27 Oct 2005

Texaco Complied With all of the Government's Requests for the Remediation of Shushufindi-27

Petroecuador installed a gas burner in the nineties

Nueva Loja, October 27, 2005 - During Judicial Inspection No. 29 at Shushufindi-27, an active Petroecuador site, the President of the Superior Court of Nueva Loja, Dr. Efraín Novillo, was able to observe the sites where Texaco Petroleum Company (Texpet) conducted its remediation works. These consisted of two oil sites which had been included in the Remedial Action Plan agreed upon by the government of Ecuador. The approval and acceptance of the remediation performed at Shushufindi-27 is included in the Acts of November 22, 1996, and March 20, 1997; both documents were signed by the Ministry of Energy and Mines and by Petroecuador.

Other Highlights:

  • At the present time, the Banano mini-station built by Petroecuador operates next to Shushufindi-27. Counsel for Chevron made reference to the gas burner which is part of the station and was installed by Petroecuador after Texpet ended its operations in the country. Once again, the parties were reminded that according to the Hydrocarbon Law, gas is a State property.
  • Despite the fact that the burner was installed by Petroecuador and that gas is a State property, Chevron presented a graphic to dismiss plaintiffs' argument that gas burning through burners like this one is an obsolete practice. Volumes of gas burnt around the world in 2004 were shown; particularly in oil rich areas of Africa and the Middle East where most gas is burnt. This is a very common and effective practice used all over the world to safely control non-commercial gas.
  • As part of the Inspection, the Court was able to observe a chart regarding Total Petroleum Hydrocarbons (TPH) and their concentrations in nature and in products for human consumption. TPHs can be found in high concentrations on grass, dry oak tree leaves, pine needles, petroleum jelly, and baby oil. This graphic helped illustrate the fact that TPH concentrations in and of themselves are not a proof of toxicity or risk.
  • At the end of the Inspection, Chevron's counsel presented Official Document No. 425-SPA-96, which had been signed by the Minister of Energy on October 28, 1996. The document details the agreement for the environmental remediation signed between the Government and Texpet, and the socio-economic compensation that was provided to the Amazonian communities. This included a light aircraft that was delivered for the service of the Indigenous Foise, Fcunae, Opip, and Onhae nationalities. The document also mentions other compensations (four health and educational centers and two river ambulances) delivered by Texpet.

Back to top