Exploration bond upsets council

Press, 9 July 1983, Page 7

Exploration bond upsets council

The regional planning committee of the Canterbury United Council has recommended that the council continue with legal action to reinforce its view that a $lOOO bond on a company seeking an exploration licence is “grossly inadequate.” The council put its view to a Planning Tribunal hearing into an exploration licence application by BP Oil’New Zealand, Ltd. The tribunal, however, said it did not have the power to make any recommendation on a bond to the Minister of Energy, Mr Birch, who has the final say.

BP seeks a licence to explore in an area covering about 500 sq km in the central Southern Alps be-

tween Tara Tama and Malcolm Peak. Most of the area is in Westland County but some is in Ashburton County. Cr W. M. Hindmarsh said it was not clear what the bond was intended to do: was it meant to be some kind of security against any possible damage that might be done, or was it a kind of “float” to pay for action should any damage occur? The planning committee decided to seek that information and in the meantime recommended that the United Council’s lawyer begin action for an interpretation of the law from the High Court on the Planning Tribunal’s powers in the matter.