13 Jul 2010
TODD POHOKURA LIMITED V SHELL EXPLORATION NZ LIMITED AND ANOR HC WN CIV-2006-485-1600
- Citation
- openlaw-7064e5a6_6989_4e2d_9297_64d3073a34d5.pdf
- Court
- High Court
The Court construed Article 10.1 as conferring on each party a right and obligation to take its share of total production actually available at the delivery point; the level of production for each permit year is appropriately determined by the operator's WP&Bs approved under Article 6.3 and by operating committee decisions. The off‑take rules and nomination protocols were competent special/operational arrangements for disposition of production and validly adopted; implied duties of good faith are narrow (honesty and avoidance of arbitrary/perverse exercise of power) and do not support Todd's…