Petroleum permit fees and royalties

An overview of petroleum permit fees and royalty requirements.

NZP&M's activities include processing and monitoring prospecting, exploration, and mining permits. We collect fees for these activities, as prescribed in the Crown Minerals (Petroleum Fees) Regulations 2016.

Fees levels are set to recover costs and are not meant to make a profit. They are separate to - and independent of - the royalties regime, which ensures a fair financial return to the Crown from the development of its minerals estate.

Application fees

All fees are in in $NZD.

Prospecting permit - $8,337.50

Exploration permit - $8,337.50

Any application under section 36 of the Act - $4,025.00

Extension of duration of exploration permit under section 35A of the Act - $19,435.00

Minister’s consent under section 41, 41A, 41B, or 41C of the Act - $3,450.00

Annual fees

All fees are in $NZD and include GST (Goods and Services Tax).

Please Note: NZP&M does not accept manual credit card payments on applications.

Payments by telegraphic transfer must ensure overseas bank charges are set to "Ours". Permit holders pay for any bank fees for telegraphic transfers.

Cheques should be made out to "MBIE-Economic Development".

Prospecting permits

Exclusive permits - $1.00 per square kilometre or part of a square kilometre.

Non-Exclusive permits - $50,000

Exploration permits

$12.13 per square kilometre or part of a square kilometre, or $10,350.00, whichever is greater.

Mining permits

$139.15 per square kilometre or part of a square kilometre, or $17,250.00, whichever is greater.

However, if a mining permit covers an area of less than 0.1 square kilometres, then the annual fee payable under the permit is $1,610.00.

Royalties

Royalties are set to ensure the Crown receives a fair financial return for the development of its minerals to the benefit of New Zealand.

Permit holders may have an obligation to file and pay royalty returns and these are detailed within the appropriate Petroleum Programmes or Regulations.

New permits granted since 24 May 2013 are subject to pay royalties under the Crown Minerals (Royalties for Petroleum) Regulations 2013.

Permits granted under a previous minerals programme continue to pay royalties based on those programmes.

Many current permit holders operate under a past royalty regime. See your permit to identify the royalty regime and minerals programme that apply for it. Usually this will be the regime that applied when the original permit was granted.

Making royalty returns and payments

NZP&M reminds permit holders when a royalty return is due.

We will send you a royalty return form to calculate your royalty liability. It explains the information needed for calculation of royalties, including the accounting profits royalty.

If you are not sure when the due date is, or have not received your form, please contact us.

If you transfer a permit, a permit expires, a permit is surrendered, or a permit is revoked you must make a final royalty return and payment (we will usually send you the necessary form).

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