gns science annual report 2013...activity to new zealand. our geothermal field surveys, undertaken...

GNS Science Annual Report 2013

www.gns.cri.nz

CHAIRMAN AND CHIEF EXECUTIVE’S REVIEW

AWARDS & HONOURS

Chairman Tom Campbell and Acting Chief Executive Terry Webb outline our performance and highlights from the past year.

PAGE 02

Tectonic geologist Kelvin Berryman was chosen as the 2013 William B Joyner Memorial Lecturer – the first person outside the US to win this accolade.

PAGE 08

Kia oraBenefiting New Zealand through sharing our research, technologies and knowledge with our stakeholders, including industry, government organisations and iwi/Ma-ori.

REPORTING ON OUR CORE PURPOSE

We are proud to report on our current work and its impacts for each of the outcome areas specified in our Statement of Core Purpose. PAGE 14 – 45

ISOTOPES AND ION-BEAM TECHNOLOGIES

GEOLOGY AND PAST CLIMATES

GROUNDWATER

GEOTECHNICAL ENGINEERING

ENERGY AND MINERALS

NATURAL HAZZARDS

$72m

$32m

310

GNS SCIENCE KEY FACTS

total revenue

revenue from technology transfer

science papers published

CONTENTS

GNS Science Annual Report 2013 01

DIRECT CROWN FUNDING

OUR PEOPLE

A breakdown by research type and time from research to impact.

PAGE 52

This year we are proud to report that we were awarded ‘Tertiary’ status by ACC, the highest level in the Workplace Safety Management Programme.

PAGE 11

GNS Science has consistently delivered relevant science that underpins Government’s expectations for the development of the country’s geological resources, growth of a society and economy that is resilient to natural hazards, and technological innovations that contribute to both.

We are pleased to present our achievements and financial performance for the year, and to demonstrate the contribution we continue to make to New Zealand and New Zealanders.

CONTENTS

02 Chairman and Chief Executive’s Review

06 Financial highlights

07 GNS Science at a glance

08 Honours, Awards and Distinctions

09 Science and Society

11 Our People

14 Energy and Minerals

20 Groundwater

24 Isotopes and Ion-Beam Technology

30 Natural Hazards

36 Geotechnical Engineering

40 Geology and Past Climates

46 Board of Directors

48 Management Team

51 Organisational Structure

52 Direct Crown Funding

54 Performance Indicators

56 Corporate Governance

58 Report of the Directors

59 Financial Statements

80 Directory

SCIENCE AND SOCIETY

We believe communication of our science to the public is of paramount importance. We have chosen a portfolio of targeted channels for distributing our public messages over a range of time scales, and to specific audiences.

PAGE 09

02 GNS Science Annual Report 2013


From the Chairman and the Chief Executive


GNS Science has had a solid year. Our business has continued to demonstrate its resilience to economic conditions with revenues exceeding $70 million annually over each of the last three years.

We have consistently delivered relevant science that underpins Government’s expectations for the development of the country’s geological resources, growth of a society and economy that is resilient to natural hazards, and technological innovations that contribute to both.

Financial results for 2012/13Tax paid profit for the year was $1.1 million (2012: $4.0 million, which included $1.1 million from the sale of property). This represents a return on equity of 4.2% (2012: 15.8% or 11.7% excluding the property sale). All of our operational divisions, Natural Hazards, Geological Resources and the National Isotope Centre were profitable for the year, with the latter two being most exposed to economic circumstances.

Our Resources division was adversely affected by a short-term lack of work in the petroleum and paleontology areas with the industry’s exploration programmes being delayed until later this calendar year. There were also delays in finalising contracts for overseas continental shelf extension work. Sales of our ClaritasTM seismic processing software are subject to international energy market conditions and were slow last year, but are now picking up considerably.

Our radiocarbon dating revenue (priced in $US) continued to be impacted by the issues of a high exchange rate, fewer samples being submitted from Europe, and discounted pricing from a new entrant to the market. To mitigate the financial impact, we implemented a range of efficiencies in the preparation laboratory.

Our revenue for the financial year totalled $72.0 million (2012: $73.7 million). Our Direct Crown Funding, introduced in the 2011/12 year for Crown Research Institutes, remained at $26.9 million. We also received $12.7 million from contestable MBIE (Ministry of Business, Innovation & Employment), Marsden and Earthquake Commission research contracts.

Revenue from technology transfer to private and government sectors was $32.3 million (2012: $33.5 million). Of this, $9.2 million was from EQC to maintain, enhance and operate the GeoNet hazards monitoring network. These sources, amounting to 45% of our total revenue, represent ongoing and unequivocal measures of the uptake of our knowledge. Much of our technology transfer is for repeat clients with whom we have built strong relationships.

Capital renewal and dividendDuring the year we invested $5.9 million (2012: $6.9 million) in scientific equipment, computing, and facility improvements. Major items included the building of a new laboratory facility for Wairakei, our ongoing rolling computing upgrade, strengthening our buildings at Avalon and Gracefield, upgrading our rock-testing laboratory, and new instrumentation for volcano research.

The Board is pleased to declare and provide for a dividend of $250,000 (2012: $550,000) to the shareholders, as provided for in our Statement of Corporate Intent.

CollaborationWe undertake a significant part of our research and technology transfer in partnership with other research organisations, especially the universities. This ensures that the best teams are put together to address the scientific problems, and avoids the costs of needless duplication of capability across the New Zealand science and innovation system. We also have a specific responsibility to do this as Host of the Natural Hazards Research Platform. The proportion of our total revenue used to fund these relationships has steadily increased and in the last year $8.2 million was distributed to other research providers.

Staff well-beingOur year-end staff count was 360 FTE (2012: 364 FTE). We recognise the increasingly high workload and the extra stress on our staff, particularly in the aftermath of the 2010 and 2011 Canterbury earthquakes, and the increasing demand now placed upon them to apply to other parts of the country the geotechnical lessons that were learnt from those events.

We have a good health and safety record and completed the year with no lost time injuries and over one million hours of work completed since the last such injury. Following an audit during the year, we have now been granted the highest safety management status, Tertiary, by ACC. However, we recognised that an increased emphasis was required to ensure that good processes, including a systemic approach to risk management, will continue to provide staff with a safe workplace in the future. During the year we therefore introduced a number of new systems and the Board established its Health, Safety and Environment Committee.

As reported last year, our biennial survey of staff showed that 84% of the 220 respondents state that they are proud to work for GNS Science. As Chair and Acting Chief Executive, we are proud of our staff’s tremendous achievements through the year. From these many achievements, we highlight here some of the innovations that we expect to have the greatest ultimate impact.

Innovations for energy resourcesOur new Petroleum Basin Explorer interactive web-based tool now has over 1000 registered users including over 90 exploration companies. These users have downloaded about 950 technical reports and data products during the year. We have also created an updated overview of New Zealand’s sedimentary basins which was published by NZ Petroleum & Minerals in pursuit of its mission of attracting exploration activity to New Zealand.

Our geothermal field surveys, undertaken as part of our research, enhance the industry’s ability to identify drilling targets and help to promote future exploration of deeper resources, up to 5km deep. We have also undertaken laboratory research to simulate brine injection into hot rock that will help industry address the long-standing problem of silica scaling.


We have continued building upon our relationship with Nga-ti Tuwharetoa Geothermal Assets and Tuaropaki Power Company to provide advice on drilling new wells and managing their geothermal interests at Kawerau and Mokai. We are continuing to create the foundations for enduring partnerships with other iwi/Ma-ori in support of their development aspirations, including expert witness advice at resource consent hearings.

Expansion of our international activities has seen us successfully undertake commercial ventures with highly valued clients in Philippines, Papua New Guinea, Chile and Japan, with ongoing support from the New Zealand Aid Programme for geothermal training in Indonesia.

Innovations for managing groundwaterIn order to support consent assessments and water resource management, we have developed a new software tool for our public website that automatically delineates the land area that contributes water to a pumping well.

We have improved our world-leading high-resolution capability to date groundwater from tritium concentrations. This enables direct assessment of the impacts of land-use on groundwater quality, for example, to measure nitrate pollution. We also developed a method to model tritium transport for the western Lake Taupo catchment to provide local bodies with a better understanding of surface-groundwater interactions in river catchments. This will help to prevent further deterioration of groundwater quality.

Nuclear innovations for industry and societyOur discovery, using nuclear accelerator analyses, that shipping exhaust can be a significant cause of air particulate emissions in New Zealand has led the Ministry of Transport and the Ministry for the Environment to begin exploring policy options for reducing this source.

For the metals industry, we designed, built and successfully installed an ion source for our client to clean and implant nitrogen into metal surfaces to protect

them from abrasion. Our unique expertise in the design and operation of low-energy ion implantation systems has also been recognised by the Australian Nuclear Science and Technology Organisation, which has contracted us to design and build an ion implanter valued in excess of $500,000.

Our proof-of-concept for a nanostructured magnetic sensing device has been installed for testing by an industrial client. We have a number of other exciting nanotech and ion-beam projects in progress with our industry collaborators.

We achieved a major step for the honey industry in resolving authentication issues affecting the export of high-value manuka honey. Our new carbon isotope test is now incorporated into the Association of Official Analytical Chemists’ honey standard.

Finally, a large number of New Zealand and overseas geologists, archaeologists and antiquarians will benefit from our newly developed fast-turnaround and small-sample-size accelerator mass spectrometer facility for high-precision carbon dating.

Innovations for Canterbury earthquake recoveryWe continue to work closely with the Canterbury Earthquake Recovery Authority, the Recovery Minister’s office, the Department of Building and Housing, and Treasury to provide assessment of future earthquake hazard so those involved in the rebuilding of Christchurch, including insurers and brokers, have on-going science input to their decisions. We are also providing a variety of scientific services to the Christchurch City Council including liquefaction and rock-fall hazard information. In particular, our work on rock-falls has impacted CERA’s decisions on zoning in the Port Hills, Christchurch City Council’s district plan, and geotechnical consultants’ determinations on issuing notices under the Building Act. Our liquefaction report is one of the valuable tools to indicate to territorial authorities which areas in Canterbury are prone to liquefaction when making decisions about land-use planning.

Other innovations for national resilience to natural hazardsWe monitored Tongariro and White Island eruptions and, in conjunction with the Department of Conservation, kept the public informed and therefore safe. These events led directly to a new comprehensive inter-agency contingency plan that now provides clear guidelines for the co-ordination of public information during an eruption within the Tongariro National Park. We also conducted a workshop and provided equipment to give Hawke’s Bay Regional Council the capability to monitor air quality as a result of any future Tongariro eruption.

An innovation this year for advising authorities and the public about hazards was a new version of the Android application on mobile phones that shortens the notification time of earthquake alerts, increasing their usefulness for all users.

We contributed to the enhancement of building design codes based on hazard and ground deformation models that we improved in the light of the Canterbury earthquake data and other research. We have also updated the national tsunami hazard model for Regional Councils and the Ministry of Civil Defence and Emergency Management.

We have developed models for the likely numbers of breaks to water-supply pipes, followed by estimates of the time needed to repair the pipes and restore emergency-level supply to reservoirs, for the impacts of a selection of large earthquake scenarios on the bulk water-supply system for Wellington City. When combined with models for the consumption of stored water, these provide estimates of shortfalls in potable water. For example, following a severe earthquake 40,000 people could need emergency supply from alternative sources for nearly 40 days.



New Zealand Aid Programme projectsOur international work funded by the New Zealand Aid Programme not only increases our knowledge and skills, but also has significance for New Zealand’s regional diplomatic relationships through the benefits it provides to other jurisdictions.

With Indonesian partner University of Gadja Mada, and Beca from New Zealand, we completed a pilot project in Indonesia related to disaster risk reduction and preparedness. The pilot city has now doubled its budget for disaster risk management activities.

Basic geological research Our research on the greenhouse climate of the early Cenozoic (about 45 to 60 million years ago) has been incorporated into Assessment Report 5 of the Intergovernmental Panel on Climate Change. This report is expected to have a significant impact on future decisions nationally and globally for economic and societal mitigation of and adaptation to climate change.

In order to gain future benefits for New Zealand from basic earth science we, with many university-based earth scientists, are of the view that there is a compelling case for New Zealand to participate in the multi-nation Integrated Ocean Discovery Program. Scientific drilling to explore the subduction interface off the east coast of the North Island would help us discover the processes behind the slow-slip tectonic events that we are now observing regularly in this area. Their occurrence and the stress changes they cause have major implications for understanding plate boundary processes and seismic hazard in New Zealand. Additional geophysical experiments, such as exploration for gas-hydrate energy sources under the seafloor, support the case for drilling.

Public outreachSeveral years ago we boosted our public outreach programme by placing information on our public website in a more accessible form, providing curriculum-related material to science teachers, authoring books in partnership with major publishing houses, supplying topical information to the news media, and working with museums, especially Te Papa Tongarewa in Wellington.

We believe this work has a significant long-term benefit, as it makes clear to the public many of the outcomes from our use of public funds. It is therefore highly gratifying that the value of these efforts has been reinforced this past year by the National Science Challenges peak panel, which reported that improving public knowledge and uptake of science is the most important of all the challenges they proposed to Government.

AcknowledgementsWe wish to acknowledge the huge contribution Dr Alex Malahoff made to GNS Science during his tenure as Chief Executive from 2002 to his retirement during this last year. Over that period our staff numbers increased by 40% and our revenues doubled. During this period we also purchased our own premises in Lower Hutt. This is our first permanent home since the founding in 1865 of our predecessor organisation, the New Zealand Geological Survey. This combination of highly capable staff, sustainable revenue streams, and fit-for-purpose accommodation, has set the company up as a key part of New Zealand’s infrastructure for the indefinite future.

We wish to thank our clients who repeatedly seek our advice to address their science-based needs. Their support is essential for our viability and demonstrates how we are fulfilling our core purpose. We also wish to acknowledge our collaborating research partners, both nationally and internationally, for their intellectual and logistic contributions in these mutually beneficial relationships.

We thank all staff members of GNS Science for their dedicated effort throughout the year. It is to them that the company owes its continued success.

Tom CampbellChairman

Dr Terry WebbActing Chief Executive

Dr Alex Malahoff

We wish to acknowledge the huge contribution Dr Alex Malahoff made to GNS Science during his tenure as Chief Executive from 2002 to his retirement during this last year.

ACKNOWLEDGEMENTS


FINANCIAL HIGHLIGHTS

REVENUE BY SECTOR OUTCOME AREAS

REVENUE SOURCES

EXPENSE CATEGORIES

Financial Highlights

Geology and 9.6% past climates

Technology 9.8% transfer – overseas

Other 29.4% operating costs

Energy and 28.5% minerals

GeoNet 12.8%

Employee 50.2% related costs

Hazards and 49.3% geotechnicalengineering

Technology 22.4% transfer – New Zealand

GeoNet 6.2% direct costs

Groundwater 6.3%

Direct Crown 37.4% fundingMarsden 1.9%

Contestable 15.7% MBIE funding

Isotopes and 6.2% ion-beamtechnology

Contracts with 14.2% other research organisations

$1.1m

$72.0m

$49.7m

45.0%

0

4,482,380

KEY FIGURES

after-tax profit

revenue

total assets

of revenue from non-government sources

work days missed due to injury

unique visitors to our GeoNet website


GNS SCIENCE AT A GLANCE

GNS Science at a glanceGNS Science, Te Pu- Ao, is the Crown-owned science company in New Zealand that focuses on geological resources, environmental isotopes, industrial ion-beam technology and industrial isotopes, and natural hazards. We apply this scientific knowledge to create and preserve wealth, to protect the environment, and to improve the safety and wellbeing of people.

Our Ma-ori name, Te Pu- Ao, refers to the foundation, origin and source of the world in its entirety, from the atomic through to planetary scales.

The benefits we deliver for New Zealand include: • wealth and security from energy,

mineral, and water resources• mitigation of the economic and social

effects of natural hazards • development of new technologies

such as nano-scale devices and non-invasive scanning.

These benefits arise directly from our research into processes and endowments within the Earth’s crust including: • rocks, minerals, and groundwater• earthquakes, volcanoes, landslides

and tsunami• hydrocarbons and geothermal energy• geobiology and climate history • gravitational and electromagnetic fields• natural isotopes and radiation.

Staff and revenueOur 360 staff are located in Lower Hutt (75%), Taupo (20%), and Dunedin (5%).Our revenue is generated from:• direct government grants for research

(35-40%)• contestable public-good research

contracts (15-20%)• technology transfer via consultancy,

product development, and analytical services for the private sector, and for central and local government (30-35%)

• monitoring geological hazards for the Earthquake Commission (10-15%)

Scope and governanceWe operate as a limited liability company owned by the New Zealand government, and with an independent Board of Directors. This unique structure allows us to:• focus on strategically important science

at a national level• engage in the full spectrum of science

from basic research through to technology transfer, consultancy and product development

• undertake work for the public and private sectors

• operate in New Zealand and internationally

• have autonomy and self-determination. Each year we invest most of our tax-paid profit in scientific equipment and infrastructure. This ensures our capabilities keep pace with, or lead, international standards.

Our clients include• New Zealand central government

agencies• regional and local government• overseas government agencies• oil and gas exploration companies• geothermal energy exploration and

operating companies• hydroelectricity operating companies• the onshore and offshore minerals

exploration industries• meat, dairy, wool, timber, and

horticulture processing industries• insurance and reinsurance companies• engineers, developers, and

infrastructure companies• museums• research organisations in New Zealand

and overseas.

Visit our website: www.gns.cri.nz


HONOURS, AWARDS AND DISTINCTIONS

Honours, Awards and DistinctionsGeomorphologist David Barrell won the McKay Hammer, awarded by the Geoscience Society of New Zealand, for his work on South Island glacial geomorphology and the record of climate change.

Geologist Kelvin Berryman was chosen as the 2013 William B. Joyner Memorial Lecturer – the first person outside the US to win this accolade. This award is jointly sponsored by the Seismological Society of America and Earthquake Engineering Research Institute. Kelvin was also elected to the Governing Board of the Global Earthquake Model (see page 35).

Marine geophysicist Fabio Caratori Tontini won the 2012 Outstanding Reviewer award from the Society of Exploration Geophysicists for reviewing papers in the journal Geophysics.

Structural geologist Simon Cox and co-authors won the New Zealand Geophysics Prize for a paper on the hydrological effects of the M7.1 Darfield earthquake of 4 September 2010, published in a special issue of the New Zealand Journal of Geology and Geophysics.

Marine geologist Cornel de Ronde was awarded best paper for the years 2011 and 2012 by the Society for Geology Applied to Mineral Deposits for his paper “Submarine hydrothermal activity and gold-rich mineralisation at Brothers Volcano, Kermadec Arc, New Zealand” in the July 2011 issue of Mineralium Deposita.

Groundwater scientist Chris Daughney won the best overall presentation at the Australasian Environmental Isotopes Conference held in Perth, Australia in July 2012. His presentation was on groundwater age and transit time in the Lake Rotorua catchment.

The GeoNet team won the ‘Information’ category of the annual ANZIA awards for GeoNet Rapid in October 2012. GeoNet also won two trophies at the 2012 New Zealand Open Source Awards for use of open source software in government, and for use of open source software in science.

Our Natural Hazards Division won the 2012 Civil Defence and Emergency Management Gold award in recognition of our research and monitoring efforts across the perils of earthquakes, volcanoes, tsunami and landslides over the past decade.

Marine geophysicist Stuart Henrys was awarded the position of Visiting Professor at the Earthquake Research Institute, University of Tokyo, between August and December 2012.

Social scientist David Johnston was appointed Chair of the United Nations Office for Disaster Risk Reduction (UNISDR) Scientific and Technical Advisory Group, which provides practical and policy advice on disaster risk reduction internationally. David was also appointed Honorary Professor at University College London, and made a member of the International Expert Committee of the Institute of Remote Sensing and Digital Earth of the Chinese Academy of Sciences.

Volcanologist Gill Jolly was elected to the management board and scientific steering committee of the Global Volcano Model, an international body for co-ordinating research on volcanic hazard and risk. She is also on the steering committee for the Volcano Observatory Best Practices workshops.

Volcanologist and hazard modeller Graham Leonard was elected Editor in Chief, Springer Journal of Applied Volcanology, and elected Cities on Volcanoes Commission representative to the IAVCEI Volcanic Disasters liaison committee.

Emeritus geologist Simon Nathan was awarded Life Membership of the Geoscience Society of New Zealand.

Isotope scientist Karyne Rogers won an award from the National Beekeepers’ Association for significant contributions to the honey industry.

Seismic interpreter Tusar Sahoo, petroleum geologist Kyle Bland, and sedimentary geologist Dominic Strogen won the best technical poster award at the Advantage NZ Petroleum Conference in April 2013.

Geology technician Delia Strong won the Kingma Award from the Geoscience Society of New Zealand. This award is made annually to the earth science technician who has made the most notable contribution to the work of their organisation.

Wellington’s blue tsunami lines painted across streets in Island Bay won an award for public awareness from the International Association for Emergency Managers. The ‘blue line’ initiative jointly involved Wellington City Council, WREMO, MCDEM, GNS Science, and the Island Bay community.


SCIENCE AND SOCIETY

Science and Society

National Science ChallengesCommunicating our science to the public has always been a priority for GNS Science. The value we place on our public outreach work has been validated by the National Science Challenges Panel which, in a recent report (27 March 2013), identified Science and Society as a special Challenge to the leadership of New Zealand: “We see this Challenge as the most important and of the highest priority and implementation of this Challenge should be regarded as critical.”

The Panel highlighted a need for a greater appreciation and understanding of science. Essentially, for New Zealand to enjoy the opportunities presented by our investment in science and the excellent work done by our scientists – and for the other National Science Challenges to succeed – much work needs to be done in the areas of science education, science communication, science literacy, and the application of knowledge in public sector decision making.

We believe communication of our science to the public is of paramount importance. It is therefore gratifying that the March 2013 Report of the National Science Challenges Panel came to the same conclusion.

Our drivers are two-fold, first the recognition that a significant proportion of our work is publicly funded, and secondly the social responsibility requirement of the CRI Act 1992. Other drivers throughout the science sector can be pure altruism, creation of awareness among politicians and opinion leaders, funders and clients, recruitment, student enrolment, and corporate public relations. But, independently of drivers, the important issue is that the communication occurs.

We have chosen a portfolio of targeted channels for distributing our public messages over a range of time scales, and to specific audiences.

News mediaWe have prepared stories for the news media since our establishment in 1992. This channel is ideal for readers who are happy with editors’ selections.

A regular flow of our news stories in the media creates long-term public awareness and demonstrates that science is an indispensable part of modern living. Over the past year, we were mentioned in about 200 news items per month in New Zealand, and about 320 per month overseas. Items from our GeoNet geohazards monitoring service average about 120 per month but are highly variable, depending on levels of earthquake and volcanic activity.

InternetThe internet is the most accessible channel for people who look for information independently, in text, video, or social-media formats. Our main sites, and their performance statistics for the past year are:

• GNS Science website: unique users 341,610, with daily peak 11,647

• GeoNet website: unique users 4,482,380, with daily peak 170,687

• YouTube: 121,507 hits• Blog site: 56,821 hits.

Primary and secondary educational outreach For at least the last 10 years, schools have approached us regularly to visit and talk about science. Many of our

staff enjoy these opportunities and offer specially prepared presentations. Five years ago we addressed this demand in a more coordinated and curriculum-linked way by employing a professional teacher as our Educational Outreach Facilitator. Outcomes through the students are likely to accrue in the longer term, but are more immediate through engaged parents and teachers. Our achievements for these audiences include:

• school visits – over 20 per year, involving 800-1000 students

• field trips – about 15 per year, involving over 300 students

• hosting teacher fellows sponsored by the Royal Society – typically two per year

• the lesson-plans and other educational pages are the most visited on our website

• a two-week Geocamp, sponsored by Todd Foundation for two successive years, with about 20 students and eight teachers attending each

• hosting a First Foundation summer student for 4 years

• holding a Science Students Day for students and teachers invited from secondary schools in the Hutt Valley.


SCIENCE AND SOCIETY

MuseumsIn contrast to books, science stories based around objects are best told in museum settings. The audiences are self-selected, with a strong interest in science and often with a strong interest in their children’s intellectual development. Our best examples of using this medium are:

• Awesome Forces at Te Papa, co-sponsored by EQC: 750,000 visitors per year (11.7 million since 1998)

• Deep Ride at Te Papa – 50,000 passengers in its first year of operation

• Volcanoes at Auckland War Memorial Museum, sponsored by EQC

• Dead Precious: NZ Fossils travelling exhibition, sponsored by Shell Exploration NZ Limited: over 520,000 visitors

• Exhibitions at museums in Napier, Rotorua, Nelson, Palmerston North, and Riverton.

Café ScientifiqueCafé Scientifique audiences are typically adults with a very strong interest in science, and often about matters that are particularly topical. We have run these monthly events, with support from other agencies (Te Papa, Callaghan Innovation, Capital E, Wellington Branch of the Royal Society) in Wellington for over seven years, and in Lower Hutt for over five years. Audiences vary from 30 to 90 people monthly at each venue.

Guest speakingIn addition to the foregoing public channels, our staff also speak frequently at private forums such Rotary, Lions and Probus Clubs, and even as after-dinner speakers at conferences held by other professions.

Popular booksPublishing houses approach us regularly asking our staff to be authors. This channel offers us a more select audience, usually adults seeking more extensive, detailed information of longer-term interest than is found on websites. The effectiveness of this communication channel is amply demonstrated by the publishers’ interest in giving us repeated commissions. Recent examples are:

• In Search of Ancient New Zealand (Penguin 2007, 2011)

• Continent on the Move (GSNZ 2008)• The Kiwi Fossil Hunter’s Handbook

(Random House 2010) • Photographic Guide to Rocks and

Minerals (New Holland 2011)• Awesome Forces (Te Papa revised 2012)• Photographic Guide to Fossils

(New Holland 2013).


OUR PEOPLE

385 staff

46.6 yrs

11.8 yrs

KEY FIGURES

Staff (FTE 360)

average age

average length of service

Elements of being a good employer Action undertaken Impact/significance

Leadership, accountability and culture • Hosted the inaugural Women in Leadership event across CRIs, with more than 35 women leaders attending

• Continued to develop our leadership capability, with programmes targeted for emerging, new and existing leaders

• Second and third tier managers attended the Institute of Strategic Leadership programmes to develop leadership capability

• High-quality leadership shown by staff newly appointed to leadership roles

• Positive feedback from attendees and their managers

Recruitment, induction and selection • Extended advertising channels to attract the best candidates

• Renewed our Accredited Employer status with Immigration New Zealand

• Ran induction workshops to welcome new staff and students

• Received 3123 registrations for advertised vacancies

• 100% of new employee survey respondents stated they were satisfied or highly satisfied with their recruitment experience

• Staff turnover reduced to 6.5% (from 9.6% in the previous year)

Employee development, promotion and exit

• Continued workforce and succession planning frameworks

• Operated a performance management process that includes development for current and/or future roles

• Developed a specialist/support staff guide to help managers and staff better evaluate good and exceptional performance

• 90% of respondents to our staff survey state that they have regular catch-ups with their manager, are clear on their goals, and feel they are developing in their role

• Exit survey data support the foregoing feedback

Flexibility and work design • Encouraged a balance between personal and work commitments

• Supported staff in returning to work after periods of parental leave or ill health

• 8% of staff work part-time and several have agreed flexible hours

Of the company’s strategic issues, as identified in our Statement of Corporate Intent 2012–2015, two are focused on human resources. The first is the need for us to maintain and enhance capability and capacity, and the second to foster a vibrant research culture.

We address these by recruiting the best scientists we can from the global pool, and by recruiting pro-actively for succession before retirement.

The components set out below that define being a good employer are part of our business, and play a role in addressing these challenges.

Our People


OUR PEOPLE

Elements of being a good employer Action undertaken Impact/significance

Remuneration, recognition and conditions

• Conducted annual review of our remuneration bands against market data supplied by Hay Group and MHR Global (Cubiks Rewards)

• External measures included in individual remuneration increases

• Positive relationship with the PSA

Harassment and bullying prevention • Provided a culturally safe environment for all staff to be effective in their roles

• Code of professional practice developed that outlines our expectations for professional behaviour

• Reviewed and updated policies and procedures in collaboration with employees

• Survey feedback shows 95% of staff feel totally safe at work

Safe and healthy environment • Undertook a safety culture survey • Reviewed our health and safety

management system• Operated continuous review and

improvement of policies• The Board established a Health, Safety

and Environment Committee• Refreshed organisation-wide hazard

identification exercise • Provided health and safety induction

for all employees, visitors, contractors, students (online and face-to-face)

• Provided an annual health and safety workshop for managers

• Well-being initiatives included flu vaccinations, two-yearly eye examinations, and regular medicals for all field and laboratory staff

• Provided an active return-to-work programme

• Offered an Employee Assistance Programme (through Vitae)

• No lost time from injuries (1 day in previous year)

• Over 1 million hours worked since the last lost-time injury

• Produced an updated hazards register • An active programme that reduces

hazards on the basis of historical incidents and near-miss reports

• Awarded ‘Tertiary’ safety management status by ACC (subsequent to year end)

WHERE OUR APPLICANTS COME FROM (SELF-DECLARED)

South America 1.2%

North America 7.9%

Europe 15.0%

Asia 15.0%

Middle East 2.6%

Pacific Islands 0.1%

Africa 3.4%

New Zealand 51.4%

Australia 3.6%


Health and safety cultureAs an employer, we have invested in a comprehensive and systematic approach to health, safety and wellness. This has included seeking opportunities for significant improvement at Board and senior management levels, improving employee participation across all sites, and the collation of data to report and compare health and safety metrics (both lag and lead indicators) to provide reassurance that the system is performing to required levels.

During the year, ACC awarded us the highest level (Tertiary) in the Workplace Safety Management Programme.

An external health and safety organisation, Impac, undertook a safety culture survey in May 2013. It was pleasing to note that 95% of staff feel safe at work. The response rate of 81% provided a high degree of confidence in the survey results.

Health and safety initiativesTo date, close to 300 people have completed our e-learning module titled “Introduction to Health and Safety at GNS Science”. It was designed to ensure all staff, visitors, students and contractors are aware of our health and safety systems and processes. We selected an online hazard register and undertook an organisation-wide hazard identification exercise.

The Board established a Health, Safety and Environment Committee.

KEY FIGURES

37.7%

6.5%

8%

female staff

annual staff turnover

of staff are part time

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ENERGY AND MINERALS

Delivering economic benefits to New Zealand

Our activities in this area are designed to bring economic benefits to New Zealand by contributing to the security, development and diversification of New Zealand’s oil and gas, geothermal, and mineral resources.

Our petroleum geoscience research and technology transfer focuses on mapping, analysing and quantifying the factors that control how petroleum forms, migrates, and is trapped in sub-surface structures. This aids the discovery of new oil fields, and optimises the management of existing fields.

INTRODUCTION


REVENUE SOURCES TOTAL REVENUE – RESEARCH TYPE

TOTAL REVENUE – TIME FROM RESEARCH TO IMPACT

Total revenue: $20,492,070

Contestable Crown funding 5%

Technology transfer 48%

Direct Crown funding 47%

In geothermal energy, our scientific advice to industry on physical and chemical properties of prospective and producing fields increases levels of confidence in exploration by reducing the risks associated with drilling and production.

For the minerals industry, we identify the extent and grade of offshore and onshore mineral resources. For New Zealand’s marine territory, we work with national and international organisations to investigate the nature of the seafloor and sub-seafloor. The aim is to provide quality information so government agencies and other organisations can make informed decisions about the potential resources and conservation needs of the Exclusive Economic Zone and its Continental Shelf Extension.

Experimental development 1%

0-3 years 3-5 years 5-10 years 10+ years

Product development 4%

Applied 65%

Basic targeted

27%

Basic untargeted 3%

63% 23% 9% 5%

GNS Science Annual Report 2013 15Photo: Kupe Production Station, courtesy NZOG


RECENT INNOVATIONS

(2011) Developed Petroleum Basin Explorer information web portal for oil and gas industry

(2012) Completed Petroleum Exploration Geoscience Initiative for NZ Petroleum & Minerals of MBIE

(2011) Perfected borehole imaging technique to help improve production for the geothermal energy industry

(2012) Expanded the utility of micro-earthquake monitoring techniques for reservoir management

(2011) Improved understanding of massive sulphide deposits in Kermadec Arc to support prudent management of our EEZ

(2012) Interpreted airborne geophysical data of Northland and West Coast South Island to increase minerals industry knowledge

(2013) Provided geoscience input into feasibility studies to harvest rock phosphate from the Chatham Rise

NEW VALUE FROM GEOTHERMAL FLUIDS

We are exploring ways to gain commercial value from high-value materials extracted from geothermal fluids in New Zealand.

Our geothermal fluids offer a potential commercial opportunity for the recovery and sale of a range of materials, such as silica, precious metals, various minerals, and gases. Scientists estimate that each year many thousands of tonnes of metallic minerals are injected back into the ground near geothermal power stations.

Extracting products from geothermal fluids is technically feasible, however there is a need to clarify opportunities and barriers to the commercial recovery of products. To support the development of a geothermal mineral extraction industry, the project team will identify simple, cost-effective processing technologies, and provide a greater understanding of the economic viability, market drivers and regulatory barriers for implementing such technologies.

The goal is to create a new industry for New Zealand that has tangible economic, social, and environmental benefits. It will also result in world-leading capabilities in processing technologies, and improve the productivity and value of the geothermal energy industry. The project, developed in the past year, is part of a worldwide push to capture additional value from geothermal resources.

The project has received funding from the Ministry of Business, Innovation and Employment and is supported by geothermal production companies, regional councils, Ma-ori trusts, regional development groups, and other industries.

End-users will be involved in the programme by contributing their specialist expertise to the suite of studies. We will hold a stakeholder workshop to present and discuss findings of our project. We will also compile a report summarising the main points to address to successfully develop this into a commercial reality for New Zealand.

ENERGY AND MINERALS


IMPACTS ENVISIONED IN OUR STATEMENT OF CORPORATE INTENT

Theme Near-term goals Progress/achievement

Geothermal energy

Resource characterisation

Better understanding of the physical and chemical nature of fluids and flow pathways below existing drilling depths

Undertaken laboratory and field-based analyses/studies to identify fluid sources and mitigate against possible constraints that might detract from the use of deep geothermal reservoirs.

Establishment of a laboratory that simulates chemical changes at deep crustal temperatures

Built a custom-designed apparatus, unique in New Zealand, to simulate fluid-rock interactions at geothermal reservoir conditions, to understand thermal-chemical processes and development effects, and support future use of deep geothermal resources.

Promotion of the understanding and application of low-temperature geothermal resources

Achieved wider public awareness of low-temperature geothermal resource direct uses, promoted via workshops, seminars, outreach, technical presentations, and publications.

Sustainable development

Better knowledge of how subsidence affects surface features and ecosystems, and reinjection mitigation

Improved numerical modelling tools and geological insights to provide confidence in resource use and injection strategies. Ensures operators use appropriate field management practices to reduce, mitigate or remedy possible subsidence or change to surface ecosystem.

Assessment of productivity and sustainable development of geothermal resources in NZ

Played a significant role in geothermal electricity generation having doubled its output in the past decade. In 2013 about 15% of New Zealand’s electricity demand is supplied from sustainable geothermal developments. This puts NZ at number six in the world.

Physical and biological surface effects

Identification of top 20 candidate geothermal features for microbial diversity

Part-way through a two-year project to determine microbial diversity in geothermal springs in the Taupo Volcanic Zone.

Oil and gas

Petroleum systems Quantification of critical parameters that control petroleum formation, migration, and confinement with calibration to industry data and known accumulations in Taranaki

Developed the first of a series of structural models for known petroleum fields, the Kupe Model, to aid understanding of active petroleum systems in the Taranaki Basin. Compiled new geochemistry results on the source and maturity of oils and gas condensates from the Maui, Tui, Maari, and Manaia fields of offshore Taranaki Basin. This will help identify new prospects for drilling.

Frontier provinces Better understanding of the geology and petroleum prospectivity in the East Coast, Reinga, and Northland basins

New seismic mapping in Reinga/Northland basins has identified potential source and reservoir rocks, confirming that the Reinga Basin is prospective for petroleum exploration.

Emerging energy technologies

Determinaton of environmental and production parameters for east coast (North Island) gas hydrate reservoirs

Undertaken analysis of recently acquired marine survey data to better understand the size and distribution of gas hydrate deposits off the North Island’s east coast.

Provision of expert advice to government on CO

2 storage in sedimentary basinsProvided reports and analysis as part of ongoing research into the storage of liquid CO2 in NZ sedimentary basins.

Minerals

Onshore prospectivity Provision of new geochemical, aeromagnetic and radiometric information to government and industry

Promoted data and new research through industry magazine articles, conference presentations, and ongoing upgrade of minerals data, freely available on our website.

Submarine exploration Provision of new offshore geochemical information to government and industry

Published a special edition (11 papers) on the geology and geophysics of the Kermadec Arc in Economic Geology, the world’s leading science journal on this topic. Also maintained dialogue with NZ government agencies.

Exploration pathfinders

Determination of the geothermal potential of one lake in the Taupo Volcanic Zone

Discovered two active hydrothermal systems on the bottom of Lake Rotomahana near Rotorua.

Better access to mineral resources data by explorers, government agencies and the public

Promoted availability of data and use through minerals industry magazine articles and conference presentations, and ongoing upgrade of data in the minerals databases.


NEW MODELLING SOFTWARE A BOOST FOR GEOTHERMAL ENERGY

New computer modelling applications we are developing will result in a greater understanding of geothermal systems plus a range of flow-on effects. This includes increased efficiencies in geothermal energy production, reduced environmental impacts, and more sustainable use of geothermal resources. Our next-generation software will include a new flow simulator, geophysical and geochemical codes, and the linkages between them.

Existing geothermal modelling software has limitations in its practicality and its ability to resolve complex resource and scientific questions. For example, a focus in the geothermal industry worldwide is to explore for deeper and hotter resources, which have the potential to sharply increase the amount of energy produced from each well. However, there are scientific and engineering challenges in harvesting geothermal energy from depths beyond 3.5km, where temperatures can easily exceed 350 degrees Celsius.

In conjunction with The University of Auckland, we are designing the suite of open-source computer applications that will accommodate higher temperatures and pressures and geochemical regimes that do not exist at shallower depths.

The four-year project, funded by the Ministry of Business Innovation and Employment, will integrate geophysical, chemical and flow simulation modelling tools, to better understand heat transfer to and between geothermal systems, and to more reliably model production effects on geothermal fields.

Those supporting this development include New Zealand’s major geothermal operating companies, the Waikato and Bay of Plenty Regional Councils, and several iwi groups with geothermal interests. As part of the development, the New Zealand team will collaborate with numerical modelling specialists from the US and Switzerland.

Internationally there is strong interest for this new generation of modelling software, and offshore companies are likely to use it to improve the management of geothermal fields in many countries. This uptake would strengthen New Zealand’s reputation as an international leader in geothermal research and development.

The new modelling suite will add significant capabilities to existing software, and be more efficient and reliable. It will also help to reduce field development risk for geothermal energy developers. Finally, it will integrate seamlessly with existing geothermal research in New Zealand, and will increase knowledge of the structure, hydrology and hydrothermal processes that control geothermal systems.

ENERGY AND MINERALS


FINDING OIL AND GAS TO POWER NEW ZEALAND

New Zealand is about to experience the busiest offshore oil and gas exploration period in its history, with three international vessels set to drill more than 10 exploration and development wells over the next 18 months. Getting to this point has taken decades of research, technological developments, data acquisition, approvals, and venture capital.

A discovery of a major new oil or gas field would bring considerable economic benefits to New Zealand, including increased exports of our high quality crude oil and sustained domestic supply of natural gas for electricity generation and methanol production. At peak production, the Tui Area Oil Fields located off the Taranaki coast accounted for 3% of New Zealand’s Gross Domestic Product. However, with vast tracts of ocean to assess, hitting ‘pay dirt’ is akin to finding the proverbial needle in a haystack. On the East Coast alone there are more than 100 oil and gas seeps at the surface, but explorers have yet to find a large sub-surface reservoir.

Our petroleum geochemistry team has worked extensively with companies exploring and developing New Zealand’s oil and gas prospects, using source rock and petroleum analyses to help find the best locations to drill.

Knowing the type of petroleum source rock, and the pathways the oil and gas take through the rock strata, is crucial for prospectors. Petroleum sourced off the Taranaki coast is from coal, whereas on the East Coast petroleum comes from marine source rocks. Taranaki source rocks produce a variety of petroleum fluid types including oil, gas, and gas condensate.

The oil comes mainly from the leaf material of fossil gymnosperm and angiosperm trees that formed the coals. Coals rich in leaf material can generate oil, whereas those that lack leaf material tend to produce gas and gas condensate. In contrast, marine source rocks contain organic matter largely from marine micro-organisms.

The age, type, depth, and temperature of the source rock are among the factors determining the quality and quantity of oil and gas that fill sub-surface reservoirs or, if not trapped, produce surface seeps.

Each oil or gas sample has a distinctive ‘geochemical fingerprint’. Over the past decade we have built an extensive oil and gas condensate library, which enables us to interpret the different rock sources. It also helps to identify the sub-surface pathways along which petroleum migrates to reservoirs.

Our petroleum geochemists and geologists will be assisting the oil companies over the busy exploration period ahead, helping them to better understand the source rocks and any petroleum fluid samples they find.

Samples taken from each well will eventually be added to our petroleum source rock and fluid sample libraries, building on existing knowledge, and assisting future prospectors in their discovery of the elusive oil.

“OMV NZ has relied on and benefitted from the petroleum geochemistry research led by Richard Sykes at GNS Science. Our exploration strategy has become more focussed as we have followed GNS’s geochemical fingerprinting and oil-source correlation studies over the past several years. The recognition that high quality black oils in Taranaki Basin are derived dominantly from leaf cuticle components in coaly source rocks, combined with palaeoenvironmental mapping and maturity modelling that identifies the optimum locations for present-day oil expulsion from these source rocks, enables a significantly improved identification of exploration risk and potential reward.”

Neville Smith Senior Exploration Geologist, Taranaki Team Leader OMV New Zealand Ltd

15%10+

KEY FACTS

of New Zealand’s electricity demand is supplied from sustainable geothermal development

wells for exploring offshore oil and gas potential will be drilled over next 18 months

GROUNDWATER

Improving long-term security of our water resources

Groundwater accounts for roughly 30% of New Zealand’s consumptive water use. There is wide agreement that improved management of groundwater stems directly from a better understanding of the resource itself. Our research and analytical capabilities are designed to significantly improve the understanding of aquifer systems and help in the effective management of groundwater resources. We use innovative methods to monitor, characterise and map New Zealand’s aquifers. End-users rely on our aquifer maps and 3D models to ensure sound management of fresh water.

INTRODUCTION


REVENUE SOURCES


Contestable Crown funding 38%



GNS Science Annual Report 2013 21Photo: Birchville dam, Upper Hutt, Margaret Low


GROUNDWATER

BEST-IN-WORLD GETS BETTER

Our water dating laboratory, already the most precise in the world, improved the sensitivity of its tests this year and doubled its throughput at the same time. Since 2004, this laboratory has been recognised as delivering the highest sensitivity measurements in the world for dating groundwater. It does this by measuring the concentration of tritium – a very rare but detectable radioactive isotope of hydrogen – in water samples.

Tritium is naturally present in the environment and decays at a known rate to normal hydrogen. Because the proportion of tritium present in a water sample decreases as the water ages, the amount left can be used to date the water.

Measuring tritium concentration is the best method for establishing the age of groundwater. This enables scientists to accurately trace the rate at which rainwater moves through the sub-surface and into streams, lakes, and wells. This enables accurate mapping of aquifers and can reveal how land-use practices are influencing the quality of water.

Because natural tritium occurs in miniscule amounts, very sensitive equipment and techniques are needed to detect it. Our lab can detect tritium proportions as low as two per 100 quintillion molecules of water – two in 100,000,000,000,000,000,000.

A major advantage we have over Northern Hemisphere labs is that there are remnants of tritium in the environment from nuclear testing in the Northern Hemisphere in the 1950s and ‘60s. Even tiny levels of ‘bomb tritium’ can affect the accuracy of this dating method. Our geographical isolation from these artificial sources, as well as exceptional attention to detail, means we can detect natural tritium in smaller amounts than Northern Hemisphere labs.

This year our lab commissioned new electrolysis equipment, designed and built at our Lower Hutt workshops, which has led to a doubling in the lab’s capacity for tritium testing, while also improving measurement sensitivity.

The lab’s work is split 50:50 between New Zealand and overseas research and water-management clients. New Zealand drinking water providers use it to determine the age of groundwater. Drinking water must be underground for one year or more to kill contaminants like E. coli and protozoa. If it resides underground for less than one year, then expensive water treatment plants are needed.

Geothermal power plant operators around the world also use the lab to ensure cold, used water is not re-entering the hot water source.


RECENT INNOVATIONS

Theme Near-term goal Progress/achievement

Groundwater quantity and quality

Improved operation of the National Groundwater Monitoring Programme and the Water Dating Laboratory

Doubled throughput of tritium samples in the Water Dating Lab and increased precision by 30%. Validated the NGMP well sampling regime. Used groundwater age data from 110 sites nationwide to identify the impact of land-use on water quality.

(2011) Identified sources of nitrate in groundwater to help with aquifer management

(2011) Developed a technique to asses seawater intrusion into freshwater aquifers

(2012) Improved Regional Council access to the Geothermal-Groundwater National Database

(2013) Developed smartphone access to aquifer and geology databases in Bay of Plenty

(2013) Developed a modelling tool to better understand surface water-groundwater interactions in the Lake Taupo catchment


NEW GUIDELINES FOR MANAGING GROUNDWATER

Managing aquifers effectively requires sound understanding of capture zones – the area of land that feeds into the aquifer – as well as the way land-use can affect water quality.

There has been no standardised and robust approach to delineate capture zones in New Zealand. So this year we produced a set of guidelines for councils on protecting water features, such as wells, streams and wetlands, that receive inflow from groundwater. Currently in draft form, the guidelines are designed to support the national environmental standard for human drinking water, implemented in 2008. The national guideline requires councils to know if a proposed land activity will lie within the capture zone of a drinking water supply source.

Our guidelines provide a uniform and defensible approach for determining the size and geometry of the groundwater contributing area for a water feature. They are an essential management tool for long-term protection of the quality and quantity of New Zealand’s freshwater resources.

To develop the guidelines, we reviewed techniques for measuring capture zones from several countries, and identified seven methods suited to New Zealand conditions. We then trialled these methods in different geological settings to ensure they are appropriate for New Zealand. A draft version of our guidelines has been circulated to several councils for comment and the feedback from users has helped refine the product substantially.

Our guidelines lead the users through a stepwise process of deciding which of the seven methods are appropriate for their needs. Capture zones that surround a water body do not necessarily follow a simple rule. They vary greatly in size and shape depending on hydrogeology and terrain.

Some councils are already applying the methodology to wells and are looking to extend it to springs. They report that it helps significantly in understanding groundwater flow paths. More particularly, the methods described in the guideline provide clarity in identifying where contamination might be coming from.

30%

50:50

36%

1+

KEY FACTS

increase in precision in tritium sample testing in our Water Dating Laboratory

split between New Zealand and international clients for the laboratory

of our revenue in the groundwater science area comes from technology transfer

years – the time drinking water must be underground to not require expensive water treatment

TOTAL REVENUE – RESEARCH TYPE


0-3 years 3-5 years 5-10 years

Applied 75%

Basic targeted

21%

Basic untargeted 4%

72% 23% 5%


ISOTOPES AND ION-BEAM TECHNOLOGY

Benefiting industry and protecting our environment

Our isotope and ion-beam technologies support the earth sciences in the broadest sense, as well as industries and environmental sciences. We use our ion-beam technology to analyse fine-particle air pollution in urban areas so councils can make informed policy and mitigate poor air quality. We also use this technology to develop materials with superior physical, electrical, magnetic, and optical properties by depositing other elements, atom-by-atom, onto the surface of the base material, usually a metal. This supports high-value manufacturing industries and the development of specialised nano-materials for industry.

INTRODUCTION

REVENUE SOURCES



Direct Crown funding

31%

Contestable funding 13%

GNS Science Annual Report 2013 25Photo: Margaret Low

Benefiting industry and protecting our environment



RECENT INNOVATIONS (2011) Developed low-cost gas sensors for the security and customs industries

(2011) Fabricated nanomaterial for measuring magnetic fields

(2012) Developed an ion-beam method for anti-corrosion preparation and coating of metallic components in industry

(2012) Installed and operated air-sampling technology for hourly identification of sources of air-particulate pollution

(2013) Used isotope science to develop new test criteria for manuka honey to help re-open overseas markets

(2013) Developed an ion-beam-based instrument to treat metal surfaces prior to specialist industrial coatings



Air particulate pollution

Develop a high-resolution air particulate model that explains concentrations, sources, and transport pathways

For several centres, we have shown the complex interaction between weather and air pollution events and revealed that most of the pollution is due to domestic fires, which are also the main source of arsenic from burning CCA-treated timber.

New materials Development, with industry, of a magnetic field sensor (MFS) using ion-beam implantation technology

Developed a prototype MFS for measuring the condition of emergency electricity supplies. Working with industry partner to assess commercial applications.

40,000

1600

6

$120m

KEY FACTS

air samples analysed for pollutants since 1998

honey samples tested over the past year

urban centres show high atmospheric concentrations of arsenic as a result of burning CCA-treated timber

the annual value of New Zealand’s honey exports






Applied 53%

Basic targeted

18%

Basic untargeted 2%

77% 19% 4%


BRINGING HIGH-END INDUSTRIAL TECHNIQUES WITHIN REACH OF NEW ZEALAND COMPANIES

Our ion-beam technology group customises high-value manufacturing technologies so they are within reach of the New Zealand manufacturing sector. This year, with help from our industry partner Page Macrae Engineering, we scaled a metal surface treatment technique so it could be readily used in New Zealand industries, opening up new possibilities for them.

In overseas settings, these techniques are available only to very large companies with deep pockets. This portfolio of techniques, which includes ion implantation and diamond-like carbon coatings, enables manufacturers to change the properties of metal and metal surfaces to give improved lifetime performance and greater utility.

At the heart of the procedure is a technique known as Ion-Beam Technology in which charged atoms are implanted into a range of materials, mostly metals, for surface finishing. It can produce properties such as ultra-smoothness, improved electrical conductivity, greater corrosion resistance, or super hardness.

Potential applications include industries such as medicine, agriculture, manufacturing, energy production, transport, and construction. A major advantage over conventional surface treatments is that the ion-beam process results in a coating that is only a few tens of atoms thick and it combines chemically and physically with the metal component being treated.

Another benefit is that the surface won’t delaminate, and the procedure takes place at low temperature, which eliminates the problem of warping that can play havoc with precision components. We are working with universities and industry partners to deliver this cost-effective technology to small-scale manufacturers in New Zealand.

Our technology does everything that expensive overseas equivalents do, and at a fraction of the cost. Prototypes operating with our industry partners show that these technologies will add value to New Zealand products and open up new international markets.


BURNING OUR WOOD IS BURNING OUR HEALTH

Our monitoring of air quality has found that atmospheric concentrations of arsenic, a known carcinogen, are above national and international guidelines in a number of New Zealand urban centres. The highest average concentrations detected so far have been at Wainuiomata, Hastings, and in Auckland at Henderson. Other centres showing elevated levels are Nelson, Masterton, and other Auckland locations.

We have been able to show that burning of copper-chrome-arsenic (CCA) treated timber in domestic fires is the cause of this contamination. Authorities were aware that arsenic was problematic, but our monitoring and analysis has shown it is more widespread than previously thought. In some cases, atmospheric concentrations have reached twice the upper ambient air quality guideline. High arsenic levels can cause acute or chronic illness in sections of the population.

Much of New Zealand’s structural timber is treated with CCA, although there is no requirement to label it as such. New Zealand has the world’s highest per-capita use of CCA-treated timber. Other countries restrict its use.

Based on our findings, Regional Councils have started public awareness campaigns on the dangers of burning CCA-treated timber in domestic fires. Our work in this area, which started about a decade ago, is based on our capability in ion- beam technology. This enables us to measure the elemental composition of air particulates and identify sources of local, regional and trans-boundary particulate matter pollution.

The data were gathered from air quality monitoring stations in urban centres that collect tiny airborne particles for analysis. Particles that are 10 microns in diameter or smaller are seen as a health hazard as they can get past the body’s defences and cause multiple health issues when they settle in the lungs. Larger particles readily settle out of the air and are less of a threat.

Researchers at our National Isotope Centre in Lower Hutt analyse the particles collected at the monitoring stations by passing a beam of atomic ions through them. This measures the elements present in the samples and enables scientists to deduce their likely source.

Typical sources are motor vehicle emissions, wood fires used for home-heating, sea salt, wind-blown soil, and road dust mixed with metals from brake abrasion and other mechanical wear. Winter arsenic levels, the product of burning wood, were conspicuous in most urban centres.

Since 1998 we have analysed about 40,000 air samples from monitoring stations around New Zealand. The measurements have even picked up atmospheric pollutants from dust storms and summer bushfires in Australia. By combining our figures with weather data, we have been able to show hour-by-hour changes in air pollution across some centres. A crucial feature of this multi-year project is that it will show long-term trends, particularly the impact of education and enforcement programmes designed to reduce air pollution.



SUPPORTING THE HONEY INDUSTRY WITH ISOTOPE SCIENCE

The honey industry is another of a growing list of New Zealand industries to benefit from isotope applications. Our Stable Isotope Laboratory has been supporting an increasing number of New Zealand honey producers with sugar contamination tests which are a pre-requisite for honey exports. Isotope scientist Karyne Rogers has solved the mystery as to why a worrying number of manuka honey export consignments have been failing overseas border tests. She has also developed new testing criteria that accommodate the unique properties of manuka honey.

New Zealand honey exports are worth about $120 million-a-year, with manuka honey accounting for about 70 percent. A rise in honey fraud overseas in recent years has resulted in border authorities stepping up their testing. A consequence of this has been a sharp increase in the number of New Zealand’s manuka honey consignments apparently failing authentication tests.

The international standard test for sugar contamination focuses on the cane sugar level of honey, with 7% by volume being the upper threshold. Higher cane sugar levels result in a failure, with the product denied entry. Failures can be high profile events that damage New Zealand’s reputation as an exporter of high-quality foods.

Exhaustive investigations in our own laboratory, and in conjunction with overseas testing laboratories, found that the internationally accepted authentication test for sugar contamination was not accounting for manuka honey’s unique chemical properties. Over time, the ‘apparent’ cane sugar level of high-quality manuka honey rises due to its natural biochemical activity. This was not understood prior to our involvement. We found that even though the New Zealand honey was genuine, it was giving false-positive test results.

In conjunction with New Zealand and overseas partners, we have developed a new authentication test where manuka’s carbon isotope value is now the main indicator of sugar contamination. About $60 million of high bioactive export manuka honey has been affected due to the problematic testing regime. It has also resulted in a sharp increase in the number of New Zealand honey samples being sent to us for isotope testing to verify authenticity. Numbers have grown from around 100 samples in 2010 to over 1600 in the year to September 2013.

In addition to uncovering the testing flaws, we work with beekeepers and other researchers to help optimise bee nutrition by evaluating forage sources to minimise the need for extra sugar and protein feeding. The aim is to keep bees in top health and resistant to disease. This greatly increases the chances of consistently high-quality honey, season after season.

The honey industry directly and indirectly contributes about $5 billion to the New Zealand economy each year. Our contribution is aimed at keeping the industry buzzing.

NATURAL HAZARDS

Reducing risk to lives and property

Our research and applied work in this area assesses and helps to reduce New Zealand’s risks from earthquakes, volcanoes, landslides, and tsunami. The outcomes of our work are increased resilience of society, buildings and infrastructure. This reduces loss of life as well as moderating insurance costs through better engineering and planning. In partnership with the Earthquake Commission and supported by Land Information New Zealand, we operate GeoNet – the national network for monitoring all our geological hazards. Data from this network provide underpinning information for downstream geohazards research. We also host the Natural Hazards Research Platform – the multi-agency group that delivers most of New Zealand government-funded applied hazards research. Finally, we undertake social science research to support Civil Defence and other agencies, and to assist communities to prepare for, and respond to, natural hazards.

INTRODUCTION

REVENUE SOURCES


GeoNet 26%


Contestable funding 21%


27%







Applied 69%

Basic targeted

14%

Basic untargeted 1%

83% 12% 5%

GNS Science Annual Report 2013 31Photo: Eroded ash deposits on White Island, Lloyd Homer


NATURAL HAZARDS

RECENT INNOVATIONS (2011) Imaged subduction interface (potential source of mega-earthquakes) about 25km beneath Wellington

(2011-2012) Science input to emergency response and recovery in the wake of the Canterbury earthquake sequence

(2011-2012) Developed robust method for calculating aftershock probabilities to inform the public and policy-makers

(2011-2012) Combined use of GPS and synthetic aperture radar data to determine regional deformation and subsidence throughout greater Christchurch

(2011-2012) Developed “social recovery” indicators in the wake of natural disasters

(2011-2012) Developed best-practice tsunami inundation models, and evacuation plans and routes

(2012) Advised on tsunami mitigation techniques for Samoa and other South Pacific nations

(2012) Engaged in Disaster Risk Management capability-building in Indonesia

(2012) Developed and successfully commissioned the GeoNet Rapid system for fully automated sub-two-minute analysis and reporting of earthquake locations and magnitudes

(2012-2013) Organised, with the Wellington City Council, a series of 20 public briefings in the Wellington region to inform the public about earthquake risk

(2013) Modelled the impact of a large earthquake on bulk water supplies in Wellington to help improve the resilience of water delivery infrastructure

(2013) Developed a decision support tool to help councils implement a risk-based approach to land-use planning



Hazard monitoring Faster real-time coverage of monitoring technologies in the mid-upper South Island

Installed 15 new seismic instruments in Canterbury and a further five will go live in late 2013. This will improve the quality of seismic data from Canterbury. Also identified suitable locations for three new seismic stations and four GPS stations in the upper South Island.

Geological hazards Improved speed of earthquake location and provision of more detailed derivative information

Successfully introduced GeoNet Rapid, which provides quake details to the public within a minute of a quake occurring.

Better physical understanding of volcanoes, earthquakes, landslides and tsunami, with a focus on seismicity in Canterbury

Capture of large volumes of high-quality geophysical data has enabled substantial improvements to the understanding of these perils.

Risk and society Availability of more comprehensive asset data leading to wider uptake of the RiskScape multi-hazard tool by local authorities

Incorporated the NZ building dataset into RiskScape, which has been trialled by 11 local authorities in the past 12 months, as well as five universities and dozens of representatives from other agencies.

Continued support of Christchurch recovery through social science on psychosocial recovery, community resilience, public policy and land-use planning

Continue to work with CERA and other agencies providing advice and research to help formulate policy and build community resilience in Canterbury.

20 600 20KEY FACTS

public briefings on earthquake risk delivered in the Wellington region

geohazard monitoring stations throughout New Zealand

countries contributing to the largest earthquake database ever built


NEW TSUNAMI REPORT A SOUND BASIS FOR MITIGATION MEASURES

Recent tsunami research has presented New Zealand with a mixed bag of news. Parts of our coast are exposed to greater tsunami hazard than previously thought, while the hazard in other coastal regions is the same or less. The findings come from a new GNS Science report commissioned by the Ministry for Civil Defence and Emergency Management. It updates a report on New Zealand’s tsunami hazards that we compiled in 2005.

This year’s report incorporates new research and significant changes in scientific understanding since our 2005 report. It focuses on the entire New Zealand coastline rather than just the main population centres. It also uses more advanced modelling to quantify the tsunami hazard. Areas where the hazard is higher are the North Island’s east-facing coasts and the southwest of the South Island. In other coastal regions, the tsunami hazard estimate remains about the same or has even decreased.

Our recent research and modelling has shown the hazard from near-source tsunamis with small travel time is higher than previously estimated. This is particularly the case for tsunami generated by undersea earthquakes off the North Island’s east coast.

The 220-page report summarises the historical and geological record of tsunami in New Zealand. It notes that New Zealand

has experienced about 10 tsunami of 5m or more since 1840. Focussing on the historical record of dangerous local and regional tsunami – those that take less than three hours to reach here – suggests that these nearby events may occur in New Zealand about every 40 to 50 years on average. So it is likely that at least one will occur in the lifetime of most New Zealanders.

The report is in some respects unique because of the approach it takes and the level of sophistication in the modelling it uses. It focuses on tsunami hazard – the likely size and frequency of tsunami for given time periods. It does not provide estimates of damage, cost, and casualties. It concludes that over a 2500-year period, earthquake-generated tsunami are the major hazard, ahead of tsunami generated by seafloor landslides or volcanic activity.

Lessons learned from the 2011 Tohoku tsunami in Japan were an important ingredient in the report. The magnitude 9.0 undersea megathrust Tohoku earthquake was substantially larger than scientists had expected at this location. Another observation was that the rupture between the two tectonic plates at Tohoku was very non-uniform. In some places, the plates moved 50m horizontally and in other places it was as little as 5m.

This has implications for the size of tsunami, as the movement between the plates affects the motion of the seabed. Similar variabilities are likely to occur during ruptures of New Zealand’s nearby subduction zones and other faults. There is a possibility this variability could occur if the Hikurangi subduction zone ruptures off the North Island’s east coast. Our report incorporates this phenomenon, the first time this has been tackled at a national level.


SAND-BAGGING SPEEDS UP RESEARCH ON VOLCANOES

Finding out more about the way our active volcanoes work sometimes requires innovative techniques. In the past year, we trialled a new technique of using a helicopter to drop heavy sandbags on two North Island volcanoes to get a better idea of their internal structure. We see this as a safe and inexpensive way to learn about how seismic waves travel inside volcanoes.

At present it can be a challenge to get accurate locations for volcanic earthquakes, especially in relation to surface features such as freshly erupted vents. The impact of the sandbag puts a pulse of seismic energy into the ground in places that are too dangerous for humans. Each time a sandbag is dropped, a string of seismic instruments elsewhere on the surface of the volcano measures the way the impact energy travels inside the volcano.

The speed at which the energy waves travel, as well as the way they attenuate, as recorded by the instruments, reveals a telling picture of the volcano’s structure down to several hundred metres. In this way we learn about sub-surface structures and their correlation with surface processes such as eruptions and debris avalanches. This enables volcanologists to get more accurate estimates of the location and size of volcanic earthquakes that can be a sign of impending volcanic activity.

We made several drops at both White Island and Mount Tongariro as part of this trial. At White Island, we dropped the 700kg sandbags from heights ranging from 310m to 380m, making it possible to determine the kinetic energy of each impact. At Tongariro, we dropped heavier weights – about 1000kg – from a height of about 1000m, to ensure that the energy waves were recorded by a wider instrument network than at White Island

The technique can be used to find out about the energy release of volcanic eruptions themselves. This is because the energy from a drop near an eruption vent can be used as a known energy input. By scaling this up to the size of a seismically recorded volcanic eruption, we are better able to accurately measure the true energy release of an eruption. The technique also provides better understanding of other rapid surface phenomena such as debris avalanches. The end result will be improved hazard advice about potential short and medium-term eruptive behaviour.

NATURAL HAZARDS


CONTRIBUTING TO GLOBAL EARTHQUAKE RESEARCH INITIATIVES

We are a key contributor to the largest earthquake database ever built – a global public-private initiative involving 20 countries and a similar number of companies, mostly from the insurance sector. The impetus for this initiative has partly come from catastrophic earthquakes worldwide in the past decade.

These earthquakes have highlighted the need for the global science community to work together to improve the understanding of earthquakes and their future impacts. This has given rise to the Global Earthquake Model (GEM), aimed at developing a unified global standard for assessing and mitigating earthquake hazards.

GEM, which officially got underway in 2009, involves more than 250 leading international specialists who pool their data, knowledge and expertise to increase awareness and resilience. Reliable risk assessment tools and data are out of reach for many countries. The GEM forum leverages the knowledge of experts for the benefit of the global community.

At the heart of their efforts is a web-based software platform called OpenQuake, due to be unveiled in late 2014. This open-source software is seen as the world’s most advanced tool in this area and will set a uniform standard for seismic hazard and risk calculations. It will be able to calculate seismic risk on an equal basis anywhere in the world. It is designed to work at various scales from global to local, and can be used on a laptop, in the cloud, or on a computer cluster. We expect to receive a ‘beta version’ of this software by early 2014 to test in a New Zealand setting.

In addition, GEM is investigating better ways to calculate seismic hazard – the probability that earthquakes will occur over a given time period – and seismic risk – deaths, injuries and economic losses. Using modern technology, members have recalculated global seismic activity using the record of 20,000 larger global earthquakes over the past 110 years. Other groups within GEM have used data from 70,000 GPS stations around the world to reassess and standardise deformation rates at tectonic plate boundaries.

GEM also has an ambitious project to assess the quality of building stocks worldwide using information from censuses, national datasets, and satellite imagery. This will result in globally consistent criteria for assessing building fragility. The aim is to reduce death and injury by identifying areas where potential poor performance of the built environment needs to be mitigated.

Tectonic geologist Kelvin Berryman, of GNS Science, is a member of the GEM Governing Board and co-ordinates the Southeast Asia regional group together with colleagues from New Zealand, Australia, and Singapore. We were the lead investigator in a three-year project to build a global active faults database. Our scientists have also contributed to global ground-motion prediction equations, which involve the relationship between magnitude, distance, level of ground-shaking, and building inventory databases.

As well as being a good global citizen, we participate in GEM to ensure New Zealand has access to world-class software that we have helped to develop. It also affords us the opportunity to strengthen relationships with the international earthquake science community, and with the big players in the global insurance industry. All of this helps to ensure that New Zealand stays at the forefront of earthquake science and risk management.

Graphic showing global seismicity (red and blue

circles) larger than magnitude 6 for the period 1900-2012.

Yellow triangles indicate active volcanoes. Courtesy US

Geological Survey.


Safeguarding buildings and infrastructure

One of the silver linings of the Canterbury earthquake sequence is the large amount of new knowledge we have gained from investigating slope stability, liquefaction, and the impact of ground conditions on building performance. All of this is applicable to other parts of New Zealand. We also continue with our traditional work that underpins the development and sound management of New Zealand’s engineered infrastructure, particularly in the energy and transport sectors. This includes power generation and transmission facilities, water and gas networks, housing, mines, and road and rail networks.

INTRODUCTION

REVENUE SOURCES


15%


Note: The revenue figure for geotechnical engineering is included in the figure provided for natural hazards on page 30.


GNS Science Annual Report 2013 37Photo: Manawatu Gorge, Garth Archibald



RECENT INNOVATIONS (2011) Developed the Spatial Autocorrelation Coefficient (SPAC) technique to inform engineering requirements on individual building sites

(2011-2013) Conducted world-class slope stability and rock fall risk assessments on the Port Hills to help with zoning and rebuilding of Christchurch



Resilient buildings and infrastructure

Assessment of responses of engineered structures to different ground conditions, based on Canterbury earthquake data

Analysed Christchurch seismic and geotechnical data to assess how ground-shaking and ground conditions affected building performance

LIQUEFACTION RISK LOW IN TARANAKI

Given their close proximity to an active volcano, although presently in a state of quiescence, and experience of seismic activity, Taranaki’s residents are familiar with geological hazards. Until recently, however, the region did not have definitive knowledge of its susceptibility to liquefaction.

In May 2012 South Taranaki, Stratford and New Plymouth district councils, Taranaki Regional Council, Powerco and Transpower jointly funded our geotechnical engineering team to identify the potential for liquefaction and related ground damage in the region.

By studying borehole data provided by the councils and geological and earthquake information we hold in our files, we were able to ascertain that potential liquefaction hazards are limited to fewer than 20 sites in Taranaki.

In contrast to Canterbury and Hawke’s Bay, which suffered severe liquefaction in the 2010 and 2011, and 1931 earthquakes respectively, Taranaki’s geology is dominated by mudstones, volcanic lava, and lahar flow deposits that are not liquefiable.

The area in Taranaki found to be most susceptible to liquefaction was the reclaimed land of Port Taranaki. The next most susceptible areas were the lower reaches of local rivers and their tributaries. Our research concluded it would take an earthquake that produced Modified Mercalli shaking intensity of 8 or higher at these sites to cause liquefaction. Such damage would be minor in comparison to the liquefaction experienced in Canterbury and Hawke’s Bay. Our research tells us that earthquake shaking of this intensity occurs only once every 980 to 1070 years in the river areas of Taranaki.

New Plymouth District Council has since commissioned cone penetrometer tests at five river-mouth areas to test the soil type in locations that have growing residential populations – Waitara, Onaero, Urenui, Tongaporutu and Mohakatino. This will provide further details about the locations’ susceptibility to liquefaction, and may guide land use in the area. We have been contracted to peer review this study.


PORT HILLS LANDSLIDE RESEARCH INFORMS BUILDING POLICY

Our Engineering Geology team has set an international benchmark with their work on assessing risk from earthquake-induced landslides, which is being used in land-use zoning.

Over the past two years, the team has worked closely with Christchurch City Council and the Canterbury Earthquake Recovery Authority (CERA) to assess the devastating impact from cliff collapses and rolling boulders released in the Port Hills area of Christchurch during the magnitude 6.3 earthquake on 21 February 2011, and during its thousands of aftershocks.

Our team was onsite within a day of the earthquake and joined with other geotechnical specialists providing Christchurch City Council with assessments of the ongoing dangers to life from further landslides. In a massive undertaking, the combined team went on to study the sizes, locations and distribution of the more than 5700 boulders that entered residential areas on the Port Hills.

Using specialised mapping and GPS, they forecast areas at risk from further boulder movement. The predictions were verified during subsequent earthquakes in 2012 and early 2013. In addition, their research has provided essential information about slope instability to guide risk reduction around the dangerous clifftop areas of the Port Hills.

This research has been published in a series of detailed technical reports on the Christchurch City Council website, supported by public-friendly summary brochures, and public

meetings. Existing and prospective landowners on the Port Hills have also been given a first-hand look at the research in a short video featuring GNS Science engineering geologist Chris Massey. The film has been a popular educational tool, with almost 10,000 views on YouTube.

As part of the Port Hills study, we created a geohazard risk assessment methodology, which has been used to inform zoning decisions by CERA and the Christchurch City Council during the recovery and rebuild.

While the region has experienced fewer earthquakes in 2013, some slopes are still moving, and are vulnerable to other landslide hazards triggered during rain storms. We are continuing our study to provide ongoing guidance on areas that could be problematic. This includes expert advice to the Council and the Ministry of Business, Innovation and Employment.

The findings of our Port Hills research have significant implications for other cities. Dr Massey is leading another project, funded by the Natural Hazards Research Platform, that explores the risk of building on slopes in Wellington. An outcome of the research will be a ‘slope guide’ incorporating information about slope height, angle, underlying geological material, and how the slope is expected to ‘perform’ during a strong earthquake. Ultimately, this research will help with decisions on safer development and uses of hillside sites.

Our engineering geology research has gained international recognition, resulting in a number of collaborative projects both here and overseas.

Using our knowledge of the past to plan for the future

Our research increases the understanding of the geology and past climates of New Zealand, the Ross Dependency and Antarctica. We provide region-wide geological, geochemical, and geophysical information to improve knowledge of the dynamic processes occurring at and adjacent to the tectonic plate boundary. As well as on-land mapping, we work to understand the geological makeup of our EEZ and the Extended Continental Shelf. This region represents 96% of our territory, but remains poorly explored. Finally, our activities in Antarctica help to guide government policy development in climate change and environmental issues.

INTRODUCTION


REVENUE SOURCES



Contestable Crown funding

28%






0-3 years 3-5 years 5-10 years 10+ years


Applied 39%

Basic targeted

36%

Basic untargeted 10%

64% 25% 8% 3%

GNS Science Annual Report 2013 41Photo: Mt Messenger, Taranaki coast, Peter King



RECENT INNOVATIONS (2011) Initiated multi-year, multi-national Alpine Fault scientific drilling programme

(2011) Discovered independence of southern and northern hemisphere climate variation from South Island glacial record

(2011) Rediscovered the Pink and White Terraces (“eighth wonder of the world”) beneath Lake Rotomahana

(2012) Completed quarter-million scale digital geological map of New Zealand

(2013) Made the ‘seamless’ quarter-million scale digital geological map of New Zealand available on the web

(2012-2013) Collected and analysed 760m of ice core from the Ross Ice Shelf to start building an annual record of Antarctica’s climate history for the past 30,000 years

(2012-2013) Completed 3D geological map of the Christchurch sub-surface to help with infrastructure development and groundwater management

INSIGHTS INTO ANTARCTIC CLIMATE PATTERNS

Knowing that the West Antarctic ice sheet has melted in the past, we are leading a nine-nation project to see how quickly it could melt if the Earth gets as warm as some models are predicting. West Antarctica holds the equivalent of 6m to 7m of global sea level rise, so its partial or total collapse would have a major impact on the world’s population.

Knowing how much freshwater West Antarctica might release into the world’s oceans, and how quickly, will help governments to mitigate the impact of sea level rise. Over the past two Antarctic summers, the international team involved in this project has collected 760m of ice core from the Ross

Ice Shelf and brought it back to Wellington for analysis. In the winter of 2013, the team melted and analysed the 1m-long sections of core in our Ice Core Research facility. The aim of this sophisticated operation was to reveal about 30,000 years of Antarctic climate history recorded in the cores.

Called the Roosevelt Island Climate Evolution (RICE) project, it is funded by the nine participating nations. With the melting apparatus kept at a steady 36 degrees Celsius, the ice core melts at a rate of 3cm of core-a-minute or about 20m-a-day. Core sections from shallow depths were melted first and then the scientists slowly work their way down the core – or back in time.

Part of the meltwater is siphoned off and taken to eight different analysis stations. The analyses fall under three broad groups – water, gases, and particulates – to identify airborne carbon particles, dust particles, and the concentration of carbon dioxide and methane trapped in tiny gas bubbles. The carbon particles, for instance, show when large forest fires occurred in Australia and when coal-burning became widespread in the industrial age. Large volcanic eruptions are also recorded, and provide a useful time marker.

Also deduced from the meltwater are atmospheric and sea-surface temperatures, atmospheric circulation patterns, and large movements of ice. The Ross Ice Shelf, whose grounding line has retreated by 1000km in the past 8000 years, is an important drainage pathway of the West Antarctic Ice Sheet. Its collapse is likely to increase the flow of ice from West Antarctica into the ocean, and this melted continental ice would increase global sea level.

By the end of 2014, scientists involved in the RICE project hope to be able to show how quickly the Ross Ice Shelf, about the size of France, retreats because of warming temperatures in the ocean and in the atmosphere. This will help increase the accuracy of global climate models.




Isotope biogeosciences

Enhanced understanding of soil carbon dynamics and fossil fuel CO2 emission inventories

Published three journal articles demonstrating use of radiocarbon to define previously unmeasurable parameters used in models of soil carbon. Also completed field trials showing radiocarbon can be used to verify the CO2 emissions from a point source.

Identification of land-to-water nitrogen transfers contributing to the mitigation of nitrate pollution

Through two completed PhD theses and development in our labs, we now operate the only routine isotope measurement capability in Australasia to link nitrate and ammonia in water to possible sources.

Capability for in-situ 10Be and 26Al dating of exposures and erosion, with Victoria University of Wellington

With Victoria University of Wellington, we now operate a Wellington-based collaboration with proven capability to measure in-situ production of 10Be to calculate length of time rocks have been exposed at the Earth’s surface for tectonic, hazards and erosion studies.

Paleoclimate Enhanced interpretation of sedimentary archives and new analyses of ice cores for climate reconstruction and testing of climate models

Processed and analysed 760m of ice core from the Ross Ice Shelf to gain valuable new insights into Antarctic climate conditions over the past 15,000 years. Will also show how fast the West Antarctic ice sheet will melt in a warmer world.

Establishment of DrillNZ to co-ordinate scientific drilling infrastructure and international projects

DrillNZ co-ordinates a range of activities including workshops and drilling initiatives, and contributes to the Integrated Ocean Discovery Program

Continued contribution to the Intergovernmental Panel on Climate Change

A contributing author to IPCC Working Group 1, Assessment Report Five, plus ongoing work on global climate models

Biostratigraphy Enhancement of the Fossil Record File and the National Paleontology Collection

Installed a more user-friendly query system in the Fossil Record Database, including a new map search facility. Progress in adding laboratory and specimen information to the National Paleontology Collection.

Revision of the NZ geological timescale in light of a major revision of the international timescale

Produced a revised NZ timescale all the way back to the Permian (300 million years).

Enhanced interpretation of sedimentary archives for petroleum exploration

Improved the understanding of sedimentary geology and prospectivity in a number of NZ’s offshore sedimentary basins

Regional geology Delivery of the QMap series online with a seamless GIS dataset

Seamless QMap completed and available online as GIS

Geological map of South Victoria Land completed

South Victoria Land map published and available

Enhanced National Petrology Reference Collection and National Rock and Geoanalytical Database

New web map enhancements allow users to more easily retrieve the Petlab data and rock samples that they want

Tectonics, structure and landscape evolution

Improved understanding of crustal motion, and its application to hazard and resource assessment

Determined crustal deformation in Canterbury and more broadly across NZ, and won international funds to investigate the Alpine Fault and Hikurangi subduction thrust at depth

Increased understanding of Waipaoa and Waitaki tectonics and sediment transport

Published six science papers on size and frequency of tectonic and climatic impacts of environmental change in these catchments. Also produced numerical models of landscape evolution and sediment transfer.



BENEFITS FLOW FROM HAWKE’S BAY MAPPING PROJECT

We are part-way through a major mapping project for Hawke’s Bay that will produce multiple benefits for the region. Hawke’s Bay is built on soft material. This consists largely of loosely consolidated river deposits overlying soft marine sediments. When the soil profile is saturated with water, large parts of the region can become prone to liquefaction. Hawke’s Bay has long been recognised by geotechnical engineers as a liquefaction-prone area. This was evident from the widespread liquefaction damage caused by the magnitude 7.8 Hawke’s Bay earthquake of 1931, despite the post-earthquake fire dominating the public’s memory of the event.

The Christchurch earthquakes of 2010 and 2011 have led to a sizeable new body of knowledge on liquefaction and much of this can be applied nationally. Recognising this, we have set up an urban mapping project that provides high-resolution geological information for populated areas where there is a high investment in infrastructure.

This surface mapping project is being undertaken simultaneously with the study of liquefaction susceptibility, the latter being funded by the Hawke’s Bay Regional Council and the Napier and Hastings councils. The liquefaction susceptibility project will replace an existing study completed 14 years ago. The three main outputs will be a new surface geological map of the region at 1:15,000 scale, a major report on liquefaction susceptibility, and a three-dimensional map of the region’s subsurface to a depth of about 30m.

The area being covered by these projects includes Napier, Hastings and Havelock North plus the Heretaunga Plains. A major component is aggregating data from 7000 boreholes across Hawke’s Bay drilled for water over the past several decades. The deepest are more than 2km, but the average depth is about 38m. Data from these drillholes will enable the building of a 3D geotechnical model that will clearly show the spatial arrangement of the geological layers under Hawke’s Bay.

When completed in 2015, Hawke’s Bay will join Christchurch as being the only two urban areas in New Zealand to have detailed 3D geological models of their sub-surface. These 3D models are built with the New Zealand-made Leapfrog geological software by ARANZ Geo Limited, which is increasingly being used in the minerals and geothermal energy industries worldwide.

These projects will have additional direct benefits for a wide range of end-users. They will help to identify resources such as aggregate for the building of roads and infrastructure; they will further clarify geological hazards such as faults; they will help in the management of groundwater; and they will be a basis for geotechnical engineering, leading to a safer and more resilient built environment, and reduce the cost of site-specific engineering investigations.

760m 7,000KEY FACTS

of ice core from Ross Ice Shelf analysed over the past two years

boreholes analysed from across Hawke’s Bay as part of 3D geological mapping study


ARE WE UNDERESTIMATING CLIMATE SENSITIVITY?

Our scientists have uncovered new data that indicate Earth’s climate sensitivity may not be static, but may increase as global temperatures rise.

Climate sensitivity measures how global climate reacts to increases in carbon dioxide (CO2) concentrations. Most scientific models express climate sensitivity as temperature calculations, i.e. the equilibrium temperature will increase by 2 degrees Celsius every time levels of CO2 double in the atmosphere. This estimate can then be compared with knowledge from historic periods to refine predictions of future warming.

Over the past 15 years our paleontology team, together with international and local researchers, has studied marine sedimentary rocks from eastern Marlborough and Canterbury to ascertain the geological record of the greenhouse climate of the early Paleogene – 66-40 million years ago – when CO2 levels were inferred to be at least three times higher than present.

During their research of these two South Island regions, the paleontologists discovered three rapid pulses of warming that culminated in a prolonged period of tropical warmth around 50 million years ago. Their work is based on an integrated approach to climate reconstruction, in which both geochemical and paleontological methods are used to estimate past temperatures on land and in the sea.

The team then compared these findings to ocean sediment cores from the Campbell Plateau, the south Tasman Sea, and Antarctic margin looking at the same time period. This revealed the tropical conditions extended to the South Pole during this period. This extraordinary polar amplification of temperature is something that has not been captured in climate models to date.

The researchers concluded that these episodes of extreme warmth could be explained if climate sensitivity increased as global temperatures warmed. Possible feedbacks that may cause this phenomenon include increases in water vapour, cloud distribution, and losses of sea ice and polar snow cover. This has implications for modern climate projections. If the Earth is more sensitive to CO2 changes than previously thought, global temperature may start to increase at faster rates once CO2 levels exceed an as yet unknown critical threshold.

The researchers qualify this by acknowledging that the geological record has uncertainties and the causes of apparent tropical warmth 50 million years ago are still the subject of debate. The geological record is best seen as a testing ground for new models to incorporate variable climate sensitivity and a wider range of climate feedbacks.

However, the studies indicate that the current generation of climate models underestimates the likely scale and rate of greenhouse gas-induced global warming.


BOARD OF DIRECTORS

Board of Directors

01 03

0402 06

05 07


Tom Campbell 05

ChairmanBSc, AFinstD (Appointed 1 July 2009) Invercargill

Tom is Chair of the Energy Efficiency and Conservation Authority, and a Director of Todd Corporation, the New Zealand Standards Council, Electricity Invercargill Limited, and PowerNet Limited. He was formerly Managing Director of Comalco in New Zealand. He was also formerly Chairman of New Zealand Aluminium Smelters and Chairman of Anglesey Aluminium in the UK.

Hon Ken Shirley 03

Deputy ChairmanBSc (Appointed 1 July 2010) Wellington

Ken is a former Minister of Fisheries, Associate Minister of Agriculture and Forestry, and Health. He is Chief Executive of the NZ Road Transport Forum, a Director of the Motor Industry Training Organisation, and a member of the Human Rights Review Tribunal. He is a former Chief Executive of the Researched Medicines Industry Association, the NZ Forest Owners Association, and Organics Aotearoa NZ.

Professor Steve Weaver 01

BSc Hons, PhD, DSc, FGS, FNZIC, FRSNZ (Appointed 1 July 2010) Christchurch

Steve is Deputy Vice-Chancellor (Research) and former Head of the Department of Geological Sciences at the University of Canterbury. He has held academic appointments at Birmingham, London and Nairobi universities. He is a Fellow of the Royal Society of New Zealand and is a board member of the Canterbury Medical Research Foundation and the New Zealand Brain Research Institute. Steve has published extensively on the geology of New Zealand, Antarctica and East Africa, specialising in igneous petrology, volcanology, isotope geochemistry, tectonics and environmental science.

Belinda Vernon 06

BCom (Appointed 1 July 2011) Auckland

Belinda is currently a consultant with a background in accounting and shipping, and is a Director of Maritime New Zealand. She has previously worked in senior accounting roles in the shipping industry. She is a former Member of Parliament (1996-2002) where she was a spokesperson on Transport, and Arts, Culture and Heritage. She is a trustee of the Auckland Philharmonia Foundation.

Jane Taylor 04

LLB (Hons), LLM, Dip. Acc, CA (Appointed 1 July 2008) Queenstown

Jane is a Queenstown-based barrister specialising in civil and commercial law and equity, and an independent hearings commissioner in resource management matters. She is a former Chartered Accountant with experience in business and share valuations, corporate finance, insolvency and company reconstruction, and litigation support. Jane is a Director of Radio New Zealand and Silver Fern Farms. She is also a member of the Institute of Directors, the New Zealand Law Society, and the New Zealand Institute of Chartered Accountants.

Dr Claire McGowan 02

PhD, MBA (Appointed 1 July 2010) Auckland

Claire is Founder and Managing Director of Commercialisation Advisors Limited (COMMA). She is also a Director of four other companies including NZ Extracts Limited and Te Arawa Management Limited, a Trustee of Work Choice Trust, and Chair of The Executive Connection (TEC) NZ. Her research training was in molecular microbiology and her MBA project in risk management of pharmaceutical projects with Pfizer Pharmaceuticals in the UK. Claire has experience in the New Zealand venture capital and investment banking industries, and now works with the NZTE-funded Escalator Investment-Ready Programme, assisting entrepreneurs to prepare for capital-raising.

James Johnston 07

LLB (Appointed 1 July 2013) Wellington

James is a commercial lawyer and Chairman of Partners at Rainey Collins Lawyers, where he heads the Business & Personal Legal Services Team. He is a former Chair of the New Zealand Law Foundation and was the Lead Legal Counsel for the Nga-ti Porou Treaty Settlement negotiations with the Crown. He is also the Chairman of Toi Whakaari – the New Zealand Drama School, is on the Samuel Marsden School Management Board, and is an External Specialist Advisor to the Ministry of Justice Legal Aid Services Group. James is a New Zealander of Nga-ti Porou descent.


MANAGEMENT TEAM

Management Team

01 03 05

02 04 06


Kevin Faure 01 Director, Geological Resources DivisionPhD, The University of Cape Town

Kevin leads the Petroleum, Geothermal, Paleontology and Marine Geoscience Departments. He specialises in stable isotope geochemistry and has researched and published on ore deposits, submarine volcanoes, gas hydrates, and geothermal springs. He joined GNS Science in 1997 and has previously worked as an exploration and mining geologist in South Africa, and as a research scientist at the Geological Survey of Japan.

Desmond Darby 02 Director, StrategyPhD, State University of New York at Stony Brook

Desmond leads our strategy formation across the government and the private sectors, and advises the Chief Executive in these areas. He also manages the public relations and outreach staff, and co-ordinates student scholarships and supervisions. He previously managed our crustal dynamics team, and led the major research programme on The Effects of Plate Tectonics on New Zealand. Desmond is a Director of New Zealand Synchrotron Group Ltd and he was chair of FRST’s Postdoctoral Fellowship Advisory Committee.

Rawiri Faulkner 03

General Manager, Ma-ori StrategyBA, Victoria University of Wellington

Rawiri has the role of building strong relationships between GNS Science and iwi to find ways of unlocking the innovation potential of iwi/Ma-ori communities. He also provides support for our staff and management to develop Ma-ori research and innovation as an integral part of what we do. Rawiri’s extensive experience includes previous positions at the Foundation for Research Science and Technology and the Ministry of Research Science and Technology, as well as a variety of roles in local government. He also holds a number of governance roles. He has iwi affiliations to Nga-ti Whakaue, Nga-ti Huia, Nga-ti Toa Rangatira and Ngai Te Rangi.

07 09 12

08 10

11


Chris Daughney 04

Director, National Isotope CentrePhD, McGill University, Montreal, Canada

Chris leads the National Isotope Centre (NIC), New Zealand’s premier source of applied isotope science capability. The NIC comprises research infrastructure as well as research teams and commercial service units in Ion Beam Technologies, Isotope Biogeosciences, and Hydrogeology. Chris specialises in aqueous environmental geochemistry. His areas of interest include the chemical evolution of groundwater at the catchment scale and the use of tracer methods for evaluating in-situ rates of water-rock interaction.

Peter Barker 05

General CounselBarrister and Solicitor

As General Counsel, Peter provides legal and commercial advice to GNS Science. He is a commercial lawyer with experience in intellectual property. Peter has been a partner in a national law firm, and has worked in the finance and entertainment industries.

Ian Graham 06 Director, ResearchPhD, Victoria University of Wellington

Ian is responsible for maintaining an overview of Government-funded research across the organisation. He monitors the quality and delivery of contracted and core-funded research, seeks ways to maintain viable research revenue streams, and ensures that lines of communication with Government funding bodies, other Crown Research Institutes and universities are open and constructive. Ian is an isotope geochemist with applied expertise in volcanology, mineralisation, climate change, and basement geohistory.

Tony Stone 07 General Manager, Human ResourcesDiploma in Industrial Relations, Victoria University of Wellington

Tony joined GNS Science in 2003 and was appointed General Manager, Human Resources in 2007. He has a Diploma in Industrial Relations and is a trained mediator. He is also a mentor for the Human Resources Institute of New Zealand mentoring programme. Tony’s responsibilities include payroll, training, recruitment, health & safety, and employee relations. Prior to joining GNS Science, Tony held HR positions in a number of private, public and health sector organisations.

Terry Webb 08 Acting Chief Executive and Director, Natural Hazards DivisionPhD, University of Canterbury

Terry has been Acting Chief Executive for most of the period since our former Chief Executive, Alex Malahoff, retired in December 2012. He also leads the Natural Hazards Group which undertakes research and consultancy in earthquakes, volcanoes, landslides, tsunami, and geological mapping. A seismologist by training, Terry specialises in seismic and tsunami hazard and risk assessment, and international disaster risk reduction.

Graham Clarke 09

Chief Financial OfficerBCA, CA

Graham is a Chartered Accountant and leads the Company’s finance operations ensuring appropriate policies, procedures and practices are developed and maintained. His team provides the full range of financial services to support the Company’s operations, including financial reporting and advice to management and to the Board to allow them to effectively undertake their respective roles. His team also takes responsibility for various operational aspects including procurement, property, insurance, and internal audit. Graham is a Director of Meatvision Limited, one of our joint venture operations.

Lynley Smith 10

Acting Manager, Information Services BCom, University of Otago

Lynley leads the Information Services team which provides essential support for GNS Science with IT infrastructure and operations, applications development, records management and library services. Lynley joined us in 2008 and has over 20 years’ experience in the IT industry, in both the private and public sectors. She has held both line management and project management roles, and has been responsible for developing applications for a wide range of organisations.

Kelvin Berryman 11

Manager, Natural Hazards Research PlatformPhD, Victoria University of Wellington

Kelvin manages the research platform that integrates all of New Zealand’s government-funded research in natural hazards. The portfolio encompasses geological and weather-related hazards, integrated natural hazard risk, resilient engineering and infrastructure research, and societal and land-use planning aspects of natural hazard mitigation. Kelvin has a research background in geology with specialisations in mapping, active fault studies, tsunami deposits, and hazard and risk assessment.

Rob Johnston 12

General Manager, Business DevelopmentBSc, Dip ORS, Dip Tchng

Rob’s portfolio includes managing the Company’s commercial operations and intellectual property issues. Rob joined GNS Science in 2004. He has extensive experience in managing information systems, corporate functions and processing operations in New Zealand companies. This includes senior positions with Tasman Forestry and with Public Trust.

MANAGEMENT TEAM


ORGANISATIONAL STRUCTURE

Organisational Structure

Chief ExecutiveMichael McWilliams

DirectorGeological Resources

Kevin Faure

DirectorNatural Hazards

Terry Webb

DirectorNational Isotope Centre

Chris Daughney

Chief Financial OfficerGraham Clarke

General Manager Human Resources

Tony Stone

Director of ResearchIan Graham

General ManagerBusiness Development

Rob Johnston

Director of StrategyDesmond Darby

General Manager Ma-ori StrategyRawiri Faulkner

Acting Manager Information Services

Lynley Smith

Manager, Natural Hazards Research Platform

Kelvin Berryman

Petroleum Geoscience DepartmentRob Funnell

Geohazards Monitoring Department Ken Gledhill

Ion-beam TechnologiesDepartment

Andreas Markwitz

Geothermal ScienceDepartmentGreg Bignall

TectonophysicsDepartment

Hannah Brackley

Isotope Biogeosciences Department

Mike Sim

Paleontology Department

Lucia Roncaglia

Risk and SocietyDepartmentMichele Daly

HydrogeologyDepartment

Stewart Cameron

Marine GeoscienceDepartment

Vaughan Stagpoole

Regional GeologyDepartmentPhil Glassey

VolcanologyDepartment

Gill Jolly

Active LandscapesDepartmentPilar Villamor

General CounselPeter Barker


DIRECT CROWN FUNDING

Direct Crown Funding

BY RESEARCH TYPE

TOTAL DIRECT CROWN FUNDING – $26,917,000 ENERGY AND MINERALS – $9,720,000



Applied 41% Applied 50%

Basic targeted 42%

Basic targeted 46%

Basic untargeted 4%

Basic untargeted 1%

ISOTOPES AND ION-BEAM TECHNOLOGY – $1,387,000




Applied 31%

Basic targeted 41%

NATURAL HAZARDS – $9,740,000



Applied 37%

Basic targeted 41%

Basic untargeted 2%

GEOLOGY AND PAST CLIMATES – $4,870,000



Applied 29%

Basic targeted 36%

Basic untargeted 17%

GROUNDWATER – $1,202,000

Applied 47%

Basic targeted 53%

Our contract with the Minister of Research, Science and Technology for Direct Crown Funding of $26,917,000 requires us to report on its use in relation to the outcomes specified in our Statement of Core Purpose.


TIME FROM RESEARCH TO IMPACT

TOTAL DIRECT CROWN FUNDING – $26,917,000

0-3 years 3-5 years

5-10 years 10+ years54% 32% 11% 3%

ENERGY AND MINERALS – $9,720,000

0-3 years 3-5 years

5-10 years 10+ years42% 39% 14% 5%

GROUNDWATER – $1,202,000

0-3 years 3-5 years

5-10 years 39% 14% 5%

ISOTOPES AND ION-BEAM TECHNOLOGY – $1,387,000

0-3 years 3-5 years

5-10 years 84% 12% 4%

NATURAL HAZARDS – $9,740,000

0-3 years 3-5 years

5-10 years 10+ years59% 29% 11% 1%

GEOLOGY AND PAST CLIMATES – $4,870,000

0-3 years 3-5 years

5-10 years 10+ years56% 32% 9% 3%


These indicators include those specified in our Statement of Corporate Intent.

Group Actual

2013

Group Budget

2013

Group Actual

2012

Financial Performance Measures

Return on equity4 4.2% 8.4% 15.8%

Non-government revenue1 45.0% 45.7% 45.6%

Return on assets4 3.1% 7.2% 10.2%

Operating margin2 4 8.9% 11.4% 13.6%

NPAT margin4 1.6% 3.1% 5.4%

Profit2 4 per FTE ($000s) 17.8 22.8 27.6

Chargeable time of science staff (%) 74.3% >75% 74.8%

Quick ratio 1.43 1.26 1.42

Equity ratio 55.8% 59.8% 52.7%

Technology transfer and contestable revenue3 62.6% 63.6% 63.5%

Revenue growth (2.3%) 2.6% 2.2%

Technology transfer revenue growth ($000s) (5.4%) 9.5% 10.8%

Capital renewal ratio 1.21 1.34 0.94

Return reinvested (net profit after tax less dividend divided by average equity)4 3.3% 7.5% 13.7%

Human Resources

Full-time equivalents (FTEs) 360 364

Scientists and specialists 252 256

Science support 51 51

General support & management 57 57

Distribution of science effort (FTEs):

Research 147 147

Technology transfer 156 160

Staff turnover 6.5% 9.6%

Training and development ($000s) 1,021 1,024

Work days missed due to injury 0 1

ACC workplace safety accreditation (‘Tertiary’ status awarded subsequent to year end) Secondary Secondary

Staff engagement (% proud to work at GNS Science) 84.0% 84.0%

User input descriptors

Number of user Advisory Groups 8 10

Number of user Advisory Group meetings 10 10

Research collaboration descriptors

Joint peer-reviewed publications with New Zealand or international institutions:

Number 214 202

Percentage 87% 73%

Number of visiting researchers hosted 101 59

Value of research contracts to other research organisations ($000s) 8,195 5,752

Percentage to New Zealand universities 72% 76%

Value of research contracts from other research organisations ($000s) 2,514 2,664

Percentage from New Zealand universities 40% 38%

Number of graduate scholarships funded 36 31

Number of graduate students co-supervised 100 125

PERFORMANCE INDICATORS

Performance Indicators


Group Actual

2013

Group Budget

2013

Group Actual

2012

Technology transfer descriptors

Technology transfer effort (FTEs) 156 160

Number of commissioned reports to users 278 303

Total revenue received from clients ($000s) 23,138 24,454

Number of new patents registered 2 3

IP licensing (incl technologies, products, services) in New Zealand and overseas:

Number 29 54

Value ($000s) 1,197 1,855

Client feedback average score (out of 10) 7.5 7

Number of projects achieving outcomes or creating opportunities for iwi/Ma-ori 27 23

Number of international fora with staff representing New Zealand 17 25

Database use:

Number of databases accessible to the public via the web 30 29

Registered external users of GNS Science data 3,187 2,929

Number of unique users accessing the GNS Science website:

annual 341,610 279,663

daily peak 11,647 5,206

Number of unique users accessing the GeoNet website:

per annum 4,482,380 5,047,492

daily peak 170,687 229,645

Science descriptors

Research effort (FTEs) 147 147

By scientist 122 123

By science support staff 25 24

Number of peer-reviewed science papers and book chapters (in preceding calendar year) 310 271

Number of research monographs and maps (in preceding calendar year) 2 6

Number of other journal papers and publicly available science reports (in preceding calendar year) 55 97

Publication rate (peer-reviewed science papers/monographs/chapters/maps per science FTE) 2.6 2.3

Total number of citations of science publications for each of the five preceding calendar years:

2012 6,361 –

2011 5,298 4,820

2010 5,704 4,988

2009 4,525 4,255

2008 3,571 3,366

2007 – 3,030

Use of science – h1-score (number of GNS Science publications cited at least this number of times) 75 71

Scientist visibility – h2-score (number of staff with an h-score of at least this number) 19 19

Total number of international and significant New Zealand awards, and invitations to participate on international committees and editorial boards, annually

12 New measure

Number of new Marsden-funded projects 4 11 proportion of revenue that is not from Crown research funding 2 profit is before interest, tax, depreciation and amortisation 3 proportion of revenue that is from commercial operations and contestable funding 4 2012 includes gain on sale of property

gns science annual report 2013...activity to new zealand. our geothermal field surveys, undertaken...

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