Chevron

US judge blocks enforcement of Chevron judgment

A judge for the US District Court for the Southern District of New York on March 4 ruled (PDF) that US courts may not be used to collect $9.51 billion in fines and legal fees from an Ecuadoran court's judgment against Chevron. Judge Lewis Kaplan wrote in his near 500-page ruling that the punishment inflicted against Chevron was not justified, and that the Ecuadoran court's judgement "was obtained by corrupt means." Kaplan asserted that fraudulent evidence had been introduced in the case, and that lawyers arranged to write the opinion against Chevron themselves by coercing a judge. Hewitt Pate, Chevron vice president, stated regarding the judgment, "We are confident that any court that respects the rule of law will likewise find the Ecuadorian judgment to be illegitimate and unenforceable." Lawyers for Ecuadoreans reported that they will be filing an appeal, saying the decision "constitutes a mockery of the rule of law and will not serve to reduce the risk the oil company faces in the imminent collection of the sentence dictated against it by the Ecuadorean justice system."

Ecuador high court halves judgment against Chevron

Ecuador's National Court of Justice on Nov. 13 ordered the Chevron company to pay $9.51 billion in fines and legal fees. This was a significant reduction from the previous $18 billion judgment. The lawsuit, brought by the Amazon Defense Front, arises out of Chevron's drilling for oil in Ecuador* and the resulting pollution in the rainforest. The original judgment was handed down in 2011, but Chevron has been appealing since and has also removed its presence in Ecuador. Chevron won an arbitration to the Hague's Permanent Court of Arbitration (PCA) which stated Chevron was released from pollution liability a full four years before the lawsuit was filed. Chevron continues to allege fraud and corruption resulted in the judgment and has an ongoing lawsuit (PDF) against Ecuadoran plaintiffs and their lawyer for racketeering. However, other groups argue that Chevron's negligent practices caused immense damage from pollution and is simply attempting to avoid any judgment.

Romania: protest wave against mega-mine

Some 20,000 Romanians marched and formed a human chain around the parliament building in Bucharest Sept. 21 to protest plans by Canadian firm Gabriel Resources to establish Europe's biggest open-pit gold mine at Rosia Montana in the Apuseni Mountains of Transylvania. Bucharest has seen daily protests against the  project for two weeks, organized by the campaign Salvati Rosia Montana, with thousands more taking to the streets in other Romanian cities. The protests began after the government proposed a law Aug. 27 to give extraordinary powers to Gabriel Resources' local partner, Rosia Montana Gold Corporation, allowing the company to relocate people whose homes are on the perimeter of the mine site, and guaranteeing all necessary permits within set deadlines, regardless of court rulings or public participation requirements. The operation would involve the destruction of three villages and four mountains. (EuroNews, Sept. 22; MondoNews.ro, Sept. 21; The Guardian, Mining.com, Sept. 17; BBC News, Sept. 9)

Argentina: Mapuche occupy oil wells to protest Chevron

Indigenous Mapuche occupied four oil wells in the Vaca Muerta region in the southwestern Argentine province of Neuquén on July 16 to protest a $1 billion agreement between the state-controlled Yacimientos Petrolíferos Fiscales (YPF) oil company and the California-based Chevron Corporation to drill for oil in the area's shale deposits. (In an earlier item we wrote erroneously that the drilling was for natural gas.) The Mapuche say that the drilling, which uses the controversial method known as hydrofracking, will damage the local environment, and that the agreement was made without the required prior consultation with the indigenous communities. The protesters were also expressing solidarity with indigenous Ecuadorians who won a $19 billion judgment in 2011 against Chevron for environmental damage. The company refuses to pay.

Argentina: Mapuche to block Chevron from territory

In a press conference on July 11 representatives of Argentina's indigenous Mapuche and of indigenous communities in the Vaca Muerta region in the southwestern province of Neuquén announced plans to block the California-based Chevron Corporation from drilling for natural gas in their territories. In December 2012 Argentina's state-controlled Yacimientos Petrolíferos Fiscales (YPF) oil company signed an agreement for a $1 billion hydrofracking pilot project in the Vaca Muerta area, despite a November decision by an Argentine judge to embargo Chevron's assets in Argentina because of a $19 billion judgment against the company in Ecuador for environmental damage and injuries to the health of indigenous residents in the Amazon rainforest. YPF and Chevron are scheduled to sign an additional accord on July 15; the oil companies deny that the drilling will be on Mapuche lands.

Argentina freezes Chevron assets in Ecuador case

An Argentine judge on Nov. 8 embargoed the assets of Chevron corporation in the country, in a win for plaintiffs trying to collect on a $19 billion judgment against the company in Ecuador for environmental damage in the Amazon rainforest. Judge Adrian Elcuj Miranda upheld a petition filed by an Ecuadoran court under terms of a regional pact, the Inter-American Treaty of Extraterritorial Enforcement of Sentencies.  The embargo covers 100% of local subsidiary Chevron Argentina's stock—valued at roughly $2 billion—as well as its 14% stake in the company Oleoductos del Valle, 40% of the company's oil sales to refineries, and 40% of the funds it has deposited in Argentine banks. Chevron is the fourth-largest oil producer in Argentina, with output of 35,000 barrels per day in 2011.

High court rejects Chevron appeal in Ecuador case

On Oct. 9, the US Supreme Court declined to hear Chevron corporation's bid to block global enforcement of a $19 billion judgment by a court in Ecuador, a victory for 30,000 rainforest dwellers who brought litigation over the pollution of their lands. Chevron had asked the high court to uphold an injunction imposed in March 2010 by US Judge Lewis Kaplan in New York that would have barred worldwide enforcement of Ecuador's judgment. That injunction was overturned in January by the US Second Circuit Court of Appeals, which ruled that the oil company could challenge the Ecuadoran judgement "only defensively, in response to attempted enforcement," which the rainforest dwellers had not attempted and might never attempt in New York. The Supreme Court's rejection of the case lets the Second Circuit decision stand.

Chevron fire: how many more?

It hasn't won the merest fraction of the coverage enjoyed by the London Olympics, but last week's massive Chevron oil refinery fire in Richmond, Calif., sent hundreds of people rushing to hospitals, darkened the skies over East Bay, and has gasoline prices headed back up towards $4 a gallon. AP notes this "was just the latest pollution incident at the facility that records show has increasingly violated air quality rules over the past five years. The refinery is one of three such facilities near San Francisco that rank among the state's top 10 emitters of toxic chemicals, according to the US Environmental Protection Agency's Toxic Release Inventory. Chevron's Richmond refinery...has been cited by San Francisco Bay area regulators for violating air regulations 93 times in the past five years."

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