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EXHIBIT 10.14
PETROLEUM MINING PERMIT 38148
(NGATORO)
Background
1. The Licensees listed below are the holders of Prospecting
Licence 38706.
Licence Interest %
Fletcher Challenge Energy Taranaki Limited 26.50835
Southern Petroleum (Ohanga) Limited 26.50835
Petroleum Resources Limited 18.18330
Australia and New Zealand Petroleum Limited 13.35000
Minora Energy (NZ) Limited 4.45000
Minister of Energy 11.00000
2. The Licensees have applied to the Minister of Energy to
surrender the Prospecting Licence 38706 as to part of the
land comprised in that Licence and described in the Second
Schedule to this Permit. The Licensees listed in the First
Schedule to this Permit have applied to the Minister of
Energy to receive in exchange a mining permit.
NOW THEREFORE
I, MAX BRADFORD, MINISTER OF ENERGY, acting pursuant to section
25 of the Crown Minerals Act 1991 HEREBY GRANT a Mining Permit,
on the conditions in this Permit and Schedules, to the Permit
Holders named in the First Schedule to this permit.
PERMIT CONDITIONS
1. Definitions
1.1 In this Permit:
"Permit" includes the Schedules to this Permit;
"Permit Holder" means the permit holders named in the First
Schedule to this permit and refers to each and all of the
permit holders jointly and severally.
1.2 The headings to the Clauses of this Permit are for
convenience only and have no legal effect.
2. Duration
2.1 This permit is granted for a duration of fourteen (14)
years.
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3. Mining
3.1 The Permit Holder shall have the right to prospect, explore,
and mine for petroleum in the area described in the Second
Schedule to this Permit, and delineated on that plan in the
Schedule.
4. Compliance
4.1 The Permit Holder will comply with the conditions specified
in this Permit and with every other obligation arising under
the Crown Minerals Act 1991 and any Regulations made under
that Act.
5. Work Programme
5.1 The Permit Holder will comply with the work programme in the
Third Schedule to this Permit.
5.2 The Permit Holder is responsible for ensuring that all
appropriate consents are obtained before commencing any of
the works authorised under the Permit.
5.3 The Permit Holder will at all time make all reasonable
efforts to conduct exploration, appraisal and mining
operations as appropriate in accordance with good oilfield
practice and will meet that degree of due diligence and
prudence reasonably and ordinarily exercised by experienced
operators engaged in a similar activity under similar
circumstances.
6. Fees
6.1 The Permit Holder will pay all fees payable in relation to
this Permit.
7. Royalties
7.1 The Permit Holder will pay to the Secretary of Commerce a
royalty calculated in accordance with the conditions set out
in the Fourth Schedule to this Permit.
8. Date of Commencement of Production
8.1 Mining operations may commence on the day following the
grant of this Permit.
9. Wells and Production Facilities
9.1 The Permit Holder will produce petroleum from wells in the
Ngatoro Field in the manner described in the approved Work
Programme.
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9.2 The Permit Holder will not undertake any works in relation
to the injection of water or gas into any underground
reservoir (except as may be authorised by an amendment to
this Permit).
9.3 The Permit Holder shall not flare gas from the Ngatoro field
in the normal course of operations during any twelve month
period commencing on 1 July in any year unless the consent
of the Secretary of Commerce to such flaring has been
obtained prior to the commencement of the period within
which flaring is to take place.
9.4 The Permit Holder may drill additional wells and conduct
initial well testing operations in accordance with the
relevant Crown Minerals (Petroleum) Regulations. Additional
wells drilled into petroleum reservoirs identified in the
existing wells Ngatoro-1, -2, -3, -4, -5, -6, -7, -8 may be
placed into commercial production under this Permit
according to the work programme in the Third Schedule. New
petroleum reservoirs discovered in additional wells shall
not be placed in commercial production except as authorised
by an amendment to this permit.
10. Amendments to Permit
10.1 The Permit Holder may request an amendment to this Permit by
forwarding to the Secretary of Commerce, for consideration
by the Minister of Energy, the information referred to in
the relevant Crown Minerals (Petroleum) Regulations.
10.2 An amendment to the Permit will not generally be required
for minor modifications to equipment where such
modifications do not affect the approved production
operations. In such cases, details of any changes to
facilities or equipment included in the Work Programme
approved in the Third Schedule are to be provided to the
Secretary within 3 months of installation thereof.
11. Abandonment
11.1 At the completion of production operations in the Permit,
the Permit Holder shall abandon any wells, remove surface
facilities and restore operating sites in accordance with
good oil field practice. Any gas and liquid export lines
well be swabbed free of gas/hydrocarbon liquid and abandoned
in-situ. Prior to the abandonment of any facilities in the
Permit, the Permit Holder will submit a report to the
Secretary of Commerce describing the proposed abandonment
and the reasons for the abandonment.
Dated at Wellington this 23rd day of December, 1996
/s/ Max Bradford
Minister of Energy