Tag Archives: Amazon Ecuador

Ecuador Oil Drilling in the Amazon: the Yasuni National Park

Yasuni National Park.  Image from wikipedia

Ecuador’s parliament on Thursday (Oct. 3, 2012) authorized drilling of the nation’s largest oil fields in part of the Amazon rainforest after the failure of President Rafael Correa’s plan to have rich nations pay to avoid its exploitation.  The socialist leader launched the initiative in 2007 to protect the Yasuni jungle area, which boasts some of the planet’s most diverse wildlife, but scrapped it after attracting only a small fraction of the $3.6 billion sought.

The government-dominated National Assembly authorized drilling in blocks 43 and 31, but attached conditions to minimize the impact on both the environment and local tribes. Though Correa says the estimated $22 billion earnings potential will be used to combat poverty in the South American nation, there have been protests from indigenous groups and green campaigners.  About 680,000 people have signed a petition calling for a referendum.  “We want them to respect our territory,” Alicia Cauilla, a representative of the Waorani people who live around the Yasuni area, said in an appeal to the assembly. “Let us live how we want.”  Correa has played down the potential impact of oil drilling in the area, saying it would affect only 0.01 percent of the entire Yasuni basin…

Oil output in OPEC’s smallest member has stagnated since 2010 when the government asked oil investors to sign less-profitable service contracts or leave the country. Since then, oil companies have not invested in exploration.  State oil company Petroamazonas will be in charge of extraction in blocks 43 and 31, which are estimated to hold 800 million barrels of crude and projected to yield 225,000 barrels per day eventually. Ecuador currently produces 540,000 bpd

Excerpt, By Alexandra Valencia, Ecuador congress approves Yasuni basin oil drilling in Amazon, Reuters, Oct. 4, 2013

 

Argentina against Chevron: the Amazon Rainforest Judgment

An Argentine judge embargoed Chevron Corp.’s assets in Argentina to carry out an Ecuadorean court order that awarded $19 billion to plaintiffs in an environmental damage lawsuit in the Amazon, a lawyer said Wednesday (Nov. 7, 2012).  Judge Adrian Elcuj Miranda ordered the freezing of Chevron’s assets in Argentina as plaintiffs try to collect the judgment won in Ecuador last year, Argentine lawyer Enrique Bruchou told reporters in a conference call.  The order states that all the cash flows from sales and bank deposits be frozen until the $19 billion is collected, Bruchou said. The order applies to 100 percent of Chevron’s capital stock in Argentina, 100 percent of its dividends and its entire minority stake in Oleoductos del Valle. It also includes 40 percent of any current or future money that Chevron Argentina holds as well as 40 percent of all its crude sales.

Bruchou said the decision in the largest environmental suit in the world should send a strong message to foreign investors that they must apply the same environmental standards wherever they do business. Similar lawsuits have been filed this year in Canada and Brazil.  “We’re making history in the preservation of the environment,” Bruchou said.  “This is a ruling that sets an example. What we’re telling the world is that in Latin America we want to demand that whoever comes to exploit does it following the same health an environmental standards as they do in their countries of origin,” he said.

Chevron officials said the company knew of neither a filing by the plaintiffs nor an order from a court in Argentina. They also said Chevron’s operations in Argentina had nothing to do with the case in Ecuador.  “The plaintiffs’ lawyers have no legal right to embargo subsidiary assets in Argentina and should not be allowed to disrupt Argentina’s pursuit of its important energy resources,” said James Craig, a Chevron spokesman for Latin America and Africa. “The Ecuador judgment is a product of bribery, fraud, and it is illegitimate.”  Chevron has refused to pay the sum stemming from waste water pollution and oil industry waste, saying that fraud marked the trial and that Texaco Petroleum Co. mitigated the environmental damage long before 2001, when it became a Chevron subsidiary.

Ecuador’s highest court has upheld the ruling, while the plaintiffs have accused Chevron of dirty tricks designed to subvert the lower-court ruling.  The plaintiffs say Texaco, and now Chevron, remain responsible for environmental contamination and illnesses resulting from the operations of an oil consortium from 1972 to 1990 in Ecuador’s rainforest…

The plaintiffs will begin a suit in Colombia in the coming days and are also preparing legal actions in Asia, Europe and elsewhere, Fajardo said.  “Environmental crime will not go without punishment and we’re going to chase them anywhere in the world,” he said.  Chevron argues that a 1998 agreement Texaco signed with Ecuador after a $40 million cleanup absolves it of liability and that Ecuador’s state-run oil company is responsible for much of the pollution in the oil patch Texaco quit more than two decades ago.

Chevron is a major player in Argentina producing about 26,000 barrels of crude and 4 million cubic feet of natural gas daily, the plaintiffs have said.  The company is also key for the South American country’s future energy needs, especially after it agreed to work with the state-run YPF energy company to develop shale reserves that could be the third-largest in the world.

Argentine judge embargoes Chevron assets on spill, Associated Press, Nov. 7,2012

See also Chevron US Courts

Chevron, 50 Activists and their Email Accounts

The Electronic Frontier Foundation (EFF) and EarthRights International (ERI) asked judges in California and New York today to quash subpoenas issued by Chevron Corporation to three email providers demanding identifying information about the users of more than 100 email accounts, including environmental activists, journalists, and attorneys. The information Chevron wants could be used to create a detailed map of the individuals’ locations and associations over nearly a decade.

The subpoenas are the latest salvo in the long-running battle over damage caused by oil drilling in Ecuador. After years of litigation, an Ecuadorian court last year imposed a judgment of over $17 billion on Chevron for dumping toxic waste into Amazon waterways and causing massive harm to the rainforest. Instead of paying, Chevron sued more than 50 people who were involved in the Ecuador lawsuit, claiming they were part of a conspiracy to defraud the oil giant. None of the individuals represented by EFF and ERI has been sued by Chevron or accused of wrongdoing.

“Environmental advocates have the right to speak anonymously and travel without their every move and association being exposed to Chevron,” said Marcia Hofmann, EFF Senior Staff Attorney. “These sweeping subpoenas create a chilling effect among those who have spoken out against the oil giant’s activities in Ecuador.”

The motions to quash filed today asked the courts to reject the subpoenas, pointing out that anonymous speakers who are not parties in a lawsuit receive particularly strong First Amendment protections. EFF first won court recognition of this protection in Doe v. 2theMart.com in 2001. Chevron’s subpoenas also violate the legal protections for the right of association for political action that were developed during the civil rights era.

“The courts have long recognized that forcing activists to reveal their names and political associations will chill First Amendment rights and can only be done in the most extreme situations,” added Marco Simons, Legal Director of ERI, which has provided legal assistance to third parties affected by the Chevron litigation in two international proceedings. “We look forward to having those longstanding principles applied in this case so that people can engage in journalism and political activism and assist in litigation against environmental destruction without fear that their identities and personal email information will be put at risk.”

EFF and ERI are challenging the subpoenas to Google and Yahoo! in the U.S. District Court for the Northern District of California and the subpoena to Microsoft in the U.S. District Court for the Northern District of New York. .

EFF and ERI Fight to Quash Speech-Chilling Subpoenas from Chevron, Press Release of Electronic Frontier Foundation, Oct. 22, 2012

See also Chevron and Amazon

Chevron and Amazon: the $18 billion Ecuador Liability

The D.C. Circuit Court of Appeals  on June 12, 2012  (pdf) dealt another setback to Chevron over its $18 billion Ecuador liability, reversing a lower court decision that allowed the oil giant access to documents from a prominent consulting group for the Amazon rainforest communities that sued the company.-

Chevron’s Oil Spills in Amazon, destroying the paper trail

A new document reveals that Chevron officials ordered the destruction of key documents as part of a broad scheme to hide the extent of the company’s pollution in Ecuador’s Amazon, says Amazon Defense Coalition.  A company memorandum from Ecuador dated July 1972 ordered that all reports related to oil spills “are to be removed from the Field and Division offices and destroyed.” From 1964 to 1990, Chevron operated a large concession in Ecuador’s Amazon region that included an extensive network of pipelines, wells and separation stations.

Chevron operated in Ecuador under the Texaco brand. In February, an Ecuador court found Chevron liable for dumping billions of gallons of toxic waste into the Amazon, decimating indigenous groups and causing a spike in cancer rates. Damages in the case, which is under appeal in Ecuador, were set at $18 billion. The extent and environmental impact of the disaster dwarfs the size of the BP spill in the Gulf of Mexico, according to experts.

The memo ordering the destruction of documents was written by R.C. Shields, at the time the director of production in Latin America for Texaco and Chairman of the company’s Ecuador subsidiary. The memo directs Chevron personnel to report only oil spills that are “major events” which are defined as those that “attract the attention of press and/or regulatory authorities.”  The directive also orders that no reports are to be kept on a “routine basis.”  The Shields memo emerged via discovery in U.S. federal court.

Texaco reportedly caused hundreds of oil spills in Ecuador, many of which were “remediated” by setting them on fire, according to the book Amazon Crude, which was published in 1989 and which documented Texaco’s substandard operational practices. The company also has admitted to pouring sludge from the waste pits along dirt roads.

The Shields memo ordering the destruction of documents infuriated members of the legal team representing 30,000 Amazon residents who are suing the oil giant.  This memo is a vivid illustration of the culture of deceit that characterizes Chevron’s destruction of Ecuador’s Amazon over a period of decades,” said Pablo Fajardo, the lead Ecuadorian lawyer. “Deception remains the operating principle for Chevron in Ecuador even today as the company continues to flout its legal obligations to remediate toxic pollution that threatens thousands of innocent lives.”

Karen Hinton, the U.S. spokesperson for the Ecuadorians, said the memo was part of a “pattern of corrupt activities” by the company that include a fraudulent remediation in the 1990s, the fabrication of scientific evidence, attempted entrapment of a trial judge and threats to put judges in jail if they didn’t rule in the company’s favor.  “Chevron acted like the Mafia in Ecuador,” she added. “This repugnant memo is just a small piece of the company’s scheme to defraud Ecuador’s government and its people.”

Chevron’s Ecuador Fraud Highlighted In Memo Ordering Destruction of Documents Related to Contamination, Says Amazon Defense Coalition, PR NewsWire, Dec. 14, 2011