the soils into the groundwater, within which it may migrate off site on to adjoining land.

Remedial works may be required to minimize these risks which if were to remain unidentified could have significant cost implications as claims from injured third parties or the regulators (Environment Agency and Local Authority).

The investigation and remediation of contaminated land can be expensive and if this is identified at an early stage the option is available not to proceed.

There may be ground gas implications such as methane and carbon dioxide from landfills or other filled ground, marshy ground, shallow mine workings and alluvium which could present a risk to building occupants. Radon gas may also be an issue. Although works can be undertaken to existing buildings to reduce such risks, it is cheaper and easier to identify such risks prior to development commencing particularly if more robust protection measures are necessary.

There may be ground stability issues from historical landfilling, worked ground and old mine workings necessitating geotechnical expertise in addition to environmental.

The requirement for an environmental report where development is intended may also be a condition of planning consent.


Where the current or historical uses are
perceived to be potentially contaminative

The current use is usually determined from the Property Observation Checklist appended to the valuation report forwarded to Wilbourn Associates. It is insufficient for this to state only the broad category of use for the site such as industrial, light industrial, factory or workshop, since where this is the case, it may be assumed that the use is potentially contaminative and an environmental screening report may be recommended. A more detailed description of the specific activities known to have been undertaken is necessary eg.vehicle maintenance and repair, manufacturer of double glazing units, storage and distribution of clothing etc.

Similarly stating only the company name occupying or last occupying the property is also insufficient on its own to make a judgement of the potential for contamination. Wherever possible, both the company name and specific nature of the business activity should be stated on the checklist. Any historical uses should also be given if known.


Where tanks, drums or other containers of fuel and other chemicals have been identified from the Property Observation Checklist

Such facilities can present a significant potential source of contamination, particularly where they are unbunded (no bund wall enclosure), unsecured or where there are underground tanks.

An indication that there is bunding to such facilities and adequate security is insufficient since such arrangements may be defective, inadequate or in a state of disrepair which can only be determined from inspection by a suitably qualified professional.

In the case of underground fuel tanks which previously existed, it will be necessary to make an enquiry to the Petroleum Licensing Authority who may have information on the size and nature of the tanks and any decommissioning works.

In the case of existing underground fuel tanks, it will be necessary to prove that the integrity of such tanks has not been breached by providing a test certificate.

Other considerations in respect of fuel or chemical storage is the proximity of surface water features (ponds, ditches, streams and rivers) and the sensitivity of groundwater resources (aquifer status) in the area.


Where significant oil or other staining or odorous liquids have been identified from the Property Observation Checklist

Although the Property Observation Checklist may not indicate the presence of tanks, drums or other containers of oils or other chemicals, it is possible that they could have been missed during the inspection by the valuer and form an integral part of a manufacturing process.

Oil or other staining may be an indicator of poor site management practice which may suggest the possible existence of other environmental issues which require addressing.


Where waste or fly tipping has been identified from the Property Observation Checklist

This is usually an indicator of poor site management practice which may suggest the possible existence of other environmental issues which require addressing.


Where potentially contaminative uses are identified within the surrounding area

This may be determined from the Property Observation Checklist, the site plan presented in the valuation report or background information presented within the text of the valuation report. Wilbourn Associates may also have specific knowledge of the area which indicates a potential risk which may not be apparent from the information supplied.

Situations where the site is located on an industrial estate of similar uses to that of the site (where no potential sources have been identified within the site) would not generally indicate a requirement for an Environmental Screening report. However the proximity of specific uses which are perceived to have a moderate to high risk of potential contamination may indicate a recommendation for an Environmental Screening. Such uses may include but not necessarily be restricted to gas works, chemical works, iron and steel works, fuel depots and petrol stations, refuse tips and other waste management facilities and mineral workings.

The available information may also indicate the presence of other features within the surrounding area which indicate a potential risk. Such features may include but not necessarily be restricted to tanks, marshy ground and embankment features.


Other Issues

Asbestos

The valuation report may indicate the presence or suspicion of asbestos cement sheet roofing and/or cladding to the building exterior and the possibility of asbestos containing materials within the internal building fabric.

Whilst an Environmental Screening report would not be considered necessary based on this fact alone, the pension fund need to be aware that if asbestos cement products are indicated to be present or if any part of the building was constructed before 1999, then the possibility of asbestos materials within the building fabric cannot be discounted.

Under the Control of Asbestos at Work Regulations 2002 enforced by Statutory Instrument 2002 No. 2675, employers should not carry out work which is liable to expose their employees (or any other person who may be affected by the work activity) to asbestos unless they have made a suitable and sufficient assessment of the risk to human health and outlined the steps, if any, to be taken to mitigate such risk. This duty (Regulations 6) came into force on 21 November 2002.

From 21 May 2004 Regulation 4 now requires the "Dutyholder" for any non-domestic building to assess where asbestos is or is liable to be present and develop and implement an asbestos management plan for that building, updating it where necessary. The "Dutyholder" is the party who has by virtue of contract or tenancy, an obligation for the repair or maintenance of the building. The management plan should include the following:-

" Provision for an asbestos survey of the building with a register of any asbestos materials identified to form the basis of the management plan. A copy of the survey and register should be kept at the building to which they relate for future reference by employees, contractors and regulators;

Provision for the determination of risk for each item identified or presumed to contain asbestos and an outline of the measures to manage the risk;

Provision to ensure any asbestos containing materials are properly maintained or where necessary safely removed;

Provision for periodic inspections of the locations where asbestos materials have been identified to monitor condition;

Provision to ensure that information about the location and condition of any asbestos containing materials is provided to every person liable to disturb it, including building occupants, contractors and emergency services;

Provision for the plan to be regularly reviewed and revised in order to record where measures specified in the plan have been undertaken, where further suspected asbestos containing materials have been identified or where the condition of identified materials has changed with the levels of risk assessed and management measures determined.

It should be noted that this also applies to newly constructed premises when it is probable that no asbestos materials have been incorporated into the construction. In such circumstances the asbestos management plan could include a copy of the building materials specification supplied by the architect with a covering letter confirming that no asbestos materials were used.


Environmental Data

Where potential sources of contamination have been identified, it will be necessary to consider the proximity of any surface water features (ponds, ditches, streams or rivers), the sensitivity of groundwater resources (aquifer status) and the proximity of any other environmental features (SSSIs or Nature Reserves etc) in the area which may present sensitive targets or provide a migration pathway for contamination.

If a potentially contaminative use is identified which warrants an Environmental Screening where these features are material, it will be necessary to supplement the Environmental Screening with environmental data assimilated from various sources which will include but not necessarily be restricted to the following:-

Environmental data assimilated from various sources including the Environment Agency, Local Authority, British Geological Survey, Health & Safety Executive and English Nature, relating to water resources (abstraction licences, discharge contents, pollution incidents and prosecutions), other consents, authorisation and enforcements, waste management facilities, hazardous substances, petrol filling stations, geology, mining and subsidence hazards and sensitive land uses.

Coal Mining

Where the site is located in a coalfield, it may be necessary to obtain a Coal Authority Mining Report. Such a report will state whether the site has been undermined, the depth and last date of such workings, the proximity of any abandoned mine entries and whether the site has been subjected to opencasting (surface coal extraction).

This is important since if shallow workings or an abandoned mine entry have been identified, there may be a risk of structural instability to the property. Coal opencasting may also present a similar risk, particularly if the property straddles the opencast high wall (boundary of the former excavation).

Any new development in such circumstances will therefore be required to adopt measures to mitigate against ground instability.

Coal mine workings also present a potential source of methane and carbon dioxide gas which may present a risk to building occupants. The Environmental Screening report may determine that further assessment is necessary by recommending monitoring of gas which may indicate a requirement for protection measures. Such measures can be incorporated into the design of a new building and there are other solutions available to existing buildings depending on the severity of the problem.


Overhead Power Lines And Electricity Substations

These generate electromagnetic fields and there is a perception in the market place relating to the association of electromagnetic interference from high voltage electrical supply apparatus and its affect on health and data processing or communications equipment.

However the National Radiological Protection Board (NRPB), an independent body with responsibility for advising on electromagnetic fields, has concluded that, 'there is no clear evidence of adverse health effects at the levels of electromagnetic fields to which people are normally exposed'.

An Environmental Screening report would not therefore be recommended based purely on the possible presence of electromagnetic fields, although interested parties need to be aware that there may be a reduction in value because of the perception of possible adverse health effects.

It should also be noted that electricity substations may present a potential source of contamination from PCBs, particularly if the equipment predates 1986 and is located within a building. The presence of a substation within a site may therefore be justification for an Environmental Screening being recommended.


Pre-existing Environmental Reports

Where pre-existing environmental reports or other documentation is made available for a site by the scheme member an Environmental Screening report will still be recommended as the presence of such a report suggests that some concern may have already been raised with regard to environmental risk.

Although it may be possible to get the report reassigned by the authors on payment of a fee it should be noted that Wilbourn Associates would again not be able to review this documentation without undertaking an Environmental Screening. We would have no knowledge why the report was commissioned, the consultants and whether it met the objectives set.

The Environmental Screening report will enable Wilbourn Associates to reach an independent decision on contamination issues. The supplied documentation can be assessed alongside the Environmental Screening to determine a more informed overall position on environmental risk. It is often necessary to review this documentation as remedial works may have been recommended or indeed undertaken as part of the report.

If a document review is undertaken alongside an Environmental Screening report the pension fund will have the benefit of five million pounds worth of Professional Indemnity Insurance cover.


What is an Environmental Screening Report?

The Environmental Screening Report includes the following:-

A review of the historical Ordnance Survey maps;

An outline of the underlying geology;

An assessment of the vulnerability of surface and groundwater resources;

An assessment of ground gas susceptibility;

The proximity of current licensed waste management facilities

A site inspection in which the Royal Institution of Chartered Surveyors Property Observation Checklist will be completed. This checklist now forms part of the professional guidance note 'Contamination and Environmental Matters - their implications for property professional';

Environmental data from the Environment Agency and other sources (only where the site is located in a sensitive area in terms of surface or groundwater resources or other environmental features);

Coal Mining Report from the Coal Authority (only where the site is located in a coal mining area). This may already be in the possession of the scheme member or their solicitor;

A review of any pre-existing environmental documentation.

The risk will also be categorised in accordance with the following risk assessment:-

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