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Offshore Renewable Energy Bill

Decommissioning of ORE infrastructure - Obligation to provide Crown with financial security - Process for reaching acceptable financial security arrangement

83: Minister’s determination on acceptable financial security arrangement

You could also call this:

"The Minister decides what money security is needed for offshore energy projects."

Illustration for Offshore Renewable Energy Bill

The Minister will decide what financial security arrangement is acceptable after following the process in sections 81 and 82. You will need to put this arrangement in place and maintain it, and it must include things like the total amount that must be secured, the kind of securities used, and when they must be in place. The Minister will also decide how the securities are held and when you can stop maintaining them.

The Minister can add conditions to the financial security arrangement that they think are necessary. They can also direct how the arrangement must operate, as long as it follows the regulations. You will get a notice from the Minister that explains their decision, including the reasons why they made it.

The Minister must make their decision before granting a commercial permit or approving a transfer of a permit, if the financial security arrangement is for ORE generation infrastructure. This means you will know what you need to do before you can get a permit or transfer one. The Minister's decision will be based on the process in sections 81 and 82, which you can find by following the links to sections 81 and 82.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS992244.

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Part 3Decommissioning of ORE infrastructure
Obligation to provide Crown with financial security: Process for reaching acceptable financial security arrangement

83Minister’s determination on acceptable financial security arrangement

  1. After following the process in sections 81 and 82, the Minister must—

  2. determine the acceptable financial security arrangement that must be put in place and maintained by or on behalf of the relevant person, including—
    1. the total amount that must be secured by the financial security arrangement:
      1. the amount secured by each security that comprises the financial security arrangement:
        1. the kind or kinds of securities that comprise the acceptable financial security arrangement:
          1. the time by which the financial security arrangement must be in place (including, if applicable, the times when different securities that comprise the financial security arrangement must or may be in place):
            1. if applicable, how the securities that comprise the financial security arrangement must be held:
              1. the circumstances in which the person may be released from their obligation to maintain all or any of the securities that comprise the acceptable financial security arrangement; and
              2. impose any conditions of the financial security arrangement that the Minister considers appropriate.

                1. The Minister may direct how the financial security arrangement must operate, in accordance with the requirements prescribed by the regulations (if any).

                2. The Minister must give the relevant person a notice of the Minister’s determination specifying—

                3. the matters determined under subsections (1)(a) and (b) and (2); and
                  1. a summary of the reasons for the Minister’s decision.

                    1. The Minister must comply with this section before the commercial permit is granted if the financial security arrangement relates to ORE generation infrastructure and the relevant person is an applicant for a commercial permit.

                    2. The Minister must comply with this section before giving approval for a transfer of a commercial permit if the financial security arrangement relates to ORE generation infrastructure and the relevant person is the proposed transferee.