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Chevron appeals 9.5 billion USD fine from an Ecuador court

Monday, March 14th 2011 - 02:09 UTC
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Indigenous groups argue that Texaco dumped billions of litres of toxic materials destroying their live hood  Indigenous groups argue that Texaco dumped billions of litres of toxic materials destroying their live hood

US oil giant Chevron has launched a legal appeal against a 9.5 billion US dollars fine by an Ecuador court for polluting much of the country's Amazon region.

Chevron accused lawyers and supporters of the indigenous groups who brought the case of “corrupting” the trial. It said the judgement contained “numerous legal and factual defects”.

The oil firm Texaco, which merged with Chevron in 2001, was accused of dumping billions of gallons of toxic materials into unlined pits and rivers.

Protesters said the company had destroyed their livelihood. Crops were damaged, farm animals killed and cancer increased among the local population, they said.

An appeal by Chevron had been widely expected. A statement by Chevron said the firm would pursue efforts at an international tribunal and in the US courts to prevent the ruling from being enforced.

No payment can be made during the appeals process, which could drag on for years.

The appeal is the latest twist in the case, which was brought on behalf of 30,000 Ecuadoreans nearly two decades ago.

Ecuadorean Indian groups said Texaco dumped more than 18 billion gallons (68 billion litres) of toxic materials into the unlined pits and rivers between 1972 and 1992.

The plaintiffs said the company's activities had destroyed large areas of rainforest and also led to an increased risk of cancer among the local population. The trial began in 2003 after almost a decade of legal battles in the US. At that time, a US appeals court ruled that the case should be heard in Ecuador.

Environmentalists hope the case will set a precedent, forcing companies operating in developing countries to comply with the same anti-pollution standards as in the industrialised world.
 

Categories: Environment, Latin America.

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  • GeoffWard

    Chevron has a significant reputation for good practice in its management of its oilfields.

    It did not operate in Ecuador during the period in question, though it later absorbed Texaco, absorbing its assets though not necessarily its liabilities. (The dissolution of eg. mining companies in the USA has been a long-understood route to removing liability and transfering responsibility for cleanup to the state).
    In this case the rationale was not avoidance of responsibility but was economies of scale.

    Since those times - a quarter of a century ago - Ecuadorian companies have mined the same watersheds for oil etc, and have contributed massively to the pollution load of this upper amazonia region. This fact is conspicuously absent from statements by the Ecuador government or its lawyers.

    However, this is a World Biosphere Reserve geographical area and it deserves special treatment.

    Probably time for the Government and the company to bite the bullet and go 50:50. . . . . .after all, BP is expected to 'do the right thing'. . . . all it means is more expensive petrol/gas at the gas station.

    Mar 14th, 2011 - 03:59 pm 0
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