Expansion raises question of exploration effects

About 40 test holes being drilled around the country for oil and gas in the year ahead raises the question of the effects of exploration outside the traditional region of Taranaki.

The annual petroleum conference in Wellington was hosted by the Petroleum Exploration and Production Association of New Zealand (Pepanz), a small number of protesters being kept at bay outside the conference venue.

The rules covering offshore oil and gas exploration between 12 nautical miles offshore and the 200 nautical mile limit of the exclusive economic zone are still at a formative stage.

Issues include unhindered industry access to prospective areas, which could be expensive to ensure, and addressing the concerns of communities and environmentalists over transparency and the environment.

Environment Minister Amy Adams is now taking submissions on proposals to be implemented by June next year by the Environmental Protection Authority, which include the highly contentious proposal for exploratory test drilling offshore to be non-notified.

One panel discussion focused on the regions other than Taranaki, including the complex arena of ''politics versus Resource Management Act versus mayoral obligations versus self-interests''.

While Taranaki's regulatory regime for onshore drilling leads the way - more than half the 1050 test holes drilled around the countryare in or off Taranaki - most other authorities have yet to grapple with applications.

For the Taranaki Regional Council ''well integrity'' is the key element, and it has published a draft guide on consents, technical data and scientific investigations, much of which has been peer reviewed.

Environmental Protection Authority chairwoman Kerry Prendergast said while the Government had made it clear it wanted growth in the sector, the EPA was to be ''at arm's length and independent'' and ''cannot be overridden by ministers''. ''We don't hold the hand of the industry; our expectations of the industry are clear. They must be committed to best practice,'' she said.

She was ''acutely aware'' the public and environmentalists expected a ''high level of accountability'' and ''capability and balance'' in administering consent applications offshore.

''It is complex and difficult getting information out in a non-political way,'' Ms Prendergast said in an interview.

Discretionary activities and oil and gas production would have public notification, but Ms Adams would shortly complete and release a decision from the present submission process, governing whether the EPA made exploration consents non-notifiable, Ms Prendergast said.

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