Litigants yet to see Exxon’s US$2B parent company guarantee despite requests to court, other agencies

Dec 24, 2023 Court Stories, ExxonMobil, Features / Columnists, News, Oil & Gas

Kaieteur News – Two Guyanese who have made numerous requests through their lawyers to see ExxonMobil Guyana’s US$2 billion parent company guarantee continue to hit a brick wall.

The litigants, Frederick Collins and Godfrey Whyte, had filed a case back in September 2022 so that the Environmental Protection Agency (EPA) can be ordered to secure from Exxon Guyana, an unlimited liability coverage for oil spills. In so doing, Guyana would be fully protected from any hidden costs associated with an unmitigated spill from one or more projects in the Stabroek Block.

On May 3, 2023, High Court Judge, Justice Sandil Kisson ruled in favour of the litigants and ordered the EPA to secure an unlimited parent and/or affiliate company guarantee for oil spills. To circumvent compliance with that order, Exxon and the EPA through their lawyers, appealed and were successful in staying Justice’s Kissoon’s decision. Pending the final outcome of the appeal, Justice Persaud ordered Exxon to lodge a US$2 Billion parent and or affiliate company guarantee. Since that order was issued on June 8, 2023, the litigants said their lawyers which include Seenath Jairam SC, leading Melinda Janki and Abiola Wong-Innings have been unable to secure a copy of the said guarantee for perusal.

Kaieteur News understands that Attorney-at-Law, Melinda Janki wrote several letters to the lawyers for the EPA and Exxon requesting a copy of the US$2 Billion guarantee but none was produced. In fact, requests were also made to the Registrar of the Supreme Court and the Court of the Appeal but these efforts did not bear fruit.

In light of the foregoing, Kaieteur News understands that a summons was filed on November 1, 2023, for orders directing the EPA and Exxon to produce a copy of the US$2billion guarantee.

In the summons seen by this newspaper, Collins said, “I am advised by my Attorney-at-Law, Melinda Janki, and do verily believe that over the course of four months, she has consistently and persistently sent four (4) unanswered communications, copying all the parties’ representatives, to the Court’s Registrar requesting a copy of the said Order and the reasons associated with same…”

Given the failure to see the document, Collins said, “I, in particular feel that we have been gravely denied justice and I feel hurt that after such interminable delays in a relatively straightforward matter we encounter obstacles in our way obstructing our progress in a public interest matter before the hierarchy of courts in Guyana…”

He further noted that in the absence of any evidence in the court record that Exxon has lodged the guarantee, the company is therefore in contempt of court, and the original order issued on May 3, 2023 by Justice Kissoon, is reinstated.

While the matter languishes and the remedy already granted is inhibited by the stay handed down by Justice of Appeal, Rishi Persaud, Collins said Guyana remains on the hook for all costs of clean-up, restoration and compensation which Exxon cannot meet.

He reasoned that such a massive expense is a direct threat to Guyana’s economic viability, particularly in light of the uncooperative and evasive responses from the attorneys-at-law for Exxon and the EPA and their failure to provide a copy of the said US$2 billion guarantee.

Collins said history has shown and is replete with examples that in the petroleum industry, where operations are by definition based on an inherently hazardous resource, then spills, well blowouts and other accidents do occur. Those incidents result in widespread pollution and contamination which cost billions of US dollars to mitigate or “remedy”. He said the risks are even more severe and present an even more dangerous situation.

Accordingly, Collins said Guyana’s economic viability and future are at stake and urged that the summons be given an early hearing.