Chevron says that any pact with applicants must include Petroecuador

Best Growth Stock – Chevron sees “very difficult” to negotiate compensation for pollution in the Ecuadorian Amazon to put an end to a multi-million dollar litigation, but considered that, in carrying out, the State Petroecuador should also shoulder its responsibility.

“Hardly any output you can see if the State (Ecuadorian) does not recognize their obligations of remediation in the zone”, said James Craig, spokesman for Chevron.

The Texaco company, which was subsequently acquired by Chevron, extracted oil from 1964 until 1990 in a region of the Amazon as a minority partner in an operation in conjunction with Petroecuador.

Craig holds that at the end of the contract the Ecuadorian State Enterprise took over to clean up two-thirds of the places of extraction of the time, but never finished this “remediation”, as it is known to that process in oil jargon. Texaco, Yes on the other hand, fulfilled their part, according to the spokesman.

A very different view is Pablo Fajardo, the lead counsel for plaintiffs in Ecuador, they received in February a favourable opinion by a trial judge, who ordered Chevron to pay more than $9,500 million, a figure which will be double if the company does not apologize for pollution.

“The statement refers exclusively to the damage of Chevron, not of Petroecuador”. Counsel maintains that the American company is responsible for the discharges because Texaco operated all the fields, while Petroecuador answerable only for the injury has caused since that it assumed the operations of the area, which is still pumping crude.

Fajardo has indicated that the applicants provide for taking proceedings against Petroecuador therefore once ends the litigation against Chevron, which began in 1993.

On the other hand, the American oil company argues that in any negotiations with the plaintiffs on awards or funds for cleaning, Petroecuador must recognize its responsibility as a major partner in the consortium with Texaco.

“You want to make Chevron responsible for all the environmental problem that exists in that area and the only responsible is actually the State of Ecuador and Petroecuador,” said Craig.

Week twenty investment funds are Chevron shareholders requested the management to negotiate a “reasonable” agreement to end out of court with the demand.

Fajardo said that so far there has been no contact with the company about the possibility of negotiations and that the plaintiffs “are not desperate” to reach a settlement, although he claimed that they are willing to talk.

Craig said, for its part, that “is very difficult to sit down to negotiate with people who perpetuated a fraud”.

The company alleges that a report that Encrypting the environmental damage at $27,000 million, prepared by an expert designated by the tribunal and which should be independent, actually wrote it a consultant who worked for the plaintiffs, who deny it.

In addition, in his appeal to the ruling of February, the oil company maintains that this own opinion reproduces whole paragraphs and data from internal documents of the plaintiffs that were never brought before the Court and that Chevron was a judicial process on United States.

Fajardo said that the allegation “is a trick of the company”, using any “error” to de-legitimize the judgment and the legal system of Ecuador.

Documents where apparently left paragraphs and data “them have only us and then Chevron,” admitted the lawyer.

“Do if Chevron handed these documents to the Court, the judge (Nicholas) Zambrano?” Everything is possible. “Let us remember all traps that Chevron has made” during the process, said Fajardo.