Ecuador’s highest court upholds $9 billion fine against Chevron for ecocide and genocide

Ecuador’s highest court upholds $9 billion fine against Chevron for ecocide and genocide

By Amazon Watch

In a major setback for Chevron, the Ecuadorian National Court issued its long-awaited decision in favor of a $9 billion pollution judgment against Chevron upholding and affirming lower court rulings. The court’s decision is final.

In its 222-page opinion, the supreme court affirmed earlier decisions by a Lago Agrio court and the appellate court for $9 billion but rejected the additional $9 billion in punitive damages previously imposed for not apologizing, given that provision is not explicitly permitted in Ecuadorian law. The supreme court also lamented the plaintiffs waiting 20 years for justice and attributed this largely to delaying tactics by Chevron. This ruling constitutes a landmark case for corporate responsibility.

“This is an extraordinary, unprecedented triumph for indigenous and local communities over one of the world’s worst polluters,” said Donald Moncayo, a representative from the Amazon Defense Coalition for 30,000 Ecuadorian rainforest villagers and plaintiffs, who was in New York to testify in a retaliatory lawsuit filed by Chevron against lawyers for the plaintiffs in the Ecuador case.

Meanwhile, at the trial in New York, Judge Kaplan repeatedly assisted Chevron in intimidating and attacking key Ecuadorian witnesses and the defendant’s legal team.

In the retaliatory RICO lawsuit, Moncayo was subjected to a lengthy cross-examination by Chevron, after which Judge Kaplan ordered him to turn over a copy of his hard drive to the court.

Christopher Gowen, a legal ethics professor at American University Washington College of Law, was present in court and commented, “Watching an American judge threaten a foreigner in an American court with criminal penalties without the advice of counsel on a highly questionable court order defies everything our justice system stands for.”

“Ecuador’s supreme court has given careful consideration to each of Chevron’s conspiratorial claims, and has rejected them one-by-one,” said Han Shan, spokesperson for legal team representing the Ecuadorian Villagers. “While the company’s complaints have found a sympathetic ear in Judge Kaplan’s courtroom, the fact remains that Chevron has been found liable by the court it fought to have the case heard by, and that decision has now been upheld at the highest level.”

“We witnessed outrageous abuse of power by the very pro-Chevron Judge Kaplan and there was nearly no mainstream media and no cameras to capture it,” said Atossa Soltani of Amazon Watch. “This can only have a chilling effect on the willingness of witnesses in human rights cases to come forth to provide facts and pertinent information in an impartial setting where they are not going to feel threatened.”

The Ecuadorians and their supporters have called for an end to Chevron’s retaliatory lawsuit and the ongoing “rigged show trial” before Judge Kaplan, who has displayed outright hostility to the Ecuadorians’ legal efforts to demand a cleanup. Judge Kaplan has also made repeated disparaging on the record comments about Ecuador’s judicial system.

Chevron has no assets in Ecuador, forcing the communities to pursue the oil giant’s assets around the world through enforcement actions currently underway in Brazil, Argentina and Canada.

Texaco operated in Ecuador until 1992, and Chevron absorbed the company in 2001, assuming all of its predecessor’s assets and liabilities. Chevron has admitted to dumping nearly 18 billion gallons of toxic wastewater into rivers and streams relied upon by thousands of people for drinking, bathing, and fishing. The company also abandoned hundreds of unlined, open waste pits filled with crude, sludge, and oil drilling chemicals throughout the inhabited rainforest region. Multiple independent health studies have shown an epidemic of oil-related birth defects, cancers, and other illness.

From Amazon Watch: http://amazonwatch.org/news/2013/1113-ecuadorian-court-upholds-9-billion-judgment-against-chevron

Armed indigenous community forces Petroamazonas to abandon oil project in Ecuador

By Jonathan Watts / The Guardian

An indigenous community in the Ecuadorian Amazon has won a reprieve after building up an arsenal of spears, blowpipes, machetes and guns to fend off an expected intrusion by the army and a state-run oil company.

The residents of Sani Isla expressed relief that a confrontation with Petroamazonas did not take place on Tuesday as anticipated, but said the firm is still trying to secure exploration rights in their area of pristine rainforest.

“We have won a victory in our community. We’re united,” said the community president, Leonardo Tapuy. “But the government and the oil company won’t leave us alone. ”

The Kichwa tribe on Sani Isla, had said they were ready to fight to the death to protect their territory, which covers 70,000 hectares. More than a quarter of their land is in Yasuni national park, the most biodiverse place on earth.

Petroamazonas had earlier told them it would begin prospecting on their land on 15 January, backed by public security forces.

Before the expected confrontation,the shaman, Patricio Jipa said people were making blowpipes and spears, trying to borrow guns and preparing to use sticks, stones, and any other weapons they could lay their hands on.

“Our intention was not to hurt or kill anyone, but to stop them from entering our land,” he said.

It is unclear why Petroamazonas hesitated. The company has yet to respond to the Guardian’s request for a comment.

Locals speculated that it was due to a reaffirmation of opposition to the oil company at a marathon community meeting on Sunday.

“They’ve heard that we are united against the exploration so they have backed off,” said Fredy Gualinga, manager of the Sani Lodge. “We’re happy they haven’t come. Life is going on as normal.”

The relief may not last for long given the huge fossil fuel resources that are thought to lie below the forest.

“It was a close thing, but we’re not out of the water. The oil company has not given up. They will continue to hound us and to try to divide the community. But at least we have a few days respite,” said Mari Muench, a British woman who is married to the village shaman.

The elected leaders of Sani Isla have pledged to resist offers from Petroamazonas for the duration of their term.

“This policy will remain in place during our period in office. We’re committed to that and we will do what we can to make it more permanent,” said Abdon Grefa, the speaker of the community.

The battle has now moved to the judicial system and the court of public opinion. Their appeal for an injunction went before a judge on Wednesday and they are calling on supporters to help them build a long-term economic alternative to fossil fuels.

“We hope people will write protest letters to Petroamazonas, come and visit our lodge, promote Sani, donate money to our school and projects, volunteer as teachers or provide funds to students to travel overseas so they can learn what we need to survive in the future,” said the community secretary, Klider Gualinga.

From The Guardian: http://www.guardian.co.uk/environment/2013/jan/17/indigenous-ecuadorian-tribe-oil-intrusion

Peru and Ecuador auctioning off indigenous land in Amazon to oil industry

Peru and Ecuador auctioning off indigenous land in Amazon to oil industry

By Darrin Mortenson / Alianza Arkana

Even as indigenous people struggle to cope with current levels of contamination and illness caused by years of oil production in the Amazon, the governments of Peru and Ecuador are preparing to sell off even more Amazonian territory to the oil industry in coming months.

Starting in November, Peru’s state-run leasing agency Petroperu plans to start auctioning licenses to 36 new oil blocks for exploration, 19 of them in the northern region of Loreto. Just across the border, Ecuador is set to lease at least 13 blocks on or near waterways that eventually flow south into Peru and join the Amazon River.

Many of the blocks overlap or abut protected areas and indigenous territories and threaten the forests and rivers that indigenous people and other river people depend on for their lives.

Indigenous groups are rallying to stop their governments’ plans, and some talk of making a stand for a total moratorium on all exploration until both countries come up with a regional environmental plan.

“Oil production is an activity that definitely alters our territory, our environment, our health and our culture,” said Alfonso Lopez Tejada, leader of the federation of 57 indigenous Kukama communities along the Maranon river region in Peru, where three new lots overlap Kukama communities and threaten the famous Pacaya Samiria National Reserve.

“Again they impose these lots on us just as they did not consult us when they leased our territories before,” Lopez said.

In Ecuador, indigenous groups are planning demonstrations and marches to protest the new round of concessions begin on November 28.

“We are defending our land. We won’t allow oil activity,” said Franco Viteri, president of a Confederation of Indigenous Nationalities of the Ecuadorean Amazon (Confeniae), according to a recent article in the Wall Street Journal.

Ecuadorian indigenous leaders say they will make an appeal to the country’s Constitutional Court.

From Alianza Arkana

Chevron may suffer “irreparable damage” from Ecuador’s $18 billion judgement

By Amazon Defense Coalition

A new financial analysis has found that Chevron’s $18 billion Ecuador environmental liability poses a threat of “irreparable damage” to the oil major’s global operations if the plaintiffs make good on their promise to launch legal actions to enforce the judgment in countries where Chevron has billions of dollars in assets.

The report, by social investment analyst Simon Billenness, notes that the long-running case (Aguinda v. ChevronTexaco) “is reaching its most risky phase” for Chevron after an appeals court in Ecuador upheld the judgment in January and rendered it immediately enforceable. The report notes that Chevron’s defenses have been “severely compromised” because of a separate ruling by a New York federal appellate court that vacated a preliminary injunction purporting to bar worldwide enforcement of the judgment.

The Billenness Report also notes that Chevron has yet to disclose in its public filings that its own comptroller, Rex Mitchell, quietly submitted a sworn affidavit to U.S. federal court that concluded any enforcement of the judgment will cause “irreparable damage” to the company. Chevron has been trying to downplay the risk posed by the judgment in its public filings and press releases, concluded Billenness in the report, titled An Analysis of the Financial and Operational Risks to the Chevron Corporation from Aguinda v. ChevronTexaco.

“In sworn legal statements, Chevron has admitted that the company faces ‘irreparable injury’ to [its] business relationships’ [from any enforcement of the Ecuador case] yet has consistently refused to fully characterize these risks to its shareholders,” he wrote in the report. “Shareholders are rightly questioning whether the board and management are fulfilling their fiduciary duties to properly manage the significant risks to the company’s business and value.”

The report also concluded “the enormous breadth of Chevron’s global business operations makes the company particularly vulnerable to enforcement. There are many jurisdictions around the world in which the plaintiffs could seek court recognition and enforcement of the judgment, including many where Chevron has substantial reserves and that are of strategic importance.”

Key findings of the Billenness report include:

  • The Ecuador judgment poses serious risks to Chevron’s worldwide operations, with the possibility of asset attachments and loss of social license to operate in new areas and markets;
  • Chevron’s principal legal defenses against enforcement have either been severely compromised or have failed. These include the reversal of a preliminary injunction barring enforcement and the rejection by Ecuador’s government of a private investment arbitration that tried to halt the litigation;
  • Chevron’s shareholders are stepping up calls for more transparent disclosure of the Ecuador liability, leading to increased pressure on management; and
  • Chevron risks violating securities laws for withholding material information from shareholders.

Shareholders have been speaking out against Chevron management on the Ecuador issue for some time.

Last year, New York Comptroller Thomas DiNapoli blasted the company for “doing grave reputational damage” to itself by pursuing more legal proceedings “that only delay the inevitable…it’s time to face reality…[t]he entire case is looming like a hammer over shareholders’ heads.” And in a letter last May, several prominent institutional investors called on Chevron “to fully disclose … the risks to its operations and business from the potential enforcement” of the Ecuador judgment.

Chevron refused to even acknowledge or answer either the investor letter, according to the shareholders.

The plaintiffs have said they plan to enforce the judgment in various countries, but they have not announced any specifics other than to say Venezuela and Panama are being considered. Chevron has billions of dollars of assets in Australia, Kazakhstan, Singapore, Brazil, and Venezuela and operates in dozens of countries around the world, said Karen Hinton, the spokesperson for the Ecuadorians.

Billenness specializes in analyzing how environmental, social, and governance factors pose risks to shareholders. He has worked as an analyst and advisor to Trillium Asset Management and the Office of Investment of the AFL-CIO. He is a member of the U.S. Social Investment Forum and consults with entities that focus on social investing.

From Chevron Toxico: http://chevrontoxico.com/news-and-multimedia/2012/0517-chevron-faces-irreparable-damage-from-18-billion-judgment.html

Indigenous people converge on Ecuador’s capital to protest government mining projects

By Irene Caselli / Christian Science Monitor

Six years after working to elect Ecuador’s President Rafael Correa, the country’s indigenous population is now taking to the streets against the very government they helped bring to office.

Hundreds of people from Ecuador’s Andean and Amazonian indigenous groups marched into Quito today, after a 14-day trek across the country.  Dressed in colorful traditional clothing, they are protesting against the government’s large-scale mining projects, which they say go against Mr. Correa’s electoral promise to protect the rights of nature, and could impact their access to clean water.

“What we’re asking is for the government to honor our democracy,” Humberto Cholango, head of the Confederation of Indigenous Nationalities of Ecuador (CONAIE), the largest indigenous group, told foreign reporters on March 21, the eve of the protesters’ arrival into Quito.

“We ask the president to stand by the promises he made five years ago,” Mr. Cholango says.

Rights of Mother Nature

Correa took office in January 2007 with a progressive platform that gained widespread support by indigenous groups. This was thanks in large part to proposals such as the inclusion of the “Rights of Mother Nature” in the country’s new constitution, approved in 2008. Ecuador was the first country to approve such legislation, which stipulates that citizens have rights to healthy and ecologically balanced environments, and have a duty to respect nature.

While the president remains hugely popular among large swathes of the population for his social projects aimed at the poor and the disabled, his relationship with indigenous people has been far from rosy, most recently due to his desire to build a large scale mining industry on biodiverse, indigenous land.

“We can’t be beggars sitting on a sack of gold,” said Correa earlier this month, referring to the country’s need to tap its natural resources. The government hopes to attract $3 billion in mining investments by next year – a significant contribution to its economy. “It is a lie that good mining destroys water,” Correa said.

Motivation to mobilize

Correa’s administration says indigenous organizations are just trying to destabilize the government ahead of the February 2013 presidential elections.

But according to indigenous leaders, the timing is connected to the government’s negotiation of a mining contract with the Chinese-owned company Ecuacorriente. The contract was signed earlier this month and is to be carried out in the southern province of Zamora Chinchipe with a $1.4 billion investment. Another multi-billion dollar contract for a silver mine is expected to be signed with a Canadian company in coming months.

The open-pit copper project would be the first of its kind in Ecuador, a country that relies on oil exploitation but is new to large-scale mining.

“The government has caused this mobilization,” says Salvador Quishpe, one of the march organizers, and governor of Zamora Chinchipe.

Mr. Quishpe says the government did not consult with local populations before approving the project – something many claim is required by the constitution.  Quishpe says there are 227 water sources inside the mining project’s zone, and locals are worried they will all be contaminated through the extraction process.

Read more from Christian Science Monitor: http://www.csmonitor.com/World/Americas/2012/0322/Beggars-sitting-on-a-sack-of-gold-Ecuadoreans-protest-mining