In a three-page committee report yesterday , it stated, “ we have concluded that there is a substantial constitutional question as to whether the president has authority to enter into contract such as this one without the Olbiil Era Kelulau first exercising its authority under the Palau Constitution to regulate natural resources in Palau.”
The panel, chaired by Sen. Adalbert Eledui stated that the agreement with Palau Pacific Energy Exploration (PPE) falls under OEK’s authority.
The committee said Toribiong overstepped his bounds with regard to the oil and gas exploration.
It noted that Toribiong cannot execute an oil and gas exploration agreement without first receiving the approval and legislative guidance of the OEK.
It noted that setting of rental fees, royalty rates are the work of the OEK not the President.
In a letter to Senate President Mlib Tmetuchl, members of the committee recommended that either the Senate adopt a resolution expressing the sense that Toribiong overstepped his authority by entering into the agreement or enact a law that regulates the ownership, exploration and extraction of oil and gas for Palau.
It said that this legislation could be based on the recommendations of the Oil and Gas Task Force.
The legislation will apply to all exploration and extraction activities in Palau.
The members of the committee who signed the report were Sens. Eledui, Alfonso Diaz, Raynold Oilouch, Surangel Whipps Jr and Tommy Remengesau Jr.
The panel said the Senate should take action on the president’s executing the agreement.
“Not doing so will set a precedent under which the president would be able to take unilateral action on the expense of both the OEK’s regulatory power and the fundamental operation this Republic’s founding document,” the panel stated.
