Mossville, a historically black community in Louisiana, US, has accused South Africa’s petrochemicals giant Sasol of not being fair to people wanting to move from the area surrounding its Lake Charles facility, an allegation Sasol has denied.
They are calling on Sasol to negotiate a “fair” compensation for them to relocate from their homes following the expansion of the Lake Charles Chemical Complex.
As part of expanding its Lake Charles facility, an ethylene and petrochemicals producer for soaps, shampoos, and detergents, Sasol agreed more than 10 years ago to offer residents cash for their properties in order for them to move. However, some of those who have remained want more money for their properties.
Maryum Jordan, a senior managing attorney at Earth Rights International, which represents property owners who did not accept the original terms of the buyout, said Sasol should renegotiate with the remaining residents and help them to relocate.
Jordan told Business Times the settlement made by Sasol did not take into account the value of the homes of residents who had to leave the community that was the anchor of who they are. “For the people who still have properties there, in a way, they are stuck,” he said.
“They cannot sell their properties. Who wants to move to an area that has been largely demolished and is subjected to toxic pollution? We believe Sasol owes a just compensation to the property owners.”
They [Sasol] really don’t want to come to the table. I know business is in the business of making money but there is a moral compass. If you can’t relate to that, how can you do business? That is what Sasol is missing
— Carolyn Peters, a Mossville resident and president of Concerned Citizens of Mossville,
Sasol should negotiate with the individual property owners and not follow a predetermined formula devised when the relocation process began, she said. “Sasol must return to the negotiation table. People want to relocate and are interested in the sale of their homes, but they cannot sell because of the economic conditions.”
However, Sasol said the consultations with the community had been above board, and from the outset of the Lake Charles Chemical Complex, they were kept abreast of the development.
It blamed a handful of Mossville property owners, which it said were vocal detractors and not residents, for falsely claiming to represent all residents. “They want more money for their properties than the Voluntary Property Purchase Program (VPPP) design allowed and mistakenly believed that miscasting Sasol’s engagement with Mossville would help them achieve their objectives. This small group falsely claimed to represent all of Mossville,” said the group.
Sasol said it launched its VPPP in 2013 at the request of the community for interested property owners outside of Sasol’s planned expansion area with generous offers for their properties so that they could move if they wanted to do so.
The company said while many residents accepted offers for their properties, many others chose to stay. While the VPPP has been closed for several years, it had been a “success”, judging from the uptake, it said. “By 2015, 80% of Mossville’s eligible homeowners had participated in the programme and more than 580 property owners accepted offers from the programme at significantly above-market prices.”
Homeowners received an offer equal to the appraised value of the property plus 40% to 60%, with a minimum appraised value of $100,000 (R1.6m) for owner-occupied homes in addition to allowances and bonuses to ease the burden of relocation.
Given the volatile external environment that includes lower demand for our products, Sasol is currently not pursuing property acquisitions in proximity to our Lake Charles Chemical Complex.
— Sasol
Carolyn Peters, a Mossville resident and president of Concerned Citizens of Mossville, did not participate in the buyout. She said the immediate concern was that Sasol was not willing to negotiate. “They really don’t want to come to the table,” she said, adding that Sasol needed to have a moral compass for the community.
“I know business is in the business of making money but there is a moral compass. If you can’t relate to that, how can you do business? That is what Sasol is missing.”
However, Sasol said it has a solid track record of listening and responding to community concerns, pointing to October 2022, when Sasol representatives began conversations with three Mossville property owners to discuss their desire for Sasol to purchase their properties.
It said the property owners declined the original offers from the VPPP. “From the beginning, Sasol was clear that the company would not open another VPPP or community-wide programme. The property owners supported this approach.”
Sasol said together with property owners it agreed to approach the property acquisition request the same way it would any other property transaction in order to ensure fairness and equity. “However, given the volatile external environment that includes lower demand for our products, Sasol is currently not pursuing property acquisitions in proximity to our Lake Charles Chemical Complex,” said Sasol.
Peters said the environmental damage by Sasol affected the air, water, and soil in the area and was irreversible, adding that the company was exempt from environmental laws under the Trump administration. “We can’t grow crops and raise livestock,” she said.
However, Sasol said it complied with all state and federal regulations at a minimum and, in many cases, operated below its permitted emission allowances. “This is due to our investment in the best available emission control technology and striving to minimise emissions every day,” she said.
“We also actively invest in research and product stewardship technologies to protect the health of our communities, going beyond regulations to continuously improve our safety, shipping, and handling practices.”
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