Crown Minerals (Ending Fossil Fuels) Amendment Bill

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Crown Minerals (Ending Fossil Fuels) Amendment Bill

Member's Bill

Explanatory Note

If we are to avoid dangerous levels of anthropogenic climate change, we must end the use of fossil fuels as quickly as possible. This bill begins that process, by amending the Crown Minerals Act 1991 to prohibit the grant of new exploration, prospecting or mining permits for coal or petroleum, prohibiting the extension of such permits, and setting a sunset clause for existing permits (1 January 2025 for exploration permits, and 1 January 2030 for mining permits).

It still requires transition provisions to ensure that the sunset clause applies to existing permits, that pending applications are processed according to the new rules, and that existing privileges are eliminated.

Crown Minerals (Ending Fossil Fuels) Amendment Bill

The Parliament of New Zealand enacts as follows:

1. Title
This Act is the Crown Minerals (Ending Fossil Fuels) Amendment Act 2021.

2. Commencement
This Act comes into force on the day after the date on which it receives the Royal assent.

3. Principal Act Amended
This Act amends the Crown Minerals Act 1991 (the principal act).

4. New section 23AA inserted
After section 23A, insert:

23AA. Permits for fossil fuels prohibited
Despite anything to the contrary in this Act, no permit may be applied for or granted for coal or petroleum.

5. Section 23A amended ( Application for permits)
(1) Replace section 23A(2)(a) with:

(a) However a person may not apply under this section for a permit for coal or petroleum.

(2) Repeal sections 23A(2)(b) and (c).

6. Section 24 amended (Allocation by public tender)
Replace section 24(5A) with:

(5A) However, no permit may be offered for coal or petroleum.

7. Section 25 amended (Grant of permit)
In section 25(2A), replace "petroleum in respect of any land outside the onshore Taranaki region" with "coal or petroleum".

8. Section 32 amended (Right of permit holder to subsequent permits)
After section 32(8), insert:

(9) This section does not apply to permits for coal or petroleum.

9. Section 35 amended (Duration of permits)

(1) In section 35(3), replace "petroleum" with "coal or petroleum".
(2) Replace section 35(3)(a) with:

(a) on 1 January 2025;or

(3) Replace section 35(4) with:

(4) A mining permit for coal or petroleum expires—
(a) on 1 January 2030; or
(b) if an earlier expiry date is specified in the permit, on that date.

(4) In sections 35(5) and 35(6), replace "petroleum" with "coal or petroleum".
(5) In sections 35(7) and 35(8), replace "mining permit" with "mining permit for minerals other than coal or petroleum"

10. Section 35A amended (Appraisal extension of exploration permits)
After section 35A(4), insert:

(5) This section does not apply to permits for coal or petroleum.

11. Section 36 amended (Change to permit)
(1) Replace section 36(2A) with:

(2A) However, the land to which a permit for coal or petroleum relates or the duration of such a permit cannot be extended.

(2) Replace section 36(3) with:

(3) However, the minerals to which the permit relates cannot be changed to include coal or petroleum.

12. Section 37 amended (Process for Minister’s proposal to change work programme for petroleum mining permit)
After section 37(5), insert:

(6) The Minister shall not propose any change under this section which would lead to an increase in the rate of extraction of coal or petroleum.

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