Exemptions and deferrals from decommissioning obligations
Petroleum permits include a condition requiring permit holders to decommission all petroleum infrastructure at the end of the permit’s lifecycle, at their own cost.
On this page:
Petroleum infrastructure refers to all physical structures and equipment used to prospect, explore, mine, process store or transport petroleum.
This includes:
- wells
- offshore platforms
- storage tanks
- pipelines
- foundations, and
- electrical systems.
See more about decommissioning obligations:
Decommissioning of petroleum infrastructure and wells
Understanding exemptions and deferrals
Petroleum infrastructure must be decommissioned by totally removing it, unless an exemption has been granted under the Crown Minerals Act or other relevant New Zealand legislation or by a regulatory agency, with requirements or standards relating to the method of decommissioning a particular item of petroleum infrastructure.
An exemption or deferral may apply to all, or part of, the petroleum infrastructure and may include:
- partial removal of the infrastructure
- leaving infrastructure in place
- delaying removal of infrastructure until a later date (a deferral).
An exemption or deferral changes how and when decommissioning obligations are carried out. It does not remove the obligation to decommission.
Who decides on exemptions and deferrals
We assess applications for exemptions and deferrals under the Crown Minerals Act and provide recommendations and advice to the Minister for Resources.
Several other regulatory regimes apply to petroleum decommissioning each with a different role and covering different risks. These are administered by different decision makers.
The final decision on whether to grant an exemption or deferral from Crown Minerals Act obligations sits with the Minister for Resources.
Petroleum permit holders must understand and comply with all applicable decommissioning requirements across all regulatory regimes. Exemption or deferral decisions made under one regulatory regime do not determine outcomes under another.
When you can apply for an exemption or deferral
A petroleum permit holder can apply for an exemption or deferral in certain circumstances, usually where their decommissioning obligations cannot be carried out within the required time.
Common reasons include:
- the need to assess or manage safety risks
- seasonal restrictions such as migrating marine mammals
- petroleum production unexpectedly ending before the permit expires
- an application to surrender all or part of a permit to another party
- a change in permit ownership
- events that make decommissioning obligations unreasonable
- plans to use the petroleum infrastructure for something other than exploration or mining.
Examples where an exemption or deferral may be granted for petroleum infrastructure:
- Buried offshore pipelines where removal would cause a greater disturbance to the seabed and marine environment than leaving them in place.
- Concrete footings or anchors that have become integrated into the seabed, where the risks associated with removal outweigh the environmental benefits of leaving the infrastructure in place.
- Infrastructure with a secondary beneficial use such as scientific monitoring purposes.
Exemptions for petroleum wells
While exemptions can apply to many types of petroleum infrastructure, petroleum wells are treated differently.
Wells must always be plugged and abandoned. There is no exemption from the obligation to:
- properly plug wells
- permanently secure a well so that it cannot leak or cause harm
- prevent leaks or movement of the well.
Other legal obligations still apply
If an exemption or deferral is granted, the permit holder must still comply with all other applications legislation associated with the petroleum permit such as environmental, safety or maritime law.
Applying for an exemption or deferral
Applications must be made in writing and should include relevant supporting information so the minister can make an informed decision. Depending on the basis of the application this could include:
- relevant background information about their decommissioning obligations, including cost estimates and decommissioning plans
- clear identification of the specific infrastructure related to the application
- relevant communications and decisions from other regulators (such as resource consents)
- information on agreements relating to the infrastructure, such as landowner agreements, and information from iwi and hapū
- practicality, costs (including comparisons where relevant) and safety risks of removal
- relevant international practices
- how events or circumstances make the obligations unreasonable or inappropriate
- technical or engineering information that shows the requirement would not meaningfully improve how decommissioning is carried out or how the environment is protected.
- any proposed future uses of the infrastructure and proposed future decommissioning arrangements.
You should include any other material that you consider relevant to help make a decision.
Applications can be sent via email to:
Considerations when making a decision
Once we receive an application, we’ll review the information to prepare advice for the Minister. We may also request additional information to support our assessment. This may involve engagement with relevant iwi and hapū.
The Minister will review the application and our advice and decide whether to grant the exemption or deferral. They may grant an exemption or deferral if they consider it appropriate, and are satisfied that one of the following applies:
- the decommissioning requirements are unreasonable or inappropriate
- events have occurred that make the requirements unnecessary or inappropriate
- the infrastructure or well(s) will be used for a purpose other than exploration or mining of petroleum by the applicant.
When considering whether decommissioning requirements are unreasonable or inappropriate, they may look at:
- how practical and safe the removal work would be
- what it would cost
- how similar situations are handled internationally, and whether granting an exemption or deferral would significantly change the overall cost of removal.
Once they decide whether to grant the exemption or deferral, with or without conditions, or decline the request, the applicant will receive a written decision by letter.
Timeframes vary depending on the complexity of the request and the accuracy, relevance and completeness of the information provided.
If you have any questions about how to prepare an application for exemption, contact us by email:
Relevant legislation and guidance
Crown Minerals Act 1991 — New Zealand Legislation
Minerals Programme for Petroleum 2025 [PDF 1.8MB]