Attorney flays Govt. over lack of regulations for gas-to-shore project

Jun 14, 2022 News

Kaieteur News – It appears as though United States oil major, ExxonMobil will be creating and adhering to its own standards in the development of the gas sector, as it has been doing with the ongoing oil operations, in the absence of sound regulations and guidelines.

Attorney-at-Law, Elizabeth Deane-Hughes

Attorney-at-Law, Elizabeth Deane-Hughes in a recent interview with Kaieteur News, pointed to the grave dangers Guyana is exposed to as a result of such fundamental steps not being taken by government. She said: “it’s a pity that the nation is not being informed by either party (government or Exxon) of the governing laws and its regulatory framework. Three reminders on questions to Attorney General have remained both unacknowledged and unanswered.” Deane Hughes had written to AG, Anil Nandlall since April 15, last.
The attorney said that while her questions about the regulatory framework to Minister of Natural Resources, Vickram Bharrat were acknowledged, there has been no response to her specific concerns. “What does silence really mean to the wellbeing and protection of us Guyanese? Recently in United States of America there was a massive gas explosion and they have regulations. What will happen to us who are going in before the fact with none?”
Presently, ExxonMobil through its subsidiary- Esso Exploration and Production Guyana Limited (EEPGL) is seeking approval to start transporting gas from the Liza Fields in the Stabroek Block to Wales on the West Bank of Demerara. The gas will then be utilized by the government to hopefully generate some 300 megawatts of electricity.
ExxonMobil Guyana will be responsible for the pipeline aspect of the venture, which will cost some US$1.3 billion that will be recovered from oil revenue. Importantly, the Environmental Impact Assessment (EIA) submitted to the Environmental Protection Agency (EPA) points out that gas leaks are likely to occur. But even though this is listed as a likely event, the oil company has not submitted a Gas Leak Management Plan to the EPA to consider, even as the regulator body gears up to grant an approval or rejection for the development. It must be noted that industry experts have already said that this document must accompany the EIA as a gas leak is the most obvious impact of such a project which therefore warrants a response plan by the developer.
With no Gas Leak Management Plan, Exxon has also been given another ‘wild card’ as it continues to ignore Guyana of any insurance should such an unfortunate event take place as a result of the project. The oil company’s Project Manager, Friedrich Krispin has merely assured that Exxon and its partners will not walk away from any incidents.
Taking these into account, the Attorney insisted that the Wales Gas to Energy project be put on pause, until the necessary foundations have been laid. For instance, she said Guyana must put sound laws and regulations in place for Exxon to adhere to, even before the company celebrates its project approval. Deane-Hughes was keen to note that in the absence of environmental safeguards from the company, Guyana must ensure it institutes tough guidelines so that Guyana is not saddled with additional burdens.
In the oil sector, Kaieteur News has reported on numerous occasions that ExxonMobil has been setting its own standards and choosing which best practices it will adhere to.
For instance in light of the fact that Guyana has no standards for flaring, EEPGL will be following its own rules for the Yellowtail Project, the fourth development which was approved only in April of this year.
Expounding on this front in its EIA for the project, the subsidiary said it “considered” World Bank standards as well as the internal ExxonMobil environmental standards “as references.”
EEPGL was keen to note that the World Bank has established guidelines for offshore oil and gas development, which serve as “a technical reference document” with examples of good environmental practices. It said the offshore oil and gas development guideline states that new facilities should be designed, constructed, and operated, so as to avoid routine flaring of associated gas.
The guideline also stated that methods to control and reduce fugitive emissions should be considered and implemented in the design, operation, and maintenance of offshore facilities and LDAR (Leak, Detection and Repair) programmes should be implemented.
EEPGL noted as well some of the provisions related to flaring in the Payara Environmental Permit, as issued by the Environmental Protection Agency (EPA) in 2020. Some of the provisions state that EEPGL must ensure all reasonable attempts are made to implement appropriate methods for controlling and reducing fugitive emissions in the design, operation, and maintenance of offshore facilities and to maximize energy efficiency and design facilities for lowest energy use, with the overall objective to reduce air emissions; operate all mechanical equipment in accordance with the manufacturer’s specifications; and note that routine flaring and venting is strictly prohibited (excludes tank flashing emissions, standing/working/breathing losses, low pressure streams) during any developmental drilling or production activities without EPA approval.
To this end, the Shadow Oil and Gas Minister, David Patterson has concluded that Exxon has free reins over Guyana. He explained that Guyana is presently in a bad shape, as it is depending on the developer to report instances of flaring, oil spills, waste water treatment, and adherence to other aspects of the permit, including resolving complaints it received from the public, all without proper independent oversight.
Patterson said, “It is self-regulating. They have become their own judge, jury (and) executioner by just reporting to the EPA what is happening. We have always said that the EPA or any of the other agencies should not be depending on Exxon to report issues, and this arose after Exxon’s representative said only a teaspoon of oil has been spilled but that should not be coming from Exxon. We should be the one there, the EPA should be there monitoring all the systems independently to determine all these things.”