Caltex and the other Philippine oil companies proposed to the Philippine government’s Board of Energy in 1986 that the oil companies be granted a Pesos 0.01 per liter increase in the transhipment cost of fuel throughout the Philippines.  The Pesos 0.01 additional cost was supposed to be used by the oil companies to upgrade the safety standards of tanker vessels  like “Vector”.

The Board of Energy issued resolution no. 86-06 in October 1986, more than a year before the “Doña Paz” tragedy, and the purpose of the “netback” was supposed to be the avoidance of accidents “which could result . . . .  in the loss of lives and the pollution of coastal waters.”  The questions:  How much “netback” did Cal-Tex receive?  Did Cal-Tex properly monitor how the money was spent on the “Vector”?   What happened to the “netback” money?

Cal-Tex and Steamship Mutual have tried very hard to kill the Texas and Louisiana cases.

Cal-Tex Philippines was a wholly owned subsidiary of Cal-Tex Petroleum of Texas, and Cal-Tex Investment & Trading Limited.  Cal-Tex Philippines took orders from the parent company as far as chartering of vessels like “Vector” was concerned.