Council to prosecute over spill

By FIONA ROTHERHAM

The Taranaki Regional Council is to prosecute Fletcher Challenge Energy (FCE) for three oil spills during the drilling of the Pohokura-1 discovery well last month.

The council made the decision yesterday after considering a full report from FCE, as the field operator, and its own officials on the "unauthorised discharges."

FCE said the three oil spills into the sea occurred during testing of the Pohokura-1 well, 4.5km off the Motonui coast. The amount spilled was in total around 55 litres - what you could fit into a car's petrol tank.

FCE immediately acknowledged responsibility and is unlikely to contest the prosecution.

It claimed there had been no long-term environmental damage as a result of the spills in early April when a 2km stretch of coastline was polluted with a waxy, crude substance. The company spent several days removing contaminated sand from the beaches and had reviewed procedures to ensure the problems were not repeated.

The explorer has agreed to engage an independent party to conduct an environmental survey of the North Taranaki coastline, to establish a benchmark in the event of future offshore spills.

The maximum fine under the Resource Management Act is $200,000, although council resource management director Bill Bayfield said the highest fine awarded by the court so far in the Taranaki area was $60,000.

FCE was fined $50,000 in 1995 after being prosecuted by the regional council when a blow-out in an oil well on the McKee onshore field polluted a nearby river.

Production testing is due to start tomorrow on the Pohokura-2 well after being delayed several days by heavy seas and mechanical problems.

The two-drill stem tests will involve flow and pressure build-up periods over 12 to 24 hours.

The tests will help determine the potential gas flow and any variations in the field's composition.

It is estimated the field could contain up to 500 billion cubic feet of gas, making it New Zealand's third-largest gas discovery.

It is also thought to have substantial quantities of condensate (light oil) that could speed its development.

The Pohokura prospect is owned by FCE with a one third share, German-based Preussag Energie with a further third, Shell with 18.3 per cent and Todd with 15 per cent.