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Methodologies & Limitations: Agricultural risk assessment

Environmental risk framework

The Groundsure Agricultural is designed to provide a basic environmental liability risk assessment for the purposes of transaction due diligence, financing arrangements and similar circumstances. The report comprises a basic risk assessment within the general principles of the contaminant-pathway-receptor pollutant linkage model and with due regard for relevant publications issued by the Department of Environment, Food and Rural Affairs (and predecessor government departments) the British Standards Institute and the European Union.

Please note Groundsure Agricultural Reports and assessments are only suitable for agricultural land and associated farmyards which are to remain in use for agricultural purposes. If you require an assessment for redevelopment purposes, please contact your search provider for further guidance.

Explicit opinion is provided with regard to potential liability for the property to be identified as Contaminated Land in accordance with the meaning set out in Part 2A of the Environmental Protection Act 1990. Consideration and due regard is also made of
associated legislation that may lead to related statutory or third party environmental liability, including but not limited to the Water Resources Act 1991,the Water Act 2014, the Contaminated Land Regulations 2006, Environmental Permitting Regulations 2010, the
Environmental Damage (Prevention and Remediation) (England) (Amendment) Regulations 2015 in England and the Environmental Damage (Prevention and Remediation) (Amendment) (Wales) Regulations 2015 in Wales.

This report does not contain a detailed Conceptual Site Model as required in the National Planning Policy Framework, however, it may prove highly effective in determining whether such further assessment is appropriate.

The report is based upon the information contained in subsequent dataset sections. Some datasets have been generated by and are unique to Groundsure, whilst others are provided by recognised bodies including Environment Agency/Natural Resources Wales,
British Geological Survey, Public Health England, Local Authorities, etc. Groundsure may also have been provided with further details regarding the site by the client and / or their advisers. In the absence of such, Groundsure has made a best estimation regarding
current and proposed land use. This report and the risk assessment presented is based purely upon this information.

In undertaking this report Groundsure has not, unless explicitly stated to the contrary, undertaken a site inspection, site investigation, consulted directly with the Local Authority with specific regard to the subject property or reviewed existing environmental reports. Whilst every effort is made to consider likely environmental liabilities on the basis of the information assessed, certain issues may only be readily discernible from physical site inspection and / or investigation.

Contaminant source - Pathway - Receptor definitions

Contaminant sources include (but are not limited to):

  • Historical on-site and historical off-site sources (works, factories, oil tanks, landfill sites);
  • Current on-site and current off-site sources (petrol stations, industrial facilities).
Pathways comprise:
  • Any mechanisms facilitating 'receptor' exposure to contaminative 'sources'.
Receptors include:
  • Human health i.e. site users or occupiers, adjacent site users or occupiers;
  • Controlled Waters i.e. groundwater, surface water (rivers and streams etc);
  • Habitats and biodiversity (in particular nature reserves or other designated sensitive habitats);
  • Property, buildings and infrastructure.

Environmental risk assessment definitions

The level of risk associated with the property is divided into five categories: 

  • Low: There are unlikely to be significant environmental liabilities associated with the property. 
  • Low to Moderate: There are unlikely to be significant environmental liabilities associated with the property with regard to the proposed use. However, minor issues may require further consideration and assessment under certain circumstances e.g. redevelopment. 
  • Moderate: Some potential environmental liabilities are likely to reside with the property as a result of historical and / or current use. Whilst unlikely to represent an immediate significant issue, if left unchecked this position may change with time. A prudent purchaser may wish to make further enquiries of the vendor / undertake limited further due diligence / seek environmental improvements. Redevelopment of the site will likely require further, more detailed assessment. 
  • Moderate to High: Some potential significant environmental liability issues have been identified at the property requiring further assessment. Should further information be available it may be possible to re-assess the risk. In the absence of sufficient further information, further assessment might comprise consultation with the environmental regulators / review of existing environmental reports / commissioning new environmental reports / consideration of environmental insurance.
  • High: Significant potential environmental liabilities have been identified at the property. Further detailed environmental due diligence will likely be required and may include review of existing environmental reports / commissioning new environmental reports including site investigations / consideration of environmental insurance / transaction restructuring.

Is there a risk of statutory (e.g. Part 2A EPA 1990) or third party action being taken against the site?

This response considers the risk of legal liability arising through ownership or occupation and use of the property through statutory or other third party claims.

Does the property represent Acceptable Banking Security from an environmental risk perspective?

Consideration is given to the suitability of the property as robust financial security for the purposes of secured lending facilities. An assumption is made here that the subject property is being considered in isolation and that normal commercial lending loan to value ratios are being considered. Groundsure may in certain circumstances be able to make a specific lender liability assessment based on a full view of financial
arrangements and hence the commercial context of the environmental risks.

Is there a risk that the property value may be impacted due to environmental liability issues?

This response sets out to advise whether environmental liabilities are likely to materially impact upon a standard Royal Institution of Chartered Surveyors valuation of the property necessitating further assessment.

Environmental Damage (Prevention and Remediation) Regulations 2015

The Environmental Damage (Prevention and Remediation) (England) (Amendment) Regulations 2015, the Environmental Damage (Prevention and Remediation) (Amendment) (Wales) Regulations 2015 and the Environmental Liability (Scotland) Amendment Regulations 2015 came into force on 19th July 2015, and amend the Environmental Damage (Prevention and Remediation) Regulations 2009, which came into force in England on 1st March 2009, in Wales on 6th May 2009 and in Scotland on 24th June 2009. These regulations implement the European Directive on Environmental Liability (2004/35/EC) and are aimed at ensuring responsible parties prevent and remedy environmental damage to the following receptors:

  • Sites of Special Scientific Interest (SSSIs), other protected habitats and protected species;
  • Surface waters;
  • Groundwater;
  • Land, if contamination of the land results in significant risk of adverse effects on human health.

The regulations are based on the 'polluter pays' principle and ensures that those responsible for causing environmental damage are those responsible for paying to prevent and remedy such damage. 'Environmental Damage' has a specific meaning within the Regulations, and covers only the most serious cases. For damage to SSSIs, EU protected species and habitats and damage to water, primary remediation, complementary remediation and compensatory remediation may be required by the enforcing authorities (Environment Agency/Natural Resources Wales, Scottish Environment Protection Agency (SEPA), Local Authorities, the Marine Fisheries Agency, Marine Scotland, Welsh Ministers and Natural England/Natural Resources Wales/Scottish Natural Heritage).

The regulations apply on land in England, Wales and Scotland, 1 nautical mile seaward from the baseline (in relation to water damage), on the seabed around the UK up to the limits set out in the Continental Shelf Act 1964, and to waters in the Renewable
Energy Zone, which extends approximately 200 miles out to sea (in relation to protected species and natural habitats). These regulations are designed to work in tandem with Part 2A of the Environmental Protection Act, and only apply to environmental damage caused after the Regulations came into force. Groundsure's assessment of the site is not an assessment of the potential for Environmental Damage to occur at the site, but is an assessment of the sensitivity of the site in relation to relevant receptors.