10.5.   The Danish Oil Industries’ Environmental Clean-up Association



On 21 December 1992 the Danish Oil Association - with the mandate of all the oil companies - entered into an agreement with the environmental authorities concerning an environmentally conscious clean- up programme for contaminated sites currently or formerly retailing petrol and petroleum products.

The agreement applies to both "existing" and "newer" contaminated sites (cf. Section 10.1).

Site remediation carried out under this agreement is financed by a DKK 0.04 per litre levy on petrol that is collected by the oil companies - an arrangement that has been approved by the trade restraints authorities, including the EC.

In return the environmental authorities have agreed to adapt their administration to the set-up of the agreement: Instead of issuing injunctions the local environmental authorities submit twice-yearly proposals for the clean-up of the disused petrol stations for which they have responsibility. Similarly, the oil companies can propose the clean-up of functioning stations that they wish to close down in order to render the site saleable. The submitted proposals are prioritized by a council attended by the environmental authorities and the oil branch, with the Danish EPA deciding the final order of priority. The clean-up operations are administered by a secretariat comprised of approx. 5 employees. The secretariat is a private organization that negotiates the contracts with the building contractors, pollution management firms, etc.

Progress resulting from this arrangement is extremely satisfactory. Clean-up of 16 sites was completed in 1993 at an average cost of DKK 1.1 million. Approx. 100 sites were remediated in 1994, and the figure is expected to reach 120-150 sites annually in the following years. At the time the agreement was entered into the motorist organization protested, but it has not done so since. All other parties are particularly satisfied because nearly all the money is used on remediation, and because it can clearly be seen that progress is being made.