Respondent's Post Hearing Brief
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INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DISPUTES GABRIEL RESOURCES LTD. AND GABRIEL RESOURCES (JERSEY) LTD. Claimants VS. ROMANIA Respondent ICSID CASE NO. ARB/15/31 RESPONDENT’S POST HEARING BRIEF 18 FEBRUARY 2021 LALIVE Gabriel Resources et al. v. Romania Respondent’s Post Hearing Brief 18 February 2021 TABLE OF CONTENTS 1 INTRODUCTION .................................................................. 1 2 ROMANIA HAS AT ALL TIMES ACCORDED FAIR AND EQUITABLE TREATMENT TO THE CLAIMANTS’ INVESTMENTS .................................................................... 8 2.1 The Ministry of Environment’s Non-Issuance of the Environmental Permit Does Not Amount to Failure to Provide Fair and Equitable Treatment ......................................... 9 2.1.1 The TAC and the Ministry of Environment Had Discretion in Deciding Whether to Issue the Permit and in Deciding the Conditions to Be Attached to the Permit ............................................................................................... 9 2.1.2 By November 2011, the Ministry of Environment Was Nowhere Near Deciding on the Environmental Permit ....... 14 2.1.3 The November 2011 TAC Meeting Did Not Mark the End of the EIA Review Process ........................................... 17 2.1.4 RMGC Failed to Meet (or Delayed in Meeting) Environmental Permit Requirements .................................. 22 2.1.4.1 RMGC Did Not Secure the Ministry of Culture Endorsement until 2013 ................................................. 22 2.1.4.2 RMGC Did Not Secure the Approval of the Waste Management Plan until May 2013 ................................ 25 2.1.4.3 RMGC Did Not Have (Approved) Urban Plans ............ 26 2.1.4.4 RMGC Did Not Have a Valid Urban Certificate ........... 29 2.1.4.5 RMGC Did Not Comply with the Water Framework Directive ........................................................................ 31 2.1.4.6 RMGC Failed to Secure the Surface Rights .................. 34 ii Gabriel Resources et al. v. Romania Respondent’s Post Hearing Brief 18 February 2021 RMGC Needed the Surface Rights for the EIA Review Process .............................................................. 34 RMGC Needed the Surface Rights to the Project Area, the Buffer Zone, and the Historical Center .......... 36 RMGC Needed the Surface Rights of Certain Recalcitrant Landowners to Start the Project (and thus Could not Defer the Acquisition of those Surface Rights) .............................................................. 38 RMGC Failed to Secure the Surface Rights .................. 38 2.1.4.7 RMGC Did Not Provide Information Regarding Reforestation.................................................................. 42 2.1.4.8 RMGC Failed to Address Critical Technical Issues ...... 42 Cyanide Transportation and Management ..................... 43 Risk of Tailings Management Facility Dam Failure and Pond Seepage .......................................................... 49 The Lack of Sufficient Research at Orlea ..................... 52 Absence of Information Regarding Post-Closure Land Use ........................................................................ 54 2.1.5 The EIA Review Process Was Ongoing in 2012 ................. 56 2.1.6 The EIA Review Process Was Ongoing in 2013-2014 ........ 58 2.2 The Government Did Not Coerce RMGC or the Claimants and Thus Did Not Fail to Provide Fair and Equitable Treatment to the Claimants’ Investments .................................. 62 2.2.1 The Various Governments Did Not Hold Up Permitting ............................................................................................. 63 2.2.1.1 The EIA Review Process Was Not Held Up by the Various Governments .................................................... 64 iii Gabriel Resources et al. v. Romania Respondent’s Post Hearing Brief 18 February 2021 2.2.1.2 The Boc Governments Did Not Hold Up the Permitting Process (between 1 August 2011 and 6 February 2012) .............................................................. 65 There Was No Political Interference in the Permitting Process During the Boc Governments ......... 66 There Was No Political Interference During the November 2011 TAC Meeting ...................................... 72 Public Statements to the Press During the Boc Governments Are Not Measures and Cannot Amount to Governmental Interference in Permitting ....................................................................................... 78 2.2.1.3 The Ungureanu Government Did Not Hold Up the Permitting Process (between 9 February and 7 May 2012) .............................................................................. 79 2.2.1.4 The Ponta Governments Did Not Hold Up the Permitting Process (between 7 May 2012 and 9 September 2013) ............................................................ 83 2.2.2 The Various Governments Did Not Demand an “Increase [of] the State’s Economic Interest in the Project” Coercively or Otherwise ........................................ 85 2.2.2.1 The Governments Did Not Link the Commercial Negotiations with the Permitting ................................... 86 The Claimants Negotiated Freely with the Boc Government ................................................................... 86 The Boc Government Did Not Link the Commercial Renegotiation with the Permitting ................................. 91 The Ungureanu and Ponta Governments Did Not Link the Commercial Renegotiation with the Permitting ...................................................................... 93 iv Gabriel Resources et al. v. Romania Respondent’s Post Hearing Brief 18 February 2021 2.2.2.2 The Claimants Sought, but the Government Declined, to Link the Commercial Negotiations with the Permitting ........................................................ 95 2.2.3 The Various Governments Did Not Reject the Claimants’ Offers ................................................................. 96 2.3 The Submission of the Roşia Montană Law to Parliament and Its Rejection by Parliament Do Not Amount to a Failure to Provide Fair and Equitable Treatment ...................... 98 2.3.1 The Submission of the Roșia Montană Law to Parliament Did Not Breach the Fair and Equitable Treatment Provisions of the BITs ........................................ 99 2.3.1.1 The Roșia Montană Law Was an Attempt to Facilitate the Project by Mitigating RMGC’s Inability to Meet Permitting Requirements ................... 99 2.3.1.2 The Respondent Did Not Impose the Roşia Montană Law as a Condition of the Project’s Progress ....................................................................... 100 2.3.1.3 The Roşia Montană Law Was Prepared and Drafted with the Claimants’ Willing Cooperation .................... 102 2.3.1.4 The Roșia Montană Law Would Have Helped RMGC Overcome the Issues that the Project Was Facing .......................................................................... 103 2.3.2 Parliament’s Rejection of the Roşia Montană Law Did Not Breach the Fair and Equitable Treatment Provisions of the BITs ......................................................................... 107 2.4 RMGC Never Overcame the Social Opposition to the Project ..................................................................................... 109 2.4.1 From the Outset, RMGC Has Faced Social Opposition .... 110 2.4.2 Social Opposition Disrupted the Permitting Process ......... 112 v Gabriel Resources et al. v. Romania Respondent’s Post Hearing Brief 18 February 2021 2.4.2.1 Social Opposition Disrupted the EIA Review Process ......................................................................... 112 2.4.2.2 The NGOs’ Litigation Campaign Disrupted the Permitting Process ....................................................... 113 Legal Challenges Related to Urban Plans ................... 114 Legal Challenges to Urban Certificates ....................... 114 Legal Challenges to ADCs .......................................... 115 2.4.2.3 Social Opposition Prevented RMGC from Obtaining the Surface Rights ....................................... 116 2.4.2.4 Project Opponents Petitioned the European Parliament .................................................................... 116 2.4.3 RMGC, Not the State, Was Responsible for Managing the Social Opposition ........................................................ 116 2.4.3.1 RMGC Was Responsible for Obtaining the Social License ......................................................................... 116 2.4.3.2 The State Did Not Interfere with RMGC’s Attempts to Manage the Social Opposition ................................ 118 2.4.3.3 The State Defended in Court the Approvals and Permits for the Project ................................................. 118 2.4.3.4 The Roșia Montană Law Would Have Mitigated the Project’s Lack of Social Legitimacy ............................ 119 2.4.4 RMGC Failed to Manage the Social Opposition ............... 120 2.4.4.1 RMGC Failed to Engage with Project Opponents and Address Their Concerns ........................................ 120 2.4.4.2 The Claimants Inflate and Mischaracterize the Evidence of Support for the Project ............................ 123 “Thank You” Letters Sent to RMGC Do Not Demonstrate Support ................................................... 123 vi Gabriel Resources et al. v. Romania Respondent’s Post Hearing Brief 18 February 2021 RMGC’s Polls and Surveys Are Not Reliable Evidence of Support .................................................... 123 Polls Commissioned by