Managing the Crown Mineral Estate

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1 Managing the Crown Mineral Estate Challenges, Opportunities and Our Responses Greg Hollard and Naomi Hughes Geospatial Advisors Crown Property Forum 04/04/2018

Background in IT and GIS systems delivery greg.

2 The Presenters Greg Hollard Senior Geospatial Advisor GIS whizz kid. Background in IT and GIS systems delivery Naomi Hughes Geospatial Advisor Map geek from way back

3 Outline Background to the crown mineral estate and our role at MBIE. Challenges we face identifying land and mineral ownership. Treaty of Waitangi commitments. Where to from here?

4 Our Role Manage permits and promote investment in New Zealand. Engage with councils, iwi and communities about petroleum and minerals development. Stewards of a world class collection of geoscience and geospatial digital information and related drilling samples. Manage compliance and collect royalties on behalf of the Crown.

5 The Crown Mineral Estate Statute minerals all gold, silver, petroleum, uranium. Ownership of other minerals: Territorial Sea: Crown (except for CMT) ECS: Crown Land: Crown & Private EEZ: Crown Pounamu: Ngāi Tahu

What a permit includes A permit gives the permit holder the right to prospect, explore or mine for specified minerals, in a specific place, for a specific time.

6 What a permit includes A permit gives the permit holder the right to prospect, explore or mine for specified minerals, in a specific place, for a specific time. A permit is required for anyone wanting to look for or extract crown owned minerals. Image source: A mining prospector, near Skippers, Otago. Making New Zealand :Negatives and prints from the Making New Zealand Centennial collection. Ref: MNZ /2-F. Alexander Turnbull Library, Wellington, New Zealand. /records/

7 What a permit excludes Land access Resource consent Mineral ownership Image source: Hywel Williams [CC BY-SA 2.0 ( via Wikimedia Commons

8 Why we do it Revenue - What it s worth (lots). Land access revenue. To use our understanding of the energy and resources sector to increase prosperity through petroleum and minerals exploration and production. To maximise the return that the energy and resource industries deliver for the benefit of all New Zealanders.

9 Mineral Ownership The Crown does not definitively know the extent of its minerals estate. Mineral ownership is dependent on the legislation in place when land was alienated from the Crown. Pre-1948 the rights to any minerals underneath were included in the land title Post-1948 when the Crown sells land, mineral rights are reserved to the Crown Private mineral ownership can also be traded independently of the land itself.

10 Title Lineage defines Mineral Ownership Need to prove the provenance of the ownership / alienation from the crown. Multiply this for every parcel in a permit application - Could be many hundreds of parcels per application. Roads and other non-property parcels add extra complexity. Image source:

11 Parcel problems Rural property focus most extractives are on rural property (except Waihi). Rural precision can be a bit rough in places. Old Cadastral definitions tracking parcel history where there have been subdivisions: Allotments Blocks Hundreds Parishes Runs Settlements A Moiety or two

Sub-Parcel Ownership Sub-Title/Sub-Parcel ownership minerals are part crown and part privately owned Not always able to be mapped Legal Description Instrument of Title Ownership of Non Statute

12 Sub-Parcel Ownership Sub-Title/Sub-Parcel ownership minerals are part crown and part privately owned Not always able to be mapped Legal Description Instrument of Title Ownership of Non Statute Minerals Part RS 1599 WS5A/508 Private Surface only (no minerals) WS2A/1217Canc WS2A/632Canc WS3A/324 Minerals only (part 4/12 share) Minerals only (part 1/12 share) Minerals only (part 7/12 share)

13 Challenges Mineral Ownership Information is supplied by the applicant. Limited number of accredited property experts. Some are known to be unreliable in their interpretation of mineral ownership information. Conflicts of interest - many of them work for the mining industry.

14 Challenges Mineral ownership reports are a mandatory component of a competitive tender application. Cost of a mineral ownership report discourages applications for competitive tenders.

15 Challenges Crown property is not easily identifiable: 1. HER MAJAETY THE QUEEN 2. HER MAJESTY QUEEN VICTORIA 3. HER MAJESTY THE QUEEN 4. HER MAJESTY THE QUEEN-GRANTOR 5. HER MAJESTY THE QUEEN - GRANTEE 6. HER MAJESTY THE QUEEN - GRANTOR 7. HER MAJESTY THE QUEEN (ACTING BY AND THROUGH THE SECRETARY OF DEFENCE) 8. HER MAJESTY THE QUEEN (GRANTOR) 9. HER MAJESTY THE QUEEN (NEW ZEALAND POLICE) 10. HER MAJESTY THE QUEEN ACTING BY AND THROUGH DIRECTOR-GENERAL OF CONSERVATION 11. HER MAJESTY THE QUEEN ACTING BY AND THROUGH THE COMMISSIONER OF POLICE FOR NEW ZEALAND 12. HER MAJESTY THE QUEEN ACTING BY AND THROUGH THE DEPARTMENT FOR COURTS 13. HER MAJESTY THE QUEEN ACTING BY AND THROUGH THE MINISTER OF LANDS 14. HER MAJESTY THE QUEEN ACTING BY AND THROUGH THE SECRETARY OF JUSTICE (FOR AND BEHALF OF THE DEPARTMENT FOR COURTS) 15. HER MAJESTY THE QUEEN AS GRANTOR 16. HER MAJESTY THE QUEEN FOR BUILDINGS OF THE GENERAL GOVERNMENT 17. HER MAJESTY THE QUEEN FOR USE IN CONNECTION WITH A ROAD 18. HER MAJESTY THE QUEEN PURSUANT TO SECTION 53(1) OF THE CANTERBURY EARTHQUAKE RECOVERY ACT HER MAJESTY THE QUEEN PURSUANT TO THE CRIMINAL PROCEEDS OF CRIME ACT HER MAJESTY THE QUEEN UNDER SECTION 104 OF THE GREATER CHRISTCHURCH REGENERATION ACT HER MAJESTY THE QUEEN UNDER SECTION 53(1) CANTERBURY EARTHQUAKE RECOVERY ACT HER MAJESTY THE QUEEN UNDER SECTION 53(1) OF THE CANTERBURY EARTHQUAKE RECOVERY ACT HER MAJESTY THE QUEEN UNDER SECTION 55 OF THE CANTERBURY EARTHQUAKE RECOVERY ACT HER MAJESTY THE QUEEN UNDER SECTION 91(1) OF THE GREATER CHRISTCHURCH REGENERATION ACT HER MAJESTY THE QUEEN UNDER SECTION 91(1)(A) OF THE GREATER CHRISTCHURCH REGENERATION ACT HER MAJESTY THE QUEEN UNDER SECTION 92 (1) OF THE GREATER CHRISTCHURCH REGENERATION ACT HER MAJESTY THE QUEEN UNDER THE GREATER CHRISTCHURCH REGENERATION ACT HER MEJESTY THE QUEEN 29. HIS MAJESTY THE KING 30. HERMAJESTY THE QUEEN 31. HMQ FOR USE IN CONNECTION WITH A ROAD

16 Challenges Anachronistic ownership records: Superintendent Of The Province Of Canterbury owns an active quarry! Reference: Abolition of Provinces Act, 1875 s.9 But also: Boards: Education(including an Eduction Board); Rabbit; Pest Destruction; Power; Road; Railway District Land Registrars

A study of prospectivity is currently underway, hoping to attract exploration activity.

17 Future Green Minerals As we transition to a low carbon future, the demand for green minerals is increasing. These minerals aren t nationalised. A study of prospectivity is currently underway, hoping to attract exploration activity. However, the lack of easy access to mineral ownership information is a huge barrier to investment. This impacts ability to maximise value.

18 The plot thickens We have an incomplete picture of: Crown owned land; Crown owned minerals on crown land; Crown owned minerals on private land; And Iwi ownership of minerals. We collect significant fees for a permit, and need to be able to definitively grant the rights to certain minerals. We are required to consult with Iwi (under the Crown Minerals Act 1991), and we also have Treaty of Waitangi commitments to uphold.

Treaty of Waitangi commitments Some Treaty settlements involve a transfer of mineral ownership from the Crown to Iwi. The minerals involved vary between settlements.

19 Treaty of Waitangi commitments Some Treaty settlements involve a transfer of mineral ownership from the Crown to Iwi. The minerals involved vary between settlements. Once a settlement has been enacted, we cannot issue permits or collect royalties for those minerals over the specified land. Figure 1. Examples of pakohe adzes. Pakohe (Argillite), is as mineral involved in some Treaty settlements. Historically used for making tools and weapons. Image source:

20 But, permits and parcels aren t related Permits can be any shape Settlement areas are defined by land ownership boundaries

21 Spatial Information Enables overlay of two previously unrelated features to determine if they overlap in the real world. E.g. a mining permit (any shape) compared to a Treaty settlement area (parcel based). Sometimes location may be the only thing two features have in common. Image source:

Difficult matching legal descriptions/ appellations where there is no

22 What could be so hard about that? The Treaty settlement documents contain lists of legal descriptions. Difficult matching legal descriptions/ appellations where there is no spatial representation. Abbreviations: Part Section 19 Block IX Thames Survey District Pt Sec XIX Blk 9 Thames SD

We need to ensure transfer of knowledge to agencies with commitments when purchases occur.

23 Right of First Refusal (RFR) Some RFR land involves a transfer of mineral ownership if purchased. RFR can be in place up to 178 years. We need to ensure transfer of knowledge to agencies with commitments when purchases occur. Image source:

When a Customary Marine Title (CMT) is granted, minerals change ownership to the CMT holder.

24 Marine and Coastal Area Nobody owns the marine and coastal area, but the minerals found in these areas have ownership rights usually the Crown. When a Customary Marine Title (CMT) is granted, minerals change ownership to the CMT holder. But the areas are difficult to define accurately. Image source:

Challenges Liability for abandoned infrastructure (e.g. petroleum wells): Need to know definitively what land is crown owned vs private; Possibility of overlap with Treaty settlement land.

25 Challenges Liability for abandoned infrastructure (e.g. petroleum wells): Need to know definitively what land is crown owned vs private; Possibility of overlap with Treaty settlement land. Image source: Restored site. Photo from Bureau of Land Management, Visual Resource Management: Final Reclamation, Part 5 (May 2006).

26 Summary of Treaty related challenges Transfer of mineral ownership affects where we can permit. Identifying the areas where this applies is difficult due to inconsistent appellations and a lack of spatial data. Customary Marine Title areas are difficult to define. Right of First Refusal arrangements are in place until We have begun collaborating to share spatial Treaty Settlement data across government.

Summary We have difficulty identifying: Crown owned land; Crown owned minerals; Iwi ownership of minerals. Image: Kopuku opencast coal mine, Waikato. Ref: WA-70987-F.

27 Summary We have difficulty identifying: Crown owned land; Crown owned minerals; Iwi ownership of minerals. Image: Kopuku opencast coal mine, Waikato. Ref: WA F. Alexander Turnbull Library, Wellington, New Zealand. /records/ It s a challenge using legal descriptions to identify parcels and trace title history back through time. It is costly to repeat this for large numbers of parcels. Identifying Treaty settlement areas for mineral ownership is an area of concern. There are potential liabilities on crown, private and Treaty settlement land.

28 If we don t have accurate and complete information, we run the risk of granting extraction rights for minerals that belong to someone else.

29 Options / Ideal World / Opportunities Ideas to improve the current status-quo: Crown ownership of land to be identified on parcels/titles. A process to replace anachronistic ownership that has been transferred to the crown. Ownership of minerals identified. Spend lots of $$$ to capture this information. Spatial representation of mineral ownership. Capture mineral ownership changes at title transfer, including Treaty Settlements.

30 Any Questions or Feedback? Contact:

Restitution of State Land in New Zealand Offer Back of Public Works Land and Return of Land to Indigenous People through Treaty Claim Settlements

Restitution of State Land in New Zealand Offer Back of Public Works Land and Return of Land to Indigenous People through Treaty Claim Settlements Craig HARRIS, New Zealand Key words: New Zealand, Land