30 Sep 2004

Working Farm Serves as Site for Seventh Judicial Inspection: ChevronTexaco Details Environmental Impacts Caused by PetroEcuador

NUEVA LOJA, Ecuador, September 30, 2004 - The Superior Court of Nueva Loja today conducted its seventh judicial site inspection as part of the environmental lawsuit filed against ChevronTexaco. The inspection took place at Sasha-51, an active PetroEcuador oilfield bordered by a productive farm. In 1996, Texaco Petroleum Company (Texpet) conducted a remediation of four pits at the site using a combination of soil washing and in-situ stabilization technologies as required by the government of Ecuador. Sacha-51 was also the site of three PetroEcuador spills that occurred between February 2002 and November 2003 - well after Texpet's remediation was completed.

Following are the highlights:

  • In addition to submitting official records showing that the government of Ecuador and PetroEcuador had each approved the quality of the remediation conducted at the site, ChevronTexaco called the Court's attention to documents, previously submitted by plaintiffs, stating that on October 21, 1999, local landowner Nervo Aguilar confirmed that the pits at Sacha-51 were "well remediated."
  • Adolfo Callejas, counsel for ChevronTexaco, underscored that any environmental impacts at the Sacha-51 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 presented the Court with a report PetroEcuador issued to the government in November, 2003, detailing two oil spills that occurred in February 2002 and November 2003 under PetroEcuador's ownership and after Texpet's remediation. Additionally, Callejas asked Superior Court President Efrain Novillo authorize an investigation into an additional spill that is took place in November 2003.*
Date Cause Barrels spilled Area contaminated
02/21/02 Failure in the security valve 1120 barrels 300 sq. meters of the platform and surrounding area
11/16/03 Change in the pipe of a flow line shared between wells SA-51 and SA-182 20 barrels 1 hectare (5000 sq. m) of ground surrounding the local river bank. Impacts to the property of Miguel Macas, Angel Francisco Ríos.

*Another spill took place on November 7, 2003 that was not included in this report.

  • The Company also submitted to the Court a re-vegetation agreement signed between local landowners and PetroEcuador requesting that Texpet re-plant the sites with various hardwood trees, fruit trees and vegetables suitable for commercial use. Visible today are the results of that effort in the form of healthy Cedar, Guanabana, Mandarin, Banana, Coconut and Orange trees, among others.

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