High Court Judge, Justice Simone Morris Ramlall on Monday ruled that the State, represented by the Attorney General (AG), Anil Nandlall, SC has a right to be added to legal proceedings affecting petroleum operations.
The decision is a ruling on a preliminary point in an action brought by Sherlina Nageer, against the Environmental Protection Agency (EPA) on January 25, 2024. The Applicant seeks various orders, including the cancellation of the environmental permit granted to ExxonMobil Guyana Limited (EMGL) for the Liza Phase 2 Development located in the Stabroek Block.
While the case was initiated against the EPA earlier this year, neither the State nor Exxon were listed as respondents to the proceedings. As such, both the State and Exxon filed Notices of Application asking to be added as parties.
The Attorney General Chambers reported that while the Applicant was opposed to the State and Exxon being added as respondents in the case, Justice Ramlall ruled that Section 94 (1) of the Petroleum Activities Act 2023 requires that the State, must be added to proceedings seeking to cancel, prohibit the grant of, or dictate the terms of, environmental permits granted to ExxonMobil and its Stabroek Block partners.
The State argued that Section 94 (1) of the Act mandates that the Minister of Natural Resources be added as of right to these proceedings, as they constitute proceedings which arise out of the Act which affect the interest of the State. It was argued that the proceedings could impact the environmental permit regarding Liza Phase 2, and that such an eventuality could trigger the cessation, even if temporarily, of that project. Additionally, the State argued that an order cancelling the permit, or prohibiting the grant of a new permit could negatively affect government’s intended revenue from royalties and Guyana’s share of profit oil, public infrastructural works to be funded by that revenue, and could pose additional legal issues for Guyana.
The Minister of Natural Resources, Vickram Bharrat was represented by Chevy Devonish, Senior Legal Advisor, on behalf of the Attorney General.
Moreover, counsels for ExxonMobil, Edward Luckhoo SC, Andrew Pollard SC, Eleanor Luckhoo, and Shawn Shewram argued that the company had a clear interest in the outcome of the case and was entitled to be added as a party under S. 13 (1) of the Judicial Review Act, R. 31.01 of the Supreme Court of Guyana Civil Procedure Rules 2016, and Section 94 (1) of the Petroleum Activities Act.
After reading the submissions by all parties, Justice Morris-Ramlall found that the State does have an interest in the subject matter of the proceedings brought by the Applicant, and stands to be affected by the grant of reliefs sought. Consequently, the judge found that Section 94 (1) of the Petroleum Activities Act mandates that the Minister of Natural Resources be named as a party as the matter arises out of petroleum operations. Justice Morris-Ramlall also agreed with the arguments by Counsel for ExxonMobil.
As a result, the court ordered that the Minister of Natural Resources, represented by the Attorney General, be added as the Third Named Respondent, and ExxonMobil be added as the Second Named Respondent. Notably, both the State and ExxonMobil were also awarded costs in the sum of $300,000 to be paid by July 24, 2024.
The ruling now paves the way for the Court to proceed to consider the questions raised in the substantive action.
The State and ExxonMobil are now required to file their Affidavits in Defence by July 8, 2024, and the Applicant must file its Affidavit in Reply by July 22, 2024. Notably, all parties are then required to file and exchange submissions by or before August 5, 2024, after which the court will convene for a hearing again on August 16, 2024 at 11:30am.
