Oil companies join legal challenge against State over environmental permits

Oct 26, 2018 News

The High Court has granted a request by Oil companies to join the proceedings for which local activist Ramon Gaskin is challenging the legality of the environmental permit granted to them to conduct explorations here.

Earlier this year, Gaskin sought to challenge the State, particularly Minister of Natural Resources Raphael Trotman’s decision to authorise oil companies, Hess Guyana Exploration Ltd (“Hess”) and CNOOC Nexen Petroleum Guyana Ltd. (“Nexen”) to conduct explorations here, without proper environmental permit(s).

More specifically, Gaskin sought to block the companies from proceeding with their exploration and production on the grounds that Hess and Nexen have not been issued separate environmental permits.

Gaskin does not agree that Hess and Nexen are covered by the environmental permits issued to ExxonMobil, through its local subsidiary Esso Exploration and Production Guyana Limited.

“There are three separate companies and they have to have permits,” argues Gaskin, who is represented by Attorney-at-law, Melinda Janki.

Although the oil companies are the subject of the case, they are not listed as parties in the proceedings. The matter is essentially between Gaskin and the State. However, given its interest in the matter, the oil companies have filed an application in the High Court to join the proceedings.

The application by Hess Guyana Exploration Ltd (Hess) and CNOOC Nexen Petroleum Guyana Ltd (Nexen) was considered by Chief Justice (Ag) Roxane George.

During a chamber (private) hearing before the Chief Justice, the application, which was presented by Attorneys- at- law Andrew Pollard, S.C and Nigel Hughes appearing on behalf of the oil subsidiaries, had essentially argued that the companies should be joined as a party in the case, given that a ruling will directly affect their efforts and investment in Guyana.

After considering the application, Chief Justice George ruled in favour of allowing the companies to join the action as a party of interest in the case.

Earlier this year, the case was thrown out of the High Court after it came up before Justice Franklyn Holder. Justice Holder, among other things, ruled in favour of the three companies, in his finding that the companies constituted a single developer.

Gaskin, nonetheless, through his attorneys, had moved to the Appeal Court, asking for a speedy hearing and determination of the case. He had argued that Justice Holder exceeded his jurisdiction and erred in finding that “the form of the joint arrangement had to have been set down in an application for the Petroleum Production Licence.”

During a hearing in the Appeal Court, Gaskin’s lawyer Trinidad-based Guyanese Senior Counsel, Seenath Jairam, sought to convince the Appellate Judges that the Court should hear the appeal urgently, since it has to do with liability for environmental impact on Guyana, the Caribbean and neighbouring countries.

“If there is an environmental disaster, God forbid, we are saying there are grave consequences not only for Guyana but the Caribbean, given where the Liza wells are near the Caribbean Sea and our neighbouring countries,” he said.

Appellate Judges however ruled that the matter should be heard in the High Court before it reaches the Court of Appeal.

The matter was therefore reverted to the High Court for the Chief Justice to fix a date for the matter to start again before a Full Court.