EPA increases flaring penalty for ExxonMobil

Sep 04, 2021 News

– Already collected $400M from oil giant

By Kiana Wilburg

Kaieteur News – Head of the Environmental Protection Agency (EPA), Mr. Kemraj Parsram disclosed on Thursday that the flaring penalty for ExxonMobil has increased from US$30—per tonne of Carbon Dioxide equivalent released—to US$45. The official made this known during an interview on Kaieteur Radio’s programme, Guyana’s Oil and You.

EPA Head, Kemraj Parsram

There, Parsram disclosed that the EPA has already received $400M penalties from ExxonMobil. He was keen to note that the fine was increased as of July since ExxonMobil is still flaring, though at significantly reduced levels. In fact, Parsram noted that ExxonMobil was flaring 15 million standard cubic feet of gas per day but this is now down to six million standard cubic feet of gas per day.
The EPA Head said, “The EPA and by extension the government’s policy is zero routine flaring. Flaring is only permitted in circumstances where it is necessary to ensure safety and in cases if emergencies occur. We know there are issues with the compressor (for the Liza Destiny vessel) and we have been working with the operator (ExxonMobil).”
Parsram was keen to note that ExxonMobil has, and continues to show, efforts in addressing and meeting compliance. Based on the information provided thus far to the EPA, Parsram said ExxonMobil is expected to reach pilot level flaring by yearend, which is one million standard cubic feet of gas per day or less. The EPA Head said he finds this to be a reasonable timeline while adding that there have been noticeable improvements and also the willingness of the operator to make every effort to comply. He added, “The important thing is not so much how much money or how many applications have been made but rather that there is real effort at achieving compliance and a clear plan to solving the issue.”
It was in May when Kaieteur News reported that the EPA amended the Liza Phase One Environmental Permit to have ExxonMobil’s subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) pay US$30 for every tonne of Carbon Dioxide equivalent (CO2e) – a term for describing different greenhouse gases in a common unit – burnt after May 13, 2021.It is significant to note that ExxonMobil was projected to exceed flaring 14 billion standard cubic feet of gas by May 13, 2021 in its Liza Phase One Environmental Impact Assessment (EIA). In light of this, the EPA said it had engaged EEPGL to amend the Liza Phase One Permit.
Kaieteur News understands that EEPGL had agreed to the changes which include: 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 modified Permit was signed subsequently between the two parties.
Extensive research conducted by Kaieteur News shows that gas flaring contributes to climate change, which has serious implications for the human security and wellbeing globally. In fact, the Department of Mechanical Engineering at the University of Ibadan, Ibadan, Nigeria, outlined in one of its studies, that gas flaring is actually a major source of greenhouse gases, which accelerates global warming.
It was noted that flaring releases Carbon Dioxide and Methane, the two major greenhouse gases. Of these two, Methane is actually more harmful than Carbon Dioxide. It is also more prevalent in flares that burn at lower efficiency.
Of the greenhouse gases researched so far, Kaieteur News understands that the global warming potential of a kilogramme of Methane is estimated to be 21 times that of a kilogramme of Carbon Dioxide when the effects are considered.
The University of Ibadan study also noted that flaring contributes to local and regional environmental problems, such as acid rain with attendant impact on agriculture, forests and other physical infrastructure. The acid rain results in environmental degradation, which includes soil and water contamination and roof erosion.
Furthermore, there have been over 250 identified toxins released from flaring including carcinogens such as benzopyrene, benzene, carbon disulphide (CS2), carbonyl sulphide (COS) and toluene; metals such as mercury, arsenic and chromium; sour gas with Hydrogen Sulfide (H2S) and Sulfur Dioxide (SO2); Nitrogen oxides (NOx); Carbon dioxide (CO2); and methane (CH4) which contributes to the greenhouse gases.

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