High Court Judge rules EPA acted illegally by failing to suspend/cancel Liza 1 Permit in view of Exxon's 11 months of non-compliance on insurance

Arecent High Court From the time the Liza Phase take any meaningful step or any withSection26oftheAct”. breached.” judgment has revealed One Permit was modified and step whatsoever to assess what was Hesaidthereisnoevidencethat Section 25 of the Act also sets that ExxonMobil’s issued on May 31, 2022, Justice provided to it by Esso, the Permit anyEnforcementNoticewasissued out the procedure under theAct for affiliate, Esso Exploration and Kissoon stated that the EPA, at H o l d e r, p u r p o r t e d l y a s to EEPGL notwithstanding its cancellation, evocation and/or Production Guyana Limited every juncture thereafter, engaged environmental liability insurance prolonged non-compliance over 11 suspension of the Permit by the (EEPGL) is in breach of its Liza in a course of action that when it was not in fact in keeping months. Justice Kissoon said too Agencyinthepublicinterest. Phase One Permit, specifically as it undermined and eroded the strict withCondition14:05.” that there is no evidence that the In all of the circumstances, pertainstothoseclausesthatcallfor terms and conditions of the very “This is notwithstanding that agency took any step whatsoever in based on the evidence, the Court theprovisionofinsurance. EnvironmentalPermititissued. the Permit Holder has, through its relation to the Permit Holder’s found that in accordance with the According to the ruling handed JusticeKissoonsaidtoothatthe public pronouncements, compliance. Judicial Review Act, Chapter 3:06, down by Justice Sandil Kissoon, Agency in its filings before the communicated its intention to Citing Regulation 15(1) of the the Agency is, by its acts and Guyanese authorities should have Court, through its Officer, deposed increase production levels in its EPA Act, Justice Kissoon said it omissions, in breach of its statutory had in their possession, two forms on oath that EEPGL was indeed petroleum production facilities,” provides that “Where an duty of insurance coverage: a parent compliantwithobligationsoutlined thejudgesaid.

Environmental Authorisation is in Justice Kissoon said the EPA guarantee from Exxon that has no at Condition 14 of the Permit. Justice Kissoon added that the force it shall be the duty of the has,inthecircumstances,andbyits cap or limit and an insurance However, despite the oath, Justice EPA also “failed to suspend and/or Agencytotakethestepsneeded-(b) decision and omission, committed package from EEPGL from an Kissoon said, “This was not in fact cancel the Environmental Permit For the purpose of ensuring that the an illegality, acted unlawfully, ultra independentfirm. so.” (Renewed) notwithstanding the conditions of the Environmental vires, unreasonably in the Justice Kissoon ruled that The Judicial Officer said the p o t e n t i a l c a t a s t r o p h i c Authorisationarecompliedwith.” We d n e s b u r y c o n t e x t o f E E P G L a n d i t s p a r e n t , Agency,apublicauthority,carrying consequences to the environment, Section 13(1) of the Act also unreasonableness, in defiance of ExxonMobil, are in breach of out public law functions, failed and citizensandtheState.” provides that, “ each logic, irrationally and without any Condition14oftheLizaPhaseOne omitted to mandate compliance by The Judge further noted that environmental permit shall contain jurisdiction. Permit which speaks to insurance thePermitHolderwithitsFinancial Condition14:17ofthePermitstates thefollowingimpliedcondition:(a) The Judge has given the EPA coverage for 11 months. The Judge Assurance obligations of that, “Should the Permit Holder The Agency shall have the right to until June 10 to ensure EEPGL is also ruled that the regulator’s environmental liability insurance contravene or be likely to c a n c e l o r s u s p e n d t h e compliant with the insurance failure to ensure compliance was together with an unlimited parent contravene any condition of this Environmental permit if any of the provisions of its permit. Failure to fully and effectively met companyguarantee. Permit, the Agency may issue an terms or conditions of the do so will see the permit being constitutedanillegality He said, “The agency failed to Enforcement Notice in accordance Environmental permit are suspended.