Before the Independent Hearings Panel For New Plymouth District Council Under the Resource Management Act 1991 In the matter of hearings into the provisions of the proposed New Plymouth District Plan And in the matter of hearing topic - Strategic Objectives Statement of Evidence of Nik Pyselman on behalf of Todd Energy Limited Date: 18 June 2021 Level 4, 20 Customhouse Quay, Wellington 6011 PO Box 2791, Wellington 6140 DX SP20002, Wellington Tel +64 4 472 6289 Fax +64 4 472 7429 Solicitor on the record Stephen Quinn [email protected] Tel +64 4 474 3217 Contact solicitor Emma Manohar [email protected] Tel +64 4 918 3016 7103193.2Todd Energy Limited - Nik Pyselman - corporate(7103193.2).docx INTRODUCTION 1 My full name is Nikolas Jan Pyselman. I am the Environment Manager at Todd Energy Limited (TEL). 2 I am authorised to provide evidence on behalf of TEL. QUALIFICATIONS AND EXPERIENCE 3 I hold Science (Environmental, Geography) and Commerce (Economics) degrees from Victoria University, Wellington, which I obtained in 2002. 4 I have previously worked in Local Government as a policy analyst (Northland Regional Council) and from 2006-present have lived and worked in the New Plymouth District. From 2006-2016 I was a consultant planner. In this role I worked throughout Taranaki and New Zealand on a range of projects. 5 Projects within the New Plymouth District included Private Plan Changes to the Operative New Plymouth District Plan (2005), commercial accommodation developments, industrial / residential developments, contaminated land projects, infrastructure projects (roads, powerlines and natural gas pipelines), and energy projects including a range of natural gas related projects and developments (peaking power plants, wellsites and production facilities). 6 I have been in my current role as TEL’s Environment Manager for 5 years. 7 I have a good working knowledge of the operative and proposed New Plymouth District Plans, Taranaki’s natural gas industry and the social, economic and environmental strengths and challenges within the New Plymouth District. 7103193.2 1 CODE OF CONDUCT 8 I have read the Code of Conduct for Expert Witnesses set out in the Environment Court's Practice Note 2014. I have complied with the Code of Conduct in preparing my evidence and will continue to comply with it while giving oral evidence before the panel. INVOLVEMENT WITH THE PROPOSED PLAN 9 My evidence is in respect of submissions on the Proposed New Plymouth District Plan (Proposed Plan) by TEL (submission no. FS 199) in relation to the Topic: 'Strategic Direction - Urban Form and Development'. 10 I assisted in drafting TEL’s submission and further submission on the Proposed Plan. SCOPE OF EVIDENCE 11 My statement of evidence covers the following matters: 11.1 Clarification of Section 42A Report Strategic Direction – Urban Form and Development statement; 11.2 Overview of Todd Corporation and TEL; 11.3 Summary of TEL’s operations in the New Plymouth District; 11.4 Information on industry benefits to the District, Regional and National economies; and 11.5 Conclusions and recommendations. 12 In preparing my evidence I have considered the following: 12.1 Submissions on the Proposed Plan by TGL (submission no. 561); 7103193.2 2 12.2 Submissions on the Proposed Plan by Chorus (submission no. 547); 12.3 The New Plymouth District Council proposed District Plan – notified, 23 September 2019; 12.4 Section 42A Report Strategic Direction – Tangata Whenua; 12.5 Section 42A Report Strategic Direction – Historic and Cultural; 12.6 Section 42A Report Strategic Direction – Natural Environment; 12.7 Section 42A Report Strategic Direction – Urban Form and Development; 12.8 District Wide Matters: Section 32 Report – Overview and Strategic Direction, August 2019; and 12.9 The expert planning evidence of Mr St Clair. SECTION 42A REPORT CLARIFICATION 13 TEL confirms that it supports the Officers recommended amendments to UFD-20. The S42A Report – UFD, Paragraph 226, page 48 is potentially misleading. 14 TEL would like to clarify that in its further submissions it did not oppose the inclusion of climate change matters in the Proposed Plan, SD-UFD objectives or submission points 311.27, 311.33 that directly relate to UFD-20. TODD CORPORATION AND TEL 15 Todd Corporation (Todd) is one of New Zealand’s largest companies. The family-owned business employs around 1000 people, with interests in energy, property development, minerals, healthcare, technology, and 7103193.2 3 philanthropy. Todd has been involved with natural gas exploration and development in Taranaki for around 60 years. 16 TEL, a wholly owned subsidiary of Todd, is a 100% Permit holder for the onshore McKee and Mangahewa fields and a joint venture partner in the Pohokura natural gas field. TEL’s head office is in New Plymouth and directly employs around 250 local people. 17 TEL supplies around 40% of New Zealand’s natural gas requirements. Around 75% of this natural gas originates from the New Plymouth District. 18 TEL contributes to the New Plymouth district through community wellbeing and economic growth, producing natural gas for New Zealand in an environmentally and socially responsible way. Core areas of focus for TEL include community wellbeing, education and training, environment and tangata whenua. TEL actively partners and supports the community in a number of areas such as: 18.1 - WOMAD Taranaki; 18.2 Taranaki Coastguard; 18.3 Taranaki Surf Life Saving; 18.4 Todd Energy Aquatic Centre; 18.5 Big Brothers Big Sisters Taranaki; 18.6 Taranaki Retreat; 18.7 St Johns Ambulance; 18.8 The Len Lye Centre; 18.9 Tikorangi and Huirangi Schools literacy and numeracy programme; 7103193.2 4 18.10 Everett Park Scenic Reserve; 18.11 Taramokau Conservation Area, and 18.12 support for hapū business and employment opportunities, and specific iwi projects. 19 TEL is a Lifeline Utility, as defined under Schedule 1, Part B of the Civil Defence Emergency Management Act 2002. Lifeline Utilities provide essential infrastructure services to the community and have requirements under the National Civil Defence Emergency Management Plan. 20 As a Lifeline Utility, TEL’s wellsites and production facilities remained fully operational during the recent COVID 19 pandemic lockdown, to ensure reliable and affordable energy was available to New Zealander’s during this emergency. 21 TEL is committed continue providing affordable and reliable energy to New Zealanders to support our countries transition to a low emissions economy. TEL’S ENERGY ACTIVITIES IN THE NEW PLYMOUTH DISTRICT Background 22 The McKee oil and gas field was discovered in 1979 by Petrocorp, a State-Owned Enterprise (SOE). This field began producing through the newly constructed McKee Production Station in 1984 and was on sold by the Government in 1988. 23 The McKee field primarily produced oil from up to 12 wellsites. Continuous oil production from this field ceased in 2018, however some natural gas is still produced. The Mangahewa natural gas field came into commercial production in 2001. TEL began operating both fields in 2006. 7103193.2 5 24 To accommodate the growth in Mangahewa natural gas production, and to produce LPG and electricity, the McKee Production Station required several expansions, including the addition of an 11MW electricity generation system. As a result, its name was changed to the McKee Mangahewa Production Station (MMPS). A recent image of MMPS is attached as Appendix A. Energy System Approach 25 TEL’s energy activities must be thought of, and managed as, ‘energy systems’, interconnected through essential pipeline infrastructure networks. 26 The Proposed Plan recognises specific nationally important facilities through the Major Facility Zone. However, these facilities are only one component of the energy system. MMPS, Methanex and the tank farms would have no energy without specific wellsite and pipeline infrastructure to connect the network. 27 Wellsites and pipeline infrastructure are equally critical components of the energy system and require the same recognition as Major Facilities. Without the feed stock they supply and distribute, we cannot have Major Facilities or a significant natural gas resource for New Zealand. TEL’s Energy System 28 The natural gas required for MMPS to operate currently comes from 20 producing natural gas wells, over four Mangahewa wellsites and one McKee wellsite. TEL’s share of natural gas from the Pohokura natural gas field is sent via pipeline to MMPS for further processing/distribution. 29 Raw natural gas flows via TEL’s gathering pipeline network to MMPS for processing and distribution. At MMPS, water and light condensate are removed, and the remaining natural gas is further processed to recover LPGs. 7103193.2 6 30 Depending on national demand requirements, natural gas is then: 30.1 run through MMPS electricity generation units; 30.2 exported via pipeline to Todd Generation’s 100MW McKee Peaker Plant; 30.3 exported via pipeline to Methanex; and 30.4 exported via pipeline for use around the North Island. 31 Light condensate is exported via a pipeline to the Tank Farms, where it is stored for overseas transport through Port Taranaki. LPGs is tankered from MMPS for distribution around New Zealand. 32 Formation water that is removed at MMPS is transported via pipelines and re-injected back into the depleted McKee formation through several McKee wells. 33 A plan illustrating the above energy system is attached as Appendix 2. 34 Due to decline and resource variability within the fields, TEL is generally required to drill around 2-4 new Mangahewa wells per year to maintain its current supply of natural gas. 35 To facilitate drilling, TEL owns the Bentec EURO 450T drilling rig. This is a modern rig specifically designed to reduce drilling time and associated temporary environmental impacts (such as light, noise, heavy traffic). This rig has a horizontal range of 2-3 kilometres, minimising the requirement for new wellsites, as more targets can be reached from a specific location.