“No middleman between Kayangel and PPE”

The governor of the state, Edwin Chiokai and members of the state’s legislature say that the aired allegation is bad publicity for the state and other presidential candidates, and it is “dirty politics” in clear view.In 2002, Kayangel State entered into an agreement with PPE that gave the oil company exclusive rights to conduct exploration, drilling, and production operations in the ocean areas of the state for oil, gas and other hydrocarbons. The agreement was agreed and signed upon by the Kayangel State leaders – with the support of the resident of the state – and PPE.“We had entered into a License Agreement with PPE,” said Chiokai “as a government.  There is no middleman, as alleged, who runs errands between Kayangel State and PPE.”On May 27, 2002, Kayangel State Government entered into a License Agreement with PPE concerning oil and gas exploration within the territorial waters of the state.  PPE was granted a 10-year license to do the exploration, however, environmental concerns – including the requirements and conditions imposed by the Foreign Investment Board and the Environmental Quality Protection Board, and the Palau National Government – were raised, which have delayed the exploration. The License Agreement stipulates that PPE should have begun exploratory drilling by May 2006.In 2005, then Governor Harris Kambalang signed an amendment to the agreement that extended the exploratory drilling from 2006 to 2009. The agreement was again amended in 2007 by Chiokai to extend the drilling period from 2009 to 2011 due to further delay of the exploration.The 13th Kayangel State Legislature (KSL) passed a resolution – Resolution No. 13-01-1RS – on August 01, 2008 to approve and ratify both amendments to the agreement between the state and PPE.The Speaker of KSL, Harrington Olebuu, in a phone interview, said that no one exists as a middleman between PPE and Kayangel State.  In addition, he said that KSL endorses the agreement, as do the people of Kayangel State.Chiokai further added that if there is a middleman between Kayangel State and PPE, “he, she, or it exists in the political agenda of the person who aired the allegations.”  Moreover, Kayangel State Government deals directly with PPE.“The members of Kayangel State Legislature, the traditional leaders of the state, the citizens, and I deserve a little respect and courtesy; and that we will not stand to be pawns in someone else’s political hoopla,” state Chiokai.