News Releases & Statements

September 20, 2005

Expert Report for Sacha-85 Judicial Inspection Show No Petroleum-Related Health Risks

QUITO, Ecuador, September 20, 2005 - Laboratory results from the expert report for the judicial site inspection of Sacha-85 reveal that there is no risk to human health or the environment due to Texaco Petroleum Company (Texpet), operations. This expert report, the eleventh submitted by Chevron in the case so far, was filed with the Superior Court of Nueva Loja on June 10.

Sara McMillen, Chevron's senior scientific advisor for the case, said: "The Sacha-85 site was not included in the remediation program undertaken by Texpet in 1995. At the time of the program, the Government of Ecuador and Petroecuador determined that no further action was required at Sacha-85. Subsequent to the end of Texpet's role as operator of the Sacha 85 site in 1990, Petroecuador closed two pits. Existing hydrocarbons found during the inspection were within these pit areas; however, these hydrocarbons were considered immobile and do not pose a health or environmental threat.

While the data revealed no threat from hydrocarbons in the soil, contamination due to human and/or animal waste was discovered in every water sample analyzed. This contamination causes symptoms consistent with those identified by local residents in their original complaint. This finding aligns with the mounting scientific evidence that health concerns reported in the area are more likely due to waste bacteria or other biological contamination in water. rather than petroleum exposure dating back to the time of Texpet's operations more than a decade ago.

Conclusive findings from the Sacha-85 inspection were contained within the eleventh expert report filed with the Court. Superior Court President Efraín Novillo is scheduled to conduct a total of 122 inspections in connection with an environmental lawsuit filed against the company.

Samples were tested in the United States at Severn Trent Laboratories in Houston, Texas, and at NewFields, in Rock Island, Massachusetts. Reports containing testing data and expert conclusions were filed with the Court.

REPORT HIGHLIGHTS

SACHA-85 TEST RESULTS SUMMARY

Laboratory tests for Sacha-85 site revealed that there is no risk to human health or the environment due to Texpet operations. The Sacha-85 site was not part of Texpet's Remedial Action Plan (RAP). Petroecuador assumed operation of the site in 1990, and retains responsibility for the site today.. Water contaminated by bacteria from human or animal waste is the biggest threat to human health found at this site.

Scope

The Sacha-85 site inspection included testing at four areas, none of which were included within Texpet's scope of work under the 1995 Remedial Action Plan (RAP). All 4 areas were evaluated at the time of the RAP and designated for No Further Action by by the GOE, Petroecuador and Texpet on the basis that areas 1 and 2 were first opened in 1990 and were closed by Petroecuador prior to the RAP in 1995 and areas 3 and 4 were sampled at the time of the RAP and were without hydrocarbon impacts. A total of 3 water and 17 soil and sediment samples were taken, analyzed and reported from the site during the judicial inspection.

Inspection Date: February 17, 2005

Test Result Highlights:
No Risk to Public Health or Environment
  • No risks to public health or environment exist from Texpet's operations at the Sacha-85 site.
  • Drinking water used in the area does not contain unsafe levels of petroleum hydrocarbons.
  • A potential public health risk was discovered from the presence of bacteria from human and animal waste in drinking water. Abundant microbiological contamination was detected in all the samples of drinking water that are being used by the area inhabitants. This includes water that is provided by Petroecuador through a pipeline.
  • Due to Petroecuador's operations, degraded petroleum is present in subsurface soils. The petroleum does not present a risk to human health or the environment because:
    • Petroleum degraded in the subsoil is virtually immobile.
    • The areas containing degraded petroleum in the subsoil are covered with clean soil.
    • Any crude oil residue is significantly degraded and concentrations of BTEX, PAHs and metals are either not detectable or below international criteria.
  • No hydrocarbons were detected in Area 4 and therefore it represents no risk for the public health or environment.
Analysis of Results
  • Areas 1 and 2, which were operated by Petroecuador after Texpet ceased operations, contain degraded hydrocarbons in the subsoil.
  • Analysis of an underground water sample and one drinking water well sample (there was only one drinking water well in the vicinity) near the Sacha 85 site was free from PAH´s and BTEX.
Remediation Program:
  • The area surrounding Sacha 85 was declared outside the scope of work of Texpet's remediation program and remains Petroecuador's responsibility today. Documented evidence proves that areas 1, 2, 3 and 4, were designated by the governmental authority as needing "No Further Action" (NFA) at the time for the following reasons:
    • Areas 1 and 2: were opened in 1990 (after Texpet relinquished operatorship) and were closed by Petroecuador between that year and before the Texpet remediation program in 1995. According to the conditions of the RAP the final conditions of closing areas 1 and 2 are the responsibility of Petroecuador.
    • Areas 3 and 4 were sampled at the time of the RAP and were without hydrocarbon impacts.

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