News Releases & Statements

July 2, 2007

Chevron Challenges Appointment of Richard Cabrera as Court Expert for the Second Phase of the Trial

Cabrera Shows a Clear Bias for Plaintiffs and Admits Receiving Fees Directly from the Amazon Defense Front

Nueva Loja, Ecuador, July 2, 2007- Chevron today demanded that the Superior Court of Nueva Loja dismiss the appointment of Richard Cabrera as the official expert for the second phase of the trial in the environmental lawsuit filed against this Company.

In its petition, Chevron demonstrated that Cabrera has shown a complete lack of integrity and a bias for the plaintiffs. Chevron also noted Cabrera's actions since he was appointed are in violation of procedures previously ordered by the Court, and that Cabrera is attempting to change the scope of his role beyond the authority granted by the Court.

Chevron presented evidence in its petition showing that on February 7, 2007, Cabrera sent a letter to the Presidency of the Superior Court of Nueva Loja declaring "having reached an agreement and having received honoraries from the Amazon Defense Front." It is obvious that the appointment of someone who has negotiated and received advanced payment of fees directly from an entity which is not a party to the lawsuit but is the potential beneficiary to receive any payments that might result from this litigation is absolutely inappropriate and warrants his disqualification.

In addition to this, Chevron argues that Cabrera cannot be a reliable or impartial expert because in the work plan he presented to the Court, he blames Texaco Petroleum Company's operations for all the environmental damages in the concession area and disregards Petroecuador's role in the consortium, and its role as sole owner and operator of the oil fields for the past 15 years.

Cabrera has also advised the court that he has decided not to visit all the sites originally ordered by the court for this phase of the process, which is another violation of the original order of the court defining the scope of Phase 2, which required a survey of all the fields. Cabrera also overstepped his directive from the Court by indicating he will present "a valuation of the remediation costs" and of damages not directly attributable to the oil operations. That is not part of the scope of Phase 2 originally ordered by the Court.

In sum, Chevron argues that the plaintiffs' endorsement of Cabrera, his acceptance of honoraries directly from the Amazon Defense Front and his clear bias in favor of the plaintiffs, along with the violations of the Court's orders regarding Phase 2 make it impossible for Chevron to expect a fair and impartial assessment by Mr. Cabrera during Phase 2. Therefore, because his appointment violates constitutional principles which guarantee due process, Chevron has demanded that the Court respect the Company's right to due process and a fair trial in accordance with judicial procedure, and disqualify Mr. Cabrera as the Phase 2 expert.

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