TL: QUESTIONS AND ANSWERS ON THE CONTACT-GREENPEACE 
AGREEMENT
SO: GREENPEACE NZ, (GP)
DT: JULY, 1997

1.  WHAT IS THE AGREEMENT ABOUT?

The agreement is about mitigating the adverse effects of 1
million tonnes of the major greenhouse gas, CO2, which will be
emitted annually from the proposed Otahuhu B power station. 
This is a gas-fuelled combined cycle 400 MW power station which
will be commissioned in 1998.

Contact argued that because the new power station was more
efficient at turning gas into electricity than other existing
power stations that it would displace other, less efficient --
and more CO2 producing -- plant.  Greenpeace argued that the
displacement effect claimed could not be guaranteed unless it
was underwritten with formal agreements, and that increasing
capacity in the electricity sector would ultimately result
overall in more CO2 being produced in spite of displacement of
some old plant.

2. HOW DID THE AGREEMENT COME ABOUT?

Negotiations were initiated by Contact after Greenpeace lodged
an appeal to the Environment Court against the granting of an
air discharge consent to the proposed Otahuhu B power station by
the Auckland Regional Council. The agreement came about through
a formal process of negotiation with an independent mediator
between Greenpeace and Contact Energy.  

3.  WHY WASN'T THE DECISION LEFT TO THE ENVIRONMENT COURT?

The Court has little flexibility to make a judgement on
mitigating CO2 under the Resource Management Act.  Because the
Minister for the Environment has not used the RMA mechanism of
a National Policy Statement to give national guidance to either
the Court or Regional Councils, there is no clear legal
precedent for mitigating an air discharge beyond the region in
which the power station is operating.  The agreement between the
two parties effectively permitted a national approach to be
taken and has set a national precedent for dealing with CO2.

4. WHAT ARE THE MAIN PROVISIONS OF THE AGREEMENT?

While the completed agreement is confidential between the two 
parties, the main features of the agreement are:

* Contact has agreed to commit to Greenpeace's goal of reducing
CO2 emissions to the greatest extent possible and to develop and
implement renewable energy sources;

* Contact has agreed to commitments that will result in a
reduction in net CO2 emissions over the first ten years of
Otahuhu's operation, and for full mitigation measures to c
continue through the lifetime of the plant;

* Specifically, Contact has agreed to mothball some older less 
efficient turbines at its New Plymouth power station immediately
and later on, and to underwrite further displacement from the
wider electricity sector by guaranteeing further mothballing if
the displacement is not achieved.