WEST TOWER CONDOMINIUM VS.

FIRST PH INDUSTRIAL CORP

FACTS:

First Philippine Industrial Corporation (FPIC) owns two pipelines, (1) White Oil Pipeline (WOPL)
system and (2) Black Oil Pipeline (BOPL) System which transports petroleum products from
Batangas to Metro Manila and other near provinces. In May 2010, a leakage from one of the
pipelines was suspected by the residents of West Tower Condominium, located in Makati as they
started to smell gas in the condominium. The leak worsened eventually causing them to evacuate
the premises. After the investigation of  University of the Philippines-National Institute of
Geological Sciences (UP-NIGS), through the invitation of the City of Makati, it was found that there
was a leak in FPIC’s WOPL about 86 meters from West Tower.

FPIC admitted that the leak was from WOPL, which was already closed by Oct. 24, 2010. The
company denied any liability, stating that the leak was due to the construction activities on the
roads surrounding West Tower.

West Tower filed the petition for issuance of a Writ of Kalikasan on behalf of the residents of West
Tower and in representation of the Barangay Bangkal, Makati City which is near the area as well,
and other public interest groups who expressed their concern on the environmental issues
involved.

Petitioners prayed that FPIC and its board of directors and officers and First Gen Corporation (FPC)
and its board of directors be directed to:
1. Permanently cease and desist from committing acts of negligence in the performance of
their functions as a common carrier;
2. Continue to check the structural integrity of the WOPL and to replace the same;
3. Make periodic reports on the WOPL and their replacement of the same
4. Rehabilitate and restore the environment
5. Open a special trust fund to answer for similar and future contingencies in the future

The Court issued the Writ of Kalikasan with a Temporary Environmental Protection Order (TEPO)
where FPIC and FPC was enjoined to cease and desist operating the WOPL, check the structural
integrity of the pipeline and make a report thereon.

FGC and its directors and officers, and FPIC and its directors all submitted reports in compliance
with the writ. FPIC, in particular, reported that they conducted several tests through the DOE to
check the structural integrity of the pipes and installed several systems for preventive maintenance
measures. FPIC also already ceased operations on both WOPL and BOPL. Though the DOE clarified
and confirmed that only the WOPL system is subjected to the Writ of Kalikasan and TEPO.

West Tower invoked the precautionary Principle and asserted that the possibility of a leak of BOPL
system which would bring catastrophic damage is enough to order the closure of the system.

In the meanwhile, there were also  criminal and civil cases against the respondents.
The Court remanded the case to the Court of Appeals and the Court of Appeals recommended the
following:
1. That FPIC submit appropriate certification from the DOE for the safe commercial operation
of the BOPL and WOPL;
2. That the Inter-agency Committee on Health evaluate the remediation plan of CH2M Hill
Philippines for FPIC and that FPIC strictly comply with the  permits issued by the
Department of Environment and Natural Resources.
3. That West Tower’s Prayer for the special trust fund be dismissed.
4. That FPC be not held solidarily liable under TEPO
5. That the individual directors and officers of  FPIC and FPIC be not held liable in their
individual capacities.

FPIC submitted the required DOE Certification. West Tower contested that the tests done and
preventive systems installed by FPIC were insufficient and that the DOE was biased and incapable
of determining WOPL’s structural integrity.

The DOE submitted a letter recommending activities and timetable for the resumption of WOPL
operations, incorporating the help of other governmental agencies like the MMDA and DPWH.
 
ISSUE/S:
Procedural
1. Whether West Tower has the legal capacity to represent other petitioners and whether
residents of West Tower and Barangay Bangkal; (YES)
Substantial
2. Whether a Permanent Environmental Protection Order should be issued to direct the
respondents to perform or to desist from performing acts in order to protect, preserve, and
rehabilitate the affected environment;  (NO)
3. Whether a special trust fund should be opened by respondents to answer for future similar
contingencies; (NO)
4. Whether FGC and the directors and officers of FPIC and FGC may be held liable under the
environmental protection order; (NO)

RULING:

Procedural
1. Yes. Affected Residents of West Tower and Barangay Bangkal have the requisite concern to
be real parties-in-interest to pursue the instant petition. West Tower represents common
interest of its unit owners and residents who were affected by the oil leakage and is
empowered to pursue actions in behalf of its members under RA 4726, The Condominium
Act. Meanwhile, the other parties are entitled to be furnished copies of all the submissions
to the Court as the filing of the writ of kalikasan does not require a petitioner be directly
affected by an environmental disaster. The rule allows juridical persons to file the petition on
behalf of persons whose constitutional right to a balanced and healthful ecology is violated, or
threatened with violation.
 2. No. The court adopts the activities and measures prescribed in the DOE letter dated August
5, 2014 to be complied with by FPIC as conditions for the resumption of the commercial
operations of WOPL. The determination of whether or not the operations of WOPL be
continued depends on the results of the test DOE will conduct. DOE is also capable in
determining structural integrity of the pipeline as it not only empowered to do so but also
has invited the help of other administrative agencies who have expertise on the matter.
Precautionary principle does not apply as there is already a direct link between cause and
the effect of the damage with full scientific certainty. A mere short-form integrity audit of
the DOE is not sufficient in dismissing the TEPO. Only after an extensive determination by
the DOE of the pipeline’s actual physical state that the factual issue on the WOPL’s viability
can be settled.

3. No. A trust fund is limited solely for the purpose of rehabilitating or restoring the
environment and thus cannot be used for similar future contingencies

4. No. FGC is not liable under the TEPO, without prejudice to the outcome of the civil and
criminal complaint. In a petition for the writ of kalikasan, the Court cannot grant the award
of damaged to individual petitioners.

DISPOSITIVE PORTION:

1. Motion for Partial Reconsideration denied.

2. Motion for Reconsideration with Motion for Clarification is partly granted.
3. CA Report and Recommendations are adopted with the modifications.
1. DOE ordered to oversee the strict implementation of preparatory tests, and other
inspections.
2. FPIC directed to undertake and continue the remediation, rehabilitation and
restoration of the affected Barangay Bangkal environment by complying with the
measures and directives of the DENR.

DISSENTING OPINION:

Leonen, J:
The Writ of Kalikasan has served its function and therefore is functus officio. The respondents
already know what to do to future leaks and all that is left is for them to execute. By asking DOE and
FPIC to repeat previous procedures implies that our function is to doubt the executive agencies will
do what they have committed to undertake and are legally required to do. This is a breach of
separation of powers. We do not endow ourselves with sufficient expertise and resources to check
in admin. Agencies technical conclusions without basis.
Notes:
1. RULE 7 of the Rules of Procedure for Environmental Cases:
Writ of Kalikasan:  Sec. 1 Nature of the writ- The writ is a remedy available to a natural or
juridical person, entity authorized by law, people’s organization, non-governmental
organization, or any public interest group accredited by or registered with any government
agency, on behalf of persons whose constitutional right to a balanced and healthful ecology
is violated, or threatened with violation by an unlawful act or omission of a public official or
employee, or private individual or entity, involving environmental damage of such
 magnitude as to prejudice the life, health or property of inhabitants in two or more cities or
provinces.

2. DOE Secretary: Carlos Jericho L. Petilla

DOE is empowered by SEc. 12(b)(1), RA 7638 to formulate and implement policies for the
efficient and economical distribution, transportation, and storage of petroleum, coal, natural
gas.

3. DENR Secretary: Ramon Paje

DENR is an agency mandated to implement RA 6969 (Toxic Substances and Hazardous and
Nuclear Waste Control Act of 1990) and RA 9275 (Philippines Clean Water Act of 2004)