The Environmental Protection Agency (EPA) says that it has complied with a High Court Order and had since May 9th issued an Enforcement Notice to Esso Exploration and Production Guyana Limited (EEPGL) that it provide a parent company liability for any oil incident in the Stabroek Block.
“Yes we did,” Director of the EPA Kemraj Parsram told the Stabroek News yesterday.
A ruling is expected next week on whether there is merit in the appeal filed by the EPA to the High Court order that it enforce the liability clause stated in the permits issued to ExxonMobil for its offshore oil operations here.
Also likely, is a ruling on whether the appellate court will grant a stay of execution on the order.
Following the presentation of arguments on Wednesday on the preliminary issues, Justice of Appeal, Rishi Persaud, said that the court goes into a short recess from today until next Wednesday. As such, he informed that he intends to deliver his ruling after then, and that the parties will be informed of the date.
From what Justice Persaud has indicated, the ruling will likely be on Thursday or Friday of next week.
President of Transparency Institute of Guyana Inc (TIGI), Frederick Collins, together with another concerned citizen – Godfrey Whyte – had moved to the court last year to get the EPA to enforce the liability clause in the permits it had issued to ExxonMobil.
The litigants have said that the resort to the court was their bid to ensure that the company takes full financial responsibility for possible resulting harm, loss and/or damage to the environment.
Esso has agreed in the permit to provide insurance and an unlimited parent company indemnity to cover all environmental loss and damage that might result from a well blowout, oil spill, or other failures in the Liza 1 Development Project in Guyana’s Stabroek Block.
Collins and Whyte had argued through their attorneys that “… the agency, through its human minds, including its officers has failed or omitted to carry out or to show that it has carried out its legal duties and or obligations thereby amounting to misfeasance in public office by them and by failing or omitting to act, has acted unreasonably, irregularly or improperly and or has abused its power.”
Justice Kissoon had said that in the course of the proceedings, the court found on the evidence that EEPGL was engaged in a “disingenuous attempt which was calculated to deceive when it sought to dilute its liabilities and settled obligations stipulated and expressed in clear unambiguous terms at Condition 14 of the Environmental Permit (Renewed) while simultaneously optimising production at the Liza Phase 1 Petroleum Production Project in the Stabroek Block Offshore Guyana.”
He had ruled that the EPA must order Exxon to provide an unlimited parent company guarantee, as per its contractual agreement in the permit or unlimited liability affiliate company guarantee “to indemnify and keep indemnified the Government of Guyana and the agency against all such environmental obligations of Esso and its Co-venturers within the Stabroek Block together with environmental liability insurance from an insurance company with standing and repute that equates to Grade A Plus.”
