Justice Rishi Persaud delays decision on Exxon spill-insurance ruling

Court of Appeal Judge Rishi Persaud on Wednesday delayed a decision on a request by the Environmental Protection Agency (EPA) to stay Justice Sandil Singh’s High Court ruling Exxon/Hess/CNOOC is required to provide full liability coverage for the Liza One project.

Last May 3, Kissoon ruled the EPA and ExxonMobil breached obligations relating to its oil-spill insurance policy, and ordered that within 30 –days there be compliance with the permits or risk the permits being suspended.  The guarantee should come into effect no later than June 10.  This is the decision the EPA has appealed and has requested a stay until the matter is determined by the Court of Appeal.

However, Judge Persaud said he would make a decision on the stay within a week. If the stay is granted it would put off the June 10 deadline and set a Full Court reconsideration of the HIgh Court’s ruling.

Lawyers representing the EPA and Exxon, who joined the case, have argued the existing liability insurance and the oil companies’ assets in Guyana are sufficient to cover a major disaster at the Liza One production facility.

The plaintiffs, President of the Transparency Institute of Guyana Inc (TIGI) Fredericks Collins and Godfrey Whyte, have expressed concern about the environmental impacts of offshore drilling. They had asked the High court to issue a declaration that unlimited liability is imposed on the parent company for costs associated with clean-up, restoration and compensation for pollution including the environmental obligations of the EPA and the state of Guyana. Their attorneys, Seenath Jairam SC, Melinda Janki and Abiola Wong-Inniss, argued the project’s environmental permit had set no cap on liability and urged the court to uphold the original decision.

Meanwhile, Exxon shareholders on Wednesday rejected a call for the company to issue a worst-case oil spill scenario report on its offshore operations in Guyana.