Shell flouts deal with unapproved pipework

Sunday July 24, 2005 07:02

by Elaine

- JEROME REILLY

SHELL has welded together more than 2,000 metres of high-pressure pipe on the controversial €300m Corrib Gas pipeline in Co Mayo in a shocking breach of its agreement with the Government.

The unauthorised work, discovered in the last few days, has soured relations between Government and the multi-national consortium led by the British-owned oil and gas company and will inevitably lead to sanctions.

Shell E&P Ireland Ltd (SEPIL) may have to dismantle all the welded pipework and "undo" all of the unauthorised works alleged to have been undertaken since the so-called 'Rossport Five' were jailed for contempt of court.

One of the central contentions of the jailed men and of protesters campaigning against the Shell Corrib Gas pipeline was that "unauthorised works" were taking place.

That claim now appears to have some validity after two inspectors carried out a major investigation on the orders of Noel Dempsey, Minister for Communications, Marine and Natural Resources.

The five men are now entering their fourth week behind bars at Cloverhill Prison, where they are likely to remain for the foreseeable future unless they purge their contempt. An estimated 2,000 protesters calling for the men's release marched in Dublin yesterday.

A letter from the Minister detailing the alleged breaches was hand-delivered yesterday to Shell's chairman in Ireland, Andy Pyle, demanding an immediate response before he decides what action will be taken against the company.

Minister Noel Dempsey has been enraged by what is regarded as "blatant flouting" of agreements by Shell.

His special team of technical advisers will keep a check on Shell on a daily basis. "Nothing will be taken for granted from now on. There has been a breach of trust," a senior Government source said.

The Sunday Independent has learned that the breach relates to what is known as a 'Phase Three Consent' issued by the Department of Communications, Marine and Natural Resources to SEPIL on July 9, 2002.

That consent specifically authorised some preliminary work including survey and setting out work, erection of right-of-way fencing, the making of trial bore holes, preparation of temporary access roads and the construction of temporary compounds. The permission clearly stated that no other works were to take place without specific approval.

Two officials sent to Belmullet last week found that more than two kilometres of pipeline were actually welded together, which is regarded by the Department as 'installation', a breach of the Phase Three Consent.

The Sunday Independent has learned that Shell wrote to the Department on May 12 last requesting permission to conduct further technical work. The Department acknowledged the request but did not agree to extra works or give any extra consent. They were stunned to discover last week that Shell had gone ahead with even more extensive works.

It is understood that in one weekly report sent in by Shell to the Department, there was a brief reference to "weld testing", and in a subsequent briefing letter there was a second reference to "welding", but the Department believed this was just testing work - merely a slight technical breach of the agreement. They were kept in the dark that more than a mile of pipeline had been welded together.

"There is shock and disappointment that Shell have breached consents at such a sensitive time and we will be monitoring them very, very closely from now on," a senior source said.

In a statement last night, Shell admitted there may have been what it termed "a technical breach" and expressed regret if this was proven to be the case.

"The Company stresses that it has been meticulous in complying with all of the conditions attached to the various consents issued to the project to date. The Company has acknowledged that welding had taken place in the area between the terminal site and the upper river crossing, within the wayleave through Coillte's lands," the statement said.

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Shell flouts deal with unapproved pipework