June 22, 2007
Chevron Responds to Comments by Amazon Defense Front Regarding U.S. Court Decision
For Immediate Release
San Ramon, Calif., June 22, 2007 - Chevron Corp, the defendant in the ongoing environmental trial in Ecuador, issued the following statement today in response to statements made by the Amazon Defense Front concerning the June 20 ruling by the U.S. District Court in New York regarding Chevron's arbitration claim against Petroecuador.
"Once again the plaintiffs' attorneys and the Amazon Defense Front have twisted the truth to serve their purposes. On this occasion, the FDA has completely misrepresented the substance of the Court's ruling in the U.S. The Court did not rule on the fundamental issue related to Chevron's claim for arbitration - that Petroecuador is obligated to indemnify Texpet (and Chevron) for any claims against it. Rather, the Court simply ruled that, in its opinion, this was not an issue that should be addressed by arbitration in New York.
"Moreover, nowhere in the U.S. Court's ruling does it state that Chevron must yield to the decisions taken by the Superior Court in Nueva Loja. This assertion by FDA is a complete fabrication.
"Finally, Chevron's claim that the Republic of Ecuador has breached its obligations under the 1995 remediation agreement and the 1998 release is still pending.
"Chevron will continue to vigorously pursue its rights in U.S Courts or through any other available legal avenues in order to compel the Republic of Ecuador and Petroecuador to honor their legal and contractual obligations. Furthermore, the U.S. Court's ruling, even if it survives appeal, does not absolve Petroecuador of responsibility for the operations of the oil consortium in which it was the majority owner."
On June 20 Chevron issued the following statement about the U.S. Court's ruling:
"Although we are disappointed in the initial decision today by the Federal District Court in New York, we remain confident that Petroecuador and the Republic of Ecuador will be compelled to fulfill their obligations both to indemnify us for any costs associated with the underlying litigation in Ecuador, and to step up to their responsibility for any and all environmental issues that may exist in the former concession areas.
"First, the court's decision today does not disagree that Petroecuador performed, enforced, and directly benefited from the joint operating agreement upon which our arbitration claims are based. We are reviewing the court's opinion and considering issues for appeal, as we believe that the court committed a number of legal errors in enjoining the arbitration despite this course of conduct.
"Second, the court did not render a decision on our counterclaim against the Republic for its breach of the 1995 Settlement Agreement, in which Texaco Petroleum Company and its affiliates were discharged from any and all future claims for environmental impact. We will continue to urge the court to move forward and grant Chevron the relief that it seeks on the counterclaim."
Back to top