Unresolved Dispute Threatens Mia Mottley Administration's Cleanup Plans at Needham's Point Oil Refinery Site

The Mia Mottley administration’s plans to clean up the abandoned Mobile oil refinery site at Needham’s Point could be derailed by an unresolved two-decade-old dispute with a Canadian environmental remediation firm, it emerged on Monday.

Godknows Itamunoala, chairman and chief executive officer of Fiton Technologies Corporation, warned that his company’s unsettled arbitration case against the government could pose legal problems for the proposed clean-up operation.

Fiton Technologies was originally retained in 2004 to remediate the site but triggered an arbitration clause in 2008 after a disagreement with the government. Itamunoala revealed that a proposed out-of-court settlement, offered about two years after a 2013 High Court judgment, has still not been honoured.

“The verbal offer was made about two years after the judgement. The amount was US$2.5 million [$5 million] which translates to almost US$10 million [$20 million],” Itamunoala said, noting that the sum would have substantially increased based on current estimates and inflation.

The dispute stems from a complex legal battle that saw the High Court dismiss a government summons to set aside a Consent Order for the appointment of an arbitrator in 2013. The court also rejected attempts to remove the appointed arbitrator, senior Canadian attorney V V Veeder, citing the government’s concerns about his independence and impartiality.

Despite the ongoing legal wrangle, the government appears to be moving forward with plans to assess and clean up the site.Dr William Duguid, senior minister of town and country development planning and infrastructure, confirmed that proposals for site assessment are currently under review.

“That went out for Request For Proposals [RFP]. So, those are being assessed now,” Duguid told Barbados TODAY. Those proposals are going through the technical and financial assessments now. It is a request for proposals to do a clean up of the area.”

He elaborated that the assessment would determine the extent of contamination, including its depth and spread. “It is called a site characterisation, that is what it is. It is an assessment of the characterisation of the site,” he explained.

However, Itamunoala cautioned against a limited clean-up operation. “Any attempt to clean up only inside the Mobile site and not the external areas surrounding it where the oil contaminants have spread, would be an exercise in futility and a waste of money,” he warned.

The contamination issue dates back to the refinery’s closure a quarter-century ago, with evidence of crude oil pollution raising environmental concerns. The site’s proximity to two prominent hotels – Hilton Barbados Resort and Radisson Aquatica Resort – and the popular Pebbles Beach has heightened anxieties about potential hazards.

A scientific analysis conducted in June 2002, in preparation for the construction of the new Hilton hotel, revealed the extent of the contamination.

Barbados TODAY was able to examine the report which stated that although it was not originally part of Fiton’s mandate, the firm conducted a site assessment to determine the full area and depth of contamination and find any additional sources of contamination other than the leakage of fuel oils from the tanks used to operate the old Hilton’s boilers.

The report, prepared under the Owen Arthur administration for the Ministry of Physical Development and Environment, recommended that the site’s soils and groundwater be cleaned up to Dutch ‘C’ cleanup standard or better – a globally recognised benchmark for environmental remediation.

Fiton Technologies Corporation was initially retained by Needham’s Point Holdings Ltd — the Hilton’s state-owned holding company — to apply its proprietary biocatalysis process for the clean-up. Their assessment uncovered multiple sources of contamination, contrary to previous investigations.

The analysts discovered four underground pipelines originating from the former Mobil Refinery, traversing the Needham’s Point property boundary. Three of these pipelines were found to contain dark heavy petroleum oils under pressure, while the fourth held thick, highly viscous oily residues.

Alarmingly, two of the pipelines were discharging their contents directly into areas being cleaned up, undermining remediation efforts. The contamination was found to have spread beyond the immediate site, affecting the nearby Military Cemetery at Gravesend and the Barbados Light and Power Company headquarters.

Despite encountering delays, Fiton reported that their clean-up process achieved levels exceeding the Dutch ‘C’ requirements within three weeks of effective work time.

When the contamination’s extent became clear during the 2002 analysis, it revealed a porous soil matrix of coral, gravel, and loose/dense fine/medium sand highly “susceptible to migration of contaminants”. This geological composition has likely contributed to the spread of pollutants beyond the immediate site.

The discovery of the four pipelines from the former Mobil Refinery posed a particular challenge. “Three of the pipelines were full of dark heavy petroleum oils under pressure. The fourth contained thick highly viscous oily residues,” the report stated. Two of these pipelines were found to be actively discharging their contents, complicating clean-up efforts.

The contamination’s reach extended to the Military Cemetery and Light and Power’s base, highlighting the broader environmental impact of the abandoned refinery.

Despite these challenges, Fiton’s initial clean-up efforts showed promise. “The cleanup levels achieved far exceeded the Dutch ‘C’ cleanup requirements,” the report noted, adding that “the entire cleanup was completed within three weeks of effective work time.”

As the administration mulls fresh proposals for site assessment and clean-up of the old refinery, the unresolved arbitration with Fiton Technologies looms large. With the original settlement offer now potentially quadrupled due to inflation, and Itamunoala’s warning against partial remediation, the Mottley administration faces a costly path ahead in addressing a long-standing environmental issue near two icons of tourism — Hilton Barbados, the taxpayer-owned crown jewel in the hotel industry, and Pebbles, one of the island’s most popular beaches.

emmanueljoseph@barbadostoday.bb