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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

46: Unit development

You could also call this:

"Working together to plan mineral development"

Illustration for Crown Minerals Act 1991

The Minister can ask you to work together with other permit holders to make a plan for developing a mineral deposit. This plan is called a development scheme and it helps you work together to get the most out of the mineral deposit. The Minister will tell you what land the plan is for and when it needs to be finished.

If the Minister does not like your plan, they will tell you why and ask you to make a new one. You will have to make changes and send the new plan to the Minister for approval. If you do not send a plan or the Minister does not like your new plan, they will make a plan for you.

The Minister can also ask you to stop or slow down production from a well while you are making the plan. This is to make sure you get the most out of the mineral deposit. Before the Minister asks you to do this, they will talk to all the relevant permit holders.

The Minister can charge you for the costs of making or approving the plan, including getting advice from an expert. They can decide how to split the costs between you and the other permit holders. You can find more information about the Crown Minerals Amendment Act 2003 and the Crown Minerals Amendment Act 2013 on the New Zealand legislation website.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM246381.

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"Having a permit doesn't mean you can enter private land without the owner's permission."

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

46Unit development

  1. If the Minister is satisfied that—

  2. the land to which any 2 or more permits or existing privileges relate or any part thereof forms part of a single deposit of a mineral (in this section referred to as a mineral deposit); and
    1. in order to secure the maximum ultimate recovery of the mineral, the mineral deposit should be worked as a unit in co-operation by all relevant permit or existing privilege holders whose permits or existing privileges comprise any part thereof—
        1. the Minister may, on the request of 1 or more of the permit or existing privilege holders or of his or her own accord, by notice in writing require all the permit or existing privilege holders to co-operate in the preparation of a scheme (in this section referred to as a development scheme) for the working and development of the mineral deposit as a unit by the permit or existing privilege holders in co-operation and to submit the scheme jointly for the approval of the Minister.

      1. The notice shall specify the land in respect of which, and the period within which, the Minister requires a development scheme to be submitted.

      2. If the Minister withholds his or her approval of a development scheme under subsection (1), the Minister shall notify the permit or existing privilege holders that he or she has withheld approval and of the reasons for doing so, and shall invite the permit or existing privilege holders to submit a modified development scheme for the Minister's approval within a reasonable period, as specified by the Minister in the notice given under this subsection.

      3. If a development scheme or modified development scheme is not submitted to the Minister within the period specified in the relevant notice, or if a modified development scheme submitted under this section is not approved by the Minister, the Minister shall prepare a development scheme that in the opinion of the Minister is fair and equitable to all the permit or existing privilege holders, and the permit or existing privilege holders shall perform and observe the conditions of that scheme.

      4. The Minister may recover from permit or existing privilege holders any costs incurred by him or her in approving or preparing a development scheme under this section, including the costs of any advice received from an independent expert, and may apportion those costs between the holders as he or she thinks fit.

      5. Subsection (7) applies if a development scheme is required under subsection (1) for a petroleum mineral deposit.

      6. The Minister may, by notice in writing, require 1 or more permit holders or existing privilege holders to suspend or reduce production from any well specified in the notice during the preparation of the development scheme if—

      7. the Minister is satisfied that the suspension or reduction is necessary to secure the maximum ultimate recovery of the petroleum mineral deposit; and
        1. before issuing the notice, he or she has consulted all relevant permit or existing privilege holders.

          1. In subsection (7), permit holder or existing privilege holder means a permit holder or existing privilege holder whose permit or existing privilege comprises any part of the land to which the petroleum mineral deposit relates.

          Notes
          • Section 46(1): substituted, on , by section 9(1) of the Crown Minerals Amendment Act 1993 (1993 No 139).
          • Section 46(1): amended, on , by section 9(1)(d) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(1): amended, on , by section 9(1)(e) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(1): amended, on , by section 9(1)(f) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(1)(a): amended, on , by section 9(1)(a) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(1)(b): amended, on , by section 37(1) of the Crown Minerals Amendment Act 2013 (2013 No 14).
          • Section 46(1)(b): amended, on , by section 9(1)(b) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(1)(b): amended, on , by section 9(1)(c) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(3): amended, on , by section 9(2) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(4): amended, on , by section 64 of the Crown Minerals Amendment Act 2013 (2013 No 14).
          • Section 46(4): amended, on , by section 9(3) of the Crown Minerals Amendment Act 2003 (2003 No 45).
          • Section 46(5): replaced, on , by section 37(2) of the Crown Minerals Amendment Act 2013 (2013 No 14).
          • Section 46(6): inserted, on , by section 37(2) of the Crown Minerals Amendment Act 2013 (2013 No 14).
          • Section 46(7): inserted, on , by section 37(2) of the Crown Minerals Amendment Act 2013 (2013 No 14).
          • Section 46(8): inserted, on , by section 37(2) of the Crown Minerals Amendment Act 2013 (2013 No 14).