This Mining Update provides an update on recent developments in the area.
In this Edition
Post-Election Update
Much of the post-election policy discussion has focussed on policy decisions addressed in the confidence and supply agreements the National Party has entered into with United Future and Act. While mining specific policies were not covered, it will be interesting to see how the Government implements the National Party's pre-election policies which may affect mining operators. more
Fracking gets a clean bill of health
The Taranaki Regional Council recently released a Risk Assessment report on Hydraulic Fracturing or "fracking" in the Taranaki region. more
EEZ Submissions
An update on submissions on the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill. more
Much of the post-election policy discussion has focussed on policy decisions addressed in the confidence and supply agreements the National Party has entered into with United Future and Act. While mining specific policies were not covered, it will be interesting to see how the Government implements the National Party's pre-election policies which may affect mining operators. Relevant policies or proposals include:
- Completing a review of the Crown Minerals Act - The Government stated the review would focus on updating and aligning the Act with the Government's economic agenda. An initial discussion document was released in August 2010, which sought feedback on, among other things, a proposal to add a general power for the Minister of Energy and Resources to reserve particular minerals or land from allocation.
- Introducing a new competitive system for processing oil and gas exploration permits - This approach aims to give the Government more control over safety and environmental practices, allow permits to be processed more efficiently, and allow community groups to take part in more structured dialogue in areas open to exploration. By focusing on areas of the greatest potential, emphasising safety and allowing transparent engagement with communities, industry and iwi, the Government aims to unlock our under-explored petroleum estate, which could potentially generate billions and create high value jobs.
- Examining ways to make it easier for exploration companies to establish operations in New Zealand - An example given is extending the 183-day tax exemption for seismic and exploration rigs, therefore increasing the exploration possible for non-resident rig operators.
- Introducing the EEZ legislation and introducing regulations to support the EEZ legislation - This would place the Environmental Protection Authority in charge of consenting, monitoring and enforcing activities in the EEZ and Continental Shelf.
- Further reforms of the RMA - In particular, the proposed streamlining of the consenting process for small-medium projects will assist mining projects.
The recent announcement of new Ministerial Portfolios has resulted in a new Minister of Energy and Resources. Phil Heatley takes over the role, having previously been Minister of Fisheries and Aquaculture.
Fracking gets a clean bill of health
The Taranaki Regional Council recently released a Risk Assessment report on Hydraulic Fracturing or "fracking" in the Taranaki region.
The report was based on data provided by oil and gas companies who undertook fracking in the region between 2000 and mid-2011. There was no evidence of environmental effects related to fracking found during that time.
The report concluded that if fracking is carried out properly, although not impossible, there is little risk that contaminants would reach overlying freshwater aquifers in the region. The report noted that the level of risk is greater when fracking is carried out at relatively shallow depths below aquifers and in such cases, more stringent regulatory oversight would be called for.
The Council currently requires that resource consents are obtained for all subsurface fracturing discharges to land in the Taranaki region.
The report notes that regulation of fracking will be specifically considered in a review of the Regional Fresh Water Plan which is currently underway. It will be interesting to see how this (and other) regions regulate fracking moving forward.
A final date has now been set for submissions on the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill. Any submissions are required to be sent to the Local Government and Environmental Select Committee by 27 January 2012.
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