Showing posts with label BP. Show all posts
Showing posts with label BP. Show all posts

Thursday, November 15, 2012

Did President Obama & His Justice Department Extort Money From BP?


Did President Obama and the U.S. Department of Justice extort the billion-dollar damage settlement with BP for its 2010 accidental spill off the Gulf Coast?

Based on legal arguments being made in a U.S. court, Chevron would have you believe so.

Chevron has accused the Ecuadorian indigenous groups and their lawyers suing the oil giant for massive oil contamination in the Amazon rainforest of extorting money from the company by applying pressure on its executives to settle.

In a brief filed recently with the Southern District Court of New York, the Ecuadorians’ lawyer Craig Smyser argued:  (See here, page 4.) 

“Chevron fallaciously argues that any effort to effectuate a settlement is part of an organized crime scheme. Hogwash. The argument turns every settlement conference into a meeting of crime bosses. Under Chevron’s reasoning, the meetings and public discourse among the United States Government, plaintiffs’ lawyers, and British Petroleum concerning settlement of the Deep-Water Horizon oil spill dispute were a RICO scheme.”

Well, today, BP and the DOJ announced a settlement agreement but no mention by BP of possible extortion or racketeering charges. See this Chevron Pit, comparing the accidental BP spill to the intentional contamination by Chevron of the Ecuadorian rainforest.

Chevron also has accused Ecuador President Rafeal Correa of being part of the racketeering conspiracy to extort money from the oil giant because he expressed concern for people living near Chevron’s contamination.

“They will pay for the mess they’ve made,” he said. But, wait, that wasn’t President Correa.  That was President Obama.

From the White House web site: 

“So let’s be clear about a few things: BP is responsible for -- and will be held accountable for – all of the very significant clean-up and containment costs. They will pay for the mess they’ve made….The bottom line is that the Administration will aggressively pursue compensation from BP for any damages from this spill.”
Aggressively pursue?  Be careful, Mr. President. If Chevron has its way, every government official, lawyer, lobbyist, PR consultant or even CEO working in tandem to collect damages, possibly through a settlement, could be facing extortion charges, filed by companies with executives who would rather fight in court than be held accountable for their misconduct. 

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Tuesday, June 12, 2012

Interesting Reads: BP Owes $192 Billion On Gulf Coast & Chevron's Secret Deal With Ivonne Baki

Interesting reading on The Huffington Post and The Business Insider. See below.

BP Owes $192 Billion for Gulf Oil Disaster, Not $15 Billion Settlement It's Seeking

On Friday, the Financial Times reported that BP is hoping to reach an agreement with U.S. authorities which would require it to pay under $15 billion to settle all criminal and civil penalties arising from the 2010 Gulf oil disaster. The Department of Justice is reportedly seeking $20 to $25 billion. Negotiations between the DOJ and BP are accelerating and "an agreement could be reached before the Democratic party's convention in September," the FT reported.

While $15 billion sounds like a lot of money -- and it is -- it is a far cry from what BP owes for the many costs associated with the largest offshore oil spill in history. To date, a full accounting of exactly what BP should owe for its crimes in the Gulf has not been made public. Such an accounting is vital if we are to ensure that justice and restoration are delivered to the Gulf Coast and that such a catastrophe never occurs again.

A straightforward application of just the most pertinent U.S. laws yields a fine of $192 billion. (For simplicity sake, I only address BP's fines.)

Sound high? Here's why it's not. (read more)

Why Chevron Fired Ogilvy


Chevron knew full well that an executive at its PR agency, Ogilvy PR, had ties to the Andean parliamentary president in Ecuador, Ivonne Baki, and fired the shop because the agency failed to bend the Ecuadoreans to its will, not because it was a conflict of interest: That, in a nutshell, is the conspiracy theory alleged by The Chevron Pit, a blog maintained by rain forest activists who successfully sued Chevron for its pollution of the Latin American jungle.

Chevron ostensibly fired Ogilvy after it discovered that one of its executives, Felipe Benitez, had given advice to both the Ecuadorean government and environmental groups hoping to preserve the Amazon. We pointed out that the move seemed weird because Benitez's LinkedIn profile listed the fact that he had those clients dating back to 2008, so this shouldn't have come as a surprise.

Chevron Pit now alleges that Chevron knew about Benitez all along and was hoping that he could sway the government to not enforce an $18 billion judgment environmental activists won against the company for polluting the forest:
There is simply no way Chevron could not have known that the firm of its lead lobbyist on the Ecuador matter was also representing Ecuador's government. In fact, we suspect that was all part of the "value" Ogilvy was offering Chevron for its fee of $600,000 per year.
(read more)


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Wednesday, May 9, 2012

Wall Street Journal Editorial Page Preparing Fourth Hit Job On $18 Billion Ecuador Judgment

We are flattered to report that the Wall Street Journal editorial page is once again trying to carry water for Chevron's public relations flaks over the company's $18 billion judgment for creating the world's worst oil disaster in Ecuador.  Chevron has hired six public relations firms and almost 500 lawyers to undermine the communities that sued the company.

The irrepressible Mary Anastasia O'Grady – who purports to comment on events in Latin American as a columnist – called Karen Hinton, the spokesperson for the Ecuadorians, and, in a hurried interview yesterday, asked a series of questions reflecting Chevron's misleading talking points about the Ecuador trial.  O'Grady said she is preparing a column on Chevron's claim that an expert report submitted to the court was "secretly" authored by the plaintiffs.  This is one of Chevron's urban myths that has been fully debunked by the plaintiffs and rejected by Ecuador's appellate courts.

Let's test O'Grady's integrity.  Hinton sent her the following email responding to her questions in writing.  Read it and judge for yourself how much of these facts make it into O'Grady's upcoming column, should she indeed publish it:

Mary,

I want to reinforce and expand upon my answers to some of the questions you raised today in our phone call about the Chevron case in Ecuador. I am hoping you will strongly consider all of my comments as you write your column and not gloss over them. 

It is clear your questions are based on Chevron's misleading talking points. One of my colleagues informs me that you interviewed him by phone in 2007 and that you subsequently canceled a meeting where he was prepared to present information refuting Chevron's arguments as lies. Even though you did not write then on this issue, the editorial page of your newspaper has subsequently staged three separate attacks against the case based on Chevron's misinformation and extrajudicial strategy to undermine the proceedings to evade accountability for creating what is likely the world's worst oil-related disaster. We wrote letters to the editor in response to each of those articles correcting various inaccuracies. We hope that process does not repeat itself with your column.

We also have confirmed that the WSJ editorial page never disclosed that at least one of the two unsigned editorials attacking the Ecuador case was written by Bret Stephens, a columnist and now deputy editorial page editor who previously had written a signed column on the same issue with the same viewpoint.   

Here is some additional perspective on some of the issues you raised:

On whether Richard Cabrera met with the plaintiffs before he was appointed the global expert, and whether he and the plaintiffs planned what the global report would say:

Chevron has presented thousands of pages of papers and videos to the Ecuador court on this issue, and that court rejected the material as irrelevant and disregarded the results of the Cabrera report in making its decision finding Chevron liable.  Instead, it based its decision on 104 other technical reports -- the majority submitted by court experts named by Chevron, paid by Chevron, and whose reports were written by Chevron lawyers -- in deciding that Chevron dumped billions of gallons of toxic waste into the Amazon, abandoned hundreds of toxic waste pits, flared poisonous gas into the air, and therefore should pay for a clean-up of what experts consider to be the world's worst oil-related disaster.

That said, there is nothing wrong with the Cabrera report. The contents of that report -- which relied heavily on Chevron's own technical reports submitted as evidence that proved contamination -- is valid from a technical and empirical standpoint.  Some of the information and conclusions were presented to Cabrera by top-level technical experts, consistent with court rules. The fact Cabrera adopted these findings and relied on his own independent soil and water sampling reflected his judgment that they were valid and reflected the evidence.  This is no different than what judges do all the time in the U.S. when presented with findings of fact and conclusions of law by the parties in a disputed litigation. The fact Cabrera was paid exclusively by the plaintiffs was required by the Ecuador court; other court-named experts were paid exclusively by Chevron, also consistent with court rules that require the party asking for a report to pay for it.  Again, this is no different than a party in the U.S. paying for the costs of an expert witness.

Chevron boycotted the Cabrera report process because it did not want to legitimate any aspect of the proceeding that it knew it would lose based on the scientific evidence. Thousands of soil and water samples had already been taken by both parties that showed extensive contamination at 100% of Chevron's former well sites.  Chevron knew Cabrera had access to this data, and this fact terrified the company's lawyers. So Chevron now reaps what it sowed with its unilateral boycott: a report that does not reflect its point of view in any way, shape, or form.  But it did succeed in getting the report knocked out of evidence by waging an unrelenting, entirely improper pressure campaign against the judges presiding over the trial.

When Chevron says the plaintiffs met secretly with Cabrera, that is a complete misrepresentation of the process.  The plaintiffs met with Cabrera (and with other experts appointed by the court) consistent with court rules, as did Chevron's lawyers.  We remind you that to the extent these rules seem different than those in the U.S., it does not mean they reflect an inferior system.  In fact, these procedures are consistent with the rules in most civil law countries and have been confirmed as valid by multiple legal experts in Ecuador and elsewhere.  Chevron has been unable to cite one statute or court rule justifying its position on the Cabrera report.  

Chevron also has tried to market two additional lies about Cabrera -- that he was paid with a "secret" bank account, and that he was "bribed".  Both of these accusations collapse when viewed in light of the evidence. There was no secret bank account. Cabrera was always paid for work performed consistent with court rules and the contractual obligation of the parties to pay for experts who produced reports they requested.

On whether attorneys for the plaintiffs will be paid $5.7 billion in fees. The judgment categorizes how $9 billion will be spent on cleanup, water and health. Where does the rest of the money go?

If you are relying on documents Chevron obtained through discovery from U.S. counsel to opine on this issue, we are putting you on notice that those documents have been interpreted inaccurately by Chevron lawyers and in any event have been superseded by other documents.

The vast majority of the judgment will be used to remediate Chevron's horrific and deliberate contamination of the rainforest -- a contamination so great in magnitude that it dwarfs the size of the BP disaster in the Gulf of Mexico where liability has been estimated to be a minimum of $40 billion.  By comparison, Chevron is getting off easy in Ecuador because the court rejected several claims for damages made by the rainforest communities.  The money will be used to remediate contaminated soils and groundwater, provide clean drinking water to dozens of communities, create a health care infrastructure to deal with high cancer rates in the region, and to restore indigenous lands.  The attorneys will be paid a modest contingency fee per private contract with the affected communities -- a fee that is low compared the two decades of work spent preparing and litigating the lawsuit, and the risk undertaken by lawyers in advancing their own funds and time in the pursuit of a fair result for their clients.

On Chevron's contention that the Cabrera report and the court judgment contain identical language from documents written by the plaintiffs.

As in the U.S. court system, a court expert or judge often adopts language offered to the court by one of the parties. What happened in Ecuador was no different. Cabrera accepted some of the documents we submitted because his own testing proved their accuracy.

Chevron's assertions about the "ghostwriting" of the judgment is a complete lie and reflects the company's desperation. The documents in question have been submitted to the court in various forms, either as direct submissions from the plaintiffs or Chevron, or via expert reports.  In fact, none of Chevron's so-called "experts" on this issue has even reviewed the entire trial record.  And some of their conclusions simply do not withstand serious inquiry.

This is nothing more than last-minute hysteria by a desperate litigant.  Chevron stalled the case for ten years in U.S. courts, thinking it would disappear once a U.S. federal judge moved it to Ecuador.  When the evidence of contamination began to pour in, Chevron began to cry foul as part of a concerted strategy to undermine the very court system it repeatedly had praised. The only way out was to either be held accountable or concoct accusations of fraud. Now that the communities have won a landmark victory and are preparing to enforce their judgment, Chevron is appealing once more to journalists with one-sided presentations of facts that have no relationship to the body of evidence that overwhelmingly proved Chevron's guilt.

Finally, we have extensively documented Chevron's violations of anti-bribery statutes in the U.S. and Ecuador in various sworn affidavits.  Most recently, Chevron offered a $1 billion bribe to Ecuador's government to extricate itself illegally from the lawsuit.  More information on this and other examples of Chevron's malfeasance and criminality can be found on the website www.chevrontoxico.com.

Conclusion

We hope and indeed expect our version of the facts will be reflected in your analysis and that you will not allow your column to become a de facto public relations tool for Chevron's unethical attempt to evade justice.

Best, 

Karen Hinton


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Friday, March 2, 2012

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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Wednesday, March 30, 2011

Chevron in the Gulf

Ever since BP’s disastrous oil spill, there have been no new drilling permits in the Gulf. Well, that’s changed and the first company to get a permit…drum roll please… Chevron. Never mind that they have destroyed the Ecuadorian Amazon. Never mind that they have been sued by indigenous tribes for the death and disease they have caused. Never mind that they refuse to take responsibility for their actions. They now get to try the same thing in the Gulf. Because the environment and livelihood of the region haven’t already taken enough of a hit.

The folks over at Rainforest Action Network say it pretty well:

Why is this so appalling? Mainly because Chevron has never met a community it wasn’t willing to pollute if there were profits to be made, which could be seriously bad news for the Gulf Coast residents still reeling from last year’s spill. Chevron doesn’t have the best track record when it comes to protecting the environment, and the company will do whatever it takes to avoid cleaning up its messes. Just ask the people of Ecuador, or the people of Nigeria and Kazakhstan, or even the people right here in Richmond, California — all of whom live every day with pollution from Chevron operations that the company refuses to take responsibility for.
They also recap some of the lessons from last years report The Lasting Stain of Oil.

It’s clear to corporate polluters cover up evidence, don’t take precautions to protect the environment and communities, and use extensive PR to get away with environmental genocide. Chevron has been very effective with this, using their Human Rights Hitmen to avoid all responsibility for what they have done in Ecuador.

With all that has happened to the Gulf in the past year, it is incredibly disappointing that any drilling is happening, much less by Chevron. The region or our world simply doesn’t need to have another ecological disaster at the hands of Big Oil.

Be sure to read the RAN post on Chevron in the Gulf.

Monday, January 24, 2011

Evidence Shatters Chevron's Defense in World's Largest Oil Contamination Case

Enviro Bloggers Focus Attention on Oil Giant’s Misconduct

The Ecuadorians suing Chevron for the world’s largest oil contamination disaster have submitted the first part of their final written argument to the Ecuador court, outlining the evidence that clearly demonstrates Chevron's liability in the $113 billion environmental damages lawsuit and the fraud behind the company's primary defense of remediation.

The
court filing -- called an "alegato" in Ecuador -- details in exacting detail how evidence gathered by independent experts, the plaintiffs, and from Chevron itself proves the case against the oil company. Read the summary and press release about the argument. The lawsuit was first filed in U.S. federal court in 1993 but was shifted to Ecuador at Chevron's request. The plaintiffs are tens of thousands of persons who live in area of Ecuador where Chevron operated several large oil fields from 1964 to 1990, reaping excess profits by using substandard practices.

Meanwhile, several environmental bloggers are shedding some much-needed light on the oil giant’s misconduct. Read the Huffington Post blog Huffington Post blog, Mother Jones, the WonkRoom and ChevroninEcuador.

Joanna Zelman of the Huffington Post wrote:

Could there be enough "overwhelming" evidence against Chevron to merit a payment of over $100 billion? Tens of thousands of Ecuador's residents are the plaintiff in an environmental damages lawsuit against Chevron, and they believe the evidence speaks loud and clear….”

Responding to Chevron’s efforts to distract attention away from the contamination with accusations of corruption against the Ecuadorian court, Han Shan of ChevroninEcuador wrote:

But here we are with the final arguments, and the judge deliberating on a decision that is widely expected to be delivered this year. The plaintiffs have brought on DC mega law firm Patton Boggs and high-profile lawyer James Tyrrell, who vows that the plaintiffs will be able to enforce a judgment against Chevron and win major damages to be put to environmental cleanup and healthcare in their communities.”

Wonk Room's Brad Johnson headlined his blog with, "Chevron, Under Pressure For Destruction of Amazon, Was Top Lobbyist Last Quarter," He wrote: "Chevron, responsible for a multi-billion-dollar environmental disaster in Ecuador, is instead spending millions to shore up political support and to evade the clean up." Senate disclsoure forms reveal that oil giant Chevron spent $2.9 million lobbying the federal government last quarter, eclipsing even Exxon ($2.6 million) and BP ($2.2 million)."

Chevron has long argued, as its primary defense at trial, that a "remediation" conducted between 1995-98 released it from any responsibility. Despite Chevron’s claims, a summary of the plaintiff’s alegato concludes the legal release used by Chevron as a result of that remediation is "null and void" because it was based on numerous false and misleading representations by the company. Instead of actually cleaning up the waste in the area, the limited “remediation” was largely accomplished by simply covering a small number of waste pits with dirt and then using an inappropriate laboratory test that counted only a fraction of the actual contamination to “prove” that the remediation had been effective.

"The evidence makes it clear and unmistakable that Chevron is guilty," the summary of the alegato concludes. "Guilty of polluting the rainforest with toxic sludge from lucrative oil drilling operations, guilty of a shoddy and haphazard cleanup operation, guilty of letting toxic waste continue to devastate the rainforest and its inhabitants' lives, and perhaps worst of all, guilty of trying to cover it all up by destroying documents and making false accusations of fraud before courts in the U.S. and Ecuador."

The document concludes that Chevron is responsible for ongoing contamination that is harming the environment and human health to this day, even though the company fled Ecuador in the early 1990s and stripped its assets out of the country. The main arguments are as follows:

  • Chevron treated the environment "recklessly" and deliberately disposed of billions of gallons of toxic waste into rivers and streams over the 26-year period that it operated a large oil concession in Ecuador's Amazon region. "These lax operational practices have had a devastating impact on the rainforest ecosystem and its inhabitants," according to the document.

  • Chevron dumped more than 16 billion gallons of chemical-laden "produced water" into streams and rivers over 70 years after the industry had stopped the practice in the United States due to its damaging environmental impacts.

  • Chevron built and then abandoned more than 900 toxic waste pits filled with oil drilling byproducts such as barium, heavy metals, chloride, and acid -- all of which need extensive remediation.

  • Chevron polluted the air by flaring gas with no controls, spilled thousands of barrels of oil, had no spill response plan, and ordered the destruction of records documenting oil spills.
The plaintiff’s "alegato" also found that "there is irrefutable evidence of contamination" at every one of Chevron's 45 well and oil production sites inspected by the parties during the trial phase of the case in the affected area, which is 1,500 square miles in size and covers a swath of rainforest roughly the size of Rhode Island. The chemicals and compounds found -- all of which are toxic and some of which are known carcinogens -- include barium, benzene, cadmium, chromium, copper, etheylbenzene, polycyclic aromatic hydrocarbons, vanadium, xylene, and zinc.

The alegato also explains how it is Chevron -- not PetroEcuador -- that is responsible for the contamination given that the vast majority of pollution occurred at the time Chevron's 356 well sites were drilled and operated by the American company. The legal concept of "joint and several liability" also imposes on Chevron responsibility for 100% of the damage it caused because of the substandard system it built and operated.

The submission is the first of three parts. The second and third parts -- which deal with damages and issues relating to due process -- will be released in the coming days. Earlier damages assessment reports submitted by the plaintiffs found the company could be liable for up to $113 billion in costs.

Chevron submitted its alegato to the Ecuador court in early January.




Thursday, June 17, 2010

Chevron Should Follow BP’s Lead

In its negotiations with the White House to fund a $20 billion escrow account, BP could have stuck to its legal guns and followed Chevron's example of thumbing its nose at victims of its environmental practices in Ecuador. Instead, BP distanced itself from Chevron's strategy of blaming anyone but itself for the extensive oil contamination it caused to Ecuador's rainforest.

We will see how BP handles liability issues going forward, but this is a step in the right direction.

Chevron should accept what the BP spill makes abundantly clear: profits over safety is not a business plan. In fact, it could put you out of business.

That is proving true for Chevron in Ecuador, where an independent court expert has determined that the company faces more than $27 billion in damages for illegally dumping billions of gallons of oil-related toxins directly into the Amazon from 1964-1990. Audits conducted by Chevron, as well as the company's own sampling results, overwhelmingly prove the company's culpability.

While the BP disaster was an accident, Chevron's dumping was done intentionally as part of a plan to cut costs.

In regard to Chevron's Ecuador liability, two other things have become abundantly clear:

  • Had oil companies like Chevron been held accountable for what happened in Ecuador the likelihood of accidents like the one in the Gulf would have been drastically reduced. Incentives would be different. Companies would have been forced to invest in safety, because they would have known they could not externalize environmental damage to local inhabitants, as has been done in Ecuador and the Gulf.


  • The $27 billion in damages for the Ecuador mess is beginning to sound modest considering the astounding scope of the toxins that Chevron has admitted to dumping in Ecuador. Chevron refers to the number as a "shakedown." But in light of the $60 billion (and growing) price tag of the BP liability and cleanup, $27 billion sounds like a bargain given that the contamination in Ecuador is far larger than the Gulf spill estimates.

How many more Ecuadors and Gulf of Mexicos do we need to suffer through before the oil industry is held accountable?

Wednesday, June 9, 2010

Norman Lear Latest to Blast Chevron for Trying to Seize Ecuador Film Footage

This article, by Norman Lear, appeared today on The Huffington Post:

Was Oil Named 'Crude' Because of the Way Oil Companies Do Business?


Let me leave it to you; which is it? "Couldn't be" or "certainly possible"? The recent BP crisis could be called the greatest of "natural" disasters. Natural for a company that had already received 760 citations for "egregious, willful violations," accounting for "97% of all flagrant violations found in the refining industry..." according to the Center for Public Integrity,as quoted by Frank Rich in this past Sunday's New York Times.


Currently setting another high standard for crude behavior in the oil business is Chevron. As for the battle between Chevron and the indigenous groups of people in Ecuador who are suing the oil company for despoiling a swath of the Amazon rainforest the size of Rhode Island that is their habitat, and upon which they depend for their sustenance, I am not taking sides. It is Chevron's reaction to a documentary on that very subject, Crude, which received the most glowing reviews in 2009, with which I take issue.

With no precedent for such a broad action, Chevron has subpoenaed the filmmaker, Joe Berlinger, to turn over his entire vault of footage -- over 600 hours shot (Berlinger is an exceedingly thorough filmmaker) plus the notes and sources the film was based on -- by citing the relevance of three scenes totaling about six minutes in a film that has a running time of 105 minutes and represents an infinitesimal fraction of the total hours shot.

Let me say that again: Chevron wants it all, every scene, 600 hours, because they believe they've found six minutes of footage that they think can help discredit the class-action suit filed against them by 30,000 Ecuadorians. Who would have guessed that Chevron would find a crudely sympathetic ear in U.S. District Court Judge Lewis Kaplan? Flouting the First Amendment, the author's right to keep his sources and work product private, and simple common sense (600 hours for the six minutes that they hold in question, my God!!) Judge Kaplan, ruling in favor of the company, ordered the largest turnover of a reporter's work product in American history.

Giving deep-pocketed corporations the right to rummage around in the files of a well-respected, independent documentarian like Berlinger will not only send a very discouraging message to anyone involved in the news-gathering business, but also to anyone who might want to talk to reporters about exposing the kind of corporate negligence or potential villainy that made the BP disaster possible. Chevron is the largest corporation in California and the fifth largest on the planet. I am quite confident that the Founding Fathers did not want corporations to use their vast profits to discourage this kind of reporting from taking place and at the same time place considerable financial burdens on filmmakers like Berlinger to defend their constitutional rights.

Although the American media has been on hand to catch BP with its tactics and ethical shorts down, the Chevron situation took place far from the lens of most American journalists and is the kind of story often overlooked by the mainstream American press. Whatever the reason for that may be, the chilling effect that this ruling will have on investigative filmmakers like Berlinger will mean that stories like this might not be told in the future. This is such a matter of grave importance that the bulk of American media companies signed on to leading constitutional lawyer Floyd Abrams friend-of-the-court brief recently filed on behalf of Berlinger's case. The group filing included all three major broadcast networks, the New York Times and the Washington Post.

The crudest thing of all in this story is the tilt in this country in favor of corporations. From the Supreme Court's recent decision allowing corporations to flood Washington with campaign finance -- which in turn keeps our country tethered to an antiquated fuel source that is destroying our environment -- to Chevron's current attempt to destroy the protections that allow a free press to function, it is time we put the future of this country back in the hands of its citizens, not its corporations.

Having observed hundreds of thousands of Americans in almost 50 states wait in line as long as 90 minutes to spend a moment with a touring original copy of the Declaration of Independence, born the night of July 4, 1776, our country's birth certificate, I am here to report that the American people, the solid American people, are ready for a rebirth of citizenship. They are ready to be freed, to become born-again Americans -- citizens who once more declare their independence, this time from the growing corporatocracy in which we find ourselves today.

I suggest that we begin by applauding today's appellate court decision granting Berlinger a stay in order to have a full hearing on his appeal. I, along with my fellow citizens, hope that these judges will continue to put the sanctity of the First Amendment ahead of the rights of corporations when Berlinger's appeal is heard in July.

* * * * * * *

To learn more about how to help with Mr. Berlinger's legal efforts, please click here

Saturday, June 5, 2010

Bob Herbert of NYT: Chevron Has Its Own BP Disaster In Ecuador

The following article appeared in today's New York Times:

Disaster in the Amazon

By BOB HERBERT

BP’s calamitous behavior in the Gulf of Mexico is the big oil story of the moment. But for many years, indigenous people from a formerly pristine region of the Amazon rainforest in Ecuador have been trying to get relief from an American company, Texaco (which later merged with Chevron), for what has been described as the largest oil-related environmental catastrophe ever.

“As horrible as the gulf spill has been, what happened in the Amazon was worse,” said Jonathan Abady, a New York lawyer who is part of the legal team that is suing Chevron on behalf of the rainforest inhabitants.

It has been a long and ugly legal fight and the outcome is uncertain. But what has happened in the rainforest is heartbreaking, although it has not gotten nearly the coverage that the BP spill has.

What’s not in dispute is that Texaco operated more than 300 oil wells for the better part of three decades in a vast swath of Ecuador’s northern Amazon region, just south of the border with Colombia. Much of that area has been horribly polluted. The lives and culture of the local inhabitants, who fished in the intricate waterways and cultivated the land as their ancestors had done for generations, have been upended in ways that have led to widespread misery.

Texaco came barreling into this delicate ancient landscape in the early 1960s with all the subtlety and grace of an invading army. And when it left in 1992, it left behind, according to the lawsuit, widespread toxic contamination that devastated the livelihoods and traditions of the local people, and took a severe toll on their physical well-being.

A brief filed by the plaintiffs said: “It deliberately dumped many billions of gallons of waste byproduct from oil drilling directly into the rivers and streams of the rainforest covering an area the size of Rhode Island. It gouged more than 900 unlined waste pits out of the jungle floor — pits which to this day leach toxic waste into soils and groundwater. It burned hundreds of millions of cubic feet of gas and waste oil into the atmosphere, poisoning the air and creating ‘black rain’ which inundated the area during tropical thunderstorms.”

The quest for oil is, by its nature, colossally destructive. And the giant oil companies, when left to their own devices, will treat even the most magnificent of nature’s wonders like a sewer. But the riches to be made are so vastly corrupting that governments refuse to impose the kinds of rigid oversight and safeguards that would mitigate the damage to the environment and its human and animal inhabitants.

Pick your venue. The families whose lives and culture are dependent upon the intricate web of waterways along the Gulf Coast of the United States are in a fix similar to that of the indigenous people zapped by nonstop oil spills and the oil-related pollution in the Ecuadorian rainforest. Each group is fearful about its future. Both have been treated contemptuously.

The oil companies don’t care. Shell can’t wait to begin drilling in the Arctic Ocean off the northern coast of Alaska, an area that would pose monumental problems for anyone trying to deal with a catastrophic spill. The companies pretend that the spills won’t happen. They always say that their drilling operations are safe. They said that before drilling off Santa Barbara, and in the rainforest in Ecuador, and in the Gulf of Mexico, and everywhere else they drill.

Their assurances mean nothing.

President Obama has suspended Shell’s Arctic drilling permits and has temporarily halted the so-called Arctic oil rush. What we’ve learned from the BP debacle in the gulf, and from the rainforest, and so many other places, is just how reckless and inept the oil companies can be when it comes to safeguarding life, limb and the environment.

They’re dangerous. They need the most stringent kind of oversight, and swift and severe sanctions for serious wrongdoing. At the same time, we need to be searching with a much, much greater sense of urgency for viable energy alternatives. Treating the Amazon and the gulf and the Arctic as if they were nothing more than toxic waste sites is an affront to the planet and all life-forms that inhabit it.

Chevron doesn’t believe it should be called to account for any of the sins Texaco may have committed in the Amazon. A spokesman told me that the allegations of environmental damage were wildly overstated and that even if Texaco had caused some pollution, it had cleaned it up and reached an agreement with the Ecuadorian government that precluded further liability.

The indigenous residents may be suffering (they’re in much worse shape than the people on the gulf coast) but the Chevron-Texaco crowd feels real good about itself. The big money was made, and the trash was left behind.

Wednesday, June 2, 2010

Pat Murphy: Chevron’s Bogus Blogger Up to Old Tricks

Surprise, surprise: Pat Murphy, purveyor of the SanFranciscoSentinel.com (a small online "newspaper" that sells editorial control of its opinions while pretending to offer neutral commentary) is once again carrying Chevron's water in the company's never-ending campaign to escape justice for its environmental catastrophe in Ecuador.

Pat Murphy

This time, Murphy has attacked the indigenous people of Ecuador suing Chevron for having the temerity to characterize Chevron's man-made, planned disaster in Ecuador as larger than BP's accidental spill in the Gulf. In Ecuador, Chevron discharged the equivalent of at least 345 million gallons of crude into the rainforest where six indigenous groups lived for centuries. Due to Chevron, all of those indigenous groups have seen their lifestyles devastated – not dissimilar to what is happening right now to the fisherman of Louisiana.

The U.S. government's most recent estimate is that BP has discharged between 18 and 39 million gallons of crude into the Gulf. At the top end, that's about one-tenth as large as the dumping Chevron did in Ecuador when its predecessor company Texaco operated a large oil concession from 1964 to 1990. Texaco's sludge, now Chevron's problem, is still there: Take a look at photos of the contamination and its impacts.

The question for Murphy is: Why is it a tragedy when 18 to 39 million gallons of contamination are spilled in America, but Chevron is getting "defrauded" when people call attention to 345 million gallons the company systematically dumped in Ecuador?

The answer is simple: Because in the world according to Chevron, Ecuadorian lives aren't worth much – particularly when they are indigenous people living in the forest. And, of course, BP isn't paying Pat Murphy to spread their propaganda while Chevron is.

Amazon Watch and the Amazon Defense Coalition have demonstrated that Pat Murphy is a paid blogger who has sold editorial control of his website to Chevron – an accusation that Murphy has never denied. (He once stated that he was not being paid directly by Chevron.) Over the past two years Murphy has offered a steady stream of commentary and misleading facts meant to discredit Chevron's critics – critics that Chevron is working hard to silence. And if you are Googling the Chevron case in Ecuador from Rotterdam or some other far-flung place, you might actually think the "San Francisco Sentinel" is the leading newspaper of San Francisco rather than one of the least-trafficked news sites on the Web (it ranked 171,939 in popularity among websites, compared to 851 for the San Francisco Chronicle).

Of course, the practice of blogging or writing articles on behalf of clients without disclosing payments is considered highly unethical. But that's never stopped Murphy before, and we don't expect it to stop him now. When you lay down with dogs, as Murphy has with Chevron, you get fleas.

If Murphy really wants to understand the issues in Ecuador – and not just squander any semblance of journalistic integrity that he might have once had (or thought he had) – we would invite him to visit the impacted region. If Murphy had to drink the poisoned water being forced on the local inhabitants because of Chevron, he might be slower to take what amounts to "blood money" to help cover up an environmental and human rights tragedy that is unparalleled on Earth.

Tragic BP Gulf Spill Casts Light on Chevron Disaster in Ecuador

The Amazon Defense Coalition put out this release today:

Tragic BP Gulf Spill Casts Light on Chevron Disaster in Ecuador


While BP Is Largest Spill In U.S.,Chevron's Ecuador Disaster Is Largest In World


Chevron Admits Dumping at Least 16 Billion Gallons of Toxic Waste into Rainforest

SAN FRANCISCO--(BUSINESS WIRE)--As the nation remains riveted on the tragic BP spill unfolding in the Gulf of Mexico, Chevron still holds the record for creating the world's largest oil-related contamination and it happened deliberately in the populated Amazon rainforest in an even more sensitive ecosystem than the marshes of Louisiana.

Chevron's illegal oil-related dumping is at the root of a class action lawsuit in Ecuador where the oil giant now faces more than $27 billion in damages for poisoning an area the size of Rhode Island with 18.5 billion gallons of toxic "produced water," or more than 474 times the amount of contamination estimated to have been spilled in the Gulf of Mexico tragedy, according to calculations made by representatives of the plaintiffs.

Chevron's contamination has decimated the traditional lifestyles of five indigenous groups in the area, and one group has disappeared, according to the lawsuit. The pollution occurred when Texaco (now owned by Chevron) was the exclusive operator of a large oil concession in the rainforest from 1964 to 1990.

A 17-year trial against Chevron taking place in Ecuador's courts – moved there from U.S. federal court in 2002 at Chevron's request – is expected to end later this year. Chevron has declared the trial court is "biased" against it and has announced it will not pay any adverse judgment.

The plaintiffs in the trial are tens of thousands of rainforest residents, including the surviving members of indigenous groups called the Secoya, Cofan, Siona, Huarani, and Kichwa.

These are the facts of Chevron's dumping in the Amazon and how it compares to the BP spill in the Gulf:

  • In the 1970s, Chevron's predecessor company Texaco (bought by Chevron in 2001) perforated hundreds of oil wells across a 2,000 sq-mile swath of rainforest that was home to the indigenous groups. The area where Chevron operated is one of the most biodiverse in the world, containing almost 10% of the world's plant species.
  • Instead of re-injecting toxic "produced water" (which contains high levels of salt, pure crude, and the carcinogen benzene) deep into the ground – the industry practice then recommended by the American Petroleum Institute – Chevron dumped 18 billion gallons of it into rivers and streams. These waters had been used thousands of years by the local population for its drinking water.
  • The BP tragedy was an accident; Chevron's discharge in Ecuador was deliberate.
  • Chevron, as reported by 60 Minutes last year, also built more than 900 unlined waste pits to permanently store toxic sludge – another violation of industry standards. It then built pipes to drain the sludge into nearby streams.
  • Chevron also burned gas without controls, creating enormous air pollution and a "black rain" phenomenon in the rainforest.

These facts have been documented in numerous testimonies, in more than 200,000 pages of trial evidence, and in the book Amazon Crude written by law professor Judith Kimerling and published in 1991 just before Texaco fled the country in 1992, according to representatives of the plaintiffs.

Experts have concluded that the Chevron discharged at least 345 million gallons of pure crude oil directly into the rainforest ecosystem, including 17 million from ruptured pipelines. To put this in perspective, the U.S. government has estimated that between 18 and 39 million gallons have been spilled thus far in BP's disaster in the Gulf, and approximately 11 million gallons of pure crude was spilled during the Exxon Valdez disaster.

Just like BP in the Gulf spill, Chevron continually tries to obfuscate the facts and cover up its responsibility in Ecuador:

  • In 1972, a Chevron executive issued a memo ordering that all documents in Ecuador documenting oil spills be destroyed.
  • Chevron claims it was "released" from further clean-up responsibility based on a "release" signed with the Government of Ecuador. But Chevron's "remediation" was a fraud. Evidence presented at trial shows that the small number of pits "remediated" are still as contaminated as sites not touched.
  • As a result of Chevron's fraudulent "remediation," two company lawyers and ten former Ecuadorian government officials are now under indictment in Ecuador for lying about the clean-up results.
  • During the trial in Ecuador, lawyers for the plaintiffs have been subjected to death threats, a Nixon-style dirty tricks campaign to remove a judge, and the use of junk science by Chevron "experts."
  • Chevron claims high cancer rates are caused not by exposure to toxins, but by the poor personal hygiene among the local population.
  • Chevron also has tried to silence its Ecuador critics – pressuring media outlets to deny advertising about the company's human rights problems and even going as far to have five people arrested at its shareholder meeting last week.

For photos of this horrible disaster, click here, or get the book Crude Reflections by Lou Dematteis and Kayana Szymczak. A complete summary of the evidence can be found here. For Chevron's lies, click here. To purchase a copy of an award winning documentary film about the case, "Crude," click here. For the latest developments, see www.chevrontoxico.com.