EPA modifies permit …Exxon to pay for gas flaring outside of timelines

Centre for International Environmental law image
Centre for International Environmental law image

The Environmental Protection Agency (EPA) today said that the Environmental Permit for the Liza 1 Development Project, Offshore Guyana, was recalled and modified to include specific regulatory requirements for flaring of associated gas offshore Guyana, in accordance with the EPA’s legislation.

The Guyana Government and the EPA have come under severe pressure for allowing ExxonMobil to continue flaring offshore without penalty.

A release from the EPA today noted that due to technical issues offshore, Esso Exploration and Production Guyana Limited (EEPGL) recently resumed flaring offshore Guyana, following intermittent periods of flaring since December 2019. The company, the release said, was projected to exceed the 14 Billion Standard Cubic Feet (Bcf) of gas estimated to be flared by the Environmental Impact Assessment (EIA) for the project on May 13, 2021.

In light of the foregoing, the release said that the EPA and EEPGL have been engaged in discussions regarding the technical and legal issues regarding modifications to address flaring.

“On May 13, 2021, the Modified Permit was issued to EEPGL having been signed by both EEPGL and EPA. The Modified Environmental Permit includes revised terms and conditions relating to emissions reporting requirements, technical considerations for flaring, timelines for flaring events and an obligation on the company to pay for the emission of Carbon Dioxide equivalent (CO2e) as a result of flaring in excess of these timelines. The aforementioned payment shall be paid to the EPA and calculated at the rate of US$30 per tonne of CO2e”, the release said.