Shell and BASF offer $20 million to settle toxic environmental lawsuit

Feb 15th, 2013

by John Donovan.

The factory was built in 1977 by Shell. Dozens of former employees of the plant have been diagnosed with prostate, thyroid and other types of cancer, circulatory, liver and intestinal illnesses, as well as infertility and sexual impotence.

By John Donovan

We were recently contacted by an associationrepresenting former workers at a Shell/Basf Chemicals factory in Brazil.

The factory was built in 1977 by Shell. Dozens of former employees of the plant have been diagnosed with prostate, thyroid and other types of cancer, circulatory, liver and intestinal illnesses, as well as infertility and sexual impotence.

Today, AP reported that Shell and BASF have offered $20 million to settle a related class-action. The AP article is printed below.

Shell, BASF Offer Millions in Class Action Suit

Shell Brasil SA and BASF SA have offered more than $20 million to settle a class-action lawsuit with former workers allegedly contaminated at a pesticide plant in the state of Sao Paulo, Brazil…; Prosecutors have said that former workers at the plant and people who live near it have shown many health problems, including prostate cancer, problems with short-term memory and issues with their thyroid glands.

SAO PAULO February 15, 2013 (AP)

Shell Brasil SA and BASF SA have offered more than $20 million to settle a class-action lawsuit with former workers allegedly contaminated at a pesticide plant in the state of Sao Paulo, Brazil's top labor court said Friday.

The court said on its website that the two companies have offered to provide 884 workers with lifelong health plans with a "global value" of 52 million reals ($26 million).

Representatives of the two companies and workers are scheduled to meet again at the end of a month to discuss the proposal, the court said.

Shell spokesman Glauco Paiva confirmed the offer of a lifelong health plan but said "for now we prefer not to mention any numbers." BASF also confirmed the offer on its website.

The chemical plant operated from 1977 until it was closed in 2002. Shell originally owned it, but sold the operation to American Cyanamid in 1995. Germany-based BASF bought American Cyanamid in 2000 and took over the chemicals plant in the city of Paulinia.

In its 2011 annual report, BASF SE, the parent company of BASF SA, acknowledged the site was "significantly contaminated by the production of crop protection products." It claimed that the site was contaminated before it bought the plant.

Prosecutors have said that former workers at the plant and people who live near it have shown many health problems, including prostate cancer, problems with short-term memory and issues with their thyroid glands.

SOURCE

RELATED COMMENT POSTED BY "RELIEVED" ON SHELL BLOG Sat, 16 Feb 2013

About the article regarding Shell and BASF: Shell management knew what it was doing when it relocated its pesticide operations from the US (RockyFlats, Colorado) to Brazil. Shell management knew many of their workers would contact cancer and that they were condemning them to early and painful deaths. Shell didn't give a s*** about those workers in Brazil and still doesn't. Shell's only concern was profit. Today it only concern is limiting the damage settlement. In 1976, when Shell was forced to shut down its US operation, roughly 96% of all Americans had traces of Shell's 'miracle' pesticides in their blood. And the cancer issue was well known at the time. A $20 million settlement offer for those poor folks in Brazil is chicken feed. Shell should be force to pay billions in punitive damages for the deliberate harm they caused in their quest to extend the life of a very, very profitable, albeit dangerous, line of chemical pesticides.

Posted in: Business Principles, Environment, GoogleNews, Human Rights, John Donovan, Litigation, Royal Dutch Shell Plc, Shell Employee Safety.
Tagged: Brazil · John Donovan · Litigation · Royal Dutch Shell Plc

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Selection of links to Shell related articles: 17 February 2013 →

Signs of failure of the Royal Dutch Shell Empire?

Feb 7th, 2013 

by John Donovan.

The problem is when the corruption stems from the boardroom as witnessed by the lead up to the Shell reserves crisis and the protracted cover-up of the Shell Touch F*** All scandal, all is lost.  You only have to look at recent history of how organisations fail due to internal corruption of essential controls by the men in suits in the Boardroom.  Enron, the banking system on both sides of the pond, the current crisis in the NHS are just a few examples. 

COMMENT BY BILL CAMPBELL, RETIRED HSE GROUP AUDITOR, SHELL INTERNATIONAL

The myth of governance

Many pages exist explaining the need for the Shell organisation to have effective governance over its worldwide operations if it hopes to meet its stated objectives across the business.  The governance process is owned by the Board, executive and non executive.  By having essential management controls in place is the fundamental safeguard to meeting objectives including compliance with the applicable laws in the regions in which Shell operate.

The problem is when the corruption stems from the boardroom as witnessed by the lead up to the Shell reserves crisis and the protracted cover-up of the Shell Touch F*** All scandal, all is lost.  You only have to look at recent history of how organisations fail due to internal corruption of essential controls by the men insuits in the Boardroom.  Enron, the banking system on both sides of the pond, the current crisis in the NHS are just a few examples.  

Re the reserves fiasco, as the contributors to your website explain, hundreds of staff were aware of the reserves cooking of the books but this behaviour was tolerated because it was the Governors who were doing the cooking. The limited examples quoted show the consequence of lack of essential controls, simply put organisations and entities fail, and can fail catastrophically.

Are there signs of failure of the Royal Dutch Shell empire? – Well just maybe the debacle that is the current great Arctic adventure are the early signs.

Posted in: Alaska, Arctic, Bill Campbell, Business Principles, Corporate Governance,Corruption, GoogleNews, Oil, Outspoken Articles, Royal Dutch Shell Plc, Shell Oil Reserves Scandal, TOUCH F*** ALL.
Tagged: Alaska · Arctic Ocean · Enron · NHS · Royal Dutch Shell Plc

← Deep-Sea Drilling Muddies Political Waters

Unsure of Shell →

Kulluk grounding has already cost Shell $90 million

Feb 3rd, 2013 

by John Donovan.

Royal Dutch Shell is a company with sham business principles and no scruples. It plotted to exploit the 9/11 attack for commercial purposes, adopted a Touch F*** All approach to the safety of offshore operations costing the lives of Shell offshore workers, and even defrauded its own investors. Is the U.S. government really going to allow this thoroughly discredited blundering company to continue with its jinxed Arctic folly?

By John Donovan

Shell has revealed that the grounding of the Kulluk in Alaskan waters has already cost the company $90 million for salvage and other costs. This does not include any repairs. There is no mention of making anyinsurance claim, because Shell was apparently unable to obtain contingency cover. Lloyds underwriters correctly decided the venture was too risky to the extent that it was impossible to quantify the potential financial consequences of a disaster that couldbankrupt even a company as big as Royal Dutch Shell Plc. So Shell has been recklessly maneuvering its fleet, including a convertedantiquated rust bucket, in stormy unpredictable Alaskan/Arctic waters without insurance, other than questionable self-insurance for a potential liability that it might not be able to cover. The ill fated voyage of the Kulluk, which ended on the rocks, was prompted, as Shell has admitted, by a tax dodging motive.

And the scandal-tainted Shell CEO Peter Voserresponsible for what has aptly been described as a f****** mess had the cheek topour scorn on BP. The news media have already reported on the consequential damage to Vosers reputation. As to his sidekick and according to the FT, heir to the throne, Simon Henry, there is more to come shortly about his starring role in the reserves scandal.

The fact that Shell's leadership is hopelessly incompetent comes as no surprise to us. No competent board with an ounce of commercial commonsense would allow this website to continue in existence, bearing in mind the damage it has done to Shell over the years by providing an outlet for Shell insider leaks i.e. the Sakhalin 2 debacle. Shell has an army of lawyers to stop any website publishing anything other than the truth about the company.

Our visitors may be interested to know that this website is still under covert attack on a 24 hour basis by a sinister unknown party, who apparently strongly objects to our existence. Must have been something we said? Clearly the party with deep pockets responsible for what is going on does not want to face us openly. Most recent implied threat from the relevant party was received today.

"Hi! I just wanted to ask if you ever have any porblems with hackers? My last blog (wordpress) was hacked and I ended up losing a few months of hard work due to no data backup. Do you have any solutions to prevent hackers?"

Royal Dutch Shell is a company with sham business principles and no scruples. It plotted to exploit the 9/11 attack for commercial purposes, adopted a Touch F*** All approach to the safety of offshore operations costing the lives of Shell offshore workers, and even defrauded its own investors. Is the U.S. government really going to allow this thoroughly discredited blundering company to continue with its jinxed Arctic folly? And I have not mentioned its horrendous track record in Nigeria, including theembedding of spies throughout the host government.

Shell has my address for the service of any defamation writ, though on past performance, it prefers to operate behind the scenes using sleazy tactics, including undercover activity. Proof available on request.

RELATED ARTICLE

Tom Bawden: Thursday 31 January 2013

Shell has Britain's nascent shale gas industry in its sights after its chief executive, Peter Voser, declared plans to be a "leading player" in the fast-growing global fracking business.

Fresh from signing a £6bn shale gas deal with the Ukraine at Davos last week, Mr Voser said he was looking at a number of fracking opportunities across Europe, including the UK and Germany. Shell disclosed its interest in UK fracking after revealing a disappointing 6 per cent slump in profits to $27bn (£17bn) for 2012, as its US oil and gas business was hit by rising costs and falling prices. The shares fell nearly 3 per cent to 2,294p.

The company also revealed a $90m hit from the grounding of its Arctic drilling rig, the Kulluk, near the Alaskan coast on New Year's Eve, after it ran into a storm on the way to Seattle for routine maintenance. It said the Kulluk was not yet repaired, and it was "too early" to say whether its Arctic setbacks would be resolved in time for the drilling season, which runs from July to October. However, Mr Voser pledged his allegiance to the Arctic despite a series of setbacks over the years in the region, where Shell has invested $5bn but has yet to discover commercial quantities of oil.

Fracking, or hydraulic fracturing, is used to release oil and shale gas from rocks by blasting sand, chemicals and water into them. The practice is controversial because it has been linked to earthquakes and water pollution, but it has also enabled an energy revolution in the US, where new techniques have unleashed a wave of rock-based oil and gas. Shell already has significant fracking operations in the US and has secured contracts to produce shale gas in China.

The practice was temporarily banned in the UK after the country's first exploratory shale gas drilling site, near Blackpool, was linked to earth tremors. However, it was given the green light in December after an investigation concluded it should proceed under close supervision.

Mr Voser said he was "very excited" about the opportunities for fracking, but cautioned that there was no certainty of a deal being done in the UK, where he saw no prospect of any significant shale gas production for at least 10 years.

In comments echoing recent statements from British Gas owner Centrica and BP, Mr Voser said: "Given the population density, we see less development in European shale [than the US] and that also applies to the UK. I don't see the impact of shale as a major driver over the next 10 years although it might be after that."

Whether the UK could develop a successful shale gas industry depends primarily on whether it has the right geology, as well as the right regulation and tax structures, Mr Voser added.

He played down, without denying outright, reports that Shell is considering buying a stake in Cuadrilla, a company chaired by the former BP chief executive Lord Browne that caused the tremors near Blackpool and is leading the fracking charge in the UK.

"We are on the high level so don't link us to anything which is ongoing at this stage. That would be too early," he said.

The $90m Kulluk charge, to be spread over the fourth quarter of 2012 and the current quarter, covers salvage and other costs but no repair work, meaning that the eventual cost to Shell could be considerably higher.

SOURCE

Posted in: Alaska, Arctic, Business Principles, Corporate Governance, Environment,GoogleNews, John Donovan, Oil, Oil Spill, Peter Voser, Royal Dutch Shell Plc, Shell Project Delays, Shell Project Overruns, Shell Spying, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · John Donovan · Peter Voser · Royal Dutch Shell Plc

← A mixed verdict

Shell feels chill of Arctic problems

Jan 27th, 2013 

by John Donovan.

…the City is concerned about Shell's prospects in the Arctic after the company's Kulluk drilling rig ran aground off the coast of Alaska on New Year's Eve. The grounding was the latest in a series of mishaps in Shell's quest to extract oil from the polar region, which has cost the company £3.2bn but has yet to result in the discovery of any commercial quantities of oil.

Oil giant's profit to soar as price rises and China booms

Tom Bawden: Sunday 27 January 2013

Shell will announce a bumper set of 2012 results this week, though the sheen of a profit leap will be removed as it updates the market on its problems in the Arctic.

The FTSE 100 oil giant is set to report on Thursday that net income soared by 42 per cent to $7bn (£4.4bn) last year on the back of increased oil production from Canada's tar sands and rising output from its liquefied natural gas operations in Qatar.

Shell also benefited from a strong oil price and increased profit margins at its refining business, amid declining competition after refineries, such as Coryton in Essex, closed. China's buoyant car market will have also fuelled the results.

The full-year figures will come as a welcome relief for investors, after Shell unveiled disappointing results for the third quarter. Profit slumped by 15 per cent after a $354m (£224m) writedown on its US shale gas business, where the fracking boom has significantly increased supply and therefore forced down prices.

However, the City is concerned about Shell's prospects in the Arctic after the company's Kulluk drilling rig ran aground off the coast of Alaska on New Year's Eve. The grounding was the latest in a series of mishaps in Shell's quest to extract oil from the polar region, which has cost the company £3.2bn but has yet to result in the discovery of any commercial quantities of oil.

The incident has raised concerns that the Kulluk might not be repaired in time for the Arctic's drilling season from July to October, further pushing back Shell's timetable for producing oil in the region. The US government has also ordered two reviews into Shell's activities off the Alaskan coast that could push back its exploration programme further.

"These issues will have slowed the trajectory and the market will be looking for clarification on the start-up and timing of the Arctic," said Investec analyst Stuart Joyner.

A Shell spokesman added: "At this stage, it's too early to gauge any impact on our ongoing exploration plans, but with the Kulluk now safely recovered, we'll carry out a detailed assessment of the vessel to understand what those impacts might be."

Another company that has also had some high-profile problems recently – the South African platinum miner Lonmin – will also update the market on its performance at its annual general meeting on Thursday.

Lonmin, which was at the centre of a series of strikes that swept South Africa's mining industry last year, is set to reveal that it produced 115,000 ounces of platinum in the first quarter of its financial year, ending 31 December. This is the same level as the year earlier, but well down on the 196,000 ounces Lonmin produced in the previous quarter.

However, Lonmin's first quarter is typically the production low-point of the year because that is the summer period in which miners take most of their holidays.

SOURCE

Posted in: Alaska, Arctic, Oil, Royal Dutch Shell Plc, The Independent, United States.
Tagged: Alaska · Arctic Ocean · Beaufort Sea · Chukchi Sea · Oil · Royal Dutch Shell Plc

← 30 January 2013: Court Verdict Expected on Shell's Nigerian Oil Pollution

30 January 2013: Court Verdict Expected on Shell's Nigerian Oil Pollution

Jan 26th, 2013

by John Donovan.

At 10 am on 30 January, the court in The Hague will rule on the case of Milieudefensie and four Nigerian farmers versus Shell. The public sitting in this case took place on 11 October last year. The court case is unique because it is the first time that a Dutch multinational has been brought before the court in its home country for environmental damage caused abroad. The case focuses on just three of the thousands of oil leaks in Nigeria. In the case, Milieudefensie demands that Shell cleans up the oil pollution in the villages, compensates the farmers for the damages suffered and maintains the oil pipelines better in the future.

Interview requests

In connection with the anticipated media interest following the 30 January verdict, we ask that media requests for interviews with one of the spokespeople listed below be made in advance to Milieudefensie's press office.

Spokespeople

Eric Dooh, one of the Nigerian plaintiffs, is in The Hague and will be available to the media on behalf of the plaintiffs. Geert Ritsema and Evert Hassink, of Milieudefensie's International team, will be available to the media on behalf of Milieudefensie. Milieudefensie's lawyer, Channa Samkalden of Böhler Advocaten, will be available for questions on the legal aspects of the case.

Web and Social Media
Please tweet using  #Shellincourt. The court will give its verdict in Dutch. Milieudefensie has asked the court to provide an English translation of the verdict. We will put it on www.milieudefensie.nl as soon as possible.

Images

Last week, photographer Marten Van Dijl took photos of the plaintiffs and the pollution in the villages in Nigeria. Portraits of the plaintiffs are also available; these were taken in October 2012 by Piere Crom during the court session in The Hague.

All images can be accessed viawww.milieudefensie.nl/publicaties/fotoalbum/fotoalbum-internationaal/shell-rechtszaak/ and are copyright-free (with photo credit).

best wishes, Evert Hassink

See the story on worsethanbad.org !

Milieudefensie, Friends of the Earth Netherlands

International Corporate Responsibility campaign

office: Mo-Tue-We-Friday, phone             +31 (0)20 5507 391      

or mobile             +31 (0)6 51080994      

skype: everthassink

www.milieudefensie.nl

THE HAGUE, THE NETHERLANDS, OCTOBER 11, 2012 — For the first time in history, a Dutch court verdict is expected about the case of a European company, Anglo-Dutch oil giant Shell, which appeared in court today to account for damage it caused abroad, says Friends of the Earth International. [1]

Lawyers for both parties pleaded at a key hearing in The Hague today and the court announced that the verdict is expected on 30 January 2013.

The court case against Shell's oil spills in Nigeria has been filed by four Nigerian plaintiffs in conjunction with Friends of the Earth Netherlands and supported by Friends of the Earth Nigeria.

"A positive verdict will have groundbreaking legal repercussions. It will allow victims of multinational corporations in developing countries to obtain justice in Europe," says Geert Ritsema, globalisation campaign leader at Friends of the Earth Netherlands / Milieudefensie.

"Due to the poor maintenance of its pipelines and infrastructure Shell lets tens of millions of barrels of oil leak in Nigeria, with disastrous consequences for local people and the environment. We hope for a positive verdict. We hope that Shell will own up to its glaring pollution. We hope that justice will be done for the four Nigerians who sued Shell in The Netherlands," says Nnimmo Bassey, Executive Director of Friends of the Earth Nigeria and Chair of Friends of the Earth International.

In May 2008, four Nigerian fishermen and farmers [2] from the villages of Goi, Ikot Ada Udo and Oruma, in conjunction with Friends of the Earth Netherlands / Milieudefensie and supported by Friends of the Earth Nigeria / ERA, started a legal case against Shell Nigeria and its parent company in the Netherlands. [3]

"Shell polluted with impunity and destroyed our livelihoods. Several years after the spills we still see and smell the oil and in some communities half of the population has respiratory diseases. Shell must now clean up properly and prevent more oil spills from happening. Justice has to be done here in The Netherlands and Shell must be held to account," says one of the four plaintiffs, Eric Dooh from Goi, Ogoniland, Nigeria.

The serious contamination of the oil rich Niger Delta has had disastrous consequences for the local people and their environment. Oil leaks regularly pollute the fields, forests and water. These leaks are a heavy burden on agriculture and fishing.

Shell is the operator of Nigeria's largest oil fields and bears significant responsibility for the oil pollution. The UN, among others, has stated that Shell does not comply with legal environmental standards and has failed to clean up leaked oil – or has done so only insufficiently, for decades. Moreover, Shell's own sustainability report stated that the number of leaks due to poor maintenance doubled in 2011, rising from 32 to 64.

NOTES TO EDITORS

[1] PHOTOS OF THE OIL SPILLS, as well as legal documents and fact sheets about the legal proceedings are available at : 
http://www.milieudefensie.nl/english/shell/oil-leaks/courtcase/press and 
http://www.milieudefensie.nl/english/shell/oil-leaks/courtcase/press/documents/documents-on-the-shell-legal-case

[2] BIOS, PORTRAITS AND STORIES OF THE PLAINTIFFS are available at : http://www.milieudefensie.nl/english/shell/oil-leaks/courtcase/plaintiffs 
http://www.milieudefensie.nl/english/shell/oil-leaks/courtcase/press/documents/documents-on-the-shell-legal-case

[3] A TIMELINE OF THE COURT CASE is available at :http://www.milieudefensie.nl/publicaties/factsheets/timeline-courtcase-shell

FOR MORE INFORMATION

Friends of the Earth Netherlands / Milieudefensie press office: Tel:            + 31 – 20 – 5507 333       or e-mail  persvoorlichting (at) milieudefensie.nl 

Posted in: Africa, Corporate Governance, Environment, GoogleNews, Human Rights,Litigation, Nigeria, Ogoniland, Oil, Oil Spill, Pollution, Royal Dutch Shell Plc, Toxic contamination.
Tagged: Niger Delta · Nigeria · Oil · Royal Dutch Shell Plc

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