Argentine town to vote on Shell damages
An Argentine town is planning to hold a referendum Sunday on whether to accept damages oil giant Shell has proposed for an oil spill that took place 10 years ago.
The referendum seeks to determine whether to ratify an extrajudicial settlement between the town and Shell, which has promised 9.5 million dollars in damages for a spill of over five million liters (1.32 million gallons) of oil off the coast of the Rio de la Plata estuary.
Magdalena is a town of 20,000 inhabitants off Rio de la Plata's shores, 100 kilometers (62 miles) south of the capital Buenos Aires.
The spill took place on January 15, 1999 after a tanker owned by the Anglo-Dutch company collided with a cargo vessel that produced an oil slick about 30 kilometers (18.6 miles) wide off the coast.
"If Shell pays, it's because it recognizes the facts. This agreement is a positive step because it ends an episode whose future remains uncertain," Magdalena mayor Fernando Carballo told reporters Wednesday, indicating he expected the financial compensation to gain two thirds support.
After the oil slick, some 500 residents of the town filed a class action lawsuit against Shell, seeking damages over alleged harm to their health, the environment and the economy.
Copyright 2009 AFP Global Edition
