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Crown Minerals Act 1991

Permits, access to land, and other matters - Permits, access to land, and title notations - Work programmes in respect of subsequent permits

45: Minister may direct that petroleum be refined and processed in New Zealand, etc

You could also call this:

"The Minister can require petroleum to be refined in New Zealand if it benefits the country."

Illustration for Crown Minerals Act 1991

The Minister can tell you to refine or process petroleum in New Zealand if they think it is in the national interest. This can happen if you have a permit to mine petroleum and the Minister thinks you can make products from it in New Zealand. The Minister will talk to you before making this decision.

If the Minister gives you a direction to refine or process petroleum in New Zealand, they can also stop you from exporting that petroleum or the products made from it. The Minister can make this decision to help New Zealand.

If you do not have a refinery or processing plant in New Zealand, the Minister can tell the owner of one to refine or process the petroleum for you. The Minister will talk to everyone involved before making this decision. You and the owner of the refinery or processing plant will need to agree on the conditions of this arrangement.

If you do not follow the Minister's direction, you can commit an offence against the Crown Minerals Act 1991. The Minister's direction is important and you must follow it, even if you have an agreement with someone else that says something different. An agreement can be a contract, deed, or arrangement.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM246379.

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Part 1BPermits, access to land, and other matters
Permits, access to land, and title notations: Work programmes in respect of subsequent permits

45Minister may direct that petroleum be refined and processed in New Zealand, etc

  1. If, after consultation with the permit holder of a petroleum mining permit and having regard to the national interest, the Minister is satisfied that products are able to be manufactured in New Zealand by or on behalf of the permit holder from petroleum produced from land to which the permit relates, the Minister may direct that the permit holder refine or process (or cause to be refined or processed) in New Zealand so much of the petroleum as may be required for the manufacture of those products.

  2. Where a direction is given under subsection (1), the Minister may give a further direction prohibiting the export from New Zealand of any petroleum directed to be refined or processed and of all or any of the products so manufactured from any such petroleum.

  3. Where a permit holder is directed under subsection (1) to refine or process (or cause to be refined or processed) in New Zealand any petroleum and the permit holder does not have facilities for refining or processing such petroleum in New Zealand, the Minister, after consultation with all interested parties, may direct the owner of any refinery or processing plant capable of refining or processing the petroleum, to refine or process the petroleum on behalf of the permit holder on such conditions as may be agreed upon between the permit holder and the owner of the refinery or processing plant or, failing agreement, as may be determined by the Minister.

  4. The owner of or any other person lawfully using a refinery or processing plant may at any time apply to the Minister for a variation in the conditions of any direction given under subsection (3) and the Minister may make such variations as may be agreed upon between the owner and all other persons lawfully using the refinery or processing plant or, failing agreement, as may be determined by the Minister.

  5. Any person who wilfully fails to comply with any direction of the Minister under this section commits an offence against this Act and, if he or she is a permit holder, shall be deemed to have failed to comply with the conditions of his or her permit.

  6. No person shall be precluded by any agreement from doing or refraining from doing such acts as may be necessary to comply with a direction given under this section; and every person who does or refrains from doing any such act shall not thereby suffer, under any agreement, any liability of any kind whatsoever.

  7. In this section, the term agreement includes a contract, deed, and arrangement.