DUTCH COURT ORDERS SHELL TO PAY DAMAGES TO FARMER

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•Dismisses claims by four others 
•Theft, vandalism
partly to blame for spills, says oil firm

For Royal Dutch Shell, it was a case of win some, lose some Wednesday as a
Dutch court ordered its Nigerian affiliate, Shell Petroleum Development Company
(SPDC), to pay damages to a Nigerian farmer for oil pollution.
The court, however, dismissed four
other claims filed against the parent company, in which the plaintiffs were
seeking compensation from the oil giant for the pollution of their farmlands
and destruction of their means of livelihood. 

 Four Nigerians and an interest group,
Friends of the Earth, had filed the suit in 2008 in The Netherlands, where
Shell has its global headquarters, seeking reparations for loss of income from
contaminated land and waterways in the Niger Delta.

In its ruling, The Hague Civil Court
held that the Royal Dutch Shell could be held partially responsible for
pollution in the Niger Delta, saying the company should have prevented sabotage
at one of its facilities.
The court ruled that SPDC should be
held responsible for a pipeline leak poisoning farmland in the Niger Delta, as
it had failed to take adequate measures to prevent sabotage.
The judges ordered SPDC to pay an
unspecified amount as compensation to 52-year-old Friday Akpan for breach of
duty of care by making it too easy for saboteurs to open an oil well head that
leaked on to his land.
“Shell Nigeria should and could have
prevented this sabotage in an easy way. This is why the district court has
sentenced Shell Nigeria to pay damages to the Nigerian plaintiff,” the judges
said.
Yesterday’s judgment was believed to
be the first time a Dutch court has held a multinational’s foreign subsidiary
liable for environmental damage and ordered it to pay damages.
In its official reaction to the
ruling, SPDC Managing Director and Country Chair, Shell Companies in Nigeria,
Mr. Mutiu Sunmonu, said the company welcomed the court verdict that all spill
cases were caused by criminal activity.
The court ruled that the four oil
spills at Oruma, Goi and Ikot Ada Udo between 2004 and 2007, which have been
the subject of litigation, were caused by sabotage.
However, only in the case of Ikot Ada Udo that the court ruled that SPDC could
have prevented the sabotage by plugging the well earlier enough.
In this particular case, it was
established that saboteurs opened the valve above the surface with a wrench.
But the Dutch court rejected the case
brought by other Nigerian farmers and the environmental pressure group, saying
the leaking pipelines were caused by saboteurs, not Shell’s negligence.
The court accepted Shell’s argument that the spills were caused by sabotage and
not poor maintenance of its facilities, as had been argued by the plaintiffs.
They said they could no longer feed
their families because the region had been polluted by oil from Shell’s
pipelines and production facilities.
The pollution is as a result of oil
spills in 2004, 2005 and 2007, they said.
Reacting to the judgment afterwards, the parent company said it was “happy”
with the verdict.
It said it would pay compensation,
adding that it did not lose the case. “It was not an operational failure. The
leak was the consequence of sabotage,” Royal Dutch Shell’s Vice-President for
Environment, Allard Castelein, said.
He said Shell would negotiate the
amount of damages with the farmer, but that an appeal could postpone the
outcome of those talks.
Akpan, the farmer who won the
compensation and has 12 children, said he was very happy with the judgment.
“I am not surprised at the decision
because there was divine intervention in the court. The spill damaged 47
fishing ponds, killed all the fish and rendered the ponds useless. I had
borrowed the money from the agriculture loans board and had no way to pay it
back,” he told Reuters in Port Harcourt.
“Since then, I have been living by
God’s grace and on the help of good Samaritans. I think this will be a lesson
for Shell and they will know not to damage people’s livelihoods,” he added.
Friends of the Earth spokesman, Geert
Ritsema, said they would appeal against the acquittals “because there is still
a lot of oil lying around. These sites need to be cleaned.”
SPDC, which has been ordered to
compensate Akpan, in its reaction, said the vast majority of oil pollution in
the Niger Delta was caused by oil thieves and illegal refiners and acknowledged
that the problem had affected the daily lives of the people of the oil-rich
region.
Sunmonu stated that the company also
“welcomes the court’s ruling that all spill cases were caused by criminal
activity.”
“This causes major environmental and economic damage, and is the real tragedy
of the Niger Delta. SPDC has made great efforts to raise awareness on the issue
with the government of Nigeria, international bodies like the UN, the media and
NGOs. We will continue to be at the forefront of discussions to find
solutions,” he said.
He explained that for SPDC, no oil spill was acceptable, adding that Shell is
working hard to improve its performance on operational spills
Source: Thisday

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