September 20, 2005
Shushufindi Sur Judicial Inspection Results Show No Petroleum-Related Health Risks at Texpet Remediated Sites
QUITO, Ecuador, September 20, 2005 - The findings of one of the largest site inspections to date reveal that Texpet operations have had no negative impact on human health or the environment and that the operating practices followed throughout the time Texpet was the operator of the station were consistent with industry standard operating practices of the time.
Sara McMillen, Chevron's senior scientific advisor for the case, said, "The Shushufindi Sur production station is the 13th expert report submitted by Chevron in the case, and as we anticipated, the results prove there is no harmful petroleum chemical contamination of surface water or drinking water, and no threat to human health or the environment."
"This expert report also provides detailed information rebutting plaintiffs' allegations regarding practices employed by Texpet when it controlled oil field operations in the Oriente up to 1990. The report affirms that the practices used by Texpet were then and still are widely accepted and used in many places throughout the world" said McMillen.
The investigation covered an area of more than 430 acres surrounding the Shushufindi Sur production station. Laboratory results prove there is no adverse impact to the surrounding rivers, swamps, soils, groundwater, or drinking water, with the exception of soils in 3 small areas (0.3 acres total) associated with a drainage ditch to the west of the station. The affected soils were in areas not included in the 1995 Remedial Action Plan agreed to by Texpet, the Government of Ecuador and Petroecuador and are thus entirely Petroecuador's responsibility. In fact, a mixture of oil and water was seen in the ditch on the day of the inspection, indicating that Petroecuador's current operating procedures result in releases to the ditch and that Petroecuador should further assess this area.
According to the expert report, filed with the Superior Court of Nueva Loja on June 20, 2005, "These results disprove the claims made by the Amazon Defense Front that portions of the Rio La Sur and the adjacent swamp were impacted by petroleum from Texpet operations. In fact, there is no evidence of any such contamination in this area."
The only source of potentially harmful health effects to people found during this judicial inspection was the highly elevated concentration of coliform bacteria found in local household water wells. As has been found at every judicial inspection site to date, this bacterial contamination is caused by inadequate sanitary conditions and is in no way related to oilfield activities. Guidelines published by the World Health Organization (WHO), state that the presence of these bacteria signals microbial contamination that may pose a serious hazard to the health of people drinking the water or using it for personal hygiene.
The expert report also specifically addresses the legitimacy of oil field practices used by Texpet when it operated the field. During the period in which Texpet served as operator of the Shushufindi Sur production station (i.e., from 1975 to 1990), the management of produced water, the use of earthen pits with natural clay lining, and the flaring of non-usable natural gas were standard practices in the oil industry worldwide, and these practices continue to be used in many countries today, including Latin America and the United States. Specific supporting facts are provided in the report for each operational practice.
Superior Court President Efraín Novillo is scheduled to conduct a total of 122 inspections in connection with an environmental lawsuit filed against the company. Shushufindi Sur is a production station still in use by Petroecuador. At this site, produced water and crude oil from well sites throughout the field is processed and separated. Produced water is reinjected into the ground, the crude oil is marketed, and most of the natural gas is shipped by pipeline to a commercial gas plant.
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 on July 23, 2005.
REPORT HIGHLIGHTS
SHUSHUFINDI SUR TEST RESULTS SUMMARY
The Shushufindi Sur production station site inspection revealed that there is no widespread petroleum contamination. There are no hazards to public health or the environment from Texpet operations. Texpet fulfilled its obligations under the terms of the 1995 Remedial Action Plan. The facility is still being operated by Petroecuador, and all remaining environmental issues are Petroecuador's responsibility.
Scope
The Shushufindi Sur production station is located approximately 1 km south of the town of La Victoria in the Province of Sucumbios. The Shushufindi Sur site inspection included testing at four areas, all of which were outside Texpet's scope of work under the 1995 Remedial Action Plan (RAP). A total of 54 samples were taken, analyzed and reported from the site.
Inspection Date: 27 October 2004
Test Result Highlights:
No Risk to Public Health or Environment
- Local Drinking water wells are free of petroleum hydrocarbons.
- No evidence of widespread petroleum contamination: The investigation studied an area of 175 ha (more than 430 acres) around the Shushufindi Sur production station. Laboratory analysis proves there are no petroleum impacts to the surrounding rivers, swamps, soils, groundwater, or drinking water, with the exception of 3 small areas (totaling 0.12 ha or 0.3 acres) associated with a drainage ditch to the west of the station.
- The three areas were not included in the RAP, and are Petroecuador's responsibility.
- During the judicial inspection, active oil pits located at the west end of the station were observed to be overflowing and a mixture of oil and water was observed in the drainage ditch, indicating that Petroecuador's operating practices still result in discharges to the former drainage ditch
- While samples from these areas did test positive for hydrocarbons, they do not pose a risk to human health or the ecosystem.
- Coliform bacteria found in the local household water wells pose the most serious health threat: The only source of potentially harmful health threat found during this judicial inspection was highly elevated concentrations of coliform bacteria found in local household water wells and surface water. The presence of coliform bacteria in these water sources is not related to oilfield activities.
- No Ecological Impacts: No contamination or ecological impacts related to past or present oil production activities were observed in the rivers located north (Río Victoria) and south (Río La Sur) of the production station. Natural bacterial sheens were observed, which commonly appear on the banks of marshes in climates such as that of the Oriente region. Testing proved that the sheens observed were not caused by petroleum operations.
Past Texpet Operations Complied with the Regulations and Practices in Place at the Time
During the period in which Texpet served as operator of the Shushufindi Sur production station (i.e., from 1975 to 1990), the management of produced water, the use of earthen pits with natural clay lining, and the flaring of non-usable natural gas were standard practices in the oil industry worldwide, and these practices continue to be used in many countries today, including Latin America and the United States.
- Management of produced water by means of treatment in separation ponds and subsequent discharge to the environment after appropriate discharge limits were met was a common practice worldwide during the 1960's to the 1990's. The practices employed by Texpet when it operated the Oriente oilfields were consistent with industry practices.
- Use of Earthen Pits: During the 1960s to the 1990s, the use of earthen pits was a standard practice in the oil industry worldwide, including the United States, where, in 1984, 125,000 oilfield pits still existed. This was particularly true in areas like the Oriente where the soil is clay-based and highly impermeable.
- Use of Flares to Burn Unusable Natural Gas: Throughout the world, flares are even today recognized as an efficient and safe method to eliminate excess natural gas. In oilfields around the world approximately 108 billion cubic meters of gas associated with oil production is burned each year. Presently only 8% of the natural gas at the Shushufindi Sur station is burned.
Remediation Program:
- Texpet complied with the remediation requirements for the Shushufindi Sur production station as specified in the Remedial Action Plan: Texpet completed the remediation activities for the affected soil areas in the station and provided produced water treatment and re-injection equipment to Petroecuador in October 1996. The Government of Ecuador and Petroecuador approved the completion of the remediation activities.
- No Further Remediation Needed: Results of this judicial inspection clearly demonstrate that there are no environmental impacts associated with past Texpet operations that pose a risk of harm to human health or the ecosystem, or damage to surface water or groundwater resources. Therefore, there is no need for any further remedial action.
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