Challenger Energy Group (CEG) and local environmental groups have agreed to discontinue the judicial review of the Perseverance #1 exploratory well, both sides revealed in recent press statements, with the environmental groups warning CEG and any other group hoping to explore for oil in The Bahamas that any project will be aggressively challenged.
The environmentalists – Save The Bays (STB) and Waterkeepers Bahamas – also contended that in their fight against the government and CEG, formerly Bahamas Petroleum Company (BPC), both opposing entities tried to “price the advocates out of justice” with high court fees.
The final Supreme Court order reveals that both parties will bear their own costs given the discontinuance of the legal action that began in December 2020.
Despite the discontinuance, the environmental groups have branded their legal challenge a “huge success”.
STB’s legal director Fred Smith said in the statement, that the legal challenge showed oil companies that environmentalists will ensure that all legal and regulatory requirements are followed.
“Whether you are Bahamas Petroleum Company or any other entity, consider yourself duly warned. The Bahamas has a strong, outspoken environmental activist community that will aggressively challenge any project if it appears that the procedures mandated by law might not have been followed,” said Smith.
The statement explained that STB and Waterkeepers launched the judicial review to confirm whether BPC had all of the necessary permits to drill its exploratory well and also to have the courts “establish once and for all the proper, lawful procedure for projects of this kind going forward”.
“Sadly, the drill went ahead before these questions could be determined by the court,” Smith said.
“With that ship having already sailed, so to speak, we then offered to streamline the matter, as it had become impossible because of KYC (know your customer) challenges to set up the security fees ordered by the court, to focus on the all-important second question of proper procedure and which laws apply to oil drilling.
“However, BPC was unwilling to cooperate, and so we had no choice but to accept their counter-offer that all parties mutually agree to bring the case to an end. But make no mistake, this challenge was a huge success. BPC and any other company that may be seeking oil drilling licenses in Bahamian territory now know that they will be carefully scrutinized every step of the way.”
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