Exxon’s US$2 billion oil spill guarantee is not in place or fails to meet the threshold – David Patterson

Jan 28, 2024 ExxonMobil, News, Oil & Gas

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…as EPA continues to hide document

Kaieteur News – The continued reluctance by the Environmental Protection Agency (EPA) to provide proof of the US$2 billion oil spill guarantee reportedly submitted by American oil major, ExxonMobil continues to spark concern among stakeholders.

Former Minister of Public Infrastructure and the Alliance For Change’s (AFC’s) point-man on the oil and gas sector, David Patterson said this unwillingness of the agency should concern all citizens, especially since the guarantee was ordered to be in place by the Court.

He said, “This can only mean one of two things, either it is not in place or the conditions included in the bond do not meet the required threshold.” Patterson continued, “By the required threshold, I mean that it may not cover all perils that the people would expect it to. It may have some clauses which can cause outrage that may state “only acceptable accidents” as reported by Exxon Head.”

The former Minister said it is bizarre that the EPA’s Lawyer, Sanjeev Datadin one day insisted that the guarantee is available and can be viewed by the public at the agency’s office, but the very next day, he advises that the document be kept under lock and key until a decision is made by the Court.

Patterson reasoned, “What exactly do they have to hide? A bond is a simple document; however, maybe the conditions contained in this bond may be vague and unenforceable.”

He said, “It is unfortunate that the government is supporting Exxon and the other operators to leave Guyana exposed and in peril should there be an oil spill.”

The former Minister said the AFC will continue to press for full liability coverage to protect the nation from the financial burdens of oil spills.

On Friday, the EPA via a public statement, said the guarantee lodged by Exxon will not be publicized until the Court makes a ruling. It said, “…the matter in question is subjudice, meaning that it is currently under judicial consideration. Therefore, until a judgment is given by the court, the EPA will not make the said document public.”

It added that the agency continues to be guided by the Environmental Protection Act Cap 20:05 as to what information it is mandated to make available to the public.

The statement came following a visit by Kaieteur News on Thursday to the EPA’s Ganges Street, Sophia, Georgetown office to view the document, following the assurance by Datadin that any citizen can view the document at the agency.

He was at the time responding to the Opposition Member of Parliament (MP), Shurwayne Holder who told the House on Tuesday that no patriotic government would refuse to make Exxon’s financial package for oil spills public so that citizens can feel a sense of security.

“They (the EPA) are required to keep a register, a ledger of all those documents submitted and it is available for anyone, including the Honourable Member Mr. Shurwayne Holder to go to their office between normal business hours and he will be allowed to see it,” said Datadin.

Despite this assurance, Kaieteur News was denied access to the document and was instead urged to send a formal request to the agency. MP Holder had also issued a request to the EPA on Friday morning in a bid to view the guarantee.

This is the latest dead-end citizens have met in their efforts to ensure the Court’s order was complied with, by the operator of the Stabroek Block.

Two citizens, Frederick Collins and Godfrey Whyte, had filed a summons in December to see the US$2B guarantee following failed attempts to view a copy of the guarantee.

The litigants had filed a case back in September 2022 so that the EPA can be ordered to secure from Exxon Guyana, 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 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 have been unable to secure a copy of the said guarantee for perusal.

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• guarantee, oil, Place, spill, threshold

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