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Petroleum review finds dangerous gaps in offshore regulation

14 February 2011

Petroleum review highlights dangerous gaps in offshore regulation

EDS today lodged its submissions with the Ministry of Economic Development on the Offshore Petroleum Health, Safety and Environmental Legislation Review.

"The review highlights how far New Zealand has fallen behind international best practice in managing the environmental effects of offshore petroleum activities," said EDS Senior Policy Analyst Raewyn Peart.

"This is of great concern because government has been issuing permits for exploratory drilling at greater depths, and in more hazardous waters, than the disastrous BP well in the Gulf of Mexico.

"EDS is alarmed by the review findings that New Zealand has very little capacity for inspecting offshore petroleum activities. The lack of sufficient regulatory inspections was one of the failings in the USA reported in the wake of the Gulf of Mexico disaster.

"EDS's submission calls on the government to urgently increase the capacity of the offshore petroleum inspection service.

"EDS strongly supports the recommendation in the review that an environmental regulatory framework be established in the EEZ and extended continental shelf. This also needs to be addressed as a matter of urgency.

"In my view, expanding the Resource Management Act (RMA) to cover the EEZ would be the most effective and efficient way to address this gap. The new streamlined provisions of the RMA would enable applications to be determined expeditiously but at the same time would ensure that they undergo rigorous environmental scrutiny.

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"EDS also supports the recommendation that one agency be given responsibility for environmental regulation in the EEZ. The Environmental Protection Authority (EPA) is clearly the most appropriate agency to undertake this task.

"Government has recently introduced legislation into Parliament which will establish the EPA as an independent Crown entity and significantly broaden its role. The EPA will have a high level of technical skill and operate at arms' length from government.

"The Minister for the Environment has already indicated that the EPA could a play role in EEZ consenting and EDS concurs with this view.

"EDS also supports the review's recommendations that consideration be given to the future arrangements for the offshore environmental jurisdiction.

"Current environmental laws applying to the ocean are fragmented, dated and as the review has highlighted, there are significant gaps. We need to embark on a comprehensive reform process for the oceans, similar to the process undertaken during the 1980s for the development of the RMA

"EDS is calling for the establishment of a Royal Commission on Oceans Governance to undertake this task.

"Oceans policy remains unfinished business. If addressed with wisdom and foresight, new oceans legislation will provide a sound platform for New Zealand's oceans management well into the 21st century," concluded Ms Peart.

A copy of the submission can be found on the EDS website at eds.org.nz

ENDS


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