But, how effective is the judgment? It's a question not clearly answered because although the court has declared them null and void, 3 of the contracts were terminated last week, and 1 of them expired last year. So, the judgment affects only Princess Petroleum Limited and Providence Energy Belize Limited which were extended long before today's dramatic ruling. And more importantly, GOB still has the authority to issue new contracts to these same companies if they so choose.
So, today we asked Godfrey Smith, attorney for the claimants, to explain what this judgment means for the overall mechanism that GOB has to employ when they grant these Production Sharing Agreements.
He told us that it's a major signal that the environmental checklists are there for a reason
Godfrey Smith - Attorney for Claimants
"The decision is welcomed because it's the first decision of it's kind involving Oil Exploration Offshore. I'm sure you're aware that there have been judicial challenges in court concerning onshore - the ones on land. This was the first to be challenged to production sharing agreement to offshore oil exploration. The main lesson is that decision makers should take care to ensure that before they enter into production signing agreement, that they are aware of all the full certitude of environmentally connected legislation whether it's the environmental protection act or whether it's some other piece of legislation and marine reserves. Take time to ensure that those are properly honored, not for the sake of pacifying environmentalist but to make sure that once the investor is on the way and has made an investment then he is not faced with these kinds of challenges. In that way both sides are better off. The environmental checklist would have been complied with and the investor himself is then satisfied that the decision maker has followed the laws of the land."
Today, we contacted Denys Barrow, attorney for GOB, who told us that he respects the ruling the court, and also appreciates the jurisdiction of all the courts, including that of the Court of Appeal. The Ministry of Energy, Science and Technology, and Public Utilities said it more clearly today in their press release. They indicated that they will appeal this judgment.
They added that these contracts were granted by the last Musa Administration.
But, until that appeal takes place, GOB must abide by the orders of Justice Legall, which included a declaration that the Production Sharing Agreement are null and void, a declaration that EIA's are required to be done before any oil contracts could be entered into; an injunction restraining the defendants, servants and agents from carrying out the provisions of the PSA's; and that the defendants are to pay the cost of the applicants.
Email
Print