New law to manage impact of offshore drilling

The Government is to introduce legislation to help prevent an offshore environmental disaster such as the massive oil spill in the Gulf of Mexico last year.

The law was needed to manage the environmental impact of activities like petroleum exploration and mining within New Zealand's exclusive economic zone (EEZ) and extended continental shelf (ECS), Environment Minister Nick Smith said.

The existing regulatory framework, spread across several acts, does not cover some activities within the two offshore zones.

"This area of ocean, 20 times New Zealand's land area, offers significant economic opportunities, but we must also ensure we have robust laws in place to protect the environment," Dr Smith said.

"We do not want to see in New Zealand the type of environmental disaster that occurred in the Gulf of Mexico last year."

The new law would cover seabed mining, some aspects of petroleum exploration and extraction, and activities that would cause redistribution of sediment or damage to the seabed or ecosystems.

The new Environmental Protection Authority (EPA) would be responsible for consenting, monitoring and enforcement within the two offshore zones.

Activities would be classified as either permitted, requiring a consent or prohibited.

Public notification and consultation would be required for all regulations and consents, and an environmental impact assessment would be a mandatory part of the consent process.

A joint application process would be needed when activities spanned both the EEZ and territorial waters.

The bill would impose a general duty to avoid, remedy or mitigate adverse environmental effects, with penalties to be aligned with the Maritime Transport and Resource Management Acts.

Dr Smith said the Environmental Protection Authority was the right agency to manage consents, rather than regional councils.

"It is too far offshore to significantly impact on local communities and we need the specialist skills of a national regulator to deal with the complex issues associated with activities like deep sea drilling," he said.

"The policy is carefully balanced to recognise the economic opportunities while providing effective environmental protection."

Cabinet had signed off the proposed changes and the Exclusive Economic Zone and Extended Continental Shelf (Environmental Effects) Bill was currently being drafted.

The bill would avoid duplication with other legislation such as the Maritime Transport, Fishing and Crown Minerals Acts, and minimise compliance costs.

It will be introduced to Parliament next month before being referred to the local government and environment select committee for consideration.

The changes would come into effect in July 2012.