Joe Dearden looks at the Coal Authority's new and improved mining report service

The Coal Authority - in response to customer feedback and working closely with the Law Society - will launch an enhanced mining report service from 30 September 2003.

The service includes: insurance cover within all residential property mining reports, an interpretive report service, a revised fee structure, and the development and launch of the next generation computerised mining reports and surface damage system (MRSDS2).

All Coal Authority residential mining reports issued after 30 September will include insurance cover.

No separate application is necessary to enjoy the benefits of this insurance, as it is included within the mining report fee.

The insurance will be provided to owners of property to mitigate against any loss of value - up to a maximum of 20,000 - attributable to any material change of the mining information in a subsequent residential mining report from that contained in the report to which the insurance attaches.

Similar cover will apply to residential search-not-required certificates acquired with the benefit of insurance.

Practitioners are advised to file the report and insurance certificate with the property title deeds.

The benefit to practitioners is the elimination to a large extent of the issue as to how long a mining report remains valid.

It will also provide property owners, solicitors, conveyancers, lenders and insurers with peace of mind against the possibility of changes on the coal mining database subsequently resulting in a diminution in property value.

In particular, the policy covers against any adverse matter that appears in a mining report that was not revealed in the original report to which the insurance attached.

This relates to matters arising from a change of information on the coal mining database (whether new or amended) at any time during the insured's ownership of the property.

The insurance cover takes account of circumstances where the original report was obtained by the seller of the property as part of any proposed home information pack or where the property is being sold by way of auction.

Cover is also provided where a coal mining report is obtained in the event of a remortgage of the property or where the owner simply elects to obtain a coal mining report.

The insurance does not cover non-residential property.

The insurance has been designed and arranged by Tyser (UK), part of Tyser Group (Lloyd's insurance brokers, established 1820), and is underwritten by Groupama Insurance Company via Legal & Contingency.

Also on 30 September, the authority will introduce an interpretive report service.

These reports provide more detailed analysis and advice about mine entries.

This will include a risk assessment as to whether, in the opinion of the Coal Authority, the main building of the property is inside or outside the possible zone of ground movement from any reported mine entry.

In carrying out this risk assessment, the authority will take account of the geology beneath the property (based on additional data provided by the British Geological Survey where the authority's data is incomplete).

It will also take account of the possible difference between the actual and plotted position of the mine entry, its source, likely size and any treatment works that the authority is aware have been carried out.

Opinion will also be given where the main building is considered clear of the zone of ground movement but the possibility of coal mining subsidence damage to the garden areas or other buildings cannot be discounted.

Where property lies inside the zone of influence of a mine entry, the authority will provide comprehensive advice as to the rights of property owners and the remedial obligations of the authority or licensed operators.

The interpretive report service has been created to help resolve the difficulties being experienced in some parts of the country where properties may have lost value as a consequence of a mining report disclosing the presence of disused mine entries.

The interpretive report is priced at 40 (plus VAT) with the aim being to return reports within 48 hours of receipt of request.

The service will be available as a value-added optional extra for any customer receiving a residential coal mining report that discloses a mine entry.

In these circumstances, the initial coal mining report will advise of the availability and cost of the interpretive report and the procedure for ordering one.

As a non-departmental government body, the Coal Authority runs the mining reports service on a cost recovery basis, consistent with the requirements of the Treasury's fees and charges guide.

Following consultation with the Law Society, the Coal Authority is changing its fee rate structure for coal mining reports from 30 September 2003.

The full charging structure is illustrated in table 1 (see [2003] Gazette, 25 September, 45).

From 30 September, the authority will also introduce a volume-related retrospective discount to high volume users of the authority's electronic services to reflect the cost saving benefits associated with managing these accounts.

The payments will be made to each individual business unit/account customer that meets the criteria set out in table 2 (see [2003] Gazette, 25 September, 45) and will be paid retrospectively following receipt of the monthly invoiced payment to which the discount relates.

- For additional information, contact the Coal Authority, tel: 0845 762 6848 or e-mail: miningreports@coal.gov.uk.

Joe Dearden is the commercial manager at the Coal Authority