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SC orders oil depot in Manila removed


(Updated 8:26 p.m.) The Supreme Court on Tuesday ordered the relocation of the Pandacan oil depot, which houses the oil storage facilities of the three major petroleum companies in the country.

"The continued stay of oil depots placed the residents of Manila in danger of being terrorist target," Supreme Court public information chief Theodore Te said in a news briefing as he read from the high tribunal's ruling. 

With 10 justices voting for and two against, the high court struck down as unconstitutional Manila's Ordinance No. 8187, which was enacted during the incumbency of former Manila Mayor Alfredo Lim.

The ordinance had provided for the continued stay and operation of oil the depot in the 33-hectare compound in Pandacan district.
 
Chevron, Shell, and Petron maintain storage facilities in the depot. 
 
"The incumbent mayor of the City of Manila is hereby ordered to cease and desist from enforcing Ordinance No. 8187," the ruling read.

"In coordination with government agencies and the parties involved, he is further ordered to oversee the relocation and transfer of the oil terminals out of the Pandacan area," it added.
 
The Supreme Court gave the companies 45 days to submit to the Manila Regional Trial Court Branch 39 a "comprehensive plan and relocation schedule."

The parties involved have 15 days to file a motion for reconsideration.

Big Three to comply

In a text advisory, Petron Corp. said it will heed the order to move its oil depot out of Pandacan. "Petron respects and will abide with the Supreme Court's decision to cease operation of Pandacan Terminal," the company said.
 
As early as 2011, Petron has been vocal in transferring its Pandacan facilities to another site within the next three years at a relocation cost of $500 million.
 
Petron earlier said it will move its oil depots in Rosario in Cavite, Navotas, Harbour Center, Limay, Batangas no later than January 2016.

Shell was quoted as saying in a "24 Oras" report Tuesday night that it was prepared to comply with the Supreme Court's ruling.

Chevron said it stopped as early as June the operation of its oil terminal in Pandacan.

Effect on fuel prices

Petron chairman Ramon Ang said the company's transfer of its facilities would not result in increased fuel prices, "24 Oras" reported.

Manila Mayor Joseph Estrada, who welcomed the news of the high tribunal's order, seemed to downplay the relation between the mandated relocation and cost of petroleum products.

"Kahit nandyan sila tumataas rin ang presyo ng langis. Depende yan sa world market ang presyo nila," Estrada said in the primetime newscast.

Senate Minority Leader Vicente Sotto III, an ally of Estrada in the political opposition, thought otherwise.

"[The price of fuel] will probably go up because the removal/transfer would entail a big cost," Sotto told GMA News Online in a text message.

Sought for comment on whether he expected fuel prices to go up as a result of the transfer, Sen. Sergio Osmena III, the chairman of the Senate Committee on Energy, said he had no idea.

"You have to ask Petron and Shell," Osmeña said in a text message.



‘Let depot stay’

Residents who live near the Pandacan depot—those who face the most serious danger in case of a terrorist attack—indicated that they would rather that the storage facilities stay.

"Marami pong natutulungan yang tatlong kumpanyang yan. Tuwing Pasko po may mga grocery kami rito.... Tulad ng mga drainage na 'yan 'pag nawala po yan pag nagka-sunog dito papano po yan?" a resident told GMA News.

An elderly man said people had never felt threatened by the presence of the oil depot in the community.

"[Pero] awa naman ng Diyos ang mga tao rito alerto pirme," he said. —with a report from Amita O. Legaspi/NB/VS/KBK, GMA News