Mayor Estrada to ‘Big 3’ oil firms: Submit relocation plans

MANILA, Philippines—As far as Manila Mayor Joseph Estrada is concerned, the “Big 3” oil companies should be out of Pandacan by Jan. 31, 2016.

In a letter he signed in public Wednesday, Estrada asked Chevron, Petron and Shell to submit their relocation plans in line with a 2012 city ordinance and a Supreme Court order upholding another ordinance passed by the city council in 2001.

“Let this letter serve as your notice that regular monitoring will be conducted by the city government to determine the progress of your activities,” he said.

Estrada cited Ordinance No. 8283 passed by the city council in 2012 which reclassified the area where the oil depot is located from an industrial to a commercial zone, making the facility illegal in the area.

He also referred to a directive from the Supreme Court on the enforcement of Ordinance No. 8027 which was approved in 2001.

Part of the high court order read: “Essentially, the oil companies are fighting for their right to property. They allege that they stand to lose billions of pesos if forced to relocate. However, based on the hierarchy of constitutionally protected rights, the right to life enjoys precedence over the right to property.”

“The reason is obvious: Life is irreplaceable, property is not,” Estrada told running priest Fr. Robert Reyes; Pandacan parish priest Fr. Lari Abaco; Tony Santos, president of Advocates for Environmental and Social Justice (AESJ); lawyer Yab Evangelista; environmental advocates; and parishioners of Pandacan. They have been pushing for the relocation of the oil depot, citing the threat the facilities pose to residents in the area.

Estrada said the city government would not provide the oil firms an extension beyond January 2016. “If they don’t cooperate, we will demolish their facilities. That’s the truth, I’m not kidding. There’s already an order from the Supreme Court [which is] final and executory.”

The Manila government, under different leaderships, has been flip-flopping on the issue. In 2001, then Mayor Lito Atienza enacted Ordinance No. 8027 which asked the oil firms to move out of the Pandacan depot within six months. In 2006, the Manila zoning ordinance (Ordinance No. 8119) gave them until 2013 to move out. This was amended by Ordinance No. 8187 in 2009, during Mayor Alfredo Lim’s term, which allowed them to continue operating in the area.

In 2012, the city council passed Ordinance No. 8283, which reclassified the area where the facility is located into a commercial zone. Lim, however, vetoed the ordinance, a move that was overturned by the council. This did not faze Lim who insisted that under the charter of Manila, the mayor has the final say on whether or not an ordinance can be passed.

Dennis Lacuna, head of the City Planning and Development Office, said his office had issued a zoning permit to the oil companies, stating that they have only until the end of January 2016 to operate.

Of the three oil companies, only Petron has manifested a plan to move out of the depot.

In his letter, Estrada asked the oil companies to “furnish this office with your comprehensive plan and relocation schedule. (It) will be evaluated by the city government to ascertain if your planned activities will ensure that the facilities that adversely affect the environment and pose a danger to the health and lives of Manila’s residents, will be removed as soon as possible.”

“The signing is historic as it coincides with the birthdate of Gat Francisco Balagtas, a well-loved hero of Pandacan where he wrote his famous ’Florante at Laura,’” Santos of AESJ said.

Pilipinas Shell Petroleum Corp. and Chevron Philippines, meanwhile, declined to comment on Estrada’s order with Shell spokesman Roberto S. Kanapi saying they have yet to see or receive the order.

Chevron manager for policy, government and public affairs Raissa Bautista said in a text message to the Inquirer: “We can reply to his letter once we receive it. As of now, we haven’t received any. We only heard about it in the news.”

“Chevron continues to optimize its supply chain operations in the Philippines in order to remain competitive. We continue to explore our options,” Bautista added.

Petron Corp. has long announced that it expects to move out of Pandacan by 2016. It was earlier reported that the country’s largest oil company was spending some $500 million to complete its transfer to five different sites in Luzon, including Batangas and Manila North Harbor.

Pilipinas Shell, Chevron, and Petron have been under pressure to move their depot operations out of Pandacan due to safety concerns raised by various cause-oriented groups and the Church since the area is surrounded by largely populated communities.