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A controversial plan to explore for oil in the Tararua district has been given approval this afternoon.
The Horizons Regional Council has granted consents for TAG Oil and Apache to start drilling exploratory wells on private land near Dannevirke.
However, the council's emphasising that the consents do not allow for the contentious oil and gas drilling technique known as fracking, where fluid at high pressure is injected into cracks in rocks to release gas.
"Careful consideration was given to the potential effects of these consented activities and conditions have been imposed on TAG and Apache to ensure that any potential effects on the environment are avoided, mitigated or remedied," Dr Nic Peet from Horizons Regional Council said.
"Horizons engaged experts from both within New Zealand and overseas on key areas such as well integrity and ground and surface water quality as part of this process."
Tararua District Council had already given permission for work above ground at the site.
Protesters said the search for oil could be disastrous in the earthquake prone area, especially if fracking is used. They were also concerned about the impact on the local water supply.
Fracking has been allowed to continue in New Zealand following an investigation by the Parliamentary Commissioner for the Environment last year.