Archived press release

Philippines Supreme Court orders Shell's oil depot closure

7 March 2007

Friends of the Earth International welcomed today's ruling by the Philippines Supreme Court, ordering the Manila City Government to shut down Shell's Pandacan oil depot [1]. The Mayor will now have to implement a 2001 ruling which gave the depot six months to close down.

Friends of the Earth International and local groups, the Fenceline Community for Human Safety and Environmental Protection and United Front to Oust Oil Depots, have been working for several years to close down the Pandacan oil depot and force its operators, including Shell, to implement proper environmental standards.

Since the 2001 ruling, Ordinance 8027, came into force, Shell has managed to avoid closure by signing various agreements with the Manila City Government. Today's ruling makes it clear that Shell will be forced to obey the law in Manila.

Paul de Clerck, corporate campaigner at Friends of the Earth International said:

"In 2001 the City Council of Manila decided that the oil depot should be closed. The City Mayor and Shell have not respected that decision. Today's ruling by the Supreme Court makes it clear that Shell will have to start the process of shutting down the depot immediately."

Vladimir Cabigao, lawyer for the Fenceline Community for Human Safety and Environmental Protection and one of the proponents of the case filed to the Supreme Court said:

"This is a landmark case in the Philippines as far as environmental justice is concerned. The Pandacan oil depot services 80% of the petrol requirements of the Philippines. In the decision, the Supreme Court has upheld the general welfare of the people over the private and pecuniary interest of the oil companies. The Court has placed paramount importance on the health and safety of the people. This is a welcome precedent for Philippine environmental justice"

The Pandacan oil depot is owned by Pilipinas Shell Petroleum Corporation, Caltex (Philippines) Inc. and Petron Corporation. It is located in a densely populated neighbourhood of Manila, posing enormous health and safety concerns to local inhabitants and the environment. Odours and fumes emanating from the oil depot are continual source of complaints from local residents who are exposed to carcinogens, neurological and other harmful toxins.[2]

In June 2006 a complaint that Shell Pilipinas violated the OECD Guidelines for Multinational Corporations was filed in the Netherlands. That case is still pending.

Notes

[1] The Decision of the Supreme Court can be found at: www.supremecourt.gov.ph/jurisprudence/2007/march2007/156052.htm

[2] Detailed information on the Pandacan Oil Depot can be found at page 37-40 of the report "Use your profit to clean up your mess": www.milieudefensie.nl/globalisering/publicaties/rapporten/shellrapport

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Published by Friends of the Earth Trust