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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 Nigeria);
4 Niger Delta, 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,
Human Rights and Development; Pacific Environment
7 Durban, South Africa
Communities Doomed with Aging Refinery Watch; Sakhalin Environment Watch; Shell to Sea;
South Durban Community Environmental Alliance; and
United Front to Oust Oil Depots.
10 Sao Paulo, Brazil
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, Far East 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 County Mayo, 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
Development; Doug Norlen and David Gordon, Pacific
17 Pandacan, the Philippines Environment Watch; Dmitry Lisitsyn, Sakhalin
Negotiating Substandard Environmental Controls
Environment Watch; Maura Harrington, Shell to Sea;
Desmond D’Sa, South Durban Community Environmental
19 Curaçao, Netherlands Antilles Alliance; Wilma Subra, The Subra Company; and
Shell CEO Jeroen van der Veer 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
Northern Ireland); and Myrthe Verweij, Milieudefensie
24 Norco & Coastal Louisiana, USA (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-
F riends of the Earth is privileged to present this third alter-
native Shell Corporate Social Responsibility (CSR) report
on behalf of several of the many communities that live on
tion only accountability to shareholders. Some of Shell’s broad-
er stakeholders come together in this report to demand a wider
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

by claiming a commitment to human ers and Corporate Social Responsibility


T he year 2005 marks the 10th anniver-
sary of the death of Ken Saro-Wiwa,
the Nigerian author and activist who led
rights and sustainable development. principles that deliver meaningful change
on the ground are not part of this trans-
Contrary to its claims, the corporate formation.
the Movement for the Survival of the
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;
Curaçao, Netherlands Antilles; and the Around the world, people are uniting to
Given Shell’s dominant position in
Niger Delta, Nigeria. denounce the unjust corporate gover-
Nigeria and its historic relationship with
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
Ogoni and other peoples in the Niger
I n Nigeria, Shell operates under the
Shell Petroleum Development
Company (SPDC), a joint venture of
Delta. In 1995, Ken Saro-Wiwa and 13
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
abundant fisheries.2 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
oil spills.3 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 oil spill 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
February 2005 Members of the Odioma during the Ogoni crisis. One person is shot and
August/September 2004 Oil leak near Community in Bayelsa State protest against Shell
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
October 2004 Oil spill at Mogho along Shell’s arrested. Gangs, apparently linked to the gov-
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
grove at Goi. Tidal fluxes then spread the oil security forces.30
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
Shell’s operations to be reinstated there.26 people displaced and without homes.29

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,
caused by Shell’s operations.16 Tensions Rivers State Nigeria20
are building as the Ogoni people have Under pressure from Nigerian peoples
threatened mass action against SPDC if and the international community, Shell
police are not withdrawn from the area.17 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
Lord Oxburgh Faces the Truth
S outh Africa’s largest oil refinery is a
joint 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
Africa was to fulfill a promise he made to “ageing and needed attention”.32 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
committed to tour the South Durban both parties”.33 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 negotiations with Shell to overhaul the
municipal government shows that, in
binding air pollution regulations on a SAPREF refinery. One of the key out-
2004, there were 117 instances when
national level, having only non-binding comes of that process must be a five-year
SAPREF's air pollution would violate the
guidelines and no enforcement authority. pollution reduction and operational plan
new environmental law.35 Such data is
This changed on 19 February 2005 when that goes beyond present legislative
extremely useful to Durban residents,
South Africa President Thabo Mbeki requirements to meet the pollution and
who cannot rely on SAPREF to honestly
signed into law the National operational standards of the cleanest
present its pollution data. In February
Environment Management: Air Quality refineries globally. By February 2006,
2000, SAPREF management admitted
Act, 2004, which adopts the air quality this plan must be finalized, in consulta-
that it had underreported sulfur dioxide
guidelines established by the World tion with the local community, and all
emissions to the local government for the
Health Organisation (WHO). Durban necessary expenditures to implement the
last five years by as much as 12 tons a
residents, who have long suffered from plan must be authorized.
day—or 10 million pounds a year—for a
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 fuel oil 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
releases massive black clouds of chemicals
Indian, and mixed race communities.
that extend for 20 kilometres over Durban.38
Unfortunately, the end of apartheid has
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
27 November 2004 Three workers are
development. There have been several
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
requiring hospitalisation. Because the environment.42
Shell claims that it has voluntarily adopt-
SAPREF does not use effective rust ed the guidelines of the Organisation for December 2004 Air monitoring program
detection equipment, as is commonly Economic Co-operation and established by the municipal government
used at Shell facilities in Europe, 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 agement and operation of the SAPREF violate the new environmental law.43
major fuel leak was caused by a rust refinery. But SAPREF’s massive pollution
defect in a SAPREF pipeline.45 Over 1.3 5 March 2005 Lord Oxburgh travels to
and frequent malfunctions demonstrate
million litres of petrol have been recov- Durban and admits at a meeting with com-
that such policies have little meaning on
ered to date, and it is estimated that munity residents that SAPREF is “ageing and
the ground. SAPREF has received ISO
remediation efforts for this massive leak needed attention”.44
14001 and 9001 certifications, but these
will continue until 2015.46 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
Furthermore, medical examinations have
F or some 20 years, Shell produced pes-
ticides and stored oil products at its
facilities at Vila Carioca and Paulinia in
shown the presence of heavy metals and
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
medical examinations.51 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
examinations.52 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 Exxon 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
Although Shell generally acknowledges
S akhalin Island is located in the
Russian Far East, to the north of
Hokkaido, Japan. It is home to rich fish-
that its activities and operations can
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 natural gas
(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 Sakhalin Energy 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 Exxon Valdez oil tanker 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-
feeding habitat of the whale.65 Only then annual general meeting, Sakhalin II is a sultants in 1999,69 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
panel are being ignored by Shell. Citizens of shoreline, including a popular public dredger.70 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-
Sakhalin II ficient to drive the population towards
The Year at a Glance
extinction with high probability. . . [T]he
Sakhalin’s Indigenous Peoples—
most precautionary approach would be to
September 2004 Oil spill from a Sakhalin II
Indigenous people on Sakhalin Island
suspend present operations and delay fur-
dredger blankets six kilometers of coastline. have demanded an independent cultural
ther development of the oil and gas
Shell’s response is late and inadequate.79 impact assessment of Sakhalin II and a
reserves in the vicinity of the grey whale
compensation fund for losses arising from
December 2004 Report claims that social feeding grounds off Sakhalin, and espe-
the project. During January 2005, over
conditions on Sakhalin Island are deteriorat- cially the critical nearshore feeding
ing significantly as a result of Shell’s failure to 200 members of Sakhalin Island’s Nivkh,
ground that is used preferentially by
prepare for the influx of thousands of construc- Uilta, Nanai and Evenk peoples endured
mothers and calves. . . . ”72
tion workers to Korsakov and surrounding minus-30 degree Celsius temperatures for
communities.80 five days in order to blockade the The Wild Salmon Center—Responding
January 2005 Shell ignores Indigenous peo- Sakhalin I71 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
hoods.81 deer pastures, and their livelihoods from construction slashing through forests and
March 2005 Shell re-routes pipeline away
the growing dangers of irresponsible oil 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
March 2005 Shell continues to threaten International Public Banks—In 2003
Grey Whale by refusing to move the oil
indicate a number of potentially serious
the European Bank for Reconstruction
drilling platform.83 lapses of quality control, including con-
and Development (EBRD) and the
struction roads directly through streams,
March 2005 Shell ignores the majority of Export Credit Agencies of the United
vehicle tracks through streams, bridges
the issues identified by the Independent States, the United Kingdom, and Japan
that obstructed stream flow, water flow-
Scientific Review Panel that Shell itself com- determined that the Sakhalin II
missioned.84 ing unchecked through construction
Environmental, Social, Health Impact
sites, and small streams clogged with
March 2005 The Wild Salmon Center Assessment is “unfit for purpose”. Shell’s
construction debris”.74 They also noted
accuses Sakhalin II construction companies of self-serving assessment failed to correctly
additional concerns, including “construc-
“potentially serious lapses of quality con- state the baseline conditions of Sakhalin
trol”.85 tion of pipelines through spawning areas
Island and the negative consequences of
and wintering pools [which] is specifical-
April 2005 Sakhalin II contractors begin
the project. Consequently, these public
ly and directly prohibited by the Russian
dumping 2 million cubic meters of dredged banks vowed to withhold consideration
Federal Law on Wildlife and related reg-
materials into Aniva Bay, an important habitat of up to $5 billion USD in financing for
for one-third of Sakhalin’s commercial fisheries
ulations”.75
the Sakhalin II project until fundamental
resources.86 problems are remedied. A final decision
A Turn for the Worse
from the EBRD is due later this year.
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
Western Grey Whale: “. . . [M]ost impor- project.76 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
Several local residents, who own 50 per
F or the past three years, Shell has been
running roughshod over local com-
munities on the west coast of Ireland,
cent of the land earmarked for the
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
”No Trespassing” sign erected by Teresa McGarry and constructing a massive, high pressure heavy metals and toxins like lead, nickel,
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 mercury. This toxic waste will be
beautiful and sensitive area of wild
because of safety concerns. (Denny Larson/GCM)
coast.87 pumped into Broadhaven Bay.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 Rossport, 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
the environment, health, and safety—is
I n Manila, the Philippines, Shell has
evaded citizens’ demands to remove its
hazardous oil depot from the densely
woefully inadequate (see below). On 12
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
areas around the Shell depot on a real-time basis. between Shell and the government offi- elimination of these toxins.116 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, Caltex 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-
substandard environmental controls.128 standing demands for reducing air pollu-
sign a document that would help Shell to
keep its oil depot in Pandacan. The lead- tion, Shell has said that it will conduct
February 2005 An initial medical study
conducted by the University of the ers who signed the document received a an air quality study.123 But the company
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 that Shell is already using such equip-
in petroleum products stored at the oil ingful environmental protection.
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
toring, using state-of-the-art equipment,
An initial medical study conducted by
that detects toxic gases on a real-time
detects high levels of chemical gases in the the University of the Philippines College
basis at extremely low levels in the parts
air when trucks are being loaded with oil of Medicine in February 2005 revealed
products at the depot and when they are
per billion range.119 This hand-held device
that Pandacan residents have been
idling. The monitor also detects high levels showed the presence of toxic emissions at
exposed to neurophysiological toxins
of chemical gases near drains located in a their highest concentrations when trucks
recently created oil depot buffer zone that
which are present in petroleum products
are being loaded with fuels and oil prod-
has recreational facilities for children.131 stored at the oil depot.125 Medical stu-
ucts at the oil depot, and when trucks are
dents examined residents for their deep
May 2005 Shell says it will conduct an air idling.120 The air monitor also revealed
tendon reflexes, dynamometry (muscle
quality study, but will not use state-of-the-art high levels of chemical gases in the air
equipment, despite the fact that it uses such
strength), lead levels in urine, and nerve
near drains located in a recently created
equipment elsewhere.132 conduction velocity.126 This study con-
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 ropathy (nerve damage) decreases.127
operations. (Denny Larson/GCM)
living in four barangays (council dis-
Location Reports 19

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

Netherlands
Antilles
structure.136 His pub-
P eople living on the island of Curaçao
are looking to Shell to clean up the
toxic mess it created while operating a
lic speeches depict
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
through the ranks to become the Chief Jeroen van der Veer, wealth.137 However,
Executive Officer of Royal/Dutch Shell, Royal Dutch/Shell CEO as a previous Shell
(Shell)
regularly gives speeches asserting that a 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
polluted land and water.
2001, Petroleos de Venezuela Sociedad manager unabashedly asserted: “The
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
on host communities”.151 Curaçao.145 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
general meeting.146 Luis Guisti worked at As the CEO of Shell, Jeroen van der Veer
ensure they benefit local communities and
safeguard their environment”.152 PdVSA for over 20 years.147 Currently, is now in a position to right the wrongs
Shell is partnering with PdVSA in a of Shell’s operations in Curaçao, and
24 August 2004 Shell CEO Jeroen van demonstrate to the world a leadership
der Veer states: “International companies
long-term joint venture to operate a liq-
uefied natural gas terminal in the that fulfills his often repeated commit-
must demonstrate a continuing commitment
to the countries in which they work—invest- Caribbean.148 ment to human rights, health, environ-
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
public. The Shell we know recklessly oper- Although Shell claims that it strives to
ates an oil refinery across the street from improve its environmental perform-
our homes. Every day Shell dumps toxic ance,155 chronic malfunctions are all too
pollution on our neighborhood that is common at Motiva.156 Fatalities among
damaging our health, especially our chil- workers make Shell facilities, including
dren who can’t breathe without an Motiva, among the most dangerous in
inhaler.” the United States.157

—Hilton Kelley, Director of Community Motiva has taken advantage of huge


In-power Development Association exemptions in U.S. environmental regu-
lations, which allow the refinery to
exceed pollution limits whenever a mal-
Flaring from the Shell-Motiva refinery in the Port Arthur
function occurs. Such exemptions have
neighborhood on February 14, 2005.
(Hilton Kelly/CIDA) I n the African American neighborhood
of West Port Arthur, located in the
eastern part of the state of Texas in the
been criticized for encouraging compa-
nies like Shell to ignore corrective meas-
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
Saudi Aramco, 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
released into the air.167 See list above for
(514,910 pounds) of toxins as a result of
details. malfunctions in 2003.162

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. March by residents of West Port Arthur and Beaumont,
pounds) of toxins as a result of malfunctions
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


residents of Port Arthur and Beaumont to exempting wealthy corporations like
106,495.46 kg (234,784.17 pounds) of
demand that their elected officials require Shell from paying local taxes.
toxins to be released into the air in
pollution reduction at Motiva and surround-
ing facilities, and stop exempting wealthy 2004.163 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-
art air monitoring device that detects toxic detections of toxins in the air, and can
On 12 November 2004, the residents of
chemicals on a real-time basis. indicate when a toxin is at a concentra-
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
View of the Motiva refinery from the Port Arthur
dents of Port Arthur and Beaumont to
members plan to use this air monitoring
neighborhood. (Denny Larson/GCM) demand that their elected officials
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
2002. CCN successfully compelled Shell
S hell takes pride in its two programs
designed to address and support envi-
ronmental concerns in the town of
to meet the community’s demands for a
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-
tem. (Darryl Malek-Wiley/Sierra Club)
knit African American families have
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 2004 Shell has still not acknowledged any
through March 31, 2004, detected 49 of
Louisiana. Shell is seeking governmental of the potential health impacts of its opera-
the 51 VOCs.176 Twenty VOCs made up
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 June 2004 The most recent emission data
miles off the state coast. Shell plans to
causing agent) and toluene (a develop- show that 49 of the 51 monitored volatile
transport liquefied natural gas that has organic chemicals are present in Norco air.186
mental and reproductive toxin) were two
been frozen to a temperature of 260
of the major components.178 The loca- September 2004 Shell dismisses these emis-
degrees below zero to its proposed termi-
tions of the monitors detecting VOCs sions, ignoring the potential cumulative
nal on huge tanker ships. At this termi-
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. mental organizations oppose the “open-loop”
involve the daily intake of 757,082,400
system for Shell’s proposed LNG terminal in
Shell dismisses these VOC emissions litres (200 million gallons) of gulf water
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
den drop in water temperature and the proposed LNG terminal in coastal
However, for more than a decade scientif- 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

ing the company’s failure to address the


T his alternative Shell report and the
ones produced over the last two
years190 present a unique look at several of
cases featured in this report, demon-
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
angry with fenceline community representatives at the
these communities all have in common is
accountability and liability.191 Friends of the
end of Shell's annual general meeting in 2004. (Denny that they have been used by Shell as the
Larson/GCM) Earth is campaigning for corporate account-
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 Jamie Walls, Shell International Relations Manager (left,
examples in this report, rights for fence- front), attempts to counter the testimony of several fence-
regard for these new duties, would have 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: Royal Dutch Shell 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, cs/CDA/ssistory.mpl/world/2937143. 69
Dan Lawn, et al., Sakhalin’s Oil: Doing It Right –
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
Patricia Azevedo, Examinations Show a Link
Dutch Petroleum/Wiwa v. Anderson/Wiwa v. Shell 70
Colombo to Be Dismantled in Kholmsk, The
Flare Deadline, FINANCIAL TIMES (London, Between Cancer and Shell/BASF, Correio Popular,
Petroleum Development Company, available Sakhalin Independent (Yuzhno-Sakhalinsk, Russia),
England) 18 January 2005. (Campinas, Brazil) 12 January 2005.
athttp://www.ccr-ny.org/v2/legal/corporate_ 13 May 2005, available at http://sakhalinindepen-
accountability/corporateArticle. 28.
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 Paulo, Brazil), 25 January 2005. be%5Fdismantled.htm.
5
William, Baue, Shell to Stand Trial for 1990s
Community, 19 February 2005, available at
Human Rights Abuses in Nigeria, SOCIAL 52
Environment: Agreement with Public Ministry,
71
Sakhalin I is a nearby project sponsored by
http://www.eraction.org/index.php?page=mod-
FUNDS.COM, 8 March 2002, available at Folha De Sao Paulo (Sao Paulo, Brazil), 26 January ExxonMobil.
ules&name=articles&action=view&artid=28.
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
Id. Sakhalin II Phase 2 on Western North Pacific Gray
and Northern Ireland) Field Trip to Nigeria, April Whales and Related Biodiversity, 16 February 2005,
6
Pensions Investment Research Consultants, Ltd.,
2005. 54
Environmental Issue, Diario de Sao Paulo, (Sao p. 4, available at http://www.iucn.org/themes/busi-
Controversies Affecting Shell in Nigeria, Section
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
Shell Makes an Agreement with Workers in the Risk 73
Nick Mathiason, Trouble in the Pipeline, The
31
Margaret Rowe, SAPREF Communications
shellmar.htm#s9. Area, The State of Sao Paulo (Sao Paulo, Brazil), Observer (London, England) 20 March 2005.
Manager, electronic mail to SDCEA adn
7
Andrew Rowell and Stephen Kretzmann, All for groundWork, 23 February 2005. 25 January 2005. 74
Wild Salmon Center Letter to Julian Barnes,
Shell—The Ogoni Struggle (Project Underground, 56
Id. Sakhalin Energy Investment Corp., Ltd., 18 April
32
Doreen Premdev, We Do Care, Says SAPREF Boss,
First Edition 1 November 1996; Last Updated 4 2005, available at http://www.sakhalin.environ-
Herald (Durban, South Africa), 6 March 2005. 57
Patricia Azevedo, Examinations Show a Link
March 1997). ment.ru/en/sakhalin2/mngomaterials.html.
33
Id. Between Cancer and Shell/BASF, Correio Popular
8
Owens Wiwa, 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
REPORTER, Spring/Summer 2002, Vol. 6, Issue 1, of Refineries in Denmark and South Durban in an
58
Jack Doyle, Riding the Dragon: Royal Dutch Shell 76
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
Behind the Shine – The Other Shell Report, 2003 Upon the Local Infrastructure As Well As the
9
John Ighodaro, Kaleidoscope: The Old Man and 35
The 117 exceedences were above the 10 minute
(Friends of the Earth, England, Wales & Northern Inhabitants of the Town of Korsakov (ECA Watch)
the Creek, VANGUARD (Port Harcourt, Nigeria), 23 WHO guideline, which has been adopted in the
Ireland, 2004), p. 23, available at 4 December 2004, available at http://www.eca-
January 2005, available at National Environment Management: Air Quality
www.foe.co.uk/resource/reports/behind_shine.pdf. watch.org/problems/eu_russ/russia/LazebnikKorsako
http://www.vanguardngr.com/articles/2002/fea- Act, 2004. The eThekwini Municipality has devel-
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
Id.
NEWS SERVICE, 22 October 2004.
www2.nilu.no/airquality/. Samantha Enslin, Show a Link Between Cancer and Shell/BASF,
11
Owens Wiwa, MD, Human Rights Around the Pollution: Durban Pulls Out All Stops to Clean Correio Popular (Campinas, Brazil) 12 January
79
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. Ltda., The Public Ministry of Union/Public l%5Fspill%5Fkhlmsk.htm.
36
Oilwatch Resistance Network, South Africa:
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 80
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
QJ:www.oilwatch.org.ec/english. 61
Platform, Principle Objections: Analysis of the Upon the Local Infrastructure As Well As the
13
Id. Inhabitants of the Town of Korsakov (ECA Watch)
37
SAPREF, Media Release: Final Update on Oil Spill Sakhalin II Oil & Gas Projects’ Compliance with
14
Okon Bassey, Violence: MOSOP Blames Shell, the Equator Principles, May 2004, p. 7, available at 4 December 2004, available at http://www.eca-
Police, ALL AFRICA.COM, 22 August 2004, available at Durban Container, 16 January 2004, available at watch.org/problems/eu_russ/russia/LazebnikKorsako
http://www.sakhalin.environment.ru/en/sakhalin2/
at http://allafrica.com/stories/200408230791.html. http://www.sapref.com/news/mr040116.htm. vLNG_04dec04.htm.
mngomaterials.html. Animal Welfare Institute, Oil
15
Nigerian Tribe Gives Shell an Ultimatum, REUTERS
38
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
South African Department of Environmental Affairs 2004, vol. 53, no. 3, available at http://www.animal- Sakhalin Plan, April 21, 2005 available at
16
Okon Bassey, Violence: MOSOP Blames Shell,
& Tourism (DEAT), Media Statement: DEAT welfare.com/pubs/Quarterly/04-53-3/533p4.htm. http://www.pacificenvironment.org/articles/csfb_acti
Police, ALL AFRICA.COM, 22 August 2004, available
Contains and Disperses Durban Harbour Oil Spill, 62
Shell Health, Safety, and Environment Panel, ons.htm.
at http://allafrica.com/stories/200408230791.html.
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
Pacific Environment Watch, Hundreds Worldwide (Yuzhno-Sakhalinsk, Russia), 13 May 2005, avail-
18
Id. 40
Lora Rossler, SAPREF Sustainable Development able at http://sakhalinindependent.com/
Take to the Streets as Shell Announces Insufficient
19
World Bank, Defining an Environmental Strategy Manager, electronic email to SDCEA and Sakhalin Plan, April 21, 2005 available at images/oilandgas/sakhalin%2D2%5Fpipelines%5Fr
for the Niger Delta, 30 May 1995, available at groundWork, 11 October 2004. http://www.pacificenvironment.org/articles/csfb_acti oute%5Frelocated.htm.
wds.worldbank.org/servlet/WDS_IBank_Servlet?. 41
SAPREF, Shutdown: Incredibly Complex, Yet ons.htm. 83
Pacific Environment Watch, Hundreds Worldwide
20
Notes from Friends of the Earth (England, Wales, Relatively Good, Column’s Newsletter, December 64
Behind the Shine – The Other Shell Report, 2003 Take to the Streets as Shell Announces Insufficient
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
pdf/Columnsdec04.pdf. http://www.pacificenvironment.org/articles/csfb_acti
2005. Ireland, 2004), p. 26, available at
ons.htm.
42
Margaret Rowe, SAPREF Communications www.foe.co.uk/resource/reports/behind_shine.pdf.
21
Shell Global Solutions, Impact, Issue 1, 2000, page
Manager, electronic mail to SDCEA and
84
Id.
7: “A gas master plan (GMP) to meet a commit- 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
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66
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22
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Pacific Environment Watch, Hundreds Worldwide
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Terry Macalister, The Oilman Cometh, with Low-
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Shell in the US, Shell Norco, available at www.corporate-responsibility.org.

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