Management of oil and gas activities under the RMA
A presentation on the legal provisions which manage oil and gas activities within New Zealand, given by EDS Lawter Nicola de Wit at the Gisborne Community Workshop held on 13 April 2012
Allocation Minerals: Crown Minerals Act (Land and Territorial Sea) Continental Shelf Act (EEZ and CS) Petroleum: Crown Minerals Act Environmental Management Land and Territorial Sea: RMA Exclusive Economic Zone: EEZCS(EE) Act Other regulation e.g. Health and Safety
property of the Crown • Regulates allocation of Crown-owned minerals • Regulates access to land • Minister of Energy and Resources (currently Simon Bridges) • Crown Minerals (Permitting and Crown Land) Bill www.eds.org.nz 3
(40yrs) • Any person may apply for a permit. • Minister can grant permits on any conditions he or she thinks fit, but: • decision must be consistent with the relevant minerals programme (s 22) • Must be satisfied the applicant will comply with the permit (s27) • Right to subsequent permit if results achieved • Minister has power to revoke permit for contravention of Act, regulations or permit www.eds.org.nz 5
an access agreement from the land owner and occupier, unless: • minimum impact activity or • underground mining that will not damage or effect the surface • For petroleum, if the landowner or occupier will not enter into an access arrangement, there is a process leading to mandatory arbitration. • The arbitrator will determine an access arrangement. Owners and occupiers are entitled to compensation. Crown land: • The appropriate Minister may enter into an access arrangement. • The Minister of Conservation cannot enter into an access arrangement for land listed in Schedule 4. www.eds.org.nz 6
Bill: • A purpose: “to promote [mining] for the benefit of New Zealand, by providing for [efficient allocation, effective management and regulation, good industry practice, and a fair financial return]” • Strengthening health and safety requirements • Strengthening schedule 4 • Joint decision-making for access for Crown land • New consideration: “the direct net economic and other benefit”. • Notification of access applications for “significant” mining activities • Changes to how new conservation areas (such as reserves) are added • Increases to the penalties for offences www.eds.org.nz 7
oil and gas activities. In order to determine whether or not an oil and gas activity requires resource consent it is necessary to: • Understand the environmental effects of the activity • Analyse the relevant planning documents www.eds.org.nz 8
person may use land in a manner that contravenes a national environmental standard, regional rule or district rule. Section 15: No person may discharge any contaminant into water, onto land, or into air, unless allowed by a national environmental standard, regional rule or resource consent. Similar for: • Structures in the coastal marine area and beds of lakes and rivers • Disturbing the coastal marine area and beds of lakes and rivers • Taking or using water www.eds.org.nz 9
Regional Land and District Plan (19.18): Permitted activities: • Prospecting in Rural and Industrial Zones – comply with conditions. Discretionary activities: • Prospecting in Rural and Industrial Zones – don’t comply with conditions. • Prospecting in any other Zones • Exploration well drilling in the Rural and Industrial Zones • Production in the Rural and Industrial Zones www.eds.org.nz 10
also be required for water takes and discharges to land, water or air. The Gisborne Transitional Regional Plan regulates water takes and use. The Gisborne Regional Discharges Plan regulates discharges to land and water. The following are discretionary activities: • The point source discharge of liquids • The discharge of any solid waste materials or contaminants The Gisborne Regional Air Quality Management Plan regulates discharges to air. The following is a discretionary activity: • The discharge of contaminants to air from “extraction and flaring of oil” www.eds.org.nz 11
receive: • No notification • Limited notification • Public notification Limited Notification: • Notification to affected persons. • Affected person = the activity’s adverse effects on the person are not less than minor. www.eds.org.nz 12
application must be publicly notified if: • the activity will have adverse effects on the environment which are more than minor, • the applicant requests public notification • a rule in a plan requires public notification “Minor”? • The assessment is one of fact and degree. • Lower end of the scale: major – moderate – minor. • More than negligible. The consent authority usually has a discretion to notify any application. www.eds.org.nz 13
a decision the consent authority must have regard to: • The purpose and principles of the RMA • Effects on the environment of the activity • Any relevant planning documents • Any other matter which is relevant and reasonably necessary to determine the application Discharge permits - the consent authority must not have regard to the effects of a discharge of greenhouse gases on climate change. Final step – overall broad judgment – will the activity promote sustainable management of natural and physical resources? www.eds.org.nz 14
all required consents to be identified from the outset, applied for contemporaneously and considered together. Section 91(1): A consent authority may determine not to proceed with the notification or hearing of an application for a resource consent if it considers on reasonable grounds that— (a) other resource consents under this Act will also be required in respect of the proposal to which the application relates; and (b) it is appropriate, for the purpose of better understanding the nature of the proposal, that applications for any 1 or more of those other resource consents be made before proceeding further. www.eds.org.nz 15
Shelf (Environmental Effects) Act 2012 will regulate the environmental effects of oil and gas activities beyond the territorial sea once regulations are in place or no later than 1 July 2014. • Until the EEZ Act comes into force, voluntary interim measures have been established. The voluntary regime asks industry to prepare an impact assessment and provide it to the EPA for review. www.eds.org.nz 16
of natural resources” • Establishes a marine consenting regime • Regulations will classify activities as permitted, discretionary or prohibited • Discretionary activities will require a marine consent • All marine consent applications will be publicly notified • Appeals on points of law only • Transitional provisions for existing activities and planned petroleum activities www.eds.org.nz 17
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