…as EPA hosts public scoping meeting for Liza 2 development

By Indrawattie Natram
THE Environmental Protection Agency (EPA) Wednesday evening conducted its first of two-public scoping meetings in Region Two (Pomeroon-Supenaam), informing major stakeholders about Esso Exploration and Production Guyana Limited (EEPGL) Liza Phase 2 Development Project that is executed under ExxonMobil Guyana.

The process involved public participation, giving residents from the rural areas the opportunity to state some of the major issues and impacts which should be addressed in the Environmental Impact Assessment (EIA) study. Speaking to stakeholders at the Cotton Field Secondary School, Senior Environmental Officer, Candacie Thompson, said it is the role of the EPA to guide citizens, ensuring that their concerns, suggestions and recommendations are captured in the Terms of Reference that will be developed shortly.

She further added that the Terms of Reference will act as a guide towards the formation of the Environmental Impact Assessment (EIA).
Shedding some light on the project, she said the EPA received an application from EEPGL for Environmental Authorization to undertake Liza 2 Development facilities for Petroleum Production for an estimated 20 years in the Stabroek License Area, Offshore Guyana.

She further stated that the proposed project will be implemented in multiple stages which include drilling of 35-40 wells, mobilization and installation of a floating production, storage and offloading facility, production operations and decommissioning.

As such, she said given the nature of the project and in accordance with the Environmental Protection Act, Cap 20:05, Laws of Guyana, an EIA is required for the project before any decision on whether or not an Environmental Permit would be granted. During lengthy discussion, residents from Region Two were particularly concerned about possible natural disasters as fallout from the project.

Region Two Chairman, Devanand Ramdatt, who was part of the meeting, said he was concerned about the agriculture and tourism sector and the negative impact the project could have on the sectors. Ramdatt said while it will be a good move for Guyana through the earning of revenues, keen attention need to be given to the way the waterways would be affected. “While we are here making recommendations, we also need answers.

Region Two is surrounded by water; agriculture and fishing are the main economic activities and as such the project has a direct impact on us. What will happen if there is any oil spill?”

He also queried where the hazardous waste would be dumped and called upon the EPA to take that into consideration. President of the Essequibo Chamber of Commerce (ECC), Mr. Deleep Singh said that to his knowledge the project is a secret one and as such called for more information to be made public. He also asked the question what will the company do in an event the country suffers a natural disaster. He also called on the EPA to analyse the negative environmental impacts the project will have.

Singh also asked how Essequibo will benefit in terms of employment opportunities and procurement. Regional vice chairperson, Nandrainie Coonjah said that she was not satisfied with the answers that were provided by ExxonMobil on several issues that were raised. She said that it is Guyana’s natural resources that will be extracted, as such it is the people’s right to state what they feel will happen to the country. Coonjah said that most of the countries that found oil suffered from natural disaster.

Meanwhile, in responding to residents’ questions, country manager for ExxonMobil, Rod Henson said that the project will be beneficial to Guyana and residents from throughout Guyana will benefit. He said ExxonMobil is currently conducting a study to provide gas to the Government which will reduce energy cost. Henson said that the study will see if it is safe and viable. Henson said it is estimated that production will be approximately 190,000 to 220,000 barrels of oil per day. The meeting was attended by representatives from the Department of Environment, and Ministry of The Presidency, members of the EPA and EAB boards of directors. A similar meeting was also held at Charity.

Under the contract between Guyana and ExxonMobil, a programme is to be established for financial support for environmental and social projects to be funded by the U.S. oil company and its partners. According to the 2016 revised Petroleum Agreement between the parties, the contractor shall “directly fund the amount of US$300,000 per calendar year with any funded but unspent portion of this amount to be carried over into the ensuing calendar years of the agreement.”

By virtue of this agreement, the subject minister and the contractor shall meet annually to agree on the projects that are to be funded in the given year, provided that adjustments in regard to amount and projects to be funded may be agreed during any particular year in question.

Additionally, the contract notes that the contractor is not obligated to fund any project which may in its opinion subject its members to liabilities in their respective affiliate countries of operation. On the environmental front, the contractor is obligated in accordance with the 1996 Environmental Protection Act, to obtain an environment authorisation as mandated by the Environmental Protection Agency (EPA).

The contractor is thereby prevented from initiating any exploration or development activity on areas that are outside of the contract area which the EPA may determine to be sensitive or protected. Additionally, the contractor is required to take necessary and adequate precautions in accordance with good international petroleum industry practice to guard against pollution and to protect the environment and the living resources of the rivers and sea.

If the contractor fails to comply with the stipulated regulations, thereby resulting in pollution or damage to the environment, riverine or marine life or otherwise, “the contractor shall take all reasonable measures in accordance with good international petroleum industry practice to remedy the failure and the effects thereof and shall, where pollution occurs, treat or disperse it in an environmentally acceptable manner.”

It should be noted however, that the contractor would not be deemed liable to remedy pollution or environmental damage that existed prior to the start of its petroleum operation. In the event of an emergency or accident arising from petroleum operations, the contractor is required to notify the minister immediately.

“If the contractor does not act promptly pursuant to Article 28.4, so as to control or clean up any pollution within a reasonable period specified by the minister, the minister may, after giving the contractor reasonable notice in the circumstance, take actions which are necessary in accordance with good international petroleum industry practice and the reasonable costs and expenses of such actions shall be borne by the contractor,” the contract stated.