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Jurisdictional review In Waikato, the Regional Policy Statement divides geothermal resources into hydrologically distinct management units known as Geothermal Systems. Systems are classified as Large (up to 350 °C) and Small (less than 100 °C). Systems are also classified for future development potential according to vulnerability of significant features to development and the level of existing use. There are four system categories: Development, Limited Development, Protected, and Research (systems where insufficient information is available to classify).125 Proponents interested in a new development file a Resource Consent Application which is assessed by both regional and territorial local authorities. This application must include a System Management Plan that describes how the proponent will manage the reservoir, mitigate surface effects, avoid damage to significant features, and monitor and report data.126 When there is more than one operator in a system, protocols must be in place to divide responsibility for system management between the operators. The rights to geothermal tenure are distributed through the allocation of water withdrawals (known as Takes) and Discharges, which are regulated for each category of geothermal system.127 Takes and discharges are issued for 10 to 35 years.128 Royalties No royalty rates are charged today.129 In contrast to other jurisdictions, New Zealand has actually used a heavy royalty regime in the past to create a disincentive to production, in response to declining reservoir pressures and depletion of geothermal resources. Operators that used re-injection or heat exchangers received a reprieve from the high royalty rates, in order to incent the switch to more sustainable production methods. This royalty regime was repealed after improvements in pressures were seen.130 125 Environment Waikato, Operative Waikato Regional Policy Statement. 126 Environment Waikato, “Waikato Regional Plan.” http://www.ew.govt.nz/policy-and-plans/Regional- Plan/Waikato-Regional-Plan/#geothermal 127 Ibid. 128 Personal communication, Jim Lawless, Sinclair Knight Merz, December 9, 2010. 129 Personal communication, Jim Lawless, Sinclair Knight Merz, December 9, 2010 and Chris Bromley, GNS Science, December 9, 2010. 130 Brett O'Shaughnessy, “Use of economic instruments in management of Rotorua geothermal field, New Zealand” Geothermics 29 (2000): 539. The Pembina Institute 32 Building a regulatory framework for geothermal development in the NWTPDF Image | geothermal energy development in the NWT
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