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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

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

You could also call this:

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

Illustration for Crown Minerals Act 1991

If you have a permit or licence to use a well, you must plug and abandon it when you are finished. You must do this before your permit or licence expires, or before you surrender it. You can agree on a date with the Minister to do this, or the Minister can specify a date.

If your permit or licence is revoked, you still have to plug and abandon the well. You must do this by a time agreed with the Minister. Your obligations to plug and abandon the well do not stop even if your permit or licence has expired or been surrendered.

You can be in breach of your obligations if you stop producing from a well and do not plug and abandon it within a certain time. The Minister can specify this time. A certificate from the chief executive will confirm when your obligations started, and this certificate is proof of this in any court case.

You must follow the rules in section 89R or 89S to plug and abandon wells. You also need to follow the rules in section 35C or 40 if you want to surrender part of your permit area.

If you give notice that you are stopping production, you must plug and abandon the well within a certain time. This time is agreed with the Minister, or specified by the Minister if you cannot agree.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS622440.

Topics:
Environment and resources > ConservationBusiness > Industry rules
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89U: Extent of liability of former permit and licence holders under sections 89R and 89S, or

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

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89W: Criteria for agreeing or setting time frames for decommissioning of wells, or

"Rules for deciding when to close down an oil or gas well"

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

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

  1. A person liable to carry out, or meet costs of, plugging and abandoning wells, or both, under section 89R or 89S 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 date or dates of completion of earlier milestones in the decommissioning process; or
      1. if there is no such agreed date by the date or dates 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, the obligations imposed by subsections (1) and (2) continue in force even if—

          3. 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.

              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 plug and abandon the well or wells 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 89V: inserted, on , by section 18 of the Crown Minerals (Decommissioning and Other Matters) Amendment Act 2021 (2021 No 53).
                      • Section 89V heading: amended, on , by section 52(1) of the Crown Minerals Amendment Act 2025 (2025 No 40).
                      • Section 89V(1): amended, on , by section 52(2) of the Crown Minerals Amendment Act 2025 (2025 No 40).