EPA has authority to correct Exxon’s outdated Liza Phase One permit now

Dec 20, 2020 News

By Kemol King

A worker stands on an Alaska beach blackened by oil spilled from the Exxon Valdez Oil Tanker in March, 1989. This was the fate of thousands of miles of coastline in Alaska’s Prince William Sound (Credit: John Gaps III / Associated Press)

Kaieteur News – Given recent revelations that there is no commitment for comprehensive disaster insurance enshrined in ExxonMobil’s Liza Phase One environmental permit, the Environmental Protection Agency (EPA) has the opportunity to go back and amend the document so that Guyana is not trapped in a cycle of debt for generations if there is a massive oil spill.
The agency, headed by Sharifah Razack, can ensure that Exxon provides documented assurance that it accepts unlimited liability for any disaster which occurs at its producing Liza Phase One operation, where as many as 120,000 barrels of oil are being produced every day.
Former Head of the EPA, Dr. Vincent Adams, had ensured in his time there, that ExxonMobil – the parent company – not its lesser endowed subsidiary, accepts unlimited liability for any disaster during the production of petroleum at its Liza Phase Two operation. The provision would go on to be included in all oil companies’ future permits.
During a recent telephone call with Dr. Adams, it was confirmed that the provision is still absent from the Liza Phase One permit.
Unlike the Stabroek Block Production Sharing Agreement (PSA), environmental permits are not bound by rigid stabilization clauses. They do not require the agreement of the contractor in order for the terms to be amended. The EPA has the authority to amend the permit as it sees fit in order to keep up with new environmental standards. Section 13 of the Liza Phase One permit, which speaks to Institutional Authority, states: “The EPA reserves the right to review and amend the conditions attached to this Permit in accordance with Regulation 14 of the Environmental Protection (Authorizations) Regulations, 2000.”
Similarly, the Regulations state in Section 14 (1): “The Agency may at any time by notice in writing to the holder of the permit, cancel or suspend an environmental authorization or impose such conditions as the Agency considers appropriate in addition to or in place of the existing conditions, with effect from such date as the Agency may specify provided that the cancellation, suspension or modification shall not give rise to an additional adverse effect.”
Then in 14 (2): “The Agency may cancel, suspend or modify an environmental authorization during its currency for any of the following reasons… the Agency establishes new or revised standards in respect of the operations of the facility [among others].”
The environmental permit expires on June 1, 2022 – thanks to a recent court ruling which reduced the unlawful 20+ year lifespan granted by the David Granger administration, to five years as the law allows.
At this time, Exxon subsidiary, Esso Exploration and Production Guyana Limited (EEPGL) and its parent company, would have to apply for a new environmental permit and be bound by the new standards.
However, that expiry date is 18 months away. If the EPA does not move to amend the permit now and correct this loophole which allows Exxon liberty to walk away and leave Guyana exposed, any large oil spill which occurs in this period would cripple the country for years.
Thousands of marine life would die in and out of Guyana, and the fishing, tourism and other sectors of the CARICOM region could be tanked for years, threatening the livelihoods of millions of people.
Alaska still bears remnants of the Exxon Valdez Oil Spill that happened over 30 years ago. Before Guyana becomes a victim of an Exxon oil spill, like Alaska was in 1989, the EPA has the opportunity to safeguard the country by amending the supermajor’s permit.