OIL BORING

Hawera Star, Volume XLVII, 21 October 1927, Page 5

OIL BORING

*- FAR=REACHING BILL. PROSPECTING RIGHTS. MEASURE POSTPONED. .BY TELEGRAPH—SPECIAL TO ‘THE STAR.”) WELLINGTON, Oct. 20. l'he Petroleum Bill, introduced by the Minister of Mines, was imported oack to the House this afternoon from tiie Lands Committee, and it was announced bv the Prime Minister that the measure was so far-reaching in its ei.ects on landed property that the Government had no intention of putting it on the Statute Book this session, time would be given for its provisions to be thoroughly understood and for lull to be, made to Parliament.

The search for oil in New Zealand •iad, said Mr Coates, been hampered by die necessity of making many agreements for boring rights, and what the Bi'l proposed was to set u,p a system under which, jf capital was offering co piopect for oil, that the process would be made as easy as possible, at the same time conserving all reasonable lights of those who occupied the laud and who might he interested in -no oil after its discovery. The Bill should be sent to th? Native Affairs Committee, because native land would be invo ved, and ft was not intended lo proceed further with it this session, it had bei2n drafted at the present stage because the Government desired that the people affected should have a .ull opportunity of understanding all ■ts provisions.

Mr T. \V. llhodeg- suggested that the Bill, as a mining measure, should also be sent to the Mines Committee.

Mr H. E. Holland, Leader of the Opposition, expressed liis surprise at the introduction of a Bill which was not intended to pass, because the Government wished it to be considered by all parties interested. This process might a® well have been carried out with certain Labour measures. What was the reason for this concern over petroleum ? The Prime Minister: “Because it is very far-reaching, and it is advisable that landowners should have an opportunity of expressing their opinion.” Mr W. H. Field pointed out that this was not the first occasion on which a Bill had been introduced simply to enable 'its .provisions to become generally known before the House legislated. It was a measure of an arbifrary character affecting property rights and all for the purpose of private profit. While it was the Government’s duty to encourage prospecting for oil, it was equally necessary to .safeguard ireperty owners’ rights. Mr T M. Wilford declared that the measure was undoubtedly requii’ed, but its .preparation meant a great deal of responsibility for the Government, because it must have a far-reaching effect on vested interest in land. Wherever it was necessary to prospect for oil. gold or .precious stones, it was always a gamble which would only be undertaken by private money. He von Id be glad to help the Government to hold out inducements to capital to test out New Zealand prospects of oil winning. The Hon. G. J. Anderson. Minister of Mines, explained that the Bill had been drawn up on the experience of oil legislation in various countries, and he was satisfied that only by this means would 1 it be possible to thoroughly test the country. They had to give inducements to people with large capital and an assured position to the landowner that all his rights would be conserved, and this was what the Bill endeavoured to do.

Mr W. D. Lysnar: “Question.” The Minister added that tlie Bill had a, 5 its foundation the legislation, .and there was the principle that while the rights of the individual should be preserved, this must be ,subiect to th:3 nights of the State. on. poasißiLrriEs.

‘‘Oil formation in New Zealand runs into 45,000 square miles,” continued Mr Anderson. “\V he tlier those oil formations have been so disrupted in the past as to have .lost thpir oil we can only ted by systematic prospecting, and that can only be done on the advice of the best geologists we can secure, and the only way in which capital can be found for prospecting is privately. On .several occasions tlie .ate Prime Minister, the late Hon; W. F. Massev, was approached by the Anglo-Persian Oil Co., but on each occasion the matter was not gone on with until they can get an assured eg a l position without the trouble of going to the owners of all the land in an oil-bearing district. This Bid endeavours to obtain those rights so that the Crown can let them to people in x position to thoroughly carry out prospecting and to secure tlie necessary capital. I was told by a man high up in one of the oil companies that it ost three or four mi'l.ions to find oil n British Guinea, and another three or four millions before they igot it on the market. I understand that m that country oil resources are more stable and defined thah they are here. Jut country is broken and deeper. _ The 'Minister further expained that the Bill gave the Government Power to stop people from spoiling oilfields by injudicious boring, for by this means water had been let into one field an New Zealand, a company boring for oil in c,h> north had been badly hampered bv lecral difficulties of getting boring rights. He was satisfied that only bv the means of this legislation could prospecting be properlv undertaken. The Bill was referred to tlie Native Affairs Committee. It will, subsequently go to the Mines Committee for taking evidence.