The Report on the Management of the Petroleum Resource
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Downloaded from www.waitangitribunal.govt.nz THE REPORT ON THE MANAGEMENT OF THE PETROLEUM RESOURCE Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz t h e R e p o r t o n t h e M a n a g e m e n t o f t h e P e t r o l e u m R e s o u r c e W A I 7 9 6 W A I T A N G I T R I B U N A L R E P O R T 2 0 1 1 Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz The cover illustration is of the Ocean Bounty drilling platform, drilling an exploratory well 12 kilometres off the coast of Motunui in north Taranaki for the Shell consortium’s Pohokura gas field project, March 2005. The frontispiece is of Shell Todd Oil Services’ Maui B platform, 35 kilometres off the coast of west Taranaki in the Tasman Sea, February 2006. Condensate is pumped from the platform to the shore processing station at Oaonui. National Library of New Zealand Cataloguing-in-Publication Data New Zealand. Waitangi Tribunal. The report on the management of the petroleum resource. Amended ed. (Waitangi Tribunal report) ISBN 978-1-86956-299-1 1. Petroleum law and legislation—New Zealand. 2. Petroleum reserves—Management. 3. Petroleum industry and trade— Environmental aspects—New Zealand. 4. Maori (New Zealand people)—Claims. [1. Pūngao. 2. Ture putaiao. 3. Kaitiakitanga. 4. Taiao. 5. Kerēme (Tiriti o Waitangi)] I. Title. II. Series: Waitangi Tribunal report. 333.82320993—22 www.waitangitribunal.govt.nz This report was previously released on the internet in 2010 in pre-publication format as The Report on the Management of the Petroleum Resource : Pre-publication This amended edition published 2011 by Legislation Direct, Wellington, New Zealand Printed by Printlink, Wellington, New Zealand 15 14 13 12 11 1 2 3 4 5 Typeset in Adobe Minion Pro and Cronos Pro Opticals Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz CONTENTS Letter of transmittal . xiii Chapter 1 : The Context for this Inquiry . 1 1 .1 Introduction . 1 1 .1 .1 What this inquiry is about . 1 1 .1 .2 The Waitangi Tribunal’s Petroleum Report . 1 1 .2 New Zealand’s petroleum industry : facts and figures . 3 1 .2 .1 Introduction . 3 (1) ‘Petroleum’ defined . 3 (2) The ownership and allocation of rights to exploit petroleum . 3 1 .2 .2 A brief history of petroleum discoveries . 3 1 .2 .3 Production : offshore and onshore . 7 1 .2 .4 Minerals and petroleum and economic growth . 10 1 .2 .5 Characteristics of the petroleum resource . 13 1 .2 .6 Drivers for expansion of petroleum activity . 15 1 .2 .7 Why is New Zealand’s petroleum regime as it is ? . 16 Chapter 2 : A Māori World View : The Connection and Identification with the Environment . 23 2 .1 Introduction . 23 2 .2 In the beginning – the primeval parents . 24 2 .2 .1 The significance of Tāne . 25 2 .2 .2 The coming of death to humanity . 25 2 .2 .3 Māori traditional beliefs and the environment . 26 2 .3 The nature of whakapapa . 27 2 .4 Mauri . .28 2 .4 .1 Definitions . 28 2 .4 .2 The mauri of inanimate objects . 29 2 .4 .3 Other forms of mauri . 29 2 .5 Mana . 30 2 .6 Kaitiakitanga . 30 2 .7 Taniwha kaitiaki . 30 2 .8 Tipua . 32 2 .9 Maunga, awa, and moana . 32 2 .10 Te tangata, hapū, iwi . 33 2 .11 Wāhi tapu . 33 v Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz Contents Chapter 3 : The Inquiry and its Participants . 39 3 .1 The claimants . 39 3 .1 .1 Ngā Hapū o Ngāruahine (Wai 796) . 39 3 .1 .2 Ngāti Kahungunu (Wai 852) . 41 3 .1 .3 Claimants with watching briefs . 42 3 .1 .4 The Crown . 42 3 .1 .5 Local government participation . 43 3 .1 .6 Tribunal-commissioned witness . 43 3 .2 The hearing . 43 3 .3 Subsequent submissions and evidence . 43 3 .4 The issues . 43 Chapter 4 : The Relevant Law . 47 4 .1 Introduction . 47 4 .2 The Crown Minerals Act 1991 . 47 4 .2 .1 Treaty clause – section 4 . 47 4 .2 .2 Administration of the Act . 47 4 .2 .3 Petroleum defined . 48 4 .2 .4 Limits of Crown ownership and further rights . .. 48 4 .2 .5 TheMinerals Programme for Petroleum . 48 4 .2 .6 Permit system . 50 4 .2 .7 Land access for permit holders . 50 4 .2 .8 Land excluded from permitting regime or particular permits : section 15(3) . 51 4 .2 .9 Schedule 4 lands . 52 4 .2 .10 TheMPP ’s interpretation of Treaty clause . 53 (1) Exclusion of land . 53 (2) Consultation – when and how conducted . 53 4 .3 The Resource Management Act 1991 . 54 4 .3 .1 Purpose, principles, and presumptions . 54 4 .3 .2 Decision- making devolved to local authorities . 56 4 .3 .3 Transfer and sharing of local authority functions . 57 4 .3 .4 Processes for making policies and plans . 57 4 .3 .5 When consents are required . 58 4 .3 .6 The consent process : notification and approvals . 60 4 .3 .7 Multiple consents . 61 4 .3 .8 Central government responsibilities . 61 (1) National policy statements . 61 (2) National environmental standards . 61 vi Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz Contents (3) Direction for proposals of national significance . 62 (4) Requiring authorities . 62 (5) Heritage protection authorities . 62 (6) Monitoring the implementation of the RMA . 63 4 .4 Regulation beyond the territorial sea . 63 4 .5 The Historic Places Act 1993 . 63 4 .6 The Local Government Act 2002 . 64 Chapter 5 : The Claims . .. 69 5 .1 Introduction . 69 5 .2 The law is biased against Māori interests and favours conflicting interests . 70 5 .2 .1 Crown failure to recognise Māori Treaty interest . 70 5 .2 .2 The Treaty clauses and sections 6 and 7 of the RMA . 71 5 .2 .3 TheCMA . 71 5 .2 .4 TheRMA . 72 (1) Lenient classification of activities . 72 (2) No guaranteed notification . 74 (3) ‘Affected’ or merely ‘interested’ parties . 74 (4) The RMA’s limited protection of wāhi tapu and other significant sites . 74 (a) Variable efforts by local authorities . 75 (b) Cost of listing sites . 76 (c) Fear of misuse of information on local authority’s records . 77 5 .2 .5 The law beyond New Zealand’s territorial waters . 78 5 .3 The failure of the law to ensure effective participation by Māori . 78 5 .3 .1 TheCMA . 79 (1) Failure to consult on high-level policy issues . 79 (2) Limited scope of, and opportunities for, Māori input . 79 (3) Process for exercise of Minister’s section 15(3) discretion . 82 (4) No requirement for engagement . 83 5 .3 .2 TheRMA . 83 (1) Misplaced reliance on engagement of ‘iwi authorities’ . 83 (2) Multiple local authorities but minimal coordination of policies, rules, and processes . 85 (3) Local authorities’ varied efforts to include Māori in decision-making . 87 (4) Local authorities do not transfer or share power . 93 5 .4 Māori lack capacity to overcome obstacles to effective participation . 93 5 .5 The harmful effects of the regime . 96 vii Downloaded from www.waitangitribunal.govt.nz Downloaded from www.waitangitribunal.govt.nz Contents Chapter 6 : Examples of Claimant Experiences . 101 6 .1 Introduction . 101 6 .2 Ngarewa . 103 6 .2 .1 Wāhi tapu status . ..