19 Jun 2006

The Shushufindi Norte Expert Report States that Texpet Successfully Completed a Remediation Program and any Existing Impact is Associated with the Past 15 Years of Petroecuador's Operations

QUITO, Ecuador, June 19, 2006 – Laboratory results from expert report for the Shushufindi Norte judicial site inspection confirm there are no public health risks at the site and that any impacts associated with oilfield operations are the result of the past 15 years of operations by Petroecuador. The inspection conducted on December 8, 2004, was undertaken as part of an environmental suit filed against Chevron Corporation.

The main conclusions of the Shushufindi Norte production station judicial inspection are detailed in the report which includes analytical results proving the following facts:

  • None of the areas of affected soil examined during the Judicial Inspection were ever included in the Texpet Remedial Action Plan (RAP) and are solely the responsibility of Petroecuador. Of the six areas examined as part of the Judicial Inspection, five are associated solely with Petroecuador activities conducted after June 1990, when Petroecuador assumed exclusive operation of this site. Only one area is associated with operations conducted during the time of the Petroecuador-Texpet Consortium, as well as with Petroecuador's subsequent operations. This area was found to contain only highly weathered crude oil that poses no threat to human health or the environment.
  • No Impacts to Drinking Water Resources: Laboratory test results for water samples collected from household water wells and surface water in the vicinity of this production station demonstrate that there are no drinking water impacts by oilfield activities. However, coliform bacteria were found in these waters (unrelated to petroleum operations), and according to the guidelines of the World Health Organization (WHO), the presence of these bacteria could represent a serious human health hazard to the people consuming this water.
  • No Downstream Surface Water Impacts in spite of Current Petroecuador Oil Spills: During the inspection, active spills of crude oil were observed to be seeping into the Rio La Norte River on the west side of the production station. These spills are associated with oil spills occurring near the on-site flares, as well as spills associated with the on-going theft of white gasoline from the station. In addition, a very large oil spill was observed to the south of the site due to a recent pipeline break near well SSF-64. Nevertheless, no impacts were observed in the river water at a distance of only 200 m downstream of the station.
  • Produced Water Flow Increased Significantly During Operation by Petroecuador: The flow of produced water managed by the Shushufindi Norte station during the period of the exclusive operation of Petroecuador (1990 to present) is six times greater than the average flow managed during the time period of the Petroecuador-Texpet Consortium (1975 – 1990). Consequently, any effects associated with the historical operations of Texpet would have been insignificant compared to those that may have been caused by the produced water discharge of Petroecuador, prior to commencement of produced water reinjection in 2003.

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