Vice President Jagdeo has for sure secured his spot in the annals of iconic harbingers of falsehoods; but his reaction to Honorable Judge Kissoon’s well-thought-out decision, takes the cake, when he distorts the decision and attempts to intimidate and create a chilling effect on the judiciary. The VP perversely attacks the decision with his vengeful bogus claim that the ruling called for “unlimited insurance” and some kind of fictitious unbearable premium cost attached to it; when in fact, there is not a single mention of any such nonsensical “unlimited insurance”. Worse yet, it is dumbfounding that Mr. Jagdeo, who portrays himself to know it all, does not know the difference between “unlimited parent company guarantee (PCG)” and his dreamed-up “unlimited insurance”.
Unfortunately for Guyana, our de facto leader believes that the world revolves around him and underpins his revulsion for the truth, graciousness, and respect for the rule of law – grave shortcomings of a leader of any kind, much less a leader of a democracy. As smart as he imagines himself to be, he was not smart enough to figure out that his autocratic tendency has led him to completely miscalculate the power and courage of our citizens and judiciary.
Mr. know-it-all can’t help himself pushing aside all of the knowledgeable people to usurp their roles, including that of his boss, and parades around as the repository of wisdom on every subject; thereby, over and over again, exposing his cluelessness in the critical areas of oil & gas, the environment, and the law. His foolish ramblings are an embarrassment, and must be spinning heads. Attorney Jagdeo in pursuit of his Putinesque ambitions, signals the justices that they have to produce “predictable decisions”; are “treading in murky waters”; and have to “produce judgments that are well reasoned”. How does one respond to such idiocy! Will leave that impossible task to AG Nandlall who should tell him to shut-up and let those who know, speak.
That notwithstanding, he brings into question his ability to comprehend the Judge’s ruling written in plain vanilla English, and the permit which the Judge describes as “clear and unambiguous terms, words and phrases used in their ordinary, literal meaning and context.” Nevertheless, for the needs of the VP, I will try to simplify the ruling. The meat of the ruling is, as verbatim:
“The Court holds that the Permit Holder is by Condition 14:02 and 14:05 mandated to provide environmental liability insurance”
“The Court further holds and finds that the Permit Holder is mandated to provide by Conditions 14:02, 14:03 and 14:10 a further financial assurance in the form of an unlimited parent or affiliate company guarantee to indemnify and keep indemnified the Agency and the Government of Guyana”
The above, orders enforcement of the existing law compelling: (1) liability insurance; and (2) unlimited PCG to cover all costs for which the insurance is not enough to cover. Note that the Order calls for “liability insurance” and says absolutely nothing about “unlimited insurance” and the bunk about an insurance premium cost to result in “economic disruption”. But that is not stopping the VP from irresponsibly spreading this mischievous untruth. The fact is that the PCG is simply a signed piece of paper that doesn’t cost a dime! but is downright necessary, because EEPGL, the Permit Holder and operator, does not have any assets (called “assetless” by the Judge) to cover a large spill. It is solely a subsidiary (child) set up as a Limited Liability Company (LLC) of its parent Exxon. LLCs are mainly formed to protect their parent companies like Exxon from liabilities. Resultingly, since child EEPGL is the lone signer on all documents, parent Exxon has no legal connection, obligations or liabilities; thence, why it is a must-have to hook in Exxon, as the parent guaranteeing coverage of all costs not covered by insurance.
As the distinguished Judge stressed “if the PCG is in place, and there is an event resulting in the release of hydrocarbons, then EEPGL, to the extent that it is unable to do so, as it is largely an assetless subsidiary without financial resources, then EXXON, the Parent Company comes into play. EXXON continues to derive a benefit from the operations of its subsidiary and will cover the liabilities and obligations of EEPGL as stipulated”. For reference, the BP spill in the Gulf of Mexico, cost $145 billion USD; thus, a spill of this size would instantly use up the paltry $600M insurance, leaving $144.4B to come from parent Exxon. Terrifyingly however, without the PCG, Guyana would have to foot the bill for that ungodly amount with money that we don’t have, and that would put every cent of our oil take at risk; not to mention the devastation of the economies of the rest of the Caribbean when their beaches and sea are flooded with oil.
True to form, in his attempt to mask that reality so as to deceive the people, the VP absurdly claims that EEPGL has $16B in assets that could be seized. Is it just coincidental that the VP’s fictitious number only came up immediately after the Judge’s decision? Besides this being just a fanciful number, it is obvious that the VP does not know that the contract sanctifies that EEPGL’s assets belong to Guyana and will be turned over to us, “free of charge”, since paid for, in cost oil. This means that to talk about seizing of our own assets is senseless.
For the VP and his abettors who gripe that they have never heard of a PCG, please be educated that in countries such as the USA, all of Exxon’s operations are in the name of Exxon, and not under any kind of child company such as EEPGL to protect Exxon from its liabilities; therefore, since no parent, there is no need for a parent guarantee. They must also be wised-up that Shell Oil is currently fighting an oil spill lawsuit by Nigerians; and as you may guess, Shell’s defense is that it is not responsible for its subsidiary/child company under which the spill occurred.
As if attacking Judge Kissoon wasn’t enough, the VP went full bore after the entire judiciary, for no other reason, but to intimidate and create a chilling effect on the judiciary’s future decisions as the appeal moves through the Courts. This smells of autocracy and an immoral betrayal of our people, that our leader would team up with a foreign company against his own people and own laws. He self-importantly quips about now being in the big leagues; but, as one who operated extensively in the big leagues, would wish to enlighten the VP that being in the big leagues means that the Government enjoys supremacy over all contractors, unlike in Guyana, where the reverse occurs with the Government’s reverence and is “submissiveness” to Exxon as described by the Judge.
Deceitfully, Exxon whines that their huge resource for covering a spill was not considered by the Judge and that they will never walk away from an incident. However, the Judge clearly read through the fake and reasoned that if that is true, it should be very easy to put it in writing in a PCG, especially since it does not cost a single dime. In other words, put yuh money weh yuh mouth deh. In any event, is this a company anyone should trust to keep its word, given its international disreputable record of lawsuits related environmental transgressions; plus, the shake-up of its own Board, due to concerns about environmental stewardship. Furthermore, right in our back yard, the Peru government was forced to seize the passports of Executives of Repsol, following a relatively small spill, and had to sue Repsol, while now putting laws in place for future protection. As old people seh, “why wait till night time to use candlelight to see what you can see in daylight”.
Team Jagdeo & Exxon is greedily and unfeelingly aggravating the risk consequences of an oil spill: (1) EEPGL is producing way above the “safe operating limits”; (2) the Government’s cancelled the World Banks Plan for a 36-member EPA Oil & Gas Unit of highly skilled professionals for 24/7 on-site FPSO presence to prevent a spill; (3) the oil spill response plan is grossly inadequate as verified by the Auditor General; and of course (4) no PCG to cleanup a spill.
Regardless of how much money comes from oil, Guyana will never attain its rightful place as the richest country, unless the rule of law is upheld without favor; so, it is disheartening that the Government is tearing down all of the key guardrails required for such realizations. Undoubtedly, Exxon would not even dream about doing in its home country, USA, what it gets away with, in Guyana; and Exxon knows it. They cannot be allowed to become big, fat and happy, making hundreds of billions of dollars from our patrimony, but defies our rule of law mandating producing within the prescribed safe limits, and a PCG to ensure cleanup of potential damages from operations generating Exxon’s record breaking profits. All we ask is for Exxon to show us respect, give us our fair share, and abide by the same rule of law they have to abide by, in their home country; and for our government to carry out its solemn responsibility to protect its people, rather than side with Exxon against its own people.
Best Regards,
Dr. Vincent Adams
