Dutch court rules against Shell, Exxon

Netherlands

ASSEN, March 1, 2017 – A local court in the Netherlands on Wednesday ruled that the Shell-ExxonMobil joint venture NAM is liable for immaterial damage in the gas-rich northern province of Groningen, which has been plagued by production-related tremors.

The case had been filed by 170 locals in the province in order to test the waters for future rulings on actual compensation. Tremors and minor earthquakes have been a regular occurrence since 1986, causing damage to homes and businesses.

Following a magnitude 3.6 tremor in 2012, NAM was ordered to pay for material damage. Furthermore, the Dutch government in 2015 decided to fix annual production at 24 bcm (847 bcf) for a period of five years to help lessen the impact of tremors.

Locals say the damage to homes and businesses has additionally caused physical and psychological complaints. The court agreed, pointing to the occurrence of tremors and minor earthquakes as being “very stressful.” Not shying away from responsibility, NAM in a statement said it would study the ruling.

A major gas producer, yearly output from the Groningen field peaked in 1975 at 87.5 bcm (3.1 tcm). In 2012, when production cuts were mulled, output was at a 20-year high of 52.9 bcm (1.8 tcf).