Environment Southland councillors will consider fracking applications case by case.

The recommendation to "continue to deal with any application for gas exploration and production activities on the merits of each case and within the operative policy and regulatory frameworks" was put to the Environmental Management committee yesterday.

Councillors approved the recommendation after a presentation explaining the tender block process, how fracking worked and its potential benefits, by Ministry of Business, Innovation and Employment petroleum strategy, planning and promotion manager Bradley Ilg.

He said 42 per cent of profits from these operations was returned to New Zealanders.

The tender process and new legislation would stop "shoddy companies" from winning blocks, he said.

When the proposed tender blocks were online they were "advertising New Zealand to the exploration world - Come to New Zealand and hopefully we will collect your royalties."

Applicants would need to consider the management of stress strain, water quality, resource management, air quality, land, data and information, and companies would also need good health and safety, environmental, and indigenous people records, he said.

It could be 10 years before a site was mined commercially if tenders were accepted,Mr Ilg said.

Cr Jan Riddell said it was important the ministry managed potential environmental effects of abandoned wells. She was told the issue was being considered in the new legislation.

- © Fairfax NZ News

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