Contact and Crown reach agreement on Wairakei land

1.00pm

The Crown and Contact Energy Ltd have reached an agreement that protects the current and future use of Crown lands at Wairakei for recreation, tourism, forestry and geothermal electricity generation.

The agreement, announced today by Tourism Minister and Taupo MP Mark Burton and Contact chief executive Steve Barrett, concludes outstanding land transfer matters related to the 1988 sale of the Crown's electricity generation assets at Wairakei to Contact's forerunner -- the Electricity Corporation of New Zealand (ECNZ).

Mr Burton and Mr Barrett welcomed the agreement, saying it was a good outcome for the Crown, Contact and Taupo.

"Use of Crown lands at Wairakei is now assured for recreation, tourism, forestry and electricity generation," said Mr Burton.

"In addition, the agreement sets out clearly the rights and responsibilities of the Crown and Contact in respect to any future development."

Mr Barrett said the agreement provided certainty around the continuing use of Wairakei for geothermal electricity generation while protecting the special character of the area and its use for tourism and forestry purposes.

"The agreement is particularly significant given that Wairakei Geothermal Power Station is a key component of the national electricity system, providing over 4 per cent of New Zealand's electricity supply.

"Together with Contact's Poihipi Geothermal Power Station, Wairakei contributes almost half of the electricity generated from geothermal sources in New Zealand," he said.

Key outcomes of the agreement include:

* Contact preserves the sole right to access the underground geothermal resource at Wairakei for current and future electricity generation;

* Contact has the ability to occupy specific sites to install geothermal wells, pipes and other equipment. Any such development would be subject to usual Resource Management Act processes;

* The Crown preserves prime tourism and scenic areas for current and future use. These areas have been identified by the Crown and include the Craters of the Moon and existing tourism operations along the Waikato River;

* The Crown further preserves areas identified as important for forestry use.

- NZPA