Exploration consent move

Resource consents will not have  to be publicly notified for seismic surveying, such as that done by  Polarcus Alima,  pictured here returning to Dunedin, past Taiaroa Head, in December 2011 after undertaking survey work for Shell in the Great South Basin
Resource consents will not have to be publicly notified for seismic surveying, such as that done by Polarcus Alima, pictured here returning to Dunedin, past Taiaroa Head, in December 2011 after undertaking survey work for Shell in the Great South Basin. Photo by Stephen Jaquiery.
Offshore oil and gas exploration consents will not need to be publicly notified, in another move by the Government to entice major oil companies to New Zealand's exclusive economic zone (EEZ).

Excluding public submissions on consents could save oil companies millions of dollars when planning exploration campaigns, which often cost more than $100 million to undertake.

Last month, in a separate law change which was passed 61 votes to 60, the Government introduced sweeping penalties for protesters and organisations interfering with exploration vessels or mining structures, with respective fines of up to $50,000 and $100,000.

Environment Minister Amy Adams then flagged that the EEZ Act, coming into force in June, would include regulations permitting ''lower-impact activities'', which would be done through an amendment to the EEZ Act through a supplementary order paper to the Marine Legislation Bill, the paper being open to consultation.

Chapman Tripp partner Catherine Somerville said the Government was amending the exclusive economic zone and Continental Shelf (Environmental Effects) Act 2012 to ''encourage exploration activities''.

''The lack of opportunity for public submissions will save permit applicants significant time and costs, but will, no doubt, be opposed by environmental groups,'' Ms Somerville said.

Green Party spokesman on energy and offshore mining Gareth Hughes said, when contacted, and said the proposed changes implied an ''open season'' was being offered by the Government to offshore drilling and mining, with a subsequent ''loss of transparency'' in the process.

New Zealand's EEZ area was the fifth-largest in the world, he noted the proposed regulations would allow for drilling within 99.6% of that area. Only 0.4% was deemed protected waters.

Ms Somerville said while the Government wanted to encourage exploration, it also wanted to be seen to ensure the correct levels of oversight and discretion were in place. The ''solution'' was that the consent applications would not be publicly notified.

However, Mr Hughes highlighted the exploration drilling was the ''highest-risk'' factor in the chain of deep-sea exploration.

''Again, the Government is pro-industry oil agenda and bending over backwards for them,'' he said.

The Government proposals cover exploration consents, not mineral or petroleum production, and the latter would require public notification. The Government proposals include conditions, such as oversight by the Environmental Protection Agency and Niwa analysis of the likely environmental impact of the ''lower-impact activities'', Ms Adams said earlier.

The legislation would be brought into force by making regulations which permitted lower-impact activities, subject to conditions and based on Niwa analysis of their likely environmental impact, Ms Adams said.

The responsibility for the regulation of discharge and dumping activities in the EEZ is being transferred from the Maritime Transport Act 1994 to the EEZ Act, through the Marine Legislation Bill, put before Parliament last month.

Once formal consultation on discharge and dumping and petroleum exploration drilling was classified within the new category, if confirmed, the regulations classifying those activities could be in place by October, Ms Adams said.

''I am advised that petroleum exploration drilling generally takes place over a period of about six weeks, so a simplified process that retains full regulatory discretion appears to be an appropriate response,'' Ms Adams sai.

 


Draft regulations

Draft regulations of permitted activities not requiring public notification:

• Seismic surveying.

• Marine scientific research.

• Submarine cabling.

• Prospecting for petroleum and minerals.

• Exploration for minerals.

Source: Chapman Tripp


 

simon.hartley@odt.co.nz

 

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