MercoPress. South Atlantic News Agency

Shell agrees to pay for environmental damages caused by 2005 oil spill

The UK/Dutch corporation is divesting its interests Chile

A lawsuit filed against Shell Oil Company in 2005 by north Chile fisherman and shellfish divers has resulted in a compromise settlement requiring Shell to pay 1.2 million US dollars to the plaintiffs and repair environmental damages.

Shell has further agreed to pay another US$240,000 to Chile’s Treasury – which will be put towards conservation of the Chinchoro mummies.

Along with oil surfacing on beaches in April of 2005, the Antofagasta litigators also accused Shell for underground diesel seepage into ponds located on company owned costal lands.

While some damages will be repaired, the final agreement that was reached in July states that Shell does not claim responsibility for the actions leading up to the land pollution. Shell argued that it could not be responsible for pre-existing contamination.

Despite the agreement to pay for some environmental reparation, a representative for the fisherman and divers, Ignacio Poblete expressed dissatisfaction with the settlement, saying Shell was not held accountable for previous actions leading to the land contamination.

Shell also noted that some previously approved restoration has already been underway.
The Treasury, which acted as a third party in the lawsuit and was represented by the State Defence Council (CDE), also requested compensation for the damages of the public beaches.

The proposed agreement, stating that Shell will pay US$240,000 to the Treasury for environmental use, must be approved by the Ministry of Finance and still awaits party signatures. Authorities decided that the settlement money will help fund the conservation and dispersion of the Chinchoro mummies, a conservation project with which the CDE has had much experience.

Previously in 2006, Codelco North Division had settled on a US$230,000 agreement with the CDE – which also went towards the Mummy project – for damages caused to an archaeological site in Taira.

The recent verdict follows Shells announcement earlier this month that it has decided to divest itself of its current holdings in Chile. After years of Latin American prominence (it has been operating in Chile since 1919), last year Shell sold its holdings in Honduras, Guatemala and Nicaragua, leaving existing locations in only Chile, Argentina and Brazil. And now the company is looking for investors to take over their Chilean assets.
 

By Dustin Zarnikow - Santiago Times