Although the matter was complex, with some of the contract law used three decades ago now outdated, redetermination could be settled within months if all the parties agreed, said Taylor at the conclusion of the three-day conference in Auckland.

"If the parties to the contract chose to make it so, then it could be very straightforward.

"It's not up to Maui Development to sort out differences between the Government and Methanex, Contact and NGC," said Taylor.

Redetermination of the Maui gas supply contract is being negotiated in light of last year's revelation by MDL that total recoverable reserves initially in place were now thought to be only about 3800PJ and not the 4150PJ contracted figure.

If the parties - MDL, the government and Methanex, Natural Gas Corporation and Contact - all agree on a modified quantity of available gas, then the big three end users will have to reduce their offtakes or not be able to "bank" unused gas.

NGC has the largest amount of free uncommitted gas and stands to lose the most if it cannot access that before the field runs dry in possibly mid-2007.

Methanex, however, is the only customer that uses all its take-or-pay entitlements and still needs to be able to draw all that gas until the Pohokura field comes onstream in early 2005 and provides some sort of buffer.

Taylor said the picture had changed considerably since the time the contract was signed, when the government was involved in all parts of the equation, from discovery to gas wholesaling.

"Our contract is not with NGC or Contact, it is with the Crown and it's up to the Crown to resolve any problems with the end users. It's not our problem."

Methanex New Zealand managing director Bruce Aitken on Tuesday described the redetermination process as an ill defined, potentially tortuous path, which is set up to fail."

By Neil Ritchie in Auckland.