The amendments to the Petroleum Act were yesterday passed by the National Assembly after a grueling five hours of debate during which the opposition questioned the urgency and recommended further consultation.
Government speakers said the passage of the Petroleum (Exploration and Production) (Amendment) Bill paves way for the smooth execution of the planned US$900 million gas to shore project and ExxonMobil’s laying of fibre optic cables, which they argue will allow real time monitoring of activities offshore Guyana.
Throughout the debate, APNU+AFC coalition members told the National Assembly they could not give their support to the proposed changes as they feared they were intended to encourage corrupt practices while foreseeing awards only to friends and supporters of the PPP/C government as beneficiaries and trampling of the rights of private landowners.
In rebuttal, government speaker maintained that the amendments were only aiming at protecting the rights of private land owners and the public interest, allowing government via the Minister of Natural Resources to initiate land negotiations where possible instead of licensees having to do that.
Much of the arguments on the amendments did not critically address the purpose of the bill as both sides of the House instead focused on the proposed US$900 million gas to shore power generation project and its benefits and disadvantages.
Once enacted, the bill will amend Section 52 of the Principal Act, inserting a proviso to subsection (l)(b) (i) and (ii) to exempt State land, Government land, land wholly owned by State entities or in which the controlling interest is vested in the State, and any land identified by law or on a plan for reserves from the restriction of section 52(1) (b).
Section 52 deals with the restriction on the rights of the licensee and surface rights. Section 52 (1) (b) (i) and (ii) pertain to any land which is the site of, or which is within two hundred meters (or such greater distance as may be prescribed) of any inhabited, occupied or temporarily unoccupied house or building and any land within fifty metres (or such greater distance as may be prescribed) or any land which has been cleared or ploughed or otherwise bona fide prepared for the growing of, or upon which there are growing, agricultural crops.
The bill also seeks to amend Section 52 by inserting new subsections (2A) and (2B). Subsection (2A) provides that the Minister may obtain written consent from any landowner or lawful occupier of private land. Currently, only a licensee may obtain written consent from the lawful occupier of private land.
Subsection (2B) provides that a licensee may land, install or operate any pipelines or submarine, fibre optic or terrestrial cables or similar infrastructure. These infrastructural activities may only be done on State land, Government land, land wholly owned by State entities or in which the controlling interest is vested in the State and any land identified by law or on a plan drawn and approved in accordance with any law for reserves. This is necessary as the Principal Act is premised on onshore development with all of its accompanying heavy infrastructural works.
At the start of the debate, Minister of Natural Resources Vickram Bharrat, who took the bill through its final stages, yesterday said that the amendments seeks to ensure the government has enhanced oversight over the exercise of licence holders over private lands.
“Previously Mr Speaker, the licensee could have acted… themselves. However, we see it fit that the government play a role so that we can protect the rights of citizens, [and] protect the rights of private landowners so as to ensure they are fully compensated…,” Bharrat said.
He stated that while the licensee could have negotiated land deals with private land owners, there were limitations as they were required to seek the President’s approval before doing so. The changes, he argued, gives government oversight in the acquisition of private lands.
He went on to state that the law also allows a landowner to offer written consent conditionally or unconditionally. Such power, the minister said, allows transparency and accountability not available previously.
“Mr Speaker, the bill also address the matter of landing, installation of pipelines or a submarine fibre optic cables or terrestrial cable or infrastructure of similar nature by licensee for or in connection with prospecting or production operation in relation to state lands, government lands, lands wholly owned by state entities or by which any controlling interest is vested in the state and any land identified by law or on a plan drawn and approved in accordance with any law for reserves,” Bharrat explained. He outlined that this provision is necessary to better accommodate onshore development with all its accompanying heavy infrastructural work.
The amendments, he added, will apply to existing and future licensees.
Supporting the amendments, Attorney General Anil Nandlall stressed that the purpose of the amendment is to take away the power from the licensee, to ensure that private property is respected and compulsory acquisition, if done, is lawful and ensure the issue of compensation is done within the perimeters of the law.
Nandlall accused opposition speakers of not understanding the purpose of the amendments.
“You have not read it! You have not read it!” he said as he accused them of failing to comprehend the main purpose of the bill, which is to ensure mechanism are in place to protect private landowners.
Nandlall further informed the House that Guyana requires a “completely new act” to deal with the offshore production and that such amendments are important as they give government the opportunity to put a legal framework in place to facilitate development while they continue to craft the new legislation.
The Parliamentary Counsel Committee from his ministry, he added, worked tirelessly in the preparation of the amendments and held numerous consultations with lawyers and stakeholders over the last six months trying to come with mechanisms to protect private property holders.
He argued that in crafting the amendments, they drew inspiration from Commonwealth countries that have similar projects to ensure all bases are covered.
“…What we have done here we have added more restrictions, we have not removed it, Mr. Ramjattan, we have added more… and we have said once the pipeline is running through private property we will deal with that in other sections of the law,” Nandlall said as he responded to criticism that the amendments lacked provisions for compensation. He told the House that under section 56 of the Act, provisions are made for compensation to any party inconvenienced by development.
He further added that government is aiming to limit the use of private lands for the laying of any pipeline in the gas to shore power generation project and stated that the ministerial oversight in the amendments task the minster to ensure the pipelines fall on government lands.
The Attorney General further pointed out that if parties fail to arrive at a mutual agreement, the High Court will serve as the mediator.
Nandlall informed the House that the principles in the Acquisition of Land for Public Purpose Act will be invoked wherever land is affected since it has the protective mechanism of securing valuation, market value and going to parliament to securing funding for payment.
“This bill protects private interest, protects the government and renders the government and licensee accountable to render their transactions and dealings in relation to laying of the pipeline transparent and superviseable by the courts of our country, he declared.
APNU+AFC Member of Parliament David Patterson, in his presentation, proposed four amendments that will allow proper compensation for landowners once consent would have been reached. However, Nandlall stated that amendments proposed were “redundant,” since the legislation already has such provisions.
When the amendments were proposed, government used its majority to vote against them, which paved the way for the final reading and passage of the bill as printed.
Throughout the debate, opposition members emphasised that they will not be supporting the bill as it lacks substantial provisions and will only encourage “bullyism and dictatorial behaviour.”
Patterson pointed out that the amendments have serious implications going forward and with the changes they will make or break private citizens.
Currently, ExxonMobil is forging ahead with the laying of a US$50M fibre optic cable under its ‘Fibre Optic Enablement Project,’ where it plans to connect the onshore and offshore operations so that there can be real-time oversight. Nandlall said that the government will also be given a feed and it will also be able to independently monitor works. In addition, the company is also leading the Wales Gas to Shore Project, scheduled to bring associated gases to shore for processing into natural gas for domestic energy uses.
