Through a ruling, the Constitutional Court said that popular consultations can no longer forbid or decide on the future of industry activities in the regions. Where do communities stand now?
Better prices should translate into better royalties’ resources for producing regions, but there are other sectors pushing for the money. These and other stories in our periodic Royalties summary.
A decision by the Constitutional Court on Mansarovar Energy’s action for the protection of its constitutional rights (“tutela”) had been widely anticipated. The hope was that it would clarify the issue of whether municipalities can block extractive industry activities. We now have the decision, but questions still remain on the practical implications of the ruling. The situation has been muddied by a State Council decision reaffirming the obligation of local governments to ask their citizens what they think about major issues. We asked Inés-Elvira Vesga and Leopoldo Olavarría of Norton Rose Fulbright for their interpretation of these apparently contradictory decisions. Below are their views:
Once again, industry firms like Ecopetrol (NYSE:EC), Parex and Equion, among others, showed their commitment to their areas of influence. These and other Corporate Social Responsibility (CSR) stories in our periodic summary.
The Colombian Oil Association (ACP) and the Chamber of Goods and Services (Campetrol) hosted the “Regional Encounters: united for a sustainable development” event, where they discussed industry issues.
Last week, the Constitutional Court revoked the popular consultation (referendum) that took place in the municipality of Cumaral (Meta), in June 2016. Experts debated the matter.
Communities have said ‘No’ to the industry in different occasions, but once local authorities heard of a possible increase in royalties’ resources, popular consultations started to seem ‘inconvenient,’ all of a sudden.
In a voting session of five against one, the Constitutional Court revoked the popular consultation that took place in the municipality of Cumaral (Meta), in June 2016.
Important firms like Ecopetrol (NYSE:EC), Ocensa and Frontera Energy (TSE: FEC) spoke about the projects they are currently developing to improve the quality of life in their areas of influence. These and other Corporate Social Responsibility (CSR) stories in our periodic summary.
The reopened debate about fracking in Colombia reminded me, once again, that we live in a world where nothing is true.
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