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EPA relying on Exxon estimates to determine amount of gas flared
…after disbanding World Bank funded team to monitor emissions
Kaieteur News – The Environmental Protection Agency (EPA) on Tuesday last, renewed the Environmental Permit for production of crude oil and associated gases from the Liza I oil field in the Stabroek Block by operator, Esso Exploration and Production Guyana Limited.
Former EPA Head, Dr. Vincent Adams
In making the announcement, the EPA said it had increased the fine charged for flaring up to US$50—from US$45—for every tonne of carbon dioxide emitted through that process.
A perusal of the renewed permit illustrates however, that it is EEPGL, ExxonMobil’s subsidiary, that would be providing an ‘estimate’ of the amount of carbon dioxide flared for which a fine must be paid.
Under the provisions in the renewed permit that addresses flaring, it outlines that “the permit holder shall estimate GHG (Green House Gas) emissions include Carbon Dioxide (Co2) and CO2e emissions…”
Additionally the permit holder shall “estimate and report all GHG emissions,” and shall also summarise and report to the agency, the considerations made to estimate the volume of GHG emissions.”
The recently approved Liza 1 permit including the flare charge was described by the former environmental agency head, Dr. Vincent Adams as, “an insult to the Guyanese intelligence,” especially since he claimed that measures he implemented to create a highly skilled team to provide 24/7 monitoring against flaring onboard the Floating Production Storage and Offloading vessel was removed by the current administration.”
He disclosed that since the idea was to stop flaring all together as per the rules in the Liza 2 permit, his position during his time at the EPA was that the gas should be injected back into the reservoir.
The Liza Destiny FPSO
Additionally, Adams noted, the four million cubic feet of gas being flared is being described as only two or three percent, “and they keep talking about the two percent because it is a small number. Two percent sounds small. But its four million cubic feet a day; that is the lowest they have gotten,” Adams reported. And this is onboard Liza one alone since the information for Liza 2 is not yet available.
In relation to monitoring, Adams recalled accessing sponsorship from the World Bank to the tune of a million dollars for the verification of flaring amounts.
He said the Bank brought in an expert with whom he sat along with a more than 30-man team of highly specialized petroleum and environmental persons, “to be on those ships 24/7”.
This move, according to Dr. Adams, was critical to ensure the monitoring of the unhealthy practice. That is how it is done in the petroleum industry in the US, and Adams said that is how he wanted it done here in Guyana, to have that same type of monitoring. It is important to be on the ship, Adams continued because the oil companies will say one thing but do another to protect their interest.
But Adams said as soon as he left, the government abandoned the monitoring initiative, “even though the World Bank spent a million dollars to help put together that team, they abandoned that program and said they don’t need that program.”
He said that the World Bank and the EPA both have documentation on the 36-man team, their qualifications, experiences, among other information. The team would have entailed high-powered petroleum and environmental engineers, some of whom would have come from aboard. All of this was budgeted for at the time, Adams said.
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