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Offshore Renewable Energy Bill

Decommissioning of ORE infrastructure - Obligation to provide Crown with financial security - Obligation to ensure that acceptable financial security arrangement is put in place and maintained

80: Purpose of acceptable financial security arrangement

You could also call this:

"Ensuring money is set aside to clean up old offshore energy equipment if something goes wrong."

Illustration for Offshore Renewable Energy Bill

The purpose of a financial security arrangement is to make sure the government has money to pay for costs if someone fails to decommission offshore renewable energy infrastructure. You need to put this arrangement in place and maintain it for the government's benefit. The arrangement must be for a certain amount, which is decided based on information about decommissioning activities and costs, and it must also meet other criteria set out in regulations.

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This page was last updated on 29 June 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS992240.

79: Obligation to ensure that acceptable financial security arrangement is put in place and maintained, or

"Ensure you have enough money set aside to clean up after your offshore energy project."

81: Proposal for financial security arrangement, or

"Tell the government how you will pay for any mistakes you make"

Part 3Decommissioning of ORE infrastructure
Obligation to provide Crown with financial security: Obligation to ensure that acceptable financial security arrangement is put in place and maintained

80Purpose of acceptable financial security arrangement

The purpose of an acceptable financial security arrangement is to ensure that financial security is available to the Crown to pay any costs, expenses, and liabilities that the Crown may incur in connection with, or as a result of, a failure of the relevant commercial permit holder or other person to carry out, or meet the costs of, the decommissioning of the relevant ORE infrastructure as follows:
it must be put in place and maintained on behalf of the Crown; and
it must be of an amount determined in accordance with the regulations, based on the information provided about the decommissioning activities that are included in the decommissioning proposal and the decommissioning cost estimate; and
it must meet any other criteria specified by the regulations.