Chevron - Ecuador: Court Ruins Chance To Help Ecuador's Poor

http://www.zennie62.com - As some of you know, we've been following the Chevron - Ecuador story for some time now. To recap, the problem is that in the 1960s Texaco produced oil out of that country and through 1990 and in partnership with the Country of Ecuador . During that time, there were oil spills and economic damage due to oil production. Texaco spent $40 million in "environmental remediation" which is another term for carrying out a cleanup program.




Chevron purchased Texaco in 2001 for 46.3 billion, thus assuming Texaco's work and responsibilities in Ecuador. By that time, Ecuador's then-new state-owned petroleum organization Petroecuador assumed responsibility for the oil wells that were once the product of the partnership. But the problem is that since that time and through today, oil spills and environmental damage have continued, but Petroecuador has done nothing to either prevent the occurrence of or clean up what was done.




Meanwhile, the Country of Ecuador has moved to work on three fronts:


1) Nationalize the oil industry via Petroecuador

2) Kick out American oil companies like Occidental Petroleum and take over their production facilities.

3. Sued Chevron Texaco to get money to pay for environmental damage that their own state-owned oil company, Petroecuador, caused


The third point is the focus of my blog. Ecuador's suing Chevron to have them pay the afforementioned damange. To that end, they were assisted by a lawyer by the name of Steve Donziger, who had been working on the case as an "American Legal Advisor", but who has also admitted his own financial ambitions as he could gain $5 billion from a victory . The lawsuit -- valued at $16.5 billion by one estimate -- has been the focus of much legal movement. The latest action by Chevron had it file an appeal to have Ecuador enter into arbitration discussions regarding the level of liability each party is responsible for. But there's one large problem.


The appellate court doesn't understand the contractual relationships. It calls Chevron a "third party."




What!?!


When Chevron purchased Texaco it essentially became Texaco, with all of its obligations and problems. Thus, it's not a third party. But even with this fact, the U.S. Court of Appeals for the Second Circuit in New York took the step of ignoring Chevron's claims of being able to pursue arbitration by seeing it as a "third party" when it's not.


The result of this failure means that Chevron now must seek other legal tools to get Ecuador to pay its fair share, but the other problem is more sinister: Ecuador's rich continue to cover-up their behavior and irresponsibility toward that country's poorest people. Making it look like it was just Chevron's fault does not erase the fact that Ecuador has been harming its poorest people.


The bottom line here is that just because a firm's an oil company does not mean it should be treated unfairly, especially when the lives of the poor of Ecuador are at stake. Chevron / Texaco has paid and does its share; the Country of Ecuador, which by the way will never give Chevron a fair trial, has not done so.

Category:

News & Politics

Tags:

• ecuador
• energy
• chevron
• amazon
• zennie62
• oil
• prices
• steve
• donziger
• petroecuador
• latin
• america
• venezuela

[fairandaccurate1]

And what I find disturbing is that, although you say you're concerned about Ecuador's "poorest people," you discount the efforts of thousands of campesinos and indigenous people who have worked tirelessly towards some form of justice. Clean water. A clean up. Some funds for health care. Chevron can be an industry leader and take responsibility for their share. Pls, come to Ecuador. See for yourself. Talk to local people. Don't just repeat and believe Chevron's story.

[willymarjo]

Chevron bought your conscience too, came on !!!!!! How much Chevron pay you?

[csunshine66]

GRACIAS POR SU EXPLICACION, MUY INTERESANTE. LO MEJOR SERIA QUE UNA ORGANIZACION INDEPENDIENTE ESTUDIE ESTE CASO EN LA AMAZONIA Y PUEDA DAR UN ANALIZIS OBJETIVO E INDEPENDIENTE, EN DONDE NO HAYA LUGAR PARA LA CORRUPCION COMO LA DEL ABOGADO STEVEN DONZIGER, O DE OTRAS INSTITUCIONES BUSQUEN LUCRAR PARA ELLOS MISMOS, SINO QUE TODA LA AYUDA SI LA HAY :( ALGUN DIA VAYA A PARAR EN MANOS DE NUESTRA GENTE ECUATORIANA ASI COMO A REPARAR TODO EL DANO CAUSADO,

[fairandaccurate1]

And yes, there have been spills since Chevron (Texaco) left. But the area was a disaster in 1992 when the company left. New spills don't liberate Chevron from responsibility for their damages. Is Petroecuador environmentally responsible company? No. But they are better than Texaco ever was. Is Correa an ego-maniac who wants to open up the rest of Ecuador's Amazon to drilling? Yes. But again, doesn't absolve Texaco. You've bought Chevron's smoke and mirrors defense. Don't be their pawn.

[fairandaccurate1]

Zennie you should really stop talking about Ecuador because it's so clear you know nothing about the country or its people. You talked to locals? Really? Who? Did you go to Ecuador? All you can seem to do is re-print Chevron talking points. It's too bad that you manage to get this issue so wrong. There is indeed a really important grassroots effort for justice underway. And yes, they have lawyers who will get paid if they win. It's how every lawsuit everywhere works.

[fairandaccurate1]

Zennie you should really stop talking about Ecuador because it's so clear you know nothing about the country or its people. You talked to locals? Really? Who? Did you go to Ecuador? All you can seem to do is re-print Chevron talking points. It's too bad that you manage to get this issue so wrong. There is indeed a really important grassroots effort for justice underway. And yes, they have lawyers who will get paid if they win. It's how every lawsuit everywhere works.

[DjRufoo2222]

shut up zennie62 stay in united states and celebrate usa won the war in irak, killing people for oil,

[javy926]

So, you saying that Texaco (chevron) paid 40 million dollars that would be it??

The law sue is for all the spills, and ways to extract oil they were neglecting the people of Ecuador and they have to pay.

there were more spills after that, maybe but that has nothing to do with the actual case, you said that Ecuador has 0 interest in protect the Amazon thats your opinion, the problem is that the Ecuadorians now have a government that actually put Its people first..... then companies.

[sTevefor3]

Have you seen "Crude"? Good film. Helps to put into perspective the disregard Chevron has for the indigenous people of the Amazon. I'm ashamed that an American corporation can be so two-faced; on one face they advertise in America that Chevron is environmentally sensitive; on the other face, they use every dirty trick in the book to squirm out from responsibility. I say just pay up, Chevron. It's cheaper in the long run!

[osofieroso]

@sTevefor3 lol dude, get a life, will ya lol not like yours Viva Rafael Correa

[sTevefor3]

Amen, osofieroso. This guy is such a shill. How much do you think Chevron is paying this fool? Geez, dude, get a life, will ya? Chevron has been playing dirty on this from day one; their day in court has come just where they wanted it: in the Ecuadorean Court system! In fact, if you do any research on this lawsuit, Chevron wanted U.S. Courts to throw the case out and put it in Ecuador.

[osofieroso]

lol please dont look or listen this guy is a lier and is well pay to do this work