EPA files appeal against High Court decision ordering Exxon to provide unlimited parent company guarantee to Guyana

May 10, 2023 News

---

Kaieteur News – The Environmental Protection Agency (EPA) has filed a Notice of Appeal against the High Court ruling that is in favour of Guyana receiving unlimited parent company guarantee from Esso Exploration and Production Guyana Ltd. (“EEPGL”) and its parent company, Exxon Mobil in the event of an oil spill.

Justice Sandil Kissoon last Wednesday ordered the EPA to issue an Enforcement Notice to Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, Exxon Mobil to ensure it provides unlimited parent company guarantee to safeguard Guyana against the devastating effects of an oil spill by June 10.

A written copy of ruling seen by this newspaper stipulates that failure to comply with the court order will result in the suspension of the environmental permit.
On Tuesday, a Notice of Appeal was drafted and filed by Attorney-at-law and People Progressive Party/Civic (PPPC) MP, Sanjeev Datadin.

In the document seen by this newspaper, the EPA is seeking to reverse the High Court decision on the grounds that the trial court erred in law in interpretation, consideration and application of the combined effect of Clause 14 of the Environmental Permit issued to EEPGL, and erroneously concluded that the financial assurance must be provided by EEPGL.

The EPA argued that the trial court erred in law and misconstrued the Environmental Protection Act and its Regulations to determine that the Appellant, a statutory body had specific statutory powers which in fact it did not.

The EPA argued too that the trial court erred in law and misconstrued the substance and effect and wrongly ascribed to it an interpretation superior to the Environmental Protection Act and thereby ascribed meaning to it which was expressly contrary to the specific provisions of the said Act and its Regulations.

Further, the EPA submitted that the trial court erred in law in directing and determining the exact manner of the exercise of the discretion of the EPA in a manner contrary to established law and practice.

In effect the EPA said that the trial court substituted its own discretion as the decision of the EPA when the Agency at all material times, had exercised its discretion and acted well within it statutory and regulatory powers.

As a result, the EPA seeks a stay of execution of the judgment of the Court as it contends that irreparable harm would be suffered by the nation’s economy.
Meanwhile, Director of the EPA, Kemraj Parsram in an affidavit inter alia said that he was advised that the grave disruption to the national economy coupled with the good prospect of success of the Appeal is sufficient for the court to grant of a stay of execution of the order and judgment of the High Court.

Parsram said that the court orders are quite coercive; including its mandate to the EPA to serve a statutory notice on EEPGL, and if no adequate response is received then the permit stands suspended.

According to the EPA Head, the judgment will have severe consequences and the direction of the Court has the effect of removing entirely the discretion of the agency.
He noted Guyana as a nation now earns billions of dollars annually from the petroleum activities conducted on the Liza 1 and Liza 2 fields; both are subject to the permit suspension or cancellation which will have a catastrophic effect on national funds for development and also the private sector which supports the activities on the said Liza 1 and 2 fields.

Last year President of the Transparency Institute of Guyana Inc (TIGI), Frederick Collins and another citizen, Godfrey Whyte, took the EPA to court to enforce a critical clause in the Liza Phase One renewed environmental permit that was issued to EEPGL.

The case was filed in the High Court on September 13, 2022 by Attorneys Seenath Jairam, SC, Melinda Janki, and Abiola Wong-Inniss. In the case, Mr. Collins, a former insurance professional said, “An oil spill would be devastating for our country and Region as many Guyanese and Caribbean peoples depend on the ocean for their livelihoods. That is why we have decided that the time has come to take matters to the court for relief.”

The litigants said that their resort to the court is to make sure that the company takes full financial responsibility in case of harm, loss and damage to the environment.
Last Wednesday, the High Court ruled in favour of the TIGI Head and Whyte granting them several reliefs requested.

---

• EPA, Exxon, High Court, Kemraj Parsram, oil spill, Parent Company Guarantee, PPPC

---