A man works at the West Qurna oilfield in southern Basra October 13, 2014.
A man works at the West Qurna oilfield in southern Basra October 13, 2014. Reuters/Essam Al-Sudani

Shell Corporation has been accused of violating new environmental laws in New Zealand. According to 3News, the biggest oil and gas company operating in the country has unlawfully drilled two wells off the coast of Taranaki. The Environmental Protection Authority has revealed that it has major concerns regarding Shell Todd Oil's drilling on the Maui gas rig.

Greens party co-leader Russel Norman said the documents from the EPA found Shell drilling "illegal" wells. The report revealed the Maui oil rig which is an old well has already been exhausted. Shell is reportedly using new technology to drill a new extension well that will reach 6.5 kilometres of the ocean floor.

Norman expressed his concern over Shell's failure to obtain legal permission to drill oil wells. The oil and gas company has breached the new exclusive economic zone law which was implemented in June 2013. However, the existing oil and gas exploration activities are exempted. The EPA has ruled that Shell's two extension wells were drilled after the date the new laws were enforced. Shell should have asked for a special ruling from the EPA or sought marine consent.

Since Shell did not seek permission, the EPA said the drilling of the two wells was "not authorised." New Zealand Environment Minister Nick Smith said the violation was "inevitable" with the new law since there was no regulation around the exclusive economic zone for oil drilling activities.

Shell Todd had insisted it began drilling operations before the new law was enacted and believed it was exempted. In a statement, Shell said the drilling had "no adverse impact on the environment." The company added that Shell supports the aim and intent of the legislation but said it was common for new laws to have different interpretations in the beginning.

The new environmental law requires parties to request for a ruling or apply for marine consent from the EPA. Norman had called for authorities to apply penalties or sanctions for Shell's violation.

Meanwhile, reports said Greenpeace thought Shell had displayed "willful ignorance" in violating the country's new maritime laws. Shell was given a warning letter for now but further violations of the law may result in a fine of up to $10 million.