The Philippine Supreme Court, in an en banc resolution dated April 28, 2009, upheld its earlier decision, ordering the City of Manila to enforce City Ordinance 8027 and directing Shell, Chevron and Petron to submit to the Manila Regional Trial Court (RTC) a comprehensive plan and relocation schedule from Pandacan. |
Pilipinas Shell respects the Supreme Court’s decision and will continue actions already taken towards compliance. In May 2008, Shell has submitted a Pandacan Comprehensive Relocation Plan to Branch 39 of the Manila RTC, together with joint venture partners under the Pandacan Depot Services Inc., Chevron and Petron. The said relocation plan outlined key considerations in site selection, site options, timelines, government support required and facilities required to meet Health, Safety, Security and Environment (HSSE) standards. Further, in April 2009, we submitted updates on the Relocation Plan, in compliance with the Manila RTC order.
With the Supreme Court ruling, relocation shall now be a more difficult and challenging process, as there is no assurance that the next local government host will not evict the depots. The realities of spot zoning and the lack of counterpart legal and national regulatory policy for the establishment and relocation of petroleum depots and terminals will now deprive the oil industry of any clear alternatives.
Shell has always maintained that its Pandacan depot operations are safe and secure; compliant with both local and international standards and that the public concerns on safety and security have been and are continuously being addressed. We likewise continue to monitor developments in the City Council of Manila (Sanggunian) specifically regarding draft Ordinance 7177, which creates a medium industrial zone and heavy industrial zone in the area of Pandacan which will allow the continued stay of the Pandacan Terminals. We note that the Supreme Court’s March 2007 decision made reference to this possibility.
Meanwhile, Shell will continue to work closely with the City of Manila, the Department of Energy and our customers and suppliers to find ways to minimise the disruption that would result with the closure of the Pandacan depot.
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