Montgomery Waters Limited - The Exchange Fiveways, Temple Street, Llandrindod Wells, Powys, LD1 5HG
Water resources licence application decision document
Application Numbers: PAN-003335 & PAN-015604
Licence no: WA/054/0001/0117
NRW Region: Mid
Date of application: PAN-003335 18/06/2019, PAN-015604 07/10/2021
Applicant details: Montgomery Waters Limited. The Exchange Fiveways, Temple Street, Llandrindod Wells, Powys, LD1 5HG. Company no: 03239223
Summary of proposal
The applicant has historically been abstracting groundwater at Churchstoke, Montgomery, Powys since the 1990s to produce bottled water. The water is abstracted from multiple boreholes (17 in total) across an approximate 2.5km2 area in the Churchstoke locality. The application site was previously exempt from licensing under a geographical exemption established under The Severn River Authority (Exceptions from Control) Order 1967. The Water Act 2003 included provisions to remove this exemption. These provisions came into force on the 1st of January 2018 following the introduction of the Water Abstraction (Transitional Provisions) Regulations 2017.
As a result of these legislative changes, the applicant has applied for a licence under the transitional licence application process. This process allows for quantities abstracted historically between 2011-2017 (the ‘qualifying period’) to be licensed (application reference: PAN-003335).
Due to an increase in the company’s abstraction from two of their boreholes (Point P and Point Q) which occurred outside the qualifying period, the applicant is also applying to increase the quantities / period for these two boreholes. These increases were applied for under the standard licensing application process (application reference: PAN-015604). A pumping test has been completed for these proposed further quantities, consent reference WA/054/0001/0105.
The applications have been determined together and one licence has been issued. This approach is considered preferential from a regulatory perspective as it allowed the impact of the total quantity of water abstracted from the source of supply to be assessed together and provides operational clarity going forward.
Source of supply: Underground strata comprising of Western Flags, Betton Shale and Stapeley Volcanics at Churchstoke, Montgomery, Powys.
Points of abstraction and quantities: 17 boreholes located at the following national grid references: Point A: SO 28147 93751; Point B: SO 28088 93998; Point C: SO 28197 93621; Point D: SO 27840 93869; Point E: SO 28322 94232; Point F: SO 28389 94180; Point G: SO 28277 93801; Point H: SO 28449 93755; Point I: SO 28042 94187; Point J: SO 27882 94372; Point K: SO 28502 93996; Point L: SO 28470 94104; Point M: SO 28522 93887; Point N: SO 28521 93800; Point O: SO 28949 94162; Point P: SO 28783 93546 and Point Q: SO 28874 93621.
The total volume of water applied to be licensed from all boreholes is 736.08 cubic metres per day and 218,625 cubic metres per year. The applicant has applied for commercial confidentiality with respect to the individual volumes abstracted from each borehole. Therefore these volumes are not included within this decision document. The volumes for each abstraction borehole are also not included within the draft abstraction licence held on the public register. An unredacted version (not available to the public) specifies the maximum quantities to be abstracted from each borehole. It will be the unredacted version which upon issue will be referred to by NRW for any future compliance and enforcement action.
Means of abstraction: 17 boreholes not exceeding 106 diameter in depth and 310 millimetres in diameter with submersible pumps.
Purpose of abstraction: Commercial water bottling.
Abstraction period: All year.
Case history
24/06/2018: Transitional licence application submitted (application reference: PAN-003335).
04/02/2019: Two pre-applications submitted to carry out pump testing. The applicant informed NRW that historical pump testing had already been carried out. At the time NRW advised that if the pump testing provided sufficient data to support a formal application, no further pump testing was necessary. The applications were subsequently withdrawn.
03/10/2019: Two full applications submitted to increase abstraction from two boreholes: Point P and Point Q. Applications withdrawn due to lack of supporting information.
17/03/2022: Application submitted to increase abstraction from two boreholes: Point P and Point Q. Application withdrawn 11/06/2020 due to lack of information contained in Hydrogeological Impact Assessment (HIA).
16/03/2021: Groundwater investigation consent (GIC) issued to applicant to pump test two boreholes: Point P and Point Q; reference WA/054/0001/0105
17/10/2021: Application submitted to increase abstraction from two boreholes: Point P and Point Q. Application validated and accepted (application reference: PAN-015604).
Impact Assessment
Water Framework Directive (WFD)
When assessing abstraction licence applications, NRW must consider any impacts to the WFD 2000/60/EC status of the waterbody from where water is being abstracted from, in addition to any other hydrologically linked waterbodies. In the UK, the WFD Regulations 2017 set out legal requirements with the aim of all surface waterbodies achieving good ecological status (GES) or potential GES (where a waterbody is heavily modified). A groundwater body should be at Good quantitative status.
The relevant groundwater body (GB40902G205300 - Severn Uplands - Lower Palaeozoic) is classified as being at good quantitative status. However. as connectivity between groundwater and surface water flows cannot be ruled out (discussed further below) consideration should also be given to the status of the associated surface waterbody. The associated surface water body (GB109054044910 Camlad - source to conf Caebitra Bk) is at moderate ecological status. The reason for not meeting ‘Good ecological status’ (GES) is due to phosphates and likely diffuse pollution. This waterbody is achieving for its hydrological regime meaning that flows are considered sufficient to meet GES.
Transitional licence application: previously exempt abstraction
Determination of the transitional licence application is in accordance with the Water Abstraction Transitional Provisions Regulations 2017 and consideration must be given to the 2017 Government response which sets out the policy of how previously exempt abstractions should be licensed. Within this policy is an emphasis on the regulator applying a ‘light-touch’ approach and to licence based upon historical abstraction quantities; with abstractions only be significantly curtailed or refused to protect the environment from serious damage. NRW considers serious damage to be where an abstraction has / has the potential to impact a designated site or where abstractions are causing severe pressures and flows do not support WFD objectives i.e. a waterbody is failing to meet GES.
As the WFD groundwater body is classified as being at good quantitative status and the flow element of the surface waterbody supports it meeting good status, the Transitional Regulations 2017 and supporting Government response suggests the application of a 75% of Qn99 (A 75% of Qn99 hands-off flow constraint” means a licence condition which provides that the licence holder must cease the abstraction if flow is equal to or falls below 75% of the natural flow that is exceeded 99% of the time) hands off flow (HoF) constraint. However, in line with our regulatory discretion, NRW consider this HoF is not required for the following reasons:
- The abstraction is from groundwater. The status of this waterbody is at Good quantitative status and the abstraction is not considered to be impacting surface water flows.
- There is insufficient evidence in Wales that a prescribed flow of 75% of Qn99 would provide any environmental benefit / be likely to result in any improvement to WFD status.
- Finally, flow gauges are not generally considered to operate reliably at such low flows, and therefore any condition applying this HoF would not be considered legally enforceable.
Therefore abstraction from boreholes ‘A’, ‘B’, ‘C’, ‘D’, ‘E’, ‘F’, ‘G’, ‘H’, ‘I’, ‘J’, ‘K’, ‘L’, ‘M’, ‘N’, and ‘O’ will be licensed as applied for. Conditions will be included within the licence to limit the abstraction quantities for each borehole in line with that historically abstracted. The licence holder will be required to meter, record and report their abstracted quantities for each borehole. In addition the licence shall be time limited in line with future catchment reviews.
NRW has concluded that the abstraction is not likely to have an impact upon WFD status: the transitional licence application quantities being licensed reflect those quantities which have historically been abstracted; and are therefore included within the waterbody WFD assessments. Both the groundwater and the surface waterbodies are considered sufficient in their hydrological regime and support the waterbodies to meet good status. There will be no deterioration in ecological status to the identified waterbodies as a result of the components of this activity proposed to be authorised in the licence. Authorising the historical abstraction is considered to be maintaining the status quo; and will not impede the surface water body from achieving good status in the future.
NRW considers this approach to be in line with the relevant regulations and policy. Licensing the previously exempt abstraction is considered a first step towards sustainable management, through future sustainability review processes.
Standard application: increase of abstraction quantities at borehole 23 and 24
Determination of the application to increase abstraction from boreholes 23 and 24 is considered to be a ‘planned abstraction’ and is excluded from the transitional licence application arrangements. The abstraction must be considered against the relevant Abstraction Licensing Strategy (ALS) which sets out how NRW should manage water resource availability for existing and future abstraction licensing in addition to taking into account environmental needs. The abstraction is located within the Severn Corridor Abstraction Licensing Strategy (ALS) area; a catchment managed by the Environment Agency which also crosses into Wales. In accordance with this strategy surface water available for abstraction is restricted due to the River Severn Regulation Scheme. Groundwater availability is unassessed as the abstraction lies outside of a groundwater management unit, therefore applications for abstractions of groundwater should be assessed on a case by case basis.
The total abstraction quantities, including the proposed increase at boreholes 23 and 24 is relatively small in comparison to flows within the Afon Camlad, representing approximately only 12% of the Q95 (Q95 is the flow of a river which is exceeded on average for 95% of the time i.e. low flow) at the Afon Camlad. Due to the local hydrogeology, borehole recharge is reliant upon rainfall in the catchment. Connectivity between groundwater and surfaces water in the Afon Camlad catchment cannot be ruled out and therefore any restrictions applicable to connected surface waters should apply to this groundwater abstraction. The relevant ‘hands off flow’ restriction at this location for any new abstraction licence is Q60 i.e. when the flow in the river reaches the flow that is exceeded 60 percent of the time (on average) the abstraction should cease. Following consultation with the Environment Agency, author of the Severn Corridor ALS, it has been agreed that a local gauging station should be used to measure river flows to enable the application of a hands off flow. This is because the Bewdley gauging station (located at NGR SO 781 762) as suggested in the ALS is located a considerable distance from the abstraction and therefore not as relevant. It has been agreed that Pont y Gaer gauging station (located at NGR SO 21427 99952) should be the point of reference with regards to application of a hands off flow.
Location of Pont Y Gaer gauge
It should be noted that the Pont Y Gaer gauge station provides river level data only. NRW’s Hydrology have confirmed that a flow value of Q60 is equal to 0.883 metres at this gauge. The following condition is included within the drafted licence, with Point P being borehole 23 and Point Q being borehole 24 and inclusion of the relevant hands off level equal to Q60:
At ‘Point P’ and ‘Point Q’ no abstraction shall take place when the level in the River Camlad as gauged by NRW at its level gauging station at Pont Y Gaer is equal to or less than 0.883 metres as may be notified by NRW. NRW’s said gauging of the level shall be conclusive.
The applicant shall be informed of how to access Pont Y Gaer level data via our River levels, rainfall and sea data service. The inclusion of the hands off level will ensure that during reduced flow periods any surface waters in connectivity to this abstraction are protected. This will ensure that water is available to maintain the ecological habitat and for any downstream water users. Representations submitted as a result of advertisement of the applications have been received from local water users and interested parties. The inclusion of the hands off level condition protects water availability during reduced flow periods.
Impacts to Ecology:
There is no anticipated impact upon ecology as a result of this proposal. The identified designated sites within the locality of the abstraction are at a much greater elevation, therefore connectivity to these sites has been ruled out. As groundwater to surface water connectivity cannot be ruled out, the appropriate flow protection has been applied to boreholes 23 and 24 in line with the local ALS.
Impacts to Fisheries:
Connectivity to surface waters cannot be ruled out; however the groundwater abstraction is not considered to prevent surface waterbody flows to support the waterbody meeting GES. The abstraction authorised from boreholes 23 and 24 is subject to a hands off level to ensure local surface water flows are protected from the increased abstraction. Therefore no impact to fisheries is anticipated.
Impacts to water quality:
There is no anticipated impact upon water quality as a result of this proposal. No licensed discharges have been identified within the vicinity of the proposal.
Statutory Consultation
The statutory water undertaker, Hafren Dyfrdwy Cyfyngedig was consulted on 15 June 2021. No response was received by NRW.
External Consultation
In accordance with its obligations, Natural Resources Wales has consulted the Environment Agency about the proposal on 09/12/2021. A formal response was received on 10/12/2021. The Environment Agency confirmed that they had no objections to the proposal. They also advised that any cases of derogation remaining should be addressed ahead of the proposal licence being issued for the formal variation. Further consultation with the Environment Agency was carried out to confirm the appropriate hands off flow, as discussed above.
External Representations
Three representations were received as a result of advertisement of the application in the County Times newspaper and on NRW’s relevant webpage on two separate occasions. Representations raised the potential of the abstraction boreholes being interlinked and they could affect local water supplies and the Camlad River. In addition the potential of impact to properties built upon clay foundation and subsidence was also noted, as well as effects of climate change and the potential of future impacts.
NRW acknowledge that the abstraction boreholes are likely to be linked; in its assessment upon environmental impact and water availability it has considered both applications together to ensure a robust determination. The total volumes of abstraction across all boreholes has been considered together including the applied for increase at boreholes 23 and 24.
As discussed above, no hands off flow / level restriction is being applied to the quantities of water abstracted during the qualifying period, in accordance with the policy approach for licensing previously exempt abstractions.
The additional abstraction quantities proposed to be abstracted from boreholes 23 and 24 will include a hand off flow protection measure. This is in accordance with the local ALS and will ensure that during lower flow periods the abstraction at these two boreholes should cease, helping to protect local water availability.
The issue of potential impacts of subsidence was considered carefully by NRW’s Geoscience team. It is considered unlikely that the property referred to in the representation would be impacted in this way due to the direction of groundwater movement from the abstraction well-field. It should be noted that the regulations and Government Policy do not put responsibility onto NRW for any loss or damage caused by previously exempt activities. Changes enacted by the Water Act 2003 provide civil remedies for loss or damage due to a water abstraction which is licensed. Any claims are between the abstractor and the affected third party. Due to hydrogeology, depth of boreholes and groundwater movement NRW does not anticipate any such impacts.
The draft abstraction licence includes an end date which is in accordance with the Severn Corridor ALS, this ensures that upon renewal consideration of climate change can be included. It is acknowledge that there is Government intention to withdraw abstraction licence end dates, however these are likely to be replaced by future catchment reviews, ensuring that resilience to climate change will continue to be considered.
Representation was also received stating that there had been inadequate publicity and communications regarding the applications and that the hydrological impact report should be made widely available. The applications have been made with a commercial confidentiality claim, with regards to abstraction volumes at each borehole. The applicant has claimed that allowing this information to be held on our public register could provide a competitor advantage. Therefore documents containing this information have been excluded from our register; however it has been agreed with the applicant that overall abstraction quantities can be published. NRW has advertised both applications in accordance with the relevant regulations in a local newspaper and on its webpage. In addition to this statutory obligation, interested parties have also been directly contacted to make them aware of the advertisement of the applications and the opportunity to make a representation. NRW have considered the representations carefully and have addressed the issues raised within the relevant section of this report and the decision statement which will be shared with interested parties. NRW considers that the applications have been advertised appropriately.
Protected Rights
Following the impact assessment screening, no licensed abstractions have been identified within the vicinity of the proposal. One deregulated abstraction was identified, licence number 18/54/01/0075 located at Hoarstone Farm, to the south of the abstraction well field. Following advertisement of the application no representation from this residence was received. From the water features submitted as part of the hydrogeological impact assessment (HIA), it is understood that no private water supplies within the area are in use, apart from an exempt private abstraction located to the east of the borehole well field. The HIA refers to the owner of this abstraction being in contact with Montgomery Waters and reporting no issues with their supply. It should be noted that in accordance with Section 102(5) of the Water Act 2003, a previously exempt abstraction may be licensed irrespective of any impacts protected rights. On advertisement of the application no representations were received from any occupants within the vicinity of the abstraction wellfield. Two representations were received from properties which NRW considers to be significant distance, and more importantly elevation, from the abstractions. At these locations should private water supplies exist they are highly unlikely to be impacted by the abstractions.
The abstraction has been occurring for many years and in accordance with Government policy a light touch approach to licensing needs to be applied. The appropriate abstraction licensing strategy low flow protection will be included for the proposed increase in abstraction for boreholes 23 and 24 applied for under the standard licence application . NRW are satisfied that the risk to protected rights and lawful users is low risk and therefore the abstraction should be licensed.
Conservation Issues
Natural Resources Wales is of the opinion that the proposal is not likely to have an any impact on sites designated under the Habitats Regulation. There is no conceivable impact on any Natura 2000 site, by virtue of the scale or location or nature of the project.
Three Sites of Special Scientific Interest (SSSI) have been identified as part of the screening of the application. It has been concluded that as these sites are significant distance and elevation from the borehole abstraction field connectivity to these sites can be ruled out, and no impact anticipated.
Conclusion and recommendation
Full and due consideration has been given to any representations made, and due regard has been taken of protected rights and other lawful interests. The principles of sustainable development are embodied in the conditions attached to the licence.
The conditions incorporated on the licence are considered to be necessary and reasonable in the light of the available and presented evidence. The conditions are also considered to be consistent with appropriate standards for enforcement by Natural Resources Wales. The applications have been determined in line with the transitional regulations (2017) and ‘New Authorisations’ policy as well as the Water Resources Act 1991.
Contact the NRW team responsible for this decision
Email: permittingconsultations@naturalresourceswales.gov.uk
Or write to:
Water Resources Permitting Team Leader
Permitting Service
Natural Resources Wales
Cambria House
29 Newport Road
Cardiff
CF24 0TP