By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia

THE Petroleum Bill 2014 seeks to enforce penalties of up to $10m for damage to this country’s environment during oil exploration should they occur, Attorney General Allyson Maynard-Gibson said in the Senate yesterday,

As debate began among senators over a compendium of petroleum related bills, in addition to the Sovereign Wealth Fund Bill 2015, Mrs Maynard-Gibson said the legislation further establishes royalties.

The royalties, which she insisted are “clearly advantageous to the country,” will be calculated against the selling value of the petroleum prevailing in the market at that time or as determined by the minister with responsibility for petroleum.

“This is a clear indication, that the government will require investors to be accountable for their operations and that investors will implement the necessary safety protocols and processes which will ensure that The Bahamas is not left ‘out in the cold in the event of environmental damage or any other damage that may be incidental under this act.”

She added: “The bill goes even further in section 54 as it states: any person who contravenes any of the provisions of this act or any regulations made thereunder commits an offence and where there is no specific penalty provided, is liable on conviction: to a fine not exceeding $15m; to imprisonment for a term not exceeding 25 years or to both.

“In the case of a continuing offence, a fine of $5,000 for every day during which the offence continues and in the case of a second or subsequent offence, to a further fine not more than $15m.”

The penalties are consistent with international best practices, Mrs Maynard-Gibson said.

Should oil be found in commercially viable quantities and Bahamians agree to oil exploration, she noted the opportunities that could be available to the country.

“Today, in imagining what our future might look like if there is oil in viable quantities in The Bahamas, we can look at Middle Eastern economies that were transformed, the result finding commercially viable quantities of oil.

“Saudi Arabia, Kuwait, Bahrain, and Dubai are some of the countries that rapidly transformed into much admired modern countries, where their people enjoy a very high standard of living and benefit from their natural resource. Their universities compete with top universities in more developed countries and their young people know that they will get jobs in or own businesses in these 21st century economies.

“Also, these economies are not afflicted by burdensome national debt. And, the low cost of energy has enabled them to diversify their economies so as to further enhance the standard of living of their people,” she said.