Update on Minerals reforms – spotlight on Petroleum

Proposed New Petroleum Exploration and Mining Law to be released in August

In June this year, the Minister for the Environment announced there would be new laws to govern activities (such as petroleum exploration and mining) within New Zealand's Exclusive Economic Zone (EEZ) and Extended Continental Shelf (ECS). The EEZ is the area of sea and seabed that extends from 12 to 200 nautical miles offshore. The ECS is where New Zealand’s continental shelf extends beyond the 200 nautical mile EEZ.

The Exclusive Economic Zone and Extended Continental Shelf (Environmental Effects) Bill (the Bill) is expected to be introduced into the House during the week of 2 August 2011. The Bill will provide for:

the Environmental Protection Authority to be responsible for consenting, monitoring and enforcement;
activities to be classified as either permitted, discretionary (requiring a consent) or prohibited
public notification and consultation required for all regulations and consents;
an environmental impact assessment on all consents;
a general duty to avoid, remedy or mitigate adverse environmental effects;
a joint application process where activities span the EEZ and territorial sea; and
enforcement penalties aligned with the Maritime Transport and Resource Management Acts.

There will be an opportunity for submissions on the Bill at the Select Committee stage once it has been introduced to the House and referred to the Local Government and Environment Select Committee. We will provide another update at that time.

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