09 Nov 2005

The Inspection of the Aguarico Station Took Place Amidst a Dangerous Release of Gas Liquids From a Poorly Operated Petroecuador Gas Burner

Conclusive proof of wrong operational practices by the state owned company were witnessed by the Court, the Indians, the colonos, and the press

Nueva Loja, November 9, 2005. Yesterday, Wednesday, November 9, the Superior Court of Nueva Loja conducted the Inspection of the Aguarico Production Station, where it was possible to confirm the negligence with which Petroecuador operates its facilities, as well as the adverse effects its operations have on both the plant's security and the environment. It was also possible to confirm the existence of the Water Treatment and Reinjection Plant, which in 1996 was designed, installed, built, and delivered in full working condition as part of the Remediation Program implemented by Texaco.

At the beginning of the Judicial Inspection, Chevron's counsel affirmed in front of all present that "Petroecuador's wrong operational practices in the last 15 years have contributed to environmental impacts, both of the Station's facilities, as well as of neighboring areas". According to official information delivered by PETROECUADOR, since 1995, 16 oil spills have occurred at this Station and surrounding areas under the state-owned company's exclusive operation.

Other Highlights:

  • An unexpected discharge of highly flammable liquids in a Petroecuador burner occurred during the Inspection, allowing the Court, the press and other people taking part in the Inspection to witness the spill of white gasoline. The discharge endangered people's security, and threatened the environmental conditions in the area. Only minutes before, Chevron's counsel had pointed the Court's attention to a switched-off burner that emanated gas as a proof of the negligent handling of the oil facilities.
  • A few meters from the burner, the Judge and those attending the Inspection were able to observe a large pit with oil residues and trash, which, according to Petroecuador's documents and drawings delivered by the plaintiffs to the Court, was built by the State owned company in 1995. The same was true of the watercourse and the pipes used for discharge of liquids deposited in this pit. The way in which PETROECUADOR discharged its production waters and other residues from the Station was made evident through a series of photographs delivered to the Court by one of the plaintiffs' witnesses who wrongly accused Texaco of the problem, in spite of the fact that the company ceased operating in 1990.
  • Contrary to plaintiffs' recent allegations, during the Inspection the Court guaranteed the participation of over 30 colonos who represent the indigenous communities Siona, Secoya, and Cofan.
  • The Court's President made it clear both to the plaintiffs and the rest of the people in attendance of his decision to limit the number of people present at the Inspections. He made this request for security reasons related to oil operations at the Station, where oil is produced and managed together with other flammable materials. "This is an oil station which cannot be put at risk because of a simple legal proceeding", clarified Judge Efraín Novillo.

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