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Editorial / Commentary / Opinion
Gustavo Coronel : Chevron in Ecuador:
recent twists and turns
The legal action against Chevron in Ecuador: recent twists and turns.
This legal action has a special interest due to several reasons: (1), it has been initiated by a group of Ecuadorian citizens with the support of U.S. lawyers and of an organization. Amazon Coalition, that blends environmental concerns with a strong anti-capitalist, ideological posture; (2), The size of the damages requested, $26 billion; (3), Ecuadorian President Rafael Correa has openly spoken against the oil company and has leaned on the judge so that he decides against Chevron; (4), The previous judge had to withdraw from the case after videos revealed that he was in conversations with the plaintiffs and seemed to have accepted a bribe to decide against Chevron; (5), the expert named by the judge to analyze the environmental situation in the area and to estimate the amount of damages does not have the proper credentials for the job and has been accused by the defendant to have had links to the plaintiffs; (6), The environmental damages claimed by the plaintiffs took place more than 20 years ago and, since then, the Ecuadorian state-owned oil company has been operating in the same area. However, this company has not been mentioned in the legal action, which is hard to understand; (7), both the legal and the conceptual irregularities related to the trial are so numerous that it should have been cancelled long ago.
A few days ago a New York judge discarded the claim by the government of Ecuador that Chevron had no right to ask for arbitration about who is responsible for the environmental damages that might have taken place in the region of Ecuador where Texaco (Chevron) and PetroEcuador, the state oil company were active in the past. This arbitration is based on the claim by Chevron that PetroEcuador is the main responsible party for whatever environmental damage might exist in the region. It is also based on the claim by Chevron that the government of Ecuador is interfering illegally in the trial. Manhattan Judge Leonard B. Sand agreed that the government of Ecuador had been interfering in the normal process of the trial and has rejected the request by this government to stop the arbitration asked for by Chevron.
C. MacNeil Mitchell, a lawyer for Ecuador, said the republic is considering whether to appeal the decision. Kent Robertson, a Chevron spokesman, said the judge's ruling was an important development in its efforts to pursue arbitration. The arbitration panel "is one of the few bodies that can compel Ecuador to do the right thing and clean up the Amazon," Mr. Robertson said. "With today's decision, we are one step closer to making that a reality."
Gustavo Coronel is a 28 years oil industry veteran, a member of the first board of directors (1975-1979) of Petroleos de Venezuela (PDVSA), author of several books. At the present Coronel is Petroleumworld associate editor and advisor on the opinion and editorial content of the site. All his articles can be read in Gustavo's blog. Lass Armas de Coronel . Petroleumworld does not necessarily share these views.
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comments about this article, write to editor@petroleumworld.comPetroleumworld News 03/16/2010
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