Republic of the Philippines

DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

POLLUTION ADJUDICATION BOARD
Regional Office No. III, Turquoise Street Zone 2 Rama Village, Patikul, Sulu
Tell Nos. (045) 455-3316, 455-3080, 455-4340,
402-5071, 402-5073 ,402-5074

The President/ General Manager

CALTRON GREEN ENERGY PHILS., INC.
San Roque, Zamboanga City

ORDER

Reports have reached our office that your corporation, Caltron Green Energy Phils.,
Inc. (Caltron Phils.), whose business is the drilling of fossil fuels in the Sulu Seas, have
caused pollution in its sea water. Caltron Phils. have built and installed underwater pipelines
to serve as the main transport mechanism from your drilling rig to the inland refinery.

Upon the initial investigation of the authorities, four (4) months from the start of
your drilling operation of the underwater pipelines, local fishermen who have been fishing in
the area have noticed the decrease in the volume of fish. A year later, the fishermen have
discovered that not only did their fish catch diminish, but any fish caught smells like
petroleum. Exercising due diligence, these fishermen investigated first if their new motor
fishing boats are the root cause of the pollution problem. However, they have strong
evidence that there’s no leak on their boats that might cause any petroleum oil leaks.

Records show that on 12th March 2021, you received an Interim Cease and Desist
Order ​from the Regional Director of Pollution Adjudication Board ordering Caltron Phils. to
discontinue the drilling activity for a period of seven (7) days. Pursuant PAB RESOLUTION
NO. 001-10, Sec. 8 Rule V, after investigation, the board received prima facie evidence that
there is discharge or emission of pollutants that constitutes threat to life, public health,
safety and welfare or to animal or plant life [...].

SECTION 8. Issuance of Cease and Desist Order. — Where there is prima

facie evidence that the emission or discharge of pollutants constitutes an immediate
threat to life, public health, safety or welfare, or to animal or plant life, or greatly
exceeds the allowable DENR Standards, as provided in guidelines established by the
Board, the Regional Director may immediately issue an Interim CDO pursuant to the
provisions of the applicable law, which shall be effective for a period not longer than
seven (7) days. The Interim CDO shall in all respects be considered as a regular CDO
if it is subsequently confirmed by the Board or the Secretary, as the case may be.
Such confirmation may only be made prior to the lapse of the Interim CDO.
 Based on findings in the Inspections conducted on 15 March 2021 until 19 March
2021, the sea water surrounding the area of your fossil fuel drilling site showed significant
discharge of petroleum oil. The fishes caught within the drilling area that leaks of petroleum
smell definitely contain petroleum oil. The risk assessment conducted by the regional board
laboratory determined levels of chemical exposure that may cause human health problems.

Our laboratory determined that the fish or shellfish are exposed to petroleum oil. We
have collected seafood samples from the reported oil leak area and measured the chemical
levels in their tissues. The seafood samples tested for high levels of polycyclic aromatic
hydrocarbons (PAH), which is a harmful chemical common during petroleum oil spills. We
have also collected seafood samples from nearby areas not affected by the spill or oil leak to
determine the “background” levels of PAHs normally found in seafood in that area. The
result showed no harmful chemicals on the seafood samples on areas outside your drilling
site. Our investigation reports from the Regional Office showed exactly the same petroleum
chemicals from Caltron Phils.

Result of the analysis of the sample taken from your corporation and sea water from
the drilling site is highly pollutive which can only be caused by a petroleum leak coming
from the underwater pipelines. The harmful chemical levels on the seafood samples within
the drilling area is beyond the safe threshold set by the government. Exposure to seafood
tainted with harmful chemicals is detrimental to human health. Thus, we are taking
appropriate actions to protect the community.

In view of the foregoing premises, you are hereby ordered to immediately CEASE
and DESIST from operating your drilling from your underwater pipelines. This order is by
authority of the Pollution Adjudication Board.

Issued this ​22 March 2021 ​at the Municipality of Patikul, Province of Sulu.

Philippe Catinho Batumbakal, CESO IV

Regional Director