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Toxic legacy of Shell in Ecuador, Panama, and Costa Rica?

By John Donovan

Shell Oil Company is one of the defendant’s, along with Dole Food Company, Dow Chemical Company and others, in a current lawsuit in the U. S. District Court, Eastern District of Louisiana (New Orleans).

The Plaintiffs – plantation workers from Ecuador, Panama, and Costa Rica – allege that their health, welfare, and lives have been damaged from exposure to an extremely hazardous chemical pesticide, dibromochloropropane (“DBCP”)  manufactured and sold under various trade names, including Nemagon.

It is further alleged that:

  • Shell and Dow continued to sell a DBCP product although already aware “testicular atrophy may result from prolonged, repeated exposure”
  • A Shell official instructed that speculation about possible harmful conditions to man should be omitted from registration of the product with the United States Department of Agriculture.
  • After the U.S. authorities banned the manufacture of DBCP the Defendants exported existing stocks of DBCP for use on plantations overseas.

The next hearing – a status conference – is scheduled 29 February 2012 before Judge Lemelle.

CASE No: 2:11-cv-01305-CJB-SS.

The following extracts are taken from the Plaintiffs’ Original Complaint filed on 1 June 2011.

1. Plaintiffs are citizens of Ecuador, Panama and Costa Rica. The Plaintiffs have had their health, welfare, and lives damaged from exposure to an extremely hazardous chemical pesticide, dibromochloropropane (“DBCP”), manufactured, distributed or used by the Defendants on the farms where the Plaintiffs worked in commercial banana cultivation.

2. This lawsuit is brought by Plaintiffs to recover compensation for damages to their health, welfare, and lives that resulted from the injuries caused by the Defendants and for the costs of medical monitoring for DBCP related conditions including sterility or abnormally low sperm counts, cornea damage, cancer, chronic skin disorders, compromised renal systems and damage to their pulmonary and respiratory function.

15. Defendant Shell Oil Company is a Delaware corporation with its principal place of business in Texas, which, at all times pertinent herein, was authorized to do and was doing business within the jurisdiction of this Honorable Court.

21.Defendants The Dow Chemical Company, Occidental Chemical Corporation, AMVAC Chemical Corporation, Shell Oil Company, Standard Fruit Company, Standard Fruit and Steamship Company, Dole Food Company, Inc, Dole Fresh Fruit Company, Chiquita Brands, Inc., Chiquita Brands International, Inc., Maritrop Trading Company and Del Monte Fresh Produce, N.A., manufactured, sold, distributed, and/or used nematocides containing the chemical dibromochloropropane, commonly known as DBCP, and sold under the trade names Fumazone, Nemagon, Oxy 12 and simply DBCP in places where the Plaintiffs lived and worked resulting in Plaintiffs’ exposure to DBCP.

22. Plaintiffs, on information and belief, allege that AMVAC Chemical Corporation, Shell Oil Company, The Dow Chemical Company, and Occidental Chemical Corporation (“the Manufacturer Defendants”) performed many of the tortious acts described below through their predecessors and/or alter ego/agent corporations in New Orleans that had a direct and deleterious impact on the Plaintiffs’ health and well being in and around the banana plantations where they lived and worked.

32. Environmentally, DBCP is regarded as a highly persistent and mobile pesticide. DBCP decomposes slowly in soil, and studies show that DBCP remains in soils for years and is able to migrate through certain soils. DBCP is chemically stable in water, even in very small amounts, and persists in water for years and DBCP has also been reported as a low-level air contaminant. DBCP has been widely found as a contaminant in ground and surface water in California, Hawaii, and elsewhere in the United States and abroad. In California and Hawaii, municipalities have recovered significant sums from The Dow Chemical Company, Shell Oil Company, Occidental Chemical Corporation and AMVAC for costs related to the clean-up of DBCP-contaminated water supplies.

33. The use of DBCP as a nematocide was first suggested by researchers at the Pineapple Research Institute, the research arm of the Pineapple Growers Association of Hawaii. The Pineapple Research Institute (PRI) and the Pineapple Growers Association (PGAH) were a joint venture principally of Dole and Del Monte, along with a small number of other Hawaiian pineapple growers, and both Dole and Del Monte were in control of and had access to the Institute’s research on DBCP from the outset of the product’s development. This research led to the first patented use of DBCP as a nematocide. The Institute later assigned the patent to both Dow and Shell for further development but retained a royalty interest in the patent.

34. What little pre-market toxicology research that was done on DBCP was conducted in or around 1958 by Dow’s company doctor, Dr. Ted Torkelson, and by Shell’s consultant, Dr. Charles Hine of the University of California Medical School in San Francisco. In testing DBCP on rats, both labs found that DBCP caused retarded growth, organ damage, shrunken testes, and sterility.

35. In an April 1958 “confidential report,” Dr. Hine at Shell wrote that “among the rats that died, the gross lesions were especially prominent in lungs, kidneys, and testes. Testes were usually extremely atrophied.” Dow’s first in-house report came three months later, in July 1958, and concluded that DBCP was “readily absorbed through the skin and high in toxicity in inhalation.” Dow’s data also showed that “liver, lung and kidney effects might be expected” and that “testicular atrophy may result from prolonged, repeated exposure.” This information, of course, should have stopped the marketing of DBCP before it was ever sold. Decades later, when American factory workers producing DBCP were found to be sterile and doctors in Costa Rica began to diagnose sterility in hundreds of banana plantation workers, health officials would question why Dow and Shell continued to sell a product knowing that “testicular atrophy may result from prolonged, repeated exposure.”

36. In 1961, a joint Dow-Shell report on the hazardous effects of DBCP was published in Toxicology and Applied Pharmacology. Although this data was published in an academic journal, the information contained in the report never appeared in technical data sheets (the forerunners to today’s material safety data sheets, or MSDSs). Moreover, the PGAH distributed this information to its members, including Dole and Del Monte, in 1961.

37. In May 1961, Dr. Hine, who was now working jointly for Dow and Shell, drafted a report in support of USDA registration of DBCP. Dr. Hine’s draft report called for work place concentrations of DBCP to be kept under one part per million (“ppm”) and recommended the use of impermeable protective clothing if skin contact with DBCP was likely. Louis Lykken, who was in charge of government registration of chemicals for Shell, dismissed the suggestion as “impractical.” Hine concluded the animal studies and then made the observation that repeated exposure could affect human reproduction, which was contained in the draft report to the USDA. Lykken made Shell’s interests clear: “Leave out speculation about possible harmful conditions to man. This is not a treatise on safe use.”

38. In 1961, responding to Shell’s proposed labels for DBCP, a USDA official wrote: “in view of the testicular atrophy demonstrated to occur in experimental animals, we would like to have information regarding health records of those individuals who have been employed for an extended period in the manufacture or formulation of products containing DBCP.” A flurry of memos ensued. The following are excerpts from Shell’s internal memoranda:

August 21, 1961: “We have discussed with Dr. Zavon USDA’s precautionary labeling and the hazards associated with this pesticide chemical. He shares our opinion that USDA is being over cautious in their views on labeling products containing this pesticide chemical. It is the consensus that Dr. Zavon and a representative of Dow’s toxicology group should meet with the USDA toxicology section representatives to settle this issue.”

August 29, 1961: “We have just received and reviewed the subject technical bulletin [and information brochure on Nemagon (Shell's flagship product)] and have some reservations with regard to the adequacy of the statements under safety precautions. In light of the fact that the threshold of odor detection has been reported at one point at seven parts per million and the lowest level studied [five parts per million] has demonstrated damage after repeated exposures, it appears the statement “there is a good margin of safety in handling” would be difficult to justify and might be prosecuted as negligent.”

November 9, 1961: “The pesticides regulations branch of the U. S. Department of Agriculture has expressed concern over the hazards associated with the use of Nemagon soil fumigant and proposed stringent labeling for the various formulations now being marketed. It is the consensus in the division office that the USDA is being overly cautious and the precautionary statements proposed could have an adverse affect on the sale of this product. This matter has been discussed with the USDA representatives and they are willing to relax their labeling requirements if we can provide them with a history of safe use experience in the field and in the manufacturing plant.”

39. Dow was similarly cavalier when it considered the effects that warning about DBCP’s dangers would have on sales of DBCP.

(First sentence only)

45. By 1976, DBCP had been identified as a suspected carcinogen by the EPA, even though Dow, Shell, Del Monte and Dole learned of the chemical’s health risks at least 15 years earlier. In July 1977, thirty-five of one hundred fourteen workers who manufactured DBCP at Occidental’s Lathrop, California plant were found to be sterile. One month later, the EPA suspended DBCP from all but a few highly controlled uses in Hawaii. Even in Hawaii, use was permitted only under heavily restricted conditions with extensive protective equipment. Finally, in 1979, the EPA canceled the registration for DBCP for all uses in the United States. Unfortunately, the large-scale use of DBCP on agricultural operations in the United States had already led to extensive groundwater contamination in Hawaii, California, and elsewhere and large stocks on hand.

46. The U.S. ban on manufacturing of DBCP, however, did not prevent the Defendants from exporting existing stocks of DBCP for use on plantations overseas. When Dow informed Standard that it planned to halt sales and wait for EPA test results, Standard responded by threatening to sue Dow: “Your halt of shipping our outstanding orders is viewed as a breach of contract.” Dow quickly relented after Standard agreed to indemnify Dow against claims for injuries resulting from DBCP use, compelling evidence that Dow expected such injuries to occur.

49. The Plaintiffs were diagnosed with sterility related to DBCP exposure. Defendants fraudulently concealed Plaintiffs’ injuries, the causes of Plaintiffs’ injuries, and the Plaintiffs’ legal right to compensation.

56. Plaintiffs further allege that the named Defendants and/or their predecessors in interest knowingly agreed, contrived, combined, confederated and conspired among themselves and with others to cause the Plaintiffs’ injuries, illnesses, and diseases by exposing the Plaintiffs to harmful and dangerous DBCP-containing products and to deprive the Plaintiffs of the opportunity of informed free choice as to whether to use the DBCP- containing products and to expose themselves to the dangers. Defendants committed the above-described wrongs by willfully misrepresenting and suppressing the truth as to the risks and dangers associated with the use of and exposure to Defendants’ DBCP-containing products. Each of the Defendants aided and abetted one or more of the other Defendants in committing the tortious acts that caused the Plaintiffs’ injuries.

77. Defendants demonstrated and are liable for a wanton and reckless disregard for public safety in the handling, storage and/or transportation of DBCP by continuing to sell, distribute and use DBCP after 1984. Such wanton and reckless conduct contributed to Plaintiffs’ exposure to DBCP through continued contamination of air the Plaintiffs breathed, water the Plaintiffs consumed and bathed in and soil in which the Plaintiffs worked.

RELATED ARTICLES

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Toxic Shell: 24 July 2010

Clovis sues Dow, Shell Oil over fouled water

Clovis is suing two chemical manufacturing giants over the toxic remains of a farm fumigant found in drinking-water wells around the community of nearly 100,000 people. This is not the first time Dow Chemical and Shell Oil have been sued in the Valley over contamination from fumigants. Fresno, Sanger and Livingston won multimillion-dollar settlements from Dow and Shell in the 1990s over the chemical dibromochloropropane, or DBCP.

City takes on companies after farm fumigant found in wells.

By Mark Grossi – The Fresno Bee Friday, Feb. 10, 2012 | 10:22 PM

Clovis is suing two chemical manufacturing giants over the toxic remains of a farm fumigant found in drinking-water wells around the community of nearly 100,000 people.

The case will be watched closely by other San Joaquin Valley cities also suing over the same contamination. Clean-water advocates fear this powerful and unregulated chemical, which has been linked to cancer, has been in wells throughout the region for years.

The Clovis case is among at least 11 actions filed against Dow Chemical Co. and Shell Oil Co., seeking the cleanup of 1,2,3-trichloropropane, or TCP. The chemical was in farm fumigants last used in the 1980s. The chemicals were injected into the ground to kill tiny worms called nematodes.

TCP has not yet been regulated because technology does not exist to measure it at extremely low levels, state officials say. The chemical is so toxic that it is unsafe to drink at levels far lower than what can currently be detected — another point of concern for clean-water advocates.

Over the past several years, the chemical has been detected in 18 of Clovis’ 35 active municipal wells, officials say. Cleanup might cost millions of dollars.

The city of Livingston in Merced County last year received $9 million to settle its case against the two manufacturers and a distributor, Wilbur-Ellis Co.

Clovis officials said residents should not have to pay for the cleanup, which would involve the use of carbon filters. A court date for the trial is expected to be set later this year.

Dow disagrees with Clovis and will defend its position, said a spokesman at the company’s Michigan-based headquarters. He declined further comment because the case is in progress.

Shell officials did not respond to a request for comment.

This is not the first time Dow Chemical and Shell Oil have been sued in the Valley over contamination from fumigants. Fresno, Sanger and Livingston won multimillion-dollar settlements from Dow and Shell in the 1990s over the chemical dibromochloropropane, or DBCP.

Wells in many Valley cities already have carbon filters for DBCP. Engineers say filters would have to be larger and changed more often to filter TCP because the contamination level must be reduced much lower than most chemicals in drinking water.

The California Department of Public Health has a goal of keeping TCP to levels in the parts per trillion, which is 1,000 times lower than the limit set for many chemicals.

The TCP health goal, set by state officials in 2009, is .7 parts per trillion, which cannot yet be accurately measured, officials said. An analogy for perspective: One part per trillion is like one penny among $10 billion.

Scientists say TCP causes cancer in laboratory animals and damages the liver and kidneys in humans. Clean-water advocates say state and federal authorities should be moving faster to protect the public.

“TCP is harmful at extremely low levels,” said lawyer Laurel Firestone of the Community Water Center, a nonprofit advocacy group in Visalia. “But it’s not regulated. People don’t know if they’re drinking it or not.”

The Department of Public Health’s website shows TCP has been detected in many San Joaquin Valley cities, including Fresno. Public Works director Patrick Wiemiller said 31 wells in southeast Fresno have been affected. The city has not filed a lawsuit, but legal action has not been ruled out.

Several Kern County cities await their turn in court. They include Bakersfield, Delano, Lamont, Shafter and Wasco. Most of the cases were filed in the past decade. They have been consolidated in San Bernardino Superior Court.

State records show Kern water systems have more than 100 detections of TCP, by far the greatest number in the state.

But the rest of the Valley’s counties also have detections.

Besides Fresno, Kern and Merced, the counties include Tulare, Madera, Kings, Stanislaus and San Joaquin.

SOURCE ARTICLE

RELATED

Shell, Dow lose court challenge to EU antitrust fine: 13 July 2011: Reuters

Extracts

(Reuters) – Royal Dutch Shell (RDSa.L) and Dow Chemical (DOW.N) lost a court appeal on Wednesday against a fine levied by EU regulators five years ago for taking part in a cartel

…the Court upheld the 160.88 million euro fine on the Royal Dutch Shell group.

Bloomberg: Shell, Unipetrol, Bayer Are Sued Over Rubber Cartel (Update2): 20 May 2008

May 20 (Bloomberg) — Cooper Tire & Rubber Co., the second- largest U.S. tiremaker, and 25 other companies sued Unipetrol AS, units of Royal Dutch Shell Plc, Bayer AG, and as many as 20 others over an alleged rubber cartel in Europe.

Unipetrol and units of Shell, Dow Chemical Co., Eni SpA and Trade-Stomil Sp were fined a total of 519 million euros ($813 million) in a 2006 European Union antitrust case over material used to make tires and shoes. The companies are appealing.

Banana Workers Put Shell on Trial: April 1995

Extracts

Over 16,000 workers from banana plantations in Asia, Africa and Latin America are accusing Shell Oil, Dow Chemical and Occidental Corporation of having caused irreversible damage to their health by exposing them to a chemical substance known as both DBCP and Nemagon.

It was not easy to sue Shell. The powerful transnational lashed out like a cornered snake.

Pesticide company settles sterility suit for $300,000: Los Angeles Times 16 April 2007

In 1997, Dow, Shell Group and Occidental Chemical Corp. settled one such suit with 26,000 workers in Latin America and elsewhere for $41 million. Both men and women say they were injured by the chemical, but sterility has been proven only in males.

Shell Gannet Alpha platform in trouble again

By John Donovan

It seems that Shell’s Gannet Alpha platform has had another close call.

On Monday workers were evacuated and production shut down after natural gas began seeping out from under the platform.

All of the ingredients for a disastrous explosion, of the kind that occurred in the Gulf of Mexico, which almost brought about the demise of BP and the explosion on Shell Brent Bravo, resulting from Shell management (Malcolm Brinded) failing to take adequate action after a safety audit exposed a “Touch F*** All” safety culture and falsification of safety records.

Printed below is a comment from a Shell North Sea Platform Safety & Maintenance Expert on the recent oil spill near the Gannet Alpha Platform.

…another example of reactive maintenance regime, i.e. allowing, through neglect, equipment to fail and then reacting to the failure rather than, as the Safety Case for Gannet prescribes, preventing failure in the first instance by application of appropriate maintenance, inspection and monitoring.

(Expert in question may be available to the media for comment)

It seems that not much has changed. Production, profits and FAT CAT bonuses take priority over the safety of offshore workers.

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Hypocrisy of Shell CEO Peter Voser on BP Gulf of Mexico disaster

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Shell, Cosan’s Sugar Venture Will Expand Output 9% in New Season

FEBRUARY 06, 2012

By Isis Almeida

Feb. 6 (Bloomberg) — Raizen, a joint venture of Royal Dutch Shell Plc and Cosan Industria & Comercio SA in Brazil, will process 9 percent more sugar cane in the season starting in April than a year earlier, commercial director Ivan Melo said.

Raizen’s cane processing in the 2012-13 season will be 57.6 million metric tons, with sugar output up about 15 percent to 4.3 million tons and ethanol supply about 10 percent higher at 2.4 billion liters (634 million gallons), Melo said in an interview at the Kingsman conference in Dubai today. Sweetener content will also rise, he said.

“We have an accelerated replanting program and we have two mills, one in Mato Grosso do Sul and one in Goias, where production will be rising this year because they are new units,” he said. It takes five to six years for a new mill to reach capacity, he said. Melo is based in Sao Paulo.

The cane crop in Brazil’s center-south, the main growing region of the world’s biggest producer, will be 536 million tons in the period, Melo said in a speech at the conference yesterday. That compares with an output of 492.7 million tons so far this season, data from Brazilian industry group Unica show. Sugar output in the area will be 33 million to 34.5 million tons, he said.

Sugar cane output in the center-south fell for the first time in a decade in the 2011-12 season after frost, flowering and dry weather damaged the crop, Unica said. Flowering and frost reduced productivity by 4 percent last year, Melo said.

“Everybody is accelerating planting so if we have normal weather conditions, without frost and flowering, it is normal that production will rise,” he said.

Ethanol Switch

Producers in Brazil will direct 47 percent of the cane to sugar production this year, down from 48 percent in the 2011-12 season because of lower prices, he said. Both sugar and ethanol are made from raw material cane in the South American country.

Sugar reached a 30-year high of 36.08 cents a pound in February 2011, and ended the year down 27 percent on speculation supplies will outpace demand. The global surplus will be 6.5 million to 8 million tons in 2011-12, Melo said.

“Lower sugar prices will give an incentive for the Brazilian producer to want to explore the domestic and export ethanol market,” he said. “Below 22 cents a pound the producer will start looking for other alternatives other than sugar.”

Raw sugar for March delivery was up 1.2 percent at 24.22 cents a pound at 10:30 a.m. London time on the ICE Futures U.S. exchange in New York.

Brazilian ports should not experience bottlenecks this year because the sugar market is moving into a so-called contango and therefore there won’t be a rush to obtain the product, he said. A contango structure is when sugar for delivery in later dates becomes more expensive than the sweetener for immediate delivery, signaling ample supplies.

–Editors: Claudia Carpenter, Sharon Lindores

To contact the reporter on this story: Isis Almeida in Dubai at ialmeida3@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

SOURCE ARTICLE

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Anti-Slavery – 030210 Shell makes deal with Cosan in Brazil …

OGONI HUMAN RIGHTS WATCH BUREAU INAUGURATED

Human Rights Watch Bureau Director – Chief Superintendent of Police, Chief Yaesu Neebee.

As part of a broader civil society mechanism to protect and defend every Ogoni person – child, man and woman against doctrines, policies and practices that infringe human rights and fundamental freedoms in Nigeria, MOSOP President/Spokesman, Dr. Goodluck Diigbo today February 3, 2012 inaugurated the Ogoni Human Rights Watch Bureau in Bori, Ogoni.

Headed by a retired Chief Superintendent of the Nigeria Police Force, Chief Yaesu Neebee as Bureau Director, and assisted by a retired Assistant Superintendent of Nigeria Police, ASP Lucky Nuataa, the body collaborating with two law firms in Nigeria, is to independently document human rights situation at the village or city level in a fair, impartial and competent manner.

Already, 17 city representatives have been recruited by MOSOP secretariat to coordinate activities at village level as grassroots monitors, while each village or city has 14 days to set up a grassroots center.

Former Chair Person of the 2010 Ogoni Referendum Committee, Ms. Christiana Nwiko is to serve as secretary of the Human Rights Bureau.

An oversight body – Ogoni Human Rights Board headed by Pastor Nelson Diginee, an experience activist minister is to work with representatives of Council of Ogoni Churches, Federation of Ogoni Women Association, National Youth Council of Ogoni, Council of Ogoni Traditional Rulers Association and the Ogoni Farmers Council as members. Other board members include representatives of the Ogoni Teachers Union and the Ogoni Technical
Association.

A number of Ogoni lawyers with offices in Ogoni and one law firm in Port Harcourt are to jointly provide pro-bono services. The Board is open to cooperation with other human rights institutions and groups in the effort to initiate follow-up measures on actionable reports presented by the Bureau.

The Bureau will cover all human rights issues and cooperate with MOSOP Peace and Security Council to end illegal and random land survey by Nigerian armed security forces.

In his message, Diigbo charged the body to act without fear or favor, and appealed to institutions and organizations, domestic and international that are genuinely interested in supporting human rights work in Ogoni to liaise with the Ogoni Human Rights Watch Bureau since it is a grassroots oriented body.

The Bureau Director, Retired CSP Neebee is a dedicated Community leader, and currently, a member of Gbam Bo-Ue Community Chiefs and Elders Peace Council in the Babbe Kingdom of Ogoni.

While in the Nigeria Police Force, he had served in many capacities, including as a trainer for International Committee of the Red Cross (ICRC) on Human Rights in professional Policing Concepts, a lecturer and directing staff at the Police Training School, Nonwa in Rivers State.

He attended train-the-trainer course at the Central Planning and Training Unit Staff College, Jos. He was appointed to serve as the police officer in charge of Human Rights in Eleme Division in Rivers State, where he introduced enforcement of human rights as part of policing duties.

In his new role, CSP Neebee also has responsibility to plan and implement train-the-trainers programme for grassroots human rights assistants and build a respectful relationship between the Ogoni people and the security forces in matters concerning human rights.

The Human Rights Watch Bureau is a significant aspect of continual effort to structure and build institutions for Ogoni Central Indigenous Authority (OCIA).

Hon. Dum Ade John Budam

MOSOP Secretary General


Is Shell CEO Voser jinxed by the famous Brinded spell?

POSTING ON SHELL BLOG 2 FEBRUARY 2012 BY ” AN OBSERVER OF SHELL”

Is Voser now also being jinxed by the famous Brinded spell?

This decent and down to earth Swiss financeman is trying to tell the world that Shell will increase production from North Sea fields by extending the life of these fields (Sky Sunrise interview).

I am taking bets with some friends this will not happen. All observable actions by Shell is that they are retrenching from the North Sea. Voser emphasised that there will be a lot of job creation in the UK….. Now, where have we heard this before????

And he says (Bloomberg story):
‘Shell will increase production to about 4 million barrels of oil equivalent a day in 2017-2018. Last March, it said daily output would rise to 3.5 million barrels this year and 3.7 million barrels by 2014′.

Promises, promises, promises. This translates into bonuses and a bit later in ‘new insights’ or other factors that could not be foreseen. I give it to him he is not as audacious as Brinded who predicted 7-8 years ago that Shell would be doing close to 6 mln bbl/d around now.

I am not calling the man a liar. I would not dare to with his army of lawyers in Shell. But how should we call someone who ‘not speaketh the truth’?

Shall we keep it as ‘tarred with the same brush as Brinded?”

BLOG POSTING ENDS

Note added by John Donovan

Malcolm Brinded is the former Managing Director of Shell UK’s offshore oil and gas operations and is closely associated with the Shell “TFA” safety culture, which resulted in an explosion and deaths on the Brent Bravo platform. He is currently Executive Director Exploration and Production for Royal Dutch Shell plc.

Rivers without water

“No Shell person or NNPC has come here in respect of the report. But as I talk to you, they are drilling. The same Nigerian Army and police that are supposed to protect the Nigerian people will carry them to go and put more benzene (into the environment). If we take laws into our hands, you hear (restiveness) and violence.” The accusations have been put before Shell in an email for weeks, but the company did not respond.

Click to continue reading “Rivers without water”

Call for Norwegian Government Pension Fund disinvestment in Shell

An eminent group of scientists and professionals have sent a collective communication to the Norwegian Government Pension Fund recommending disinvestment in the oil giant Royal Dutch Shell on ethical grounds.

By John Donovan

An eminent group of scientists and professionals have sent a collective communication to the Norwegian Government Pension Fund recommending disinvestment in the oil giant Royal Dutch Shell on ethical grounds.

The pension fund has already dis-invested in several mining and forestry companies “known to cause severe environmental and human rights related harm in their operations.”

If the campaign is successful, which focuses on Shell’s horrendous track record in Nigeria, Royal Dutch Shell would be the first oil and gas company the fund would exclude from its portfolio.

The joint recommendation, sent last Friday, is printed below.

January 27, 2012                                          via email: postmottak@etikkradet.no

Professor dr. juris Ola Mestad, Chairman
Council on Ethics
Norway Government Pension Fund
Etikkrådet for Statens pensjonsfond utland
Postboks 8008 Dep
0030 Oslo, Norway

RE: Recommendation that the Norway Pension Fund exclude holdings in Royal Dutch Shell due to the severe environmental and social harm caused by Shell’s long-term negligence in the Niger Delta, Nigeria

Dear Chairman Mestad,

We, the undersigned conservation scientists and professionals from around the world, write to you today asking you to take action on a matter of significant importance regarding corporate social responsibility and ethical investment.

We are aware of the laudable ethical standards your Council on Ethics has established with which to screen all investments made by the Norway Pension Fund, in particular its environmental standards.  We commend you for the previous divestments the Fund has made in mining and forestry companies known to cause severe environmental and human rights related harm in their operations.

We note that Section 2 of your Guidelines for the observation and exclusion of companies from the Government Pension Fund Global’s investment universe states, (inter alia):

3) The Ministry of Finance may, on the advice of the Council of Ethics, exclude companies from the investment universe of the Fund if there is an unacceptable risk that the company contributes to or is responsible for: a) serious or systematic human rights violations, such as murder, torture,
deprivation of liberty, forced labour, the worst forms of child labour and other
child exploitation;
b) serious violations of the rights of individuals in situations of war or conflict;
c) severe environmental damage; d) gross corruption; e) other particularly serious violations of fundamental ethical norms.

(4) In assessing whether a company shall be excluded in accordance with paragraph 3, the Ministry may among other things consider the probability of future norm violations; the severity and extent of the violations; the connection between the norm violations and the company in which the Fund is invested; whether the company is doing what can reasonably be expected to reduce the risk of future norm violations within a reasonable time frame; the company’s guidelines for, and work on, safeguarding good corporate governance, the environment and social conditions; and whether the company is making a positive contribution for those affected, presently or in the past, by the company’s behaviour.

Chairman Mestad, Jan. 27, 2012

Page 2.

In this regard, some members of our group and associates have worked for years on the impacts of oil production in the Niger Delta, and we conclude that Shell has for decades caused severe environmental and social harm in the region.  Evidence of this includes, but is not limited to, a history of repeated oil spills at Bomu Manifold, Korokoro flow station and Ejama-Ebubu in the minority Ogoni region of the Niger Delta (See Ogoniland Environmental Assessment, UNEP 2011).  Further, Shell is well aware of the damage it continues to cause, and has not taken necessary action to remedy the continuing problems. We feel Shell’s long-term negligent behavior in the Niger Delta satisfies the Fund’s standards for exclusion as set forth in Paragraphs 3 and 4 of your Ethical Guidelines referenced above.

Although Shell is clearly required by Nigerian law (as well as its own corporate policies) to conduct its oil and gas production, transportation, refining, and export operations with best available international standards, it has knowingly and consistently violated this requirement in Nigeria for decades.    Shell is required to meet these high standards in oil infrastructure integrity, spill prevention, prevention of third party damage, monitoring and maintenance of facilities, spill response, spill restoration, and financial compensation.   However, Shell repeatedly ignores such requirements for regular inspection and maintenance of oil facilities, upgrading pipelines and production facilities to best available standards, and prompt and effective response to oil spills (See Double Standards: International Standards to Prevent and Control Pipeline Oil Spills, Compared with Shell Practices in Nigeria, Steiner, 2008/2010).

To begin to address these issues, some of the signatories to this letter organized and conducted the first preliminary environmental damage assessment of oil impacts across the Niger Delta in 2006, in collaboration with many Nigeria scientists and communities, and found the Delta to be one of the most severely oil-impacted ecosystems in the world (Niger Delta Natural Resource Damage Assessment and Restoration Project – Phase I Scoping Report, Nigeria Conservation Foundation and IUCN/CEESP, 2006).   The 2006 study estimated that the average volume of oil spilled in the Niger Delta each year equaled that spilled by the Exxon Valdez in Alaska in 1989 – officially reported to be about 220,000 barrels.  It is our conclusion that most of this environmental injury in the Niger Delta is due to the largest and oldest petroleum producer in the there– Royal Dutch Shell.

In 2006 our group recommended to the United Nations Environment Programme (UNEP) that it conduct a comprehensive environmental damage assessment of oil impacts in the Delta.  Subsequently, UNEP did conduct an assessment of oil contamination in Ogoniland (part of Shell’s operating area in the Delta), and published its final Ogoniland Environmental Assessment last year (UNEP, 2011).  The UNEP report agreed with our 2006 assessment, confirming that the region has been continuously and severely damaged by oil.   Again, this is Shell’s operating area.

Chairman Mestad, Jan. 27, 2012

Page 3.

It is evident to our group, and many others working and living in the Niger Delta, that Shell has consistently violated its legal and ethical obligations in Nigeria, it is well aware of this continuing problem, it knows how to correct the problems, and yet continues to operate negligently and with impunity.

And it is clear that Shell’s behavior in the Delta does not constitute isolated and infrequent accidents.  Rather, the company’s willful negligence has continued over several decades.  Mr. Chairman, we feel it is time the international community takes a strong stand against such ongoing corporate malfeasance.

Thus, we were delighted to see the Council’s Annual Report 2009 state the following:

The Council is also going to investigate more closely the Fund’s investments in coal mines in light of the many accidents in this industry, and is as well as looking into oil pollution in the Niger Delta in light of the many oil spills in the region over a prolonged period and the impact this may have on the environment and human health (emphasis added).

Clearly, it would be unethical for the Norway Fund to continue “profiting” from its investments in Shell, while Shell is “profiting” from its continuing negligence regarding the environment and people of the Niger Delta.

We applaud your investigation of environmental and social injury caused by oil operations in the Niger Delta. By way of this letter, we respectfully encourage the Council on Ethics to recommend full divestment and exclusion of all holdings of the Norway Government Pension Fund in Royal Dutch Shell, Plc. and its subsidiaries, due to the consistent and severe environmental and social harm caused by Shell’s negligent oil and gas operations in the Niger Delta, Nigeria.

We recognize that this would be the Fund’s first exclusion of holdings in the petroleum sector, and as such, feel this would send a powerful message to the petroleum sector globally.  We also feel divestment by the Norway Fund will provide strong motivation for Shell to improve its environmental and social performance in Nigeria and globally.  Such action would similarly motivate other companies operating in the Delta in which the Fund is invested.

Please do not hesitate to contact any of us if you need other information.  We would also invite the Council on Ethics to conduct a fact-finding mission to the Delta if you so desire.

We look forward to your decision on this important issue.

Chairman Mestad, Jan. 27, 2012

Page 4.

Respectfully (in alphabetical order),

Gordon Abiama, Director, Africa Centre for Geoclassical Economics, Yenagoa, Bayelsa State, Niger Delta, NIGERIA

Pastor Innocent Adjenughure, Executive Director, Institute for Dispute Resolution, Niger Delta Study Group on Extractive Sector (NIDESGES), Delta State, NIGERIA

Ben Amunwa, Researcher, Platform, London, UK

Nnimmo Bassey, Environmental Rights Action (ERA), NIGERIA

Dr. Grazia Borrini-Feyerabend, President, Paul K. Feyerabend Foundation, SWITZERLAND

Dr. Bram Büscher, Associate Professor of Environment and Sustainable       Development, International Institute of Social Studies, Erasmus University NETHERLANDS

Dr. Crystal Fortwangler, Anthropologist, USA

Ken Henshaw, Programmes Manager, Social Action, NIGERIA

I. Herbert, Sustainable Environment and Economic Resources (SEERs), USA

Janet Howitt, Environmental Safety Group, Gibraltar, UK

Kira L. Johnson MSc, Conservation Biologist, USA

Sandra Kloff, Consultant, Marine and Coastal Management, NETHERLANDS

Ronald Leger, CANADA

Janaki Lenin, Writer, INDIA

Father Père Félicien Mavoungou, Commission épiscopale Justice et Paix Brazzaville, REPUBLIC OF CONGO

Akpobari Celestine Nkabari, Ogoni Solidarity Forum-NIGERIA and Social Action, NIGERIA

Chairman Mestad, Jan. 27, 2012

Page 5.

(Signatures continued)

Abiri Oluwatosin Niyi, Sustainable Nigeria, NIGERIA

Faith Nwadishi, Publish What You Pay/Koyenum Immalah Foundation, NIGERIA

Legborsi Saro Pyagbara, International Advocacy Officer, The Movement for the Survival of the Ogoni People (MOSOP) NIGERIA

Alfredo Quarto, Executive Director, Mangrove Action Project, USA

Dr. Kristin Reed, author of Crude Existence, USA

Geert Ritsema, International Affairs Coordinator, Friends of the Earth, NETHERLANDS

Paul Siegel, Conservationist, Dakar, SENEGAL

Richard Steiner, Professor, University of Alaska (ret.) Oasis Earth, Anchorage Alaska, USA

Dr. Makere Stewart-Harawira, Associate Professor University of Alberta, Edmonton, CANADA

Rev. David Ugolor, African Network for Environmental and Economic Justice (ANEEJ), NIGERIA

Dr. Geert van Vliet, Economist, CIRAD, FRANCE

Weirt Wiertsema, Senior Policy Advisor, Both Ends, NETHERLANDS

Nicholas Winer, Just Conservation, SPAIN

Weaning Royal Dutch Shell off Iranian Oil

By John Donovan

Royal Dutch Shell CEO Peter Voser is reluctantly considering how best to wean Shell off the supply of blood tainted Iranian oil. Shell is one of the biggest consumers of Iranian oil – see article below.

The relationship between Shell and Iran has continued unabated for many years, while the fanatical Iranian regime has been busy using the funds generated to supply roadside bombs to kill and maim Nato soldiers in Iraq and Afghanistan and fund its Nuclear Bomb program. The oil revenue is crucial to Iran. Hence the sanctions and sanctions busting by Shell.

Trying to avoid the odium of its association with the mad mullahs, Shell resorted to subterfuge to disguise its shipments of Iranian crude.

There is speculation that Peter Voser has asked Khalid al Falih, head of Saudi Arabia state oil company Saudi Aramco, to supply oil to replace lost Iranian barrels. Mr Voser is quoted as saying: “We have a great partnership with Saudi Aramco worldwide.”

What he does not mention is that the Saudi regime is another brutal dictatorship, which just a few years ago blackmailed the UK into abandoning a criminal investigation into corruption surrounding the Saudi Royal family. Shell was a key player in the AL-Yamamah oil for arms scandal.

Royal Dutch sees EU Iran sanctions pushing up oil prices

Monday, 30 Jan 2012

Royal Dutch Shell will implement the terms of a European Union embargo on Iranian crude but will need some time to study details of the sanctions which are likely to push oil prices higher.

Mr Peter Voser CEO of Royal Dutch said that “We are a European company and therefore we are affected by the sanctions and we will obviously oblige and implement the sanctions. I need to study all the details in order to see how it goes forward in the next few months.”

Mr Voser said that “From a pure commercial prospective, the losers are consumers because at the end of the day it gives us more volatility and upwards pressure on the oil price.”

Industry sources said that Shell is one of the biggest consumers of Iranian crude oil taking around 100,000 barrels per day into Europe and about the same quantity into Asia under a deal with Japanese company Showa Shell that expires in March.

Mr Voser said that he had ‘spent quite a bit of time with Mr Khalid al Falih head of state oil company Saudi Aramco at the meeting of political and business leaders in Switzerland but declined to say if he had asked Saudi Arabia to supply more oil to replace lost Iranian barrels. We have a great partnership with Saudi Aramco worldwide.

(Sourced from Reuters)

SOURCE ARTICLE

Story linking Shell with Jewish skin lamp shades is gutter press

POSTING ON SHELL BLOG BY “LONDONLAD” SAT 28 JAN 2012

I am afraid that there clearly is very little news (i.e. aspects of Shell’s work) for the Donovan’s to rant on about recently. A great deal is re-printed as though it’s new but is merely old stories and anti-Shell propoganda that is old history. Yes, we learn from history but we don’t have to regurgitate it repeatedly. The lead story today linking Shell with Jewish skin lamp shades is really gutter press and totally deplorable nonsense from the Donovan’s.

(John Donovan reply is posted on Shell Blog)