Regulator’s Update – March 2024

Kia ora,

Welcome to this issue of the Regulator’s Update – a newsletter for permit holders and people interested in the work of New Zealand Petroleum and Minerals (NZP&M).

In this issue

Snapshot of minerals permit applications
New specific royalty rates
Minerals permitting improvement programme underway
Have you submitted your annual summary report?
Tier 1 permit holders and iwi engagement reports
Block Offer 2020 results

Snapshot of minerals permit applications

We have published snapshots of the minerals permit applications statistics for the financial year ending June 2023 and the final quarter of 2023, October to December. These snapshots provide insights into the number of minerals permit applications we received and the decisions made.

Snapshot of minerals permit applications – October to end of December

Snapshot of minerals permit applications in 2023

New specific royalty rates

To maintain the value of the return to the Crown from the extraction of Crown owned minerals, royalty rates listed in the Minerals Programme for Minerals (excluding Petroleum) 2008 have been increased.

The increase reflects movement in the Producer Price Index and came into effect on 1 January 2024.

We have directly contacted permit holders affected by these new royalty rates.

Find out more about the new specific royalty rates

The equivalent rates under Schedule 2 of the Crown Minerals (Royalties for Minerals Other than Petroleum) Regulations 2013 will be updated by the end of April.

Minerals permitting improvement programme underway

We are currently implementing an ongoing improvements programme for our minerals permitting systems and processes to ensure we are an effective, consistent, and timely regulator.

We have implemented changes to improve our efficiencies in managing the permit application queue.

These improvements are already having a positive impact. As at mid-December 2023, there were 265 applications in the minerals queue, down from the peak of 305 in mid-July 2022. This reduction is despite sustained high numbers of applications being received during this period.

We have heard feedback from the sector that our correspondence, documents, and website can be confusing and lack plain English. We are currently reviewing our letters with a view to simplify language and be clearer about why we are writing and any action we require. You will begin to see these changes implemented progressively over this year.

We are rolling out an improvement programme to ensure minerals permit applicants have the resources they need to produce quality applications and meet their legislative obligations.

An improved minerals permitting system means an improved experience and more certainty for planning work programmes. It also means a better managed mineral estate on behalf of New Zealand.

Minerals permitting improvement programme

Have you submitted your annual summary report?

Permit holders have until Tuesday 2 April 2024 to submit their 2023 annual summary reports to New Zealand Petroleum and Minerals.

If you have already submitted your annual summary report for 2023, you can ignore this reminder.

The reports are a legal requirement for every permit that was active in the previous calendar year, even if no activity took place, and provides government with information on how a permit is being used.

The easiest way to submit your report is through our online permitting system, which guides users through the information required for their specific permit type.

Detailed guidance on submitting annual summary reports can be found at:
www.nzpam.govt.nz/annual-reports/

NZP&M staff will be visiting the West Coast later in the year to discuss any issues or concerns in-person with permit holders. However, if there are any issues or concerns relating to annual summary reports or applications please get in touch with us at nzpam@mbie.govt.nz.

Tier 1 permit holders and iwi engagement reports

A reminder that, for Tier 1 permit holders, new expectations for iwi and hapū engagement (enacted through the Crown Minerals Amendment Act 2023) are in effect.

As part of annual reporting to NZP&M, Tier 1 permit holders are required to:

share their draft iwi engagement report with iwi or hapū whose rohe includes some or all of a permit area or who otherwise may be directly affected by the permit,
give those iwi and hapū a reasonable opportunity to review and comment on the draft report, and
include any comments provided by iwi and hapū in the final report submitted to NZP&M.

As the regulator, NZP&M will monitor compliance with these new obligations.

Petroleum Exploration – Block Offer 2020 results

One onshore petroleum exploration permit has been granted through the Block Offer 2020 competitive tender process.

The successful bidder is Greymouth Gas Turangi Limited (Greymouth).

Greymouth was granted Petroleum Exploration Permit 61038 for an area covering 61.9 km2, north-west of Stratford in onshore Taranaki.