Tag Archives: Chevron’s oil pollution of Ecuadorean Amazon

Oil Barrels Spilled in Amazon: Peru

It’s been a bad year for Peru’s Amazon – 2016 has seen seven oil spills there so far. And it’s only September. Most of these occurred across the Northern Peruvian Pipeline, in operation since 1977, which transports crude from the Peruvian Amazon to the Pacific Coast along 854 kilometers (530 miles) and is under the control of state-owned Petroperu. After the first two spills leaked around 3,000 barrels, in January and February 2016, the pipeline was shuttered for repairs. However, five additional oil spills have happened since then.According to Peru’s environment regulator OEFA, at least five oil spills were due to poor pipeline conditions, and illegal use of it after the closure. However, the oil company is blaming the latest two spills on vandalism by locals.,,

[M]ore than 190 oil spills have been recorded in Peru since 1997, according to Peru’s energy and mining agency. But the situation appears to have worsened since the beginning of 2016. After the two oil spills leaked 3,000 barrels – polluting nearby rivers and destroying the livelihood of locals – protests against pipeline’s poor conditions in February 2016 forced its shutdown.

When a third oil spill occurred in June 2016 – of 600 barrels – then-Minister of Environment, Manuel Pulgar Vidal, accused Petroperu of pumping crude illegally through the pipeline. The president of Petroperu was ousted, and a $3.5-million (around 3-million-euro) fine was levied.

But the disaster continued: During August and September 2016, four additional oil spills were recorded in the area. The last two occurred while thousands of indigenous people were demonstrating for withdrawal of the oil companies. According to the Peruvian government, Petroperu is responsible for at least five of the seven oil spills – the company has already been penalized more than $7 million. Petroperu continues to insist, however, that the oil spills were a result of extreme weather or vandalism by the locals.

The amount of oil spilled 2016 in the Peruvian Amazon – less than 10,000 barrels in seven spills – is a relatively small amount, compared for instance to the 650,000 barrels of oil that have fouls parts of the Amazon of Ecuador since the 1960s.

Repeated oil spills threaten Peru’s Amazon, DW.com, Oct. 2, 2016

Foreign Corporate Immunity: Chevron/Canada v. Ecuador

A Toronto judge halted on May 1, 2013 an effort to enforce a $19 billion Ecuadorean judgment against U.S. oil company Chevron Corp in Canada, finding that his Ontario provincial court was the wrong place for the case.  The action is the latest skirmish in a two-decade conflict between Chevron and residents of Ecuador’s Lago Agrio region over claims that Texaco, which Chevron acquired in 2001, contaminated the area from 1964 to 1992.

Citing Chevron’s promise to fight the plaintiffs until “hell freezes over, and then fight it out on the ice,” Justice David Brown of the Ontario court foresaw a “bitter, protracted” battle that would be costly and time consuming.  “While Ontario enjoys a bountiful supply of ice for part of each year, Ontario is not the place for that fight,” Brown wrote in his ruling on Wednesday. “Ontario courts should be reluctant to dedicate their resources to disputes where, in dollars and cents terms, there is nothing to fight over.”

Alan Lenczner, principal lawyer in Toronto for the Ecuadorean plaintiffs, said they would definitely appeal, arguing that a multinational company could not be immune from enforcement in a country where it earns so much. “Chevron Corp itself earns no money,” he said in a statement. “All its earnings and profits come from subsidiaries including, importantly, Chevron Canada.”  Chevron Canada’s assets are worth more than $12 billion, the plaintiffs had said, and alongside separate actions in Argentina and Brazil, they had sought to persuade the Ontario court to collect the damages awarded to them by the South American court.

Chevron, the second-largest U.S. oil company, has steadfastly refused to pay, saying the February 2011 ruling by the court in Lago Agrio was influenced by fraud and bribery. A related fraud case goes to trial in New York in October.  The Supreme Court of Canada has ruled that the country’s courts can recognize and enforce foreign judgments in cases where there is a “reasonable and substantial connection” between the cause of the action and the foreign court. Chevron called Brown’s ruling a “significant setback” to the Ecuadoreans’ strategy of seeking enforcement against subsidiaries that were not parties to the Ecuador case.  “The plaintiffs should be seeking enforcement in the United States – where Chevron Corporation resides. In the U.S., however, they would be confronted by the fact that eight federal courts have already found the Ecuador trial tainted by fraud,” Chevron said in a statement. Last month, a consulting firm whose work helped lead to the $19 billion award against Chevron disavowed some environmental claims used to obtain the judgment.

Excerpt, Judge halts Chevron-Ecuador enforcement action in Canada, Reuters, May 1, 2013

HardBall: Chevron and the Oil Pollution in Amazon

An environmental case that has pitted Chevron against Ecuadorean Amazon villagers for two decades has taken another bizarre twist, with an American consulting firm now recanting research favorable to the villagers’ claims of pollution in remote tracts of jungle.  The consulting firm, Stratus Consulting of Boulder, Colo., announced late Thursday (April 11, 2013) that it had originally been misled by Steven R. Donziger, a lead lawyer for the Ecuadorean villagers, and had decided to disavow its contributions to scientific research about whether there was groundwater contamination that sickened the residents in swaths of rain forest.

The move prompted the plaintiffs to assert that Chevron was coercing parties to the case, citing this as another example of strong tactics employed by the company as it tries to overturn an Ecuadorean judge’s decision two years ago that it pay $18 billion in damages, one of the largest environmental awards ever. In this instance, the plaintiffs claim that Chevron pressured Stratus to retract its assessment in exchange for dismissal of legal claims in a countersuit filed by Chevron made against the firm — claims that could have pushed the consulting business into bankruptcy.  “Stratus deeply regrets its involvement in the Ecuador litigation,” the firm said. It remains unclear whether this development with Stratus will have much impact on Chevron’s appeals, because the judge also based his ruling on other environmental assessments. The judge ruled that back in the 1970s, Texaco had left an environmental mess in oil drilling operations while operating as a partner with the Ecuadorean state oil company, and that Chevron, which bought Texaco in 2001, must apologize for and was liable for the damage.

Chevron has refused to apologize. In addition to appealing the decision in the Ecuadorean courts, Chevron also filed a countersuit in federal court in New York against Mr. Donziger and Stratus Consulting, accusing them of racketeering and fraud. Because Stratus has now retracted its statements on the Ecuadorean pollution, Chevron agreed not to pursue claims against the firm anymore. On Friday, Chevron filed witness statements from Douglas Beltman, a Stratus vice president, and Ann Maest, a Stratus scientist, in which they now say they were not aware of scientific evidence of groundwater contamination in the former Texaco concession area or of any adverse health impact to people from the operations.

Mr. Beltman stated that “at Donziger’s direction,” he drafted portions of a report in the first person as if it were written by Richard Cabrera, the supposedly independent expert, that detailed environmental damage for the Ecuadorean court. “Donziger stressed to me and Ann Maest the importance of Stratus ensuring that no one learn of Stratus’ involvement in any aspect of the Cabrera Report or Responses,” he said.  In an interview, Mr. Beltman said, “This settlement was extensively negotiated with Chevron and we think it’s fair and it’s not extortion.”  Mr. Donziger said he could not comment since he was a defendant in the racketeering case filed by Chevron.

It was not immediately clear what impact Stratus’s recantation would have on the case. Chevron’s appeal is before Ecuador’s highest court, the National Court of Justice, and the company is defending itself in courts in Canada, Argentina and Brazil to avoid paying damages in those countries. The plaintiffs are waging an international campaign seeking damages because Chevron has no assets in Ecuador itself…

Kent Robertson, a Chevron spokesman, said the statements should uphold the company’s position in the American racketeering case and in the international enforcement proceedings. “The declarations today show there is no scientific evidence to support the plaintiffs’ lawyers’ allegations,” he said.

Craig Smyser, a lawyer for some of the Ecuadorean plaintiffs, said the statements by the consulting firm “should have almost no effect” because the Ecuadorean judge relied on many expert reports other than the one that Stratus was involved in.  He attributed the decision by Stratus to repudiate its earlier work to the “immense financial strain that threatened the financial extinction of the firm, including a campaign by Chevron to discredit Stratus with various government agencies and businesses with which Stratus worked.”

Chevron has been playing hardball for at least four years. The company produced video recordings from pens and watches wired with bugging devices that suggested a bribery scheme surrounding the proceedings and involving a judge hearing the case. An American behind the secret recordings was a convicted drug trafficker.  But the oil company appeared to gain the upper hand three years ago when it won a legal bid to secure the outtakes from a documentary about the case, “Crude,” in which Mr. Donziger was shown describing the need to pressure a Ecuadorean judge and boasting of meetings with Ecuadorean officials.

In a sworn statement filed in an American court, Alberto Guerra, an Ecuadorean judge who heard the Chevron case in 2003 and 2004, accused Nicolas Zambrano, the judge who issued the $18 billion verdict against Chevron, of taking a $500,000 bribe from the plaintiffs. Mr. Zambrano denied the charge, and in his own affidavit, said that Mr. Guerra had told him that Chevron would offer him $1 million in return for a favorable judgment.  Chevron has denied offering any bribes.

By CLIFFORD KRAUSS, Consultant Recants in Chevron Pollution Case in Ecuador, NY Times, April 12, 2013

 

Chevron and Amazon: the $18 billion Ecuador Liability

The D.C. Circuit Court of Appeals  on June 12, 2012  (pdf) dealt another setback to Chevron over its $18 billion Ecuador liability, reversing a lower court decision that allowed the oil giant access to documents from a prominent consulting group for the Amazon rainforest communities that sued the company.