News : 22 March 2012 - Concluding Report into Brine Well Failure Published by Halite Energy
Halite Energy has made publicly available its report prepared at the conclusion of an internal investigation under the Health & Safety at Work Act 1974.
A statement from the company follows:
Following the unexpected brine well incident in June last year immediate action was taken to ascertain its cause. Specialists from Mott MacDonald, the global development and engineering company, carried out extensive testing and established that the primary cause of the incident was a mechanical and not geological failure, most likely caused by the techniques used to construct and operate such wells in the early part of the 20th century.
Company records showed that the brine well involved in the incident had been inspected in February 2011 and again in March 2011. On both occasions, the well was found to be in good condition. Neither Halite nor its contractors had operated this wellhead between the time of these inspections and the time of the event. An inspection performed shortly after the incident revealed unexplained markings on the wellhead. In addition, an inspection of the wider brine field after the incident showed that a total of eight wellheads on Halite's land had been recently operated without the authority or permission of the company, leading in one case to a brine spill causing localised environmental damage.
With clear evidence of unauthorised operation of eight wellheads and unexplained markings on the wellhead at the centre of the incident, Halite informed the Environment Agency and the Health & Safety Executive that it had reason to believe a third party had interfered with company assets.
Forensic Access, a company with renowned expertise, confirmed that the unexplained marks were consistent with tools marks.
Given the serious nature of the incident and the potential dangers to the local community and environment that could result from further tampering with company assets, the board of Halite concluded that it had a fiduciary obligation to share the above evidence of potential illegal tampering with the Police.
As a precautionary measure, to prevent another such unexpected occurrence in the future and to reassure the community, Halite introduced intensive security arrangements including round the clock ranger patrols and the application of devices to other wellheads to prevent any further unauthorised interference with company property.
Keith Budinger, chief executive of Halite Energy, said: "Safety and security are paramount to Halite. The evidence of tool markings alongside the fact that eight wellheads had been tampered with left us with no choice but to report the matter to the authorities. We were obliged under legislation to act in the responsible way that we did, which was in line with our fiduciary duties under the law.
"Whilst we appreciate that some members of the local community have been unhappy that the evidence of potential tampering has until now not been publicly disclosed, the relevant authorities had requested that this evidence only be shared with them whilst their investigations were ongoing in order to ensure that their investigations were not compromised. We are fully aware of the concern and uncertainty that this has created in some areas but we hope that people will realise that this is a very serious issue which had to be thoroughly investigated.
“The Police have now confirmed that there is insufficient evidence to positively verify that a crime was committed and that they are undertaking no further investigation at this time.”
The company is continuing to assess the historic brine fields that were created and left by previous owners of the land and is committed to safely maintaining the inherited assets. Further monitoring and maintenance work continues to be undertaken to gain more understanding of the old mine workings and brine assets. Halite will continue to work closely with its tenants and neighbours to understand their concerns and keep them informed of all activities.