Stop approving oil projects until robust regulatory systems are established – Environmental Activist urges EPA boss

Mar 13, 2023 News

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…says Exxon choosing its own standards

Kaieteur News – Environmental and Human Rights Activist, Danuta Radzik, has urged the Environmental Protection Agency (EPA) to hold off on granting Environmental Permits to ExxonMobil for more oil projects until the requisite systems are put in place to adequately monitor and regulate the industry.

Radzik in a 16-page submission, addressed to the Executive Director of the EPA, Kemraj Parsram on the Environmental Impact Assessment (EIA) submitted by Exxon for the fifth oil project, Uaru, said the document submitted by the oil company’s Consultant, Acorn International, exposes the lack of an established regulatory mechanism in Guyana, particularly as it relates to waste materials and chemicals associated with offshore production activities.

Radzik in her letter to the EPA, dated March 8, 2023 points out that after more than three years of operation at the Liza One project and almost eight years after the discovery of hydrocarbons in commercial quantities, the nation is yet to implement laws to hold petroleum companies accountable for their actions.

She said, “Guyana as a country has failed to pass legislation and adequate regulations for standards to which oil and gas companies can be held legally accountable, has not developed independent ability to monitor and ensure safe practices, and has failed to produce verifiable monitoring information that can be used for more accurate and relevant EIA studies since Liza One.”

Radzik is adamant that Exxon’s Uaru EIA “supports the case that the EPA should stop processing permits for offshore oil and gas production, until Guyana as a country has both the legal and technical capacity in place to manage impacts and regulate the industry.”

The activist cautioned that in the absence of Guyana’s capacity to regulate the sector, oil companies enjoy the role of both operator and regulator, with a wide discretion for voluntary industry standards that do not often adhere to the stringent protection standards in international guidelines.

For instance, Radzik noted, “The global standard for the oil in produced water discharges is a daily maximum of 30 ml whereas ExxonMobil is being permitted a maximum of 42ml, while best practice and technology recommend that these be at zero levels. The produced water should be reinjected into appropriate reservoirs and wells according OSPAR, IFC World Bank and International Association of Oil and Gas (IOGP), and the European Commission on Best Available Techniques (BAT) on Upstream Hydrocarbon Exploration and Production.”

The environmentalist has requested that the Environmental Assessment Board (EAB) convene a public hearing on the Uaru EIA, which she said has been reportedly submitted without Exxon’s signature, meaning no proof that the company accepted responsibility for the study.

She told Parsram in her missive, “As you are aware, the only meetings held on this EIA were organized and controlled by the company, whose interest is to promote the project. Relevant and critical questions asked at those sessions did not meet with satisfactory answers. The Environmental Protection Act does not foresee that a company would be interfering in the public’s 60-day comment process on EIAs afforded under the Act.”

Radzik noted that Exxon’s consultation process that was voluntarily organized with EPA’s support and the EIA study in many cases failed to gather and present information relevant for an adequate assessment of impacts.

Danuta Radzik has worked for over 30 years on gender justice, prevention, protection and response to gender based violence, Trafficking in Persons (TIP) and laws and policies on Gender Based Violence. She also plays a role in Non-Governmental Organizations in the area of counselling, advocacy, project coordination, education, monitoring and evaluation in migrant and TIP issues.

Additionally, she is active in networks of civil society organizations on advocacy and action against women, gender and child abuse, including child sexual abuse and LGBTIQ, disability and migrant discrimination.

New oil policies

In January this year, Kaieteur News reported that the Ministry of Natural Resources will be pursuing a suite of activities for 2023, all in an effort to ensure better management of Guyana’s oil resources. According to Natural Resources Minister, Vickram Bharrat, some of these works will include the implementation of an Upstream Oil and Gas Policy and Strategy.

This document is premised on a broad objective of attracting and securing investments in upstream exploration activity, and effectively outlining how the industry is to be regulated to ensure sustainable economic development.

Meanwhile, the Ministry in its Energy Brief, issued to the press last month explained that the Petroleum (Production) Act Petroleum (Exploration and Production, E&P) Act was listed among four legislations that were identified for review and enhancement.

It was stated that the Government seeks to modernise its legal and regulatory framework as it relates to the petroleum sector to address issues such as oil revenue management, licensing, Production Sharing Agreement models, local content, and Health, Safety, Environmental and Security (HSES) management.

According to the ministry’s brief, the result would be maximising the economic benefits to the country, improve management of the technical, environmental, social and financial risks linked to the sector and building capacity to engage effectively with investors.

The other legislations to be reviewed and enhanced include the Guyana Geology and Mines Commission Act, the Mining Act and the Environmental Protection Act Occupational Safety and Health Act. Also mentioned was the Upstream Legal Requirements for Petroleum and a Model Production Sharing Agreement.

 

 

 

 

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• EIA, oil, Projects, regulate, Uaru

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