19 Jun 2006

Findings from the Shushufindi 7 Expert Report Prove There is No Widespread Petroleum Contamination in the Area of the Well Site

QUITO, Ecuador, June 19, 2006 – Findings from the Expert Report for the Shushufindi- 7 (SSF-07) judicial site inspection demonstrate there is no evidence of widespread petroleum contamination and there are no risks to drinking water from oilfield operations Data from the Expert Report also validated that Texpet fulfilled its obligations under the 1995 Texpet Remediation Plan (RAP) in accordance with the criteria and specifications agreed upon by the Government of Ecuador and Petroecuador. The inspection conducted on September 14, 2005, was undertaken as part of an environmental lawsuit filed against Chevron Corporation.

The main conclusions of the SSF-7 well site judicial inspection are detailed in the report and are summarized as follows:

  • Analytical results for nine drinking water samples from nearby areas indicate that the water is free from hydrocarbons, demonstrating that there is no impact and no risk to public health due to petroleum operations. However, it should be noted that all water samples contained elevated levels of total and fecal coliform bacteria, which can cause serious health effects in people that consume the water. These bacteria are not related to oilfield operations but to poor sanitation practices.
  • Analytical results for soil samples collected during the Judicial Inspection, prove that soil does not contain concentrations of hydrocarbons, such as benzene, toluene, ethylbenzene and xylene (BTEX), or polycyclic aromatic hydrocarbons (PAH), or concentrations of metals that would pose a risk to public health. The evaluation criteria used for this evaluation are the same or stricter than those that were in place in Ecuador at the time of the Petroecuador-Texpet Consortium.
  • Contrary to allegations by plaintiffs of substandard oilfield operations, based on a review of reference information from various international petroleum organizations, such as the Regional Association of Oil and Natural Gas Companies in Latin America and the Caribbean (ARPEL) in 1992, the American Petroleum Institute (API) and government agencies in petroleum-producing countries (e.g., USEPA or Venezuelan regulations), the pits at the SSF-7 well site were constructed in a similar manner to pits constructed in other countries during that time period. In fact, earthen pits are still being used in surrounding countries, such as Venezuela.

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