Crown Minerals (Royalties for Petroleum) Regulations 2013

Reprint as at 23 May 2013

Crown Minerals (Royalties for Petroleum) Regulations 2013

(SR 2013/126)

Jerry Mateparae, Governor-General

Order in Council

At Wellington this 22nd day of April 2013

The Right Hon John Key presiding in Council


Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

These regulations are administered by the Ministry of Business, Innovation, and Employment.

Pursuant to sections 105 and 105A of the Crown Minerals Act 1991, His Excellency the Governor-General, acting on the advice and with the consent of the Executive Council and on the recommendation of the Minister of Energy and Resources, makes the following regulations.


1 Title

2 Commencement

Part 1
Preliminary provisions

3 Application

4 Interpretation

5 Meaning of development costs

6 Meaning of exploration costs

7 Meaning of petroleum producing activities

8 Meaning of production costs

9 Meaning of related parties

10 GAAP accounting procedures to be used

11 Form of provision of documents if not prescribed

Part 2
Royalties for petroleum

Subpart 1When royalties payable and rates of royalties

12 Permit holder must pay royalties

13 Royalty payable under exploration permit

14 Royalty payable under mining permit

15 Royalty payable on underground gas storage facility

Subpart 2How to calculate net sales revenues, gross sales revenues, accounting profits, and allowable APR deductions

16 Net sales revenues

17 Gross sales revenues

18 Netbacks and net forwards

19 Point of valuation

20 Calculation of accounting profits

21 Allowable deductions for development costs

22 Allowable deductions for exploration costs

23 Allowable deductions for decommissioning costs

24 Allowable deductions for operating and capital overhead allowance

25 Allowable deductions for operating losses and capital costs carried forward

26 Allowable deductions for decommissioning costs carried back and recapture of capital expenditure deductions

27 Provisions relating to capital proceeds

28 Items not calculated according to arm's length contract

29 Carrying forward exploration costs

30 Deductions allowed only once

31 Arm's length value

32 Allowable APR deductions if transfer of participating interest

33 Calculations must be exclusive of GST

Part 3
Royalty returns, payments, and refunds

34 Reporting period

35 Royalty returns: categories of, and when and how required

36 Interim royalty return: contents

37 Annual royalty return: contents

38 Final royalty return: contents

39 Royalty returns where permit holder 2 or more permit participants

40 Auditor statement

41 Payment and refund of royalties

42 Accounts and records

43 Transitional provision

Gazette information

Reprint notes