East Coast council to be hosted by oil officials

Published: 1:42PM Sunday January 22, 2012 Source: Fairfax

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Council staff are set to be hosted on an all-expenses paid trip to North America by oil exploration officials, who say there is potential to build "thousands" of wells on the East Coast.

The Sunday Star-Times revealed last weekend that Canadian company TAG Oil - which is involved in a joint-venture with Apache Corp - believed the area was "literally leaking oil and gas".

A document presented to investors in North America in December stated the company had identified 1.7 million acres (687,966ha) of "conventional and unconventional targets" on the East Coast of the North Island. There was potential for "billions of barrels" of oil, it said.

The report has sparked outrage among the growing anti-exploration community on the coast.

As opposition grows to the plan, oil exploration officials are set to host local body staff on a 10-day trip to Canada from February 3-13.

Gisborne District councillor Manu Caddie said the delegation would be able to "set their own agenda".

As well as having discussions with officials from TAG and Apache, they also hoped to meet environmentalists, oil industry regulators and representatives of Canada's indigenous peoples community.

Green Party energy spokesman Gareth Hughes said the trip to North America could be beneficial for Gisborne District Council officials.

But he said it was imperative they weren't constantly shadowed by TAG officials and had the chance to also talk with those who had taken a stand against oil developments.

"Obviously the council needs to get the best advice and appreciation of the issues facing them," he said. "But the big risk is that they get captured by the experts of TAG. I am not suggesting that there is any bribery or anything like that, but being a small council they obviously don't have the expertise or knowledge that TAG has.

"The risk is that TAG can trot out any number of experts to toe the TAG line."

Caddie - who stressed he was not speaking on behalf of the council - said the oil industry was "not welcome" on the East Coast of the North Island.

"We need to maintain our insistence that the oil industry should not be welcome here as every dollar spent on accessing fossil fuels is a dollar not going into renewable energy and clean technology development," Caddie said.

"We need to remember that any opposition we have now may make us unpopular with some people but will mean we can look our grandchildren in the eyes when they ask what we did to ensure they inherited a livable planet and a healthy community."

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Caddie said he was aware that the joint-venture had drilled eight exploration wells near the settlement of Whangara, which was the setting for the 2002 movie Whale Rider.

He understood more drilling was planned this week.

Caddie said he was surprised at the contents of the TAG report to investors. East Coast residents had been told at a public meeting last year that "finding something worth pursuing is a long way from confirmation".

That stance contradicted TAG's written message to shareholders.

"While oil companies always talk up their prospects," Caddie said, "I think it says something about the integrity of the industry and the way they can manipulate both investors and communities involved with their activities.

"They have committed to regular meetings with locals but they have also progressed their plans and started exploration before securing local support, which seems like a recipe for distrust and ongoing problems."

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