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SC orders removal of Manila oil depot

by Mike Frialde And Evelyn MacairanThe Philippine Star
March 8th, 2007

SC orders removal of Manila oil depot
By Mike Frialde And Evelyn Macairan
The Philippine Star 03/08/2007


The decades-old Pandacan oil depot, which survived the Japanese bombing in 1941 and the burning of Manila in 1945 and in whose shadow a community has thrived for ages, may be nearing its demise.

The Supreme Court's First Division, citing the dangers the 30-hectare depot posed to residents, ordered yesterday the closure of the American-era facility and the reclassification of the districts of Pandacan and Santa Ana from industrial sites into commercial areas.

The country's top three oil companies: Petron Corp., Pilipinas Shell Petroleum Corp., and Chevron (formerly Caltex), operate the depot, which is near the Pasig River. The depot, which currently holds about 170 million liters of oil, supplies half the country's fuel requirements and 90 percent of Metro Manilas.

The Arroyo administration welcomed the SC order.

"From a security, environmental and safety standpoint, it is not good that such oil depots would be located in the middle of Manila with so many families and residents around them," Executive Secretary Eduardo Ermita said at a briefing. "Imagine if there would be an accident."

"The main concern of this government is a stable supply of fuel and safety," said Palace spokesman Ignacio Bunye.

Malacañang Palace is just more than a kilometer from the depot.

In issuing the order, the SC granted the petition filed by the group Social Justice Society and Manila residents Vladimir Cabigao and Bonifacio Tumbokon for the enforcement of city Ordinance 8027 calling for the dismantling of the depot. The ordinance was enacted in November 2001 following the Sept. 11 terror attacks on the US.

The Manila city government led by Mayor Lito Atienza was the respondent in the petition. Justice Renato Corona penned the 12-page decision.

The SC said there was basis for the concerns that the depot is a terrorist target and may endanger the lives of Manila residents living around it. Aside from terror attacks, the petitioners feared an accident at the depot might spark a conflagration that could spread to neighboring communities.

The petitioners said the city government deferred the enforcement of Ordinance 8027 after the oil firms agreed in June 2002 to scale down the depot�s operations by 40 percent and to set up a green buffer zone around it. But the memorandum of agreement, which was also signed by the energy department and ratified by the city council, was good for only six months. The city council later agreed to extend the agreement to April 2003, prompting the filing in December 2002 of the petition for the enforcement of Ordinance 8027.

"The objective of the ordinance is to protect the residents of Manila from a catastrophic devastation that will surely occur in case of a terrorist attack on the Pandacan Terminals. No reason exists why such protective measure should be delayed," the SC said.

"Thus at present, there is nothing that legally hinders respondent from enforcing Ordinance 8027," the SC added.

"He (Atienza) has no other choice. It is his ministerial duty to do so," the SC said.

Atienza, in his defense, insisted that the MOU only provided the guidelines for the full implementation of the ordinance and that while it "superseded" the ordinance, the MOU was not intended to stop its enforcement.

Presidential Security Group (PSG) chief Col. Romeo Prestoza said the depot has long been a "safety rather than a security" concern for PSG.

"There are too many houses that are close to the oil depot. I don�t think firefighters and chemicals would be able to act fast enough to save lives and property in the event of a major explosion where the conflagration spreads quickly," Prestoza told The STAR.

He said the PSG has contingency plans in the event of an accident or an attack on the oil depot. He said in other countries, oil depots are located far from residential areas.

Petron, Shell react
Petron and Shell said the SC decision might have been based on an old ordinance.

"The subject Ordinance 8027 of the SC decision has been superseded by Order 8119 or the Comprehensive Land Use Plan of Manila. The CLUP gives oil companies a seven-year period to relocate its terminals," Petron public affairs manager Virginia Ruivivar said.

"We are not a party to this. But I think the subject of the SC decision (Ordinance 8027) has already been superseded," Shell external affairs general manager Roberto Kanapi said.

"We also went to the court to question the validity of the Ordinance 8119 which is now pending at the Regional Trial Court of Manila," he said. A source said the oil firms would have to file a motion for intervention if they want to stop the SC from enforcing the decision.

"They do not want to make any moves yet as of now but this is one of the possible moves they may consider," he said. An industry official who declined to be named said the hauling costs of the three oil firms would increase if they were to relocate their tanks from Pandacan.

"I don't know if the oil companies will be able to absorb the extra costs of relocation or pass these on to consumers," he said.

Shell supplies its tanks in Pandacan through a pipeline from its Batangas refinery while Petron hauls finished products from its refinery in Bataan.
Trouble for Atienza
One of the petitioners, Vladimir Cabigao, said he is preparing to file a graft case against Atienza in connection with the latter's failure to promptly implement Ordinance 8027.

He also said he is optimistic that the SC will eventually uphold the ruling of the First Division in case the city government or the oil companies make an appeal.

"I do not see the SC would overturn itself because it (the decision) was based on sound legal principle," Cabigao said. The city government has 15 days upon receipt of the order to file a motion for reconsideration.

Cabigao said he would use the SC ruling as basis for the graft case he planned to file against Atienza.

"I will see to it that this time he (Atienza) will get convicted. It is a ground for criminal case because it was a ministerial duty, he has no discretion on whether or nor the Ordinance should be implemented," Cabigao added.

He said he had a personal stake in the issue because he lived some 500 meters from the depot and that he had sleepless nights after the Sept. 11 attacks fearful of a terrorist strike on the depot. Cabigao's uncle Felicismo was a Manila vice mayor during the tenure of Mayor Antonio Villegas.

Atienza, for his part, said the city government will not contest the SC decision saying the delays in the implementation of Ordinance 8027 were due to "realistic requests" from the oil firms, the energy department, the Metro Manila Development Authority, and even the national government.

"We hope there would no longer be any cause of delay. We have already given the oil companies six years - enough time for them to properly move out," Atienza said.

Commenting on Cabigao's threats to sue him for graft, Atienza said: "I cannot say what they want to do, I don�t know their intentions but as for me, my intention is for public service."





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