29 Sep 2004

ChevronTexaco Shows Court Environmental Impacts Caused by PetroEcuador at Judicial Inspection Site

NUEVA LOJA, Ecuador, September 29, 2004 - The Superior Court of Nueva Loja today conducted its sixth judicial site inspection as part of the environmental lawsuit filed against ChevronTexaco. The inspection took place at the Sasha-10 oilfield, where in April 1996 Texaco Petroleum Company (Texpet) conducted its remediation using in-situ stabilization technology as dictated by the government of Ecuador at the time. Following are the highlights:

  • ChevronTexaco submitted to the Court official documents demonstrating that the government of Ecuador and PetroEcuador had each approved the quality of the remediation conducted at the site.
  • The company also called the Court's attention to documents, previously submitted by plaintiffs, stating that local landowner Segundo Criollo confirmed that the Sacha-10 site was "well remediated," that "he is satisfied with the remediation" the water wells weren't contaminated, and there were no damages to report.
  • Adolfo Callejas, counsel for ChevronTexaco, underscored the fact that any environmental impacts at the Sacha-10 oilfield are most likely the result of actions taken by PetroEcuador after Texpet completed its remediation in 1996. PetroEcuador has been operator of the Consortium since 1990, and sole producer at the oilfields since 1992.
  • Callejas provided the Court with official documents from the National Oil Directorate detailing a number of oil-related impacts and activities that took place at Sacha-10 under PetroEcuador's ownership and after Texpet's remediation, including:
    • Oil Spill: On Sept. 25, 2000, ten years after Texpet ended its oil operations, an extensive spill occurred at the Sacha-10 well site caused by a rupture in PetroEcuador's power oil line that runs parallel to the pipeline. The rupture of this line, which typically carries about 3000 pounds of pressure, covered approximately 400 square meters with oil.
    • Three Workovers: On June 10, 1992, February 8, 1998, and October 3, 2003, PetroEcuador conducted three workovers - or repairs - of the SA-10 well. Conducting such repairs typically results in the discharge of oil, and involves of the use of chemicals that may cause environmental impact.
  • Approximately 300 meters from the Sacha-10 wellhead, Judge Novillo observed a local residence where the tenant is raising livestock in a corral covered with fresh oil, near a drinking water well. After inquiring as to the source of the oil, the tenant revealed to the judge that he had placed it there at the request of the landowner in order to stabilize the soil.

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