27 Jul 2005

Court Observes Several Pits Left Unremediated by PETROECUADOR at Shushufindi-4 Well Site

PETROECUADOR Has Not Met Its Environmental Responsibilities

Nueva Loja, Ecuador, July 27, 2005 - During the Judicial Inspection at well site Shushufindi 4, The President of the Superior Court of Nueva Loja, Efrain Novillo, was able to verify that PETROECUADOR has not assumed responsibility for repairing environmental damage caused by its operations at this site during the last 15 years.

The inspection of this well site, where one can see several unremediated pits, was requested by the plaintiffs. The attorney for Chevron Corporation established for the Court the fact that only PETROECUADOR is now responsible for the current environmental condition of Shushufindi-4.

The highlights:

  • Adolfo Callejas, attorney for Chevron, presented documentation to the Court that clearly proves that the Shushufindi-4 well site was never included in the ¨Scope of Environmental Remediation Work¨ of 1995. This document specifies the environmental remediation work Texaco Petroleum Company (Texpet) was responsible for in proportion to its minority interest in the consortium with PETROECUADOR. The document lists other sites where Texpet performed environmental remediation work; work which has since been shown to be effective.
  • Chevron's attorneys showed pictures of open pits in the United States (Louisiana, Texas and Montana), Canada and Venezuela. The images show that the technology used by Texpet in Ecuador in 1970s and 1980s was also used in other countries. These pictures firmly rebut the false claims of the plaintiffs that Texpet used obsolete technology and methods during its operation in Ecuador.
  • Callejas also specifically pointed out that the "Memorandum of Understanding between the Government of Ecuador, PETROECUADOR and Texaco Petroleum Company," clearly states: "Texpet will not be responsible for environmental impacts or effects not included in the Scope of Work and will be liberated of any responsibility of any impacts with the signing of the Contract for the Execution of Environmental Remediation Work and Liberation of Obligations."
  • During the tour of the area around the well the Court observed three closed pits and one open pit containing water. To this day, PETROECUADOR has not remediated the site in accordance with responsibilities it assumed as majority partner of the consortium and in contracts signed in 1995 regarding environmental remediation of installations of the former consortium.

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