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Crown Minerals Act 1991
Permits, access to land, and other matters
Decommissioning of petroleum infrastructure and wells
Decommissioning obligations in relation to wells
89U: Extent of liability of former permit and licence holders under sections 89R and 89S

1Title and commencement 1APurpose 1BProvisions affecting application of Act

Part 1:
Preliminary provisions

Part 1A:
Minerals programmes

13Application of minerals programmes 14Contents of minerals programmes 15Minister must prepare draft minerals programmes in certain situations 16Changes to minerals programmes 17Public notice 18Submissions 19Issue of minerals programmes 20Notification of minerals programmes 21Minister may defer consideration of application for permit 22Minister and chief executive must act in accordance with minerals programmes

Part 1B:
Permits, access to land, and other matters

Permits, access to land, and title notations

23Purpose of permits 23AApplication for permits 24Allocation by public tender 25Grant of permit 25ARecord of permit 26Priority of applications if more than 1 made and no minerals programme 27Permit holder must have permit operator 28Restriction on granting of prospecting permits 28ADeclaration in relation to specified land for specified period 29Minister may require survey to be done

Process for dealing with applications for permits

29AProcess for considering application for Tier 1 or Tier 2 permit 29ABProcess for considering application for Tier 3 permit 29BProcess for considering application under public tender for conditional exploration permit 29CMinister’s functions in relation to feedback from iwi or hapū when considering application

Conditions of permits

30Rights to prospect, explore, mine 31Right of permit holder to minerals 32Right of permit holder to subsequent permits 33Permit holder responsibilities 33AExercise of permit conditional on authorisation 33BHealth and Safety regulator to notify chief executive of breaches of legislation 33CIwi engagement reports 33CAAnnual review meeting about iwi engagement reports 33DAnnual review meeting for holders of Tier 1 permits 34Financial return to the Crown 35Duration of permit 35AAppraisal extension of exploration permits 35BConditions imposing relinquishment obligation: prospecting permits 35CConditions imposing relinquishment obligation: exploration permits

Changes to permits

36Change to permit 36ALimits on change to Tier 3 permit 37Process for Minister's proposal to change work programme for petroleum mining permit 38Determination by independent expert 39Revocation or transfer of permit 40Surrender of permit 41Transfer of interest in permit 41AAInterpretation for change of control and transfer provisions 41ABChange of control: certain permit operators and permit and licence participants 41ACApplication for consent for change of control 41ADMinister may require information or documents to be supplied 41AEWhen Minister may consent to change of control 41AFRevocation of permit if change of control made without consent 41AGNotification of change of control: certain permit participants 41ANotification of change of control: guarantors 41BDealings 41CChange of permit operator 41DGeneral provisions relating to transfers, dealings, and changes of permit operator

Outgoing guarantees: permits and licences for petroleum

41EApplication of outgoing guarantee provisions: permits and licences for petroleum 41FMinisters must consider outgoing guarantee: permits and licences for petroleum 41GConsiderations for deciding on outgoing guarantee 41HInformation for deciding on outgoing guarantee 41IRequirement to provide outgoing guarantee

Surveys

42Minister may require survey at any time 42AAuthorisation of geophysical surveys on adjacent land

Field development plans in respect of petroleum mining permits and licences

42BField development plans to be submitted to chief executive

Notice of expected cessation and notice of cessation of petroleum fields

42CNotice of expected cessation and notice of cessation

Work programmes in respect of subsequent permits

43Work programmes to be approved by Minister 44Duty of Minister withholding approval of work programme 45Minister may direct that petroleum be refined and processed in New Zealand, etc 46Unit development

Access to land

47Permit does not give right of access to land 48Cancellation of any Crown right of entry that is reserved by statute

Access to land for minimum impact activity

49Entry on land for minimum impact activity 50Entry on special classes of land for minimum impact activity 50ARestricted access to Taranaki conservation land 51Entry on Maori land for minimum impact activity 52Permit holder may obtain order

Access to land other than for minimum impact activity

53Access to land for petroleum 54Access to land for minerals other than petroleum 54AAccess to Schedule 4 land in common marine and coastal area 55Restrictions on determination of access arrangements by arbitrators 56Provisions relating to access arrangements 57Meaning of entry on land 58Disputes as to classification of land and activities 59Notice of request for grant of right of access 60Grant of right of access by access arrangement 61Access arrangements in respect of Crown land and land in common marine and coastal area 61AAccess to Crown land where mineral not property of the Crown 61BAccess arrangements in respect of Crown land where mineral not property of the Crown 61CPublic notification of certain access arrangements 62Prohibition of access in respect of Crown land 63Request for appointment of arbitrator 64Appointment of arbitrator in default of agreement 65Fixing time and place for conducting hearing 66Declaration by Order in Council that access arrangement may be determined by arbitrator 67Right of appearance 68Conciliation 69Procedure 70Determination of access arrangement, etc 71Effect of access arrangement, etc 72Variation of access arrangements 73Costs 74Withdrawal from arbitration 75Liability 76Compensation for owners and occupiers 77Compliance with access conditions 78Absentee or unknown owner of land 79Absentee or unknown owner of minerals 80Access arrangements in respect of Maori land

Notation on land titles

81Lodging and notation of permits 82Lodging of certificates of extension 83Notation of access rights on land titles 84Entry of permit and access particulars acts as notice only 85Land Transfer Act 2017 not to limit or affect rights under permits or rights of access 86Notation of mineral ownership on land titles 87Certified copies of documents to be evidence 88Notification of expiry of permit 88Recorded documents to be open for search 89Revision of records

Decommissioning of petroleum infrastructure and wells

89AApplication of this subpart 89BRelationship between this subpart and other enactments 89CRelationship between sections 42B and 42C, this subpart, and existing conditions of permits and licences 89DInterpretation 89EDecommissioning 89FPetroleum infrastructure 89GConditions relating to decommissioning 89HMeaning of relevant older petroleum infrastructure 89IMeaning of relevant older well

Decommissioning obligations for petroleum infrastructure

89JObligations of permit holders: decommissioning of petroleum infrastructure 89KObligations of licence holders: decommissioning of petroleum infrastructure 89LFurther obligations on transferees and Minister 89MExtent of liability of former permit and licence holders under sections 89J(2) and 89K(2)89NWhen decommissioning obligations of persons under section 89J or 89K arise 89OCriteria for agreeing or setting time frames for decommissioning 89PJoint and several liability

Plugging and abandonment of wells

89QWhat is plugging and abandonment of well

Decommissioning obligations in relation to wells

89RObligations of permit holders: decommissioning of wells 89SObligations of licence holders: decommissioning of wells 89TFurther obligations on transferees and Minister 89UExtent of liability of former permit and licence holders under sections 89R and 89S 89VWhen decommissioning obligations of permit holders, licence holders, and other persons under section 89R or 89S arise 89WCriteria for agreeing or setting time frames for decommissioning of wells 89XJoint and several liability

Exemptions and deferrals

89YExemption and deferral powers of Minister 89ZCriteria for granting exemption 89ZACriteria for grant of deferral

Reporting requirements

89ZBSubpart 2 decommissioning plan 89ZCDecommissioning cost estimate 89ZDAsset registers to be submitted to chief executive 89ZEDecommissioning completion report

Ongoing monitoring of financial position

89ZFPermit and licence holders must provide information needed to monitor financial position

Financial capability assessments

89ZGMinister may assess financial capability to meet decommissioning obligations 89ZHCriteria for considering whether to carry out financial capability assessment 89ZIProcess for carrying out financial capability assessment 89ZJMinister must notify outcome of financial capability assessment 89ZKRelevant persons must provide supporting information

Financial securities

89ZLPermit and licence holders must put in place and maintain acceptable financial security arrangement 89ZMMatters Minister must take into account in determining acceptable financial security arrangement 89ZNDecision of Minister 89ZOAlteration of 1 or more elements of financial security arrangement 89ZPMinister must notify required or permitted changes to financial security arrangement 89ZQPermit holder or licence holder may object to required financial security arrangement or required change to that arrangement 89ZRWhat happens if permit holder or licence holder makes objection

Post-decommissioning obligations

89ZSApplication of this subpart 89ZTRelationship between this subpart and other enactments and permit or licence conditions 89ZUInterpretation 89ZVPost-decommissioning obligations 89ZWMatters for Minister to consider 89ZXDetails of payment or financial security 89ZYOther duties of chief executive 89ZZOther duties of Minister

Exemptions

89ZZAExemption powers of Minister 89ZZBCriteria for granting exemption

Enforcement, remedies, and appeals

89ZZCApplication of this subpart 89ZZDChief executive or enforcement officer may accept enforceable undertakings 89ZZENotice of decision and reasons for decision 89ZZFWhen enforceable undertaking is enforceable 89ZZGCompliance with enforceable undertaking 89ZZHContravention of enforceable undertaking 89ZZIWithdrawal or variation of enforceable undertaking 89ZZJProceedings for alleged contravention

Compliance notices

89ZZKPower to issue compliance notices 89ZZLContent of compliance notices 89ZZMCompliance with compliance notice 89ZZNExtension of time for compliance with compliance notices

General provisions

89ZZOGeneral provisions relating to compliance notices 89ZZPChanges to notice by chief executive or enforcement officer 89ZZQChief executive or enforcement officer may vary or cancel compliance notice 89ZZRFormal irregularities or defects in compliance notice 89ZZSIssue of compliance notice

Civil proceedings for non-compliance with compliance notices

89ZZTCivil proceedings relating to non-compliance with compliance notice

Pecuniary penalties

89ZZUReasonable mistake defence in pecuniary penalty proceedings 89ZZVPecuniary penalties 89ZZWProceedings for pecuniary penalties

Criminal liability for knowingly failing to carry out certain obligations

89ZZXCriminal liability for knowingly failing to carry out certain obligations 89ZZYDefence to criminal liability for directors

Relationship between pecuniary penalties and criminal liability

89ZZZRelationship between pecuniary penalties and criminal liability

Restrictions on indemnities and insurance

89ZZZARestriction on indemnities 89ZZZBRestriction on insurance

Crown liability

89ZZZCEffects of subparts 2 and 3 on Crown liability

Offences and miscellaneous

Registers, records, and use of information

90Permit holder records and reports 90ADisclosure of information 90BDisclosure and publication of mineral resources and mineral production information 90CProvisions relating to speculative prospectors 90DTreatment of speculative prospecting information purchased or licensed by permit holder 90EProviding information to regulatory agencies 90FConditions that may be imposed on providing information or documents under section 90E 90GRegulatory agency may provide information for purposes of this Act 91Chief executive to keep registers 91ACorrection of errors or omissions

Miscellaneous provisions

92Permits are not real or personal property 92AEffect of liquidation or loss of registration of company 93Access arrangement does not confer interest 94Officers not to have personal interest 95Address for service 96Service of documents 96AService of documents on particular persons 96BService in court or other proceedings 96CService on owners of Māori land 97Application of monetary deposits 97AChief executive may prescribe form of certain documents 98Gold fossicking areas (Crown land)98AGold fossicking areas (other land)99Arbitration

Provisions relating to enforcement officers, auditing, and requiring information

99AAppointment of enforcement officers 99BPowers of enforcement officers 99CApplication for warrant for entry to search 99DApplication of Part 4 of Search and Surveillance Act 2012 99EAuditing 99FPower to require information 99GProtection of persons acting under authority of this Act

Royalties and interest

99HRoyalties 99IPower to amend royalty returns or make default assessment 99JInterest on unpaid money 99KRight to object to amendment or default assessment 99LRight of appeal 99MStatus of original amendment or default assessment

Offences and legal proceedings

100Offences 101Penalties 101AInterpretation 101BInterfering with structure or operation in offshore area 101CPowers of enforcement officers 102Liability of principal for acts of agents 103Strict liability 104Recovery of fees and other money 104AInterpretation 104BInfringement offences 104CWho may issue infringement notices 104DWhen infringement notice may be issued 104ERevocation of infringement notice before payment made 104FWhat infringement notice must contain 104GHow infringement notice may be issued to person 104HPayment of infringement fees 104IReminder notices 104JRegulations 104KRelationship between infringement offences and other offences

Regulations

105Regulations 105ARegulations relating to royalties 105BRegulations not invalid for certain matters 105CRegulations may incorporate material by reference 105DRequirement to consult on proposal to incorporate material by reference

Part 2:
Savings and transitional provisions

106Savings and transitional provisions

Existing privileges

107Existing privileges to continue 108Administration of existing privileges 109Bonds and monetary deposits 110Fees payable by holders of existing privileges 110AData lodgement requirements in respect of petroleum licences 110BExtension of term of petroleum prospecting licences 111Right to new permits 111ANo application under section 103D of Mining Act 1971 for extension of duration of mining privilege

Existing applications

112Existing applications under Mining Act 1971 113Existing applications under Coal Mines Act 1979 114Existing applications under Petroleum Act 1937 114APriority of existing applications under Mining Act 1971, Coal Mines Act 1979, and Petroleum Act 1937

Transitional arrangements regarding access to land

115Existing agreements regarding land access not affected

Miscellaneous provisions

116Notices under section 24 of Mining Act 1971 117Minister's obligations in respect of minerals programmes 118Granting of petroleum permits before minerals programme issued 119Restriction on granting of permits 119ANo compensation 120Repeals and revocations 121Consequential amendments 122Savings as to compensation claims 123Savings as to court proceedings

Schedule 1:
Savings and transitional provisions

Schedule 2:
Regulations revoked

Schedule 3:
Enactments amended

Schedule 4:
Land to which access restrictions apply

Schedule 5:
Thresholds for Tier 1 and Tier 2 activities

Crown Minerals Act 1991

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

89U: Extent of liability of former permit and licence holders under sections 89R and 89S

You could also call this:

"What happens to people who used to hold mining permits or licences when it comes to cleaning up wells"

Illustration for Crown Minerals Act 1991

You need to know that a part of the law called section 89U has been repealed. This means it is no longer a part of the Crown Minerals Act 1991. It was removed from the law on 6 August 2025 by section 51 of the Crown Minerals Amendment Act 2025.

This change affects people who used to hold permits and licences under the law. The repealed section was about how much they were responsible for when it came to decommissioning wells. Now that section 89U is repealed, it no longer applies to them.

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This page was last updated on 14 August 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS622433.

Topics:

Environment and resources > Conservation

89T: Further obligations on transferees and Minister, or

"Rules for buying a licence or permit from someone else"

89V: When decommissioning obligations of permit holders, licence holders, and other persons under section 89R or 89S arise, or

"When you must close down a well after using it"

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

89UExtent of liability of former permit and licence holders under sections 89R and 89S (Repealed)

Notes

Section 89U: repealed, on 6 August 2025, by section 51 of the Crown Minerals Amendment Act 2025 (2025 No 40).