09 Mar 2005

Court Inspects PETROECUADOR Oil Spill at Shushufindi-67 Evidence of State-Owned Company's Negligent Operations

PETROECUADOR Fails to Properly Operate and Maintain Oil Facilities

Nueva Loja, Ecuador, March 9, 2005 - Today, the Court, the lawyers, and residents who live near the Shushufindi-67 well site observed another example of the results of PETROECUADOR's incorrect oil field management practices. ChevronTexaco´s lawyer, Adolfo Callejas, showed evidence of a recent PETROECUADOR oil spill, which was caused by workers incorrectly operating the equipment. Instead of properly remediating the oil spill, workers for PETROECUADOR simply covered the oil-stained area with sand.

The Court also observed fresh oil inside a concrete catch basin, which had not been properly removed and transported to a production station in order to prevent other potential oil spills. Callejas pointed out that both facts constituted typical examples of PETROECUADOR's poor operating and maintenance practices at its facilities.

Highlights:

  • Texaco Petroleum Company (Texpet) remediated an oil pit in August 1996, in accordance with the Remediation Plan agreed to by the Ecuadorian government. At the pit, now covered with lush vegetation, Adolfo Callejas reminded Judge Efrain Novillo that although the Judicial Inspection at this site was requested by the plaintiffs´ lawyers, documents they previously presented to the Court as evidence stated that a "good remediation" had been conducted at the pit.
  • During the inspection Callejas showed the Court evidence of two repairs made to a group of pipelines PETROECUADOR uses for transporting oil to the Sacha Central Production Station. The pipelines run over a water source close to the well and Callejas pointed out to the Court that the damaged pipeline was a likely source of any water contamination or any other environmental damage in that area.
  • ChevronTexaco´s lawyer also pointed out that people living in the area face several serious problems due to the lack of basic infrastructure, the presence of bacteria in the domestic water sources, which is affecting the health of the people. Callejas asked the Court to order the technical experts of both parties to take water samples at the domestic water wells, streams and springs used by nearby residents.
  • Additionally, Callejas reminded the Judge, up to the present, that plaintiffs have not included analysis of any water samples in any of their reports presented to the Court despite the fact that water samples have been ordered at all previous 18 inspections. ChevronTexaco has conducted through water sampling at all Judicial Inspection sites.

ChevronTexaco is defending itself in a lawsuit brought by North American lawyers alleging environmental and health damages resulting from the involvement of Texaco Petroleum Company (Texpet) as a minority partner in an oil consortium with PETROECUADOR. Texpet ceased its operatorship in 1990 and exited all oil-producing activities in Ecuador in 1992, while PETROECUADOR has owned and operated the fields exclusively for the past twelve years. Yesterday's inspection was the 19th in a series of 122 inspections the Court began in August 2004.

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