Consultation opens on proposed decommissioning regulations
Consultation on proposals for regulations to support the Crown Minerals (Decommissioning and Other Matters) Amendment Bill has now opened.
The Crown Minerals (Decommissioning and Other Matters) Amendment Bill (the Bill) was introduced in the House on 23 June 2021. The Bill proposes changes to strengthen the regulations for decommissioning petroleum infrastructure and wells, under the Crown Minerals Act 1991.
The Ministry of Building, Innovation and Employment (MBIE) is now seeking feedback on proposed regulations to support the Bill. The proposed regulations relate to the decommissioning of petroleum infrastructure and wells, and the development of a post-decommissioning fund.
The regulations are proposed to cover the following areas.
Field development plans and asset registers
Proposed regulations would set the type of information required in field development plans and asset registers, and when these would need to be submitted.
Information for monitoring financial position and assessing financial capability to decommission
Proposed regulations would set the type of information required for:
- ongoing monitoring of financial position
- financial capability assessments.
Financial security
Proposed regulations would set criteria to be applied when determining the kind of financial security, in addition to the considerations proposed in the Bill.
Production cessation notification
We’re asking for your feedback about whether there should be regulations that require petroleum permit and licence holders to notify MBIE’s Chief Executive of the expected date they plan to cease producing from the field.
Post-decommissioning fund
Proposed regulations would cover criteria to determine the amount of a post-decommissioning payment, when the payment is due, when to grant exemptions and how the fund would be held and managed.
Read the discussion document and find out how to make a submission - MBIE website
Submissions close at 5pm Tuesday 24 August 2021.