January 21, 2008
Petroecuador is Responsible for Environmental Impacts in the Oriente
Plaintiffs' Attorneys and Supporters of the Lawsuit Against Chevron Must Explain Why They Ignore Petroecuador's Obligations
Quito, January 21, 2008 – In an ad published in Ecuadorian newspapers on January 20, Chevron challenged the motives of the attorneys and activists sponsoring an environmental lawsuit against Chevron. The environmental record of Petroecuador's activities in Ecuador's Oriente region speaks for itself and demonstrates that Petroecuador – not Chevron – is responsible for environmental impacts in the Oriente.
Indeed, in May 2006 Manuel Muñoz, Director of National Environmental Protection Management, Ministry of Energy, testified before the National Congress of Ecuador and admitted that, "For over 30 years Petroecuador has done absolutely nothing to remediate those pits under its responsibility."
Given Petroecuador's history of poor operational practices which have negatively impacted the environment in the Oriente, Chevron asks why the attorneys and activists sponsoring the lawsuit against Chevron deliberately ignore the fact that Petroecuador is the one to be blamed for the environmental impacts in the area of the former consortium – an area that once was operated by Texaco Petroleum Company, but which has been operated by Petroecuador for the last 17 years.
The current environmental situation in the Oriente is a consequence of Petroecuador's operations. According to information provided by the Petroecuador's Amazonian District, 882 spills attributable to Petroecuador have been recorded in the six year period between 2000 and 2006.
Plaintiffs' attorneys have already admitted that Petroecuador is responsible for the environmental conditions in the Oriente. Pablo Fajardo, one of the plaintiffs' lead attorneys, has publicly recognized that: "Since Texaco left from here, Petroecuador has produced more damage and more disasters than Texaco." [cite, June, 2003]
"While the plaintiffs' attorneys and the Amazon Defense Front boast of acting in defense of the environment and their clients, they are intentionally standing in the way of a clean up of the Oriente," said Ricardo Reis Veiga, Managing Counsel for Chevron Latin America. "First, they refuse to file a claim against Petroecuador. Then, they fraudulently blame Chevron for the consequences of Petroecuador's poor operating practices. And, when Petroecuador makes plans to perform remediation, Plaintiffs ask the Court to intervene and stop any clean up. This farce must come to an end."
Background
Texaco Petroleum Company, the minority partner in the consortium (37.5%), ended its participation in 1992. After completing a $40 million remediation program under the supervision of the Ecuadorian authorities, the Government of Ecuador released the Company from all responsibility or liability. With this release, the Government of Ecuador acknowledged that Texaco had satisfactorily completed a remediation program within its scope of responsibility relative to its minority interest in the consortium.
Petroecuador, the majority partner in the consortium (62.5%), assumed the responsibility for the remediation of all the remaining sites. Petroecuador, however, has not fulfilled its obligations. Petroecuador, which has been the exclusive operator of the oil fields since 1990, has spilled millions of gallons of crude oil during the last 17 years.
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