9 Dec 2004

Court Sees Evidence of Major PetroEcuador Oil Spills at Shushufindi

Photographs Prove Workers for PetroEcuador Dumped Liquids Into Field and River Only One Day Before Judicial Inspection

NUEVA LOJA, Ecuador, December 9, 2004 - Yesterday the Superior Court of Neuva Loja viewed evidence of two major PetroEcuador oil spills in and near the Shushufindi North Production Station, which has been solely owned and operated by PetroEcuador for the last 14 years. These oil spills have affected two tributaries of the Aguarico River, which are sources of water for residents who live in the area. Adolfo Callejas, attorney for ChevronTexaco, said this clearly demonstrates that the contamination in the area was caused by PetroEcuador's operations.

The court also viewed produced water injection equipment, which was provided by Texaco Petroleum Company (TexPet) in 1996 as part of the agreed environmental remediation. That year, Texpet also remediated two areas of impacted soil at the station, which is used to manage the collection and separation of fluids from petroleum wells in the northern sector of the Shushufindi field.

Important points during the inspection:

  • Adolfo Callejas, attorney for ChevronTexaco, showed the court a trench (70 meters long x 3 meters wide x 6 meters deep) near the back of the production station that was dug by workers for PetroEcuador. PetroEcuador is apparently using this 1,260 cubic meter trench to collect oil that it has spilled at the production station.
  • PetroEcuador apparently tried to improve the appearance of this trench the day before the judicial inspection, however, even this was done in an environmentally irresponsible manner. Callejas presented as evidence to the Court, photographs taken the day before the inspection showing workers for PetroEcuador pumping oily water from this trench into the adjacent field, which drains into the 11th of July River less than 10 meters away. The Court also observed fresh oil recently spilled into the 11th of July River and oil spill containment boom placed by PetroEcuador to collect frequent oil spills.
  • Callejas also showed the Court a system of separation pits and a canal that PetroEcuador created in 1992 after it became the sole owner and operator of the production station. PetroEcuador used these pits and the canal to discharge treated produced water to the 11th of July River. Callejas also pointed out that PetroEcuador continued to use this system until 2003 despite the fact that Texpet designed a superior produced water re-injection system and provided the necessary equipment seven years before in 1996 as part of the remediation plan agreed to by the Ecuadorean government.
  • The court also viewed evidence of a recent major oil spill - probably several thousand barrels - that occurred approximately 800 meters south of the station. This major oil spill has not been cleaned up by PetroEcuador, and it continues to impact a tributary of the 11th of July River. Callejas stated to the court that this is further evidence of PetroEcuador's negative impact on the environment.
  • Callejas presented to the court an article published in "Diario Hoy" on December 7 that reports PetroEcuador has had 121 oil spills so far this year - an average of one every three days - in Shushufindi and four other major oil fields. The article also states PetroEcuador had 138 oil spills in the same fields in 2003.
  • During his tour of the Shushufindi North area the President of the Court was able to observe the sites where TexPet, in 1996, remediated two areas of contaminated soil using the silica encapsulation method. Callejas reminded the Court that all of the environmental remediation work was executed by Texpet was in accordance with the specifications of the Government of Ecuador and PetroEcuador, and that the government of Ecuador fully released Texpet from any additional responsibilities.
  • Finally Callejas stated to the Court and to the plaintiffs lawyers that only PetroEcuador was responsible for the hydrocarbon contamination that is currently present in and around the production station and in the two nearby tributaries of the Aguarico River.

The inspection of the Shushufindi North Production Station was the last scheduled judicial inspection of this year. Inspections will resume in 2005 at a date determined by the Court.

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