Chevron's Troubles

Chevron is facing troubles in a number of oil-rich countries, including Nigeria, Brazil, and, of course, Ecuador.

Here are three articles worth reading that appeared this weekend:

Chevron's Amazon-sized gamble on Latin America

The Chevron spill off the coast of Brazil is not so much about the amount of oil spilled but about Chevron's reckless behavior that results from the company's arrogance -- similar to its misconduct in Ecuador.

Excerpts: "The prosecutor told Reuters the more than $11 billion civil award sought against Chevron is not based on a clear assessment of damages from the spill. The figure is meant to send a message.

"'Energy companies operating here need to know that reckless behavior will cost them,' (the prosecutor) said.

"Chevron's worst-case scenario damages from Brazil and Ecuador could top the company's $26.9 billion in 2011 profits....

"Chevron's deputy comptroller, Rex Mitchell, warned in U.S. District Court last year that the Ecuadorians' collection effort could 'cause irreparable injury to Chevron's business reputation and business relationships.'

"Chevron may be spending $200 million per year in legal fees related to Ecuador alone, the plaintiff lawyers estimated. Chevron declined to comment on legal fees."

Chevron: Fire On Gas Rig Extinguished

Nigerians have been pleading with Chevron to help them following a fire on a gas rig that took over a month to put out, but Chevron has done very little.

Excerpts: "Residents here complained of air, water, and fish that taste of kerosene as the plume of smoke hovered within sight offshore.

"They're asking Chevron to relocate the approximately 10,000 people in the surrounding community--a request that cuts against long-standing religious ties to land in Nigeria's oil-rich marshland.

"Mostly, residents say their livelihood--fishing--has been spoiled by the gas fire.

"'The gas is inside the fish,' the youth chairman for the village, Bravely Salvage said. 'After eating the fish you feel like somebody who drunk diesel, you feel dizzy...some of us collapse.'"

Hits, and Misses, in a War on Bribery

The Ecuadorians believe Chevron is in violation of the Foreign Corrupt Practices Act by offering what is essentially a $1 billion bribe to the Government of Ecuador for the Yasuni project and a small cleanup effort -- but only if the Government steps in and blocks the enforcement of the $18 billion judgment against Chevron.

Excerpts: "Enacted in 1977, the Foreign Corrupt Practices Act prohibits American companies and foreign companies whose securities are traded on exchanges here from bribing foreign officials to attract or keep business. For many years, there were few prosecutions under the act. In 2003, for instance, not a single person was charged.

"But in the last four years, a total of 58 companies have paid a combined $3.74 billion to settle such corruption charges. Since 2009, some 67 people have been charged, 20 are still awaiting trial or are at large, and 42 have been convicted, some from charges prior to 2009. A total of 22 have been acquitted or had charges dismissed.

"Lanny A. Breuer, the assistant United States attorney general who has stepped up enforcement actions under the act, said he saw no reason to change course. In fact, he is expanding his staff — and his range of potential targets.

“'We have to be willing to take cases that we would be willing to lose,' Mr. Breuer said in an interview. 'We can’t just pick the easy cases.'

"Even more, he sees himself on the right side of history, especially given the outcry against government corruption in the Arab world and elsewhere.

“'This is not the time for the United States to be condoning corruption,' Mr. Breuer said. 'We are a world leader and we want to do everything to make sure that business is less corrupt, not more.'”



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The Facts Are The Facts

As hard as Chevron tries, it can’t escape the undisputed facts that clearly show the company guilty of environmental crimes that resulted in the destruction of once pristine land and water in the Ecuador rainforest and direct harm to the health of the area’s 30,000 residents.

Chevron wants to make the Ecuador contamination lawsuit about anything other than these pesty facts:

-- Chevron intentionally dumped 18 billion gallons of hazardous water into the rainforest.

-- Chevron built over 900 unlined pits to permanently store pure crude and production water -- a toxic brew that continues to leech into the soil and water today.

-- Chevron oversaw a fraudulent remediation in 1995 that encouraged residents to build homes on top of and near oil pits they thought had been cleaned by the company.

-- Chevron’s own tests taken during the trial found that soil and water samples from the so-called “remediated” pits were just as toxic as samples from pits that had not been cleaned.

-- Chevron knowingly put these people in greater danger to their health and lives by not confessing the company had simply thrown dirt over the pits instead of cleaning them properly, as required by the agreement.

-- Chevron has lost the case.

-- The Ecuadorians have won and have a legitimate judgment they are preparing to enforce.

And those are the facts.



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BP Talks Settlement In Gulf, While Chevron Pouts

Former BP CEO Tony Hayward shocked the world with his remark about wanting "his life back" only days after 11 people lost theirs in the Gulf Coast oil disaster. But the company had the good sense to dump him, make peace with President Obama by ponying up $20 billion for a relief fund and start owning its mistakes -- mistakes that could cost BP up to $60 billion when all is said and done.

Contrast that with the way Chevron has handled the Ecuador disaster -- a disaster that wasn't an accident; that hasn't been cleaned; that started five decades ago, and the cost is only a fourth ($18 billion) of what BP will likely pay.

The Amazon Defense Coalition's recent press release compares the two disasters. See here

Says an Ecuadorian representative:

Once Chevron was found guilty and said it would never pay, Chevron became a fugitive from justice. Chevron CEO John Watson is creating a big problem for his company's shareholders because of his utter arrogance when it comes to Ecuador -- which is precisely the opposite reaction BP had with the Gulf disaster, where it is trying to deal with its obligations.

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Chevron’s Latest Deal: Backs Scratched, $Millions Made & Ecuadorians’ Rights Trashed

Read this recent press release by the Amazon Defense Coalition about Chevron’s kangaroo “judge” – Horacio Grigera Noan – who essentially is in the legal business with Chevron’s lawyer, R. Doak Bishop of the powerhouse law firm King & Spalding.

Horacio Grigera Noan

R. Doak Bishop

The press release explains in detail, but this is how it works:

As we’ve reported before, Chevron has turned to this clubby, chummy group of private arbitration lawyers who have instructed the Government of Ecuador to disregard its Constitution by telling the judiciary to block enforcement of the $18 billion judgment the Ecuadorian indigenous groups recently won against Chevron.

The Ecuador court has said thanks for your input, but we’re gonna abide by our Constitution, as well as international law. See here.

Meanwhile, the Ecuadorians are justifiably upset with this development, but don't really think it matters at the end of the day. They have a legitimate judgment which they intend to enforce.

Yet, this clubby, chummy arbitration panel continues to meet and discuss why they think they have the authority to tell Ecuador courts what to do – at a price tag of at least $800 an hour per kangaroo and maybe more.

They have been known to make anywhere from $1 to $5 million depending how long they can drag out the cases. Chevron pays half. Guess who pays the rest: the Ecuadorian taxpayers.

Now, here’s where it gets even more interesting.

Chevron picks one of the kangaroos, right? Guess who is Chevron’s pick – Grigera Noan, who has partnered up with arbitration kingpin Bishop on at least five occasions. Of the five, three involved Ecuador, and Noan ruled against Ecuador every time.

There could be even more cases, but the arbitration process is very secretive; everything is done behind closed doors. So, no one really knows how many cases Bishop and Noan have banked.

But, as the press release points out, this back scratching is prohibited under arbitration rules, to the degree there are any.


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Check This Out!

Some must read blogs and articles (short and sweet):

Chevron: You Break it! You Fix it!

Chevron: How Low Can You Go?

AmericaBlog: Oil companies delay with hopes problems go away.


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Visit Chevron Toxico.com to find out more. Support Amazon Watch and Rainforest Action Network.

Ecuador Appellate Court Says Ecuadorians’ Human Rights Take Precedent

Chevron’s secret arbitration panel has demanded that Ecuador do the oil giant’s bidding and stop enforcement of the $18 billion judgment against the company. Chevron has tried to convince journalists covering the case that the panel has the authority to tell another country’s court system what to do.

Prestigious international jurists have said nonsense. Human rights and trade groups in the U.S. have said nonsense.

Now the Ecuador court system has weighed in, too.

“A simple arbitration award, although it may bind Ecuador, cannot obligate Ecuador’s judges to violate the human rights of our citizens. That would not only run counter to the rights guaranteed by our Constitution, but would also violate the most important international obligations assumed by Ecuador in matters of human rights.”

“…this Division finds that no court in Ecuador has power or legal foundation that exceeds Article 11 of the Cassation Act on which to support the possibility of suspending the processing, hearing, or enforcement of any legal proceeding without incurring severe, even criminal, liability with respect to the parties.”

Exactly, and enough said.

Now watch a video that tells the true story about Chevron in Ecuador at www.chevrontoxico.com

Shocking New Video Exposes Chevron's Crimes & Fraud In Ecuador

Take 15 minutes of your day and watch this shocking new video that exposes Chevron's crimes and fraud in Ecuador.

Chevron's lawyers, lobbyists, and public relations firms have tried everything to distract attention away from the suffering of the Ecuadorians who have been forced to live with the contamination Chevron left in the rainforest after exploring for oil from 1964 to 1990. Chevron has even accused the Ecuadorians of fraud in an attempt to turn its victims into criminals.

This video reminds us what the lawsuit is all about -- the families who have lost loved ones to cancer and other oil-related illnesses all because Chevron used the most inexpensive methods to extract oil to maximize its profits.

The True Story of Chevron's Ecuador Disaster from Amazon Watch on Vimeo.

Become a follower of The Chevron Pit. Follow us on Twitter at @ChevronPit .
Visit Chevron Toxico.com to find out more. Support Amazon Watch and Rainforest Action Network.