In an interview, Remengesau said the planned oil exploration in Palau runs in contrast to the country’s environmental protection policy.
“This is a great lesson fro Palau that the interest of pursuing money is not always the right thing to do,” he told reporters.
He said given the lack of resources and capacity of Palau to address such a disaster, an oil spill with the same magnitude will be the end for the country’s tourism industry.
Former president Remengesau ‘s administration was not keen on the oil exploration due to the lack of a legal framework.
He also added that the proponents behind the exploration “are middlemen who only signs the contract” and then will solicit investors.
Earlier a proposed legislation was introduced to establish a petroleum law to put in place a legal framework for oil and gas exploration in Palau.
Senate Bill 8-135 introduced by Sen. Adalbert Eledui took into account the recommendations of the Oil and Gas Task Force.
The bill also places the exclusive ownership rights to each state to any oil or gas resources found in the area from land to 12 nautical miles seaward from traditional baselines.
The measure also tasks the Ministry of Natural Resources, Environment and Tourism to set the minimum and maximum royalty rates for both the national and the state governments.
The oil agreement executed between Palau Pacific Energy Exploration and the national government pegs the royalty rate at 12.5 percent.
Earlier, Palau has received a grant from the World Bank in the amount of $ 223,324.57 equivalent toward the cost of the Palau Oil and Gas Technical Assistance Project. The task force was created during Remengesau’s administration.
The measure is much anticipated due to the controversial signing of the oil agreement by President Johnson Toribiong even before a legal framework is put in place.
Remengesau said the contract executed by Toribiong does not contain provision on environmental clean-up nor who would pay if an oil spill occurs.
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