Young JonathanJONATHAN YOUNG (National—New Plymouth): Thank you Madam Chair and thank you Minister for your comments in terms of managing long-term transition. Before I just come to some substantive comments around Part 2 can I say that this transition has been taking place for a considerable period of time and the hydrocarbon industry certainly engaged in that and have been for some time. So while I appreciate that the Minister is saying 20 30 or 40 years down the track there has always been a commitment—especially in latter years—to consider the issues around climate change and to reduce emissions particularly in the exploration and the production sector which is what we're looking at who currently generate about 2 percent of New Zealand's emissions. Coming to new section 23 Existing permits unaffected" and subsection (2): "Existing permits (including any conditions to which the permits are subject immediately before the commencement of the Amendment Act) continue to have effect according to their terms (unless and until those conditions are amended or those terms are changed in accordance with this Act as if the Amendment Act had not been enacted)." Yes that may give assurance to current permit holders. Can I ask the question therefore that as I raised under Part 1 an existing permit holder who applies for an extension of area for their permit because the discovery the reserve the resource that they have discovered is beyond their permit area—that that will be considered under the current conditions upon which they gained the permit in the first place where in section 12.4 of the Petroleum Programme if they have had a discovery and apply for it the Minister will grant them under some obvious conditions and that that would take place. Is the Minister saying that yes she would because this is what this provision says in Part 2—that she would honour existing conditions to permits? Is she saying that she will curtail that to within onshore Taranaki region so there will be in fact a limitation of those conditions? I think just some clarity would be appreciated because we're not talking about new permits; we're talking about existing permits which she and of course the Prime Minister have made those commitments to—that they would be unaffected. "Existing privileges unaffected"—that is the heading of new section 25. So I do think that it's important and opportune for us to have some clarity around that specifically.Can I also say that as we look down the track it's—as the Minister said—a managed and a long-term transition: 20 to 30 to 40 years down the track. At present we have 100000 square miles of offshore opportunity for existing permits that have already been permitted for that exploration to take place. We were informed by the officials and informed through the regulatory impact analysis that in their assessment based on past information and how it has occurred in that 100000 square kilometres they would expect—how many wells would you expect in 100000 square kilometres? It could be 100000; it could be one well per square kilometre. But Ministry of Business Innovation and Employment officials stated that they expect on past experience a total of four—one per 25000. Of those four I'm assuming that we're looking at the Barque and the Carvell prospects offshore Timaru where Andrew Jefferies has been quite clear and quite pronounced in his comments in the public media that because of this bill—they previously had some interested parties who would go into a joint venture with them but now they've all turned away and it is looking increasingly difficult for them to proceed."