Wikipedia is a free online encyclopedia that anyone can edit.
Wikipedia articles cover multitudinous subjects including the
history and accomplishments
of prominent individuals and
major businesses, including
Royal Dutch Shell.
The information provided is
supposedly accurate.
Unfortunately, the integrity of
Wikipedia is corrupted by a
policy allowing the anony-
mous editing of articles.
This fundamental flaw allows
articles to be potentially sani-
tized of any facts embarrass-
ing to a featured person or
business.
Decisions are sometimes taken
within the Wikipedia community to remove entire articles
from the public gaze in the shadiest circumstances.
Participants in such decisions are allowed to hide their identity
and their background circumstances.
The flaws in editing credibility are especially important in re-
gards to big business as positive or negative information in a
Wikipedia article about a com-
pany can potentially have an
impact on its reputation and
value. The flaws have been ex-
ploited. Negative information
has been removed from
Wikipedia articles.
For example, Wikipedia arti-
cles about Shell Dutch Shell
have been covertly edited by
Shell employees from Shell of-
fices. This was only discovered
as a result of electronic scan-
ning technology.
Entire articles about Royal
Dutch Shell controversies, in-
cluding employee safety is-
sues and environmental con-
cerns have been deleted by anonymous editors.
This was despite the fact that the information met all Wikipe-
dia requirements, with independent evidence from reputable
third party sources cited to verify all stated facts.
iiJohn Donovan, the author of this book, was the initiating
author of Wikipedia articles that were subsequently cleansed
of information embarrassing to Shell. He was also the author
of the deleted Wikipedia articles relating to Shell.
He declared to Wikipedia at the outset of becoming a volun-
tary editor his background and expertise in relation to Shell.
As a result of an application to Shell under the UK Data Protec-
tion Act 1998, Donovan discovered from Shell internal commu-
nications a deep concern by Shell over his Wikipedia editor
contributions about Shell.
The tone of one particular internal Shell email was hostile and
aggressive to a degree that Reuters published an article about
it. Shell put a large team of people on a war footing and John
Donovan, his website, and Shell’s own employees, became the
target of a global spying operation by Shell Corporate Affairs
Security.
John Donovan was chairman of a sales promotion agency, Don
Marketing, that devised spectacularly successful forecourt pro-
motions for Shell on an international basis. Many involved
budgets of several million dollars. A mutually beneficial rela-
tionship lasted for over a decade.
This was followed by two decades of acrimony involving six
High Court actions, a County Court case and proceedings via
the World Intellectual Property Organisation (WIPO).
At one stage Shell displayed posters at the Shell Centre in Lon-
don defaming John Donovan and his father.
In response, the Donovan’s
sued Shell for libel. One of
two libel actions they brought
against Shell. Both were set-
tled out of court, as were all
of the other court actions.
Shell also lost the case de-
cided by the WIPO.
For more than a decade, John
Donovan has operated non-
profit websites focussed on
Shell including
royaldutchshellplc.com and
royaldutchshellgroup.com,
both of which Shell unsuccess-
fully attempted to seize.
Several hundred main stream
media articles by the FT, the
Wall Street Journal, Reuters,
Bloomberg, Forbes, Dow
Jones Newswires etc., and
over 50 books, contain refer-
ences to either John Donovan, his father, and/or the Shell fo-
cussed websites they co-founded.
iiiShell has a dark history it would prefer to forget and would
like to keep hidden. See my ebooks published on Amazon:
ivIn January 2016, Shell received the dubious distinction of being
named as the most hated brand in the world.
VW challenges Shell as world’s ‘most hated’ brand after emis-
sions scandal
The world’s most hated company: can NGOs help turn Shell’s
reputation around?
vCHAPTER 1
Censoring Wikipedia
Wikipedia has been systematically cleansed of negative, but accurate, properly sourced, verifiable
information about Royal Dutch Shell. Entire articles about Shell were totally deleted. Fortunately I
kept copies, the content of which are republished in this book. The above graphic is based on an
article by The Independent: ”Mystery of the Wikifixer: who is the secret image-cleansing agent?)
6I am a fan of Wikipedia and use it frequently. Its co-founders each
deserve plaudits and respect for its creation and for making it free
to use.
Regretfully however, Wikipedia is flawed to a degree that damages
the integrity of many Wikipedia articles that have a commercial
connection. For example, Wikipedia articles about companies.
Such articles, covering the ethi-
cal conduct of a company, can
potentially affect its value.
The basic flaw to which I am
drawing attention is the policy
of permitting anonymous edit-
ing of Wikipedia articles. It al-
lows skullduggery to take place.
Wikipedia entries are suppos-
edly written by open and trans-
parent consensus among article
editors. In reality, Wikipedia is
built on a platform of secrecy
and concealment.
It leaves articles about busi-
nesses wide-open to censorship, manipulation and sabotage by par-
ties with undeclared commercially driven motives.
Unpaid volunteers acting as administrators and editors are suppos-
edly the bedrock on which Wikipedia is built. It is a mainly secre-
tive community in which the vast majority of volunteers edit arti-
cles using aliases. They are free to edit any articles, without anyone
having a clue about who they are or about their background. Con-
sequently, it is impossible to determine if they have a potential con-
flict of interest.
Editor’s using aliases are also able to comment on the editing work
of other contributors and vote on the deletion of Wikipedia articles.
Hence, there is a lot of power and influence and no realistic ac-
countability.
If, due to some alleged transgres-
sion, a Wikipedia editor is
banned from editing, they can
return under a new alias using a
new IP address, with no bad
odor attached. In other words,
an entirely fresh start.
“Wikipedian” culture has some
similarity to the Ku Klux Klan,
fortunately without the racist
element.
The privacy of those choosing to
keep secret all information about
their identity is respected and
maintained within the Wikipedia community. A community that
has developed its own cultish language, arising partly in response
to skullduggery by some editors.
There are Wikipedia articles about every major business. A com-
pany is not permitted to edit any articles about itself. For example,
BP is not supposed to edit Wikipedia articles about BP.
7Because of the popularity of Wikipedia, the content of a Wikipedia
article about a business is important. It can have a positive or nega-
tive impact on the reputation of the business and this, in turn, as
already highlighted, can impact on its value.
The behind-the-scenes editing of
Wikipedia articles has been described
as the world’s biggest spinning opera-
tion. See center article.
With regard to Shell, in particular,
Wikipedia has been systematically
cleansed of negative, but accurate,
properly sourced, verifiable informa-
tion about the company.
Some entire articles about Shell have
been totally deleted by a handful of
mainly anonymous censors reaching
a consensus.
My suspicions about what was going
on were aroused for a number of rea-
sons:
1. I discovered to my surprise an ob-
session by Royal Dutch Shell man-
agement over my past voluntary
work editing Wikipedia articles. In
particular, articles relating to Shell. Information Shell supplied to
me in response to a Subject Access Request, included Shell inter-
nal documents and Shell internal emails from March 2007, some
marked confidential. Participants in the correspondence were dis-
cussing my Wikipedia editing and its possible impact on share-
holders . The subject was mentioned 105 times within Shell inter-
nal correspondence. To verify, click on this link and run a search
for “Wikipedia”. You will see 105
matches and the internal discussion
about the risk of Shell being caught if
it tried to edit relevant Wikipedia arti-
cles. One participant in the correspon-
dence pointed out: “Companies, their
agents, or anyone else for that matter, are
not supposed to edit Wikipedia entries
they have a vested interest in. Doing so
undermines the editorial integrity of the
product.”
2.“WikiScanner” technology detected
that articles were actually edited from
Shell premises. When Shell has dirty
work in mind, it is normally passed
on to a third party, thereby distancing
Shell from illicit actions taken by the
third party. Shell HAS in the past
hired a third party agency specializ-
ing in reputation clean up on the Inter-
net. There are many such agencies of-
fering their services.
83. Information freely available on the Internet provides a blueprint
of how to infiltrate Wikipedia and manipulate articles. It exploits
the Wikipedia policy permitting con-
cealment of identity and background.
It advises on a stratagem of decep-
tion to disguise intent. For example,
editing a wide-range of articles to
avoid being identified as a one-topic
contributor. It discusses implications
relating to IP addresses. The objective
being for an organized group of infil-
trators to edit target articles without
detection: I will not go into detail for
obvious reasons.
5. When I became a volunteer editor on
Wikipedia, I declared from the outset
my name, website, and connection
with Shell. Very soon after making
the first edits, it became apparent that
a then senior editor using the pseudo-
nym “BosMo” was closely monitor-
ing my contributions. I gained the im-
pression that he or she was an ad-
mirer of Shell. “BosMo” quickly nomi-
nated for deletion a Shell related arti-
cle that I originated. It survived the
nomination. I then received a tip
from a Shell insider identifying An-
drew Cates, a former CEO and Country Chairman of Shell, as be-
ing “BosMo.” Mr. Cates confirmed to me that this was true.
Please see “Royal Dutch Shell Wikipedia Machinations” for more
information about my contact with Mr. Cates, a man I admire de-
spite his high regard for Shell.
See also see my article published 7 Sept
2015 on an American news-based web-
site: “I WARNED WIKIPEDIA YEARS
AGO THAT ALIAS EDITING WOULD
RESULT IN SCANDAL”
On my own website, I feature all pub-
lished articles about Shell, whether posi-
tive or negative in relation to the oil gi-
ant.
I took the same approach when acting
as a Wikipedia volunteer editor.
Ironically, a Wikipedia article I insti-
gated and authored, containing nothing
but positive information about Shell,
covering, for example, charitable works
and donations by the company and/or
its employees, was removed in its en-
tirety on the grounds of being biased in
favor of Shell. It was deleted despite the
fact that all of the information within
the article was supported by linked veri-
fiable independent sources.
9As a result of the strenuous efforts
by dedicated people apparently on a
mission, many acting under the
cover of an alias, information about
Royal Dutch Shell on Wikipedia has
been transformed. Negative accurate
information supported by newspa-
per articles, government agency pub-
lications, court documents, etc. has
vanished.
Instead, we have a collection of
mainly sanitized information about
Royal Dutch Shell. Much of it could
have been written by, or on behalf of, Shell PR people. Perhaps it
was.
It is not just business arti-
cles that are laundered.
The same thing has hap-
pened to Wikipedia arti-
cles about politicians. See
“Capital Hill Buzz: Polish-
ing senators’ images on
Wikipedia.”
Much of the content of this
chapter is taken from my
article: “Ku Klux Klan cul-
In response to the article, I was con-
tacted by an industrious entrepre-
neur, Gregory Kohs the owner of an
agency MyWikiBiz, who has freely
admitted to manipulating informa-
tion on Wikipedia on behalf of pay-
ing clients.
Instantly accessible articles provid-
ing verifiable detailed information
stretching back over the entire his-
tory of a company could be invalu-
able to shareholders and the news
media.
It would then be immedi-
ately evident if if a com-
pany had been issuing un-
fulfilled pledges, for exam-
ple to end gas flaring in
Nigeria, or give the high-
est priority to employee
safety, when factual de-
tailed current and histori-
cal information indicated
otherwise.
ture at Wikipedia: secrecy
and censorship.”
10In September 2015, a number of articles
were published about the alias-editing
flaw that I first drew to the attention of
Wikipedia five years ago.
The articles are self-explanatory:
Forbes: 5 Oct 2012: Wikipedia’s “Pay-for-
Play” Scandal Highlights Wikipedia’s Vul-
nerabilities
Daily Beast 4 Sept 2015: I Was Shaken
Down by Wikipedias Blackmail Bandits
Guardian Newspaper 6 Sept 2015:
Wikipedia founder backs site’s systems
after extortion scam
Science Times 7 Sept 2015: Wikipedia
Blocks 381 “Black Hat” Accounts
Wikipedia’s dark side: Censorship, re-
venge editing & bribes a significant
issue:13 Oct 2012
The Telegraph: 2 Sept 2015: Wikipedia hit
by blackmail scandal as victims are
charged for content
The Independent: 2 Sept 2015: Wikipedia
rocked by ‘rogue editors’ blackmail scam
targeting small businesses and celebrities
Guardian Newspaper 2 Sept 2015:
Wikipedia blocks editor accounts linked
to extortion scam
FT.com 4 Sept 2015: Wikipedia’s struggle
to save its soul
THINKPROGRESS 4 Sept 2015: Wikipe-
dia Editors Uncover Extortion Scam And
Extensive Cybercrime Syndicate
According to an article published by the
Guardian newspaper in March 2016, the
Putin regime has “set up warehouses in
which an army of bloggers sat day and
night, charged with flooding the internet
with comments favourable to Russian in-
terests.” They include “Wikipedia trolls”
working to edit blogs and web pages to
Russia’s advantage,” exploiting the
anonymous editing flaw.
An article published in 2005 – “Wikipedia
Founder Edits Own Bio” – revealed,
among other things, that Jimmy Wales,
the joint founder of Wikipedia, changed
his own Wikipedia bio 18 times “deleting
phrases describing former Wikipedia em-
ployee Larry Sanger as a co-founder of
the site.” Wales claimed that although
“Wikipedia generally frowns on people
editing entries about themselves, there is
no hard and fast rule against it.”
11CHAPTER 2
Controversies surrounding Royal Dutch Shell
One of the Wikipedia articles removed in its entirety focussed on a range of controversies arising from
the activities of Royal Dutch Shell stretching back over the decades, including its 50 plus years record
of exploitation and pollution in Nigeria.
12Controversies surrounding Royal Dutch Shell
There have been concerns over Royal
Dutch Shell over environmental and
health and safety related issues as well
as in respect of its businesses practices
and priorities. In recent times Shells
management has acknowledged some
of these problems and has promised to
take steps to repair damage done both
to the affected parties and to its own
reputation, which has involved tighten-
ing internal controls between its differ-
ent subsidiaries, an ostensible commit-
ment to corporate social responsibility,
an extensive global advertising cam-
paign and other initiatives in the late
1990s (see Ken Saro-Wiwa) and early
2000s.
Sanctions busting in Rhodesia
In 1965 the British Crown Colony of
Rhodesia unilaterally declared inde-
pendence from Britain which led to the
imposition of sanctions by the United
Nations. These sanctions included strict
controls on oil and petroleum product
sales to the rebel colony. In 1978 the
“Bingham report” into sanctions busting
revealed that Shells local offices in
southern Africa, along with those of BP,
had been breaking the UN’s oil em-
bargo from the moment it was imposed. This conflicted with a letter
to the British government which had been written by Shell’s Chair-
man Sir Frank McFadzean in June 1976 which said that “… no
company in which we [Shell] have an interest is supplying to Rho-
desia”. The Bingham report revealed
that shipments to Rhodesia had arrived
at the old petroleum port of Lourenco
Marques (now Maputo), and from there
the oil had been shepherded by Shell
Mozambique, a British-incorporated
firm, into the hands of South African bro-
kers, who sent it north by rail through
Mozambique to Rhodesia. Senior ex-
ecutives of Shell were criticised in the
report for failing to monitor what local
employees were doing [“A Century in
Oil”, p 327].
Corruption in Italy
In the early 1970s, Shell decided to dis-
pose of the heavily loss making busi-
ness of Shell Italiana – its downstream
operation in Italy. Assets were sold to
the Italian state company Eni in 1973.
Subsequent to the sale, Shells account-
ants and outside auditors discovered
that in the five years prior to the sale to
Eni Italian politicians had received politi-
cal contributions totalling around £2.5
million from Shell Italianas local man-
agement. These had been recorded in
the companys books as advertising and
publicity expenses. Shells General Man-
ager in Italy, who had operated without
authority and who had misrecorded the payments, was dismissed
[“A Century in Oil”, page 324].
13Shell to Sea
Main article: Shell to Sea
In Ireland, Shell has been criticised, along with Statoil and Mara-
thon Oil, for its plans to pipe unrefined gas from the Corrib Gas
Field onshore through a pipeline that would pass close to people’s
houses (often within the pipe’s blast radius), en route to a refinery
9 km inland, in north-
west County Mayo [1].
The plans were origi-
nally made by Enter-
prise Oil and inherited
by Shell when they ac-
quired this company
in 2002. In the sum-
mer of 2005 five local
men were sent to
prison for three
months on the basis
of an injunction ob-
tained by the com-
pany – these men be-
came known as the
Rossport Five. There
is currently a cam-
paign by local resi-
dents, Shell To Sea, whose main aims have been to get Shell to
change their plans for the pipeline and refinery. In April 2007, in a
victory for the Shell to Sea campaign, the Irish High Court ruled
that Shell cannot use their original intended pipeline route. Shell re-
cently announced its plan for bringing the gas from the sea to the
site of the refinery at Bellinaboy, which again involves getting the
Irish government to issue even more Compulsory Acquisition Or-
ders. There is also a solidarity camp where people from outside the
locality who support the campaign have come to live and help out.
Shell has claimed that the development is welcomed by most of
the local population, that all planning regulations are being fol-
lowed and that it has been responsive to local concerns [2]. Opin-
ion polls tell a different story about local views of the project.
$153.6 million damages for U.S. patent infringement
On 3 October 2005 a
U.S. Federal Appeals
Court upheld a patent
infringement verdict
against Shell Oil Com-
pany in a case
brought byUnion Car-
bide. The federal
court also told a lower
court to consider in-
creasing the $153.6
million damages al-
ready awarded in the
case. According to a
news report, the U.S.
Court of Appeals for
the Federal Circuit re-
jected an appeal by
Shell and its subsidi-
ary, Shell Chemical Co,. which sought to overturn a jury verdict that
it infringed a Union Carbide patent on chemical processes used to
make ethylene oxide. The appeals court reportedly said there was
“substantial evidence” to support the jury verdict.
14Jiffy Lube International
In December 2004, an Oklahoma state judge approved a class ac-
tion settlement between Royal Dutch Shell subsidiary Jiffy Lube In-
ternational and millions of U.S. plaintiffs. The agreement reported
in the New York Times, settled nine similar lawsuits from California
to New Jersey over environ-
mental surcharges Jiffy Lube
imposed on its oil change cus-
tomers. Under the terms of the
settlement, Jiffy Lube provided
more than seven million cus-
tomers with a coupon good for
$5 off an oil change. An earlier
report in the same newspaper
said that Jiffy Lube added sur-
charges to drivers oil-change
bills over the past five years on
the pretext of being an environ-
mental surcharge, in an at-
tempt to fool customers into
thinking it was a tax. Scott R.
Shepherd, aPennsylvania attor-
ney who sued the Jiffy Lube
was quoted as saying:“It was
just a straight rip-off for $1.25
every time someone came in.”
$2 million fine by UN for violation of embargo against Iraq
On 26 April 2000 The New York Times reported that the United Na-
tions had fined the Royal Dutch Shell Group $2 million for shippingI-
raqi oil on April 5 2000 in violation of the then international embar-
goagainst Iraq. The tanker, the Akademik Pustovoit, was boarded
by American-led naval forces in the Persian Gulf. Royal Dutch/
Shell had maintained that the tanker carried only Iranian oil, loaded
at the port in Bandar Mahshur. However, a spokesman for The Pen-
tagon, Kenneth H. Bacon, was quoted as confirming that tests on
the cargo had determined that 20 percent of the oil was from Iraq.
The article reported that with high prices increasing demand, there
had been a sharp increase in illicitoil shipments and Iraqi officials
were believed to be earning
millions from smuggling oil.
The Vietnam War
Between 1972 and 1975, the
last three years of the Vietnam
War,Shell Vietnam (the local
“operating company” of the
Shell Group) controlled half of
Vietnams oil supply. A book by
Louis Wesseling, the Presi-
dent of Shell Vietnam during
that period, revealed that Shell
failed properly to control the oil
shipments which flowed
through indirect channels to
the Vietcong. According to his
book Fuelling the war: reveal-
ing an oil companys role in
Vietnam, [1] Shell knowingly
employed as a manager a no-
torious former senior police official with a fearsome and well-
deserved reputation who had already shown his inclination to settle
security matters by military action with little compunction about kill-
ing, innocents along with suspects. Wesseling later served as CEO
of Shell companies in South America and the Middle East and col-
laborated on drafting the “Shell Group Business Principles”.
15Nigeria
See also: Petroleum in Nigeria
Shell operates a joint venture with the
government in Nigeria under the name
Shell Petroleum Development Company
(SPDC). In the early 1990s, Ken Saro-
Wiwa, president of the Movement for the
Survival of the Ogoni People (MOSOP),
led a non-violent campaign against envi-
ronmental damage associated with the
operations of multinational oil compa-
nies, including Shell and British Petro-
leum, in the Ogoni homelands of the Ni-
ger delta. In January 1993, MOSOP or-
ganised peaceful marches of around
300,000 Ogoni people more than half of
the Ogoni population through four
Ogoni centres, drawing international at-
tention to his people’s plight. That same
year, Shell ceased operations in the
Ogoni region. Shell’s involvement in Ni-
geria came to the fore again in October
1990 when a peaceful protest in
Umeuchem escalated. Eighty people
were killed by the police and 495 homes
were destroyed. Shell claims that it
merely asked for police protection. In
1995 Ken Saro-Wiwa and eight others
were executed. Ken Saro-Wiwa had im-
plicated Shell during his treason trial by
saying the ecological war that [Shell] has
waged will be called to question sooner than later and the crime of
the Company’s dirty wars against the Ogoni people will also be pun-
ished. Shell was also found to be providing money and supplies to
the Nigerian military.[2] When Saro-Wiwa was executed on
trumped-up charges, much of the world-
wide condemnation of the act was
aimed at Shell, which was implicated by
its association with the Nigerian govern-
ment’s activities.
In February 2002, a judge ruled that a
case brought against Royal Dutch Shell
by close relatives of Ken Saro-Wiwa
could proceed in the United States Dis-
trict Court for the Southern District of
New York under the Alien Tort Claims
Act, the Torture Victim Protection Act
and RICO Racketeer Influenced and
Corrupt Organizations Act(RICO).
Shell has continued to be condemned
by bodies such as Christian Aid, who re-
ported that despite Shell claims of “hon-
esty integrity and respect for people” it
had “failed to use its considerable inter-
est in Nigeria to bring about change in
the Niger delta”.[3] The report also
found evidence of failures to clean up oil
spills, pollution of rivers and water
courses, and non-completion of prom-
ised projects for community improve-
ment. In 2001 a study into the commu-
nity projects was leaked to The Econo-
mist. It reported that of 81 claimed pro-
jects visited by the reviewers of the
scheme, 20 did not exist, 36 were partially successful and only 25
were working.
16Darfur region of Sudan
The Board of Trustees of Amherst College located in Amherst, Mas-
sachusetts, passed a resolution on 14 January 2006 to divest all
investments in multinational companies identified as having direct
business ties to the Sudanese government or companies whose
business activities are in direct support of these companies and
the activities of the govern-
ment. The divestment ac-
tion was taken based on
the government’s atroci-
ties which were deemed to
be “wholly inconsistent
with the moral and ethical
values of Amherst Col-
lege“ and alleged evi-
dence of genocide against
the people of the Darfur
region allegedly committed
by the Sudanese govern-
ment. Royal Dutch Shell
Plc was identified as one
of the multinationals
banned for investment pur-
poses because of the na-
ture of its business opera-
tions in Sudan.
Exchange Control speculation in Japan
Showa Shell Sekiyu KK is a joint venture downstream oil company
in Japan in which Shell had a 50% share (now 40%) and which
markets under the Shell brand. In 1993 the company sustained
losses of 165 billion yen (approx US$1.4billion) from unauthorised
forward currency transactions. The company’s treasury depart-
ment, expecting the U.S. dollar to rise against the yen, bought for-
ward dollars on futures markets at around 145 yen. Unfortunately,
the dollar decreased to 120 yen in 1993 causing huge foreign ex-
change losses for the firm. The scandal prompted Shell to review
its internal controls, especially in joint ventures, and according to a
report in The International Herald Tribune published on 26 Febru-
ary 1993, resulted in the resignations of four top executives of
Showa Shell Sekiyu and
the firing of a fifth. John
Jennings, then a Shell
Group Managing Director,
was quoted in the article
as saying that the unau-
thorised currency specula-
tion was a gross contra-
vention of established
rules and practices which
was deliberately con-
cealed.
Brent Spar
See also: Brent Spar
Shell was also challenged
by Greenpeace for plans
for subsea disposal of the
Brent Spar, an old oil
transport and hub station
located in the North Sea, into the North Atlantic. Shell eventually
agreed to disassemble it onshore in Norway, although it has al-
ways maintained that its original plan to sink the platform was safer
and better for the environment.
17On disposal, it transpired that the Greenpeace estimates for toxic
content were inaccurate.[4]
Tainted Shell gasoline in North America
In May 2004 a Shell spokeswoman confirmed that over 500 Shell
and Texaco service stations in Louisiana and Florida had stopped
selling tainted gasoline which
caused fuel gauges to mal-
function. Shell set up a hot-
line for drivers concerned
they might have purchased
the tainted gasoline. There
were a number of news re-
ports about the tainted fuel
alleged inadequate response
by Shell and of the filing of
lawsuits. Shell issued a press
statement, extracts from
which were quoted in a press
release from the Louisiana
Attorney Generals Office in
June 2004.
In April 2007, a U.S. District
Judge sealed the records on
how he had divided $6.8 mil-
lion in legal fees among law-
yers representing plaintiffs in
the 2004 federal class action lawsuit which arose from the fuel
gauge damage. The case was brought on behalf of Louisiana, Mis-
sissippi,Alabama and Florida residents whose fuel gauges broke
after they purchased Shell Oil Co. gasoline containing too much
sulfur over several weeks starting in May 2004. The tainted gaso-
line had been produced at the Shell-Motiva oil refinery in Norco,
Louisiana. An article published by The Times-Picayune newspaper
stated: Soon after the problem emerged, Shell volunteered to fix
broken gauges in tens of thousands of vehicles at a cost of $200 to
$1,000 each, depending on the car model. By September 2004,
Shell had processed about 81,000 claims, meaning the firm by that
time could have spent tens of millions on the repairs.The article
said that attorneys for both
sides reached a settlement
that called for Shell to ex-
pand the repair program and
provide $3.7 million to cover
general damages.
In Canada, Shell Canada ex-
perienced similar problems
also stemming from sulfur
contamination of fuel which
created malfunction of fuel
gauges. An article published
by The Toronto Star in June
2004 alleged that “The reac-
tion by Shell in the United
States differs from how the
company handled customers
in the Toronto region last
spring and summer”.
Poor fuel supply problem
at Manchester Airport
On 4 April 2008, BBC News reported flight cancellations at Man-
chester Airport, a major airport located in the North of England, af-
ter jet fuel from the Shell Stanlow refinery in Ellesmere Port was
found to be of “poor standard”. The article stated: “There was a
problem with the quality of jet fuel at the oil refinery“.
18Retirement fund deficiencies in Malaysia
In September 2004, 399 ex-employees of Shell won a lawsuit at
the Miri High Court in Malaysia concerning the administration by
the defendant Shell Group companies of Shell employee retire-
ment funds. The Shell companies in question – Sarawak Shell Bhd
and Sabah Shell Petroleum
Co Ltd – were ordered to pay
nearly RM50 million to the
plaintiffs, 399 former employ-
ees known as Project Team A,
who filed their suit on 29 No-
vember 2002 alleging an un-
lawful deduction from their re-
tirement funds. According to a
report of the hearing, counsel
for the plaintiffs objected to an
application by Shell for a stay
on the grounds that a majority
of the plaintiffs are well over
the age of 60 and in weak and
declining health. A story in the
New Straits Times published
on 7 October 2004 reported in
relation to the former Shell em-
ployees, that Some have
died. Others are losing their
memory and many are ailing.
According to another news re-
port, the suit was said to be the first “in the legal history of Malay-
sia involving the largest number of ex-employees suing their for-
mer employers and involving such a big claim”. The defendants
filed an appeal against the decision.
The Malaysian Court of Appeal decided in October 2005 that it had
jurisdiction to hear the appeal and in a judgment dated 30 March
2007, overturned the judgment. According to one report, when an-
nouncing the decision in court, one of the three Appeal Court
judges stated as grounds for the decision: we dont believe a com-
pany like Shell would do anything like this to employees. In para-
graph 26 on page 24 of the
judgment it was stated in ref-
erence to Shell: to deduct em-
ployers EPF contributions
from the lump sum would not
only expose them to accusa-
tions of illegal action and
fraud on employees but
would result in no employee
getting any benefit from the
RBF and in the RBF becom-
ing a futile exercise, and it is
inconceivable that those com-
panies would embark on such
an absurd, pointless and peril-
ous undertaking.
On 20 November 2007, an ar-
ticle published by the Borneo
Post reported “The Federal
Court (FC) here has granted
leave or permission to 399 for-
mer employees of two major
petroleum corporations to appeal against their ex-employers in con-
nection with their pension funds. The FC yesterday agreed that
there was merit to their application for leave.”
19Oil and gas reserves recategorisation
The announcement on 9 January 2004 by the Royal Dutch Shell
Group of the downgrading of its hydro-
carbon reserves drew fire from share-
holders, financial analysts, the media
(e.g. news report 20 April 2004) and
the U.S. Securities and Exchange
Commission (SEC) after announcing
the recategorisation of its hydrocar-
bon reserves, admitting that a signifi-
cant share of reserves previously
booked as proven did not fulfill the re-
quirements for proof under the US
regulatory provisions. According to
the SEC Cease and Desist Order of
24 August 2004, Shell overstated
proved reserves reported in its 2002
Form 20-F by 4.47 billion barrels of oil
equivalent (boe), or approximately
23%. The order further concludes that
Shell also overstated the standard-
ised measure of future cash flows re-
ported in this filing by approximately
$6.6 billion. Shell corrected these
overstatements in an amended filing
on 2 July 2004, which reflected the de-
gree of Shell’s overstatements for the
years 1997 to 2002. At the time of an-
nouncing the order against Shell, the
SEC simultaneously made known its
intention to “pin the reserves scandal
on individuals” reportedly stating that it intended to take action
against people inside and outside the company.
20
Shell’s Annual Report and Accounts 2003 restated proven re-
serves reduced by 6.648 mn USD in 2001 and reduced by 6.469
mn USD in 2002. This corresponds to roughly 13% of the previous
proven reserves base. In addition, it
was identified that in previous years
leading management’s bonus pay-
ments were linked to the proven re-
serves base. This practice has since
been discontinued. The controversy
over the exaggeration of the oil and
gas reserves of Shell resulted in the
resignation of the then chairman Sir
Philip Watts[4], and the departure of
the head of the Exploration and Pro-
duction business Walter van der
Vijver and the CFO Judy Boynton.
In March 2004 The Economist re-
ported that US law firm Berger & Mon-
tague had claimed that Shell reck-
lessly violated accounting rules and
guidelines, which resulted in an enor-
mous and shocking overstatement of
oil and gas reserves” (the law firm
was then suing Shell on behalf of
shareholders claiming that the over-
statement had harmed shareholders
as they had severely overstated the
firm’s market value). The Economist
further reported that Berger was only
one of several law firms launching
cases. The article went on to imply
that the reserves recategorisation was the result of active, long
term problems, calling it “a scam of Enron proportions.”As a further consequence of the reserves recategorisation, on 19
April 2004, Bloomberg reported that the Royal Dutch/Shell Group
had lost its AAA credit rating with Stan-
dard & Poor’s which it had previously
maintained for 14 years.
On 24 August 2004, the UK financial
regulator, the Financial Services Author-
ity (the FSA) announced that it had im-
posed a penalty of £17 million pounds
(UK) on The Shell Transport and Trad-
ing Company p.l.c. and The Royal
Dutch Petroleum Company NV. The
FSA considered that:“Shell announced
false or misleading proved reserves and
reserves replacement ratios to the mar-
ket throughout the period 1998 to 2003
inclusive.” The FSA also considered
that Shells misconduct amounted tomar-
ket abuse on the basis that the market
was likely to have been, given a false or
misleading impression as to the price or
value of UK listed Shell shares
(p11: para60) The FSA further consid-
ered that Shells actions were particu-
larly serious, meriting a substantial pen-
alty. However, the level of penalty re-
flected the high degree of cooperation
which Shell had shown during the FSA
investigation. On the same date, the
SEC announced a fine of $70 million
USD on Shell making a combined fine
of approximately $150 million USD by
the UK and U.S. financial regulators.
In July 2006 Shell confirmed that the company had set aside
$500m to settle outstanding class action litigation in respect of the
reserves mis-statement issue.
In January 2006, Shell was also sued
by a group of Dutch pension funds alleg-
edly holding about 5% of Shell’s
shares[7].
A section of page 147 of Shells Annual
Report and Form 20-F for year ending
December 31, 2006, published in
March 2007 deals with the “Recategori-
sation of hydrocarbon reserves”. It re-
lates to the consolidated shareholder
class action pending in the United
States District Court for the District of
New Jersey. The lead plaintiffs are the
Pennsylvania State Employees’ Retire-
ment System and the Pennsylvania
Public School Employees’ Retirement
System. The remaining defendants in
the action are Royal Dutch Petroleum
Company (merged into Shell Petroleum
N.V.), The “Shell” Transport and Trad-
ing Company, plc, former Shell direc-
tors, Sir Philip Watts and Judith Boyn-
ton, and Shell auditors, Pricewater-
houseCoopers LLP, KPMG Accountants
N.V., and KPMG International. Related
class actions filed on 6 January 2006
by Dutch pension funds, and German
and Luxembourg institutional sharehold-
ers, are consolidated with the existing class action for pre-trial pur-
poses. The preliminary stage of the litigation is completed.
21An amended complaint has been filed and answered by the defen-
dants. Discovery has commenced. According to the same Shell An-
nual Report, the Court will hold hearings in June 2007 on various
legal issues including plaintiffs motion for class certification and on
whether federal securities laws ap-
ply to the claims of non-U.S. poten-
tial class members who purchased
Shells securities on foreign mar-
kets. The court will also decide vari-
ous summary judgement motions
being filed by Shell.
Sakhalin
Sakhalin-II is an oil and gas project
led by Shell on Sakhalin Islandin
Russia that involves the piping of
oil and gas to an oil terminal and
the construction of Russia’s first liq-
uefied natural gas LNG plant. The
project was controversial from the
start for cost, environmental and
community relations reasons. In
the summer of 2005 Sakhalin En-
ergy, the project operator, doubled
its estimated capital costs to
around $20 billion and LNG produc-
tion was delayed until 2008. Shell
expressed surprise at this huge in-
crease. Environmental reasons ac-
counted for part of the budgetary
errors.
The originally negotiated contract was a production sharing agree-
ment which gave the Russian state revenues only after Shell and
the other partner companies had recouped their costs and made a
substantial return on their investments. Thus Shell was substan-
tially protected from cost overruns which would lead to lower and
later income for Russia (and for Shell). This was the main reason
for the Russians to insist on a new
deal, involving Gazprom and for
the charge of greed being levelled
at Shell by many independent ob-
servers of the project.
The environmental and social con-
cerns came to a head at the end of
November 2005 when the Chief
Executive of WWF said that it
would have a “negative impact on
Sakhalin’s people and environ-
ment”. The timing of this attack
was difficult for Shell and the other
consortium partners as they were
seeking financing for the project
from theEuropean Bank for Recon-
struction and Development
(EBRD) at that time.
The spiraling project costs and
other difficulties have continued to
undermine confidence in Shell’s
reputation for good project man-
agement.
On 22 October 2006 an article in
The Observer reported that a leaked internal report by the Russian
government estimated that the final cost would now reach $28 bil-
lion.
22In late 2006, Shell and its partners in Sakhalin Energy reached an
agreement with Gazprom for the Kremlin controlled company to be-
come the majority shareholder in the venture. This was described
as a “Capitulation” by The Economist. Russian President Putin at-
tended the signing ceremony in
Moscow and indicated that envi-
ronmental issues had been re-
solved. In a news report on 23 De-
cember 2006, The Sunday Tele-
graph claimed that Shell had
been bullied into the deal by the
Russian authorities.
The Shell Foundation
On 28 September 2006, an article
published in The Guardian news-
paper alleged that “An attempt by
Shell to portray itself as a model
of corporate social responsibility
was undermined last night after-
Whitehall documents showed its
charitable arm discussing a key
commercial project with a British
government minister.” The article
entitled “Campaigners attack
Shells charity arm over Sakhalin
talks” related to The Shell Founda-
Bonus schemes
In 2004 Wall Street regulators investigated whether members of
Shells management were encouraged by executive bonus
schemes to over-state the oil giants reserves. It was reported that
some 5 per cent of the perform-
ance score-card of about 200 ex-
ecutives in Shells exploration and
production unit was tied to the
companys reserves replacement
ratio. Shell’s remuneration policy
changed significantly between
1990 and 2005 with senior execu-
tives in all functions being sub-
stantially rewarded for achieving
short-term performance related
targets. When Shell’s Sakhalin
deal unravelled in 2006 there was
comment that many of the senior
managers who negotiated the
deal in the first place had re-
ceived bonuses based on the
earnings expectations of that deal
as they then applied. Although
much less favourable terms were
forced on Shell in the 2006 rene-
gotiations it is not believed that
any return of personal bonuses
from these executives were re-
quested.
tion. The Charity Commission sub-
sequently conducted an inquiry
and according to an article published in The Guardian on 17 Octo-
ber 2006, concluded that The Shell Foundation has fallen short of
the good governance and decision-making that we expect from
large charities.
23Domain name oversight
Due to an oversight, Shell failed to register the top level internet do-
main name for the new company, Royaldutchshellplc.com. In May
2005 it launched proceedings to request the transfer of the domain
name, along with two other domain names relating to Shell includ-
ing
royaldutchshellgroup.com,
from their holder, Alfred
Donovan, a long-standing ac-
tivist against Shell. Shell lost
the case.
Tell Shell Forum
In 1999, Shell was the first
multinational to set up an on-
line discussion facility for its
stakeholders and the public
to engage in open debate
about its activities known as
the “Tell Shell Forum”. Shell
said at the time We genu-
inely do welcome all com-
ments, positive and nega-
tive… this website is in itself
evidence that we are inter-
ested in seeking your views
and willing to listen and re-
spond. Shell was criticised for withdrawing the forum in late 2005.
A replacement to the forum was promised, but has not appeared.
The discussions on the Shell Forum have been archived and are
available.
Participation in price fixing cartels
In September 2006, the European Commission fined Shell $137m
for their role in a cartel that fixed the price of bitumen. According to
a report published in the Houston Chronicle, “the EU Commission
said the company was an instigator, took the leadership in the car-
tel and was a repeat of-
fender”. The report went on
to state that “Shells fine was
increased by 50 percent be-
cause of its involvement in
previous cartels and another
50 percent for instigating and
leading the cartel.” A BBC
news report revealed that
Shell has previously been
fined by the EU Commission
for price-fixing in other mar-
kets (PVC and propylene).
An article in The Daily Mail
stated that Shells fine was
increased by lOpc for “ob-
structing the probe”. On 29
November 2006, it was re-
ported that the European
Commission was imposing
“its second-largest cartel fine
against Shell, Dow Chemi-
cal, ENI, Unipetrol and Trade-
Stomil.” The fine was imposed for “fixing prices of synthetic rubber,
used mainly in tyre production.” According to an article in The
Times newspaper, “Shells fine, as well as ENIs, was increased be-
cause it was a repeat offender.” All three of the featured quotations
are from The Times article.
24According to a BBC News report, also published on 29 November
2006, Royal Dutch Shell Plc was fined 160.8 million euros.
Fictitious trades
In January 2006, Royal Dutch Shell
Plc agreed to a $300,000 settle-
ment in respect of allegations that
two of its subsidiaries engaged in
fictitious crude oil futures trades on
the New York Mercantile Exchange.
Shell Trading U.S., located in Hous-
ton and London-based Shell Inter-
national Trading and Shipping,
agreed to pay $200,000 to settle a
Commodity Futures Trading Com-
mission case. Nigel Catterall, then
head of the futures desk for Shell
Trading U.S. agreed to pay
$100,000. Bloomberg reported that
Catterall and Shell engaged in pre-
arranged trades for oil futures at
least five times between November
2003 and March 2004. The CFTC
acknowledged that Shell had coop-
erated in the investigation. Accord-
ing to the Bloomberg story (one on
many news reports on the case), a
commission spokesman, Dennis
Holden, would not comment on how
the trading violations came to light.
False reporting, fictitious sales, manipulation of natural gas
prices
On 30 July 2004, The New York Times published an article under
the headline: Shell to Pay $150 Mil-
lion In Settlement On Reserves.
The last paragraph turned to a dif-
ferent subject, stating: Separately,
the Commodity Futures Trading
Commission said on Thursday that
Shell’s energy trading unit, Coral
Energy Resources, had agreed to
pay $30 million to settle accusa-
tions that it submitted false price
data to publishers. The case is part
of the commission’s industrywide
investigation into suspected ma-
nipulation of the energy markets.
The previous day, 29 July 2004, the
U.S. Commodity Futures Trading
Commission released a press state-
ment headlined: CORAL ENERGY
PAYS $30 MILLION TO SETTLE
U.S. COMMODITY FUTURES
TRADING COMMISSION
CHARGES OF ATTEMPTED MA-
NIPULATION AND FALSE RE-
PORTING. The opening paragraph
said: The U.S. Commodity Futures
Trading Commission (CFTC) an-
nounced today the issuance of an
administrative order (order) initiating and simultaneously settling
charges of false reporting and attempted manipulation of natural
gas transactions by Coral Energy Resources, L.P. (Coral).” The
25findings in the order included from at least January 2000 through
September 2002, Coral reported false, misleading or knowingly in-
accurate natural gas trading information, including price and vol-
ume information, to certain price reporting firms such as Inside
FERCs Gas Market Report, and Natural Gas Intelligence and that
Coral attempted to manipulate natural gas prices by delivering
trade information to the price reporting firms with the intent to affect
the market price of natu-
ral gas. The order finds
that Coral reported infor-
mation about trades that
never occurred, altered
price and volume informa-
tion for certain trades,
and failed to report some
actual trades, all with the
intent to affect the market
price of natural gas.
In November 2007,
Bloomberg news re-
ported: Five current and
former traders from Coral
Energy Resources, a unit
of Royal Dutch Shell Plc,
agreed to pay $1 million
to settle U.S. allegations
that they reported false
information on natural-gas trades to manipulate prices. According
to the Bloomberg article, Shell confirmed that three of the people
named in the settlement were employed by the company. Bloom-
berg quoted a Shell spokeswoman Rebecca Elliott as stating in an
e-mail: “In settling this civil case, the individuals neither admitted
nor denied the allegations of the complaint”, and “Since this matter
was between the CFTC and the individuals, it is not appropriate for
us to comment further on the matter.”
On 15 January 2008, the CFTC issued an enforcement press re-
lease under the headline CFTC Obtains Verdict Against Former
Coral Energy Trader Anthony Dizona for Attempted Manipulation.
The sub-headline stated: Jury Finds Defendant Violated the Com-
modity Exchange Act by
Attempting to Manipulate
the Natural Gas Market
Eight Times. In a sum-
mary entitled ENERGY
MARKETS ENFORCE-
MENT RESULTS issued
on 17 March 2008, the
U.S. Commodity Futures
Trading Commission re-
vealed a fine of $300,000
imposed on Shell Trading
US Company and Shell
International Trading and
Shipping Company in re-
spect of: fictitious sales &
noncompetitive trades
and prearranged trading.
At the time of the of-
fenses Dizona was an
employee of Shell Trad-
ing Gas and Power Company which provided services for Shell
subsidiary Coral Energy Resources, L.P.
Shell espionage
On 17 June 2001, The Sunday Times published an article head-
lined MI6 Firm Spied on Green Groups.
26It revealed that a private intelligence firm, Hakluyt & Company Lim-
ited, with close links to MI6spied on environmental campaign
groups to collect information for the oil
companies, Shell and BP. The article re-
vealed that an undercover agent,
German-born Manfred Schlickenrieder, a
serving member of the German secret
service, infiltrated and scuppered envi-
ronmental campaigns directed against
the oil giants. Schlickenrieder was said
to have posed as a left-wing sympathizer
and film maker.
The Nigerian Connection: According to
the article, Schlickenrieder tried to dupe
The Body Shop group to pass on infor-
mation about its opposition to Shell drill-
ing for oil in a Nigerian tribal land. The
spying operation began in 1996, when
Mike Reynolds, a director of Hakluyt and
former MI6 head of station in Germany,
was asked by Shell to find out who was
orchestrating threats against its petrol
forecourts across Europe. The threats
apparently followed an outcry over Shell
s attempts in 1995 to dump the redun-
dant Brent Spar oil platform at sea and
allegations of environmental damage
caused by Shells oil drilling inOgoniland,
Nigeria. Schlickenrieder made a film on
Shell in Nigeria called Business as
Usual: the Arrogance of Power.
Using this cover story, he interviewed friends of Ken Saro-Wiwa,
the Nobel prize nominee hanged by the military regime in 1995 af-
ter leading a campaign against Shell.
Schlickenrieder was known by the code
name Camus and had worked for the
German foreign intelligence service gath-
ering information about terrorist groups,
including the Red Army Faction. The
Sunday Times also reported that it had
seen documents which confirmed that
the spy, German-born Manfred Schlick-
enrieder, was hired by Hakluyt, an
agency that operates from offices in Lon-
dons West End. Confronted by The Sun-
day Times, BP and Shell admitted hiring
Hakluyt, but said they were unaware of
the tactics used on their behalf. Shell
said it had wanted to protect its employ-
ees against possible attack. One of
Schlickenrieders spying missions was to
gather information about the movements
of the motor vessel Greenpeace then op-
erating in the north Atlantic.Greenpeace
alleged that the scandal had echoes of
the Rainbow Warrior affair, when in 1985
its ship campaigning against nuclear test-
ing in the South Pacific was blown up by
the French secret service. Schlickenrie-
der was hired by Mike Reynolds. Accord-
ing to The Sunday Times report, Rey-
nolds and other MI6 executives left the
intelligence service after the cold war
ended to form Hakluyt in 1995.
27It was set up with the blessing of Sir David Spedding, the then
chief of MI6. The article stated that Christopher James, the manag-
ing director of Hakluyt, had been head of the MI6 section that li-
aised with British firms. The Sunday Times article also revealed
MPs believe the affair poses serious questions about the blurring
of the divisions between the secret service, a private intelligence
company and the interests of big
companies. Hakluyt refutes
claims by some in the intelli-
gence community that it was
started by MI6 officers to carry
out deniable operations. Sir Wil-
liam Purves, a Shell director was
Chairman of Hakluyt & Com-
pany. A former Group Chairman
of Royal Dutch Shell, Sir Peter
Holmes, was President of The
Hakluyt Foundation, an associ-
ated organisation.
There is an earlier example of
Shell’s admitted involvement
with undercover activity. In con-
nection with a letter dated 23
June 1998, Shell Legal Director
Richard Wiseman admitted that
Shell had used undercover activ-
ity involving a Mr Christopher
Phillips in the course of litigation.
The letter from Mr Wiseman refers to a related letter to the Office
for Supervising of Solicitors. According to an article published in
the Sunday Telegraph, although Shell lawyers admitted that they
hired Mr Phillips, they said it was only to carry out “routine credit
inquiries”. Shell subsequently settled the relevant litigation.
On 12 September 2001, under the headline: No Secret’s Safe
From These Sharp Eyes, The New York Times published an article
focused on corporate cloak-and-dagger escapades. An executive
of Shell International Exploration and Production, Mr Stephen J.
Wade, was revealed as being a “competitive intelligence analyst —
management-speak for corporate America’s equivalent of a spy.
The report said that Mr. Wade
uses every trick in the book and
may even dish out erroneous in-
formation… Mr Wade was
quoted as commenting: It isn’t
James Bond. The article went
on to say: Still, like any good
spy, Mr. Wade declined to give
detailed examples of information
gleaned this way. It also pointed
out that corporate spying some-
times skirts ethical bounds.
An article published in the Finan-
cial Times on 5 October 2005,
revealed that a Mr Ian McCredie
was in September 2004 ap-
pointed as a Shell Vice-
President responsible for secu-
rity. McCredie was described as
head of Global Security Serv-
ices at Shell International. The
FT article said of McCredie He
had worked for the UK Foreign Service since 1976 in security and
intelligence. This is believed to be a reference to the naming of Ian
Forbes McCredie OBE, as being a former MI6 officer.
28Iran
Shell courted controversy in January 2007
when they announced that they had signed
a deal to help Iran develop a major gas
field in defiance of pressure from the
United States. [12]
Shell has been active in Iran for many
years. Shell Iran has an office inTehran
from which various downstream busi-
nesses are managed and which is also the
centre for new exploration and production
and other projects. In 1999 Shell signed an
agreement with the National Iranian Oil
Company to redevelop the Soroosh and
Nowrooz offshore oil fields and Shell execu-
tives made it clear at the time of the sign-
ing how much the company valued its rela-
tionship with Iran. Drilling commenced in
2001. Whilst American oil companies were
prohibited by sanctions from working in
Iran Shell, along with some other Euro-
pean companies (e.g. Repsol), continued
to operate and pursue new opportunities in
the country. This was in contrast with BP
who decided not to be involved at a time
when the Iranian regime was criticised for
its anti-western stance, its suspected nu-
clear weapons programme, its support for
the insurgencies in Palestine and Iraq and
its institutionalised anti-Israeli and holo-
caust denial rhetoric.
On 27 July 2007, The Daily Telegraph pub-
lished an article under the headline Shells
Iran venture to continue. It reported that
Royal Dutch Shells chief executive Jeroen
van der Veer said there were no plans to
halt preparatory work on possible invest-
ments in Iran, despite renewed pressure
about the risks of operating in a country
where America has imposed economic
sanctions. The article said that Shell had
signed an initial $10bn (£4.9bn) agreement
with the Iranian government to develop two
phases of the South Pars gas field. It also
revealed that a number of U.S. pension
funds had warned Shell about potential
consequences of business links with Tehe-
ran when worsening US-Iran relations
could impact companies doing business
there. On 22 September 2007, The Times
newspaper reported Washington has re-
peatedly pressed European banks and en-
ergy companies to cease investing in a
state it lists as a state sponsor of terrorism.
Firms that could be hard hit include the
Anglo-Dutch oil giant, Shell, which is con-
sidering a multi-billion pound project in Iran
to produce natural gas. On 20 September
2007 The Houston Chronicle reported Flor-
ida to drop $1.3 billion in Iran, Sudan in-
vestments. It said that Floridas largest in-
vestment, $303 million, is with Royal Dutch
Shell PLC, headquartered in London,
which operates in Iran but not Sudan.
29A Shell spokesperson was reported as saying that Shell was moni-
toring Floridas law and similar proposals in other states and Con-
gress to assess their potential affect on the companys operations.
The Associated Press reported on 18 September 2007, that Royal
Dutch Shell plc had paid Coving-
ton & Burling LLP $100,000 to
lobby Congress and theU.S. State
Department to oppose economic
sanctions against Shell…
On 12 May 2008, Thomson Finan-
cial News reported that Royal
Dutch Shell and Repsol had with-
drawn from “the $10 bln-plus de-
velopment of phase 13 of South
Pars, the world’s largest gas
field…” but on the basis that they
might participate in “other
phases”. On the same date, The
Times published an article which
said in the opening paragraph:
“Royal Dutch Shell has apparently
caved into political pressure from
the US in backing out of a $10 bil-
lion gas project in Iran”.
Nicaragua
In 2002, a $490 million judgement
was made in favour of 466 plain-
tiffs by a Nicaraguan court jointly
against Shell Oil Company (SOC) and three other named defen-
dants (not affiliated with SOC), for alleged injuries resulting from
alleged exposure to dibromochloropropane (DBCP), a pesticide
manufactured by SOC.
According to information on page 147 of Shells Annual Report and
Form 20-F for year ending December 31, 2006, the pesticide was
manufactured prior to 1978 and was not shipped or sold by SOC to
any party in Nicaragua. The report states on page 147 that As of
December 31, 2006, nine addi-
tional Nicaraguan judgements that
have been entered in the collec-
tive amount of approximately $1.2
billion in favour of 1,737 plaintiffs
jointly against Shell Chemical
Company and three other named
defendants… Shell claims that the
Nicaraguan DBCP judgements are
unenforceable in a US court.
Alaska
Shell is a major partner in a contro-
versial oil exploration project in the-
Beaufort Sea off the northern
coast of Alaska and 15 kilometres
from the protected Arctic National
Wildlife Refuge. The project has
been opposed by environmental
protesters who have questioned
the content of environmental im-
pact assessments, stated that the
project has been rushed with in-
adequate consultation and who
have launched legal challenges
against the scheme. Green
Groups act to halt Shell Plans.
30Iraq
Shell has been criticised by some activists for seeking to benefit
from the regime change in Iraq. The NGO “Hands off Iraqi Oil” has
charged that “Shell has been working closely with the occupying
powers to create a framework that will allow multinational compa-
nies to take control of Iraq’s oil.”
And that they lobbying of Shell
and other oil majors “…could
result in multinational oil compa-
nies controlling and profiting
from most of the country’s oil-
fields for up to 20 years”.
Change of early retirement
scheme in Ethiopia
On November 20, 2007 Shell
Ethiopia Workers Union, which
claims to represent around
90% of the total Shell Ethiopia
workforce, filed a law suit at the
Federal First Instance Court in
Ethiopia alleging that Shell has
illegally changed its early retire-
ment policies in order to save
money on lay-offs ahead of a
possible closure of its opera-
tions in Ethiopia.
The complain states that Shell scrapped its Special Early Retire-
ment Scheme, which pays up to 55 months salary to employees
who leave company service earlier than their retirement date and
replaced it with a Voluntary Severance Package. The new package
is alleged to reduce the amount of money to be paid to departing
employees by up to 70pc while management members will get an
additional payment ranging from 40pc to 100 pc.
The Statement of Claim points out that a few years ago Shell took
over Agip Ethiopia and accepted 34 employees, 13 of whom opted
to avail themselves of the special early retirement scheme, thereby
receiving 55 months of salary.
On 2 December 2007, the Ad-
dis Fortune Newspaper in
Ethiopia published an article
entitled “Labour Union Sues
Shell Over Severance Bene-
fits”.
On 17 December 2007, an
Ethiopian newspaper, the
Jimma Times, published an
internet article under the head-
line ETHIOPIAN Employees ac-
cuse Shell of raiding retirement
fund
The case is scheduled for hear-
ing on December 28, 2007.
See also
▪ Sacred Headwaters cam-
paign against Shell gas devel-
opment in Canada
Notes
1. Wesseling, Louis (2000). Fuelling the War : Revealing an Oil
Company’s Role in Vietnam. London: I B Tauris & Co Ltd. ISBN
978-1860644573.
312. Sierra Club, “Defending Those Who Give The Earth A Voice”,
2000.
3. Christian Aid, Behind the
askhttp://www.christian-aid.org.uk/indepth/0401csr/csr_casestudy1
nigeria.pdf
4. DNV Inventory. Contents of Brent Spar, relative to quantities in
the North Sea, as detailed by Det Norske Veritas. Retrieved on-
March 10, 2005.
3233CHAPTER 3
Royal Dutch Shell environmental issues
Royal Dutch Shell is engaged in a variety of business activities across the world involving the
extraction, production, handling, processing, storage and transportation of hazardous products,
including hydrocarbons and chemicals. Such activities pose many dangers to its employees and the
public, including contributing to climate change as one consequence of environmental pollution.
34Royal Dutch Shell environmental issues
Royal Dutch Shell is engaged in a variety of business activities
across the world which of necessity
involves the extraction, production,
handling, processing, storage and
transportation of hazardous prod-
ucts, including hydrocarbons and
chemicals. On 13 May 2008, Shell re-
leased a report setting out ambitious
plans to meet the global energy chal-
lenge that can be summed up as more
energy, less CO2. The report [2] de-
scribes Shells plans to invest in sec-
ond generation biofuels and carbon
capture and storage. It also discusses
utilisation of natural gas and wind
power combined with the necessity
to reduce greenhouse gas emissions
and operational oil spills. The vast
scale of operation means that even
with the highest safety and mainte-
nance standards in current and future
activity, accidents and events arising
from human error or misjudgement
and or plant or equipment failure, are
likely to occur. The record of past en-
vironmental incidents and events de-
tailed in this article should be considered in that context.
UK Advertising Authority rules Shell advert misleading
On 7 November 2007 The Guardian published an article under the
headline “Shell rapped over CO2 ad-
vert.” The UK Advertising Standards
Authority (ASA) ruled that a Shell
advertisement featuring flower
heads emerging from refinery chim-
neys implying the oil giant used its
waste carbon dioxide to grow flow-
ers, breached ASA rules. According
to The Guardian article, The Advertis-
ing Standards Authority (ASA) upheld a
complaint that the press advert, which
featured the drawing misleadingly im-
plied all CO2 emissions helped produce
flowers and decided it breached industry
code clauses on truthfulness and environ-
mental claims. The article went on to
say that the advert is no longer ap-
pearing and that Shell had informed
the ASA it would not be used again.
Shell stated in its response to the in-
vestigation, that it supplied 170,000
tonnes of CO2 to local greenhouse
growers in 2005 and expected to sup-
ply a further 320,000 tonnes, explain-
ing that this stopped the equivalent
of the annual CO2 emissions from about 102,894 vehicles being re-
leased. The ASA ruling was also reported in The Independent.
35The Guardian covered the story again in a green themed article
published on 21 January 2008.
Dutch Advertising Authority rules Shell advert misleading
On 5 July 2007, Reuters reported [6] that the Dutch Advertising
Standards Authority had ruled
that a complaint made by
Friends of the Earth Nether-
lands about a Royal Dutch
Shell green themed advertis-
ing campaign was well
founded and that the advertis-
ing was misleading. Accord-
ing to the article: The environ-
mental group had complained
about an ad designed to show
how waste carbon dioxide grew
flowers and depicting a refinery
emitting flowers from its chim-
neys instead of smoke. Shell
maintained that it was crea-
tively using its waste carbon
dioxide to help grow flowers.
The Financial Times also cov-
ered the story reporting [7]
that Friends of the Earth had concluded that only a tiny proportion
of Shells carbon dioxide emissions were piped into greenhouses.
The FT stated that The environmental group took a similar argument to
the Belgian advertising authority, which rejected it.The FT went on to
conclude that Win or lose, the cases have brought attention to a clever
term that the environmentalists hope will challenge claims dreamt up by
big advertising agencies: greenwashing.
Release of chemical pollutants at Shell Texas Deer Park complex
On 16 May 2007, Bloomberg News reported [8] that Royal Dutch
Shell Plc had shut two ethyl-
ene plants at a Texas produc-
tion complex after it lost
steam power and released
tons of chemicals into the air
around Houston. The report
went on to say that Shells
Deer Park, Texas, complex
lost steam from an external
supplier on 2 May 2007 and
that consequential shut-
downs resulted in the airborne
release of dozens of contami-
nants, including 2,420 pounds of
ethylene, 1,782 pounds of propyl-
ene, 1,622 pounds of sulfur diox-
ide and 4,700 pounds of volatile
organic compounds in the Hous-
ton area.
Emission violations at Shell Martinez refinery in California
On 9 May 2007, the Houston Chronicle newspaper reported [9]
that Shell Oil Products, a subsidiary of Shell Oil Company, had
been fined $2.9 million for equipment failure that sent 925 tons of ex-
cess carbon monoxide into the air. According to the article, the
36pollution-causing emissions escaped the refinery in Martinez, California
over the course of a week. Karen M. Schkolnick, a spokeswoman for
the Bay Area Air Quality Management District, was quoted as say-
ing that The fine reflects the size of the incident and the fact that human
errors compounded the situation and
that “It was a series of either bad
judgements or mechanical failures and
it led to this acute situation”. Steve
Lesher, a spokesman for the Marti-
nez refinery, was quoted as conced-
ing that Shell had not contested the
Air District’s claims, but is proud of
its pollution control record. Lesher
went on to say “We have rigorous
maintenance standards, and you hope
something like this never happens and
you work to make sure it doesn’t hap-
pen.”
Environmental infringements by
Shell in Louisiana
On 14 March 2007, the Louisiana
Department of Environmental
Quality (DEQ) announced [10] that
Shell Chemical Company has set-
tled six years of environmental in-
fringements with a $6.5 million
agreement covering charges that it violated air and other emissions
standards between 1999 and 2003. The settlement includes a $1 mil-
lion fine which will go into the state’s hazardous waste clean-up
fund and $5.5 million which will be invested in beneficial environ-
mental projects to reduce flare reduction systems at four Shell
Chemical plants. Under the terms of the settlement [11] Shell does
not admit any wrongdoing and in mitigation pointed out that
many of the violations were self-
reported. DEQ Assistant Secretary
Harold Leggett was quoted as say-
ing: This is an important settlement,
not just because both parties have ad-
dressed past violations, but because we
have also agreed to address the needs
of the future.” The improvements,
to be located at the company’s
Norco plant, are scheduled to be
completed by 2014. The agreement
also calls for Shell Chemical Com-
pany to improve its leak detection
and repair program at its plants in
Norco, Taft and Geismar and a pe-
troleum refining plant in St. Rose.
Groundwater contamination by
Shell in USA
Shell Oil Company, along with
many other defendants, has been
sued in the USA by public water
suppliers and governmental agen-
cies, alleging responsibility for groundwater contamination caused
by releases of gasoline containing oxygenate additives. Most of the
37lawsuits seek recovery of alleged damages and clean-up costs.
Some claim punitive damages.
In October 2006, Shell Oil Company and a subsidiary company,
Equilon Enterprises, agreed to pay $6.5 million in a lawsuit settle-
ment withRiverside County California. The agreement included
$3.6 million in civil penalties and ordered Shell and Equilon to stop
any future violations of California state
health and safety laws. The lawsuit al-
leged 56 state law infringements regard-
ing maintenance of underground stor-
age tanks and handling of hazardous
materials and waste. Stephanie Weiss-
man, Riverside County senior deputy
district attorney with the office’s Envi-
ronmental Crimes Unit alleged leaks
from underground gasoline storage
tanks can contaminate groundwater and
have long-term negative impact on the
environment. According to a report
[12]published by the Press-Enterprise
newspaper [13], The court action stemmed
from a discovery in 2003 by the Riverside
County Department of Environmental
Health Hazardous Materials Division that
Equilon had failed to report or fix leaking underground storage tanks at
three Coachella Valley gas stations. The article went on to say that Vio-
lations were later found at two other sites in western Riverside
County. Shell and Equilon, which owns and operates the gas sta-
tions, denied any wrongdoing. Equilon president, David Sexton,
claimed in a statement that Shell had spent $55 million in the previ-
ous nine years to improve underground storage tanks and equip-
ment at its gas stations in California. As part of the settlement, over
$1 million is being spent by Equilon for the installation of sensors
and locking mechanisms at its stations.
According to information on pages 146 and 147 of Shells Annual
Report and Form 20-F for year ending December 31, 2006, there
were approximately 69 pending law-
suits as of the December 31, 2006 date,
asserting claims against SOC and other
defendants including other major en-
ergy and refining companies. The report
states that In 19 of the lawsuits, plaintiffs
allege aggregate compensatory damages of
approximately $1.25 billion and aggregate
punitive damages of approximately $3.35
billion. Shell considers the amounts
claimed by plaintiffs in the pleadings to
be highly speculative. For this reason no
financial provision has been made for
the relevant cases. Shell also says that
there are significant unresolved legal
questions. The report states that mone-
tary damages have not yet been claimed
in the other 50 lawsuits.
The 9th U.S. Circuit Court of Appeals ruled [14] on 16 March 2007
that Shell Oil Company and two railroad corporations must pay
the costs of cleaning up a toxic waste site near Arvin the Central
Valley, in California. The Court confirmed an earlier ruling regard-
ing both the railroad corporations and Shells liability, deciding that
38The railroads and Shell are jointly and severally liable for the harm at the
Arvin site. A local newspaper, the Central Valley Business Times,
reported [15] twenty years of leakage and
spread of Shell-produced agricultural chemi-
cals: the soil fumigants D-D and Nemagon.
D-D and Nemagon members of a class of
chemicals called nematocides hazardous ma-
terials in violation of several hazardous
waste laws. According to the newspaper
report, theU.S. Environmental Protec-
tion Agency investigated separately and
found evidence of soil and groundwater
contamination at an Arvin facility.
On 29 June 2007 The Bakersfield Califor-
nian newspaper reported [16] that Shell
Oil which had shut down on a tempo-
rary basis a soil cleanup operation at the
Rosedale Highway refinery two years
ago and had not restarted it despite re-
peated requests from state authorities.
The article stated: The shutdown had
stalled efforts to clean up extensive ground-
water contamination beneath the refinery,
state officials said, allowing pollutants like
MTBE, gasoline, diesel and benzene to seep
further into the water table. The oil refin-
ery has been the site of many releases of
oil and other petroleum products into
the ground going back over two decades. In 1987 a pipeline leak
resulted in an estimated 2 million gallons of partially refined fuel
seeking into the ground. The leaks have continued with the most
recent occurring in June 2007. On 27 August 2007, The Bakersfield
Californian reported [17] that California
State Senator, Dean Florez, had “asked
the states attorney general to take legal ac-
tion against Shell for the companys inac-
tion”.
On 27 November 2007, The Bakersfield
Californian published a further article
[18] this time reporting Shell Oil had re-
started the clean up of pollution under-
neath the Rosedale Highway refinery
that environmental regulators stated
was shut down over two years previ-
ously without their consent. The article
said: “The outer edge of the contamination
comes close to the Kern River and a city
well, both sources of drinking water for Bak-
ersfield residents.” The article went on to
state that in 1987 an underground pipe-
line had leaked “an estimated 4 million to
5 million gallons of partially refined fuel
into the ground.” This was a substan-
tially larger volume than had previ-
ously been reported. A Shell spokes-
woman was quoted as saying “the
cleanup system will continue to remove pol-
lution from the ground at the refinery for an
additional 12 to 15 years.”
39Unauthorised venting and flaring of gas by Shell in USA
On 5 August 2003, the
United States Depart-
ment of Justice an-
nounced [19] that Shell
Oil Company had agreed
to pay $49 million USD
to settle claims under the
False Claims Act and vari-
ous administrative provi-
sions relating to its unau-
thorized venting and flar-
ing of gas… at its Auger
platform, located some
150 miles (240 km) off
the coast of Louisiana
and at other Shell facili-
ties in the Gulf of Mex-
ico.
The settlement also re-
solved claims that Shell
had failed to properly re-
port, or pay royalties on
the vented and flared
gas.
This was the third case settled by Shell Oil Company in the period
1999 to 2003 alleging that it had underpaid royalties owed to the
United States.
40In 2000, Shell agreed to pay $56 million to settle claims that it un-
dervalued gas produced from federal leases. Shell paid $110 mil-
lion in 2001 to settle [20] US Department of Justice claims that it un-
dervalued crude
oil extracted from
federal lands.
41Shell Pipeline rupture in Washington
The United States Department of Jus-
tice, acting for theEnvironmental Protec-
tion Agency (EPA), filed a civil settle-
ment on January 17, 2003, in the United
States District Court for the Western Dis-
trict of Washington in relation to an ac-
tion against United States v. Shell Pipe-
line Co. LP fka Equilon Pipeline Co.
LLC and Olympic Pipe Line Co. The
civil settlement resolved Clean Water
Act claims for environmental violations
which led to a fatal pipeline rupture in
Bellingham, Washington in 1999.
The original complaint filed in May
2002 alleged that the pipeline rupture
was caused by “gross negligence in the op-
eration and maintenance of the pipeline.”
The consequences of the rupture were
tragic. Over 230,000 gallons of gasoline
were discharged. The gasoline ignited
in a fireball which created a plume of
smoke some six miles (10 km) high. As
a result of the explosion, two ten-year-
old boys and a teenager were killed
and at least nine other people were in-
jured. According to the EPA, the gaso-
line spill and resulting fire “killed more
than 100,000 fish and other aquatic organisms in the impacted area”.
Other species of wildlife were also killed.
The settlement required Shell to pay a
federal civil penalty of $5 million and
institute a spill prevention program on
four other Shell operated pipelines.
Shell was also required to enter into an
agreement with theState of Washington
to include payment of $5 million to the
State as a contingency fund in case or
other State-approved expenditures. Fed-
eral and state civil penalties were in ad-
dition to criminal fines of $15 million
levied against Shell in a separate crimi-
nal case.
42Environmental law infringements in Brazil
In 1951, Shell Chemicals of Brazil built a storage tank and terminal
in its chemical plant in Paulinia, 120 kilometres north-west of São
Paulo, beginning operations that last to the present. A related pesti-
cide plant was also founded, but moved out during a regional de-
industrialisation in the
1970s. While both plants’ op-
erations were in general ac-
cordance with local and in-
ternational standards for dis-
posals of waste, these stan-
dards were later found to be
lacking. Furthermore,
among the pesticides pro-
duced were “drins” – en-
drin, dieldrin and aldrin,
pesticides later discontinued
due to their toxic, persistent
and bio accumulative na-
ture. In the early 1990s,
Greenpeace and the Union
of Workers in the Mining
and Petroleum sector (Sin-
petrol) first raised charges
that the area’s soil, air and
water were contaminated with heavy metals (most notably, lead)
and drins.
In February 2001, Shell admitted responsibility (see list of articles)
according to a Greenpeace report, for the contamination by the or-
ganochlorine pesticides. The report indicates that drins were found
in the groundwater and soil under the farms located between the
plant and the Atibaia River, a tributary of the Piracicaba River, pro-
viding water to cities in the region. Shell still denies responsibility
for the lead contamination, claiming that the contamination is or-
ganic lead, while theirs was
rendered inorganic before
disposal. According to the
report, while Shell accepted
responsibility for the pollu-
tion, it claimed that it has
not been established
whether the pollution threat-
ens the health of the local
population. Shell conducted
blood tests among local resi-
dents and concluded that
the levels of toxins present
in their blood were not
harmful. In June 2002, São
Paulo state‘s environmental
watchdog Cetesb, fined [23]
Shell for toxic pesticide pollu-
tion. According to a March
2003 article [24] in Ode, an
international magazine, a Shell official stated: If there is proof that
our products have caused harm then we will immediately take responsibil-
ity for it. That is our global policy. According to the same article,
many people were allegedly sick with ailments including cancer-
43ous growths, intestinal disorders, lung diseases and children with
neurological defects.
According to Jose Antonio Puppim
de Oliveira, a professor at the Brazil-
ian School of Public and Business Ad-
ministration, Shell’s stance toward
the case has been: “The company
wants to treat the case purely from
the scientific point of view by using
the best methods and techniques of
risk assessment and risk manage-
ment. They see no point in spending
huge amounts of resources to clean
up the area completely because the
risk is overcome if no one drinks the
subterranean water. Moreover, Shell
claims other companies may also be
responsible and the problem quite
possibly may continue into the fu-
ture. The cleanup will not improve
the quality of life of Vila Carioca
orSão Paulo‘s inhabitants since under-
ground contamination and other envi-
ronmental problems such as air and
water pollution are common in the
city. Shell argues that it prefers to use
its resources to contribute to the soci-
ety in a more sensible way with other social and environmental
initiatives.”[25]
In January 2005, Shell was reportedly ordered by a judge [26] to
stop dumping chemical wastes and to decontaminate drinking wa-
ter sources[citation needed]. The company was additionally fined
four times by the state environmental
agency between 1993 and 2003. The
report by Friends of the Earth claims
health problems for employees and
those living nearby, who were alleg-
edly found to have high concentra-
tions of heavy metals and pesticides
in their blood. Neither Shell nor the
state environmental agency (CE-
TESB) recognised the test as valid,
claiming that the methodology was
flawed.[27]
Refinery contamination in Texas
In 1901, Port Arthur, Texas was fortu-
nate in being the nearest port to the
first oil gusher in the state of Texas.
Motiva Enterprises LLC, a US com-
pany jointly owned by Shell and the
government of Saudi Arabia, own
and operate an oil refinery in Port Ar-
thur which was originally founded
by the oil company Texaco in 1903.
The refinery has been the subject of
an environmental campaign led by
Hilton Kelley, who together with 1,200 fellow residents of Port Ar-
thur, has launched a class action lawsuit against Shell alleging
44breach of environmental human rights. In a report in The Guardian
newspaper published in the UK on 24 June 2004, Kelley claimed
the Shell refinery was emitting 200-300 times the allowed emissions of
chemicals – many of them carcinogenic. He was also quoted as alleg-
ing that “children suffered from asthma and cancerous tumours while
women, including members of his family, had had their uterus and ova-
ries removed”. According to a BBC TV News programme in the UK,
Newsnight, broadcast on 28 October 2004, a study in the year 2000
found that resi-
dents have high
levels of have lev-
els of respiratory
disease and
immune-system
problems way
above those of a
similar control
group sited
60 miles (97 km)
away.
Newsnight also
reported that
when a federal
air quality van toured the area in January 2003, it found hot spots of
cancer-causing and toxic chemicals. However, the origin of the pollu-
tion is unclear because four other oil facilities operate in the town.
Oil Refinery in Durban
The Sapref, oil refinery in Durban, the largest in South Africa
(172,000 barrels per day) , is jointly owned by Shell and BP, and has
been accused by protesters of having a “dismal pollution record
which has claimed the lives of many residents” [1]. Sapref themselves
admitted in writing to residents, that the plant did not have a “per-
fect environmental and social performance record”. The main accu-
sation is that Shell/BP apply double standards, allowing the South
African plant to be far lest circumspect on environmental controls
than in its refineries elsewhere in the world. [2]. Critics of Shell
pointed to the companys Statement of General Business Principles
[3] which
stated: We aim
to be good neigh-
bors by continu-
ously improving
the ways in
which we contrib-
ute directly or
indirectly to the
general well-
being of the com-
munities in
which we work..
Protest groups
such as Green-
peace and Friends of the Earth said that Shell fell far short of this
ambition at its joint venture refinery in Durban.
45US Clean Air Act violations
On March 21, 2001, the United States Environmental Protection
Agency and the U.S. Department of Justice announced a settlement
committing nine refineries owned by Motiva, Equilon Enterprises,
and the Deer Park Refining Limited Partnership to a program to
ensure compli-
ance with impor-
tant provisions
of the United
States Clean Air
Act. The compa-
nies agreed to in-
vest $400 million
over eight years
to reduce emis-
sions of nitrogen
oxides, sulphur
dioxide and par-
ticulate matter.
Motiva Enter-
prises LLC, is a
joint venture be-
tween Shell and
Saudi Refining
Inc. Equilon Enterprises is a subsidiary of Shell Oil Co. Shell Oil
Products is a partner in Park Refining Limited partnership.
Emission violations at Shell Wood River Refinery in Illinois
On 9 September 1998, the U.S. Justice Department announced a set-
tlement with Shell Oil Company relating to hundreds of environ-
mental violations at Shell Oil Company’s Wood River oil refinery located
on over 2,000 acres (8.1 km²) on the banks of the Mississippi River
in Roxana, Illinois, near St. Louis. Shell and its affiliates agreed to a
judicial decree requiring Shell to achieve and certify compliance with
all environmental
laws at the Wood
River refinery and
to carry out envi-
ronmental pro-
jects valued at
over $10 million
including added
protections of
Mississippi River
water quality,
and pay $1.5 mil-
lion in civil penal-
ties — of which
the sum of
$500,000 would
be paid to the
U.S. co-plaintiff,
the State of Illinois. According to the Justice Department release,
Environmental problems at Wood River included: illegal levels of sulfur
dioxide and hydrogen sulfide air emissions, violations of emission stan-
dards for benzene (a hazardous air pollutant), violations of solid waste la-
belling, reporting, and manifesting requirements, untimely reporting of
emissions of extremely hazardous substances such as ammonia and chlo-
46rine, and violations of Illinois water
regulations. Under the decree,
Shell was required to purchase
$500,000 worth of land adjacent
to the Mississippi River and then
transfer ownership to the State of
Illinois on the basis that the land
must be appropriate for “wetlands
preservation, water quality protec-
tion, and wildlife conservation pur-
poses”. Steve Herman, EPA’s As-
sistant Administrator for Enforce-
ment and Compliance Assurance
was quoted as saying: “In settling
this case, the federal government has
followed the basic principle that pol-
luters will be required to pay for and
correct the damage they cause, as
well as prevent future damage.” W.
Charles Grace, U.S. Attorney for
the Southern District of Illinois
commented:“These severe penalties
will not only force Shell Oil into en-
vironmental compliance, but will
also reinforce the message that we
will not tolerate environmental deg-
radation of our country’s greatest
natural resources.
”Brent Spar
Shell was also challenged by
Greenpeace for plans for subsea
disposal of the Brent Spar, an old
oil transport and hub station lo-
cated in theNorth Sea, into the
North Atlantic. Shell eventually
agreed to disassemble it onshore
in Norway, although it has al-
ways maintained that its original
plan to sink the platform was
safer and better for the environ-
ment.
On disposal, it transpired that the
Greenpeace estimates for toxic
content were inaccurate.
Shell settles Martinez Refinery
dumping suit for $3 Million
On 8 February 1995, an article in
the The New York Times head-
lined Shell Settles Dumping Suit
for $3 Million revealed that Shell
Oil Company had agreed to settle
a lawsuit alleging that it had been
dumping illegal amounts of sele-
nium into San Francisco Bay and
theSacramento-San Joaquin River
Delta.
47As part of the settlement, Shell agreed to reduce the selenium released
in wastewater at its Martinez refinery. The article said that selenium
is a nutrient in small amounts but is toxic in larger doses. While ad-
mitting Shell had exceeded permitted limits, company officials
claimed that the selenium discharges in the strait were not enough
to harm the environment.
Shell fined $19.75 million for oil spill from Martinez Refinery
On 1 December 1989, The New York Times reported that Shell Oil
Company had agreed to pay $19.75 million for spilling more than
400,000 gallons of crude oil into San Francisco Bay. Shell said that it
had spent an additional $14 million in cleaning up the spill, when oil
flowed from a pipe at its Martinez refinery in April 1988. Oil leaked out
from a 12.5-million-gallon storage tank at the manufacturing com-
plex 40 miles northeast of San Francisco. The Government said that
several Federal regulations were broken. According to the article at
least 250 birds and 50 other animals were found dead and a valu-
able wildlife habitat was ruined and tidal marshlands would take
10 years to recover.
48Explosion at Shell Louisiana refinery
On 5 May 1988, a major explo-
sion occurred at a Shell oil refin-
ery in Norco, Louisiana. The
New York Times reported six
deaths, one person missing and
42 people injured. The blast
shattered windows up to
30 miles (48 km) away and
“damage was sustained on both
sides of the mile-wide Mississippi
river“. According to the same
report, Norco residents were
“fed up over recurring emergencies
that had forced them to evacuate
their homes eight times in 12
years”.
An article published by Alter-
Net in February 2005 concern-
ing the explosion and its conse-
quences said that it spewed 159
million pounds of toxic chemicals
into the air, requiring the evacua-
tion of 4,500 people and that Shell
subsequently paid out $172 million
in damages to some 17,000 claim-
ants.
An article published by The
Times-Picayune newspaper on 19 February 2007 reported that a
lawyer involved in bringing a
federal class action lawsuit
against Shell in relation to the
explosion was at risk of disbar-
ment for paying a Shell em-
ployee $5,000 in 1991 for inside
information about what the
lawyer alleged to be misconduct
by Shell in preparing its witnesses
for depositions. The lawyer fur-
ther justified the payment by
claiming genuine belief that pay-
ing the Shell insider for informa-
tion would compensate for Shell’s
refusal to cooperate.
49Pollution at Rocky Mountain Arsenal, Denver, Colorado
In a working paper published by the University of Colorado, Boul-
der, the Rocky Mountain Arsenal –
the RMA – located some six miles (10
km) northeast of downtown Denver,
Colorado was described as 27 square
miles of toxic horror with the reputa-
tion of being “the most polluted
piece of ground in America.” Origi-
nally used by the United States Army
from 1942 as a chemical weapons
plant, the RMA was until 1982 util-
ised by Shell Chemical Company to
produce pesticides and herbicides.
The list of chemicals and contami-
nants polluting the RMA is described
in the paper as mind-boggling.
From 1983 onwards, a number of law-
suits arose from contamination at the
RMA. The State of Colorado sued
Shell and the U.S. Army for natural
resource damages under the Compre-
hensive Environmental Response,
Compensation, and Liability Act,
known as CERCLA. At the same
time that the State of Colorado was
pursuing its damages claim against
the Army and Shell for $50 million per toxic discharge, the Army
filed a lawsuit against Shell in respect of the contaminant liability.
Shell issued proceedings against the Army, claiming $1.8 billion.
TheU.S. Department of Justice filed a related lawsuit against Shell,
claiming almost $1.9 billion.
In 1988, Shell and the Army settled
by filing a consent decree. Each
agreed to pay 50 percent of the first
$500 million in clean-up costs. A for-
mula was also agreed to cover sub-
stantial additional cleanup costs.
Shell lodged a claim with its insurers
for reimbursement.
On 13 November 1988, The New
York Times reported that Shell Oil
Company and a Denver law firm
Holme Roberts & Owen had been
charged in a lawsuit brought by Trav-
elers Insurance Company seeking
$66 million in damages, with conspir-
ing to conceal years of pollution at
the RMA. The RMA was said to be
contaminated by the residues of nerve
gas and other chemical weapons the
Army made from the early 1940s until
the late 1960s and by waste from the pro-
duction of pesticides and herbicides by
Shell on land leased at the arsenal from
1952 to 1982. The article said that
chemicals have seeped into fresh water and underground water
supplies in the area. The article explained that the settlement re-
50quired Shell to contribute at least $500 million towards the clean-
up. Shell had found it necessary to seek reimbursement through
the courts from 250 insurance
carriers, including Travelers,
one of the primary insurance
companies covering the rele-
vant risk. In its counterclaim,
Travelers had alleged that Shell
knowingly and intentionally re-
leased pollutants into the environ-
ment since commencement of its
operations. Their lawsuit also
charged that Holme Roberts con-
spired with Shell to mislead Travel-
ers about the extent of the pollu-
tion. The Travelers lawsuit
sought the return of $16 million
already paid to Shell, plus $50
million in punitive damages.
On 21 December 1988, The
New York Times published an
article [29] announcing that a
jury had found in favour of
Travelers and the other insurers
against Shell on the basis that
Shell was not covered by any of
its 800 insurance policies be-
cause it knew it was polluting the ground water at the RMA and that the
jury was persuaded that Shell was an intentional polluter.
The article revealed that the total clean up cost, to be split by Shell
and the Army, was estimated to be as much as $2 billion. The Su-
preme Court reviewed the State
of Colorado RMA case early in
1994 and ruled in its favour.
51CHAPTER 4
Royal Dutch Shell safety concerns
The above headline and related extract from an article published by The Wall Street Journal in March
2007 highlighted a very serious problem at Shell identified in numerous press articles. Namely the
safety of people working for an oil giant which puts production and profits before safety.
52Royal Dutch Shell safety concerns
The energy multi-national Royal Dutch Shell, has faced campaign-
ing activity on its safety record and Health and Safety working
practices, particularly in relation to its North Sea platforms, follow-
ing the tragic death of only two
offshore workers after a gas
leak on its Brent Bravo plat-
form on 11 September 2003.
Representations made by off-
shore unions and by Bill Camp-
bell, the retired HSE Group
Auditor of Shell International,
have attracted the attention of
the news media resulting in nu-
merous articles being pub-
lished on the subject. Shell has
consistently maintained follow-
ing the Brent Bravo accident,
that it gives first priority to the
safety of offshore workers and
all Shell employees.
This article focuses on Shell’s
health and safety record.
Developments in March 2007
In March 2007, several newspapers published articles in relation to
Royal Dutch Shell safety issues.
On 5 March 2007, The Guardian newspaper published an article un-
der the headline Shell safety record in North Sea takes a hammer-
ing. It reported that Shell had been warned repeatedly by the UK
Health and Safety Executive – the “HSE” – regarding the poor state
of the company’s North Sea platforms. The article stated that on 13
November 2006, Shell had
been served with a rebuke and a
legal notice that it was failing to
operate safely. An Aberdeen
sheriff’s court had previously
ruled in a Fatal Accident In-
quiry that Shell could have pre-
vented two deaths on the Brent
Bravo platform if it had prop-
erly carried out a repair. Shell
had earlier admitted responsi-
bility for the Brent Bravo acci-
dent.
53According to The Guardian, on the day of the sheriff’s report, the
Offshore Industry Liaison Committee had complained that the
Brent Bravo platform still had leaks, dangerous stairs, and lifts left bro-
ken for six months. The article went on to say that in the summer of
2006, Shell had said that it was in the middle of a $1bn (£515m) pro-
gramme to upgrade the platforms, claiming: “Safety is and will re-
main our first priority.” The Guardian report drew attention to the
HSE website which said that Shell was issued with 10 improvement
notices during
2006 and also
pointed out
that Notices
are served
where the
HSE considers
a company is
operating un-
lawfully with
unacceptable
risks. The arti-
cle also re-
vealed that
Last year, Shell
was embarrassed when Bill Campbell, one of its senior safety consultants,
claimed the company was operating a weak safety regime and said some
employees had been falsifying documents. Shell denied the charges, but
Mr Campbell has been threatening the company with a defamation case.
On 15 March 2007, The Wall Street Journal published an article on
its online “Energy Blog” under the headline: Shells Safety Problem.
The article compared the safety record of Shell with its rival BP,
which has been heavily criticised for its poor safety standards since
the deadly Texas City Refinery (BP) explosion in 2005. The Wall
Street Journal highlighted the fact that Royal Dutch Shell was a far
more dangerous company to work for in the past two years and also
pointed out that according to an annual report filed by Shell with
the United States Securities and Exchange Commission on 14
March 2007, 37 Shell employees and contractors died in 2006, com-
pared with just 7 BP employees. In the same filing, Shell CEO
Jeroen van
der Veer was
quoted as
stating: Our
safety perform-
ance in 2006
was mixed
and We have
responded by
reinforcing
our safety fo-
cus through a
dedicated
global safety
function that
will improve compliance with standards and procedures worldwide.
On 20 March 2007, The Wall Street Journal published an Energy
Blog article on its website under the headline Shells Record Worse
Than BPs. The article cited a comment in a Wall Street Journal En-
ergy Roundup report which said …though BP has been chastised for
its safety record in the past two years, it has not lost as many employees
and contractors to death as rival Royal Dutch Shell, which employs
54roughly the same number of people. The article also referred to a Finan-
cial Times story published on 20 March 2007 under the headline
Safety record is put in the spotlight which had expanded the Shell/
BP comparison to include several oil majors over more years. It
quoted from the FT story: Since 2003, the first year of the Times study,
Shell has had more global employee and contractor deaths than the other
four. Shell has appointed
a global vice-president
for health, safety and en-
vironment to tackle
safety problems and has
pointed out that it oper-
ates in the dangerous Ni-
ger Delta, where militant
attacks accounted for 9
of its fatalities in 2006.
An update has subse-
quently been added to
the Wall Street Journal
article explaining why
the headline has changed
to FT Data: Is Shells Re-
cord Worse Than BPs? It
explains While it may be
true Shell has had more deaths than BP in at least the past couple of years
(which weve confirmed in their annual reports), its worth noting that
these tallies are not necessarily the best measure of a companys safety re-
cord, as they do not account for the number of accidents per worker.
Resolution of Shell safety problems may impact on CEO succes-
sion
Concern over Shell safety issues has led to media speculation that
the subject may impact on the appointment of a successor to Royal
Dutch Shell Plc Chief Executive, Jeroen van der Veer, who is retir-
ing in 2009. An article published by The Guardian on 29 March
2007, under the headline
Van der Veer – a safe
pair of hands? stated in
reference to Van der
Veer, The one big area
where he has fallen down is
safety. It went on to re-
mind readers that the
newspaper had revealed
a few weeks earlier that
Shell had continued to re-
ceive warnings from the
Health and Safety Execu-
tive that it is acting ille-
gally with regard to safety
in the North Sea. The arti-
cle concluded that Mr
van der Veer needs to bring
a halt to this, and so does exploration and production boss Malcolm
Brinded if he wants to stand any chance of taking over the top job. An-
other article published by the Guardian on the same day, 29 March
2007, under the headline Shell chief to stay an extra year beyond
company retirement age, also contained commentary linking the
succession with safety issues. It stated: There will be a struggle to re-
55place Mr van der Veer among the three managing directors: Malcolm
Brinded, head of exploration, Linda Cook at gas and power, and finance
director Peter Voser. Mr Brinded, 54, has been seen as a frontrunner but
might be vulnerable over North Sea
safety after revelations an internal audit
found violations of safety procedures and
the alleged falsification of compliance
documents. Shell denied the latter
charge”.
The Brent Bravo accident and after-
math
The only fatal accident for which
there is detailed information avail-
able is for the Brent Bravo North Sea
platform tragedy. Brent Bravo, lo-
cated about 180 miles east of the Shet-
land Isles, is one of four oil produc-
tion and storage platforms in the UK
northern sector of the North Sea that
make up the Brent field. On 11 Sep-
tember 2003, two platform workers,
Sean McCue, 22, of Kennoway in
Fife, and Keith Moncrieff, 45, of In-
vergowrie, Tayside, lost their lives
after a sudden escape of gas in a plat-
form leg where they were working.
Sixty non-essential staff were evacuated from the platform by heli-
copter after the gas was detected. According to a BBC News report
published the following day, Shell Expro Managing Director Tom
Botts said that the emergency response system immediately shut
down the platform. Jake Molloy, the leader of the offshore union
Offshore Industry Liaison Committee -“OILC”, was quoted as say-
ing that unions had already com-
plained to the HSE about a backlog
of maintenance and staffing issues
in the Brent Field, particularly on
the Brent Bravo platform. The article
revealed that the HSE were investi-
gating the accident. On 9 February
2005, a BBC Newsreport revealed
that Shell had been charged follow-
ing the deaths of the two offshore
workers. On 31 March 2005, The
Scotsman newspaper reported that
Shell had admitted at Stonehaven
Sheriff Court breaching three health
and safety charges in connection
with the deaths.
On 27 April 2005, BBC News re-
ported that Shell had been fined
£900,000, thought to be the biggest fine
on a company following a North Sea ac-
cident after admitting breaching
health and safety regulations. Sheriff
Patrick Davies said that a “substan-
tial catalogue of errors” caused the
deaths of the two men, but he had taken into account that Shell
had tendered guilty pleas at an early stage.
56The two offshore workers who died had been asked to inspect a
temporary repair patch on a safety-critical pipeline in the leg. The
patch had been a temporary repair for 10 months.
On 18 July 2005, a BBC News re-
port revealed that Scotland’s senior
law officer, The Lord Advocate, had
overturned a decision made by
Crown counsel not to hold a fatal
accident inquiry into the deaths of
the two men on Brent Bravo on the
basis that it would be in the “wider
public interest” for an inquiry.
On 23 June 2006, The Times pub-
lished an article under the head-
line: “Unions call for inquiry into
safety at Shell“. The article made ref-
erence to allegations made by Bill
Campbell, a former senior Shell offi-
cial.
The Fatal Accident Inquiry Report
into the deaths of SEAN SCOTT
McCUE and KEITH SCOT MON-
CRIEFF was released in July 2006.
On 19 July 2006, an article about
the findings of the Inquiry was pub-
lished by The Times under the headline: Unions call for manslaugh-
ter law after Shell deaths inquiry. It reported that The six-month in-
vestigation into the deaths on Brent Bravo in September 2003 concluded
that the accident could have been avoided if Shell had done a proper repair
of a pipe. It went on to say The victims, Keith Moncrieff and Sean
McCue, died from a huge gas escape from an illegal repair to a corroded
pipe when they descended into the con-
crete leg of the platform to make an in-
spection. Shell was said to have ac-
cepted the inquiry findings. The
Times article pointed out that Bill
Campbell, a former Shell engineer,
had come forward with details of a
platform safety maintenance re-
view carried in 1999 on the Brent
Bravo platform. It said that Camp-
bells audit team found widespread
violations of safety procedures and al-
leged falsification of records. The arti-
cle revealed thatMr Campbell, who
retired from Shell in 2002, believes
that the Brent Bravo deaths could have
been prevented had the company re-
sponded adequately to his finding that
platform maintenance was being de-
layed to sustain oil and gas output. He
tried to put his evidence to the inquiry,
but the presiding sheriff declined to ad-
mit it on the ground that it was be-
yond the inquirys scope. Shell was
quoted as accepting the 1999 audits findings, saying that it re-
sponded with improvements. However Shell insisted that there
57was no verifiable evidence of falsification by platform manage-
ment as Campbell had alleged.
Allegations made by Bill Campbell,
former HSE Group Auditor of Shell
International
In June and July 2006, over a dozen arti-
cles were published by the news media
revealing serious allegations by Bill
Campbell, a former Shell International
Group Auditor, whose name, as a re-
sult, is now inextricably linked with the
Brent Bravo story.
Campbells allegations were the subject
of a programme broadcast by BBC Scot-
land’s investigative current affairs BBC
1 TV programme Frontline Scotland in
a feature entitled: The Human Price of
Oil. An article relating to the pro-
gramme was published by BBC News
under the headline Shell ignored acci-
dent warning, one of a number of BBC
news reports on the subject. The Guard-
ian newspaper published three articles,
the first with the headline Shell accused
over oil rig safety; the second entitled
Call for inquiry into oil rig safety regu-
lator and the third Shell confesses to
poor North Sea safety record and pledges reform. A series of arti-
cles was also published by Upstream Online a respected weekly pe-
troleum industry publication which also operates a related petro-
leum news website.
One of the most astonishing allegations
was that “top directors of Shell Expro in
Aberdeen, the UK arm of the Anglo-Dutch
group, allegedly sanctioned a policy widely
known as Touch Fuck All (TFA) whereby
offshore installation managers were told to
stop any work with the potential to cause
unplanned shutdowns”. The following
paragraph is also taken from the same
article by UpstreamOnline entitled
“Shell in the safety firing line”.
“The allegations levelled by Campbell
against Malcolm Brinded, Shells group
chief executive for global E&P, who was in
charge of the UK business at the time, and
his oil director Chris Finlayson, who is
now country president of Shell Russia,
claim the two men ran an operation where
production took priority over safety con-
cerns”.
Shell was quoted as rejecting Camp-
bell’s charges. Shell said “The allegation
regarding operating with high-risk levels is
untrue and we absolutely refute this.
Safety is and will remain our first priority offshore”.
58On 31 August 2007, The Guardian newspaper published an article
profiling Jeroen van der Veer, the Chief Executive of Royal Dutch
Shell Plc. The article by Guardian journalist Terry Macalister stated
in reference to Van der Veer: “He also makes clear he was hurt by the
coverage of another fiasco – when a Shell consultant, Bill Campbell, blew
the whistle on safety breaches in the North Sea.”
Concerns expressed by
Bill Campbell
On 1 September 2007,
The Daily Mail newspa-
per published an article
about a safety campaign
conducted jointly by Bill
Campbell and the web-
site
royaldutchshellplc.com.
The article said: ROYAL
Dutch Shell is getting rat-
tled by a gripe site that al-
leges there are safety prob-
lems with its North Sea oil
platforms.” The article
revealed An internal Shell email admits the firm has been thrown on the
back foot because of claims put forward on the Royaldutchshellplc.com
website. It went on to say Campbell has emailed hundreds of MPs alleg-
ing Shell has not yet properly tackled health and safety failings. The arti-
cle featured a number of quotes from Shell internal emails reveal-
ing a state of uncertainty at Shell about how to deal with the allega-
tions. One stated: As it stands were on the back foot and our aim should
be to develop a strategy (or options) that puts us in a more positive and
secure position.
In his letter to MP’s, Campbell stated: “I am a former Group Auditor
of Shell International. I am writing to you on a matter of conscience in an
effort to avert the inevitability of another major accident in the North
Sea“.
In response to the alle-
gations, a Royal Dutch
Shell spokesman was
quoted in the Daily
Mail article as saying:
Safety is Shells foremost
priority at all times. Shell
strongly disputes any sug-
gestion that we would
compromise safety off-
shore. No fatalities are ac-
ceptable.
The Daily Telegraph
published an article on
Saturday, 9 September
2007 with the headline: Pressure on Shell over safety of platforms.
It said: Royal Dutch Shell is facing a growing campaign about alleged
poor safety on several North Sea oil platforms, with Britains biggest trade
union and a former executive of the company calling on MPs and the
Health and Safety Executive (HSE) to investigate. It went on to say“Mr
Campbell, who has teamed up with a website that has been highly critical
of Shell, appears to be of increasing concern to the company.”
59Offshore unions voice safety concerns over pending sale of Shell
North Sea assets
On 6 September 2007, BBC News re-
ported that Two offshore unions have
called on the Health and Safety Execu-
tive to investigate Shell’s operations in
the North Sea. The unions were seek-
ing reassurances over worker safety.
They claimed Morale is also at an all-
time low and the departure of several
key personnel has created gaps in safety
critical positions… The concerns stem
from the pending sale of some Shell
North Sea assets. The unions said
that following Shells announcement
that the installations were for being
put up sale communications between
the company and the offshore workforce
had deteriorated to the point it was im-
pacting on operational safety.
An article also published on 6 Sep-
tember 2007 by The Aberdeen Press
& Journal, stated Graham Tran, re-
gional officer with the Unite unions
Amicus section, and the OILCs Jake
Molloy, say there are gaps in safety-
critical positions on Shell installations which are up for sale. The article
went on to say A joint statement from the unions says morale on the
Shell installations is at an all-time low and that several key workers have
left the company in disgust at the treatment they have received.
On 4 October 2007 Christopher Hopson of UpstreamOnline,
the leading oil industry publication,
reported on high level talks between
the UK’sHealth & Safety Executive
(HSE) and Shell in relation to com-
plaints by off shore worker unions
over important safety issues. The ar-
ticle said that sources who attended
the HSE meeting with management
and staff on Cormorant Alpha re-
vealed that the safety watchdog dis-
covered a number of serious prob-
lems in the way the installation was
being operated. According to the Up-
streamOnline article, Jake Molloy,
the general secretary of OILC,
claimed his members on Cormorant
Alpha“believed the validity of their
complaints had been upheld and were
awaiting the final HSE report to con-
firm this was the case.”
60Oil majors send safety chiefs to summit as criticisms mount
On 30 July 2007, The Wall Street Journal published an article under
the headline: “Safety Czar for Shell“.
Extract:
Shell appointed a global safety ex-
ecutive, after suffering 37 fatali-
ties in 2006, more than double the
number had by its major competi-
tors. Kieron McFadyen, a 20-year
company veteran, was appointed
to instill safety standards and as-
sess risk, especially for remote loca-
tions, where the majority of fatali-
ties occurred.
On 14 September 2007, The In-
dependent newspaper reported
in an article headlined “Oil ma-
jors send safety chiefs to sum-
mit as criticisms mount” that
ing concern among oil company executives “that a series of disasters
and safety failures is jeopardising their reputation and damaging business
prospects.” Shell was said to be sending its head of safety, Kieron
McFadyen, to the safety summit.
“Senior directors from the world’s
largest oil companies have agreed
to attend a summit meeting next
month in order to discuss working
together to tackle health and safety
issues.” The article went on to say that “Heads of safety from oil ma-
jors includingBP, Shell and Total will meet together for the first time in
order to agree a joint approach to improving the industry’s safety record.”
According to the article the “summit meeting” results from increas-
Health and Safety Executive
partially uphold claims about
Shell safety
On 8 November 2007, BBC
News reported that The Health
and Safety Executive (HSE) has
partially upheld claims that Shell
was not doing enough to ensure
safety offshore and that Shell has
taken action to address the mat-
ters. The article said that the
offshore unions Unite Amicus
and OILC had asked the HSE
to investigate claims from their
members which focused on
manning levels and the atti-
tude of platform management.
The article went on to say: The
investigation concluded that as-
pects of the complaint were justi-
fied. Graham Tran, an official of
the Unite Amicus Union was quoted as saying he believed Shell
should leave the North Sea as it has no credibility. Shell said the
company was fully co-operating with the HSE and that it contin-
ues to keep its staff and the HSE informed.
61Under the headline More safety breaches found on Shell’s North
Sea rigs, The Guardian newspaper reported on the same day, 8 No-
vember 2007, that Shell has once again been rapped over the knuckles by
the Health and Safety Executive for safety problems on its North Sea plat-
forms despite pledges from chief executive Jeroen van der Veer that he was
determined to change the cul-
ture after problems in the past.
The HSE confirmed that it
had upheld complaints
about staff levels and opera-
tional procedures on five
platforms, including Cormo-
rant Alpha and Dunlin Al-
pha, and asked Shell to take
immediate action. The article
went on to say: Shell, which
earned £1.5m an hour last year,
has been through a torrid time
over North Sea safety since one
of its own most experienced in-
spectors, Bill Campbell, blew
the whistle on his employer
claiming that safety procedures
were being repeatedly ignored
on some platforms. Shell said
it would not comment in-depth on the HSE statement saying that
an investigation was continuing. Shell pledged to fully co-operate
with the HSE and keep Shell staff informed. The article ended with
forthright comments attributed to Gran Tran of the Unite Union ex-
pressing fears for the ongoing safety of the workforce on the plat-
forms.
On 22 November 2007, the Guardian newspaper published a fur-
ther article, this time under the headline: More than half of North
Sea oil rigs fail safety checks. It stated that The safety regime at Brit-
ain’s North Sea oil operators
was condemned yesterday in a
report by the Health and Safety
Executive. According to the
HSE report, which was
based on a study covering
nearly 100 North Sea rigs
and platforms, inspections
had revealed almost 60%
had problems that oil compa-
nies should have addressed.
The article said Shell is one of
those that has been handed a
large number of HSE improve-
ment notices in recent years
and been criticised by its own
workforce, although the group
itself denies that safety is not
top of its agenda. The HSE re-
port was also covered in a
Daily Telegraph article published on 23 November 2007, head-
lined: HSE sounds alarm over rigs
62February 2008 allegations of safety concerns over Shell North
Sea rigs
On Friday 1 February 2008, Channel 4
News led its flagship evening news pro-
gramme with a 7 minute package enti-
tled: Shell North Sea safety concerns. An
article on its website, where a video clip
of the TV news report can be viewed,
said: Shell is Britain’s highest ever earning
company, announcing profits of £13.9b, but
the oil giant is being accused by its workforce
of “a severe lack of commitment to safety”.
The package contained allegations from a
Royal Dutch Shell insider alleging critical
safety systems on one platform were not
working properly and that the safety cul-
ture at Shell has shifted from ‘doing the
right thing’ to ‘mend and make do’. The pre-
senter Jon Snow said that although Shell
had declined an invitation for an inter-
view, the company had insisted the
claims were unfounded and safety is its
top priority.
On 4 February 2008, The Sunday Tele-
graph published an article by Russell Hot-
ten entitled Shell rejects North Sea rig
safety fears. According to the article:
Safety conditions on Shell’s five oil platforms
in the North Sea have been called into question
amid a row over alleged industrial gangsterism and claims that a man-
ager in charge of the rigs believes the backlog
of maintenance has reached “appalling lev-
els”. The newspaper said that it had seen
a leaked email in which a manager said
“Backlog on safety critical systems is at ap-
palling levels by any standard and is an issue
with the HSE.” The manager warned that
the HSE could close the operations. Jake
Molloy, the general secretary of the OILC
Union claimed it was an admission by
Shell that standards on the platforms
were poor. He called on the company to
put some of its record profits into improv-
ing things. Shell said in response: “Safety
is our top priority. Two years ago Shell
started a $1.2bn asset integrity programme.
It is approximately 70 per cent complete.
Shell is further quoted as saying “A num-
ber of allegations have been made by unions
and staff regarding safety since an announce-
ment on June 14 2007 of plans to offer these
assets to potential purchasers. These allega-
tions have been investigated by the HSE and
a number of issues have been worked on. How-
ever, the HSE has seen no need to either seize
any production or to serve any improvement
notices.”
63On 17 February 2008, the Glasgow Sunday Mail (Scotland) pub-
lished an article by Kurt Bayer headlined Shell Shock. The same
email from The Sunday Telegraph article was quoted, including
the part saying “Backlog on safety critical systems is at appalling lev-
els… The article said that the man-
ager who sent it, but denies using
the term appalling, seems frantic
about a backlog of safety work and
terrified of action by Government
watchdogs. It was described as a
foul-mouthed email demanding
the workers do overtime to tackle
a safety crisis. Graham Tran of
Unite Union, was quoted as say-
ing: “Every time I get a call from
Shell I dread somebody is going to
tell me there has been a major acci-
dent. The situation has become a tick-
ing time bomb, an accident waiting
to happen. A Shell spokesman
maintained: “Safety is our top prior-
ity.”
Shell admits blame for near dis-
aster at Merseyside Refinery
On 23 February 2008 The Liver-
pool Post published an article under the headline: Shell admits
blame for near disaster at Stanlow. It reported that OIL giant Shell
has admitted blame for a potentially lethal gas leak at a Merseyside refin-
ery and said that Shell had pleaded guilty on 22 February 2008 at
Chester Crown Court to charges that for several years in the run
up to the incident in May 2003, it had failed to comply with regula-
tions covering control of major accident hazards. The article stated:
The energy company has admitted blame for allowing a safety pipe to cor-
rode so badly that it split wide open.
Although no-one was injured Judge
Roger Dutton was advised that if it
had exploded, there would have been
multiple casualties. Simon Parring-
ton, prosecuting for the Health
and Safety Executive was quoted
as saying: The escape of gas was
caused by Shells failure to properly
inspect and maintain the pipe. The
issue we are concerned with is the
toxicity of the gas. It is lethal and
could have caused many fatalities.
Mr Parrington stated in court that
if, by chance, the jet of toxic gas
leaked from the bottom instead of the
top of the pipe, it could have sparked
a chain of events leading to death
and the destruction of key sections of
the plant. He said that the six-inch
pipe in question had been ne-
glected for years. Mr Parrington
made the point: This is a company
which has posted £13.7bn in profits and it has huge resources at its dis-
posal. Graham Wells, acting for the defendant Shell UK, disputed
the exact cause of the corrosion inside the pipe but conceded: The
64defendant accepts this was a serious matter. The process is one which uses
hazardous chemicals and the escape happened because the pipe was cor-
roded. Pipes should not corrode and this is the basis of the guilty plea.
Yuri Sebregts, the General Manager of the Stanlow plant, was
quoted as saying: We responded quickly after the event and since then
we have co-operated fully with the HSE in their investigation. Changes
have been made to the plant
and procedures to ensure the
problem will not re-occur.
The Judge adjourned the
hearing for sentencing at
a later date. A report of
the same news story by
The Yorkshire Post on 22
February 2008 – Oil giant
Shell admits blame for
leak of deadly substances
at site – stated that: A HSE
poor North Sea safety record after fresh revelations showed it has been by
far the worst performer in the play, receiving six out of a total of 18 legal
notices issued by the UKs Health &Safety Executive (HSE) over a two-
and-a-half year period. The article revealed that Shell had received
more notices than any other operator working in the UK North
Sea. The disclosures emerged after a Channel 4 TV News report
about serious safety fail-
ings on Brent Bravo fol-
lowing an inspection of
the platform carried out
by the HSE in 2005. Shell
was quoted as saying: On
our platforms we employ
systems under which our
people inspect and maintain
safety critical equipment.
Our goal is 100% compli-
ance on planned corrective
safety critical maintenance
on all our platforms.
inspection of the entire Stan-
low site after the incident
found no further cause for
concern.
Shell safety critical is-
sues raised in March
2008
On 14 March 2008, UpstreamOnline published an article under the
headline: Pressure rises on Shell. The article by Christopher Hop-
son said that Shell is still feeling the heat from its Brent Bravo safety
record and reported Shell is under mounting pressure to explain its
65In a separate article headlined Lifeboats trouble at Brent field also
published on 14 March 2008, UpstreamOnline revealed SHELLs
safety record on its Brent Bravo platform in the UK Northern North Sea
is once again under scrutiny after the discovery of technical problems
with two lifeboats on the installation that resulted in both of them being
removed from service. Jake Molloy, general secretary of the Offshore
Industry Liaison Committee was quoted in the article by Christo-
pher Hopson as claiming If they had loaded up this particular lifeboat,
the chances are
it could have
been launched
into the sea in
an uncon-
trolled fashion
which would
have caused
death or in-
jury as it was
held in place
by corrosion
and not by the
designed sys-
tem. The article said that problems had been found with a second
lifeboat on the Brent Bravo platform. It also reported that a lifeboat
had launched itself into the sea from Shells Tern platform because
the brakes and clutches were dysfunctional and had damaged the
launch mechanism off the platform. Shell confirmed problems had
been discovered with two lifeboats on Brent Bravo during routine
maintenance. Shell was quoted as stating that it viewed the matter
seriously and had mobilised an investigation team on the platform.
66Houston firms facing pipeline fines, penal-
ties: Friday 29 June 2001
EXTRACTS
And Houston-based Equilon Pipeline Co.
was slapped last week with $10 million in
state and federal environmental fines for
the 1999 rupture of a gasoline pipeline in
Bellingham, Wash., resulting in three fatali-
ties.
Equilon also faces a $3 million fine issued
last year by the DOT — the largest penalty
ever proposed against a pipeline operator
in the history of the federal pipeline safety
program. The El Paso penalty is the largest
ever proposed against a natural gas pipe-
line operator.
Equilon, a joint venture of Texaco and
Royal Dutch/Shell, was majority owner of
Olympic Pipeline Co, operator of the Bel-
lingham pipeline at the time of the acci-
dent. Since then, BP has taken control of
Olympic Pipeline.
Both El Paso and Equilon were charged
with violating numerous safety require-
ments in the operation of their respective
pipelines.
Equilon told the state it was not operating
the pipeline at the time of the rupture but
had simply loaned Olympic several em-
ployees, including Equilon’s president,
three vice presidents and the head of envi-
ronmental compliance.
67Reuters: Shell Washington refinery cited for safety violations: 25
June 2008
HOUSTON, June 25 (Reuters) –
Washington state’s Department
of Labor & Industries said on
Wednesday it found 23 serious
safety and health violations at
Shell Oil Co’s 145,000 barrel per
day (bpd) refinery in Ana-
cortes, Washington.
Shell said it was weighing a
possible appeal of the agency’s
citation, which could lead to
fines totaling $109,600.
Among the serious violations
found at the Shell Anacortes re-
finery were failures to identify
and control hazards that could
lead to releases of highly haz-
ardous chemicals and deficien-
cies in the development of me-
chanical integrity programs,
the Labor & Industries Depart-
ment said.
68Seattle Times: Safety violations to cost Shell: 26 June 2008
Washington’s Department of Labor and Industries on Wednesday
fined Shell Oil $109,600 for multiple safety violations in its Ana-
cortes refinery.
The refinery, the second larg-
est of the four major facili-
ties that supply the Puget
Sound region with gasoline
and other petroleum prod-
ucts, was cited for 23 viola-
tions ranging from inade-
quately instructing opera-
tors on how to deal with
emergencies to faulty inspec-
tions.
Shell, a unit of Anglo-Dutch
oil conglomerate Royal
Dutch Shell, is reviewing
the citation, said Shell
spokesman Brian Sibley.
Shutting down the opera-
tion is “highly unlikely,” he
said.
Royal Dutch Shell PLC is heading up a test venture in Hawaii to
turn oil-rich algae into fuel. If the process is found commercially
viable, the Anglo-Dutch conglomerate could build algae-
processing plants elsewhere.
69Bloomberg: Nigerian Oil Pipe Fire Extinguished, 6 Workers Died,
Shell Says: 17 November 2008
BBC News: Gas firms fined over worker death: 26 November 2008
(Both Shell and AMEC admitted breaching health and safety rules
and were each fined £150,000
plus £41,500 in costs at Norwich
Crown Court.)
FT article: Shell deaths higher
than other western groups: 30
November 2008 (Royal Dutch
Shell last year suffered more
workforce deaths than any other
large western oil company, with
a rate of fatalities twice as high
as BPs.)
upstreamonline: Shell death toll
‘higher than peers’ : 01 Decem-
ber 2008 (Last week Shell and
service player Amec were each
fined £150,000 ($230,000) after an
Amec worker died during opera-
tions at Clipper.)
The Times-Picayune: Last week-
end’s helicopter crash shakes up
offshore workers: 10 January 2009
Reuters: Shell gets tough on costs as oil prices bite: 30 January 2009
(Royal Dutch Shell has intensified its cost-cutting efforts in re-
sponse to the collapse in oil prices and also plans to step up efforts
to improve what it said was a “mixed” safety record. Brinded said
Shell had a dreadful start to this year after 10 contractors and one
third party were killed in three
incidents. )
Reuters: Oil industry cost, job
cuts may hit safety, skills: 3 Feb-
ruary 2009
The Herald: They know what
they have to do: launch the life
rafts and get out‘: 19 February
2009
(In July 2002, a Sikorsky S76 heli-
copter was ferrying personnel
between a platform and a drill-
ing rig, both owned by Shell,
when it ditched about 25 miles
north-east of Great Yarmouth,
killing all 11 on board. It is un-
derstood the aircraft remained
afloat after ditching. In March
1991, six men were killed when
a Sikorsky S61N struck a crane
on a Shell oil platform and
plunged into the sea 116 miles east of Lerwick in Shetland.)
The Press and Journal: Alarm over hundreds of offshore incidents:
4 March 2009
70The Sunday Times: Oil rigs plagued by safety lapses: 12 April 2009
London Fire Brigade: Shell fined record sum for fire safety
breaches: 2 June 2009
The Guardian: Shell fined £300,000
over fire safety breaches: 3 June 2009
Shell slammed on safety: 21 May
2011: upstreamonline
Extract
The HSE has told Shell to submit a
revised safety case for the Brent Char-
lie platform after gas was detected on
its topsides following leaks on 12
January this year and 27 September
2010, Upstream can reveal.
Norway Raps Shell for Risking Oil
Leak: 23 May 2011: The Wall Street
Journal
Extract
LONDON Royal Dutch Shell PLC
has been rapped by Norways Petro-
leum Safety Authority for a mainte-
nance error on an oil well that had
major accident potential and risked an
oil leak.
The failure of all barriers to hydrocarbon flow from a well is very
serious. An out-of-control well caused the explosion that destroyed
the Deepwater Horizon drilling rig last year, resulting in a three-
month oil spill from a BP PLC well in
the Gulf of Mexico.
Shell slammed for serious safety
slips: 23 May 2011: upstreamonline
Extract
Anglo-Dutch supermajor Shell has
been hit with a safety order from the
Norwegian authorities following an
investigation into a well incident on
the Draugen platform in December
last year. The incident occurred dur-
ing a wireline operation to replace a
gas lift valve in well 6407/9-A-01.
The operation resulted in the subsur-
face safety valve becoming stuck in
the Xmas tree, blocking the upper
mast valve, and leaving only one bar-
rier against a potential leak.
71Shell ignored safety warnings before Bacton explosion: 16 June
2011: BBC News
Extract
The company has admitted seven safety
and pollution offences following the ex-
plosion and fire at the Bacton terminal in
Norfolk.
Gas terminal blast: Shell fined £1m plus
£240,000 costs: 20 June 2011
Extracts
Shell UK has been fined £1m plus
£240,000 costs after an explosion at a gas
terminal in Norfolk in 2008.
The company admitted seven safety and
pollution offences following the explo-
sion and fire at the Bacton terminal.
Ipswich Crown Court heard the company
ignored warnings from staff before the ex-
plosion.
Shell ordered to pay $2 million for UK
gas fire: 20 June 2011 Reuters
Extract
(Reuters) A British court ordered Royal
Dutch Shells UK unit to pay 1.242 million
pounds ($2 million) in fines and legal costs for a fire at its Bacton
gas terminal in 2008 which cut more than
a tenth of UK gas supply.
A leak of highly flammable hydrocarbon
liquid caused the explosion and fire at a
waste water plant in which nobody was
killed or seriously injured only by good
fortune, according to Britains Health and
Safety Executive (HSE).
British court fines Shell UK 1.2 million
pounds ($2M) over blast in 2008 at
coastal terminal: 20 June 2011: The Wash-
ington Post
Extract
Judge Martin Binning said Monday that
workers had warned Shell many times
about dangerous conditions at the plant
in Bacton, on the Norfolk coast 125 miles
(200 km) northeast of London.
Shell UK sentenced over Norfolk gas
blast: 20 June 2011: UK Health & Safety
Executive
Extract
The explosion blew the concrete roof off a
buffering tank within the plant, hurling
concrete and metal debris over a large
72area and sucking a nearby drain out of the ground. After investigat-
ing the incident HSE and Environment Agency (EA) jointly prose-
cuted the firm over safety, environ-
mental control and pollution-
prevention failures at the plant leading
to the explosion.
Oil and gas spills in North Sea every
week, papers reveal: 5 July 2011: The
Guardian
Extract
Shell has emerged as one of the top of-
fenders despite promising to clean up
its act five years ago after a large acci-
dent in which two oil workers died.
clined to give details of the safety issues it was concerned about for
legal reasons.
HSE feared a catastrophe at Brent C
platform: 9 August 2011: upsteamon-
Shell platform to shut down amid con-
tinuing concerns about safety: 6 July
2011 The Shetland Times
Extracts
The Shell-operated Brent Charlie plat-
form 125 miles north-east of Lerwick is
to shut down from next Friday on the
orders of oil industry regulators amid
continuing concerns about safety.
But now the Health and Safety Execu-
tive (HSE) has served Shell with a
legally-enforceable prohibition notice which means the operator
will have to cease production entirely. An HSE spokesman de-
line
The UK Health & Safety Executive
(HSE) feared catastrophic conse-
quences on Shells Brent Charlie plat-
form because the scale of a long-
running series of gas leaks meant igni-
tion was almost inevitable, documents
reveal.
Revealed: Shells poor safety record in
the UK: 21 August 2011: Sunday Her-
ald Scotland
Dixon called for Shells North Sea op-
erations to be restricted until a full and
independent audit of all its facilities
had been carried out. Shells poor re-
gard for safety and their terrible com-
munications over the last 10 days
should be ringing major alarm bells
Shell had oil rig safety warning: The
Sunday Times: Scotland. 21 August
2011
AN internal investigation by Shell eight years ago raised serious
concerns about safety in the Gannet oilfield, where the company
73has been battling to contain the worst spill in British waters for a
decade. Documents obtained by The Sunday Times reveal that doz-
ens of unauthorised repairs were carried out on Shell’s Gannet Al-
pha platform.
Warning North Sea oil platforms
could be near collapse: STV News 5
September 2011
Former Shell chairman James Smith
to lead deregulation of UK oil and
gas industry: Daily Telegraph 7
Sept 2011
The minister has written to “stake-
holders” in the oil industry urging
them to contribute their thoughts,
while promising that current stan-
dards would not be lost. However,
his comments may cause alarm
among those who have pressed for
tighter regulation in the wake of re-
cent North Sea problems such as
Shell’s pipeline leak and concerns
from the Health and Safety Execu-
tive about platform corrosion.
SCOTTISH OIL RIGS IN DIRE
domain data there were 85 gas releases and 443 dangerous occur-
rences last year. If you are getting 85 gas leaks thats one and a half,
or two, leaks a week. The probability of an undesirable event is
very high.
HSE Letter to Shell 18 July 2011
External links
■HSE website
■HSE news service website
■HSL website
STRAITS: Sunday Express article 11
Sept 2011
Mr Campbell insisted it is only a matter of time before there is an-
other major tragedy in the North Sea. He said: According to public
74CHAPTER 5
Royal Dutch Shell initiatives
It is not all a bad news story. Royal Dutch Shell has been responsible for many important initiatives in
relationship to the environment, encouraging business start-ups, supporting charitable causes and
other good works. Shell has also had a long successful relationship with Ferrari.
75Royal Dutch Shell is responsible for many important initiatives in
relationship to the environment, encouraging business start-ups,
supporting charitable causes and other good works. With regard to
the environment, Shell has however
been accused of “greenwash“, be-
traying new energy future prom-
ises, and in March 2009, announced
its intention to abandon wind, solar
ria, Libya, Pakistan, the Netherlands and Singapore. Shell Live-
WIRE International operates a social networking website for par-
ticipants.
and hydro power in favour of biofu-
els.
Shell Springboard
Shell Springboard was launched in
October 2005, offering small and
medium sized businesses cash
awards of up to £40,000 for innova-
tive ideas designed to combat cli-
mate change by reducing green-
house emissions. In October 2006,
a Financial Times article on climate
The Shell Foundation
The Shell Foundation launched in
1997, is a worldwide, social invest-
ment initiative to concentrate on
working with external partners to
promote sustainable development .
It is an independent registered char-
ity which has three Shell executives
on its board balanced by an equal
number of independent non-
executive directors, in line with
UK Charity Commission rules.
Shell LiveWIRE
Shell LiveWIRE is a global youth
enterprise programme designed to
encourage and support individuals in the 16 to 30 year old age
group to launch and develop their own businesses. The scheme is
operational in 23 countries including the UK, Brazil, Nige-
change opportunities discussed a
report published by Shell Spring-
board concerning issues involved
in the quest to stabilise atmos-
pheric greenhouse gases. Winners
in the Shell Springboard competi-
tion also benefit from “expert ad-
vice, coaching and publicity.”
Renewable energy project in Ha-
waii
Hawaii is “quietly morphing into
one of the world’s leading incuba-
tors of alternative energy“ due in
part to Royal Dutch Shell’s pilot scheme in Hawaii, which has the
objective of turning oil-rich algae into fuel on a commercial basis. If
76proved viable, Shell may build algae processing plants in other lo-
cations.
In March 2009, a small local firm backed by Shell, HR Biopetro-
leum, supplied the first batch of a locally made oil to the U.S. gov-
ernment for testing as aviation fuel. According to a related
article: “The technology to convert
algae into usable fuel on a large scale
is still at least a decade away, and it is
unclear if it will ever be practical on a
large scale.” However, apparently
undaunted by the challenge, Shell
says that if HR Biopetroleum man-
ages to perfect the algae-to-oil
process, it will fund an industrial
plant on 20,000 hectares of coastal
land unsuitable for farming. The
facility would be built by “Cel-
lana”, the Shell-HR
Biopetroleum joint venture com-
pany.
Gas to liquids project in Qatar
Shell’s largest single investment,
at a reported cost of $18 billion, is
a gas-to-liquids project in Qatar known as Pearl GTL. The gas to liq-
uids process converts natural gas into a clean-burn synthetic diesel
fuel. An article about the project published in February 2009 said
that the technology is untested and involves huge risks. Pearl GTL
is due to become operational towards the end of 2010.
Helping U.S. Gulf Coast communities recover from natural catas-
trophe
Some 70% of Shell’s oil and gas production reportedly takes place
off the U.S. Gulf Coast of the Gulf of Mexico. Shell has been instru-
mental in activities to revive the region in the wake of Hurricane
Katrina and Hurricane Rita. In
2006 Shell sponsored the New Or-
leans Jazz & Heritage Festival,
which Shell claims resulted in
$250 million of economic activity.
According to Business Week maga-
zine, Shell donated $750,000 to as-
sist police officers and volunteers
to obtain housing accommoda-
tion. Shell gave its employees up
to “$1,000 apiece to support neigh-
borhood rebuilding and recovery
efforts.” Shell Oil Company in con-
junction with Motiva Enterprises
LLC, contributed $4 million for
long-term recovery followingHur-
ricane Gustavand Hurricane Ike
which both subsequently also hit
the Gulf Coast. The American Red
Cross received a $1 million dona-
tion and the Salvation Army and Gulf Coast Relief Fund were
among the other beneficiaries. Shell and Motivia also provided fuel
to emergency response organisations. Shell employees staffed pub-
lic shelters, local food banks and assisted local emergency manage-
77ment organisations. Motiva Enterprises LLC is a refining and mar-
keting joint venture owned by affiliates of Shell and Saudi Aramco.
Shell support for the Salvation Army and United Way of Amer-
ica
Shell Oil Company has supported the United Way of America for
60 years and in the last 20 years, contributed more than $111 mil-
lion to the organisa-
tion. According to an
article published in
October 2008, “Shell
and Motivas United
Way campaign is an
employee/retiree pro-
gram providing indi-
viduals the opportu-
nity make monetary
and/or sweat equity
donations to the
United Way of
Greater
Houston.”Employees
are given time off dur-
ing normal working hours to participate on a voluntary basis in
outreach efforts. In October 2008, over 100 Shell and Motiva volun-
teers carried out a range of refurbishment work at the Houston Sal-
vation Army Boys’ and Girls’ Club. On 18 November 2008, Shell
Oil Company launched a promotion involving three of its major
U.S. oil brands, Pennzoil, Quaker State and Shell Rotella, to raise
funds for the Salvation Army through a cash rebate promotion
called “Change is Good, Giving is Better”. The promotion com-
menced with a donation of $100,000 as an initial step towards the
goal of raising $300,000.
Shell support for Hope Worldwide, an international humanitar-
ian organisation
In January 2009, 500 holiday workers from Shell Oil Company and
Motiva Enterprises
volunteered their
time to sort and
packed groceries at
the Houston Food
Bank as part of the-
Martin Luther King
Jr. holiday activities.
Shell tree planting
initiatives in Canada
and USA
Tree Canada, a chari-
table organisation en-
couraging Canadians
to plant trees to help
offset the harmful effects of carbon dioxide emissions, presented
Shell Canada with an award in 2008 after Shell planted 1 million
trees in association with Tree Canada.
Shell has also donated funds to the Tree Canada British Columbia
Coast ReLeaf campaign to assist in replanting in locations dam-
aged by windstorms. Shell Canada has contributed more than
78$800,000 to Tree Canada including funding tree replanting in Al-
berta. Shell Oil Co., in association with the LA Conservation Corps
has been responsible for one of the largest tree-planting initiatives
in Southern California.
Shell Eco-marathon
The Shell Eco-Marathon is an
annual competition sponsored
by Shell, in which participants
design, build and test vehicles
to find out who can go the far-
thest distance using the least
fuel. The Eco-Marathon is held
around the world with events
in the UK, Finland, France, Hol-
land, Japan, and the USA. Over
300 North American students
from four high schools and 23u-
niversities participated in the
2008 Shell Eco-marathon Ameri-
cas. 25 vehicles powered by
various energy sources, includ-
ing internal combustion
engine, fuel-cell technology, so-
lar power, diesel engine and liq-
uid gas, competed. According to an articleon the auto123.com
website: “The event began as a wager between scientists. It was
first held in 1939 at a Shell research laboratory in the United States.
The best mileage achieved during that competition? 21 km/l!”
According to an article published by Fox Business News “The 2009
Shell Eco-marathon Americas roster contains 52 teams from nine
high schools and 32 universities from North and South America –
including Brazil, Canada, Mexico and the United States. The Proto-
type entries include 35 vehicles powered by combustion engines,
five by fuel cell/hydrogen technology, three by LPG, three by solar
power, two by diesel fuel, and
one by ethanol gas.” Market-
Watch reported: “The student
team from Laval University,
with an astonishing 2,757.1
miles per gallon, equivalent to
1,172.2 kilometres per liter,
won the grand prize in the
“Prototype” category.”
Shell scenario planning
In the 1970’s, the Shell Group
pioneered the commercial use
of “scenario planning” tech-
niques which involved the crea-
tion of an in-house think-tank
to predict potential future
events, challenge existing as-
sumptions and formulate strat-
egy. According to an article published in March 2009 :“The group,
as a result, was able to plan for shocks such as rapid escalation of
oil prices in the mid-1970s and the collapse of the Soviet bloc. Its
success helped to popularise the techniques at intelligence agencies
such as the CIA.”
79Shell donates US$5 million to Health Promotion Centre in
Brunei
Royal Dutch Shell donated US$5 million to a new Health Promo-
tion Centre in Brunei which was completed in October 2008 and
opened in November by His Majesty, the Sultan of Brunei. The first
of its kind in the Sultanate, it offers a wide range of “innovative
and interactive public
health education tools
and facilities”. The
Brunei Health Minister
was quoted in an article
as saying: “The Minis-
try of Health acknowl-
edges the crucial sup-
port from Royal Dutch
Shell and Brunei Shell
Petroleum for the
Health Promotion Cen-
tre”. The monarch was
shown around
the state-of-the-art fa-
cilities which include
sections covering physi-
cal activities, occupa-
tional health, tobacco control, weight management, nutrition
and hygiene.
Links to related articles are provided on the final pages of this chap-
ter.
80favour of biofuels”. The Guardian. Retrieved on 2009-04-20.
per Shellnews.net. Retrieved on 2009-04-20.
per Shellnews.net. Retrieved on 2009-04-20.
per Shellnews.net. Retrieved on 2009-04-16.
to paradise in search of cheap biofuel” author Danny Fortson
lined “A gamble in Qatar” author Guy Chazan
1 Pearce, Fred (2009-03-26). “Fred Pearce’s Greenwash: Exposing false
11 The Earth Times 18 September 2008 under the headline “Shell and
10 environmental claims”. The Guardian. Retrieved on 2009-04-20.
2 Webb, Tim (2009-03-17). “Shell dumps wind, solar and hydro power in
favour of biofuels”. The Guardian. Retrieved on 2009-04-20.
3 Moules, Jonathan (2008-08-09). “Business Briefing”. Financial Times
per Shellnews.net. Retrieved on 2009-04-20.
4 “Small Business Digest”. The Sunday Times. 2005-10-16. Retrieved on
2009-04-20.
5 No author (2006-10-26). “Climate change also brings
opportunities”. Financial Times per Shellnews.net. Retrieved on 2009-
04-20.
6 No author (2008-05-06). “Start-ups seek prize pay-off”. Financial Times
per Shellnews.net. Retrieved on 2009-04-20.
7 Carlton, Jim (2008-06-30). “Alternative State”. The Wall Street Journal
per Shellnews.net. Retrieved on 2009-04-16.
8 The Sunday Times 22 March 2009, under the headline “Shell goes
to paradise in search of cheap biofuel” author Danny Fortson
9 Wall Street Journal per Shellnews.net article 8 February 2009 head-
lined “A gamble in Qatar” author Guy Chazan
Business Week article 7 July 2008 headlined “Public-Private Alli-
ances to the Rescue” author Rachael King
12 13 14 15 16 17 18 19 20 21 Motiva Contribute $4 million to Recovery Efforts in the Gulf
Coast” no author name indicated
No author name (2008-09-25). “American Red Cross Receives $1 mil-
lion from Shell…”. Reuters. Retrieved on 2009-04-20.
Convenience Store News October 2008 under the headline “Shell,
Redner’s Market Give Back” no author name indicated
Reuters article dated 18 November 2008 headlined “The Salvation
Army Joins 3 Major Motor Oil Brands to Help Others During Holi-
day Season” no author name indicated
Houston Chronicle article 18 January 2009 headlined: “Volunteers
in Houston honoring MLK by helping out”. Author Allan Turner
From Tree Canada website page “History”. No author name.
Reuters article 2 October 2008 headlined: “Tree Canada Awards
Shell, TELUS and Lifford Wine Agency for Their Contributions to
the Environment”.No author name.
Shell Canada website page headed: “Shell and Tree Canada plant
more than 700,000 trees”. No author name.
Convenience Store News article headlined: “Shell Helps City Be-
come Green”. No author name.
auto123.com article dated 16 April 2008 headlined: “Students
break the mileage record set in 2007”. No author name.
auto123.com article 21 October 2008. No author name.
8122 No author name (2009-03-27). “This Spring”. Fox News per
Shellnews.net. Retrieved on 2009-04-18.
23 No author name (2009-04-19).
[http://www.shellnews.net/wikipedia/19April2009MarketWatch.pdf
“2,757.1 MPG Achieved at 2009 Shell Eco-marathon
24 Americas”]. MarketWatch per Shellnews.net. Retrieved on 2009-04-19.
25 Financial Times per Shellnews.net article dated 9 March 2009
headlined “Senior Lib Dems ‘auction for power’”. Author Alex
Barker.
26 Ishak, Amie PDH (2008-11-14). “Royal Check on Health
Centre”. Borneo Bulletin. Retrieved on 2009-04-17.
27 No author name (2008-11-14). “HM Visits State-Of-The-Art Health
Promotion Centre”. Borneo Bulletin. Retrieved on 2009-04-17.
82CHAPTER 6
Years out-of-date Wikipedia article: royaldutchshellplc.com
This chapter contains the content of the Wikipedia article royaldutchshellplc.com as it appeared on 30
April 2009. The Wikipedia article displayed at the time of publication of this ebook is a disgrace in
terms of censorship and being years out-of-date. As of 23 March 2017, my father was still shown as
being an operator of the website. In fact, he passed away in 2013, as reported in The Guardian.
83royaldutchshellplc.com is a gripe site operated by 92 year old Al-
fred Donovan and his 62 year old son John Donovan, which is criti-
cal of Royal Dutch Shell. On 11 June
2007, Ed Crooks of the Financial Times
described it as “an anti-Shell website
run by a father and son partnership
that has been a long-running thorn in
the companys side.” On 25 January
2008, Carl Mortished, World Business
Editor of The Times newspaper wrote
an article headlined: ”Shell chief fears
oil shortage in seven years” in which he
described the site as an independent
website that monitors the company.
During the course of a long feud be-
tween the Donovan’s and Shell, oil in-
dustry observers have speculated that
the Donovan’s thwarted a Shell Texaco
merger and cost Shell billions of
pounds sterling in respect of its
Sakhalin-2 project in Russia.
Background to legal battles with Shell
The Donovans owned a chain of petrol
stations in East London and Essex and
created many sales promotion cam-
paigns. In 1981, the Donovans devised
a promotional game scheme for Royal
Dutch Shell called Make Money. Be-
cause the promotion was successful, many other Shell promo-
tional campaigns followed, including a £4.5 million Mastermind
TV Series themed game; a scratch card game, “Shell Make
Merry“, offering £2.5 million in Har-
rods food prizes; a playing card
themed promotion, “Bruce’s Lucky
Deal”, endorsed by UK TV celebrity
Bruce Forsyth and in 1991, a £4.5 mil-
lion Every Card Can Win scratch card
game with a Star Trek theme.
In an article published by Marketing
Magazine in September 1986, under the
headline “Games people play“, Shell
was identified as “perhaps the biggest
user of games”. The article went on to
say in reference to Shell, “All its recent
games have involved Don Marketing”.
John Donovan was shown in a photo-
graph holding aloft posters for the
Shell Singapore Make Money game.
The business relationship which oper-
ated on an international basis, floun-
dered after Shell appointed a new Na-
tional Promotions manager in 1992 to
whom the Donovans promotional
ideas were disclosed on a confidential
basis. In 1994, the Donovans issued a
Writ against Shell in respect of a
follow-up Make Money promotion
claiming breach of confidence and
breach of contract. The Donovans ac-
cepted a £60,000 settlement but continued to pursue legal claims
84over a Shell Nintendo scratch off game and a film themed collector
game called Now Showing. The further Writ was issued in Octo-
ber 1994. Shell settled both claims in October 1996. During the
course of the litigation, the Donovans founded the Shell Corporate
Conscience Pressure Group and what may have been the worlds
first “gripe” websites. Shell referred to the Donovan’s internet activ-
ity in a [1] press statement issued on 17 March 1995.
An article published on
11 June 1998 by The
Daily Telegraph under
the headline of “Dono-
van’s beef with Shell
on-line” reported that
“Donovan is publicising
his gripes on two elabo-
rate and colourful inter-
net websites,
don-marketing.com
and
shell-
ened to sue any business which joined the SMART scheme and
also threatened related legal action against Shells UK petrol sta-
tions. According to a report in The Sunday Telegraph Shell Legal
Director, Richard Wiseman, denied allegations made by Donovan
against Shell and said that he was misguided and had been
wrongly encouraged by Shells previous payments. Donovan al-
leged that Shell had used an undercover agent, Christopher Phil-
lips, in the run up to the
trial. According to The
Sunday Telegraph re-
port Shells lawyers ad-
mitted that they hired
Mr Phillips, but only to
carry out routine credit
inquiries.[1]
An article published in
the July-August 1999
edition of “Incentive To-
day” under the head-
line “Don and Shell
shareholders.org”.
On 23 April 1998, Mar-
keting Week magazine
published an article un-
der the headline: “High Court papers unveil ‘secret’ Shell writ
losses.” Coverage spread over a number of pages detailed three
previous claims settled by Shell. In June 1999, a High Court trial
commenced in respect of the new claim by John Donovan against
Shell, this time relating to a loyalty programme utilising smart card
technology for a multi-retailer scheme by Shell. The legal costs
were estimated to be over a million pounds. Donovan also threat-
end Smart row” re-
ported that both parties
had issued a joint state-
ment announcing that
John Donovan had aban-
doned his claim against Shell. The article went on to discuss indus-
try speculation that the Donovan litigation had been a barrier to a
merger between Shell and Texaco. Shell had already signed a
‘Memorandum of Understanding‘ with Texaco but the merger
never took place and in October 2000, Texaco instead agreed to a
“$100 BILLION MERGER” with Chevron Corporation, one of
Shell’s rivals.
85According to an article published in February 2007 by Prospect
magazine referring to the same “Smart” settlement, “Shell agreed
to settle out of court, paying the Donovans a sum “in the thou-
sands” as part of a “peace treaty” stipulating that neither party
speak about the matter in future”. The article quotes Donovan as
alleging that Shell subsequently broke the “peace treaty”.[2]
Alfred Donovan and John Donovan are both retired from commer-
cial activities. Their former company, Don Market-
ing, ceased trading several years ago. Their web-
sites are all non-commercial; do not seek or ac-
cept donations, offer all services without charge,
and carry no advertising.
Appeals to Shell shareholders, Shell employees,
and the public
Royaldutchshellplc.com was described in an arti-
cle published in February 2007 by Prospect maga-
zine in the following terms: “The Donovan web-
site has become an open wound for Shell”. It has
been used to publish appeals on behalf of a num-
ber of parties who wanted to reach Shell share-
holders and/or Shell employees, or the public e.g.
■ An appeal for support by Friends of the Earth in the Nether-
lands was posted on the royaldutchshell.com website from 20
December 2006 for a campaign entitled shelladvert.org.[3]
Royaldutchshellplc.com is also used to publish information by the
National Union of Ogoni Students (NUOS) “an independent, non-
profit entity that functions as the students unit of the Movement
for the Survival of the Ogoni People (MOSOP).” A letter from
NUOS to President Olusegun Obasanjo of the Federal Republic of
Nigeria was published on 17 December 2006. It demanded that the
license granted Shell Oil to operate in Ogoni should be revoked.
The following is an extract from the letter “the worlds’ most impov-
erished people inhabiting one of the world’s wealthiest span of
land. This irony ridiculously fed by succeeding governments of Ni-
geria and Shell Oil Company is unacceptable.” [4] Shell has unsuc-
cessfully attempted to promote a reconciliation process with the
Ogoni which would allow Shell to recommence
oil production in Ogoniland.[5]
Connection with Shell Sakhalin-II project
Moves by the Russian government in relation to
environmental issues concerning the Royal Dutch
Shell led Sakhalin-II project in eastern Russia cre-
ated an international furor, with representations
made to President Vladimir Putin by Prime Min-
ister Tony Blair and many other heads of govern-
ment. On 18 October 2006, the Donovan’s pub-
lished an article confirming they had for some
time been supplying information to the Russian
government relating to Sakhalin II. Information
in the form of Shell internal emails and Shell insider comments,
posted on Royaldutchshellplc.com, were passed by the Donovan’s
to Oleg Mitvol, the Deputy Head of Rosprirodnadzor, the Russian
Environmental Agency.
In November 2006, Oleg Mitvol confirmed in an interview pub-
lished in This Week in Argus FSU Energy that the evidence on
which a prosecution against Sakhalin Energy claiming $10 billion
in damages was being mounted, was supplied by John Donovan of
86royaldutchshellplc.com. Mr Mitvol was quoted as saying: “Who
will take Sakhalin Energy to court? I will take them. I have docu-
ments proving that the Sakhalin Energy management was aware
that the company violated technical standards, but carried on try-
ing to meet project deadlines and refused to stop work. I am confi-
dent of winning my case in Stockholm. What documents are these?
Where are they from? I have email correspondence between execu-
tives in Sakhalin Energy management from 2002. I received these
letters from John Donovan, owner of the anti-Shell website
www.royaldutchshellplc.com.”[2]
The Russian energy company Gazprom controlled by the Russian
government subsequently
obtained a majority hold-
ing in the Sakhalin-II pro-
ject. A further report of
the supply of evidence by
John Donovan to Mitvol
was published on 13 No-
vember 2006 by John-
son’s Russia List sourced
Davis Center for Russian Studies at Harvard, the author of
“Petrostate: Putin, Power, and the New Russia.”
Sakhalin-II evidence submitted by the WWF to a House of Com-
mons Select Committee in June 2008
In 2008 the Worldwide Fund for Nature submitted evidence to the
Environmental Audit Select Committee of the House of Commons
of the United Kingdom. The published minutes of evidence in-
cluded reference to an article entitled: The Sakhalin-2 whistle-
blower warnings which proved to be 100% correct. The article
authored by John Donovan was published on the website
royaldutchshellplc.com
on 6 January 2006.
The evidence put before
the House of Commons
Select Committee by the
WWF in a Memorandum
from Interfax. According to an article published by
Upstreamonline.com on 20 March 2008, under the headline “Shell
reserves on a steady course”, Shell lost 402 boe – barrels of oil
equivalent – as a consequence of “the sale of half its stake in the
$20 billion Sakhalin 2 project”.
An article published by The Boston Globe on 23 August 2008 said
“Shell Oil was forced to yield control of its operations off Sakhalin
Island in exchange for a payment of $7.4 billion from state-
dominated Gazprom.” It went on to say “Most outside analysts es-
timate that Shell’s share was worth $15 billion to $17 billion.” The
article was written by Marshall I. Goldman, senior scholar at the
dated 20 June 2008 said:
Allegations have been
made by a whistleblower of inappropriate relationships between
SEIC management and its contractors, in particular Starstroi and
its subcontractor SU4. A link to the article in question (item 22) was
printed at the foot of the Memorandum.
A link to Annexe II was contained in the Minutes of Evidence relat-
ing to oral evidence taken by the Environmental Audit Committee
on 8 July 2008. Annexe II contained the same allegations with a
link to same article. The information and link was also published
as part of: “Uncorrected Evidence published by Hansard Ar-
chives Research House of Commons and House of Lords Publica-
tion Committees.”
87Recommended by Fortune magazine for information about
Royal Dutch Shell plc
On 2 August 2006,
CNNMoney.com pub-
lished a feature from For-
The article stated that “The memo was leaked to the website
www.royaldutchshellplc.com, which has long been a thorn in Shell
s side. Shell confirmed the e-mail was genuine but was reluctant to
discuss it further”. The article quoted extensively from the memo.
The entire content of the
leaked memo was pub-
lished by the FT on the
same date. The FT also
conducted a separate on-
line poll asking the ques-
tion: “Is this the worst
tune magazine recom-
mending books and web-
sites focused on the
world’s top five compa-
nies, as ranked in the
“Fortune Global 500”. A
company website with a
corresponding website
critical of the companys
activities was featured for each multinational. For Royal Dutch
Shell, listed as number 3 in the rankings, Shell’s portal website
shell.com was cited along with royaldutchshellplc.com
Financial Times
says website has
long been a thorn
in Shells side
On 6 June 2007,
the Financial Times published a front page article under the head-
line: “Pipeliners All! Shells memo to Sakhalin
The article was about a leaked motivational memo in the form of
an email from David Greer, the Deputy Chief Executive of Sakhalin
Energy, the company in which Shell is a shareholder and former
owner. The email was circulated to Sakhalin-2 staff.
motivational memo
ever?”
One passage in the moti-
vational memo was so
striking that Time Magazine published it in their Quotes of the
Day feature on 6 June 2007: “So Lead me, Follow me or Get out of
my way; Success is how we bounce when we are on the bottom”.
A keen eyed FT
reader noticed
that inspira-
tional passages
were appropri-
ated from a fa-
mous speech given by the legendary U.S. General George S Pat-
ton, on 5 June 1944 on the eve of D-Day the Sixth of June. On 7
June 2007, a quarter page follow-up article was published in the Fi-
nancial Times newspaper and on the FT.com website, under the
headline: “Sakhalin motivational memo borrows heavily from
Patton.
88On 9 June 2007, The Moscow Times published a front page article
under the heading: Sakhalin Pep Talk From ‘Old Blood and Guts’.
The article said: Greer’s memo, which was leaked to an anti-Shell
web site, Royaldutchshellplc.com, appears to show the pressure
that he and his fellow managers have been under, as it talks of “the
risk of becoming a team that doesn’t want to fight and lacks confi-
dence in its own ability.” The Moscow Times article contained
forthright comments by the Russian environmental watchdog,
Oleg Mitvol, about the email.
On Monday 11 June 2007, the Financial Times published a further
article on the subject this time
headlined: Motivational
memos must make their mes-
sage clear. One of the opening
paragraphs stated: The memo
(www.ft.com/shell) is crass,
poorly punctuated and most
of it wasn’t even written by its
author, David Greer, deputy
chief executive of Royal
Dutch Shell’s Sakhalin Energy
Investment Company. He had lifted the words of General George
S. Patton with no attribution, and clumsily adapted them to spur
on his team of recalcitrant pipeline engineers.
On Friday 22 June 2007, The Moscow Times published a front
page story with the headline: “Sakhalin Energy’s Greer Steps
Down”. The article revealed that “A motivational e-mail written by
Greer to staff working on the project, originally leaked to an anti-
Shell web site, Royaldutchshellplc.com, was the subject of a front-
page story in the Financial Times earlier this month.” It went on to
say “David Greer, the Sakhalin Energy deputy CEO running the gi-
ant Sakhalin-2 oil and gas project, has left the company unexpect-
edly just weeks after a leaked e-mail he wrote revealed the pres-
sure that managers working there were facing”. The article said
that Greer had been a 27-year Shell veteran and was leaving to pur-
sue other business interests.
A gripe site can have a profound impact on global organisations
An “Accountability in Action” [2] published in July 2007 by the
One World Trust, an independent research organisation associated
with the UK legislature and the United Nations, said: “As The
Royal Dutch Shell plc web-
site shows, a gripe site can
have a profound impact on
global organisations”. The
newsletter went on to say:
“The site has not only cost
Shell billions of dollars in
Russia… “even Shell insiders
unhappy with the company
use it”. The article also said:
“Royaldutchshellplc.com is
just one of many examples of how the Internet makes it possible
for concerned individuals to initiate discussion about global organi-
sations, post and share information about organisational actions
and their impact, and provide a common forum for affected stake-
holders. At the very least, gripe sites such as this have a valuable
watchdog function and remind global companies of the power of
public opinion thus forcing them to confront weaknesses in their
own accountability”. Email correspondence in August 2007 be-
tween Royal Dutch Shell Plc and the owners of the website provide
evidence of the unusual involvement by the website in the day-to-
day functioning of the company.
89Shell rattled and put on the back foot by joint Campbell/
Donovan safety campaign
On 1 September 2007, the Daily Mail newspaper published an arti-
cle about a Shell employee safety
campaign conducted jointly by
royaldutchshellplc.com and the
former Group Auditor of Shell In-
ternational, Mr Bill Campbell. The
article headlined “Shell on back-
Reuters describes royaldutchshellplc.com as “unofficial company
Web site”
On 4 September 2007, Reuters published an article by Tom Bergin
headlined: “Shell loses exec on
foot as ‘gripe site’ alleges safety
concerns” said: ROYAL Dutch
Shell is getting rattled by a gripe
site that alleges there are safety
problems with its North Sea oil
platforms.” The article revealed
An internal Shell email admits the
firm has been thrown on the back
foot because of claims put forward
on the Royaldutchshellplc.com
website.
It went on to say Campbell has
emailed hundreds of MPs alleging
Shell hasnt yet properly tackled
health and safety failings. The arti-
cle featured a number of quotes
from Shell internal emails reveal-
ing a state of uncertainty at Shell
about how to deal with the allega-
tions. One stated: As it stands were on the back foot and our aim
should be to develop a strategy (or options) that puts us in a more
positive and secure position.
troubled Kazakh project-source.”
The article said that a Royal Dutch
Shell Plc executive “working on
Kashagan, a project under pres-
sure from the Kazakh govern-
ment for being over budget and
behind schedule, has quit, com-
pany sources told an unofficial
company Web site.” The article
went on to say that “John Dono-
van, who runs a Web site critical
of Shell and acts as a conduit for
whistleblowers at the company,
said Shell insiders had told him
that John Stubbs, a senior project
manager on Kashagan, had left
the Anglo-Dutch oil major.”
Sunday Telegraph article about
“Online revolutionaries”
On 9 September 2007, the Sunday
Telegraph published an article by
Juliette Garside under the head-
line: “Online revolutionaries.” The
opening sentence said: “Revolutions used to happen in the streets
– these days they take place online. And the targets are more often
big businesses than bad governments.” The article included a sec-
90tion about Royaldutchshellplc.com and its owners, “Alfred Dono-
van, now in his 90s, and his son John.” The article went on to say:
“Their site became a hub for activists and disgruntled former em-
ployees. It has been used to mobilise support for environmental
campaigns by the likes of WWF, the environmental lobbying
group, against drilling in the Arctic and Russia, for groups wor-
ried about Shells social impact in Ireland and Nigeria, and by the
companys former group auditor Bill Campbell to raise issues about
employee safety.”
Essential reading for anyone
who covers Shell
On 12 September 2007, an arti-
cle was published on the Pros-
pect Magazine website by a
regular contributor, Derek
Brower, who is also the senior
correspondent of Petroleum
Economist. Under the headline
Shells Colchester headache,
Brower reminded readers that
In Prospects February issue, I
reported on John and Alfred
Donovan, two men with a com-
bined age of 150 years in a house in Colchester who have been try-
ing relentlessly to prick holes in one of the worlds biggest compa-
nies, Shell. They seem to be succeeding. Their website has become
essential reading for anyone who covers Shell and the energy sec-
tor more broadly. It gets up to 4.6m hits a month. Brewer went on
to report that the Donovans have found another ruse to annoy
Shell: the Data Protection Act (DPA) and that So far, the company
has surrendered two large folders, including an article about them
by a director, a press release about them that the men claim is de-
famatory, and much else.
The article also said that Shell has not released under the DPA a
copy of an email about them from Shells senior lawyer to the Chief
Executive Officer of Royal Dutch Shell, Jeroen van der Veer and
was paying the law firm Simmons & Simmons to handle their
DPA requests. It also reported that The company triedand failedto
have their website closed down and revealed The Donovans say
they have received CVs, busi-
ness proposals, and even a ter-
rorist threat sent to them: all
were intended for Shell. (They
kindly forwarded them on.)
The last sentence in the article
said: As journalists and disgrun-
tled employees have realised, if
you want to know whats up at
one of the worlds biggest com-
paniesor just want a good
moan about the latest oil spill
start with
www.royaldutchshellplc.com.
The Times reports Royal
Dutch Shell at war with the Donovan family
On 22 September 2007, The Times newspaper reported “Since the
1990s, Royal Dutch Shell has been at war with a family who regis-
tered a website, royaldutchshellplc.com. The Donovan family, led
by 90-year-old Burma veteran Alfred, perhaps quixotically want
Shell to change its management.” The article said that Shell had
“failed to shut down the site” which had attracted Shell job applica-
91tions and even a terrorist threat “all of which are dutifully passed
on to the company.” The article went on to say “there are signs that
Shell is developing a sense of humour. A recent letter from general
counsel there suggests that a truly alternative solution for all those
people inadvertently contacting you is for you to choose a website
and e-mail address without the word Shell in it.
BBC Essex interviews John Dono-
van
On 11 October 2007, BBC Essex pre-
senter Etholle George interviewed
John Donovan concerning the web-
site royaldutchshellplc.com. The in-
terview was introduced as being
“the story of a high tech David and Goliath battle
of the modern age.” Etholle George asked ques-
tions about the websites Live Chat feature saying
“Ive got it up on my screen at the moment
there are currently 32 people who are engaged in
conversation on your website absolutely fascinat-
ing.” She later asked who the people were. The
overall thrust of the questioning was that John
Donovan must be obsessed to devote so much time
to the website.
Nikkei BP says The fate of Sakhalin 2 was
changed by two British men
On 12 November 2007, leading Japanese business
magazine Nikkei BP published an internet article
about the Donovans and their website,
royaldutchshellplc.com under the headline: “Gripe sites are becom-
ing more powerful”. It said The fate of Sakhalin 2 was changed by
two British men, described as a 90-year-old man and his son a ref-
erence to Alfred Donovan and his son John. The author of the arti-
cle, Ryo Kuroki, a Japanese novelist, said that he had recently vis-
ited them at their home in Colchester Essex, a town located in the
South East of the UK. The article revealed that Alfred had fought
against the Japanese army in the Burmese front as a communica-
tions officer.
The article went on to say that in
October 2005 Donovans contacted
Russian President Vladimir Putin
through the Presidents website
(The site has a function to send E-
mail to the president). The purpose
was to provide the president with
insider information on the cost overrun of Sakhalin
2 project. It also mentioned the approach made to
Oleg Mitvol, deputy head of Russias environ-
mental watchdog Rosprirodnadzor and the later
confirmation from Mitvol in his interview with Ar-
gus Media that the Russian side used the informa-
tion provided by Donovans in negotiations with
project sponsors of Sakhalin-II.
Ethiopian Jimma Times mentions website in arti-
cle about Shell lawsuit
On 17 December 2007, an Ethiopian newspaper,
the Jimma Times, published an internet article un-
der the headline ETHIOPIAN Employees accuse
Shell of raiding retirement fund reporting that A
litigation was brought against Shell by a trade union representing
90% of its Ethiopian employees. It went on to reveal that
92www.royaldutchshellplc.com had published an article about the
story and in reference to the website said: The organization says its
objective is to persuade Shell management to stand by the Shell
Statement of General Business Principles pledging among other
things, honesty, integrity and transparency in all of its dealings.
Insider leaks news to
RoyalDutchShellplc.com of
thousands of IT job cuts at
Shell
On 21 December 2007, Reuters
published a news story with
the headline: “Shell to cut thou-
sands of IT jobs”. The article re-
ported that Shell is going to out-
source a substantial part of its
information technology opera-
tions with the intention of cut-
ting costs “in a measure that
may result in thousands of job
losses”. The article said “One
employee told the Shell protest
website
RoyalDutchShellPlc.com that
3,200 jobs could be lost, but the
spokeswoman declined to con-
firm the numbers.” It went on
to say that an internal Shell email had been supplied to the website
which listed the IT outsourcing companies in final talks with Shell
on taking on different aspects of the business.
ITPro reported that news of Shell’s outsourcing plans came to light
via an internal company email forwarded to an unofficial site dedi-
cated to providing news and insider information about Shell”. The
article said: Shell hasn’t yet put out an official announcement
about its final IT outsourcing plans, but Michiel Brandjes, the com-
pany’s secretary has responded
to an email he received from
the site where the rumours sur-
faced. “The email is authentic,”
he said in an email”. Mr Brand-
jes was also quoted as saying:
“It is not a matter of a leak
though. He said information
about Shells plans had been in
the public domain for some
time.
According to a related article
by Benoit Faucon of Dow
Jones Newswires published
on 24 December by
CNNMoney.com, the IT job
cuts could improve the credibil-
ity of Peter Voser, the Chief Fi-
nancial Officer of Royal Dutch
Shell Plc, to take over as Chief
Executive of the company
when the current CEO, Jeroen
van der Veer, retires in June 2009. A Shell spokesperson was
quoted as in the article as saying; “We are in the middle of commer-
cial conversations and expect contracts to be signed early in 2008 –
at which point we will share more details.” The article went on to
say “The talks were first reported on the Web site
93royaldutchshellplc.com, which is critical of the
company. That report said thousands of jobs –
among staff or contractors – could be cut as re-
sult.”
The Times describes site as an independent
website that monitors the company
On 25 January 2008, Carl Mortished, World Busi-
ness Editor of The Times newspaper wrote an
article headlined: Shell chief fears oil shortage in
seven years in which he described the site as an
independent website that monitors the com-
pany.
The article revealed that Jeroen van der Veer,
Shells chief executive had stated in an e-mail
sent to Shell employees and reported on the
royaldutchshellplc.com website, that output of
conventional oil and gas was close to peaking.
In the leaked email, van der Veer stated: Shell
estimates that after 2015 supplies of easy-to-
access oil and gas will no longer keep up with
demand. This was an important acknowledge-
ment of a pending Peak Oil crisis. It was subse-
quently picked up by many other publications
because of its global significance.
The Wall Street Journal says website regularly
used by Shell whistleblowers
On 18 March 2008, The Wall Street Journal pub-
lished an article headlined Shell Addresses Out-
put Issue”. The report by Guy Chazan indicated
Shell had attempted to dampen concerns over
its petroleum reserves but had declined to give
an indication of production in the short term, in-
dicating that output will increase after 2010. The
article went on to say that Shell CEO Jeroen van
der Veer had acknowledged the company’s
share-price performance had lagged behind al-
most all its main rivals over past three years, an
outcome Mr van der Veer said was a “disap-
pointment.” The expression of his disappoint-
ment was contained in a memo sent by Mr. van
der Veer to staff. The article said: A copy was
given to royaldutchshellplc.com, a Web site regu-
larly used by Shell whistleblowers. The memo
revealed that Shell came in fourth out of five oil
majors in terms of total shareholder return over
the last three years, which measures share price
growth and dividend payments. It said Shell
lagged Exxon Mobil Corp, Chevron Corpora-
tion, and Total SA of France, though it was
ahead of British major BP PLC. Although Mr.
van der Veer had called the outcome a “disap-
pointment,” he noted Shell’s business results
over the last three years were “strong.”
royaldutchshellplc.com articles featured on
Thomson Reuters website
From April 2008,Thomson Reuters, “the world’s
largest international multimedia news agency”,
has provided links on articles published on their
website to related articles published on
94royaldutchshellplc.com. Many of the linked [3] articles relate to
Royal Dutch Shell and other oil companies such as ExxonMobil,
BP, Chevron and ConocoPhillips.
Letter leaked to royaldutchshellplc.com reveals 40% deficit in
Shell Dutch pension fund
news hits Shell share value
The Financial Times pub-
lished an article on 12 De-
cember 2008 under the head-
line: Shell pension scheme
value falls 40%. The article
deficit would have no effect on current pension payments, but
could affect whether workers pensions kept pace with future infla-
tion.
was based on a letter pub-
lished by
royaldutchshellplc.com, a
website used to air com-
plaints against Shell. The
Shell letter to employees an-
nounced investments in
Royal Dutch Shells Nether-
lands pension fund had
fallen by 40% since the start
of 2008 and as a consequence
had fallen short of the Dutch
regulatory minimum. The FT article indicated that the fund would
need within 3 years billions of pounds to comply with Dutch regu-
lations.
The article went on to say that although measure being taken will
only affect Dutch pension scheme members, the financing will
have an effect on Shell, which is listed in London. Shell confirmed
to the FT that the fund had fallen into deficit and indicated, the
Reuters published an article on the same day covering the same
news story under the head-
line: Shell pension under-
funded, contributions rise.
It reported that Royal Dutch
Shell Plc’s’ Dutch pension
fund has fallen into deficit as
share market turmoil
knocked 40 percent off the
fund’s value, forcing the oil
major and employees to in-
crease contributions. The arti-
cle stated: “Shell’s pension
fund has commissioned a re-
port to establish if its long-
term strategy needs chang-
ing and will submit a recov-
ery plan to the Dutch Central
Bank, which is also the coun-
try’s pension regulator, next
year.” The article also said:
‘”A full copy of the letter is published on activist website
royaldutchshellplc.com.’” The Reuters syndicated article was pub-
lished by several news organisations including the International
Herald Tribune.
The following day, 13 December 2008, The Times published an arti-
cle covering the economic downturn which said “Royal Dutch
Shell A fell 49p to £17.50 after reports that its Dutch pension fund
95has fallen into deficit, with stock market turmoil knocking 40 per
cent off its value.”
An article about a Bernard Madoff alleged fraud published by The
Times on 18 December 2008, under the headline “Allegations in
America pose threat to UK funds” stated: “The pension fund oper-
ated by the Netherlands branch of Royal Dutch Shell said that it
had a $45 million ex-
posure to the alleged
fraud. The fund,
which manages the
retirement savings of
thousands of Shell
workers, is in deficit.”
Series of Reuters arti-
cles based on Shell
insider information
and internal emails leaked to
royaldutchshellplc.com
On 30 January 2009 Reuters
published an article under the headline: Shell gets tough on costs
as oil prices bite.
It reported that because of a collapse in oil prices Shell had intensi-
fied its cost-cutting and also planned to improve its mixed safety
record. Shells head of Exploration and Production Malcolm
Brinded told employees in an email seen by Reuters that staff had
to make tough choices. A Shell spokesman had confirmed to
Reuters that the emails, from Brinded and Royal Dutch Shell Chief
Executive Jeroen van der Veer were genuine.
The article said: Copies of the emails are available at
www.royaldutchshellplc.com. Brinded demanded real action on
cost cutting: Shed contractor staff, challenge requirements, elimi-
nate consultancy work, reduce travel massively, cut overheads eve-
rywhere, he said.” Addressing safety issues, Brinded said Shell had
a “dreadful start” to this year after 10 contractors and one third
party were killed in three incidents. The email from Jeroen van der
Veer said the com-
pany was intensifying
its efforts on safety.
The article was pub-
lished by London
Stock Exchange Plc
and a number of news
organisations, includ-
ing the International
Herald Tribune.
On 9 February 2009, Reuters
published an article under
the headline: INTERVIEW-
Shell eyes Mid East growth,
to cut some jobs A Reuters interview with Raoul Restucci, Shell’s
head of exploration and production for the Middle East, on the sub-
ject of job cuts, resulted from leaked Shell insider information
when employees posted comments on Shell protest website
royaldutchshellplc.com saying up to half the jobs at the Dubai op-
eration could go. The article also referred to the late January email
from Malcolm Brinded urging sharp spending cuts. The article was
also published by a number of news organisations, including
GuardianOnline.
96On 12 February 2009, Reuters published an article under the head-
line: Shell to stall hires, and get “ruthless” on contractors The arti-
cle revealed the content of an email sent on behalf of Chris Haynes,
Vice President Technical, Shell Exploration and Production. The
content was in line with the cost-cutting drive detailed in the ear-
lier leaked Shell internal emails, this time including the instruction
to “Ruthlessly review third parties costs … Review necessity of con-
tract staff as contracts expire, renew by exception only.” Shell de-
clined to comment on the email. Reuters said: A copy of the email
is available on Shell protest site
royaldutchshellplc.com to
which Shell employees often
post comments. The article was
published by many news
sources, including the Interna-
tional Herald Trib-
Web site. Feeling aggrieved by treatment from the oil giant Shell,
they created their site under the company’s name,
www.royaldutchshellplc.com. It strives, on a daily basis, to expose
Shell’s underside through research, investigation and leaks from
inside Shell, which earned $35 billion in 2008. It went on to say in
reference to the website: Our David has already given Goliath
with its 100,000 employees and business in 140 countries the PR
equivalent of two black eyes.”
une.
American newspaper
describes
royaldutchshellplc.com as world’s most effective adversarial web
site
On 7 February 2009, an American newspaper, the Santa Barbara
News-Press, published an article by Robert Eringer under the
headline: Gripe sites are all the rage now The article, as indicated
by the headline, dealt with the subject of gripe websites. It said: Al-
fred and John Donovan, a father and son in Colchester, England,
several years ago established the world’s most effective adversarial
Legal action by Shell relating to
website
Due to an oversight, the man-
agement of the Royal Dutch
Shell Group had not registered
the dotcom name for
the new company
which resulted from
the unification in
2005, of The “Shell”
Transport and Trad-
ing Company Plc
and the Royal Dutch
Petroleum Company
Limited. The domain
name had already been registered by Alfred Donovan, who ex-
ploited a loophole which allows an online critic to legally use a dot-
com domain name identical to a target company’s name or trade-
mark. To fall within this category, the gripe site must be non-
commercial, with no subscriptions and no paid advertising. To
avoid being considered a cybersquatter the domain name and asso-
ciated website must be active, with no attempt made to sell the do-
main name, especially to the company holding rights to the corre-
97sponding trademark or company name. Shell unsuccessfully at-
tempted to obtain via WIPO proceedings,
ownership of this address and two other
Donovan owned domain names:
royaldutchshellgroup.com and
shellnews.net.[6][7][8][9]
Eight Royal Dutch Shell Group compa-
nies collectively obtained in June 2004 an
Interim Injunction and Restraining Or-
der against a Shell whistleblower, a Ma-
laysian geologist and former Shell em-
ployee, Dr John Huong, in respect of al-
leged defamatory postings attributed to
Dr Huong on the Donovan website. The
Shell action is directed solely against Dr
Huong. Further proceedings against Dr
Huong were issued by the same plain-
tiff companies in 2006 in respect of publi-
cations on the Donovan website in 2005
and 2006. The further proceedings in-
clude a “Notice to Show Cause” relating
to a “contempt of court” action poten-
tially punishable by imprisonment. Nu-
merous proceedings have been issued
by Shell in connection with the on-going
litigation.
On 6 August 2007, Mr Michiel Brandjes, Company Secretary and
General Counsel Corporate of Royal
Dutch Shell Plc notified then 90 year old
Alfred Donovan that the Shell plaintiff
companies had “on compassionate
grounds” waived the right to cross exam-
ine him in relation to an affidavit he had
supplied in the Dr Huong case.
98# # # 1 1 Sunday Telegraph report (6 June 1999).
2 2 Rise of the gripe site Prospect magazine, February 2007
3 3 Appeal for support
4 Olusegun Obasanjo of Nigeria
5 5 Shell dialogue dead says mosop
6 6 Times Online report mentioning the case
7 7 News.com article
8 8 Press statement issued by Shell (17 March 1995).
9 9 CNN Executive bookmark
The current Wikipedia article royaldutchshellplc.com
References
Sunday Telegraph report (6 June 1999).
Rise of the gripe site Prospect magazine, February 2007
Appeal for support
Letter from National Union of Ogoni students to President
Olusegun Obasanjo of Nigeria
Shell dialogue dead says mosop
Times Online report mentioning the case
News.com article
Press statement issued by Shell (17 March 1995).
CNN Executive bookmark
External links
▪# http://www.royaldutchshellplc.com
▪# http://shellnews.net
▪# http://shell2004.com/
WIKIPEDIA ARTICLE FROM 2009 ENDS
It has been edited almost to oblivion and is also hopelessly out of
date. For example, my father is still shown as the joint owner when
in fact he passed away in July 2013. Accurate information sup-
ported by evidence from reputable independent third party
sources including The Wall Street Journal, The Financial Times,
The Times, The Telegraph, Dow Jones Newswires and Reuters has
been deleted by mainly anonymous editors.
The laundering process has been very helpful to Royal Dutch Shell.
This website and sisters royaldutchshellgroup.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, shellnews.net, and shellwikipedia.com, are owned by John Donovan. There is also a Wikipedia segment.
EBOOK TITLE: “SIR HENRI DETERDING AND THE NAZI HISTORY OF ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON
EBOOK TITLE: “JOHN DONOVAN, SHELL’S NIGHTMARE: MY EPIC FEUD WITH THE UNSCRUPULOUS OIL GIANT ROYAL DUTCH SHELL” – AVAILABLE ON AMAZON.
EBOOK TITLE: “TOXIC FACTS ABOUT SHELL REMOVED FROM WIKIPEDIA: HOW SHELL BECAME THE MOST HATED BRAND IN THE WORLD” – AVAILABLE ON AMAZON.



















