Form

Guidance Notes for Applicants for Underground Coal Gasification Licences

Updated 23 September 2024

Those wishing to carry out Underground Coal Gasification (“UCG”) operations in any part of England, Scotland and Wales, but not Northern Ireland, require:

• authorisation from the Coal Authority (“the Authority”), as UCG is classed as a coal mining operation, and we will issue an Underground Coal Gasification Licence (“Licence”) for this purpose

• the property interest in the coal which, in virtually all circumstances, will be owned by the us and we will grant a Lease in conjunction with the Licence for this purpose

• the necessary access rights from the surface landowner (which could be us) and/or the seabed for offshore operations

• all the other necessary permissions or consents, e.g. planning permission (or equivalent offshore permission) and environmental consents.

We charge fees in relation to the application, grant and holding of a Licence. If we revise our Scale of Fees the information will be published on our website and these Guidance Notes will be revised.

https://www.gov.uk/government/organisations/the-coal-authority/about-our-services

These Guidance Notes should be read in association with the Coal Authority’s published policy on Underground Coal Gasification which is available directly from us.

1. Nature of Licence

We grant two types of Licence, namely:

• An Operating Licence, where the applicant satisfies all our statutory licensing requirements and where all the other necessary, rights permissions and consents to carry out UCG operations are in place; or
• A Conditional Licence as described at below.

We also grant variations to a Licence including change in Licence area, extension of Licence term and assignment to a new operator.

A copy of our model Licence is available on request.

2. Conditional Licence

An applicant who has not secured all the necessary permissions and consents (e.g. planning permission) might be reluctant to commit themselves irrevocably to substantial expenditure in developing a project without some assurance that they will be granted an Operating Licence and associated Lease when these permissions and consents are obtained.

A Conditional Licence caters for these circumstances and defers the coming into effect of the authorisation to mine until the specified requirements have been satisfied. It will lapse if these requirements are not fulfilled within a specified period, normally a maximum of 8 years.

When we grant a Conditional Licence we will also grant:

• an Option for Lease (except in the rare instances where we do not own the coal); and

• a non-exclusive Exploration Licence which will need supplementary site specific consent(s) prior to any exploration works being carried out.

Both of the above will also lapse if the conditionality requirements are not fulfilled.

3. Timing and Content of Applications

The application for a Licence can be made to us at any time but must be in place before any works start. The information to be provided is set out in the application form.

Applicants should note the following when submitting an application.

The application must be in English.

The applicant is required to pay a non-refundable fee when submitting the application.

We will formally acknowledge receipt of the application. The acknowledged receipt does not constitute an undertaking by us that a Licence will be granted, nor does the grant of a Licence imply any confirmation by us that there is any potential for underground coal gasification within the Licence area.

We may ask for additional information or clarification from the applicant. It will greatly assist the Authority if applications are full and complete and applicants respond promptly to any request for further information or clarification.

If, following a request by us for further information, a period of 3 months (or other period agreed in writing) elapses without the applicant providing that information, we reserve the right to terminate the application by way of written notification.

If it emerges during the processing of the application that any information supplied by the applicant is false or misleading, or that any material information has been withheld, we may reject the application or, if the Licence has already been granted, we may terminate it by written notice.

We will consider any application for a licence having regard to our published policy as described above and we may reject an application if we consider that it does not comply with that policy. In such a case any information supplied and the application fee will be returned to the Applicant.

4. Publication of Applications

In recognition of our duties towards the coal mining industry, all applications for a Licence will be publicised by us on our website in order that others are given the opportunity to express any interests in the area concerned.

We will not normally publicise applications for minor variations to existing Licences. The decision whether to publicise applications for more significant variations (e.g. a large increase in Licence area) will be taken on a case by case basis.

A period of 30 days from the publication of an application will be allowed for expressions of interest and if any are received, then a further 30 days for the submission of competing applications. The applicant will be kept fully informed of any expressions of interest and competing applications.

The Coal Industry Act 1994 requires us to establish and maintain a register containing particulars of applications for Licences of this type (“the Licence Register”) and to establish and maintain arrangements for public access to that register. Commercially confidential information will not be included in the Licence Register.

5. Determining Applications

We have a target that we will make a determination on whether or not to grant a Licence within 5 weeks of an application being deemed complete.

We will determine an application in the light of our statutory duties, as outlined in the Coal Industry Act 1994. These include the duties to secure, so far as practicable, that an economically viable coal mining industry is maintained and developed. The licensees are able to finance both the operations and the discharge of any liabilities resulting from them, and adequate security is in place so that those affected by subsidence damage do not sustain a loss.

These also include the duties to have regard to the desirability of securing that licensees have at their disposal the appropriate experience and expertise to ensure that operations are properly carried out. The desirability of securing that competition is promoted between the different persons carrying on, or seeking to carry on, coal mining operations and the regard to the subsidence damage that may be caused by coal mining operations.

We will also take account of the extent to which the Applicant has obtained the other necessary access rights, permissions and consents.

Following our publication process outlined above there may be the instance of competing applications for a particular licence, all capable of being granted. In these cases we will :-

• make a determination having regard to the merits of the competing applications in conjunction with our statutory duties;

• inform the successful applicant in writing that we are minded to grant a licence and inform the unsuccessful applicant(s) of the decision together with the reasons form that decision;

• allow the unsuccessful applicant(s) a period of 28 working days from notification to request a review of the decision prior to making a formal Licence offer to the successful applicant

If we decide to grant a Licence, and in the case of competing applications there has been no request for a review, then we will make an offer in writing to the applicant enclosing copies of the legal documents for signing. If the offer is accepted the applicant will be required to pay a grant fee and, if it is a Conditional Licence with an Option for Lease, the initial property rights payment.

It will greatly assist us if the applicant responds promptly to the offer of a Licence. If, following an offer of a Licence, a period of 2 months elapses without the applicant returning the signed legal documents and paying the required grant fee, we reserve the right to withdraw the offer by way of written notification.

Once a Licence has been granted the particulars of the granted Licence will be put on the Licence Register.

It should be noted that the provisions of the 2017 Wales Act modified the 1994 Coal Industry Act so that a Licence authorising coal-mining operations in Wales shall have effect only if Welsh Ministers notify the Authority that they approve the authorisation.

6. Refusal of an application

If an application for a licence is refused then we will state in writing our reasons for refusal. Refusal of an application does not prevent an applicant from submitting a licence application in the future.

7. Term of Licence

The term of an operating Licence and associated Lease will normally match that of the relevant planning consent for the operation.

A conditional Licence will initially have a maximum term of 8 years for the Licensee to satisfy the conditions in the Licence. When these conditions are met and the Licence is made operational then the term will match that of the relevant planning (or equivalent offshore) consent.

Where a Licence has a term of longer than 1 year then we will charge an annual fee.

8. Interaction Agreement

Interaction comprises, broadly, the effects of an operation on another operation. In terms of the Authority, those interaction effects include the flows of water and gas, and effects on the structural integrity of workings, coal seams and the surface.

The Interaction Agreement provides a framework to facilitate arrangements between parties holding licences and agreements from us to deal with possible interaction effects (other than those addressed by the Health and Safety Executive’s regulatory regime). We are a signatory to the Interaction Agreement so interaction effects can be with our operations.

An applicant who has not already done so will be required to become a party to the Interaction Agreement when being granted a Licence.

We may disclose the existence of a Licence and the name and address of the Licence holder to any other party for the purpose of enabling such party to engage with the Licence holder under the terms of the Interaction Agreement.

Copies of the Interaction Agreement are available for download on our website as shown above or directly from us at the contact details shown on the application form. A list of the parties to the Interaction Agreement is also available directly from us.