Land Compensation Manual Section 11: Minerals, tipping sites and contaminated land

Minerals, tipping Sites and contaminated land

The Valuation Office Agency`s technical manual covering all aspects of compulsory purchase and compensation.


11.1 Properties dealt with by the NSU Minerals team (Minerals)

The following properties are the responsibility of the NSU Minerals team:

Mines, quarries, all other mineral extraction sites and mineral bearing land. Landfill gas electricity generators and landfill gas extraction sites
Asphalt and coating plants Civic amenity and household waste recycling centres
Brickworks Waste transfer stations
Concrete block and product works Waste recycling sites
Peat workings Energy from waste plants - waste incinerators and anaerobic digesters (where waste is primary feedstock).
Sea dredged aggregates plants and wharves Composting and green waste recycling sites
Oil and gas installations Materials recycling facilities for domestic waste stream
Mineral processing plants Borrow pits and borrow tips
Mechanised coal depots Mineral or waste railhead and shipping facilities
Mine gas extraction sites Mine water treatment and leachate treatment plants
Concrete batching plants Bulk cement storage depots
Landfill sites Spoil heap workings

11.2 Review of boundaries

During 1994 the Minerals Team reviewed the boundaries of the areas within which they considered that there may be a risk of subsidence from past, present, or future underground mining operations which may affect the value of the surface.

To determine whether a property falls in any such area of risk the valuer should consult the following nationally recognised digital sources of mining information and former mining areas:

For properties in the former coal mining areas:

For properties in former non-coal mining areas:

Further assistance and clarification can be had from the Minerals team.

11.3 Scope of Section

This section deals with the valuation of properties

(i) that are situated within the areas specified at paragraph 11.2 above; or

(ii) where the value of the property or the compensation payable on acquisition may be otherwise affected by the presence of minerals, tipping space, or contamination; or

(iii) where the property to be valued is the responsibility of the Minerals team - see paragraph 11.1 above.

For the purpose of this instruction ‘minerals’ includes not only all underground minerals, ore deposits, oil and gas, but all surface minerals and substances (sand or gravel, clay, chalk, peat and such) and minerals in spoil heaps and borrow pits.

Cases where the Minerals team’s assistance might be required

11.4 Underground mining subsidence

The following may be relevant factors in the valuation of land and buildings in mining areas:

(i) the risk of damage from subsidence due to past, present or future underground mining operations;

(ii) the risk of damage from subsidence due to the presence of mine shafts, surface adits and other mine entries;

(iii) the need for site investigations; and

(iv) the need for precautions during development.

Therefore a request should be made where appropriate for a subsidence report by completing form VO 3010 (see Appendix 11/1) and forwarding this to the NSU Operational Support Team via e-mail to the NSU Inbox.

The Minerals report is for the use of the valuer for valuation purposes as well as for the client in considering the effect on its proposals. In every case where the valuer is required to give advice on the value of land and buildings situated within the areas identified by Minerals where there may be a risk of subsidence it is the responsibility of the valuer to consider the need for a current Underground Mining Subsidence Report (MSR) and to have proper regard to it where a report is obtained.

In order to assist the valuer Minerals will discuss, if requested, the mining subsidence aspects of a report and also the mining subsidence aspects affecting any land that the valuer is using as a comparable in support of the valuation.

If the valuer becomes aware of any report relating to underground mining subsidence by any party Minerals should be made aware of it and asked to comment.

Where the MSR indicates a risk of damage from mining subsidence (other than minimal or insignificant) the valuer should forward the report to the client immediately on receipt and, where asked to negotiate, the valuer should seek confirmation that the client wishes to proceed with the acquisition.

In all cases where a MSR has been obtained the valuer should either enclose a copy of that MSR, or refer to the MSR previously sent (see below), or notify the client that the Minerals Team considers that the site lies in an area where a report is not necessary.

11.5 Value of minerals or tipping or the effect of contamination

Cases in which the value of the land or the compensation payable on acquisition may be affected by the presence of minerals, otherwise than by subsidence, by the potential for tipping, the presence of contaminants arising from former uses of the land or adjoining lands, or where the property is of a type identified at paragraph 11.1 above - the case must be referred by the valuer to Minerals for advice.

The request in such cases should be made on VO 3011 (see Appendix 11/2) and forwarded by e-mail to the NSU Inbox.

The Minerals report is for the assistance of the valuer on matters of valuation. The report will also give advice on the acquisition of minerals in the same ownership as the surface and where necessary on the acquisition of severed minerals.

Minerals assistance in providing estimates

11.6 Acquisition of minerals

In every case where the valuer is required to give an estimate of the cost of acquiring land, a recommendation should be included in the report indicating whether or not minerals in the same ownership as the surface should be acquired and it should indicate clearly whether or not the value of such minerals is included in the estimate.

11.7 Incorporation of the Mining Code

In all cases where the valuer’s estimate is required to accompany an application by an authority for a Compulsory Purchase Order it should be accompanied by advice on the incorporation of the Mining Code (See Section 1 paragraph 1.17 and Section 16 Paragraph 16.18). This advice will be provided to the valuer by Minerals in cases where an underground mining subsidence report has been supplied in accordance with paragraph 11.4 or a valuation report has been supplied in accordance with paragraph 11.5.

Where Minerals consider that a mining subsidence report is not necessary or where no request has been made under paragraph 11.4 the valuer should liaise with Minerals as to whether there are any other mineral interests that may be relevant and trigger consideration of the inclusion of the Mining Code.

In those case, where after consultation with Minerals, the valuer is informed there are no such interests then the valuer should report to the authority as follows:

‘In this instance there is no apparent risk of damage from mining subsidence and no apparent prospect of the surface working of minerals. It would therefore seem unnecessary to incorporate the Mining Code unless, having regard to the particular development proposed and where there are no adequate rights of support, it is considered that the site should have the long term protection afforded by the Mining Code to enable any presently unforeseeable threat to its stability to be considered should it arise’.

Procedure where surface value, mineral value or contamination are present

11.8 Co-ordination of valuations and negotiations

The valuer should ensure that there is co-ordination of values where both surface value and minerals, tipping, or contamination are involved and the case has been referred to Minerals under Paragraph 11.5, particularly where the subjects of valuation are mutually destructive. It is important that there should be consultation and full liaison between the valuer and Minerals on interpretation of statutes, pooling of information and conduct of negotiations. Difficulties on questions of responsibility for negotiations should be referred to the PS Professional Guidance team.

11.9 Reporting of cases where Minerals negotiates

When Minerals completes negotiations a report should be sent to the valuer. It will be the responsibility of the valuer in all cases, where this report forms part of a larger instruction where Minerals are not the lead with the acquiring authority, to issue the appropriate report to the acquiring authority.

In those cases where Minerals are the lead with the acquiring authority and reporting on issues that do not form part of any greater instruction, Minerals will be responsible for issuing the appropriate report to the acquiring authority.