By Nazario Rodriguez Jr.
Horizon news staff

A memorandum of Agreement was recently signed between President Remengesau and the chairmen of the House Committee on Resources and Development and the Senate Committee on Resources, Commerce, Trade and Development for the creation of an Oil and Gas Task Force.
The parties agreed that a joint effort is necessary to respond effectively and efficiently to the challenges raised by the creation of the oil and gas sector in Palau.
The task force will be composed of 10 appointed members – two by the President, one each by the Senate and the HOD, one by the Environmental Quality Protection Board, two by the Chamber of Commerce, one from the tourism sector, one from the fisheries sector, and two by the Governors Association.
The task force would be for a period of six months from the effective date of the MOA and would prepare a report on the hydrocarbon potential of the Republic’s territory and the potential impact of oil exploration and production on the Palauan environment, economy and community.
The MOA was executed on Feb 16 and signed by President Remengesau, Senator Alfonso Diaz and Delegate Noah Idechong.
Such report, the MOA said, should contain recommendations on the opportunity of and alternative methods for developing the oil sector.
After the report is presented to the President and the OEK and comments and recommendations are provided to it, the Task Force would recommend the institutional set up for the management and oversight of the sector, including its financing, staffing, technical assistance and capacity building needs.
It would also oversee the preparation of hydrocarbon code, model agreement and related environmental, operation and tax regulations, taking into account any existing or proposed legislation.
The MOA said that the task force would provide recommendations on the design of sector policies, provided that the government so requires.
Upon completion of the Task Force’s work, appropriate government agencies will be created by law and will be tasked with the implementation of the relevant legislation, the promotion of Palau’s hydrocarbon potential to the industry and the oversight and administration of the petroleum sector.