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ContractDate Posted: 2009-08-18 13:08:06
Is the PSC contractor responsible for cleaning up existing environmental damage? If so, will these costs be recoverable under the PSC?
Answer
Date Answered: 2009-08-18 13:08:54
The Contractor is responsible for cleaning up the damage caused by its operations:
Article 5 (10) of the Environment Law: “Persons who cause adverse effects, especially pollution, must bear the social and environmental costs of avoiding, mitigating and/or remedying those adverse effects” (polluter pays principle)
- To the extent that a Contractor cleans up environmental damage existing prior to its Hydrocarbon Operations (i.e. adverse effects not caused by the Contractor), then all costs involved shall be recoverable under the EPSC
Article 5 (10) of the Environment Law: “Persons who cause adverse effects, especially pollution, must bear the social and environmental costs of avoiding, mitigating and/or remedying those adverse effects” (polluter pays principle)
- To the extent that a Contractor cleans up environmental damage existing prior to its Hydrocarbon Operations (i.e. adverse effects not caused by the Contractor), then all costs involved shall be recoverable under the EPSC