EPA’s unlawful conduct, lax regulation would implicate the US in any resulting harm from gas project- Int’l lawyer tells US EXIM Bank

Dec 18, 2024 News

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Kaieteur News- International Lawyer, Melinda Janki in an 11-page submission to the United States Export Import (US EXIM) Bank has warned that Guyana’s Environmental Protection Agency (EPA’s) unlawful conduct would implicate the country in any resulting harm, associated with the Gas-to-Energy (GTE) project.

Back in April 2023, it was revealed that Guyana made an application to the US EXIM bank for a US$646M loan to support the Natural Gas Liquids (NGL) facility and the 300-megawatt gas-fired power plant- two components of the venture.

American oil major, ExxonMobil is constructing a 12-inch diameter pipeline that will transport gas from the Liza Fields to power the two plants.

The US EXIM Bank had opened a comments period for feedback on the project. Janki has pointedly asked the Bank not to provide financing to Guyana for the gas plants. In her submission, the Lawyer pointed out that safety in petroleum operations requires a strong regulator and strict enforcement of applicable rules and standards.

She said, “A lax regulator in Guyana not only imperils Guyana and neighbouring states but unnecessarily puts in danger the lives of workers, including Americans, employed in Exxon’s petroleum operations offshore Guyana.”

Janki went on to explain that in 2023, a national court described the regulator as a “derelict, pliant and submissive Environmental Protection Agency” which had abdicated its responsibilities putting Guyana at risk of a “calamitous disaster”.

Further, the court also criticised the EPA for “adopting a stance of avoidance, concealment and secrecy” and acting “in unison” with Exxon, the Attorney-at-Law noted, while the former Executive Director, Dr. Vincent Adams described the EPA as “abysmal”.

Meanwhile, Janki highlighted that the associated gas will be brought to shore via a pipeline. She informed the US EXIM Bank that in 2023, in a legal challenge to the pipeline brought by two citizens, a national court said that the EPA’s decision to grant Exxon an environmental permit for the pipeline was, “contrary to law and improper.”

The EPA has exempted the gas plant and associated infrastructure from an Environmental Impact Assessment (EIA). “This is contrary to national law which requires an EIA for every project which may significantly affect the environment. Unless there is an EIA for the gas project it is impossible to identify the danger to people and the environment and ensure that the EPA imposes proper conditions on construction and operation to mitigate that danger,” the Lawyer argued.

She pointed out that a portion of the pipeline is in water that is over a mile deep, with no technology which can monitor the structure in real time to detect leaks.

To this end, she cautioned, “An Eximbank loan for the gas project with knowledge of the EPA’s unlawful conduct and lax regulation would implicate the United States of America in any resulting harm.”

16,000 Americans object to loan

While the Guyanese award-winning international Lawyer has requested the US EXIM Bank to refuse the loan application by Guyana, 16,000 Americans had also written to Chair of the United States Export-Import Bank, Reta Jo Lewis demanding the financial institution not to fund the controversial gas project.

According to a letter from 16,452 members of Friends of the Earth United States, a non-governmental organization, the project is both a disaster for Guyana and the climate.

They said, “This project is both a disaster for Guyana and the climate! The U.S. government should not be using taxpayer dollars to subsidize Exxon – a company that has recently reported billions in profits.”

The advocacy group in the missive issued in May 2024 went on to point out that studies done indicate that the gas project is not necessary as solar panels could provide a cheaper alternate of power generation. According to the letter, “This fossil fuel project in Guyana is not even close to necessary. Some analyses have shown that installing solar panels would meet the energy needs of Guyanese communities. Moreover, it would cost less to build, reduce bills for ratepayers, generate local jobs, and fight the climate crisis.”

The letter also pointed out that “This project will help increase the world’s dependence on fossil fuels and make limiting global warming to 1.5°C even more difficult.” and that “greedy companies [like] ExxonMobil will get even richer!”

The activist group noted that the letter was sent in solidarity with Guyanese citizens who are opposing the gas project on multiple grounds including the failure to carry out an environmental impact assessment for the gas plant; the lack of a business case; the lack of any financial information showing how spending billions of US dollars would deliver ‘cheap’ electricity; the failure to comply with national law and environmental risks involved with the project.

(EPA’s unlawful conduct, lax regulation would implicate the US in any resulting harm from gas project- Int’l lawyer tells US EXIM Bank)

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• EPA, gas, GTE project, Janki, loan, US-EXIM bank

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