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Crown Minerals Act 1991

Permits, access to land, and other matters - Decommissioning of petroleum infrastructure and wells - Decommissioning obligations for petroleum infrastructure

89N: When decommissioning obligations of persons under section 89J or 89K arise

You could also call this:

"When you must clean up after using petroleum infrastructure"

Illustration for Crown Minerals Act 1991

If you have to decommission petroleum infrastructure under section 89J or 89K, you must do it before certain dates. You have to finish decommissioning before the permit or licence expires, or before you surrender or relinquish the permit or licence. If production stops, you must finish decommissioning by a date agreed with the Minister or by a date the Minister sets.

If your permit or licence is revoked, you still have to decommission the infrastructure by a time agreed with the Minister. Your obligations to decommission do not stop even if your permit or licence has expired or been surrendered or revoked. You can still carry out your decommissioning obligations even if your permit or licence is no longer valid.

You will be in breach of your obligations if you stop production and do not complete decommissioning milestones on time. The Minister can specify the dates for completing these milestones. If you do not meet these dates, you can ask the Minister for an extension.

The chief executive will give you a certificate when your decommissioning obligations start. This certificate is proof of when your obligations began, unless someone can prove otherwise. You should get this certificate as soon as possible after your obligations start.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS622351.

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89M: Extent of liability of former permit and licence holders under sections 89J(2) and 89K(2), or

"What former permit and licence holders are responsible for under the Crown Minerals Act"

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89O: Criteria for agreeing or setting time frames for decommissioning, or

"How the Minister decides when to stop using a mining site and clean it up"

Part 1BPermits, access to land, and other matters
Decommissioning of petroleum infrastructure and wells: Decommissioning obligations for petroleum infrastructure

89NWhen decommissioning obligations of persons under section 89J or 89K arise

  1. Any person liable to carry out, or meet the costs of, decommissioning petroleum infrastructure, or both, under section 89J or 89K, must carry out their obligations before the earliest of the following:

  2. in a case where production permanently ceases in the area of the current permit or licence before the permit or licence expires,—
    1. by a date or dates agreed with the Minister for the completion of the decommissioning and the completion of earlier milestones in the decommissioning process; or
      1. if there is no such agreed date or dates, by a date that is 2 years before the expiry of the current licence or permit, by a date or dates specified by the Minister by notice in writing to the person:
      2. the expiry or surrender of the current permit or licence:
        1. in a case where only part of the current permit area or licence area is to be relinquished or surrendered, before the Minister approves the partial relinquishment or surrender of the permit under section 35C or 40 of this Act or the partial surrender of a licence under the Petroleum Act 1937 (as preserved under clause 12(a) of Schedule 1 of this Act):

          1. However, if a permit or licence is revoked, the person who held the permit or licence immediately before it was revoked must carry out their decommissioning obligations under this subpart by a time agreed with, or specified by, the Minister.

          2. To avoid doubt,—

          3. the obligations imposed by subsections (1) and (2) continue in force even if—
            1. the relevant permit or licence has expired or has been surrendered or revoked:
              1. the relevant person has ceased to be a permit or licence holder or the holder of any participating interest in a licence or permit; and
              2. a person may carry out their obligations under subsections (1) and (2) even if their permit or licence has expired, or has been revoked, or, as the case requires, relinquished or surrendered.

                1. A permit holder or licence holder also acts in breach of their decommissioning obligations if they—

                2. give notice under section 42C(3) (notice of cessation of production); but
                  1. fail within a period after that notice agreed with the Minister, or in the event that there is no agreement, within a period after that notice specified by the Minister, to complete milestones agreed or specified under subsection (1)(a) to decommission the petroleum infrastructure for which they will be responsible for decommissioning, or fail to obtain an extension to that date or those dates from the Minister.

                    1. A certificate issued by the chief executive as to the date when decommissioning obligations took effect under this section—

                    2. must be given to the person who has those obligations as soon as practicable after they take effect; and
                      1. is conclusive evidence in any proceedings under this Act, in the absence of proof to the contrary, of when those obligations took effect.

                        Notes
                        • Section 89N: inserted, on , by section 18 of the Crown Minerals (Decommissioning and Other Matters) Amendment Act 2021 (2021 No 53).
                        • Section 89N heading: amended, on , by section 47(1) of the Crown Minerals Amendment Act 2025 (2025 No 40).
                        • Section 89N(1): amended, on , by section 47(2) of the Crown Minerals Amendment Act 2025 (2025 No 40).