Civil Society Activist and Head of Transparency Institute Guyana Inc. (TIGI), Frederick Collins filed an objection on May 11 in Guyana’s Appellate Court against an appeal by the Environmental Protection Agency (EPA).
His objection is intended to block the EPA’s request to halt a High Court order for an unlimited parent and/or affiliate guarantee agreement from ExxonMobil Guyana for the Liza Phase One Project.
In the Affidavit filed by EPA’s Head, Kemraj Parsram, the regulator offered four main arguments to support his request for a stay of the judgment. They are as follows: 1) An unlimited parent guarantee does not exist in the industry, 2) the Guyana Government is in receipt of a US$2 billion parent and/or affiliate guarantee which is adequate and complementary to a US$600 million per occurrence insurance package from EEPGL; 3) the law requires that financial assurance is specified in a permit and 4) the courts cannot direct a public authority on how it ought to exercise the discretion it is afforded in law on such matters.
He also contends that the High Court’s threat to suspend the permit if the unlimited parent and/or affiliate guarantee is not provided by June 10, 2023, could result in significant economic consequences for the nation.
Collins, one of the original applicants to the case that allowed for the May 3, 2023 ruling, took note of Parsram’s Affidavit and thought it prudent to counter. In those documents, Collins said he does not agree with the stance taken by Parsram. Collins said he is advised by his Counsel that to obtain a stay of execution pending an appeal, an applicant must satisfy the court that the appeal has a good prospect of success; that there are special circumstances that would exceptionally justify it.
Moreover, he insisted that the conditions of the permit, do call for an unlimited parent and/or affiliate guarantee while noting that nothing in the permit places a limitation on the parent guarantee to be supplied. Collins also said EEPGL’s President, Alistair Routledge is on record stating that his company will cover all costs associated with any spill. Given such a statement, he said the company should have no qualms about providing the relevant sureties to this end.
In light of the foregoing, among other arguments, Collins is calling on the court to refuse Parsram’s request for a stay of the May 3, 2023 judgment.
