ExxonMobil now required to pay EPA for excess flaring

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EPA Issues a Modified Environmental Permit to EEPGL for the Liza 1 Project

The Environmental Protection Agency (EPA) wishes to advise that the Environmental Permit for the Liza 1 Development Project, Offshore Guyana, was recalled and modified to include specific regulatory requirements for flaring of associated gas offshore Guyana, in accordance with the EPA’s legislation.

Due to technical issues offshore Guyana, Esso Exploration and Production Guyana Limited (EEPGL) recently resumed flaring offshore Guyana, following intermittent periods of flaring since December 2019. The company was projected to exceed the 14 Billion Standard Cubic Feet (Bcf) of gas estimated to be flared by the Environmental Impact Assessment (EIA) for the project on May 13, 2021.

In light of the foregoing, EPA and EEPGL have been engaged in discussions regarding the technical and legal issues regarding modifications to address flaring.

On May 13, 2021, the Modified Permit was issued to EEPGL having been signed by both EEPGL and EPA. The Modified Environmental Permit includes revised terms and conditions relating to emissions reporting requirements, technical considerations for flaring, timelines for flaring events and an obligation on the company to pay for the emission of Carbon Dioxide equivalent (CO2e) as a result of flaring in excess of these timelines. The aforementioned payment shall be paid to the EPA and calculated at the rate of US$30 per tonne of CO2e.