TIGI Head files cross appeal against EPA’s move to reverse court decision on parent company guarantee

May 12, 2023 News

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Kaieteur News- President of the Transparency Institute of Guyana (TIGI), Mr. Frederick Collins has filed a cross appeal against the move taken  by the Environmental Protection Agency (EPA) to have  a High Court decision made for Exxon Mobil subsidiary’s Esso Exploration and Production Guyana Limited (EEPGL) provide its parent company guarantee in the event of an oil spill reversed.

High Court Justice,  Sandil Kissoon had issued an order for the EPA to send out an Enforcement Notice to Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, Exxon Mobil to ensure it provides unlimited insurance coverage to safeguard Guyana against the devastating effects of an oil spill by June 10, 2023.

However, the EPA filed an appeal against the ruling stipulates that failure to comply with the court order will result in the suspension of the environmental permit. The EPA, among other things, is asking the Appeal court to stay or suspend the order.

In his cross appeal which was seen by this newspaper, Collins said that he is advised by his team of lawyers that it is trite law- that to obtain a stay of execution pending an appeal an applicant must satisfy the court that the appeal has a good prospect of success.

The appellant said, “I believe that this appeal does not have a good prospect of success since the judgment was based on the clear and simple wording of the Esso Permit that Esso is responsible for ‘all’ costs and that Esso must provide financial assurance…”

He continued, “There are special circumstances which would exceptionally justify a stay in a matter such as this where the issue is not about a money judgment but in the national interest as well as the justice of the case.”

Further, he claimed, “the summons is vague and lacking merit or substance.”

Collins stressed that the justice of the case requires that no stay be granted as the obligation on the part of Esso in Condition 14 of the said environmental permit which had been agreed to by Esso and by its President, Mr. Alistair G. Routledge is simply a cost of doing business.

As a result, Collins said that the impact of a stay could be catastrophic.

The TIGI Head noted too that “If there is an oil spill, the environment of Guyana and its neighbouring territories, the people and taxpayers of Guyana and the Government of Guyana, will suffer irreparable damage and therefore the risk of injustice in granting a stay will be greater, than in refusing a stay.”

A stay of the Order of Mandamus as requested by the EPA would benefit Esso and transfer the risk from Esso and ExxonMobil Corporation to Guyana. There are some risks that should not be taken. The risk of a catastrophic event such as an oil spill is one such risk.

He explained that, “If the unthinkable occurs and there is an event resulting in the release of hydrocarbons or contaminants in the course of the operations, the consequences will be devastating not only to the citizens of this land and the environment but to inhabitants of neighbouring states and territories as well.

He stated that, “If such an event occurs and there has been non- compliance with the obligations contained in Condition 14 by EEPGL, then the potential consequences are elevated and borders on catastrophic.”

According to Collins, every day that Esso operates without the financial assurance being in place is a day in which Guyana could be liable for billions of US dollars.

He said too that it is well known that Esso has been using faulty equipment, that Esso has been operating its Floating Production Storage Offloading (FPSO) vessels above the safety limits and that Esso’s maps show that an oil spill could reach Jamaica.

It is his view that  that the EPA’s focus Affidavit appears to be misplaced as it appears to be concerned, guided and focused on the continuing economic sustainability of Esso’s petroleum activities instead of on the EPA‘s exclusive statutory mandate to ensure compliance by Esso with condition 14 of the Esso Permit.

“The EPA makes inflated, illogical, and spurious assertions about severe disruption to Guyana’s financial well-being and economy and that suspension of the permit will have a “catastrophic impact on national funds”. In fact, and on the contrary, it is the stay which could have a catastrophic effect on national funds and Guyana’s financial status,” Collins stated.

 

 

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• EPA, Esso Exploration and Production Guyana Limited (EEPGL), Frederick Collins, Transparency Institute of Guyana (TIGI)

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