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Wednesday, March 14, 2007
Oil firms appeal court order on closure of Pandacan depots

MANILA -- Warning of yet another political upheaval, the country's three biggest oil suppliers on Tuesday asked the Supreme Court (SC) to reconsider its March 7 decision ordering the immediate closure of their depots in Pandacan, Manila.

In an urgent motion for reconsideration, oil companies Chevron Philippines (formerly Caltex Philippines), Petron Corporation, and Pilipinas Shell Petroleum Corporation jointly asked the SC to be allowed to intervene in the suit seeking to compel the Manila City Government to implement an ordinance that would clear the Pandacan district of oil depots, which were perceived to be vulnerable to terrorist attacks.

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The oil industry players claimed the ruling of the high court was premised on incomplete facts and would result in dire consequences, such as the disruption of the supply and distribution of fuel.

Further painting a grim scenario, the oil companies claimed the drastic decrease in supply would lead to oil price escalation, fuel rationing, and aggravation of the state of unemployment.

"This lethal combination of massive unemployment and higher costs of living will surely reduce these people into a horde of anxious, hungry, dissatisfied and desperate masses, who would be willing to embrace anyone or anything that could promise them salvation. Thus, another political upheaval of unprecedented proportions will not be farfetched," the petitioners said in their motion through the Accra law offices.

The interveners claimed that subsequent to the filing of the petition, Chevron, Shell, and Petron filed before the Manila Regional Trial Court (RTC) a civil suit assailing the validity of the assailed City Ordinance 8027 approved by Manila Mayor Jose "Lito" Atienza, respondent in the case.

The oil suppliers further said the Pandacan terminal, which was sought to be shut down by petitioner party-list group Social Justice Society, is the central component in the chain of supply of fuel, supplying 95 percent of the fuel requirements of Metro Manila and Luzon, and represents 50 percent of the total fuel demand of the entire country.

It is likewise the main source of aviation fuel for all aircraft at the Ninoy Aquino International Airport (Naia) and marine fuel for vessels at the ports of Manila.

The interveners further claimed that it would take long years and billions of pesos to put up an oil terminal equivalent to the Pandacan terminal, which allows a more efficient mobilization and transport of fuel products.

They further said the Pandacan Terminal itself is connected to miles and miles of underground pipeline worth hundreds of millions of pesos, linking it to the oil refinery and major depot in Batangas.

"A diversion of this underground pipeline to a new location, if ever it is possible (what with issues of right of way etc.) will likewise entail long years and billions of pesos. Finding a suitable place alone is already a headache if not next to impossible," the petitioners claimed, noting that other local government units (LGU) might easily pass similar zoning ordinances kicking out or limiting the operations of the terminal.

They also said the storage, supply and distribution of oil, being a vital and indispensable commodity, should not be left to the whims and caprices and variable rules and policies of every LGUs.

In the SC's decision penned by Associate Justice Renato Corona, the Court directed Atienza to enforce Ordinance 8027, which provides for the clearing of the Pandacan district of oil terminals.

The ordinance reclassifies portions of the Manila districts of Pandacan and Sta. Ana from industrial to commercial and directs certain business owners and operators, such as the three oil industry players, to cease from operating their businesses within six months from the ordinance's effectivity date.

The high court held that under the Local Government Code of 1991, it is the duty of Atienza as city mayor to "enforce all laws and ordinances relative to the governance of the city," adding that the edict has not been repealed by the Manila City Council.

The ordinance was enacted by the Manila City Council on November 20, 2001 and was approved on November 28, 2001. It took effect on December 28, 1001.

The removal of the oil terminals from Pandacan however did not happen after the City Government and the Department of Energy (DOE) entered into a memorandum of understanding with the oil companies, where they agreed to just "scale down" the oil terminals. (ECV/Sunnex)

For more Philippine news, visit Sun.Star Pangasinan.

(March 14, 2007 issue)
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