Court case challenging Gas-to-Energy permit for hearing this week

May 09, 2023 News

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Kaieteur News – The first hearing of a legal challenge against the Environmental Protection Agency (EPA), permit granted to ExxonMobil Guyana (Esso Exploration and Production Guyana Limited- EEPGL) for the construction and operation a 12-inch natural gas pipeline, will take place on Thursday in the High Court.

The pipeline is a component of the Guyana Government’s Gas-to-Energy (GTE) Project and was authorised by the EPA on November 25, 2022.  Two citizens, Elizabeth Deane-Hughes and Vanda Radzik on March 27, 2023 filed the proceeding through their lawyers, Melinda Janki, Abiola Wong-Inniss and Joel Ross.

The citizens are seeking an Order of Certiorari to quash the decision made by the EPA to award an Environmental Permit to EEPGL – ExxonMobil Guyana to undertake the GTE project activities, on the grounds inter alia that the decision was in breach of the provisions of the Environmental Protection Act (Cap. 20:05), and more particularly, the Environmental Protection (Authorisation) Regulations.

The citizens argue that the decision to grant the Permit to Exxon was “unauthorised and contrary to law, in excess of jurisdiction, failure to satisfy or observe conditions or procedures required by law, unreasonable, irregular or improper exercise of discretion, abuse of power, conflict with the policy of the Act, error of law (and) breach of/ omission to perform a duty.”

The applicants are therefore seeking a declaration that the respondent acted in breach of the Environmental Protection (Authorisation) Regulations; a declaration that the Permit is null, void and of no legal effect with costs and such further order the Court considers just. In their application to the High Court, Radzik and Deane-Hughes stated that Pursuant to Regulation 17 (2)(c)(iii) of the Environmental Protection (Authorisation) Regulations, an application for an environmental authorization must contain “proof that the applicant either owns the facility or has a lease or other agreement with the landowner or occupier to enable the applicant to conduct the activity without the consent of the landowner or occupier.”

The citizens outlined that ExxonMobil Guyana in its application, dated June 24, 2021 includes details of the project site, the proposed route of the pipeline and the areas to be used and affected by the project, which includes residential properties, commercial properties and state-owned properties. Be that as it may, the application did not include or provide any proof of ownership, a lease or other agreement with the land owners of the said area. Notwithstanding, the EPA granted EEPGL a Permit to undertake the project on November 25, 2022. Subsequently, the Minister of Public Works, Juan Edghill in January 2023 passed various orders to acquire lands for the purpose of the project, pursuant to the Acquisition of Lands for Public Purposes Act, Chapter 62:05.

According to the Application filed in the High Court by the citizens, “Regulation 17 (2) of the Regulations requires Esso to submit proof that it either owns or has a lease or other agreement with the landowners or occupiers of the lands which will be affected by the Project, prior to the issue of the Environment Permit.”

As such, the Applicants have applied to the High Court to review the EPA’s decision and to uphold the rule of law and public rights to scrutinize the actions of a public authority and to safeguard the health, welfare, and sustainable existence of the people of Guyana.

Only last week High Court Judge, Justice Sandil Kissoon handed down a ruling against the EPA, in which he said the regulator “relegated itself to a state of laxity of enforcement and condonation compounded by a lack of vigilance thereby putting this nation and its people in grave potential danger of calamitous disaster.”

The Judge was at the time pronouncing on a case brought against the EPA by two Guyanese citizens who had approached the Court get the EPA to enforce a critical clause, Condition 14 in the Liza Phase 1 Environmental Permit (Renewed) issued on May 31, 2022 to EEPGL. That provision says ExxonMobil Corporation, the parent company for EEPGL, must cover costs for all environmental loss and damage that might result from a well blowout, oil spill or other failure in the Liza Phase One Development Project in Guyana’s Stabroek Block.

The judge granted a declaration that the EPA is in breach of its statutory duty by its failure/ omissions to enforce compliance by the oil company with its financial assurance obligations as stipulated by clause 14, to provide an unlimited parent company agreement and/ or affiliate company guarantee agreement to indemnify and keep indemnified the agency and the government against all environmental obligations of the EEPGL and its partners in the Stabroek Block.

Moreover, an Order of Mandamus was granted and directed to the EPA to issue an Enforcement Notice pursuant to Section 26(1) and (2) of the Environmental Protection Act, on or before May 9, 2023, directed to EEPGL to perform its obligations under condition 14 of the renewed environmental permit and to provide, within 30 days thereafter, on or before June 10, 2023 the unlimited liability Parent Company Guarantee Agreement and/or unlimited liability Affiliate Company Guarantee.

 

 

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• Challenge, court, EPA, gas, pipeline

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