18 Oct 2005

Scientific Evidence from First Year of Judicial Site Inspections Proves People Not at Risk from Areas Remediated by Texaco

While Scientific Analysis Shows Remediation was Effective and Soil and Water are Found to be Safe from Petroleum, Evidence Shows Dangerous Bacteria Levels from Human and Animal Waste

QUITO, Ecuador, October 18, 2005 - Laboratory results from the first 17 judicial site inspections demonstrate that Texaco Petroleum Company (Texpet) carried out an effective remediation program, and there is no risk to human health or the environment in areas remediated by Texpet. The laboratory data, contained within expert reports filed with the Superior Court of Nueva Loja, prove that Texpet's remediation program was in accordance with all applicable Ecuadorian environmental criteria, as well as applicable standards in the U.S., other Latin American countries and the World Health Organization.

The judicial inspection process is part of an ongoing environmental lawsuit brought against Chevron relating to the past involvement of its Texpet subsidiary as a minority partner in an oil producing consortium with Petroecuador, the state oil company. The company turned over operations to Petroecuador in 1990, and exited the country in 1992. Superior Court President Efraín Novillo is scheduled to conduct a total of 122 inspections of oil field sites.

"The science speaks for itself: To date all legitimate laboratory analysis verifies the effectiveness of the Texpet remediation program, and neither people nor the environment are at risk from oil contamination in the areas remediated by Texpet," said Rodrigo Perez, legal representative of Texaco Petroleum Company. "We look forward to completing all 122 inspections so that we can demonstrate beyond all doubt that Texpet acted appropriately, fulfilled all its obligations, and the allegations made by the plaintiffs are groundless."

According to Sara McMillen, Chevron's senior scientific advisor for the case, "The experts submitting reports on behalf of Chevron have met the highest scientific standards to ensure that the results accurately characterize the conditions in the Oriente region of Ecuador, where Texpet operated 15 years ago. These experts have consistently found that Texpet's remediation met all applicable standards, and there is no health risk associated with the areas remediated by Texpet. And while the drinking water at every site has met applicable Ecuadorian, World Health Organization and U.S. Environmental Protection Agency standards for hydrocarbons (including benzene and PAH's) and heavy metals, the laboratory reports do show the presence of high levels of fecal bacteria in water supplies from human and animal waste. These type of bacteria pose a serious danger to people's health."

Susana Struve, an Ecuadorian biologist and environmental scientist with the global environmental engineering firm CH2M Hill, who is advising Chevron, said, "Based on my review of all of the technical reports submitted thus far, and from my observations of the judicial inspections, I can say without hesitation that the technical experts for Chevron are carrying out the sampling and analysis at a level that is consistent with the highest scientific standards. For this reason, Chevron's findings so far are beyond reproach."

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