Gisborne District Councillor Manu Caddie says rates on properties which have oil wells may have to increase significantly to pay for damage to the region's roading infrastructure from oil industry traffic.
TAG Oil has hired two fracking specialists from the United States to begin a drilling programme on the East Coast.
Cr Caddie says the region already has major transport challenges with the number of logging trucks on the road expected to treble by 2020.
If TAG begins widespread drilling, he says properties with oil wells may pay higher rates to compensate for road damage in line with what happens in the forestry industry.
