Allan Kiritapu; Rurawhe AdrianCROWN MINERALS (DECOMMISSIONING AND OTHER MATTERS) AMENDMENT BILLThird ReadingHon KIRITAPU ALLAN (Minister of Conservation) on behalf of the Minister of Energy and Resources: I present a legislative statement on the Crown Minerals (Decommissioning and Other Matters) Amendment Bill.ASSISTANT SPEAKER (Hon Jenny Salesa): That legislative statement is published under the authority of the House and can be found on the Parliament website.Hon KIRITAPU ALLAN: I move That the Crown Minerals (Decommissioning and Other Matters) Amendment Bill be now read a third time.I want to thank all members across the House who have contributed to the debate on this important bill. This bill amends the Crown Minerals Act 1991. That is the principal piece of legislation that governs Crown-owned resources including petroleum. The bill lays the foundation for a stronger more proactive regulation of petroleum-decommissioning activities. It is designed to mitigate the risk to the Crown and taxpayer of having to fund decommissioning in the event that a permit or licence holder is unable to do so.Decommissioning can include removing infrastructure plugging and abandoning wells and undertaking site restoration. Significant risk to health and safety and the environment could arise if petroleum fields are not cleaned up and made safe at the appropriate time. The bill clarifies expectations of permit and licence holders by introducing an explicit statutory obligation to carry out and meet the costs of decommissioning. There are penalties for the failure to comply with the obligation. It also introduces perpetual liability. This means that if someone transfers their interest in a permit or licence they will continue to be held liable for the costs of decommissioning in the event that the current permit or licence holder fails to fulfil their obligations.An important aspect of the new regime will be improved monitoring and oversight. The bill provides the regulator with new powers to monitor a permit or licence holder's financial position and to carry out assessments of their financial capability. Permit and licence holders will also be required to provide information related to decommissioning including cost estimates and plans. The bill requires permit and licence holders to establish a financial security which can be used to fund decommissioning in the event that something goes wrong. The amount and kind will be decided on a case by case basis taking into account factors such as the estimated costs of decommissioning when decommissioning will occur and any emerging risks. The bill also requires permit and licence holders to make a payment or provide a financial security that could be put towards the cost of any post-decommissioning work required. This includes the monitoring maintenance and remediation of wells and infrastructure after decommissioning has been completed.Moving away from decommissioning-specific provisions the bill introduces new enforcement tools such as compliance notices and infringement offences. These changes will allow the regulator to take a proportionate and effective approach to compliance across the Crown Minerals Act. The bill also makes changes to the tests used when someone acquires a permit. The decision maker will have to be satisfied the proposed permit holder will be highly likely to comply with certain conditions. It also makes various technical amendments to the Crown Minerals Act to improve administration and efficiency. The bill covers a range of areas. As well as debate in the House there was feedback from a wide range of parties during the select committee submissions process. I'd like to acknowledge and thank each and every person who took the time to engage in the submissions process. The Economic Development Science and Innovation Committee made valuable recommendations during their examination of the bill and I too want to acknowledge the members of that committee for their time and their consideration in deliberations of the matters before them. While numerous changes were made by the select committee in response to the submissions the key provisions I have outlined were retained in order to mitigate the risk to the Crown and to the taxpayer. The situation with the Tūī permit where the Crown stepped in to fund decommissioning at considerable cost to the taxpayer highlighted the need for the greater protections this bill provides. However I want this House to be assured that this bill is not a knee-jerk reaction to the Tūī situation but it addresses a fundamental gap in the Crown Minerals Act and takes a longer-term view of what we need to do to improve our regulation of a changing sector. The aim is to provide for a flexible approach to regulation which will allow requirements to be tailored over time. Therefore I commend this bill to the House.DEPUTY SPEAKER: The question is that the motion be agreed to.