Who pays environmental claims of citizens and NGOs? Isla-refinery (PDVSA) or the Curaçao Government?

A few months ago, SMOC published the “Agreement between the Netherlands Antilles, the island territory of Curaçao and Petroleos De Venezuela S.A.”. Yet, it is fully known that the positive economic contribution of the Isla-refinery to the Curaçao economy is much lesser than several public voices might expect. Moreover, since its ever existence, the actions of the Isla have been yielding negative economic contributions too. Due to its huge emissions of environmental contaminants, people have been suffering from several diseases. This has an economic price for all tax-payers (and their families). Therefore, SMOC has been judicially fighting the Isla for about 15 years, but also the Curaçao Government. Instead of serving the public interest, this government backs the Isla for several reasons. See for example Art. 6.4.4 and 6.4.5. of  the “Agreement between the Netherlands Antilles, the island territory of Curaçao and Petroleos De Venezuela S.A.”:

6.4.4 The Governments will hold PDVSA harmless and fully indemnified against any claim, penalty or the cost of any action asserted against PDVSA by any third party arising out of or in connection with damage to the environment (including, without limitation, bodily injury, property damage, nuisance and consequential damages resulting from such damage to the environment or from a situation that also caused damage), (i) which has occurred or may occur as a result of The Refinery’s operation or activities prior to October 1, 1985, and/or (ii) which has occurred as a result of The Refinery’s operation or activities after October 1, 1985, to the extent such claim, penalty or action, covered in this clause ii), is based on legislation taking effect after the termination of this Agreement, except legislation which merely replaces the law in effect at that time without broadening the scope of the defendant’s liability or otherwise facilitating the plaintiff’s action.

6.4.5 The Governments agree to indemnify PDVSA for fifty percent (50%) of the costs of any claim, penalty or action asserted against PDVSA by any third party arising out of or in connection with damage to the environment (including, without limitation, bodily injury, property damage, nuisance and consequential damages resulting from such damage to the environment or from a situation that also caused damage), unless and to the extent that PDVSA has caused such claim, penalty or action by not operating The Refinery properly in accordance with the Lease Agreement or the 1985 Lease, as applicable, or by not complying with Attachment “F” or (provided that The Governments have paid the applicable funds referred to in section 6.2) the New Environmental Laws.

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