Petroleum Commission Bill represents legal laziness

Sep 04, 2017 News

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– Lawyer

An overview of the Petroleum Commission Bill would reveal that in comparison to earlier versions, there have been no substantive changes. In fact, one critic of the Bill, Attorney-at-Law, Christopher Ram, has gone as far as describing the Bill to being a representation of legal laziness.
On his blog, www.chrisram.net, Ram noted that the Bill, which has been published by the Government for public comments, has several flaws and worrying aspects.
In this regard, he cited a clause in the Act dealing with repeal. Ram commented that he found this particularly interesting, since the clause seeks to repeal any provision in the Guyana Geology and Mines Commission Act (GGMC), the Mining Act and any other legislation that are in any manner inconsistent with “the provisions of the Act”.
Ram said that it is bad enough that the Bill is described as an Act. “But how in the name of legal drafting is any person to know which other legislation to refer to in order to ascertain the matters so repealed. This is legal laziness at its worst.”
The Chartered Accountant also took issue with the penalties under the Bill, noting that they are quite severe. As is customary, Ram said that various clauses in the Bill create obligations and offences for which penalties are specified.
In this regard, he cited that Clause 51 does a mopping up exercise by providing that where no penalty attaches to an offence committed under the Bill, the penalty is $10 million and imprisonment for three years. Additionally, Clause 49 of the Bill which empowers the Minister to make regulations for the proper administration of the act also empowers him to provide penalties of a fine of up to $5 million and imprisonment for three years.

Touching on other aspects of the Bill, Ram sought to note that there are 51 Clauses covering areas such as establishment and incorporation of the Petroleum Commission; functions and duties of the Commission; and financing, among others.
The broad function of the Commission is stated in Clause 4 as “to monitor and regulate the efficient, safe, effective and environmentally responsible exploration, development and production of petroleum in Guyana”.
In this regard, the lawyer asserts that the clause also gives to the Commission the duty to review and recommend to the Minister for approval, amendment or rejection the plans, proposals, reports, analyses, data and any other information submitted by an applicant or operator in support of an application for the granting or renewal of a petroleum prospecting licence or a petroleum production licence.
He said that it is important to note, however, that the Committee has no power when it comes to recommending the granting, suspension or revocation of any petroleum licence.
Significantly, Ram stated that the Minister has the power and the authority to give to the Commission what the Bill describes as general directions on policies to be observed and implemented; the organization of the Commission to enable it to discharge its functions, including the size of the establishment, the employment of staff and the terms and conditions of employment; and the provision of equipment and use of funds.
The Commission is also compelled to comply with such directions. Ram explained that it means that the Minister not only chooses who he wants as directors but determines the resources at their disposal to be truly effective.
Furthermore, Ram pointed out that the Commission will comprise a board of a maximum of eight persons all appointed by the minister including one from civil society or academia and one from the parliamentary opposition.
The Board will have a life of one year, strengthening the influence of the Minister and the uncertainty of tenure of board members. Ram said it is instructive to note that under the Ghana Petroleum Commission Act on which the Guyana Bill has been patterned, directors are appointed for three years.
Ram said that the chairperson and the Secretary to the Board will be appointed by the minister, and where a board of directors has not been so appointed, the Minister automatically discharges the functions of the board. The Minister’s control does not end there. Ram asserted that the Minister may appoint ex-officio members of the Board and shall approve the payment of remuneration to the members to the Board.
In a new development, he pointed out, too that the Minister can revoke the appointment of any member, inter alia: if information relating to the conduct of a member, which could have precluded his or her appointment if it had been made available to the Minister, is brought to the attention of the Minister; for incompetence; and/or for misbehavior or misconduct.
The attorney said that while it is the right of someone to be heard before disciplinary measures are taken; the provision serves as a rather novel one in public law.
Ram said that it makes one wonder whether there is to be a new culture of governance in the public sector or whether sacking for information carried to the Minister will become the norm.

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