Lessons Not Learned The Other Shell Report 2004 Dedicated to the memory of Ken Saro-Wiwa

“My lord, we all stand before history. I am a man of peace. . . . Appalled by the denigrating poverty of my people who live on a richly-endowed land . . . anxious to preserve their right to life and to a decent living, and determined to usher into this country . . . a fair and just democratic system which protects everyone and every ethnic group and gives us all a valid claim to human civilization. I have devoted all my intellectual and material resources, my very life, to a cause in which I have total belief and from which I cannot be blackmailed or intimidated. I have no doubt at all about the ultimate success of my cause . . . . Not impris- onment nor death can stop our ultimate victory.”

—Ken Saro-Wiwa’s final statement before his execution on 10 November 1995 Guide to contents 1

Guide to contents

2 Foreword from Tony Juniper & Vera Dalm This report is based largely on evidence from people Tony Juniper, Executive Director, Friends of the Earth (England, around the world who live in the shadows of Shell’s vari- Wales & Northern Ireland) & Vera Dalm, Director, Milieudefensie ous operations. This report is written on behalf of (Friends of the Earth Netherlands) Friends of the Earth (FOE); Advocates for Environmental Human Rights; Coletivo Alternative Verde; Community In- 3 The Year in Review power Development Association; Concerned Citizens of Norco; Environmental Rights Action (FOE ); 4 , Nigeria Global Community Monitor; groundWork (FOE South Injustice as a Shell Trademark Africa); Humane Care Foundation Curacao; Louisiana Bucket Brigade; Niger-Delta Project for the Environment, 7 Durban, South Africa Human Rights and Development; Pacific Environment Communities Doomed with Aging Refinery Watch; Sakhalin Environment Watch; Shell to Sea; South Durban Community Environmental Alliance; and 10 Sao Paulo, Brazil United Front to Oust Depots. Shell Forced to Clean Up Contamination & Conduct Medical Report Coordinators: Monique Harden and Nathalie Examinations of Workers Walker, Advocates for Environmental Human Rights.

12 Sakhalin Island, Russia Contributors: Cesar Augusto Guimarães Pereira, Oil Slicks & Slick Talk Coletivo Alternative Verde; Hilton Kelley, Community In- power Development Association; Denny Larson, Global Community Monitor; Bobby Peek, groundWork (FOE 15 , Ireland South Africa); Norbert George, Humane Care From Devastating Beauty to Devastating Ruin Foundation Curacao; Patrick Naagbanton, Niger-Delta Project for the Environment, Human Rights and 17 , the Development; Doug Norlen and David Gordon, Pacific Environment Watch; Dmitry Lisitsyn, Sakhalin Negotiating Substandard Environmental Controls Environment Watch; , Shell to Sea; Desmond D’Sa, South Durban Community Environmental 19 Curaçao, Netherlands Antilles Alliance; Wilma Subra, The Subra Company; and Shell CEO Leaves Behind a Mess Hope Tura and Chito Adofina, United Front to Oust Oil Depots.

21 Port Arthur, Texas, USA Editors: Monique Harden and Nathalie Walker, Shell Dismisses Refinery Malfunctions Harming Neighborhood Advocates for Environmental Human Rights; Hannah Griffiths, Friends of the Earth (England, Wales and 24 Norco & Coastal Louisiana, USA Northern Ireland); and Myrthe Verweij, Milieudefensie (Friends of the Earth Netherlands). Shell Ignores Dangerous Impacts Thanks to: Helen Burley, Alison Dilworth, Serge Marti, 26 Conclusion and Phil Michaels. Shell Demonstrates the Case for Mandatory Corporate Accountability Design and Printing: Design Action Collective and Inkworks Press. Printed on 100% post-consumer recycled paper, processed chlorine free. 28 Endnotes 2 The Other Shell Report

Foreward from Tony Juniper and Vera Dalm

Dear Stakeholder, “Increased accountability” is one of the four reasons for the proposed restructuring of the company, but the proposals men- riends of the Earth is privileged to present this third alter- tion only accountability to shareholders. Some of Shell’s broad- Fnative Shell Corporate Social Responsibility (CSR) report er stakeholders come together in this report to demand a wider on behalf of several of the many communities that live on accountability—accountability to all stakeholders. As Shell has Shell’s “fencelines”—next to Shell’s refineries, depots and not learnt the lessons of the past two years and continues to pipelines. Lessons Not Learned—The Other Shell Report 2004 ignore their voices, the communities look elsewhere for meas- builds on reports of the past two years—Failing the Challenge ures that will enable them to hold the company accountable (2002) and Behind the Shine (2003)—which chronicled Shell’s for the ongoing impacts on their lives. impacts around the world. It gives updates of Shell’s woeful performance over the past year, documenting a consistent story The time has come for governments to act to hold Shell of the company pushing forward with business as usual, disre- responsible. Shell has demonstrated that it does not plan to garding the rights of its stakeholders. make meaningful change in this area. We call on the Governments of the United Kingdom and of the Netherlands The last two years have been turbulent times for Shell. The to reform our laws so that Shell and other multinational com- company’s overstating of its oil and gas reserves by 20 per cent panies are required to address the impacts of their activities on and the subsequent firing of its chairman and chief of explo- the environment and on human rights abroad including ration have shaken the company to its core. The ensuing mandatory social and environmental reporting; direct liability shockwaves have brought with them proposals for restructur- of directors for impacts of the company wherever it operates; ing on which shareholders will be asked to vote at the Annual and access to justice and redress in the company’s home courts General Meeting on 28 June 2005. so that stakeholders are able to hold companies like Shell The past two years have also been turbulent for Shell’s fence- accountable for their impacts. line communities. As this report shows, despite Shell’s public Only when Shell is legally accountable will we see real change commitment to Corporate Social Responsibility (CSR) and for its stakeholders, meaningful action on climate change, an specific promises it has made to communities, life on the authentic commitment to human rights and social and envi- fenceline has changed little. From Nigeria to Texas, the ronmental justice for all. The cases on the following pages Philippines to South Africa, Shell is failing to respect the envi- show the need for further strong action both by Shell and by ronment or the needs of local communities and Shell directors governments. remain as remote and unaccountable for their actions as they always have been.

Tony Juniper, Vera Dalm, Director, Executive Director, Milieudefensie Friends of the Earth (Friends of the Earth (England, Wales and Netherlands) Northern Ireland) Year in Review 3

The Year in Review

he year 2005 marks the 10th anniver- by claiming a commitment to human ers and Corporate Social Responsibility Tsary of the death of Ken Saro-Wiwa, rights and sustainable development. principles that deliver meaningful change the Nigerian author and activist who led on the ground are not part of this trans- Contrary to its claims, the corporate the Movement for the Survival of the formation. practices of Shell have not substantively Ogoni People (MOSOP), and mobilized changed from those that Ken Saro-Wiwa Shell continues to hold onto an industrial over 300,000 people to protest Shell’s protested against a decade ago. In com- infrastructure that is hazardous to people devastation of their native farmlands and munities suffering from Shell’s toxic and and the environment, to operate aging oil numerous oil spills in the wetlands, hazardous operations, the company con- refineries that emit carcinogenic chemi- rivers, and streams of the Niger Delta. tinues to demonstrate that its commit- cals and other harmful toxins into neigh- Ken Saro-Wiwa and 13 other MOSOP ment is paper thin. This report presents borhoods, to neglect contamination that leaders were imprisoned based on unsub- case studies of communities in five conti- poisons the environment and damages stantiated allegations. They were brought nents, where Shell daily demonstrates human health, to endanger the survival before a secret military tribunal that sen- unconscionable disregard for human lives of species, and to negotiate with local tenced them to death by hanging. On 10 and the environment: Durban, South governments for substandard environ- November 1995, nine of the men were Africa; Sao Paulo, Brazil; Sakhalin Island, mental controls. The case studies in this summarily executed without any oppor- Russia; County Mayo, Ireland; Pandacan, report represent the real impacts of tunity for appeal. the Philippines; Port Arthur, Texas, Shell’s corporate governance. USA; Norco and coastal Louisiana, USA; Around the world, people are uniting to Given Shell’s dominant position in Curaçao, Netherlands Antilles; and the denounce the unjust corporate gover- Nigeria and its historic relationship with Niger Delta, Nigeria. nance that creates and controls the poli- Nigerian military dictatorships, Shell was This year, with the proposals for restruc- cies and practices of Shell. The the target of international outrage over turing the company, Shell is attempting a courageous and visionary spirit of Ken the brutal killing of Ken Saro-Wiwa and transformation that involves establishing Saro-Wiwa lives on in this global strug- the MOSOP members. In response, Shell a new structure of corporate governance. gle for justice, health, and a sustainable sought to transform its corporate image Yet accountability to its wider stakehold- environment. 4 The Other Shell Report

Location reports Niger Delta: Injustice as a Shell Trademark

Nigeria

n Nigeria, Shell operates under the Ogoni and other peoples in the Niger IShell Development Delta. In 1995, Ken Saro-Wiwa and 13 Company (SPDC), a joint venture of other MOSOP leaders were subjected to a Shell and the Nigerian government. The secret tribunal that, based on unsubstan- government is now nominally a democra- tiated allegations, sentenced nine of the cy, but has a long and brutal history of men to death by hanging. All nine were military dictatorships.1 summarily executed without any oppor- tunity for appeal.4 Ogoniland and the half a million Ogoni people in the southern part of the Niger At the time of the execution, Shell wield- Delta region have often taken center ed significant influence over the Nigerian stage in the international media on military dictatorship through the prof- Nigeria. The Delta was once considered itable SPDC joint venture between Shell “the breadbasket” of Nigeria because of and the Nigerian government. However, its rich ecosystem, where people cultivat- Shell denied that it had any role in the ed fertile farmlands and benefited from execution of the MOSOP leaders.5 Shell 2 abundant fisheries. Shell and other oil even went so far as to claim that it had companies have transformed this once no moral obligation to intervene in the pristine area into a virtual wasteland military tribunal on behalf of the bearing deep scars from gas flaring and MOSOP leaders,6 although it had done so 3 oil spills. on at least one occasion on behalf of a Shell employee who faced murder charges In 1995, the execution of poet and in Nigeria.7 human rights activist Ken Saro-Wiwa and eight other activists unleashed inter- Goi, Nigeria: child swimming in waters polluted by the October 2004 crude from a Shell pipeline fire. national outrage over the situation in the (Serge Marti/Friends of the Earth) Niger Delta. Ken Saro-Wiwa was a leader of an organization of Ogoni people called the Movement for the Survival of the Ogoni People (MOSOP) which demanded that Shell take responsibility for its massive environmental devastation of their homeland and denounced the injustices that Shell has inflicted on the Location Reports 5

Lessons Not Learned tions in Ogoniland in 1993, an infra- Ogoni people believe that the real culprit structure of aging pipelines that should is Shell’s failure to properly maintain and In 1996, Shell launched a public rela- have been replaced at least 25 years ago upgrade its oil pipelines and other infra- tions campaign to repair its negative criss-crosses the Delta. Leaks and oil structure.11 image among customers and investors in spills are common place. One account western countries. It re-introduced itself determined that for the relatively short During a visit in April 2005 to the Niger as a company with human rights, social period between 1976 and 1980, there Delta, Friends of the Earth encountered a responsibility, and sustainable develop- were 784 oil spills from Shell’s malfunc- Shell contractor involved in a “clean-up” ment at the core of its values and prac- tioning operations.8 operation near Rukpopkwu, a community tices. However, ten years on, Shell affected by a December 2004 spill. The continues to demonstrate that it has Over the past year, several of Shell’s oil clean up involved little more than the failed to learn important lessons. spills and leaks have polluted Ogoniland turning of the land, placing the oil just and caused fires including on the surface below the surface.12 Shell’s environmental legacy in the Delta of water that burned fishing canoes.9 is strongly evident today. Although the Shell claims that these oil spills are the During the same visit, an old farmer, who company temporarily suspended opera- consequence of sabotage;10 however, the had suffered the effects of numerous fires

Aftermath of massive Shell oil pipeline spill and fire that has ruined mangroves and farmlands in Goi. (Serge Marti/Friends of the Earth) 6 The Other Shell Report

The Year at a Glance

2004 Several oil spills and leaks from Shell January 2005 Shell states that it may miss the April 2005 Demolition of a Port Harcourt shan- pipes and infrastructure have occurred over the 2008 deadline for ending gas flaring (an illegal ty town known locally as the Agip Waterfront is past year. Without comprehensive monitoring, it practice) in Nigeria. Gas flaring continues completed with no provision made to re-house is impossible to document them all, however, throughout the year.27 the tens of thousands of inhabitants. Many they include: inhabitants had fled to the area from Ogoniland Members of the Odioma February 2005 during the Ogoni crisis. One person is shot and Oil leak near Community in Bayelsa State protest against Shell August/September 2004 killed during the demolition in unclear circum- Korokoro-Tai in Ogoniland, which had leaked constructing an oil flow station without preparing stances; and several people who attempted to and been repaired on other occasions.24 an environmental impact assessment.28 At least resist forcible removal from their homes are 15 people are killed and many others injured Oil spill at Mogho along Shell’s arrested. Gangs, apparently linked to the gov- October 2004 when soldiers from the Joint Task Force attacked Trans Niger Pipeline. Crude oil spilled for 24 ernment, initially entered the area in an attempt the town of Odioma during a military operation. hours, affecting a wetland with a fresh water to force people to leave. They were followed The aim of the operation, according to officials, stream that discharges into an estuarine man- several days later by bulldozers backed by the is to reduce tensions between communities and 30 grove at Goi. Tidal fluxes then spread the oil security forces. to identify and arrest youths allegedly involved in scum to neighboring littoral communities.25 the killing of 12 community members earlier in October 2004 Violence in Ogoniland is the month. Many houses in the town are also viewed by many as part of a campaign for torched during the operation, leaving scores of 29 Shell’s operations to be reinstated there.26 people displaced and without homes.

trated campaign of intimidation to facili- “Now the fire [gas flare] is not burning we tate the re-institution of Shell’s opera- can rest now. It gave us so much heat. In tions in Ogoniland, which were the rain water there were so many things temporarily suspended in 1993.15 The from the flaring that disturb our farming Ogoni people are outraged by these and even the fishes”. efforts to cut off public debate about the massive and still unresolved problems —Old Man from Ogoniland, 20 caused by Shell’s operations.16 Tensions Rivers State Nigeria are building as the Ogoni people have Under pressure from Nigerian peoples threatened mass action against SPDC if and the international community, Shell 17 police are not withdrawn from the area. has committed to eliminating gas flaring in the Niger Delta by 2008.21 However, Sign posted at a Shell facility in Nigeria imploring Empty Promise to End Gas Flaring others to do what Shell has never done. (Alison Shell is now publicly stating that it may Dilworth/Friends of the Earth) Gas is flared in Nigeria 24 hours a day, miss the deadline for ending gas flaring, producing deafening noise and pollution. and has actually increased gas flaring and oil spills near Goi, Ogoniland, since 2003.22 resulting in lost mangroves, aquatic life Gas flaring has severe health conse- and fish ponds, told Friends of the Earth: quences and is a primary contributor to a Although the Nigerian government is “At my age I am supposed to have a lit- host of environmental problems that poised to impose penalties on Shell if it tle rest and these resources which I have include acid rain in the Niger Delta18 and fails to meet the deadline, Shell has established should have fed me. But Shell significant greenhouse gas emissions.19 demonstrated its disregard for such gov- has finished everything”.13 ernmental orders. Most recently, Shell has While communities in Ogoniland live ignored a governmental order requiring Shell is at the center of another human with the legacy of uncleared oil spills, the company immediately to pay $1 bil- rights controversy in Ogoniland today. and the constant threat of new spills and lion USD, and the balance of $500 mil- MOSOP believes that the police are environmental damage, no gas has been lion USD, over five years in restitution instigating violence in Ogoniland, flared in Ogoniland since the suspension for its extensive environmental damage including kidnapping and assaulting of operations. Community representatives in Nigeria.23 community members with machetes.14 are adamant that this has brought clear MOSOP views the use of troops to bru- improvements. talize Ogoni people as part of an orches- Location Reports 7

Location reports Durban: Communities Doomed with Aging Refinery

South Africa

outh Africa’s largest is a Lord Oxburgh Faces the Truth Sjoint venture between Shell and British Petroleum (BP), known as the Plans for Lord Oxburgh’s visit to Durban South African Petroleum Refinery fell short of his prior commitment. (SAPREF). Fenceline neighbours of SDCEA and groundWork were only SAPREF live in fear of the explosions, given nine-days notice of Lord Oxburgh’s pipeline leaks, and fires that occur regu- arrival and were told that he did not larly at this refinery. SAPREF has a poor plan to tour the neighborhoods, where he record of polluting communities, injur- would have been able meet local resi- ing workers, misleading the public, and dents and witness first-hand the toxic withholding information. impacts of SAPREF. Instead, Shell planned a 60-minute meeting on the For several years, South Durban SAPREF site.31 This attempt to limit Community Environmental Alliance community participation proved futile, as (SDCEA), a non-governmental communi- over 40 residents, a journalist, and two ty organization, and groundWork photographers came to the meeting. (Friends of the Earth, South Africa) have SDCEA and groundWork each gave a sought to engage the senior management presentation to Lord Oxburgh document- of Shell in directly addressing the signifi- ing the disrespect that Shell has shown The price for dirty air in Durban: Father treats son with asthma inhaler and medicine. (SDCEA) cant problems at SAPREF. Finally, on 5 local residents, and the severe environ- March 2005, Lord Oxburgh, current mental damage that SAPREF has caused. Chair of the Shell Transport and Trading Company’s Board of Directors, traveled During this meeting, Lord Oxburgh to South Durban. His visit to South admitted that the SAPREF refinery is 32 Africa was to fulfill a promise he made to “ageing and needed attention”. He fur- Desmond D’Sa, Director of SDCEA, dur- ther stated: “The community health ing Shell’s annual general meeting in issues concern us. We will do our best to London in 2004, where Lord Oxburgh find a solution that will be of benefit to 33 committed to tour the South Durban both parties”. So, why has Shell not neighbourhoods surrounding the begun upgrading SAPREF with technol- SAPREF refinery and listen to the con- ogy that will reduce and eliminate pollu- cerns of residents. tion and accidents? Such technology is employed by Shell at its refinery in Denmark.34 The meeting concluded with Lord Oxburgh informing residents that he would bring their concerns to the Shell board of directors. To date, Lord Oxburgh has failed to report anything back to the South Durban community. 8 The Other Shell Report

Black Wednesday: SAPREF pollutes entire Durban skyline with toxic black cloud on April 21, 2004. (Desmond D'Sa/SDCEA)

SAPREF Faces New South African SAPREF may well run afoul of this new Overhauling SAPREF Environmental Law environmental law. The air quality moni- toring program established by the SDCEA and groundWork are currently in South Africa has long lacked legally municipal government shows that, in negotiations with Shell to overhaul the binding air pollution regulations on a 2004, there were 117 instances when SAPREF refinery. One of the key out- national level, having only non-binding SAPREF's air pollution would violate the comes of that process must be a five-year guidelines and no enforcement authority. new environmental law.35 Such data is pollution reduction and operational plan This changed on 19 February 2005 when extremely useful to Durban residents, that goes beyond present legislative South Africa President Thabo Mbeki who cannot rely on SAPREF to honestly requirements to meet the pollution and signed into law the National present its pollution data. In February operational standards of the cleanest Environment Management: Air Quality 2000, SAPREF management admitted refineries globally. By February 2006, Act, 2004, which adopts the air quality that it had underreported sulfur dioxide this plan must be finalized, in consulta- guidelines established by the World emissions to the local government for the tion with the local community, and all Health Organisation (WHO). Durban last five years by as much as 12 tons a necessary expenditures to implement the residents, who have long suffered from day—or 10 million pounds a year—for a plan must be authorized. SAPREF’s pollution, view this law as a total of 4,380 tons.36 Lord Oxburgh positive step forward in defending their admitted in the meeting with Durban health and environment. For the first residents that Shell was “embarrassed” by time, SAPREF will have to comply with SAPREF’s underreporting of sulfur diox- legally binding pollution standards. ide emissions. Location Reports 9

A Brief History of Shell in South Durban The SAPREF refinery was built in 1963 The Year at a Glance during the height of the apartheid era. Ignoring the widespread call for an oil 12 January 2004 SAPREF pipeline leaks embargo and disinvestment from South 15,000 litres of marine into the Africa, SAPREF continued to operate Durban Harbour.37 throughout the dark days of apartheid in an area densely populated by poor Black, 21 April 2004 Black Wednesday: SAPREF Indian, and mixed race communities. releases massive black clouds of chemicals 38 Unfortunately, the end of apartheid has that extend for 20 kilometres over Durban. not changed the SAPREF refinery, which 5 September 2004 More than 1 ton of oil continues to wreak havoc on these com- is spilled from SAPREF’s single buoy munities of color. mooring.39

SAPREF’s pipelines extend for 84 kilo- 8 October 2004 Fire at the SAPREF power metres through the residential areas of station injures two workers, one of whom is south Durban, running at times right hospitalised and placed in intensive care.40 next to the fencelines of dense residential development. There have been several 27 November 2004 Three workers are injured in a fire while working on a section leaks over the last few years, contaminat- of SAPREF’s hydrocarbon flare line.41 ing Durban Harbour and protected wet- lands, and settling under residents’ SAPREF oil spill. (Denny Larson/GCM) 9 December 2004 SAPREF’s start up homes. This has resulted in illnesses process releases fine catalyst particulates into 42 requiring hospitalisation. Because Shell claims that it has voluntarily adopt- the environment. SAPREF does not use effective rust ed the guidelines of the Organisation for detection equipment, as is commonly December 2004 Air monitoring program Economic Co-operation and established by the municipal government used at Shell facilities in , leaks Development, as well as policies estab- shows that, in 2004, there were 117 from rusting pipelines are not uncom- lished by the European Union in its man- instances when SAPREF's air pollution would mon. For example, on 21 July 2001, a 43 agement and operation of the SAPREF violate the new environmental law. major fuel leak was caused by a rust refinery. But SAPREF’s massive pollution 45 defect in a SAPREF pipeline. Over 1.3 and frequent malfunctions demonstrate 5 March 2005 Lord Oxburgh travels to million litres of petrol have been recov- that such policies have little meaning on Durban and admits at a meeting with com- munity residents that SAPREF is “ageing and ered to date, and it is estimated that the ground. SAPREF has received ISO needed attention”.44 remediation efforts for this massive leak 14001 and 9001 certifications, but these 46 will continue until 2015. are voluntary industrial standards and do The SAPREF refinery also belches toxic not address the environmental impacts of clouds of black smoke into the air. Most the refinery on surrounding communities. recently, on 21 April 2004, Durban awoke to massive black clouds of SAPREF’s poorly combusted chemicals, which extended for more than 20 kilometres from south Durban into the affluent areas north of Durban.47 “Black Wednesday”, as the day has come to be known, will haunt residents for many years. 10 The Other Shell Report

Location reports Sao Paulo: Shell Forced to Clean Up Contamination & Conduct Medical Examinations of Workers

Brazil

or some 20 years, Shell produced pes- Furthermore, medical examinations have Fticides and stored oil products at its shown the presence of heavy metals and facilities at Vila Carioca and Paulinia in pesticides in the blood of people who live the state of Sao Paulo, Brazil. In January in the area, but who did not work for 2005, Shell was compelled to submit to Shell.53 A study by the Sao Paulo sanita- governmental orders requiring it to: tion office determined that contaminants abstain from its practice of dumping and in four artesian wells have spread to dis- burying toxic wastes; remediate contami- tant places in the Vila Carioca area. 54 nated areas; monitor the water in artesian However, the issue of whether medical People of Sao Paulo protest against being used as guinea pigs by Shell. (Coletivo Alternative Verde) wells for toxic chemicals and heavy met- care will be offered to people who drank als; and implement effective measures to contaminated water remains completely remove high concentrations of harmful unresolved.55 substances detected in the wells.48 A Brief History of Shell in Sao Paulo In addition, Shell was required to take steps to protect workers’ health, includ- People living near the Shell facilities in ing providing medical examinations for Vila Carioca and Paulinia in Sao Paulo hundreds of former and current work- can recount numerous incidents when ers.49 Local newspaper accounts of former Shell dumped and buried toxic pesticides Shell workers document cases of cancer, and oil wastes. Investigations led by the neurological disorders, and kidney and Sao Paulo government in 2002 revealed intestinal damage, among other severe that the land and water in the region, health problems that have been linked to including drinking water wells, were the types of toxins associated with Shell’s contaminated with lead, cadmium, and facilities.50 other heavy metals, as well as several toxic chemicals, including benzene, The Saga Continues toluene, and the pesticides DDT and aldrin.56 In addition, medical tests proved The governmental order is a start, but that workers at the facility were contami- there is still a long way to go to remedy nated with the types of toxins associated the toxic legacy. with Shell’s operations.57 Although medical problems are severe Instead of cleaning up this contamination among workers, Shell has avoided and taking measures to protect human responsibility for finding former workers health, Shell has been evading responsi- in order to provide them with necessary bility for several years, attempting to 51 medical examinations. In addition, walk away from the contamination at Shell does not guarantee treatment for these facilities.58 Behind the Shine—The conditions discovered as a result of the Other Shell Report 2003 reported on the 52 examinations. growing number of complaints and law- suits being filed by residents and local governments against Shell for its exten- sive environmental damage.59 Location Reports 11

Timeline of Shell in Sao Paulo60

1942 2001

Shell builds an oil storage tank depot and shipping terminal in Vila Shell admits to contaminating groundwater in the area following environ- Carioca, located in southern Sao Paulo, Brazil. mental reports of harmful levels of pesticides. Shell is ordered by the gov- ernment to begin a clean up.

1950 A report produced by the Paulinia City Hall finds contaminants in the bod- ies of 156 residents that are linked to cancers, liver disorders, and neuro- Shell adds pesticide production to its facility in Vila Carioca. logical damage.

1975 The Sao Paulo Public Ministry reports that Shell has exposed Paulinia resi- dents to pesticides. Shell dismisses the report. Shell builds pesticides production facility near the city of Paulinia, located northwest of Sao Paulo, Brazil. At this facility, Shell produces pesticides enters into a partnership with Shell in the ownership of the facility in that have been banned in the United States and other countries. Vila Carioca.

1978 2002

Shell shuts down its pesticide production at the facility in Vila Carioca. BASF shuts down the facility in Paulinia.

Brazilian government bans the sale of the pesticides aldrin, dieldrin, and Sao Paulo officials order the shut down of Shell’s fuel storage and distribu- endrin, but Shell is allowed to continue pesticide production at its facility in tion terminal in Vila Carioca because Shell was operating the facility under Paulinia for export to other countries. a license that expired in 1985. Shell wins a court ruling that overturns the governmental shut down.

1993 Brazil’s environmental agency finds high levels of pesticides in artesian water wells near Vila Carioca and fines Shell $38,963 USD. Labor and environmental organizations, Sindicato do Trabalhadores no Comercio de Minerios e Derivados de Petroleo de Sao Paulo (SIPETROL) also known as the Union of Workers in Mining, Coletivo Alternativa Verde 2004 (CAVE), and Greenpeace file a joint complaint in court citing contamina- Shell settles lawsuit with the government of Sao Paulo. The lawsuit present- tion at Vila Carioca. ed evidence that Shell extensively contaminated the environment and creat- ed dangerous conditions for workers. 1995

Shell sells its pesticide production facility in Paulinia to American Cyanimid January 2005 and BASF with the condition that Shell assumes legal responsibility for the The government of Sao Paulo and Shell publicly announce the Pledge pesticide contamination on the facility property. Terms of Behavior Adjustment. Shell is compelled to submit to governmental orders requiring it to: abstain from its practice of dumping and burying 2000 toxic wastes; remediate contaminated areas; monitor the water in artesian wells for toxic chemicals and heavy metals; and implement effective meas- BASF takes full ownership of facility in Paulinia. ures to remove high concentrations of harmful substances detected in the wells. In addition, Shell is required to take steps to protect workers’ health, including providing medical examinations for hundreds of former and cur- rent workers. Through the media, Shell begins to notify the local population of medical examinations for workers. 12 The Other Shell Report

Location reports Sakhalin Island: Oil Slicks & Slick Talk

Russia

akhalin Island is located in the Although Shell generally acknowledges SRussian Far East, to the north of that its activities and operations can Hokkaido, Japan. It is home to rich fish- result in negative environmental, health, eries consisting of crab, herring, cod, and economic, and social impacts,62 it has hundreds of wild salmon runs. These failed to adequately prevent or mitigate fisheries have long been the economic such impacts from the Sakhalin II proj- mainstay of Sakhalin Island’s indigenous ect. Instead, Shell has run roughshod people and local communities. Sakhalin’s over the concerns of local citizens who terrestrial environment is equally rich, seek to preserve their environment, including wetlands and waterfowl. livelihoods, and culture. The past year Waters off-shore from Sakhalin include has seen some of these impacts come to 25 marine mammal species, 11 of which light. are threatened, including the critically endangered Western Grey Whale whose Dumping Begins population stands at just over 100 indi- viduals and includes just over 20 breed- In April 2005, contractors constructing ing females.61 the Sakhalin II liquefied (LNG) plant began dumping an estimat-

Installation of Shell's Sakhalin II pipeline slashing through Notwithstanding the potential risk of ed 2 million cubic meters of dredged a forest. (Sakhalin Environment Watch) extinction to the Western Grey Whale, materials into Aniva Bay, an important and other damage, the habitat for many commercial species of Investment Company, Ltd., led by Shell, fish, crabs, and scallops, which provide is building the world’s largest single one-third of the island’s commercial fish- integrated oil and gas production facility, eries resources.63 Shell has rejected known as Sakhalin II. This project demands from fishermen, ecologists, and threatens the marine environment with community residents that dredged mate- off-shore platforms and sub-sea pipelines rials be dumped at a safer location in the adjacent to the Western Grey Whale’s open sea. only known feeding habitat. The project also includes two 800-kilometer Shell’s PR Tactics pipelines that will cross over 1000 water- courses, with pipelines trenched across Shell employs public relations tactics to the bottoms of hundreds of wild salmon project the image of a multinational cor- spawning streams and tributaries. The poration that is responsive to citizens’ con- Sakhalin II project also poses the threat cerns. However, the reality is that with of a catastrophic oil spill, not unlike the Sakhalin II, Shell has only taken tiny steps disastrous oil spill to respond to public pressure. For exam- in Alaska. ple, Behind the Shine—the Other Shell Report, 2003 noted that Shell’s plan to route undersea pipelines directly through Location Reports 13

the feeding habitat of the Western Grey Shell’s Oil Spill environment caused by the oil spill.67 Whale was one of many significant prob- Environmental organizations called for a lems with Sakhalin II.64 Shell commis- Contrary to the rosy predictions made by moratorium on the marine activities of sioned the Independent Scientific Review Malcolm Brinded, Managing Director of Sakhalin II.68 Panel, which recommended in 2005 that the Shell Transport and Trading the pipelines be re-routed away from the Company, plc, during the 2004 Shell Despite warnings from independent con- 69 feeding habitat of the whale.65 Only then annual general meeting, Sakhalin II is a sultants in 1999, the response to this did Shell finally concede this point, and growing debacle. In September 2004, a environmental disaster by Shell was a agree to re-route its undersea pipelines.66 ship dredger contracted to the Sakhalin II complete fiasco. Equipment was not in Local communities view this as an impor- project ran aground on the west coast of place to contain the oil spill and it took tant first step, yet are concerned that Sakhalin Island, dumping its load of fuel two days to arrive. It took more than six many of the other issues raised by the oil which washed up along six kilometers months to salvage the grounded 70 panel are being ignored by Shell. Citizens of shoreline, including a popular public dredger. Shell appears not to want to have also voiced serious concerns about beach. Dozens of local residents exposed learn the lesson of this disaster and listen Sakhalin II that extend beyond the to the spill’s toxic fumes sought emer- to the experts. It still has not developed a impacts on the Western Grey Whale. gency medical treatment for respiratory comprehensive plan for preventing and These concerns, as discussed below, are problems and headaches. Sakhalin’s remedying hazardous oil spills that can being ignored by Shell. Environmental Prosecutor initiated crim- occur from the extensive scope of its inal charges for the damage to the marine operations.

Sakhalin Island residents protesting Shell's Sakhalin II project. (Sakhalin Environment Watch) 14 The Other Shell Report

What People Are Saying About Shell & experienced in recent years) would be suf- The Year at a Glance Sakhalin II ficient to drive the population towards extinction with high probability. . . [T]he Sakhalin’s Indigenous Peoples— most precautionary approach would be to Indigenous people on Sakhalin Island September 2004 Oil spill from a Sakhalin II suspend present operations and delay fur- have demanded an independent cultural dredger blankets six kilometers of coastline. ther development of the oil and gas 79 impact assessment of Sakhalin II and a Shell’s response is late and inadequate. reserves in the vicinity of the grey whale compensation fund for losses arising from feeding grounds off Sakhalin, and espe- December 2004 Report claims that social the project. During January 2005, over conditions on Sakhalin Island are deteriorat- cially the critical nearshore feeding 200 members of Sakhalin Island’s Nivkh, ing significantly as a result of Shell’s failure to ground that is used preferentially by Uilta, Nanai and Evenk peoples endured prepare for the influx of thousands of construc- mothers and calves. . . . ”72 tion workers to Korsakov and surrounding minus-30 degree Celsius temperatures for 80 communities. five days in order to blockade the The Wild Salmon Center—Responding 71 January 2005 Shell ignores Indigenous peo- Sakhalin I and Sakhalin II projects. The to photographs published in The ple’s demands for protection of their native people stopped the projects to demand Observer newspaper on 20 March 2005,73 fisheries, reindeer pastures and their liveli- protection of their native fisheries, rein- which showed the Sakhalin II pipeline 81 hoods. deer pastures, and their livelihoods from construction slashing through forests and the growing dangers of irresponsible oil March 2005 Shell re-routes pipeline away turning a once pristine stream into a from Grey Whale’s feeding habitat.82 and gas production. muddy mire, the Wild Salmon Center observed that: “These photos seemed to International Public Banks—In 2003 March 2005 Shell continues to threaten indicate a number of potentially serious Grey Whale by refusing to move the oil the European Bank for Reconstruction 83 lapses of quality control, including con- drilling platform. and Development (EBRD) and the struction roads directly through streams, Export Credit Agencies of the United March 2005 Shell ignores the majority of vehicle tracks through streams, bridges States, the United Kingdom, and Japan the issues identified by the Independent that obstructed stream flow, water flow- Scientific Review Panel that Shell itself com- determined that the Sakhalin II 84 ing unchecked through construction missioned. Environmental, Social, Health Impact sites, and small streams clogged with Assessment is “unfit for purpose”. Shell’s March 2005 The Wild Salmon Center construction debris”.74 They also noted self-serving assessment failed to correctly accuses Sakhalin II construction companies of additional concerns, including “construc- “potentially serious lapses of quality con- state the baseline conditions of Sakhalin 85 tion of pipelines through spawning areas trol”. Island and the negative consequences of and wintering pools [which] is specifical- the project. Consequently, these public April 2005 Sakhalin II contractors begin ly and directly prohibited by the Russian banks vowed to withhold consideration dumping 2 million cubic meters of dredged Federal Law on Wildlife and related reg- materials into Aniva Bay, an important habitat of up to $5 billion USD in financing for ulations”.75 for one-third of Sakhalin’s commercial fisheries the Sakhalin II project until fundamental resources.86 problems are remedied. A final decision from the EBRD is due later this year. A Turn for the Worse The Independent Scientific Review In December 2004, it came to light that Panel—A panel of independent scientists Shell began construction of the LNG reviewing the project has been unequivo- plant without preparing for the needs of cal in expressing their concerns for the the thousands of workers required for the 76 Western Grey Whale: “. . . [M]ost impor- project. According to a report on the tantly, the loss of one additional female social impacts of the Sakhalin II project, per year (over and above the death rates several thousand workers overran the city of Korsakov and surrounding communi- ties, overwhelming the area’s housing, sewage, and medical infrastructure.77 Further, the report finds that, as a conse- quence of this influx of workers, social conditions have deteriorated as rates of violence, sexually transmitted diseases, and epidemic diseases, including tuber- culosis, have increased.78 Location Reports 15

Location reports County Mayo: From Devastating Beauty to Devastating Ruin

Ireland

or the past three years, Shell has been Several local residents, who own 50 per Frunning roughshod over local com- cent of the land earmarked for the munities on the west coast of Ireland, pipeline, are fearful about the health and and is poised to transform an area of out- safety aspects of the proposed project.90 standing natural beauty into an environ- The massive September 2003 landslides mental disaster zone. at Dooncarton Mountain,91 in close prox- imity to the pipeline route,92 and the Shell owns a substantial portion of the potential for an explosion from this high Corrib gas field in the Atlantic Ocean. pressure pipeline93 are among their chief Shell operates this offshore gas field concerns. approximately 35 miles west of the Mullet Peninsula in County Mayo, The proposed refinery is also a cause of Ireland. Shell’s plan to bring on shore the concern. The refinery will clean the raw, untreated gas from the field involves incoming gas of impurities including heavy metals and toxins like lead, nickel, ”No Trespassing” sign erected by Teresa McGarry and constructing a massive, high pressure her daughter, Brid McGarry, who have refused Shell pipeline and gas refinery in a particularly magnesium, phosphorous, arsenic and entry onto their property for the proposed pipeline beautiful and sensitive area of wild mercury. This toxic waste will be because of safety concerns. (Denny Larson/GCM) coast.87 pumped into .94 The bay is a designated special area of conserva- The proposed pipeline will be five-miles tion.95 Due to the bay’s circular tidal long (the longest of its type in the pattern and semi-enclosed nature, much world),88 and will cross protected dunes, of this toxic waste is likely to stay within traverse a fragile estuary teaming with the bay, rather than be washed out to wildlife, cut through treacherous blanket sea.96 This toxic discharge poses signifi- bog at many different points, pass by cant concerns for the stocks of fisheries homes and villages, slice up the small such as salmon and crab upon which farms in the tiny village of , and much of the local economy depends, finally reach a hilltop where a gas refin- other aquatic life, including some rare ery will be built to process the product.89 species,97 and numerous species of birds supported by the bay which are of inter- national and regional importance.98 Further, the refinery will be built in a bog, a dangerously unstable landscape, as evidenced by a dramatic bog slide in 2003 at Pullatomish/Dooncarton.99 16 The Other Shell Report

Bullying the Locals increasing their provocations steadily Harrington, a local school teacher, told a throughout the day.104 According to reporter: “Good Friday is a day of suffer- In December 2004, Shell sent letters to GCM, the landowners called the media, ing and passion and these people in all landowners in the path of the pro- and local radio stations aired interviews Rossport are going through their own posed pipeline, warning that the compa- conducted in gale force winds as the persecution”.109 ny would enter properties to begin their scene unfolded. GCM reported that Shell work—despite the fact that the govern- representatives would enter a property One of those on the walk was Sister ment’s decision to approve the pipeline and then be asked to leave by the Majella McCarron who had spent 30 was being appealed in court.100 Rossport landowner in front of local Garda years in Nigeria before establishing property owners posted “no trespassing” (police), while a Shell representative Ogoni Solidarity Ireland, an education signs and made preparations to peacefully videotaped the exchange.105 As Shell rep- campaign organized to try to prevent the turn Shell away until the legal issues are resentatives left the properties, GCM hanging of Ken Saro-Wiwa, who founded resolved.101 Nevertheless, according to heard the representatives threaten to take the movement against Shell in Nigeria in an eye-witness report by the non-govern- legal action against the landowners.106 protest against Shell’s devastation of his mental organization, Global Community homeland.110 Monitor (GCM), on 10 January 2005, Solidarity Against All Odds Shell representatives attempted to enter Maura Harrington observed that, “[Ken the landowners’ property.102 On 25 March 2005, the landowners Saro-Wiwa] was involved in a peaceful opposed to Shell’s project were supported protest in Nigeria and he started the According to GCM, on 11 January 2005, by 300 people who joined them in a movement against Shell and what had as schools and hospitals were closing due peaceful walk through the village of been done in his homeland. There are a to a violent approaching storm, Shell rep- Rossport on Good Friday.107 The group number of parallels in his story with the resentatives entered these private lands.103 walked three miles along the proposed landowners in Rossport, including the GCM witnessed Shell representatives path of the pipeline.108 Maura love for family and land”.111

Farm land and estuary which Shell proposes to build a raw gas pipeline across in Rossport, County Mayo, Ireland. (Denny Larson/GCM) Location Reports 17

Location reports Pandacan: Negotiating Substandard Environmental Controls

Philippines

n , the Philippines, Shell has the environment, health, and safety—is Ievaded citizens’ demands to remove its woefully inadequate (see below). On 12 hazardous oil depot from the densely January 2004, the government issued an populated neighborhood of Pandacan for environmental compliance certificate, many years. Some 84,000 people live in allowing the operation of the oil depot in Pandacan, where there are concerns about accordance with the terms dictated by the enormous health and safety threats of Shell and its partners in their accidents or a terrorist attack on the oil application.115 depot.112 Resisting the demands for removal, Shell instead manipulated the Sham Environmental Protection local government to allow it to maintain its oil depot under the condition that Odors and fumes emanating from the oil Shell scale down its number of oil tanks. depot are a continual source of com- plaints from Pandacan residents, and Notwithstanding its much publicized there is clear indication that people are commitment to health and safety, Shell exposed to carcinogens and other harmful negotiated with local officials to continue toxins stored at the oil depot. However, hazardous operations just a stone’s throw the environmental compliance certificate away from where children play and does not require any air monitoring that where sources of drinking water for resi- could detect the presence of harmful sub- Chito Adofina, United Front To Oust Oil Depots, using a dents are located. The negotiations stances and warrant the reduction or state-of-the-art air monitor to detect toxic hotspots in public 116 areas around the Shell depot on a real-time basis. between Shell and the government offi- elimination of these toxins. Nor does it (Denny Larson/GCM) cials were concealed from the public. The require any specific plans to mitigate outcome of these negotiations was that hazards occurring at the oil depot.117 Shell and the only other depot owners in Pandacan, and Petron, agreed to In securing its environmental compliance scale down the number of their oil tanks certificate, Shell was able to extract from and apply for an environmental compli- some local officials a statement of support ance certificate.113 Shell and the other two that reveals an alarming disregard for companies have now integrated their oil protecting the environment, public depots under joint ownership.114 Their health, and safety of Pandacan residents: joint application for the environmental [I]t is of paramount concern for us to compliance certificate—which explains ensure the general welfare of our con- how Shell and its partners plan to operate stituents by accelerating and enhanc- in a way that they believe is protective of ing the economic propensities and upgrading the quality of life, more than promoting sound urban planning or protecting health and safety of our communities. (Emphasis added).118 18 The Other Shell Report

There have been allegations of corruption tricts) in Pandacan. According to the sur- The Year at a Glance surrounding the deal. Felix Majabague, a vey, 60% of the people surveyed said that local official who refused to sign the state- they smell foul odors emanating from the ment of support, explained: “Shell invited oil depot complex.122 January 2004 Shell receives an environ- all of us Barangay leaders [district council mental compliance certificate that provides officials] to a hotel room, and asked us to In an attempt to appease residents’ long- 128 substandard environmental controls. sign a document that would help Shell to standing demands for reducing air pollu- tion, Shell has said that it will conduct February 2005 An initial medical study keep its oil depot in Pandacan. The lead- an air quality study.123 But the company conducted by the University of the ers who signed the document received a Philippines College of Medicine reveals that gift from Shell”. Meanwhile, the people will not use state-of-the-art monitoring Pandacan residents have been exposed to of Pandacan are left without any mean- equipment to do this, despite the fact neurophysiological toxins which are present ingful environmental protection. that Shell is already using such equip- in petroleum products stored at the oil ment in Durban, South Africa and depot.129 Geelong, Australia, and is testing the Toxins in the Air April 2005 A community health survey equipment in the United States.124 reveals that 60 % of the people surveyed In April 2005, the United Front to Oust said that they smell foul odors emanating Oil Depots (UFO-OD), a Pandacan com- Medical Study Shows Pandacan Residents from the oil depot complex.130 munity advocacy organization, employed Near Oil Depot Exposed to Neurological Toxins April 2005 Pandacan community air moni- a state-of-the-art air monitoring device An initial medical study conducted by toring, using state-of-the-art equipment, that detects toxic gases on a real-time the University of the Philippines College detects high levels of chemical gases in the basis at extremely low levels in the parts air when trucks are being loaded with oil of Medicine in February 2005 revealed per billion range.119 This hand-held device products at the depot and when they are that Pandacan residents have been showed the presence of toxic emissions at idling. The monitor also detects high levels exposed to neurophysiological toxins of chemical gases near drains located in a their highest concentrations when trucks which are present in petroleum products recently created oil depot buffer zone that are being loaded with fuels and oil prod- 125 131 stored at the oil depot. Medical stu- has recreational facilities for children. ucts at the oil depot, and when trucks are dents examined residents for their deep idling.120 The air monitor also revealed May 2005 Shell says it will conduct an air tendon reflexes, dynamometry (muscle high levels of chemical gases in the air quality study, but will not use state-of-the-art strength), lead levels in urine, and nerve equipment, despite the fact that it uses such near drains located in a recently created 126 132 conduction velocity. This study con- equipment elsewhere. oil depot buffer zone that has recreational cluded that, for the selected population, facilities for children.121 as the distance of their homes from the Also, in April 2005, UFO-OD conducted Pandacan oil depot increases, the expo- Equipped with air monitor buckets, Pandacan residents a community health survey of 600 people sure to lead and incidents of polyneu- expose the toxic air pollution released by Shell’s oil depot living in four barangays (council dis- ropathy (nerve damage) decreases.127 operations. (Denny Larson/GCM) Location Reports 19

Location reports Curaçao: Shell CEO Jeroen van der Veer Leaves Behind a Mess

Netherlands Antilles

eople living on the island of Curaçao structure.136 His pub- Pare looking to Shell to clean up the lic speeches depict toxic mess it created while operating a Shell as caring about refinery on the island twenty years ago. the communities Jeroen van der Veer, a former employee where it mines, drills, at Shell’s Curaçao refinery, who has risen and extracts its 137 through the ranks to become the Chief Jeroen van der Veer, wealth. However, Executive Officer of Royal/Dutch Shell, Royal Dutch/Shell CEO as a previous Shell regularly gives speeches asserting that a (Shell) employee in Curaçao, core principle at Shell is to minimize the Jeroen has had direct and personal expe- impacts of its operations on host commu- rience with Shell exploiting a host com- nities. The residents of Curaçao want munity, and walking away from the Shell to put its words into action. disastrous consequences. Curaçao is home to the largest popula- The Curaçao refinery was declared “obso- tion in the Netherlands Antilles, totaling lete” in 1982;138 and later, in 1985, Shell approximately 150,000 people.133 This sold the refinery for only $1 USD to the island in the Caribbean Sea is also home Netherlands Antilles government.139 As to the oldest oil refinery in the western part of this sale, Shell pressured the gov- hemisphere, which was constructed and ernment to accept terms that would The refinery on Curacao Island that Shell built and operat- ed for 70 years. (Denny Larson/GCM) operated by Shell for 70 years, from 1915 absolve Shell from any responsibility for to 1985.134 the extensive environmental and health damage created by its refinery At this refinery, Jeroen van der Veer operations.140 toiled as a mechanical engineer and honed his skills in “refinery design.”135 Residents of Curaçao, who are outraged Now, as Chief Executive Officer of Royal by the environmental mess that Shell has Dutch/Shell, Jeroen van der Veer is re- left behind, organized the Humane Care designing the corporation’s governance Foundation Curaçao in 2003. Their painstaking efforts have exposed the toxic legacy created by Shell. Islanders have suffered decades of respiratory problems and other serious health ailments associ- ated with refinery pollution.141 The 20 kilometer reef that surrounds this small island is contaminated with oil waste.142 For years, Shell dumped toxic wastes in Asphalt Lake and Schottegat Bay, which have polluted the Caribbean Sea.143 The former Shell refinery located dangerously close to the residents of Curacao. (Denny Larson/GCM)

Shell claims that it has no involvement in are concerned about the health . . . of all The Year at a Glance the Curaçao oil refinery, known as Isla, their people. . . . We try to minimise the but the reality is that the company has impact of our operations on host commu- maintained close ties. A Shell drilling nities”.149 However, contrary to “working 2004—2005 Shell continues to deny its structure was installed off the coast of with countries”, Shell abused its power in responsibility for clean up of Curaçao, leav- Curaçao during the late 1990s.144 In Curaçao to such an extent that a Shell ing local people with health problems and 2001, Petroleos de Venezuela Sociedad manager unabashedly asserted: “The polluted land and water. Anonimo (PdVSA), the company that Antillean government? We are the gov- 17 March 2005 Shell CEO Jeroen van der leased Shell’s former oil refinery from the ernment!”150 The impacts of Shell’s refin- Veer states: “We prefer to invest and work Netherlands Antilles government, devel- ery on its host community in Curaçao in countries . . . that are concerned about oped a joint project with Shell to opti- have in no way been minimal. Shell has the health . . . of all their people. . . . We try to minimise the impact of our operations mize operations at the Isla refinery in caused extensive contamination on the 145 on host communities”.151 Curaçao. The former chairman of the island, leaving the burden of clean-up to PdVSA Board of Directors, Luis Guisti, the people of Curaçao, who lack the 6 December 2004 Shell CEO Jeroen van now serves on Shell’s Board of Directors resources to do so. der Veer states: “. . . [T]hose of us who take responsibility for energy projects . . . [must] and was re-elected at the 2004 annual 146 As the CEO of Shell, Jeroen van der Veer ensure they benefit local communities and general meeting. Luis Guisti worked at 152 is now in a position to right the wrongs safeguard their environment”. PdVSA for over 20 years.147 Currently, Shell is partnering with PdVSA in a of Shell’s operations in Curaçao, and 24 August 2004 Shell CEO Jeroen van long-term joint venture to operate a liq- demonstrate to the world a leadership der Veer states: “International companies uefied natural gas terminal in the that fulfills his often repeated commit- must demonstrate a continuing commitment ment to human rights, health, environ- to the countries in which they work—invest- Caribbean.148 ing for the long term, developing skills, mental protection, and ethical practices. engaging with communities and taking care In a recent speech to international busi- of the environment”.153 ness managers, Jeroen van der Veer stat- ed: “Shell works with countries . . . that Location Reports 21

Location reports Port Arthur: Shell Dismisses Refinery Malfunctions Harming Neighborhood

Texas, USA

“We see a side of Shell that its board of Malfunctions: A Way of Doing Business directors and managers try to hide from the Although Shell claims that it strives to public. The Shell we know recklessly oper- improve its environmental perform- ates an oil refinery across the street from ance,155 chronic malfunctions are all too our homes. Every day Shell dumps toxic common at Motiva.156 Fatalities among pollution on our neighborhood that is workers make Shell facilities, including damaging our health, especially our chil- Motiva, among the most dangerous in dren who can’t breathe without an the United States.157 inhaler.” Motiva has taken advantage of huge —Hilton Kelley, Director of Community exemptions in U.S. environmental regu- In-power Development Association lations, which allow the refinery to exceed pollution limits whenever a mal- function occurs. Such exemptions have Flaring from the Shell-Motiva refinery in the Port Arthur n the African American neighborhood neighborhood on February 14, 2005. been criticized for encouraging compa- (Hilton Kelly/CIDA) Iof West Port Arthur, located in the nies like Shell to ignore corrective meas- eastern part of the state of Texas in the ures that can prevent refinery United States, Shell operates a massive malfunctions.158 These malfunctions exac- oil refinery through a joint venture with erbate the unhealthy conditions for West , known as Motiva. Port Arthur residents by increasing pol- Residents of West Port Arthur are out- lution levels. raged by Motiva’s disregard for the seri- ous impacts of its refinery pollution on This year Motiva has breached even these their health. A survey conducted by the lax environmental laws. On 14 April University of Texas at Galveston Medical 2005, the Texas state government penal- Branch in 2002 found that 80% of the ized Motiva for violating environmental West Port Arthur residents surveyed suf- laws.159 The environmental agency deter- fered from heart conditions and respira- mined that Motiva failed to prevent tory problems, compared to 30% of unauthorized emissions, failed to proper- people who do not live near an oil refin- ly operate pollution control equipment, ery.154 Such severe health problems are failed to properly submit initial notifica- unlikely to improve, given that the tion for reportable emission events, and Motiva oil refinery continues to emit failed to properly submit final reports for massive quantities of toxins that are emission events.160 The state government known to damage the human cardiovas- ordered Motiva to pay a penalty of cular and respiratory systems. $656,397.00 USD for its unlawful actions.161 22 The Other Shell Report

In August 2004, the Environmental The Year at a Glance Integrity Project issued a report that reveals the malfunctions occurring at Motiva, among other facilities. 2004 Numerous malfunctions at Motiva According to the report, the Motiva cause an estimated total of 106,495.46 kg refinery polluted the air with 233,559 kg (234,784.17 pounds) of toxins to be (514,910 pounds) of toxins as a result of released into the air.167 See list above for 162 details. malfunctions in 2003.

August 2004 Report by the Environmental Motiva’s reports of its malfunctions in Integrity Project reveals that the Motiva refin- 2004, which are not independently veri- ery released 233,559 kg (514,910 fied, show that malfunctions continue. pounds) of toxins as a result of malfunctions March by residents of West Port Arthur and Beaumont, According to the company’s reports to an protesting against weak pollution standards and oil com- in 2003.168 environmental agency, malfunctions at pany tax breaks. (Hilton Kelley/CIDA) November 2004 CIDA leads march by Motiva caused an estimated total of exempting wealthy corporations like residents of Port Arthur and Beaumont to 106,495.46 kg (234,784.17 pounds) of Shell from paying local taxes. demand that their elected officials require toxins to be released into the air in pollution reduction at Motiva and surround- 163 ing facilities, and stop exempting wealthy 2004. CIDA is now using a state-of-the-art air corporations from paying local taxes. monitor, known as the CEREX ultra-vio- Taking Charge let sentry system, which provides instant February 2005 CIDA obtains a state-of-the- detections of toxins in the air, and can art air monitoring device that detects toxic On 12 November 2004, the residents of indicate when a toxin is at a concentra- chemicals on a real-time basis. West Port Arthur, organized as tion that exceeds health-based standards. Community In-power Development As part of their ongoing work for pollu- Association (CIDA), led a march by resi- tion reduction and health care, CIDA dents of Port Arthur and Beaumont to View of the Motiva refinery from the Port Arthur members plan to use this air monitoring demand that their elected officials neighborhood. (Denny Larson/GCM) device to identify the toxic impacts of require pollution reduction at Motiva Motiva and other industrial facilities on and surrounding facilities, and stop the Port Arthur community. Location Reports 23

Motiva Refinery’s Estimated Amount of Toxic Pollution Released by Malfunctions and Other Incidents in 2004164

Date of Malfunction Amount of Pollution Released Identification of Contaminants Released

Butane, Butene, Carbon Monoxide, Nitrogen Dioxide, Nitrogen Oxide, 9 Jan. 04 1,334.92 kg (2,943 lbs.) Propane

11 Feb. – 10 Mar. 04 2,947.44 kg (6,498 lbs.) Carbon Monoxide, Hydrocarbons, Nitrogen Dioxide, Particulate Matter

Carbon Monoxide, Hydrocarbons, Nitrogen Dioxide, Nitrogen Oxide, 12 Feb. – 29 Feb. 04 7,797.25 kg (17,190 lbs.) Particulate Matter

Carbon Monoxide, Hydrocarbons, Nitrogen Dioxide, Nitrogen Oxide, 16 Feb. – 29 Feb. 04 2,067.47 kg (4,558 lbs.) Particulate Matter

Carbon Monoxide, Hydrocarbons, Nitrogen Dioxide, Nitrogen Oxide, 2 Mar. – 1 Apr. 04 9,100.42 kg (20,063 lbs.) Particulate Matter

Carbon Monoxide, Hydrocarbons, Nitrogen Dioxide, Nitrogen Oxide, 5 Mar. – 22 Mar. 04 5,654.93 kg (12,467 lbs.) Particulate Matter

Butane, Carbon Monoxide, Ethane, Hydrogen, Hydrogen Sulfide, Methane, 26 Mar 04 13.87 kg (30.58 lbs.) Nitrogen Dioxide, Nitrogen Oxide, Pentane, Propane, Sulfur Dioxide

Carbon Monoxide, Hydrocarbons, Nitrogen Dioxide, Nitrogen Oxide, 15 Apr. – 12 May 04 4,730.5 kg (10,429 lbs.) Particulate Matter

Butane, Butene, Carbon Monoxide, Ethane, Ethylene (gaseous), Hydrogen 1 May 04 4,658.4 kg (10,270 lbs.) Sulfide, Methane, Nitrogen Dioxide, Nitrogen Oxide, Pentane, Propane, Propylene (Propene), Sulfur Dioxide

27 May 04 200.94 kg (443 lbs.) 1-Butene, Butadiene 1-3, Butane, Pentane, Propane, Propylene (Propene)

Butadiene 1-3, Butane, Butene, Carbon Monoxide, Ethylene (gaseous), Hexane, 25 Aug. 04 5,336.5 kg (11,765 lbs.) Hydrogen Sulfide, Nitrogen Dioxide, Nitrogen Oxide, Pentane, Pentene, Propane, Propylene (Propene), Sulfur Dioxide

1,3-Butadiene,Butane, Cis-2-butylene, Ethane, Ethylene (gaseous), Hydrogen 17 Oct. 04 560.04 kg (1,236 lbs.) Sulfide, Isobutane, Isobutylene, Methane, Propane, Propylene (Propene), Trans-2- butylene

20 Oct. 04 1,249 kg (2,754 lbs.) Carbon Monoxide, Nitrogen Dioxide, Nitrogen Oxide, Sulfur Dioxide

24 Oct. 04 62.14 kg (137 lbs.) Hydrocarbons

27 Oct – 28 Oct. 04 3,628 kg (7,998.4 lbs.) Carbon Monoxide, Nitrogen Dioxide, Nitrogen Oxide, Sulfur Dioxide

22 Dec. 04 47,829.5 kg (105,446 lbs.) Carbon Monoxide, Nitrogen Dioxide, Nitrogen Oxide, Sulfur Dioxide

1-Butene, Butane, Ethane, Ethylene (gaseous), Hydrogen Sulfide, Pentane, 28 Dec. 04 127.54 kg (281.19 lbs.) Propane, Propylene (Propene)

31 Dec. – 1 Jan. 05 9,196.6 kg (20,275 lbs.) 1-Butene, Butane, Pentene, Propane, Propylene (Propene)

TOTAL: 106,495.46 kg (234,784.17 lbs.)

Motiva asserts that its malfunctions have “no impact on human health or the environment”.165 However, there is evidence that the pollution released during refin- ery malfunctions can be damaging to human health, and includes toxins that cause cardiovascular and respiratory damage, cancer, and impaired reproductive, neurological, and immune systems.166 24 The Other Shell Report

Location reports Norco and Coastal Louisiana: Shell Ignores Dangerous Impacts

Louisiana, USA

hell takes pride in its two programs 2002. CCN successfully compelled Shell Sdesigned to address and support envi- to meet the community’s demands for a ronmental concerns in the town of fair and just relocation and a reduction in Norco, Louisiana169 and in the coastal the pollution from its facilities.171 This area of Louisiana.170 However, recent was a bittersweet victory for residents, events demonstrate that Shell has resisted who had to leave their historic communi- taking precautionary action to prevent ty to find a healthy place to live. the long-term impacts of its operations Although residents made it abundantly that are damaging to human health in clear that the issue of health was their Norco, and are threatening to marine motivating factor in demanding reloca- species in coastal Louisiana. tion and pollution reduction, Shell has not acknowledged any of the potential Shell Ignores Long-Term Impact of Emissions health impacts of its operations. on Norco Residents At the time of the relocation in 2002, On the banks of the Mississippi River in Shell reached an agreement with the Louisiana, Norco is home to a large Shell Louisiana Department of Environmental oil refinery (now a joint venture called Quality which included the introduction Motiva) and a Shell chemical facility. of an air monitoring program in Norco Norco is located in “Cancer Alley”, a 136 by Shell.172 The program is designed to

TOP: Historic Diamond neighborhood in Norco, kilometer span of the Mississippi River monitor for 51 toxic volatile organic Louisiana before residents relocated away from the Shell where over 130 refineries and petrochem- chemicals (VOCs)173 which are either chemical facility in the background. (Deep South Center ical facilities operate in very close prox- known or suspected to cause cancer, and for Environmental Justice) imity to communities. The Norco are toxic to the human reproductive, BOTTOM: Louisiana children's message to Shell during neighborhood of Diamond, where close- developmental, and respiratory systems. 13 April 2005 protest against Shell's LNG open-loop sys- knit African American families have tem. (Darryl Malek-Wiley/Sierra Club) lived since the 1700s, is locked between As reported in Behind the Shine—the the two Shell facilities. Other Shell Report, 2003, Shell’s monitor- ing programme is inadequate. The moni- Several years of persistent advocacy by tors do not detect sulfur compounds, Diamond residents, organized as which are lung-damaging pollutants rou- Concerned Citizens of Norco (CCN), tinely released in massive quantities by achieved an unprecedented victory in the Shell facilities in Norco, and air sam- ples are taken only once every six days.174 Shell also uses technologically inferior canisters to collect the air samples.175 These deficiencies have been ignored by Shell, despite repeated protestations of Concerned Citizens of Norco since the inception of the program. Location Reports 25

Even with these inadequacies, however, Shell Ignores Long-Term Impacts of LNG the air monitors have detected numerous Project on Coastal Fisheries The Year at a Glance VOCs. The most recent air monitoring Shell has shown a similar disregard for its data report, for the period from January 1 potential impacts on fisheries in coastal through March 31, 2004, detected 49 of 2004 Shell has still not acknowledged any Louisiana. Shell is seeking governmental the 51 VOCs.176 Twenty VOCs made up of the potential health impacts of its opera- permits to construct a liquefied natural tions on the citizens of Norco. more than 95% of the total.177 Of these gas (LNG) terminal approximately 30 20, benzene (a known human cancer miles off the state coast. Shell plans to June 2004 The most recent emission data causing agent) and toluene (a develop- show that 49 of the 51 monitored volatile transport liquefied natural gas that has 186 mental and reproductive toxin) were two organic chemicals are present in Norco air. been frozen to a temperature of 260 of the major components.178 The loca- degrees below zero to its proposed termi- September 2004 Shell dismisses these emis- tions of the monitors detecting VOCs nal on huge tanker ships. At this termi- sions, ignoring the potential cumulative indicate that these toxic emissions are impact.187 nal, Shell proposes to re-heat the gas migrating throughout the town on a reg- using an “open loop” system that will April 2005 The fishing industry and environ- ular, ongoing basis. involve the daily intake of 757,082,400 mental organizations oppose the “open-loop” Shell dismisses these VOC emissions litres (200 million gallons) of gulf water system for Shell’s proposed LNG terminal in coastal Louisiana.188 because no single air sample exceeded air through a radiator-like structure. The quality standards, and concludes that marine species and eggs flowing through May 2005 The governor of Louisiana Norco’s air quality is “good”.179 this system would be killed by the sud- opposes the “open-loop” system for Shell’s However, for more than a decade scientif- den drop in water temperature and the proposed LNG terminal in coastal Louisiana.189 ic research has shown that so-called “low chlorine added to the water, or would be levels” of VOC emissions are damaging crushed against the intake screens. to human health.180 The potential cumu- The cumulative impacts of the proposed environmental organizations.183 These lative health impacts from the exposure LNG terminal on numerous marine diverse groups have all urged a “closed of Norco residents to Shell’s VOC emis- species, including the red fish—which is loop” system. Such a system would use sions on a continuing basis over many the focus of an ongoing environmental approximately two percent of the gas to years are disregarded by Shell. management plan to restore its popula- reheat the liquefied gas, without any tion which has been virtually depleted as intake of gulf waters.184 Although Shell a result of overfishing—have not been has established a program for protecting addressed by Shell. For this reason, Shell marine species and ecosystems on the now faces opposition to its “open loop” coast of Louisiana and the Gulf of system from the governor of Louisiana,181 Mexico,185 the corporation refuses to the commercial fishing industry,182 and employ the “closed loop” system. 26 The Other Shell Report

Conclusion Shell Demonstrates the Case for Mandatory Corporate Accountability

his alternative Shell report and the ing the company’s failure to address the Tones produced over the last two cases featured in this report, demon- years190 present a unique look at several of strates that the voluntary approach to the peoples and places harmed by Shell’s CSR is not working. The time has come operations around the globe. Whether in to establish mandatory legal require- the Niger Delta in Nigeria; Pandacan, ments that would ensure companies like the Philippines; Sakhalin Island in Far Shell are liable for the damage they cause East Russia; Durban, South Africa; Sao around the world. Paulo, Brazil; Port Arthur, Texas or Friends of the Earth International has Norco, Louisiana in the United States; or developed proposals for an international Curaçao island in the Caribbean, what Malcolm Brinded, Managing Director of Shell, gets legally binding convention on corporate these communities all have in common is angry with fenceline community representatives at the accountability and liability.191 Friends of the that they have been used by Shell as the end of Shell's annual general meeting in 2004. (Denny Earth is campaigning for corporate account- Larson/GCM) dumping grounds for oil refining, chemi- ability internationally and nationally. cal manufacturing, oil and gas drilling, and storage of oil products. These com- In the UK over 100 groups have come munities also share a common history of together to form the Corporate generations of people who were able to Responsibility coalition (CORE) stating: live in harmony with their environments, “The starting point of our Coalition, is and reflect in their language, cultures, that we believe the voluntary approach to and histories a deep and abiding respect Corporate Responsibility has failed”.192 for the environment. CORE is campaigning for changes to UK company law that would start to intro- Despite environmental advances in duce legal corporate accountability. These industrial technologies and global con- include three main pillars: cern for environmental preservation and protection of human health, Shell has not 1. Mandatory reporting and access to infor- adequately upgraded its industrial opera- mation—a requirement for companies to tions in the communities featured in this report annually on the significant nega- report. Instead, the corporation has tive social and environmental impacts of focused on upgrading its defensive form their business operations, policies, prod- of public relations. Shell pays lip service ucts, and procedures. This would mean to respecting human rights and promot- that communities affected by Shell’s ing sustainable development whilst con- operations, for example, would have tinuing with business as usual. In the ten access to comprehensive information on years following the brutal killing of Ken emissions, something that many commu- Saro-Wiwa and 8 other MOSOP mem- nities are still struggling to get. bers—a time when Shell invested in rehabilitating its reputation—the com- 2. New legal duties on company directors— pany can point to few examples where it new statutory duties requiring directors voluntarily and irrefutably corrected its to take reasonable steps to reduce the sig- environmental damage so that the land is nificant negative social and environmen- restored, the air is healthy to breathe, tal impacts of their business operations, and the water is clean. products, policies, and procedures, which have been identified through the manda- The failure of Shell’s approach to corpo- tory reporting requirements. This new rate social responsibility (CSR), includ- duty could be referred to as a ‘duty of The Case for Manditory Corporate Accountability 27

care’ to people and the environment. This in the Netherlands, the need for the would require Shell directors to take Dutch government to establish such legal steps to reduce the impact of their opera- requirements, as indicated above, tions and to demonstrate how they have becomes only more pertinent. done this—a first step in turning Shell’s Milieudefensie (Friends of the Earth CSR policies into action. Netherlands) strongly supports proposals for an international legally binding con- 3. New provisions for liability, including vention on corporate accountability and Foreign Direct Liability—individuals or liability, and is calling for new national communities who suffer significant nega- laws that would help to hold multina- tive impacts because of the failure of UK tionals accountable. As shown by the companies (and directors) to have proper examples in this report, rights for fence- Jamie Walls, Shell International Relations Manager (left, regard for these new duties, would have front), attempts to counter the testimony of several fence- line communities cannot be guaranteed line community members during a June 2004 British par- the legal right to seek redress in a UK by voluntary initiatives alone. liamentary briefing session. (Denny Larson/GCM) court with legal aid. This would include nities have returned home to find that lit- negative impacts such as human rights Shell’s annual general meeting in June tle has changed over the following year. and environmental abuses resulting 2005 will be the third consecutive year directly from the operations, policies, that the residents of the communities This year the annual general meeting products, and procurement practices of featured in this report have traveled to will be dominated by Shell’s plans for UK companies or their overseas sub- London and The Hague in an attempt to restructuring. There is nothing in Shell’s sidiaries. This would allow the communi- have their voices heard by Shell and its proposals that looks at the company’s ties featured in this report to obtain investors, by governments, and in the accountability other than to shareholders. justice in the UK courts when their own media. Until Shell is accountable to its wider courts fail them. stakeholders, including to the communi- At previous meetings Shell has claimed to ties in which it operates, these communi- With the unification of Royal Dutch and have heard their voices. But, as this report ties fear that they face returning home to Shell Transport into one company seated documents, the residents of these commu- business as usual once again. 28 The Other Shell Report

EndNotes

1 Jack Doyle, Riding the Dragon: http://news.bbc.co.uk/2/hi/business/3598148.stm. 45 Oilwatch Resistance Network, South Africa: Sakhalinsk, Russia), 13 May 2005, available at & the Fossil Fire (Environmental Health Fund, Shell/BP’s Refinery, Refinery Resistance Bulletin, http://sakhalinindependent.com/images/oilandgas/oi 24 Notes from Friends of the Earth (England, Wales, 2002), p. 163. No. 41, chapter 6, September 2003, available at l%5Fspill%5Fkhlmsk.htm. and Northern Ireland) Field Trip to Nigeria, April http://64.233.167.104/search?q=cache:3s973UIp3h 2 Judith Atiri, Ken Saro-Wiwa: A Martyr for Peace in 2005. 68 Joint Letter Demanding Moratorium on Sakhalin QJ:www.oilwatch.org.ec/english. Nigeria, NONVIOLENT ACTION, May-June 2004, II Marine Activity to Lord Oxburgh, Chairman, 25 Dudley Althaus, Oil’s Legacy in Niger Delta May available at http://www.warresisters.org/nva0504-1. 46 Id. Shell Transport and Trading Company, p.l.c., 20 Be Pollution, Anger, HOUSTON CHRONICLE htm. September 2004, available at http://www.sakhalin. (Houston, Texas, USA), 17 December 2004, avail- 47 Miranda Andrew, Black Wednesday, Southern Star environment.ru/en/sakhalin2/mngomaterials.html. 3 Jack Doyle, Riding the Dragon: Royal Dutch Shell able at http://www.chron.com/ (Durban, South Africa), 23 April 2004. & the Fossil Fire (Environmental Health Fund, 69 Dan Lawn, et al., Sakhalin’s Oil: Doing It Right – cs/CDA/ssistory.mpl/world/2937143. 48 Shell Brazil Ltd., The Public Ministry of 2002), p. 161; John Ighodaro, Kaleidoscope: The Applying Global Standards to Public Participation, 26 Okon Bassey, Violence: MOSOP Blames Shell, Union/Public Ministry of Labor, et al, Pledge Term Old Man and the Creek, VANGUARD (Port Environmental Monitoring, Oil Spill Prevention Police, ALL AFRICA.COM, 22 August 2004, available of Behaviour Adjustment, Number 278/2004, Harcourt, Nigeria), 23 January 2005, available at and Response, Liability Standards in the Sakhalin at http://allafrica.com/stories/200408230791.html. Diario de Sao Paulo (Sao Paulo, Brazil) 24 January http://www.vanguardngr.com/articles/2002/fea- Oblast of the Russian Federation (Sakhalin 2005. tures/fe723012005.html. 27 Chris Finlayson, Shell Might Miss Flare Deadline in Environment Watch and Pacific Environment & Nigeria, FINANCIAL TIMES (London, England) 19 49 Id. Resource Center), November 1999. 4 Center for Constitutional Rights, Wiwa v. Royal January 2005; Michael Peel, Group Might Miss 50 Dutch Petroleum/Wiwa v. Anderson/Wiwa v. Shell Patricia Azevedo, Examinations Show a Link 70 Colombo to Be Dismantled in Kholmsk, The Flare Deadline, FINANCIAL TIMES (London, Petroleum Development Company, available Between Cancer and Shell/BASF, Correio Popular, Sakhalin Independent (Yuzhno-Sakhalinsk, Russia), England) 18 January 2005. athttp://www.ccr-ny.org/v2/legal/corporate_ (Campinas, Brazil) 12 January 2005. 13 May 2005, available at http://sakhalinindepen- 28. accountability/corporateArticle. Environmental Rights Action (Friends of the Earth, 51 Environmental Issue, Diario de Sao Paulo (Sao dent.com/images/environment/colombo%5Fto%5F Nigeria), Nigerian Soldiers Destroy Odioma be%5Fdismantled.htm. 5 William, Baue, Shell to Stand Trial for 1990s Paulo, Brazil), 25 January 2005. Community, 19 February 2005, available at 71 Human Rights Abuses in Nigeria, SOCIAL 52 Sakhalin I is a nearby project sponsored by http://www.eraction.org/index.php?page=mod- Environment: Agreement with Public Ministry, FUNDS.COM, 8 March 2002, available at ExxonMobil. ules&name=articles&action=view&artid=28. Folha De Sao Paulo (Sao Paulo, Brazil), 26 January http://www.socialfunds.com/news/article.cgi/ 2005. 72 Independent Scientific Review Panel, Impacts of article795.html. 29 Notes from Friends of the Earth (England, Wales 53 Sakhalin II Phase 2 on Western North Pacific Gray and Northern Ireland) Field Trip to Nigeria, April Id. 6 Pensions Investment Research Consultants, Ltd., Whales and Related Biodiversity, 16 February 2005, 2005. 54 Controversies Affecting Shell in Nigeria, Section Environmental Issue, Diario de Sao Paulo, (Sao p. 4, available at http://www.iucn.org/themes/busi- 6.0, Shell and Political Involvement, par. 6.11, 30 Id. Paulo, Brazil), 25 January 2005. ness/isrp/index.htm. March 1996, available at http://www.pirc.co.uk/ 55 31 Margaret Rowe, SAPREF Communications Shell Makes an Agreement with Workers in the Risk 73 Nick Mathiason, Trouble in the Pipeline, The shellmar.htm#s9. Manager, electronic mail to SDCEA adn Area, The State of Sao Paulo (Sao Paulo, Brazil), Observer (London, England) 20 March 2005. 7 25 January 2005. Andrew Rowell and Stephen Kretzmann, All for groundWork, 23 February 2005. 74 Wild Salmon Center Letter to Julian Barnes, Shell—The Ogoni Struggle (Project Underground, 56 32 Doreen Premdev, We Do Care, Says SAPREF Boss, Id. Sakhalin Energy Investment Corp., Ltd., 18 April First Edition 1 November 1996; Last Updated 4 Herald (Durban, South Africa), 6 March 2005. 57 2005, available at http://www.sakhalin.environ- March 1997). Patricia Azevedo, Examinations Show a Link 33 Between Cancer and Shell/BASF, Correio Popular ment.ru/en/sakhalin2/mngomaterials.html. 8 Id. , MD, Human Rights Around the (Campinas, Brazil) 12 January 2005. 75 Id. World: Nigeria, DOCTORS FOR GLOBAL HEALTH 34 SDCEA and Danish Fund for Nature, Comparison 58 Jack Doyle, Riding the Dragon: Royal Dutch Shell 76 REPORTER, Spring/Summer 2002, Vol. 6, Issue 1, of Refineries in Denmark and South Durban in an Lina Lazebnik and Dmitry Lisitsyn, The available at http://www.dghonline.org/ Environmental and Societal Context - a 2002 & Fossil Fire (Environmental Health Fund, 2002), Construction of the Liquid Natural Gas Plan (a part nl9/hrworld4.html. Snapshot, 2002. p. 50. of the Sakhalin II Project) and Its Negative Impacts 59 Upon the Local Infrastructure As Well As the 9 35 The 117 exceedences were above the 10 minute Behind the Shine – The Other Shell Report, 2003 John Ighodaro, Kaleidoscope: The Old Man and Inhabitants of the Town of Korsakov (ECA Watch) WHO guideline, which has been adopted in the (Friends of the Earth, England, Wales & Northern the Creek, VANGUARD (Port Harcourt, Nigeria), 23 4 December 2004, available at http://www.eca- National Environment Management: Air Quality Ireland, 2004), p. 23, available at January 2005, available at watch.org/problems/eu_russ/russia/LazebnikKorsako Act, 2004. The eThekwini Municipality has devel- www.foe.co.uk/resource/reports/behind_shine.pdf. http://www.vanguardngr.com/articles/2002/fea- vLNG_04dec04.htm. tures/fe723012005.html. oped an extensive monitoring protocol that can 60 Jack Doyle, Riding the Dragon: Royal Dutch Shell attribute sources of ambient air exceedences. For & the Fossil Fire (Environmental Health Fund, 77 Id. 10 Nigerian Tribe Gives Shell an Ultimatum, REUTERS further information regarding exceedences, see 2002), pp. 49-51; Patricia Azevedo, Examinations 78 NEWS SERVICE, 22 October 2004. Id. www2.nilu.no/airquality/. Samantha Enslin, Show a Link Between Cancer and Shell/BASF, 79 11 Owens Wiwa, MD, Human Rights Around the Pollution: Durban Pulls Out All Stops to Clean Correio Popular (Campinas, Brazil) 12 January Head of Natural Resources Department: Kholmsk World: Nigeria, DOCTORS FOR GLOBAL HEALTH Up Skyline, Business Report (Durban, South 2005. Behind the Shine: The Other Shell Report Oil Spill, The Sakhalin Independent (Yuzhno- REPORTER, Spring/Summer 2002, Vol. 6, Issue 1, Africa), 28 July 2004, available at http://www.bus- 2003 (Friends of the Earth, England, Wales & Sakhalinsk, Russia), 13 May 2005, available at available at rep.co.za/index.php?fArticleId=2165844. Northern Ireland, 2004), pp. 22-23. Shell Brazil http://sakhalinindependent.com/images/oilandgas/oi http://www.dghonline.org/nl9/hrworld4.html. l%5Fspill%5Fkhlmsk.htm. 36 Oilwatch Resistance Network, South Africa: Ltda., The Public Ministry of Union/Public 80 12 Notes from Friends of the Earth (England, Wales, Shell/BP’s Refinery, Refinery Resistance Bulletin, Ministry of Labor, et al, Pledge Term of Behaviour Lina Lazebnik and Dmitry Lisitsyn, The and Northern Ireland) Field Trip to Nigeria, April No. 41, chapter 6, September 2003, available at Adjustment, Number 278/2004, Diario de Sao Construction of the Liquid Natural Gas Plan (a part 2005. http://64.233.167.104/search?q=cache:3s973UIp3h Paulo (Sao Paulo, Brazil) 24 January 2005. of the Sakhalin II Project) and Its Negative Impacts 61 Upon the Local Infrastructure As Well As the 13 QJ:www.oilwatch.org.ec/english. Platform, Principle Objections: Analysis of the Id. Inhabitants of the Town of Korsakov (ECA Watch) 37 Sakhalin II Oil & Gas Projects’ Compliance with 14 Okon Bassey, Violence: MOSOP Blames Shell, SAPREF, Media Release: Final Update on Oil Spill 4 December 2004, available at http://www.eca- at Durban Container, 16 January 2004, available at the Equator Principles, May 2004, p. 7, available at Police, ALL AFRICA.COM, 22 August 2004, available http://www.sakhalin.environment.ru/en/sakhalin2/ watch.org/problems/eu_russ/russia/LazebnikKorsako http://www.sapref.com/news/mr040116.htm. at http://allafrica.com/stories/200408230791.html. mngomaterials.html. Animal Welfare Institute, Oil vLNG_04dec04.htm. 38 15 Nigerian Tribe Gives Shell an Ultimatum, REUTERS Miranda Andrew, Black Wednesday, Southern Star Exploration Threatens Rarest Whale with 81 Pacific Environment Watch, Hundreds Worldwide NEWS SERVICE, 22 October 2004. (Durban, South Africa), 23 April 2004. Extinction, Animal Welfare Quarterly, Summer Take to the Streets as Shell Announces Insufficient 39 2004, vol. 53, no. 3, available at http://www.animal- Sakhalin Plan, April 21, 2005 available at 16 Okon Bassey, Violence: MOSOP Blames Shell, South African Department of Environmental Affairs welfare.com/pubs/Quarterly/04-53-3/533p4.htm. http://www.pacificenvironment.org/articles/csfb_acti Police, ALL AFRICA.COM, 22 August 2004, available & Tourism (DEAT), Media Statement: DEAT ons.htm. at http://allafrica.com/stories/200408230791.html. Contains and Disperses Durban Harbour Oil Spill, 62 Shell Health, Safety, and Environment Panel, 9 September 2004, available at Technical Guidance for Environmental Assessment, 82 Sakhalin Energy Relocates Offshore Pipelines to 17 Nigerian Tribe Gives Shell an Ultimatum, REUTERS http://www.info.gov.za/speech- January 2000. Protect Whales, The Sakhalin Independent NEWS SERVICE, 22 October 2004. es/2004/04091009151001.htm. 63 (Yuzhno-Sakhalinsk, Russia), 13 May 2005, avail- 18 Pacific Environment Watch, Hundreds Worldwide Id. 40 Lora Rossler, SAPREF Sustainable Development Take to the Streets as Shell Announces Insufficient able at http://sakhalinindependent.com/ images/oilandgas/sakhalin%2D2%5Fpipelines%5Fr 19 World Bank, Defining an Environmental Strategy Manager, electronic email to SDCEA and Sakhalin Plan, April 21, 2005 available at for the Niger Delta, 30 May 1995, available at groundWork, 11 October 2004. http://www.pacificenvironment.org/articles/csfb_acti oute%5Frelocated.htm. 83 wds.worldbank.org/servlet/WDS_IBank_Servlet?. 41 SAPREF, Shutdown: Incredibly Complex, Yet ons.htm. Pacific Environment Watch, Hundreds Worldwide Take to the Streets as Shell Announces Insufficient 20 Notes from Friends of the Earth (England, Wales, Relatively Good, Column’s Newsletter, December 64 Behind the Shine – The Other Shell Report, 2003 and Northern Ireland) Field Trip to Nigeria, April 2004, p. 7, available at http://www.sapref.com/ (Friends of the Earth, England, Wales & Northern Sakhalin Plan, April 21, 2005 available at http://www.pacificenvironment.org/articles/csfb_acti 2005. pdf/Columnsdec04.pdf. Ireland, 2004), p. 26, available at ons.htm. 42 www.foe.co.uk/resource/reports/behind_shine.pdf. 21 Shell Global Solutions, Impact, Issue 1, 2000, page Margaret Rowe, SAPREF Communications 84 Id. 7: “A gas master plan (GMP) to meet a commit- Manager, electronic mail to SDCEA and 65 Impacts of Sakhalin II Phase II on Western North ment to end routine gas flaring by 2008 has been groundWork, 10 December 2004. Pacific Gray Whales and Related Biodiversity: 85 Wild Salmon Center Letter to Julian Barnes, completed for the Shell Petroleum Development 43 The 117 exceedences were above the 10 minute Report of the Independent Scientific Review Panel, Sakhalin Energy Investment Corp., Ltd., 18 April Company of Nigeria”. available at www.shellglobal- WHO guideline, which has been adopted in the available at http://www.iucn.org/themes/business/. 2005, available at http://www.sakhalin.environ- solutions.com/impact/pdfs/Impact03.pdf ment.ru/en/sakhalin2/mngomaterials.html. National Environment Management: Air Quality 66 Sakhalin Energy Relocates Offshore Pipelines to 22 Chris Finlayson, Shell Might Miss Flare Deadline in Act, 2004. The eThekwini Municipality has devel- Protect Whales, The Sakhalin Independent 86 Pacific Environment Watch, Hundreds Worldwide Nigeria, FINANCIAL TIMES (London, England) 19 oped an extensive monitoring protocol that can (Yuzhno-Sakhalinsk, Russia), 13 May 2005, avail- Take to the Streets as Shell Announces Insufficient January 2005; Michael Peel, Group Might Miss attribute sources of ambient air exceedences. For able at http://sakhalinindependent.com/ Sakhalin Plan, April 21, 2005 available at Flare Deadline, FINANCIAL TIMES (London, further information regarding exceedences, see images/oilandgas/sakhalin%2D2%5Fpipelines%5Fr http://www.pacificenvironment.org/articles/csfb_acti England) 18 January 2005. www2.nilu.no/airquality/. oute%5Frelocated.htm. ons.htm.

23 Shell Faces $1.5 bn Nigeria Bill, BBC NEWS 44 Doreen Premdev, We Do Care, Says SAPREF Boss, 67 Head of Natural Resources Department: Kholmsk 87 Fintan O’Toole, Walking All Over Our Rights, Irish (London, England), 25 August 2004, available at Herald (Durban, South Africa), 6 March 2005 Oil Spill, The Sakhalin Independent (Yuzhno- Times (, Ireland) 22 March 2005, available at http://www.ireland.com/newspaper/opin- Environmental Compliance Certificate (NCR 2004- iwgen/shareholder/shell_transport/stt_annual_gener- http://www.shell.com/home/Framework?siteId=us- ion/2005/0322/3988326322OPFINTAN.html. 1-12-006-103, 2003-11-492-MLA-103) 12 January al_meeting.html. en&FC2=/us-en/html/iwgen/leftnavs/zzz_lhn7_4_0. 2004. WVT Consultants, An Initial 88 Lorna Siggins, Shell Wants Commercial Court to 147 Id. html&FC3=/us-en/html/iwgen/society_environment/ Environmental Examination of the Proposed Rule on Gas Field, Irish Times (Dublin, Ireland) norco_shared/dir_norco_introduction_1510.html. Pandacan Scale Down: Terminal Facilities 148 Jonah Gindin, Shell and Venezuela’s State Oil 17 January 2005, available at 170 Company Agree to Major Joint Venture, Shell in the US, Shell Marine Habitat, available at http://www.ireland.com/newspaper/ire- Integration Project – Pandacan Oil Terminals, Venezuelanalysis.Com, 12 February 2005, available http://www.shell.com/home/Framework?siteId=us- land/2005/0117/746658548HM2CORRIB.html. Pandacan, Manila, November 2003, pp. ES-6-7, 46- 47. at http://www.venezuelanalysis.com/print.php?news- en&FC2=/us-en/html/iwgen/society_environment/ 89 Shell Accused of Trespass by Farmers Protecting the no=1513. environment/marine_habitat/zzz_lhn.html&FC3=/u 118 Health and Safety of Their Families. Pristine Lands Office of the Punon Barangays, Pandacan District s-en/html/iwgen/society_environment/environ- 149 Jeroen van der Veer, Royal Dutch/Shell CEO, Why and Estuary Threatened by Unprecedented Raw Gas IV, Manila, Position Paper in Favor of the ment/marine_habitat/dir_marine_habitat.html. Transparency Is Important, 17 March 2005 (Speech Pipeline and New Refinery, Global Community Development, Operation, and Maintenance of the presented to the Extractive Industries Transparency 171 Mary Swerczek, Shell Offers Buyout for All of Monitor, January 2005, available at Oil Depots by Caltex, Inc., Pilipinas Shell Conference, London), available at http://www.shell. Diamond, Times Picayune (New Orleans, http://www.shellfacts.com/frontline_Ireland.html. Petroleum Corporation, and Petron Corporation in Pandacan, Manila, 28 March 2003. com/static/mediaen/downloads/speeches/jvdveiti.pdf Louisiana, USA) 11 June 2002. 90 Lorna Siggins, Shell Ultimatum to Landowners 119 150 Rudie Kagie, The Last Colony, 1982. 172 Over Pipeline, Irish Times (Dublin, Ireland) 24 Blowing Smoke: Shell Caught in Contamination Louisiana Department of Environmental Quality, January 2005, available at http://www.ireland.com/ Cover Up, 12 May 2005, available at www.shell- 151 Jeroen van der Veer, Royal Dutch/Shell CEO, Why Evaluation-Norco, available at http://www.deq. newspaper/ireland/2005/0124/3988066954HM2C facts.com. Transparency Is Important, 17 March 2005 (Speech state.la.us/evaluation/norco. ORRIB.html. 120 Id. presented to the Extractive Industries Transparency 173 URS, Phase II – Ambient Air Quality Study in Conference, London), p. available at 91 Pullathomas Landslides: Future Still Uncertain, 121 Norco Community, Fourth Quarter Report Id. http://www.shell.com/static/media-en/ Western People (Ballina, Ireland) 19 May 2004. (January 1, 2004 to March 31, 2004), 4 June 122 downloads/speeches/jvdveiti.pdf. United Front to Oust Oil Depots, Community 2004, p. ES-1, available at http://www.shell.com/ 92 Doing The Dirty – Asbestos, Gas and Sludge: The Health Survey, 24 April 2005. 152 Jeroen van der Veer, Royal Dutch/Shell CEO, home/Framework?siteId=us-en&FC2=/us. North Co Mayo Battleground, Irish Times 123 Id. Seeking Clarity in Testing Times, 6 December 2004 (Dublin, Ireland) 1 January 2005, available at 174 In November 2003, Shell finally installed one moni- (Speech to the European Leadership Forum, Paris), http://www.ireland.com/newspaper/fea- 124 Id. tor at the American Legion Hall in Norco which p. 2, available at http://www.shell.com/static/media- tures/2005/0110/2169172711FTMONDIRTY- 125 University of the Philippines – College of Medicine, en/downloads/speeches/jvdv_clarity_in_testing_time operates continuously to monitor for non-methane MAYO.html. A Cross-Sectional Study on the Neurophysiologic s.pdf. hydrocarbons. However, all of the other monitors 93 Independent Media Centre Ireland, The Saga of the Effect of Exposure to Refined Petroleum Products only operate once every six days over a 24-hour 153 Jeroen van der Veer, Royal Dutch/Shell CEO, The Corib Gas Field, 26 August 2004, available at Among Adult Residence in Three Barangays Near period. Behind the Shine, The Other Shell Report Geopolitics of Oil and Energy, 24 August 2004 http://www.indymedia.ie/newswire.php?story_id=66 the Pandacan Oil Depots, February 2005. 2003 (Friends of the Earth, England, Wales and (Speech to the Offshore Northern Seas Conference, 344. Northern Ireland, 2004), p. 19, available at 126 Id. Stravanger), p. 3, available at http://www.shell.com/ www.foe.co.uk/resource/reports/behind_shine.pdf. 94 Id. static/media-en/downloads/speeches/ 127 Id. 175. Id. jvd_speech_24082004.pdf. 95 Doing The Dirty – Asbestos, Gas and Sludge: The 128 Department of Environment & Natural Resources – 176 URS, Phase II – Ambient Air Quality Study in North Co Mayo Battleground, Irish Times 154 Jim Atkinson, Bad Air Days, Texas Monthly Environmental Management Bureau, (Dublin, Ireland) 1 January 2005, available at (Austin, Texas, USA) 1 August 2003. 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