EPA shamefully omitted sections Exxon Permit to argue against unlimited parent company guarantee for oil spills- Dr. Adams

Dec 20, 2024 News

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Kaieteur News- Former Executive Director of the Environmental Protection Agency (EPA), Dr. Vincent Adams has called out the regulator for “shamelessly” omitting a portion of the Liza Two Permit in a statement last week arguing the absence of a provision requiring an unlimited parent company guarantee.

In a press statement on December 11, the EPA challenged Dr. Adams to confirm whether there was an Agreement signed by him and ExxonMobil, where an unlimited parent company guarantee was required to be provided.

The EPA quoted a section of the Liza Two Permit which address oil spill coverage. It said, the permit states under section 12.5 “The permit Holder must, as soon as reasonably practicable, provide from the Parent Company or Affiliate Companies of Permit Holder and its Co-Venturers (‘Affiliates”) one or more legally binding agreements to the EPA, undertaking to provide adequate financial resources for the permit holder and its Co-Venturers to pay or satisfy their respective environmental obligations regarding the Stabroek Block…”

In his response on Thursday, Dr. Adams said that the EPA failed to state the entire clause. To this end, he pointed out that the full clause without omissions is, “The permit Holder must, as soon as reasonably practicable, provide from the Parent Company or Affiliate Companies of Permit Holder and its Co-Venturers (‘Affiliates”) one or more legally binding agreements to the EPA, undertaking to provide adequate financial resources for the permit holder and its Co-Venturers to pay or satisfy their respective environmental obligations regarding the Stabroek Block if EEPGL or its Co-Venturers fail to do so”.

As such, the former EPA boss argued, “As all can see with your own eyes, the last nine words, “if EEPGL or its Co-Venturers fail to do so” representing the essence of the Guarantee, were dishonorably omitted in EPA’s citation to bolster its shameful lie and deceive the public.”

Dr. Adams argued that it is unimaginable that Government officials would so barefacedly lie to the public, in spouting “sheer madness” that “nowhere in the permit (Liza 2) signed by Dr. Adams is there any reference for unlimited parent company guarantee”.

He was keen to point out that the clause was proudly crafted by him on behalf of the EPA and people of Guyana and first enshrined in the Liza Two permit since April 2019, was copied word for word into all subsequent permits issued by the same body.

Further, the Environmental and Petroleum Engineer pointed out that almost daily for the past four years, the same EPA was being schooled by the news media and local and international experts.

Moreover, Dr. Adams said, “Their own boss-man Vice President Bharrat Jagdeo regularly chides the deficient original Liza 1 permit (devoid of the Guarantee) signed by Mr. Khemraj Parsram as the worst permit ever, while he embraces the Guarantee clause I crafted in the Liza 2 permit to fix the deficient Liza One permit, when he declared publicly in various media forums that “yes, full liability coverage (insurance plus unlimited parent company guarantee) is in all of the permits…it is by law they have to do this…that is an obligation…they are liable for any oil spill by law and the EPA for full coverage”.

He was keen to note that the EPA was sued and lost in the High Court for going against its own permit, with Justice Sandil Kissoon adjudicating the clause to mean that “The Permit Holder…is mandated to provide insurance …and provide a further financial assurance of an unlimited parent company guarantee to indemnify the Government against all liabilities.”

The former EPA boss explained that the full clause in the Permit, which the EPA claimed did not require an unlimited parent company guarantee, simply means that if the child company – EMGL’s insurance is inadequate- (fail to do so) to cover an oil spill, then the Parent Company – Exxon and Affiliates – have to provide further financial resources (the Guarantee) to cover the remainder.

He said this is as simply put by the Judge that, “there is no hurdle to the unlimited guarantee…the Permit Holder is mandated to provide insurance and financial assurance of an unlimited parent company guarantee to indemnify the Government against all liabilities…and if the Guarantee is in place, and there is the release of hydrocarbons then EMGL, to the extent that it is unable to do so (EPA’s omission) as it is largely an assetless subsidiary, then EXXON, the Parent Company comes into play. If, however, that event occurs and there is no unlimited parent company guarantee, then the State is liable for all that occurs.”

Dr. Adams concluded that the sad truth is that while the EPA leadership is betraying its own people, denying them this necessary unlimited parent company guarantee, it is in contrast, disloyally granting Exxon the unlimited guarantee to stand with the company against Guyana at all cost. He urged citizens to read the ruling by Justice Kissoon on the matter to draw their own conclusion.

(EPA shamefully omitted sections Exxon Permit to argue against unlimited parent company guarantee for oil spills- Dr. Adams)

(Exxon Permit)

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• Adams, EPA, oil, spill, Unlimited Parent Company Guarantee

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