EPA appeals ruling on ExxonMobil’s parent company guarantee on Guyana operations

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The Environmental Protection Agency

Days after the High Court ruled that the Environmental Protection Agency (EPA) had to require an unlimited Parent Company Guarantee from ExxonMobil for its operations in the Stabroek Block, the agency has filed an appeal to stay and, eventually, overturn the order.

In the Notice of Appeal, EPA Executive Director Kemraj Parsaram is seeking a stay of Justice Sandil Kissoon’s order, until his appeal to overturn it can be heard.

Parsaram, who is represented by Attorney-at-Law Sanjeev Datadin, argues in his appeal that the court’s reasoning was flawed and that the permit which was granted, is in keeping with the law.

He further noted that the court orders are coercive and entirely removes the EPA’s discretion, which will have severe consequences.

According to the Executive Director in the filing, there would be severe disruption to the national economy if the order is allowed to stand.

It was pointed out that the very permit at the heart of the case, is critically important to Guyana’s economic growth.

It was argued that should the permit, which pertains to the Liza 1 and 2 fields, be canceled, this would therefore have catastrophic consequences on the economy.

In his ruling, Justice Kissoon had ordered EPA to issue ExxonMobil with an enforcement notice on or before May 9 to provide the parent company guarantee.

In that ruling, he had said that failure to do so would result in the environmental permit being suspended.

It is expected that EPA will be granted an expedited hearing on the matter, ensuring the permit is preserved until the case is heard.

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