GNS Science Annual Report 2010 GNS Science Annual Report 2010

0 GNS Science Annual Report 2010

0 GNS Science Annual Report 2010

Contents

03 Introduction and statistics 34 Corporate Governance 04 Our Science 36 CRI Capability Fund Report 06 GNS Science at a glance 41 Report of the Directors 07 From the Chairman and Chief Executive 42 Income Statement 10 Fifty ways we benefit 43 Statement of Comprehensive Income 12 A closer look at our radiocarbon dating 43 Statement of Changes in Equity 14 A closer look at our petroleum geoscience 44 Balance Sheet 16 A closer look at our work on the 45 Statement of Cash Flows Transmission Gully route 46 Notes to the Financial Statements 18 Student support 61 Performance Indicators 19 Organisational structure 63 Statement of Responsibility 20 New public-good research contracts 64 Audit Report 22 Our commercial activities 65 Directory – applying our science 24 Management team 26 Human resources 28 Collaborations and partnerships 30 Board of Directors 32 International linkages

0 Contents GNS Science Annual Report 2010

Introduction

$65.1 million 369 staff Record annual revenue Full-time equivalents $2.4 million $176,500 Profit before tax Revenue per FTE 5.0% $9.1 million After-tax return on equity Invested in new equipment and infrastructure

The formation of the Earth has taken hundreds of millions of years, layer upon layer, shaping and forming, reshaping and reforming, with events in the distant past continuing to influence our physical environment today. So it is with science – formulating ideas and reformulating them. Making new discoveries and creating new solutions, so that the work of the past benefits our lives today, and the work of today will benefit future generations.

Introduction 0 GNS Science Annual Report 2010

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1. Geobiology research 4. Water dating GNS Science’s geobiology research team has 2000 Our water dating laboratory, the most accurate such strains of extremophilic bacteria in its culture facility in the world, has been further enhanced with collection, and some are prime candidates for the addition of a laser spectroscopic stable isotope industrial uses such as bioethanol production. analyser which adds greater quality assurance for This year the team sequenced the genomes of two water dating measurements. Laboratory staff work novel heat-loving bacteria from the Taupo Volcanic with local government throughout New Zealand Zone, to provide new insights into extremophile and overseas organisations to help in the metabolisms and biotechnological applications. management of aquifers, lakes and rivers.

2. Science outreach 5. Probing Crater Lake Our touring exhibition, NZ Fossils: Dead Precious!, This year our scientists installed a radio-linked recently finished a three-year tour of New Zealand electronic probe in Mt Ruapehu’s acidic crater lake museums and was seen by 524,000 people. The to take hourly readings of lake temperature, lake exhibition, sponsored by Shell NZ, consisted of 50 level, and acoustic rumblings from the bottom of fossil specimens drawn mainly from our national the lake. The steady flow of high quality data from paleontology collection. the probe is helping volcanologists understand Ruapehu’s volcanic system. It will also pick up 3. Tectonic plate locking early signs of volcanic unrest. Seismologist Martin Reyners and colleagues have shed light on the locking mechanisms between 6. Ocean drilling tectonic plates. Under a Marsden funded project, This year we participated in a record-breaking they have developed a physical model suggesting Integrated Ocean Drilling Program voyage that the strength of plate coupling is controlled by the collected deep drill cores from the ocean floor off ability of fluid to move across the plate interface. the Canterbury coast. The cores contain valuable Progress in understanding locked plates has information about the relationship between climate New Zealand and worldwide implications, as change and global sea level over the past 35 million locked plates accumulate strain that can be released years. The science output from this project feeds as large quakes. into a large number of science programmes worldwide, including developing and verifying climate models.

0 Our science GNS Science Annual Report 2010

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7. Auckland air pollution 10. New sub-surface model Using our unique ion-beam analysis capability, we Our engineering geologists have developed the first analysed 1400 air filters from five sites in Auckland 3D-models of the geology below Wellington and to determine the composition and sources of to a depth of 500m. The 3D models particulate matter in the air. From the results, map units with similar physical properties and this we produced a detailed report for the Auckland enables scientists to determine the strength and Regional Council to improve management of air duration of ground shaking for a range of quality in the Auckland region. earthquake magnitudes and locations. Engineers use this information to design infrastructure that 8. Tsunami evacuation maps is more resilient to earthquakes. We work with emergency managers, local government and communities to produce colour- 11. Geothermal energy coded tsunami evacuation maps. They show at-risk We undertake work to identify drilling sites and zones and are the basis for evacuation routes and reduce exploration risk for geothermal energy location of safe areas. We also played a major role in companies. We also help with the efficient operation the development of a national standard for tsunami of existing geothermal plants. The rapid expansion warning and evacuation signage. of geothermal energy is creating new jobs and geothermal is on target to supply 18% of 9. Gisborne moves east New Zealand’s electricity generation by 2015. Using permanent GPS installations, our geodesists recorded Gisborne moving eastward at a rate of 12. Oil and gas exploration several millimetres a week for several weeks this We are working with Crown Minerals on a two-year year – the fifth such ‘slow earthquake’ episode in programme that will substantially increase the Poverty Bay in the past nine years. GPS studies quality and quantity of geoscience information enable our scientists to gain a greater understanding available to the oil and gas exploration industry in of locking and release mechanisms at the tectonic New Zealand. Called the Petroleum Exploration and plate interface and where stress is accumulating and Geosciences Initiative, it will improve the knowledge being relieved in the Earth’s crust. of petroleum potential in Taranaki and other key sedimentary basins and increase the attractiveness of New Zealand for exploration companies.

Our science 0 GNS Science Annual Report 2010

GNS Science at a glance

GNS Science, Te Pu- Ao, is the Crown-owned science company that meets New Zealand’s needs to discover and understand the earth processes and materials that underpin geological resources, environmental and industrial isotopes, and geological hazards. We apply this scientific knowledge to create and preserve wealth, to protect the environment, and to improve the Visit our website: safety and well-being of people. www.gns.cri.nz

The benefits we deliver for New Zealand include: When we were established as a Crown Research • security and wealth from energy, mineral, and Institute in 1992, we had assets of $14 million, water resources revenue of $25 million a year and a staff of 253. • mitigation of the economic and social effects Today we have assets of $45 million, revenue of of geological hazards $65.1 million, and a staff of 369 full-time • development of new technologies such as nano- equivalents. scale devices and non-invasive scanning. Our clients include: These benefits arise directly from our research into • New Zealand central government agencies processes and endowments within the Earth’s crust • regional and local government including: • overseas government agencies • rocks, minerals, and groundwater • oil and gas exploration companies • earthquakes, volcanoes, landslides, and tsunami • geothermal energy exploration and operating • hydrocarbons and geothermal energy companies • geobiology and climate history • hydroelectricity operating companies • gravitational and electromagnetic fields • the onshore and offshore minerals exploration • natural isotopes and radiation. industries Our Ma-ori name, Te Pu- Ao, means the foundation, • meat, dairy, wool, timber, and horticulture origin and source of the world in its entirety, from the processing industries atomic through to planetary scales. We are a Crown- • insurance and reinsurance companies owned research institute operating as a limited • engineers, developers, and infrastructure liability company with an independent Board of companies Directors. This unique structure allows us to: • museums • focus on strategically important science at a • research organisations in New Zealand and national level overseas. • engage in the full spectrum of science from basic research through to consultancy and product Staff development Our 369 staff are located in Lower Hutt (75%), • undertake work for the public and private sectors Taupo (20%), and (5%). • operate in New Zealand and internationally • have autonomy and self-determination. Our revenue is generated from: • open bidding and negotiation for public-good Each year we invest most of our tax-paid profit in research contracts (40-45%) scientific equipment and infrastructure. This • consultancy, product development, and laboratory ensures our capabilities keep pace with services for the private sector (20-30%) international standards. • monitoring geological hazards for the Earthquake Commission (15-20%) • advice to central and local government agencies (5-10%) • a government grant to maintain and enhance our capabilities (5-10%).

0 GNS Science at a glance GNS Science Annual Report 2010

From the Chairman and Chief Executive

We are pleased to report our financial results and highlights of our science successes over the past year. These are noteworthy achievements during a period of global economic uncertainty.

Financial results Capital investment Chairman Tom Campbell (left) For the year ending 30 June 2010, our net profit We invested over $9 million during the year on new and Chief Executive before tax was $2.4 million, which was 6% higher scientific equipment and infrastructure. This year Dr Alexander Malahoff. than the previous year. Our net profit after tax of we made the largest investment in scientific $1.0 million (2009: $1.5 million) was reduced by equipment in our 18 year history as a Crown- “This year we made the largest a $675,000 additional tax charge arising from the owned company. Our new $3.4 million accelerator investment in scientific removal of building depreciation, announced in the mass spectrometer has already exceeded our equipment in our 18 year history as a Crown-owned Government’s budget earlier this year. The net performance expectations. It has tripled the company. Our new $3.4 million result represents a return on average equity of 5.0% throughput of radiocarbon dating samples with accelerator mass spectrometer (2009: 7.7%). Excluding the additional tax charge, significantly improved measurement precision. It has already exceeded our we would have achieved a return on average equity will help to invigorate earth, environmental and performance expectations.” of 8.1%. isotope sciences in New Zealand and also help us to attract and retain world-class scientists. Total revenue from research, consulting and other operations was $65.1 million. This was 7% higher We also invested over $4 million in other scientific than the $60.7 million achieved in the preceding equipment and software to ensure our capabilities year. Expenses were also 7% higher. stay abreast of, and in some cases lead, international standards and practice. To accommodate our Sectors that have been strong contributors to our increasing staff numbers we also continued our revenue are geothermal energy research, petroleum Wairakei refurbishment programme and initiated exploration research, natural hazards risk the conversion of part of our Avalon building into assessment and mitigation, international work office space. relating to the United Nations Convention on the Law of the Sea, and sales of our Globe ClaritasTM Natural Hazards Research Platform seismic processing software. Work in relation to The GNS Science-led Natural Hazards Research rolling out and operating GeoNet on behalf of the Platform, now one year old, was established by Earthquake Commission continues to be an Government to provide secure long-term funding important part of our business. for natural hazards research, and to enhance the ability of research providers and end-users to work Our workforce has increased to 369 full-time more closely together. Our partners in this platform equivalents as at the end of June 2010 compared are FRST, NIWA, The University of Auckland, to 354 at the same time in 2009. The majority of Massey University, University of Canterbury, and our new staff are scientists and technicians Opus International Consultants Ltd. recruited to meet increased workload from steadily growing business opportunities in New Zealand Research conducted under the Platform develops and internationally. quantitative estimates of geological and weather- related hazards such as earthquake, volcano, flood, During the year we continued our programme of snow, wind, rainstorm, landslide, and tsunami moving staff salaries to market rates to enable us to activity in New Zealand. The research also evaluates attract and retain staff in a highly competitive market. how well New Zealand society is prepared for these perils, and responds to any national need in hazard mitigation or disaster recovery.

From the Chairman and Chief Executive 0 GNS Science Annual Report 2010

...from the Chairman and Chief Executive... continued

The Platform’s research factors in a wide range The information in the inventory will be a key of variables including different vulnerabilities in tool for effective risk mitigation for earthquakes, different parts of New Zealand, and the age and tsunami and cyclones. As part of the project, our quality of buildings and infrastructure. staff offer training to local officials in digital data collection and database management. We have Given the excellent progress made in its first year, also provided expert advice in natural hazards we believe the Platform is well placed to deliver assessment and mitigation in Vietnam and research results that will significantly help to reduce Indonesia for a number of years. We see our the exposure of New Zealand to the impact of Pacific work as a natural extension of our work in natural hazards. End-users of the research include New Zealand, and it is a natural way to support central, regional and local government, engineering New Zealand’s diplomatic efforts in the region. consultancies, the construction and insurance industries, and emergency services. New materials and nano-science Our ion-beam laboratory is at the forefront of Mapping New Zealand developing new materials and nanostructures for The long-running quarter-million scale (QMAP) use in industry. Our latest development is the Geological Map of New Zealand project is nearing invention of nano-devices to be used in the completion. The last of the 21 mainland map sheets production of gas sensors. The project is and a new geological map of South Victoria Land, responding to a need in the gas-sensor industry Antarctica, will be published by late 2010. Our for a low cost and sensitive sensor for industrial geologists will also complete the first version of a and environmental monitoring. We are ‘seamless’ GIS-based digital map for the whole collaborating with a specialist environmental country based on the individual map sheets. This monitoring company, using nano-structured will become the authoritative version of New components to build a prototype that will Zealand’s geology and will be accessible online. significantly improve gas sensitivity and selectivity. Our mapping team is now embarking on new mapping projects centred on urban and resource Working with the petroleum sector targets using 3D software technology. This new We are making excellent progress on a two-year project will allow us to map subsurface structures project focusing on substantially increasing the and will complement the more conventional surface quantity and quality of geoscience information geology techniques. available to the government and the oil and gas exploration industry in New Zealand. The Pacific nations’ vulnerability to natural hazards Petroleum Exploration and Geosciences Initiative We are part way through leading a two-year project is funded by the Crown Minerals division of the to build a digital inventory of built assets for eight Ministry of Economic Development. The project Pacific Island jurisdictions extending from will improve the knowledge of New Zealand’s Rarotonga to Papua New Guinea. The project is petroleum potential and assist the exploration funded by the Asian Development Bank. The data sector. This will make New Zealand more attractive will give location and type of critical infrastructure, for exploration, and is consistent with the construction materials and physical features, such Government’s economic and energy strategies. as elevation above sea level. A key factor for exploration companies is the ease of access to high quality information, which we are able to provide.

0 From the Chairman and Chief Executive GNS Science Annual Report 2010

Public recognition We strongly support the development of a A key determinant of our future, and we believe national research infrastructure. For us, this is the future of New Zealand, is public appreciation particularly important for enabling systematic of the value of science. In order to promote science, surveys of on-shore and off-shore geological and in addition to our usual communication resources to be undertaken, and for access to channels of our website, news media, schools and facilities managed by international research Te Papa Tongarewa, the Museum of New Zealand, consortia. The other recommendations are entirely we are delighted with the success of our national consistent with our practices, and we can endorse touring exhibition NZ Fossils: Dead Precious!. This them without reservation. exhibition has recently finished a three-year tour of New Zealand museums and was seen by a total Changes to our Board of 524,000 people. We thank our sponsor, Shell NZ, Con Anastasiou retired as Chairman after nine and for their support and their belief in the project a half years of service on the Board, eight of those from its beginnings. The exhibition comprised as Chair. It is a measure of Con’s contribution that specimens drawn largely from our national during his tenure the organisation has grown paleontology collection. The exhibition’s success significantly in size, with staff growth of 45% and gave rise to a book, The Kiwi Fossil Hunter’s revenue growth of 105%. His tenure also saw major Handbook (Random House), by paleontologists strategic initiatives such as the purchase, James Crampton and Marianna Terezow. It features refurbishment and occupation of our new premises 28 locations around New Zealand where people at Avalon, Lower Hutt, the investment in our ice can find fossils for themselves. core facility, and the recent purchase of a new particle accelerator. We also farewelled Ellen Förch In the commercial arena, we were pleased to have who has been a thoughtful and conscientious won the Global Gold category in the 2010 director in her six-year term, always asking Wellington Gold Awards. The award recognises challenging questions and offering sound advice “Our quarter-million scale our success as an exporter of specialist scientific in the science and human resources areas. We are Geological Map of New Zealand is nearing completion services and software products. It is the fourth time grateful for the guidance and support of both Con and will be the authoritative we have been a category winner in these prestigious and Ellen during their time on the Board. version of New Zealand’s awards in the past 10 years. We see this as a measure geology.” of our standing as a science organisation. It is also We welcome new directors Dr Claire McGowan, a reflection of the emphasis we have placed on Hon Ken Shirley, and Professor Steve Weaver who increasing our combined commercial and research bring a range of commercial, scientific, and activities overseas in recent years. Our overseas governance experience to the Board. activities expand our knowledge of geological processes and support New Zealand’s building of international relationships in addition to the significant revenue they bring. This year we were also a finalist in theACC Workplace Safety category. Tom Campbell Chairman Response to recommendations of the CRI Taskforce During the past year our Crown shareholders introduced a major review of how Crown Research Institutes operate. The CRI Taskforce made a suite Dr Alexander Malahoff of 26 recommendations. We welcome these Chief Executive recommendations that address factors that are important to our sector, and give us a new pathway forward.

The company model has served us well in creating an internal culture of scientific excellence, financial viability in providing for our capital needs, and in building enduring relationships with many public and private-sector entities and thereby transferring our knowledge to practical applications for the benefit of New Zealand. We support the greater recognition of our core purpose, especially among Crown agencies. It is also important that the scope of our operations be recognised by the public as embodying both basic and applied research. Taken together, they comprise the strategic research that is conducted for the benefit of New Zealand. We particularly value and appreciate the confidence expressed in us by our Crown shareholders with the introduction of “core funding”. We believe that, together with a definite statement of our core purpose, this system will also enable us to build research stability and robust cases for future funding.

From the Chairman and Chief Executive 0 GNS Science Annual Report 2010

Fifty ways we benefit New Zealand

GNS Science is an organisation dedicated to helping New Zealand benefit from our earth and ocean environments. New Zealand’s unique geology has resulted in a highly specialised group of world recognised people. Here are just 50 ways we benefit New Zealand.

Keeping people safe Protecting the environment

1. GeoNet – the national network to monitor 15. Analysis of sedimentary record of climate earthquakes, volcanoes, and tsunami history of Antarctica 2. Forecasting potential volcanic eruptions and 16. Past environment estimation from fossils and lahar events ice cores 3. Volcano and earthquake hazard and risk 17. Air particulate analysis and air quality assessment monitoring (page 5) 4. Slope stability assessment 18. Tritium dating of water and ice 5. Tsunami modelling and hazard assessment 19. Groundwater resource and water quality 6. Underpinning data for the Building Code assessment 20. Carbon dioxide sequestration Energy resources 21. Environmental tracing using isotope techniques 22. Assessing the environmental impacts of 7. Geothermal resources exploration, assessment geothermal development and management 8. Assessments of New Zealand’s oil and gas Infrastructure development prospects (page 14) 9. Seismic surveys, data processing, 2D and 3D 23. Hydro dam safety assessments modelling 24. Earthquake hazard assessment 10. Drill core and borehole analysis and 25. Modelling potential earthquake damage to interpretation highlight areas of greatest risk (page 5) 11. Gas hydrates as a potential energy resource 26. Designing structures to survive earthquake (page 20) shaking 27. Slope failure studies Mineral wealth 28. Determining the engineering properties of rock 29. Highway, transmission, and pipeline route 12. Regional geology surveys (page 16) 13. Geological mapping 30. Hazards information for property owners 14. Onshore and offshore mineral surveys

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Enhancing New Zealand’s competitive advantage Support for New Zealand’s international diplomacy Locations of stories highlighted 31. Developing and testing nanostructures and 47. International Atomic Energy Agency in this annual report and nanotechnologies representation cross-section through central North Island. 32. Developing non-invasive scanning technologies 48. Natural hazards advice and training in the for the export meat industry Pacific and Southeast Asia region 33. Developing non-invasive scanning technologies 49. Advice on climate change for international for the timber processing industry forums and agreements (page 4) 34. Developing non-invasive scanning methods 50. Technical expertise for UN Convention on the 35. Development of indigenous energy resources Law of the Sea 36. Researching extremophile organisms and their potential application to pharmaceuticals and industrial processes 37. Maintaining New Zealand’s place at the forefront of earth sciences 38. Software development for commercial application 39. Proof-of-origin testing for food authentication

Community responsiveness

40. Linking GNS Science capabilities with Ma-ori end-users 41. Dating of natural and man-made artefacts (page 12) 42. Providing expertise to Te Papa Tongarewa, the Museum of New Zealand, and other museums 43. Specialist university teaching, and supervision and support of graduate students 44. Understanding societal perception of hazards 45. Pollen analysis for forensic investigations 46. Educational outreach to teachers and students

Fifty ways we benefit New Zealand 11 GNS Science Annual Report 2010

A closer look at our radiocarbon dating

GNS Science has a 57-year heritage in radiocarbon dating and is a world leader in this area of science. This year we invested $3.4 million in a new compact accelerator mass spectrometer to maintain and strengthen our position as the operator of a top international radiocarbon dating laboratory.

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1 The new compact accelerator mass spectrometer Our laboratory is the oldest continually operating Scientists Johannes Kaiser measures ultra-low concentrations of the isotopes radiocarbon dating laboratory in the world. It (left) and Albert Zondervan, carbon-14, beryllium-10, and aluminium-26 for provides an important platform for the research of GNS Science, with the new applications in radiocarbon dating, earth sciences, activities at our National Isotope Centre. Since $3.4 million accelerator mass and environmental sciences. opening in 1953, the laboratory has built an spectrometer at our National international reputation for the quality of its work. Isotope Centre in Lower Hutt. The facility forms the backbone of the Rafter It dates between 2000 and 3000 samples annually 2 Radiocarbon Laboratory at our National Isotope for clients in New Zealand and overseas. Centre in Lower Hutt. It is the only accelerator Display of amplified pulses mass spectrometer (AMS) of its type in the Applications of carbon-14 dating include dating from the detector for individual C-14 (or Be-10, or Al-26) ions. Southern Hemisphere. Most of its work is carbon- antiquities, atmospheric studies, archaeology, 14 measurement for research organisations, climate research, oceanography, geology, earthquake 3 museums and the antiquities market. It will help and volcano research, marine biology, and studying Beamline section where fluxes to strengthen the scientific research culture in the dynamics of carbon in the environment. of the abundant isotopes (C-12 New Zealand and it will improve our ability to attract and C-13, or Be-9, or Al-27) and retain world-class scientists. It also underpins In recent years, we have been working more closely are measured. our research activities in using radiocarbon as a with antiquities dealers and archaeologists. We see tracer for studying greenhouse gas dynamics. growing interest in the use of radiocarbon analysis of tribal and ethnic artefacts from Asia, Africa, Oceania, We have configured the new AMS facility to and the Americas. With objects routinely selling for measure beryllium-10 and aluminium-26 as well tens of thousands of dollars, dealers can see value in as carbon-14. Measurement of these cosmogenic our services in antiquity dating and authentication. isotopes is used to determine timing of glaciations, lava flows, tectonic uplift, and meteorite impacts There are currently 50 radiocarbon laboratories in dating back several million years. It is also used the world. The Rafter Radiocarbon Laboratory is in Antarctic and ocean research, and to study recognised as part of this worldwide network of the ferromanganese nodules on the seafloor. 28 AMS laboratories specialising in carbon-14 analyses. The new facility is able to process samples nearly four times faster than the 50-year-old Van de We provide an exceptionally high level of customer Graaff particle accelerator it replaced. The service. This includes regular contact with clients precision of results has also improved with less through the stages of the dating process, and fast uncertainty in the dates produced. turnaround times compared to many other laboratories.

12 A closer look at our radiocarbon dating GNS Science Annual Report 2010

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Typically we deliver results to clients within eight Retracing history Project overview weeks, compared to the industry average of about At the end of World War II the Dr Rafter’s laboratory Timeframe of this work: four months. Department of Scientific and continued to develop and in Continuously from the 1950s to Industrial Research (DSIR) the 1980s it bought its first the present. Another feature of our operation is our continual established a small research accelerator mass spectrometer. quest to find efficiency gains without team to explore the rapidly This was the main tool for the Number of staff involved: growing field of nuclear science. Rafter Radiocarbon Laboratory The laboratory currently has a compromising precision or quality. We have also staff of 12. earned a reputation for dealing successfully with This was the beginning of the for nearly three decades. New Zealand Isotope During its long period of Value to the users: difficult dating assignments. Laboratory. By the early 1950s a service this instrument, now Our outstanding customer radiocarbon counting laboratory replaced by a state-of-the-art service, prompt turnaround had been established at the site compact accelerator mass times, high quality assurance, of our present facility in Lower spectrometer, radiocarbon and competitive prices enable Hutt. It was headed by Athol dated tens of thousands of users to complete projects on Rafter, who pioneered samples from throughout the time, on budget and with radiocarbon measurements in world. This work continues Client commentary confidence. the atmosphere and in the with higher productivity and “Rafter Radiocarbon Laboratory has provided excellent ocean. Dr Rafter was the first precision with the new facility. Direct beneficiaries: professional analytical services to Parsons Brinckerhoff for person in the world to detect Those involved in earth and over six years. The laboratory’s ability to handle large atmospheric radiocarbon arising environmental sciences, quantities of samples and provide fast turnaround services from nuclear weapons testing. archaeology, and antiquities while consistently delivering first-class analytical results and trading. technical advice allows PB to complete our projects on time and with confidence. Long-term beneficiaries: Isotopic analysis is a key developing market for PB’s Greater understanding of the Hydrogeology Group and the expert service provided by environment and processes GNS Science has allowed us to produce award winning such as carbon cycling will work in the field of groundwater-surface water interactions improve management of the and environmental tracers for a broad range of industries environment and the including State and Federal Government and the Mining understanding of climate- Industry.” change impacts.

Wendy McLean Senior Hydrogeochemist/Hydrogeologist Parsons Brinckerhoff, Sydney, Australia

A closer look at our radiocarbon dating 13 GNS Science Annual Report 2010

A closer look at our petroleum geoscience

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GNS Science takes great pride in knowing we have played a key role in helping to make oil and gas exploration a multi-billion dollar contributor to New Zealand’s economy.

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1 Our work, underpinned by long-term government Exploration companies often use our specialist Some of the 150-plus gas investment, covers the full spectrum of upstream services and in-depth local knowledge to help condensate and oil samples petroleum geoscience. It ranges from ‘big-picture’ refine exploration concepts prior to drilling. The from New Zealand’s petroleum research into the tectonic evolution of the New area of sedimentary basins across the New Zealand basins in our geochemical Zealand continent, to detailed laboratory analysis continent is very large, and many parts are covered database. We use these of key geological and geochemical components of by only meagre scientific data. Even with the best samples to compare the quality, genetic groupings, petroleum systems. available data, looking for petroleum is challenging and relative maturities of New and risky. Wells that fail to find commercial Zealand’s petroleum types. One of the main goals of our research is to reduce accumulations of oil and gas are common. One of the perceived geological uncertainties for petroleum our research goals is to facilitate the discovery of 2 exploration in New Zealand. We help to improve new petroleum reserves by encouraging the drilling Three-dimensional computer chances of discovering new petroleum accumulations of many exploration wells in all of New Zealand’s model of part of the Kupe Oil through detailed mapping, analysis, quantification prospective basins and by providing expertise and Field showing petroleum and visualisation of how petroleum forms, migrates expulsion and migration data that maximises the chances of success. pathways. GNS Science and is trapped in subsurface rock layers. compiled this model using The discovery of the Tui oil field depended in part PetroMod basin modelling The recent uptake of exploration licences covering on our computer modelling of petroleum generation software from Schlumberger. extensive areas in the , the in the Western Platform region of the Taranaki Raukumara Basin, the Canterbury Basin and the 3 Basin, an area hitherto regarded as unprospective. Deepwater are examples of how Tui cost about US$225 million to develop, and Montage representing aspects we work with industry and Crown Minerals to payback took less than six months of production. of our petroleum geoscience promote exploration in New Zealand’s sedimentary The success of this project has contributed to an work. Clockwise from bottom basins. We enhance the work of Crown Minerals in left: Field studies in coastal upswing in exploration activity and re-investment by Taranaki; Seismic data acquiring new data to support licensing rounds by many companies. In the 12 months to 31 July 2010, interpretation; 2D interpretation providing commissioned interpretation reports of oil was New Zealand’s fourth-largest export earner of the geological structure of prospective areas. These reports are made available after dairy products, meat, and logs and lumber. the Reinga Basin; 3D model to industry at no additional charge. The success of of the Kupe Oil Field. Exports of crude oil were worth $2.1 billion. this work was highlighted this year when two major oil companies – Petrobras and Anadarko – entered the New Zealand exploration scene. New Zealand is now in one of its busiest-ever periods for oil and gas exploration.

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Client commentary Project overview

“GNS Science represents a highly-valued knowledge Timeframe of this work: resource for companies engaged in exploration for oil Continuously from 1960s to and gas in New Zealand. the present.

Its long-term research programmes integrate the emerging Number of staff involved: results of fundamental analysis of the geological evolution Our oil and gas team has a of the New Zealand region into continually improving staff of about 40. understanding of the complexities of the petroleum systems operating within our sedimentary basins. Direct beneficiaries: Petroleum exploration Companies which engage effectively with GNS Science companies, Crown Minerals, secure a competitive advantage that is necessary to geoscientists in the energy overcome the large costs and risks associated with oil and sector. gas exploration, and reap the benefits of discovery. This is especially true for ventures in basins where commercial Long-term beneficiaries: discoveries have not yet eventuated.” • All energy users. • The New Zealand economy. Dr Mac Beggs Exploration Manager Value to users: New Zealand Oil & Gas Our research complements Crown Minerals’ promotional activities and supports the exploration and research interests of industry. It increases the competitiveness of New Zealand’s oil exploration markets and boosts confidence across the sector.

A closer look at our petroleum geoscience 15 GNS Science Annual Report 2010 N Present coastal route A closer look at our work on the Transmission Gully route

Transmission Porirua Gully route

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Science doesn’t always pay dividends next month or even next year. There are many examples of science producing payback over much longer timeframes. Our geological investigations of the proposed Transmission Gully route, north of Wellington, provide a good example.

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1 The 27km Transmission Gully route traverses Construction on the multi-year project is expected The proposed highway steep hill country and crosses the Ohariu Fault, one to start in 2014. Transmission Gully is one of eight branches off from State of four major active faults in the Wellington region. sections of the ‘Wellington Northern Corridor’, Highway One at MacKays which the New Zealand Government has named Crossing, north of Paekakariki, A good deal of the geological knowledge of this as one of seven roads of national significance. and rejoins at the boundary of route is built on investigations that we started in Porirua and Tawa. the early 1980s. Over a period of 30 years GNS The northern half of the Transmission Gully route 2 Science has produced a number of detailed reports has about the same gradient as Ngauranga Gorge, on the engineering geology along the route and immediately north of Wellington, but is twice the Opus and GNS Science potential geological hazards and mitigation length. Our report found that earthquake-induced conducted geotechnical investigations along the entire measures for the proposed route. Most reports landslides arguably present the greatest geological Transmission Gully route during were completed as a sub-contractor to Beca, in the hazard to both routes. However, on the 2008 and 2009. Drill cores early stages of the project and, more recently, to Transmission Gully route the risk of slope failures were typically about 30m deep, Opus International Consultants. can be minimised by limiting the height and and went as deep as 90m in some areas. steepness of cuts during construction. A report we produced in 2005 for the Porirua City 3 Council compared the geological hazards along the We concluded it would be much more expensive to Transmission Gully route with those of the existing achieve the same level of landslide mitigation on the An aerial view of the northern section of the proposed coastal highway. The report contributed to a existing coastal route. We also found that the Transmission Gully route. submission the Council made on the proposed Transmission Gully route is largely free of risk from highway upgrade options. Our report found that liquefaction effects and tsunami, whereas the coastal the existing coastal route is exposed to more route is at considerable risk from these hazards. geological hazards and is likely to be subject to greater damage and more lengthy closures as a One of the early designs for the Transmission Gully result of landslides and liquefaction damage caused route favoured a bridge as the best means to cross by large earthquakes, especially those on the the Ohariu Fault. We were one of several expert Wellington and Ohariu faults. consultants to recommend that the road be built directly across the fault, as the preferred way to The proposed four-lane Transmission Gully route deal with such a fault crossing. runs between MacKays Crossing in the north and Linden in the south and has been costed at $1.025 billion (2008 dollars).

16 A closer look at our work on the Transmission Gully route GNS Science Annual Report 2010

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This is because it is faster and less expensive to Project overview repair an earth embankment than a damaged or Timeframe of this work: collapsed bridge in the event of fault rupture. In 1980s to present. this way, our investigations and recommendations have helped to shape the present design and Number of staff involved: Three to 15 at various stages, costings for the proposed highway. including peer review.

Value to users: Enables New Zealand Transport Agency to meet its benefit-cost guidelines and gives central government confidence to proceed.

Direct beneficiaries: Client commentary New Zealand Transport Agency and territorial “GNS Science worked collaboratively as an integral part of authorities in Wellington. the Opus-led team that delivered the preliminary geotechnical assessment for the Transmission Gully project. Long-term beneficiaries: Inputs from the GNS Science geologists were invaluable to All road users. The outcome the success of the project, and their greatest contributions will be an alternative safe, included: efficient route in and out of Wellington that will contribute • characterising the geological hazards along the route significantly to the regional and • investigating the active Ohariu Fault that straddles the national economy, and route, including an active splinter fault discovered during significantly improve the study connectivity within the region. • characterising the engineering geology along the route. These GNS Science inputs were critical in enabling Opus to develop a robust scheme for the New Zealand Transport Agency.”

P. Brabhaharan Technical Leader, Wellington Opus International Consultants

A closer look at our work on the Transmission Gully route 17 GNS Science Annual Report 2010

Student support

We support postgraduate students with scholarships and co-supervision. We co- supervise up to 110 students at any one time, with a total of 124 students being co-supervised during the past year. Of these, 26 held GNS Science scholarships for either MSc or PhD studies. We list these below.

Sarah Beanland Memorial Scholarships: Eric Bilderback University of Canterbury: PhD Amandine Chambord Victoria University of Wellington: PhD Ake Fegereng Supervisors: Dr Rupert Sutherland (GNS Science) University of Otago: PhD and Prof Euan Smith (VUW). Marc Giba Topic: The plate-tectonic evolution of the South University College Dublin: PhD Pacific since the late Cretaceous. Sally Grant Massey University: PhD Rosemary Cody Victoria University of Wellington: PhD Michael Guggenmos Supervisors: Dr James Crampton (GNS Science) Victoria University of Wellington: MSc and Dr Tim Naish (VUW/GNS Science). Sam Hemings-Sykes The stability of the Antarctic ice sheet over Topic: Victoria University of Wellington: MSc the past 4.5 million years. Simon Hills Kevin Lee Massey University: PhD University of Waikato: PhD Jérôme Leveneur Supervisors: Dr Matthew Stott and The University of Auckland: PhD Dr Xochitl Morgan (GNS Science), Dr Ian McDonald (Waikato). Jeffrey Lyford Topic: The genomic, physiological, and ecological University of Hawaii at Manoa: MSc characterisation of candidate division OP10. Catriona Menzies University of Southampton: PhD Hannu Seebeck University of Canterbury: PhD Peter Murmu Supervisors: Dr Andy Nicol (GNS Science) Victoria University of Wellington: PhD and Prof Jarg Pettinga (Canterbury). Dean Podolsky Topic: The relationship between active faulting University of Canterbury: PhD and volcanism in the Taupo Volcanic Zone. Rachel Rhodes Other GNS Science scholarships: Victoria University of Wellington: PhD Armando Rodado Travis Ancelet Massey University: PhD Victoria University of Wellington: PhD Claire Shepherd Ben Andrew Massey University: MSc University of Waikato: MSc Michael Tayler Scott Barnard University of Waikato: MSc University of Canterbury: PhD Richard Taylor Jan Baur Victoria University of Wellington: MSc Victoria University of Wellington: PhD Victoria Voganov University of Hawaii at Manoa: MSc

18 Student support GNS Science Annual Report 2010

Organisational structure

Our organisational structure places a focus on the sectors where our research is applied, rather than individual science disciplines.

Geological time Geological Resources Paleoclimate Kevin Faure Paleodiversity Hydrocarbons CO sequestration Human Resources 2 Geothermal Tony Stone Minerals Geomicrobiology Ocean exploration Finance Gas hydrates Graham Clarke

Rafter Radiocarbon Laboratory Strategy Stable isotope laboratory Desmond Darby Water dating laboratory Groundwater Soil carbon cycling Chief Executive National Isotope Centre Accelerator mass spectrometry Alexander Malahoff Frank Bruhn Ion-beam analysis Nanotechnology Non-invasive scanning Ma-ori Strategy Rawiri Faulkner Origin of New Zealand’s crust Geological structure Mapping and spatial data Research Tectonic deformation Ian Graham Quaternary processes Geohazard monitoring Earthquake processes Business Development Geothermal engineering Rob Johnston Volcanoes Landslides Tsunami Natural Hazards Hazard assessment Terry Webb Risk mitigation

Natural Hazards Platform, Information Technology, Software Development, Database Management, Records Management, Library, Photography, Graphics, Outreach, Communications, Marketing, Intellectual Property Management, Asset Management, Financial Analysis, Office Management

Organisational structure 19 GNS Science Annual Report 2010

New public-good research contracts

Most of our funding for public-good research comes from the Foundation for Research Science and Technology (FRST), from CRI capability funding, and from the Royal Society of New Zealand.

Highly cited Nature paper Public-good research funding was $34.5 million in Backbone funding We have been awarded a 10-year FRST contract Eight GNS Science staff, led the past year, which is close to 50% of Company by Tim Naish and Richard revenue. Of this, we spent $4.4 million on at $3.88 million-a-year for maintenance and Levy, contributed to a Nature collaborative projects with universities. (We also development of eight nationally significant paper about the behaviour of received $1.2 million from universities to support databases. The contract covers the National Antarctic ice sheets, which has their work.) Petrology Reference Collection and PETLAB received exceptional reviews. It was listed by Thomson database; the National Groundwater Monitoring Reuters as one of the year’s Groundwater research Programme; the New Zealand Fossil Record File; top one percent of papers in FRST has awarded the GNS Science groundwater the Geological Map of New Zealand; the National its field. team, led by Chris Daughney, $300,000-a-year for Paleontological Collection and associated three years to develop tools for more effective databases; the New Zealand Earthquake management of groundwater resources. These Information Database; the New Zealand will use hydrological tracers and numerical Geomagnetic Database; and the New Zealand groundwater models. Volcano Database. All of these databases are accessible to the public. Our groundwater team also won $169,000 over two years from FRST’s Envirolink fund. Together Antarctic drilling to proceed with ESR, our team will develop a range of practical A multi-year programme to collect seabed drill tools and applications for delineating capture zones cores from under the Ross Ice Shelf in Antarctica for hydrological features. GNS Science’s groundwater has been granted FRST funding for eight years at research has the strong backing of regional and $1.36 million-a-year. The multi-institutional local authorities throughout New Zealand. (Victoria, Otago and Canterbury universities, and NIWA) programme supports the highly successful, Gas hydrates multi-national ANDRILL project. Called “Past We won FRST funding of $1 million to undertake a Antarctic Climate and Future Implications”, it will two-year research programme on gas hydrates off recover and analyse a number of seabed cores from the New Zealand coast. In conjunction with NIWA, under the ice at Coulman High, 150km northeast the University of Otago, The University of of Scott Base. The aim is to investigate past Auckland and the New Zealand Centre for Antarctic climates and understand the behaviour Advanced Engineering, the research aims to of ice sheets under a range of climate scenarios. understand the nature of the gas hydrate resource Results will be of international significance and will within New Zealand’s exclusive economic zone, help to make global climate models more precise. ultimately leading to exploratory drilling. We are undertaking this project with the essential support of Antarctica New Zealand.

20 New public-good research contracts 1 2

Marsden Fund Tourism in geothermal areas 1 We succeeded in getting seven bids into the second Under a FRST-funded TechNZ project, we are The ANDRILL drilling operation round of this highly prestigious blue-skies fund this collaborating with the Whakarewarewa Village on the Ross Ice Shelf, year. This is a success rate of 29%, against an Charitable Trust to investigate hazards and Antarctica. This project will average for all applicants of 23%. Our research environmental impacts related to the use of resume operations in late 2010 topics were microbial controls on metal sequestration, geothermal features at Whakarewarewa and at Coulman High, 150km northeast of Scott Base. prehistoric earthquakes, gas hydrates, Te Puia in Rotorua. The results will support drilling, mountain-building, submarine volcano recommendations on how the area can be further 2 collapse, and bacterial geothermometers as developed commercially without adversely This image shows a region of indicators of climate change. impacting geothermal features or safety. the seafloor east of Hawke’s Bay, which is a potentially rich Last year we succeeded with two fast-start and one source of gas hydrates. In early full Marsden bids. Topics included investigating 2011, we will join a number of semi-conductor nano-crystals, understanding the international research organisations to survey this nature of the mantle beneath tectonic plate collision area and other prospective zones, and fluid flow in subduction zones. areas off the North Island’s East Coast to learn more about Pre-Seed Fund the extent and nature of New Seven projects are supported by FRST’s Pre-Seed Zealand’s gas hydrate Accelerator Fund (PSAF). Our decision-making resources. processes and ongoing monitoring of this funding received a very favourable review from a FRST- appointed assessment panel. Our most celebrated project supported by this fund is Globe ClaritasTM, which has since secured about 9% of the global market for its specialist seismic processing software. Our excellent record with PSAF is ample evidence that we are able to use devolved funding effectively. The aim of this fund is to help transform taxpayer-funded research into viable commercial prospects.

New public-good research contracts 21 GNS Science Annual Report 2010

Our commercial activities – applying our science

Revenue from our work in consulting, sales of software, and laboratory services was $21.7 million for the year to 30 June.

Our total commercial revenue has increased by When our staff work on other people’s problems 69% over the past five years. The international and opportunities, they bring back new knowledge portion of our commercial revenue has increased and skills to New Zealand. by 270% in the same period, reflecting the international demand for our skills. There are many instances where we have been able to apply fresh knowledge acquired on overseas Fee-for-service consultancy and projects provide contracts to avert problems arising in New Zealand. most of our commercial revenue. Product sales and This has been the case in earthquake mitigation laboratory services provide the remainder. Product consultancy and in geothermal energy developments sales consist largely of database software products, in the central North Island. This can substantially and non-invasive scanning technology. reduce costs for our clients.

Commercial work helps in setting research priorities Revenue from our international work allows us and it also stimulates our researchers who are keen to invest in leading-edge scientific equipment so for their work to be used. Importantly, it provides we are able to match, and in some cases better, essential revenue to sustain our operation, for equipment standards elsewhere in the world. investment in new infrastructure, and for growth. This improves the range and quality of services Overseas work brings benefits to New Zealand we can offer our New Zealand clients. Importantly, This year our international work was recognised our overseas work supports New Zealand’s trade when we won the Exporting Services category of and diplomatic interests. the 2010 Wellington Gold Awards. This is the fastest growing part of our business. In the past year, we Seismic processing software earned export revenue of $7 million and we expect Our in-house developed seismic processing TM this figure to rise steadily during the next three years. software, Globe Claritas , has grown its revenue five-fold in the past two years. It currently has The main overseas revenue-earning areas are in approximately 9% of the global market for seismic geothermal energy development, mitigation of processing software. The Globe ClaritasTM business geological hazards, marine geology, radiocarbon unit generates revenue through selling perpetual dating, groundwater, non-invasive scanners for licences for the software and offering updates, industry, and specialist software. New Zealand customer support and training. derives significant benefits from our overseas work. The business has expanded through international contracts and partnerships, selective marketing to the offshore seismic data acquisition industry, and through its links with universities.

22 Our commercial activities – applying our science GNS Science Annual Report 2010

The software is used for petroleum and mineral Building capacity in Indonesia Our Globe ClaritasTM seismic exploration. It turns raw seismic data into The Government’s international aid agency, processing software is used in information that geophysicists can use in the quest New Zealand Aid Programme, has pledged a growing number of countries. to find new deposits of petroleum and minerals. support to a partnership between gns Science Here Guy Maslen of the The Claritas team includes developers who are and the University of Gadjah Mada in Indonesia Claritas team discusses subsea geophysical data with constantly improving the software to take to increase disaster risk management capacity. postgraduate student Roopa advantage of the growth in computer processing The project will involve delivering training and Srinivasan. power. Data is commonly processed on large mentoring to local government officials and other clusters of parallel computers built using thousands agencies in Indonesia. of low-cost Intel processors running the open- source operating system Linux. A multi-year pilot programme, starting in early 2011, will see New Zealand specialists providing A number of leading European universities have a series of workshops, both in Indonesia and New adopted Claritas as their preferred teaching tool for Zealand, covering a number of themes. These graduate and postgraduate students in geophysics include developing policy and implementation and petroleum geology. Currently about 100 top frameworks, increasing the resilience of lifelines, geophysics students in Europe are fully conversant multi-hazard risk assessment, disaster with Claritas and will take this knowledge into the preparedness, and designing and building better industry. It is a strategy that we hope will result in buildings. We will partner with other research Claritas becoming the ‘industry standard’ for organisations, universities, and companies such seismic processing. as Beca International Holdings Ltd to deliver the training. The pilot project will initially involve Air pollution monitoring and analysis working with up to three Indonesian provinces. We work with regional councils and the New Zealand Transport Agency (nzta) to monitor and analyse air pollution. Using our unique ion-beam capabilities, we analyse air filters to determine the amount and type of small particles in the air. This reveals what elements are present, their proportions, and where they came from. Armed with this information, councils are better able to manage air quality in their region. We also work with nzta to monitor air quality in road tunnels and at some locations where traffic volumes are heavy. It is important for nzta to know that air quality at these locations is within prescribed criteria.

Our commercial activities – applying our science 23 GNS Science Annual Report 2010

Kevin Faure 04 General Manager, Geological Resources Group PhD, The University of Cape Town Management Kevin leads the Hydrocarbons, Geothermal, Ocean team Exploration, and Paleontology and Environmental Change sections. Kevin is a geochemist, specialising in stable isotope geochemistry. He joined GNS Science in 1997 and has done research on New Zealand ore deposits, submarine volcanoes, gas hydrates, and geothermal springs. He had previously worked as an exploration and mining geologist in South Africa, and as a research scientist at the Geological Survey of Japan.

Frank Bruhn 05 Our managers have mainly science General Manager, National Isotope Centre backgrounds except for the specialist legal, PhD, Bochum University, Germany Frank is the leader of GNS Science’s National finance and HR areas. The team has a strong Isotope Centre (NIC). The NIC is New Zealand’s external focus, putting as much effort into premier source of applied isotope science capability, comprising research teams and external relationships as on internal operations. commercial service units in the Isoscan, Environmental Isotopes, and Groundwater sections. Frank is a geochemist, specialising in the use of isotopes as tracers in biogeochemical cycles. He joined GNS Science in 2002 after having worked for the CSIRO in Australia and a Alexander Malahoff 01 radiocarbon dating laboratory in Germany. Chief Executive PhD, University of Hawaii Graham Clarke 06 BSc, MSc and DSc (Hon), Victoria University of Chief Financial Officer Wellington CA, BCA, Victoria University of Wellington Alex leads the Management Team and oversees Graham leads the Company’s finance operations the day-to-day management of the Company. He ensuring appropriate policies, procedures and directs the team in strategy, policy, investment, and practices are developed and maintained. His team science and engineering programmes. Alex is a provides the full range of financial services to geophysicist and, before taking up his present role support the Company’s operations, including in 2002, he served as Professor of Oceanography financial reporting and advice to management and and Chair of the Ocean Engineering Department to the Board to allow them to effectively undertake at the University of Hawaii. He was also Director of their respective roles. His team also takes the Hawaii Undersea Research Laboratory. Before responsibility for various operational aspects that he was Program Director, Marine Geology including procurement, property, insurance, and and Geophysics at the Office of Naval Research internal audit. Graham is a Director of Meatvision and Chief Scientist at the National Ocean Survey, Limited, one of our joint venture operations. NOAA in the US. Rob Johnston 07 Desmond Darby 02 General Manager, Business Development General Manager, Strategy BSc, Dip ORS, Dip Tchng PhD, State University of New York at Stony Brook Rob’s portfolio includes managing the Company’s Desmond leads our strategy formation across the commercial operations and intellectual property government and the private sectors, and advises the issues. Rob joined GNS Science in 2004. He has Chief Executive in these areas. He also manages the extensive experience in managing information public relations and outreach staff. He previously systems, corporate functions and processing managed our crustal dynamics team, and led the operations in New Zealand companies. This major research programme on The Effects of Plate includes senior positions with Tasman Forestry Tectonics on New Zealand. Desmond is a Director and with Public Trust. of New Zealand Synchrotron Group Ltd and he Ian Graham 08 was Chair of FRST’s Postdoctoral Fellowship General Manager, Research Advisory Committee. PhD, Victoria University of Wellington; Terry Webb 03 MMinTech, University of Otago General Manager, Natural Hazards Group Ian is responsible for maintaining an overview of the PhD, University of Canterbury public-good research undertaken across the Terry leads the Natural Hazards Group which organisation. He monitors the quality and delivery undertakes research and consultancy in of contracted research, seeks ways to ensure viable earthquakes, volcanoes, landslides, tsunami, and research revenue streams, and ensures that lines of geological mapping. He has been with GNS Science communication with government funding bodies, since 1980. A seismologist by training, Terry other Crown Research Institutes and universities are specialises in seismic and tsunami hazard and risk open and constructive. Ian is an isotope geochemist assessment, and international disaster risk reduction. with specialist expertise in volcanology, mineral deposition, climate change, and terrane evolution.

24 Management Team 01 02 03 04 05

06 07 08 09 10

11 12 13

Rawiri Faulkner 09 Tony Charles 12 General Manager, Ma-ori Strategy Manager, Information Services BA, Victoria University of Wellington BA, Victoria University of Wellington Rawiri has the role of building strong relationships Tony joined GNS Science in 2008. His portfolio between GNS and iwi to seek ways of unlocking the includes managing the Company’s Information innovation potential of iwi/Ma-ori communities for Services group comprising IT Infrastructure, mutual benefit. He also provides support forGNS Applications, Records and Library Information Science staff and management to develop Ma-ori Services. He has extensive experience in the research and innovation as an integral part of what Information Technology arena, and building and we do. Rawiri brings extensive experience to GNS managing information systems, within New Science which includes previous positions at the Zealand and internationally. This includes senior Foundation for Research Science and Technology positions with the Department of Conservation, and the Ministry of Research Science and Inland Revenue, and in the banking industry in Technology, as well as a variety of roles in local New Zealand, the Middle East, and Malaysia. government. He also holds a number of governance 13 roles. He has iwi affiliations to Nga-ti Whakaue, Kelvin Berryman Manager, Natural Hazards Research Platform Nga-ti Huia, Nga-ti Toa Rangatira and Ngai Te Rangi. PhD, Victoria University of Wellington Tony Stone 10 Kelvin manages the newly-formed research General Manager, Human Resources platform that integrates all of New Zealand’s Tony joined GNS Science in 2003 and was government-funded research in natural hazards. appointed General Manager, Human Resources The portfolio includes geological and weather- in 2007. He has a Diploma in Industrial Relations related hazards, integrated natural hazard risk, from Victoria University and is a trained mediator. resilient engineering and infrastructure research, He is also a mentor for the Human Resources and societal and land-use planning aspects of Institute of New Zealand mentoring programme. natural hazard mitigation. Kelvin has been with Tony’s responsibilities include payroll, training, GNS Science since 1976, and has a research recruitment, health and safety, and employee background in geology with specialisations in relations. Prior to joining GNS Science, Tony held mapping, active fault studies, tsunami deposits, HR positions in a number of private, public and and hazard and risk assessment. health sector organisations.

Peter Barker 11 Barrister and Solicitor General Counsel LLB, Victoria University of Wellington As General Counsel, Peter provides legal and commercial advice to GNS Science. He is a commercial lawyer with experience in intellectual property. Peter has been a partner in a national law firm, and has worked in the finance and entertainment industries.

Management Team 25 GNS Science Annual Report 2010

Human Workforce planning We have implemented a comprehensive workforce Resources planning programme. We gather a range of information to help in identifying trends in our workforce. It is also increasingly important in the development of medium and long-term plans to ensure staff capabilities are maintained at optimum levels. Understanding any changes in the demographic makeup of our workforce has enabled us to act early to ensure we have balanced and effective teams.

Recruitment We manage our recruitment through an internet- based recruitment system, which has been The continued success of GNS Science extremely successful for managing the application depends on having the right staff with the process. It also allows those interested in working with us to be advised automatically by email of right skills in the right places. positions that might be of interest to them.

We recruit locally and internationally. For overseas recruits, we are mindful that it can be a major career and family decision to relocate to New Zealand. We therefore make every effort to reduce We continuously improve our human resources “We pride ourselves on the barriers and uncertainties in this process. This gender balance and ethnic policies and processes to ensure our workforce is includes bringing a prospective employee and their diversity among our new productive and safe. We are committed to being a partner to New Zealand to meet our staff and see recruits, and the way we good employer and our policies and procedures their future working environment. When overseas address the needs of our staff.” ensure we meet our obligations in this regard. We recruits accept a job offer, we assist with travel and pride ourselves on the gender balance and ethnic relocation arrangements. diversity among our new recruits, and the way we address the needs of our staff. As at 30 June 2010, When staff resign, we conduct exit interviews and GNS Science employed 369 FTE (390 staff). the findings are reviewed by management. Any significant issues arising from such interviews are Our equal employment opportunity (EEO) policy addressed promptly for the benefit of other staff. ensures all employees are given an equal chance to make the most of their talents and abilities. We are Staff induction committed to ensuring that our decisions relating Several times each year we run induction courses “We are committed to ensuring to recruitment, progression, and training are made that all decisions relating to for new employees. Courses include presentations recruitment, progression, and on the basis of merit. from senior management and specialist staff, and training are made on the basis tours of our facilities. This provides new staff with of merit.” We value our staff and our conditions of a thorough overview of the organisation and its employment reflect this. They include generous operations, and the opportunity to meet managers sick leave, income protection insurance, and life in a relaxed environment. Staff feedback indicates insurance cover. Our offices feature free parking, that these courses are extremely valuable in helping cycle storage facilities and showers. We also have recent recruits settle in to the organisation. arrangements with gyms and sports facilities to enable staff to enjoy membership at discounted rates. Professional development We encourage ongoing skill development by Relationship with the PSA running a wide range of courses for staff including The Public Service Association (PSA) is the union presentation skills, project management, and representing staff and membership is voluntary. performance management. The PSA represents 47% of our staff. We have an excellent relationship with the PSA and this makes Our in-house Leadership Programme has a significant contribution to the successful continued to be a success in developing future operation of our organisation. managers and team leaders. We also use expert outside providers for intensive off-site leadership This year we agreed on a new Collective training for selected staff and management. We Employment Agreement. This agreement is provide support for staff to attend international negotiated every three years. As part of this we conferences and courses in their specialist fields. formalised our relationship with the PSA with a ‘Partnership for Quality’ statement. This spells out the nature of our relationship, and its principles and desired outcomes.

26 Human resources GNS Science Annual Report 2010

Staff turnover for year ended 30 June 2010 Source of appointments to permanent positions

2010 5.9% 2010 2009 2008 2007 2006 2009 6.5% New Zealand private sector 13 8 16 19 23 New Zealand government 6 8 10 2 5 2008 8.4% New Zealand university 6 10 3 6 9 2007 8.4% Overseas 16 24 21 11 6 2006 8.7% Total 41 50 50 38 43

Staff departures for the following opportunities

2010 2009 2008 2007 2006 Private sector 3 0 7 1 3 Working overseas 4 7 3 3 1 Government/university 1 1 2 5 7 Full-time study 1 3 1 0 1 Career change 1 0 1 2 0 Lifestyle (includes family, retirement, returning overseas, or relocating within New Zealand) 8 11 10 12 12 Other 5 2 4 3 3 Total 23 24 28 26 27

Remuneration and promotion Flexibility and work design Our system for remuneration increases and We support a balance between personal and work promotion is robust and transparent. The commitments and endeavour to meet staff needs management team assesses all staff annually, and where practicable. Staff have indicated, formally individual remuneration increases are awarded and informally, that our progressive attitude to based on performance. Our remuneration bands working arrangements is a feature of GNS Science are based on market data supplied by the Hay that they value. This supportive attitude helps to Group and MHR Global (Cubiks Rewards), and attract and retain good staff. are updated annually. Personal and family security In addition to the remuneration review process, Through group life and income protection science staff apply for progression through the insurance schemes, we provide financial assistance science grades. A panel of senior scientists assesses for employees and their families in the event of applications and makes recommendations to death or injury. management. This year we introduced another career step for technicians to better acknowledge We assist employees with retirement planning the contribution they make to our organisation. by holding retirement seminars. Some staff are members of the Government Superannuation Fund Health and Safety and the Individual Retirement Plan, and 52% of all We make every effort to ensure a safe environment staff contribute to KiwiSaver schemes. We also offer for our staff and visitors. Health and safety is a a group scheme discount arrangement for medical standard agenda item at all management and insurance, which is used by 24% of staff. Board meetings and each of our offices has a health and safety committee that meets regularly to review procedures and policies specific to that workplace. Our health and safety resources are available on our intranet. All staff engaged in field work are provided with appropriate outdoor clothing and equipment.

We provide a wide range of training related to health and safety, including four wheel drive, first aid, working at heights, quad bike, traffic management and stress management.

We review our training regularly to ensure it meets the needs of staff and the wide variety of workplace situations. For some years we have had an organisation providing independent on-site support for staff.

Human resources 27 GNS Science Annual Report 2010

Collaborations and partnerships

GNS Science is highly collaborative. We work with a wide range of organisations in New Zealand and internationally. The following list is not exhaustive, but it reflects the diversity of our activities and the breadth of our relationships.

Natural Hazards Research Platform Earthquake and Natural Hazards New Zealand The GNS Science-led Natural Hazards Research business cluster Platform was set up by government to provide We are a member and co-chair of the Earthquake secure long-term funding for natural hazards and Natural Hazards New Zealand Business research in New Zealand, and to help research cluster, a network of more than 50 consultants, providers and end users work more closely researchers, manufacturers, and educators together. Our partners in the Platform are FRST, specialising in national and international work in NIWA, The University of Auckland, Massey earthquake engineering, seismology, risk reduction, University, the University of Canterbury, and and recovery projects. Recent activities have mainly Opus International Consultants. Platform research focused on major natural disasters in the Asia- develops quantitative estimates of geological and Pacific region. weather-related hazards such as earthquake, Visit: www.earthquakeengineering.com volcano, flood, snow, wind, rainstorm, landslide, and www.naturalhazards.co.nz and tsunami activity. It also evaluates how well New Zealand society is prepared for these perils. Joint Centre for Disaster Research In 2006 Massey University and GNS Science set Determining Volcanic Risk in Auckland (DEVORA) up a Joint Centre for Disaster Research. The centre We collaborate with The University of Auckland undertakes multi-disciplinary, applied teaching and in a seven-year, $5 million project to better research focusing on social and behavioural understand the hazards and risks associated with sciences. This is aimed at understanding the a future volcanic eruption in Auckland. The impacts of disasters on communities, improving Earthquake Commission is the foundation funder risk management and enhancing community of this collaboration, with additional funding from preparedness, response and recovery from natural Auckland Regional Council. hazard events. Based at Massey’s Wellington campus, the centre also undertakes commercial Defining earthquake risk in Wellington work for clients in New Zealand. ‘It’s Our Fault’ is the most comprehensive study of Visit: www.disasters.massey.ac.nz Wellington’s earthquake risk to date. Its objective is to position Wellington as a more resilient city with Links with Indonesia a deeper understanding of the likelihood, nature The New Zealand Government has established a and possible impacts of its earthquakes. Project comprehensive partnership with the University of collaborators and funders include GNS Science, Gadjah Mada in Indonesia. We work together on the National Institute of Water and Atmospheric a wide range of earth science topics including Research (NIWA), Victoria University of earthquake, landslide, tsunami, flood and volcanic Wellington, the University of Canterbury, the hazards, geothermal energy, and disaster risk Earthquake Commission, the Accident management initiatives. Compensation Corporation, Wellington City Council, and the Wellington Region Civil Defence and Emergency Management Group.

28 Collaborations and partnerships GNS Science Annual Report 2010

Working with Vietnam Reconstructing past Southern Hemisphere climate We help to strengthen New Zealand’s 35 years In collaboration with Victoria University of of diplomatic relationships with Vietnam through Wellington and NIWA, we operate an ice core collaborative work with the Water Resources storage and analytical facility at our National University, Vietnamese National Committee on Isotope Centre. It analyses ice cores from Large Dams, the Institute of Geophysics and other Antarctica and New Zealand glaciers using isotopic government departments. GNS Science and the and geochemical techniques as well as extraction Vietnamese Academy of Science and Technology of greenhouse gases to ‘retro-monitor’ Southern have worked together in a wide range of earth Hemisphere climate. The initiative recognises the science areas, including earthquake, landslide and importance of Antarctica as a driver of global tsunami hazards. climate, and New Zealand’s location at the boundary between northern and southern Emergency management groups hemisphere climate systems. We regularly provide advice on volcanic activity to civil defence and emergency management groups, Keeping track of groundwater quantity and quality and to the Department of Conservation in the We work with regional councils to model geology, North Island. We play key roles in the Central and groundwater flows, to assess the groundwater Plateau Volcanic Advisory Group and the Auckland available for use. Volcanic Science Advisory Group. We also work with all of the regional councils and Advanced degree in petroleum geosciences territorial authorities in New Zealand to manage GNS Science and Victoria University of Wellington the National Groundwater Monitoring Programme. offer a postgraduate degree in petroleum This partnership fosters sustainable use of New geosciences. The two-year Masters degree is open Zealand’s groundwater resources and provides a to all earth science students with the aim of national perspective on groundwater quality. “We collaborate with various addressing the shortage of geoscientists in the Ma-ori communities to better - petroleum exploration industry. Geothermal resources and Maori communities understand the traditional uses We work with Ma-ori communities to help build of New Zealand’s geothermal resources, and how they can Seafloor resources within New Zealand’s EEZ an understanding of low-temperature geothermal be applied in twenty-first Gaining new knowledge and improved energy resources on their land. In particular we century technology.” understanding of New Zealand’s vast offshore collaborate with groups such as Whakarewarewa territory is a major programme within GNS Charitable Trust (Rotorua) and He Oranga Mo Science. To achieve this, we collaborate with Nga Uri Tuku Iho Trust (East Coast). Our work in NIWA, the National Ocean and Atmospheric this area includes improving the understanding of Administration, Woods Hole Oceanographic traditional Ma-ori knowledge and use of geothermal Institute, IFM-Geomar and GFZ of Germany, resources, and how this can be incorporated in the University of Hawaii, and other international twenty-first century technology. science agencies. Life in the extremes Novel scanners for the food industry With our New Zealand and international With ANZCO Foods Ltd, we operate Meatvision, collaborators we have made significant advances a joint venture company to develop and in understanding the diversity of microbial life in commercialise innovative scanning technology New Zealand’s volcanic and geothermal areas. Our for the food industry. geobiology group has had several papers published in high profile journals, including the prestigous Australian Synchrotron Nature. The team continues to isolate novel GNS Science is a member of the New Zealand microorganisms and explore the genomics of Synchrotron Group Ltd, which is a foundation extremophilic bacteria. They are also researching partner of the Australian Synchrotron. The thermophilic degradation of cellulose for biofuels. stadium-sized scientific facility in Melbourne was commissioned in 2007. It creates beams of intense Long-term relationship with Te Papa light for imaging structures down to the molecular We are a Foundation Corporate Associate of scale. Synchrotrons are an increasingly important Te Papa Tongarewa, the Museum of New Zealand. tool for research in almost all areas of science. As We provide the museum with scholarship, a foundation partner, New Zealand scientists have collections, and staff time. We helped build access to the facility and the opportunity to be at Awesome Forces, the museum’s most popular the forefront of scientific development. permanent attraction. We also helped develop Deep Ride, a motion simulator vehicle that explores Nanotechnology and advanced materials the ocean floor northeast of New Zealand. We are a member of the MacDiarmid Institute for Advanced Materials and Nanotechnology, one of the New Zealand Government’s Centres of Research Excellence.

Collaborations and partnerships 29 GNS Science Annual Report 2010

Board of Directors

Tom Campbell 01 Jane Taylor 04 Chairman (from 1 July 2010) LLB (Hons), LLM, Dip. Acc BSc (Appointed 1 July 2008) (Appointed 1 July 2009) Queenstown Queenstown Jane is a Queenstown-based barrister specialising in Tom is a Director of Todd Corporation and of the civil and commercial law and equity. She is a former New Zealand Standards Council. He is a consultant Chartered Accountant with experience in business to Rio Tinto. He was formerly Managing Director and share valuations, corporate finance, insolvency of Comalco in New Zealand. He was also formerly and company reconstruction, and litigation support. Chairman of New Zealand Aluminium Smelters She is currently the Deputy Chair of the Research and Chairman of Anglesey Aluminium in the UK. and Education Advanced Network Limited and a Director of Lakes Leisure Limited. She is also an Ross Butler 02 Deputy Chair Independent Hearings Commissioner for the BA (Economics), Graduate Diploma in Applied Queenstown Lakes District Council. Jane is a Finance and Investments member of the Institute of Directors, the (Appointed 1 July 2006) New Zealand Law Society, and the Institute Nelson of Chartered Accountants of New Zealand.

Ross is a professional company director. He is John Hercus 05 Chairman of the Council of Nelson Marlborough QSO, MSc Institute of Technology, Chairman of the Securities (Appointed 1 July 2008) Commission Code Committee, and Deputy Chair of the Board of Swimming New Zealand. Ross is John is a former chief executive of the Christchurch Chair of the Property Insight joint venture, and a Polytechnic. In that time he pioneered a number of Director of Marlborough Lines Limited, and the reforms including the provision of tertiary Nelson Bays Enterprise Cluster. Merlot Limited, education for science technicians and technologists. his own consulting group, provides interim chief He has also worked for two decades internationally; executive, governance, and project services. for UNDP, UNESCO, ILO, and the Asian John Walters 03 Development Bank as an international expert BA, LLB in higher education. His governance experience (Appointed 1 July 2007) includes directorships at NIWA, MetService, and Auckland the Fire Service Commission. He has also held John is a senior lawyer in Auckland. He is the directorates in companies involved in technology Principal of Walters Law Solicitors and acts for development and international education. a wide range of private and corporate clients specialising in commercial and property law. He is a Director of Aotearoa Credit Union, and of Te Rau Matatini Ltd. John’s iwi affiliations are Te Aupouri, Te Rarawa, and Nga-puhi.

30 Board of Directors GNS Science Annual Report 2010

01 02 03 04 05

06 07 08 09 10

Hon Ken Shirley 06 Con Anastasiou 09 BSc Chairman (retired 30 June 2010) (Appointed 1 July 2010) BA, LLB (Hons) Wellington (Appointed 1 January 2001) Wellington Ken is a former Minister of Fisheries, and Associate Minister of Agriculture and Forestry, and Health. Con is the principal in his own law firm in He is currently Chief Executive of the New Zeland Wellington. He specialises in corporate commercial Land Transport Forum and is a former Chief law, intellectual property, and resource management. Executive of the Researched Medicines Industry He is a member of the New Zealand Law Society, Association, the New Zealand Forest Owners a Fellow of the New Zealand Institute of Association, and Organics Aotearoa NZ. He is a Management, a member of the New Zealand member of the Human Rights Review Tribunal. Institute of Directors, and an Associate of the Arbitrators and Mediators Institute of New Zealand. Dr Claire McGowan 07 Con is also Chairman of Airways Corporation of PhD, MBA New Zealand Limited. (Appointed 1 July 2010) Auckland Ellen Förch 10 Claire is Founder and Managing Director of PhD (Appointed 1 July 2004, retired 30 June 2010) Commercialisation Advisors Limited (COMMA). Auckland Her research training was in molecular microbiology and her MBA project in risk Ellen is Director of Research at Auckland management of pharmaceutical projects was University of Technology and Head of the Research undertaken with the Pfizer Pharmaceuticals Office. Her activity is focused on guiding institutional European Research Centre in the UK. Claire has research strategies, building research culture and experience in the New Zealand venture capital and developing research funding strategies. Previous investment banking industries, and now works with positions include Director of Research the NZTE-funded Escalator Investment-Ready Advancement in the VC’s Office at The University Programme, assisting entrepreneurs to prepare of Auckland, Manager of Environmental for capital-raising. Monitoring at Hawke’s Bay Regional Council, Research Manager at the Open Polytechnic of Professor Steve Weaver 08 New Zealand, and a Programme Manager at the BSc Hons, PhD, DSc, FGS, FNZIC, FRSNZ Foundation for Research Science and Technology. (Appointed 1 July 2010) She is also a longstanding Director of the Christchurch , Nelson. Steve is Assistant Vice-Chancellor (Research) and former Head of the Department of Geological Sciences at the University of Canterbury where he is also a member of the University Council. Steve has published extensively on the geology of New Zealand, Antarctica and East Africa, specialising in igneous petrology, volcanology, isotope geochemistry, tectonics, and environmental science.

Board of Directors 31 GNS Science Annual Report 2010

GNS Science has formal Memoranda of International Understanding (MOU) with the following linkages organisations: • Alfred Wegener Institute of Polar and Marine Research (awi) • Australian Research Council • Beca International Holdings Limited • Chilean National Commission for Scientific and Technical Research • China Earthquake Administration • China Geological Survey • Geological Survey of Japan • GeoScience Australia • Hebei Bureau of Prospecting and Development of Geology (China) • Helmholtz Centre Potsdam gfz German Research Centre for Geosciences (previously GeoForschungsZentrum Potsdam) • Institute of Geology and Institute of Mineral Resources (China) • International Atomic Energy Agency • Japan Marine Science & Technology Centre (jamstec) • Jeonam Regional Environmental Technology GNS Science represents New Zealand on the following committees or international groups: Development Centre (jetec) in South Korea • andrill – a multinational investigation of • Korean Institute of Geology, Mining and Antarctica’s role in Cenozoic-Recent global Minerals (kigam) environmental change • Korean National University • Australia New Zealand Minerals and Energy • Massey University Council (anzmec) • Ministry of Geology and Mineral Resources, • Chief Government Geologists Conference China (mgmr) (cggc) • Ministry of Civil Defence and Emergency • Incorporated Research Institutions in Seismology Management (mcdem) (iris) • Nankai University (China) • Integrated Ocean Drilling Program (IODP) • National Ocean and Atmospheric Administration • International Atomic Energy Agency Regional (noaa) Co-operative Agreement (iaea rca) • New Energy and Technology Development • International Association of Seismology and Organisation, Japan (nedo) Physics of the Earth’s Interior (iaspei) • New Zealand Centre for Advanced Engineering • International Association of Volcanology and • New Zealand Transport Agency Chemistry of the Earth’s Interior (iavcei) • Pacific Marine Environmental Laboratory • International Continental Scientific Drilling (pmel) in Hawaii Program (ICDP) • Seoul National University • International Energy Association (iea) • Taranaki Regional Council Geothermal Experts’ Group • Tohoku University (Japan) • International Union of Geodesy and Geophysics • Universitas Gadjah Mada (Indonesia) (iugg) • University of Canterbury • International Union of Geological Sciences • University of Hawaii at Manoa (iUGS) • University of La Reunion (France) • National Association of Geochemistry and • US Department of Commerce Cosmochemistry • US Geological Survey • Scientific Committee of Antarctic Research • Victoria University of Wellington (scar) • Vietnamese Academy of Science and Technology • United Nations Convention on the Law of the (vast) Sea (unclos) • Woods Hole Oceanographic Institute (usa) and niwa (joint MOU) gns Science also has strong research and collaborative links with many international These MOUs provide for the exchange of staff universities. involved in collaborative projects as well as partial funding for research initiatives.

32 International linkages Directory

Principal Location and Registered Office Directors Business Development and Marketing Managers 1 Fairway Drive Tom Campbell Lower Hutt 5010 (Chairman) Geohazards PO Box 30368 Dr Noel Trustrum Lower Hutt 5040 Ross Butler Email: [email protected] New Zealand (Deputy Chairman) Waverley Parsons Email: [email protected] Tel: +64 4 570 1444 John Hercus Fax: +64 4 570 4600 Brenda Rosser Email: [email protected] Dr Claire McGowan Email: [email protected] Hon Ken Shirley Non-invasive Scanning Technologies and Jane Taylor Groundwater Other Locations Joe Manning John Walters Email: [email protected] Wairakei Research Centre Dunedin Research Centre 114 Karetoto Road 764 Cumberland Street Prof Steve Weaver Geothermal Energy Wairakei Private Bag 1930 Andrea Blair Private Bag 2000 Dunedin 9054 Email: [email protected] Taupo 3352 New Zealand Executive New Zealand Tel: +64 3 477 4050 Hydrocarbons Tel: +64 7 374 8211 Fax: +64 3 477 5232 Chief Executive Dr Anne Raymond Fax: +64 7 374 8199 Email: [email protected] Dr Alexander Malahoff Email: [email protected] Email: [email protected] General Manager Radiocarbon Dating and Natural Hazards Group Environmental Isotopes Dr Terry Webb Mike Sim National Isotope Centre Email: [email protected] 30 Gracefield Road General Manager Lower Hutt 5010 Geological Resources Group Globe Claritas™ PO Box 31312 Dr Kevin Faure Dr David Darby Lower Hutt 5040 Email: [email protected] New Zealand General Manager Tel: +64 4 570 1444 National Isotope Centre Fax: +64 4 570 4657 Dr Frank Bruhn Communications Manager Chief Financial Officer John Callan Graham Clarke Tel: +64 4 570 4732 General Manager Mob: +64 27 440 2571 GNS Science Email: [email protected] Office Locations Business Development Rob Johnston Bankers General Manager Human Resources The National Bank of New Zealand Limited Wairakei Research Centre Tony Stone General Manager Auditor Research Dr Ian Graham Jacqueline Robertson Deloitte General Manager On behalf of the Principal location and Strategy Auditor-General National Isotope Centre Dr Desmond Darby Solicitors General Manager Ma-ori Strategy Minter Ellison Rudd Watts Rawiri Faulkner Websites General Counsel Peter Barker www.gns.cri.nz www.geonet.org.nz Manager, National Hazards Dunedin Research Centre Research Platform Dr Kelvin Berryman Manager, Information Services Tony Charles

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