Attorney General Allyson Maynard-Gibson continues to tout the environmental protections included in the Petroleum Bill while making the case for drilling for oil in The Bahamas, given the stiff objection from an environmental lobby concerned about the risk to an at-risk eco-system. Included in those protections are penalties up to $15 million and 25-year jail terms, plus insurance mandates.
Maynard-Gibson said The Bahamas' "national and international experts" paid close attention to environmental matters during the development of the legislation.
"I especially note that the mining and environmental teams at the COMSEC (Commonwealth Secretariat) assisted in preparation of these bills. A strict regime is set down to minimize environmental damage. Also... insurance is compulsory and security must be provided by the holder of a license," she said.
Penalties and liabilities
The bill mandates the holder of every instrument to - with prior approval of the minister in writing - take out a policy of insurance against liability for personal injury or damage; damage to property and environmental damage; and employees of the holder of every instrument involved in petroleum activities. The bill also provides that on the date on which an instrument comes into force, the minister shall require the holder thereof to lodge with the minister, security against environmental damage in such form, subject to prior approval by the minister. How much that security is will be subject to mutual agreement between the minister and the holder of the instrument.
The bill says, "Where in the conduct of operations under an instrument, the holder thereof causes environmental damage, the minister shall within no less than 24 hours, be notified in writing, and the minister upon receipt of such notice shall in writing, require the said holder to undertake steps to address and remedy the environmental damage within a specified period of time, failing which, the rights of the holder to the security against environmental damage which was lodged with the minister, shall be forfeited..."
Maynard-Gibson took special note of provisions in the bill addressing the offenses for environmental damages up to $10 million.
"This is to be read in conjunction with the compulsory insurance provisions which are cautionary and pre-emptive provisions. What section 53 is saying is that, beyond the cautionary provisions, should something happen to the detriment of the environment, the country will be entitled to receive a fine of up to $10 million. The insurance will provide cover the risk and damage to the environment. However, beyond that the country can expect up to $10 million," she said.
The attorney general also cited section 54, which states that any person who contravenes any of the provisions of the act or any regulations made thereunder commits an offense and, where there is no specific penalty provided, is liable on conviction to a fine not exceeding $15 million, imprisonment for a term not exceeding 25 years, or to both such fine and imprisonment.
Section 54(d) provides that an offender is subject, in the case of a continuing offense, to a further fine of $5,000 for every day during which the offense continues. 54(e) in the case of a second or subsequent offense, to a further fine not exceeding $15 million."
Sovereign wealth fund bill
Maynard-Gibson argued that the implementation of a sovereign wealth fund will assure that revenue generated from the nation's natural resources will be used for national development and benefit future generations.
"Revenues from all mining activities including salt, aragonite and sand must benefit The Bahamas. It's as simple as that. If you extract something from The Bahamas, you should pay The Bahamas. It is just that simple. Bahamians must benefit," she said.
She asserted that in "modern and progressive economies" it is common to separate the funds received from taxes, income and other regulatory activities from those funds received from the benefit of natural resources of a country. This fund is typically referred to as a sovereign wealth fund, she noted.
"It is envisioned that funds derived from natural resource extraction will be put into this fund and invested for the benefit of Bahamians for generations to come. The purpose of the fund is to save and invest surplus funds derived from oil, gas, minerals and other natural resources to provide a heritage for future generations of the citizens of The Bahamas; to support and increase savings for future generations; to enhance sustainable long term capital growth for The Bahamas; and to support and promote any other strategic development objectives of The Bahamas.
"The fund shall not be used for government capital expenditure or to satisfy any debt of the government," she said.
Maynard-Gibson also discussed oversight of the fund, explaining that the Central Bank will have the right to open this account which will be in U.S. dollars, and that the legislative requirements for the setting up of the account primarily mandates the appointment of a board to manage the fund.
Article by K. Quincy Parker Nassau Guardian
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