IN CONFIDENCE Energy and Resources Weekly Report To Hon Dr Megan Woods Minister of Energy and Resources Week beginning 6 November 2017 - MINISTRY OF BUSINESS, 3 INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI Energy and Resources Weekly Officials? Meeting Agenda Action Re uired Item Subject Person orSIa'tzr? I (Degision I Inform Noting I Discussion) Note: There is no weekly officials? meeting scheduled for the coming week at present. Ministry of Business, Innovation Employment officials attending: llana Miller, Acting General Manager, Energy and Resource Markets Tim Townsend, Acting Manager, Sector Development Policy David Darby, Manager, Commercial Analysis Investment llana Miller, National Manager, Minerals Andy Hume, Manager, Energy Markets Policy Gareth Wilson, Principal Policy Advisor, Energy Markets Policy Josh Adams, National Manager, Petroleum Marcos Pelenur, Manager, Resource Markets Policy Action points from last Of?cials? Meeting Item Actions Name Status Note: NO Minister's meetings held this week. - . MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI 1. Managing the Estate Heading Comment: Next Steps: Responsible Manager: Heading Comment: Next Steps: Responsible Manager: 2 gr. MINISTRY OF BUSINESS, . HIKINA WHAKATUTUKI 2. Priority Developments Heading Comment: Next Steps: Responsible Manager: Heading Comment: Next Steps: Responsible Manager: MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI 3. Policy Developments Zero Carbon Act Comment: The Ministry for the Environment has been asked to provide advice to the Minister of Climate Change on the Zero Carbon Act, due 9 November. At this stage the brie?ng is likely to contain advice on setting the 2050 net zero emissions target in legislation, establishing the Climate Change Commission, setting up a climate change public sector chief executives board, and introducing mandatory climate impact analysis for legislation. A Cabinet paper will be prepared seeking decisions on the above later this month. MBIE will have an opportunity to review both the advice and the Cabinet paper and we can brief you on these in advance of the Cabinet meeting. Responsible Manager: Andy Hume Next Steps: We will keep you updated. Crown Minerals Act 1991 Section 41a amendment Comment: A gap has been identi?ed in the Crown Minerals Act 1991 (CMA), which allows change to ownership of a petroleum or mining operation, without prior approval from the Minister or Crown. To limit companies? ability to exploit this gap a decision needs to be made on a possible amendment to Section 41a of the Crown Minerals Act 1991 (CMA). Changes to ownership of operating sites can impact a site operator?s ?nancial and technical capability and their ability to meet regulatory requirements. This is a particular concern in the case of mature offshore petroleum installations, because the cost of decommissioning these platforms at the end of their life is significant. If the Crown is not able to have an appropriate level of oversight of companies responsible for operating these assets there is a risk that the costs associated with these operations would have to be covered by the Crown. This is a paiticular risk for decommissioning, if the operator is not ?nancially capable of covering these costs. Of?cials consider that it is necessary for the Minister to be aware of a proposed sale so that the appropriate capability checks can be completed before a sale proceeds. Next Steps: A brie?ng will be sent to you this week to give you more information on the issue and to request your agreement to progress the amendment through the R882. MBIE-MAKO-17157744 MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI 3. Policy Developments More information on this will be provided to you in a brie?ng this week. Responsible Manager: Marcos Pelenur - MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI 4. Regulatory Reform Implementation and Operational Matters Heading Comment: Next Steps: Responsible Manager: Heading Comment: Next Steps: Responsible Manager: MINISTRY OF BUSINESS, 3 ,5 INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI 5. Stakeholder Issues Heading Comment: Next Steps: Responsible Manager: Heading Comment: Next Steps: Responsible Manager: MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI NZ Petroleum Minerals permits approved: THURSDAY, 26 OCTOBER 2017 TO WEDNESDAY, 1 NOVEMBER 2017 permit activity Permit Permit Type Client Location Comment Number Extension of land 52925 Minerals Mining Golden Bush Mining Southland Land area increased by a further Limited 190.444 hectares Extension of land 55433 Minerals Mining Matthew John Crawford Tasman Land area increased by a further 13.643 hectares Change of Operator 55435 Minerals Exploration Geotech Limited West Coast Transferred to Mill Creek Mining and Permit Transfer (100%) Limited (100%) Change of Operator 56205 Minerals Mining Timothy John Borstrok West Coast Transferred to Alistair Richard Rogers and Permit Transfer (100%) (100%) Change of Operator 60286 Minerals Exploration Matthew Dove (100%) West Coast Transferred to Xiaoguang Song (100%) and Permit Transfer New Permit 60322 Minerals Exploration Matthew Dove West Coast Granted for a period of 5 years to explore for gold over an area of 1098.91 hectares New Permit 60382 Minerals Exploration Daniel Norman Walker Southland Granted for a period of 5 years to explore for all metallic minerals (excluding uranium) over an area of 204.229 hectares 9 MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI permit activity Permit Permit Type Client Location Comment Number Change of Conditions 60215 Petroleum Mining Hurunui District Council Onshore Obligation to commence mining Hamner generation of electricity from gas) in the Springs permit delayed for further 12 months 10 MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT I HIKINA WHAKATUTUKI Access Arrangements under consideration by ERM and other Crown agencies requiring Joint Ministerial Approval Agencies Permit number Applicant Land Status and Comment Location LINZ ERM 41808 Oceana Gold (New Crown Land - Waihi The applicant currently has a licence to Zealand) Limited occupy the Crown land. LINZ ERM 51630 Oceana Gold (New The Crown land covers Zealand) Limited commercial forest operated by Crown Forest Licensee, Matariki Forests and administered by LINZ in the Waikato region. LINZ ERM 40813 Oceana Gold (New The Crown land covers Zealand) Limited commercial forest operated by Crown Forest Licensee, Matariki Forests and administered by LINZ in the Waikato region. DOC ERM 41808 Oceana Gold (New Crown Land - Waihi Zealand) Limited DOC ERM 41289 Rangitira Developments DOC stewardship land Limited at the southern end of the Buller Plateau DOC ERM 37168 Roa Mining Company Crown land - Grey Joint wildlife application. Limited district. 11 g; may. MINISTRY or BUSINESS, I k, HIKINA WHAKATUTUKI Upcoming Meetings, Events and Announcements Upcoming meetings: Meeting with I Purpose Time Monday 6 November Tuesday 7 November Wednesday 8 November Thursday 9 November Friday 10 November 12 54g l' 1 WW MINISTRY OF BUSINESS, INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI Upcoming speeches communications: Event or announcement Activity Date Speech media release due MBIE Contact Upcoming Cabinet Papers and Briefings Upcoming Cabinet Papers To be . considered Title of paper Comment 1d ed by by Cabinet Contact Committee on [date] Upcoming Brie?ngs, Aide Memoires and Reports Subject Comment Due date Contact Proposed This brie?ng will provide you with 8 November Marcos Pelenur Amendment to information on a proposed 2017 Section 41A of the amendment to the Crown Minerals Act Crown Minerals Act 1991 and will request your agreement 1991 to progress it. Barriers to innovation Brie?ng setting out an overview of 10 November April in the energy sector emerging technologies, impacts, 2017 Richardson potential barriers and how we are reacting to these. Onshore Financial To provide an update on the onshore 10 November Marcos Pelenur Assurance Update ?nancial assurance work-streams, 2017 including work to date. Seismic Survey Informing you of upcoming private 10 November Marcos Pelenur Activity Update sector seismic surveying 2017 MBIE-MAKO-17157744 13 .51. MINISTRY OF BUSINESS, 3 INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI OIA Requests Ministerial OlAs Date due to Number Name Minister?s Date due to Relates TO I Status Update recered requestor Of?ce MOIA17-001 BIM and associated correspondence, notes and aide memoires Departmental OlAs Date due to Date Minister?s Date due to Number Name received of?ce (if requestor Relates To I Status Update applicable) 1718-0525 15 Oct 17 13 NOV 17 Copy of 2013 Epithermal Block Offer consultation document. Status: Drafting. 1718'0592 2?4 Cd 17 21 NOV 17 Copy of sent application clari?cation request. Status: Drafting. 1718'0598 Rationale for request for areas to be excluded from Mokihinui catchment of Kahurangi National Park. Status: Scoping. 14 .91. MINISTRY OF BUSINESS, 3 i INNOVATION EMPLOYMENT HIKINA WHAKATUTUKI Date due to Date Minister?s Date due to Number Name received of?ce (if requestor Relates To I Status Update applicable) 1718'0349 All documents, reports and analysis, including emails, relating to Thompson Clark's contract work for MBIE in the Advantage NZ 2013 Petroleum Conference. Status: Gathering information. 1718-0524 03 Oct 17 29 Nov 17 Copy of the old Crown Minerals Act section 41 practice statement. Status: Drafting. 1718'0443 03 Cd 17 29 NOV 17 Information regarding a previous CIA and mining tender. Status: Gathering information. Parts 1 to 6 responded. Part 7 extended. 1718-0400 copy of the Wiri pipeline report referred to on Morning Report. Status: Drafting. 1718-0401 copy of the Wiri pipeline report referred to on Morning Report. Status: Drafting. MBIE-MAKO-17157744 15