Replies to post #93517 on Tornado Alley (PROG)

[StephanieVanbryce]

Amazon Defense Coalition: Chevron’s Charles James Leaves Behind “Legal and Public Relations Disaster” in Ecuador Amazon Case

Stunning Fall from Grace for Former High-Level U.S. Government Official; Law Enforcement Probes of Chevron in Two Countries

01 mars 2010 12:11 PM Est – New York (USA

QUITO, Ecuador--(BUSINESS WIRE)--Chevron’s curt announcement last week that former general counsel Charles James is set to retire is due largely to his mishandling of the oil giant’s “legal and public relations disaster” over a potential $27 billion environmental liability in Ecuador, representatives of the Amazon Defense Coalition (ADC) said today.

The departure of James, known as a hard-right ideologue who worked in the Department of Justice under John Ashcroft, follows the surprise retirement of CEO David O’Reilly last year. Both James and O’Reilly were running the Ecuador legal case when it ballooned into a major public relations disaster and a potential $27 billion liability that threatens to eat up one-fifth of Chevron’s market value.

During his tenure, James ran into numerous problems with law enforcement authorities. In 2007, Chevron was forced to pay a $30 million fine to the U.S. Department of Justice because of a violation of the Foreign Corrupt Practices Act in Iraq. The company also was rebuked by the U.S. Department of the Interior for failing to cooperate with a corruption probe involving Chevron employees. Separately, two Chevron lawyers working closely with James on the Ecuador case were indicted for lying about the results of a purported environmental clean-up.

James also is being investigated by Ecuador’s national prosecutor after he and other Chevron lawyers engineered a “sting” operation against an Ecuadorian judge to undermine and delay the environmental trial. The man who conducted the sting had ties to Chevron and was caught on tape offering a bribe.

James, 56, is taking an adjunct faculty position at the law school of Arizona State University. In an interview, he said he planned to focus on charitable work and tinkering with his motorcycles; Chevron’s press release on the departure was only three paragraphs compared to nine when he was hired amid great fanfare in 2004.

Representatives of the ADC, which is suing Chevron in Ecuador for the deliberate dumping of billions of gallons of toxic waste onto their ancestral lands in the rainforest, called the departure of James a “stunning fall from grace.”

“Charles James masterminded a legal and public relations strategy for Chevron in Ecuador to hide contamination that is destroying lives, decimating indigenous culture, and devastating the company’s reputation globally,” said Pablo Fajardo, the lead lawyer in the case for the plaintiffs in Ecuador and the winner of the Goldman Environmental Prize, considered the “Nobel” of the environment.

“James created a culture of permissiveness and excessive risk-taking that permeates Chevron’s legal department to this day,” he added.

The plaintiffs filed the class action lawsuit in U.S. federal court in 1993, alleging that Texaco deliberately discharged more than 18 billion gallons of “production water” into the rainforest to cut costs when it operated a large oil concession from 1964 to 1990. Chevron purchased Texaco in 2001 for $31 billion.

Texaco and then Chevron had argued in the U.S. court that the case should be tried in Ecuador, submitting 14 sworn affidavits praising the fairness and competency of that country’s courts. Chevron also stipulated that it would submit to jurisdiction and abide by any judgment in Ecuador.

As a result of Chevron’s representations, the case was transferred to Ecuador where a trial began in 2003 that produced evidence that quickly pointed to the oil giant’s culpability.

Given the troubling evidence, James abdicated on Chevron’s earlier promises to the U.S. court and hired six public relations firms and numerous lobbyists to discredit Ecuador’s judicial system. Chevron also lobbied the U.S. government to cancel Ecuador’s trade preferences as punishment for letting its own citizens sue Chevron in their courts, despite Chevron’s earlier promise that it wanted the trial in Ecuador.

Chevron’s lobbying failed to cancel the trade preferences, but not before 26 congressmen signed a letter protesting the strategy. Rep. Linda Sanchez (D-CA) accused the oil giant of “extortion.”

** In addition to losing control of the Ecuador trial, James has entangled Chevron in a series of embarrassing situations that have angered institutional shareholders. Among his questionable calls:

Chevron in 2004 launched what turned out to be a fruitless three-year litigation odyssey to force Ecuador’s government to pay for the Ecuador clean-up. In a stunning rebuke, a New York federal judge rejected Chevron’s bid. An appeals court affirmed the decision and the U.S. Supreme Court denied Chevron’s petition for review.

** In 2008, after refusing multiple opportunities to settle the case, Chevron was hit with a damages assessment in Ecuador’s court for $27.3 billion. The company had to stave off virtual shareholder revolts over the liability at the last two annual meetings.

** In July 2009, James suffered another setback when Chevron voluntarily withdrew a claim before a U.S. federal court that its legal release – secured by fraud, according to the plaintiffs – absolved of it all clean-up responsibility. Chevron apparently was worried it would lose in a U.S. court where it could not claim it was the victim of bias.

** In Ecuador, James oversaw a bungled legal strategy where the company’s local counsel produced soil samples that demonstrated the existence of high levels of contamination at former Texaco sites – essentially proving the claims of the communities, according to a court-appointed independent Special Master.

** James’ strategy also caused severe damage to Chevron’s brand. Despite hiring large public relations firms such as Hill & Knowlton and Edelman Worldwide, Chevron was embarrassed repeatedly last year with unflattering reports on the Ecuador issue on 60 Minutes and in the Wall Street Journal, New York Times, Washington Post, Politico and in various oil industry trade publications.

“Charles James is a formidable adversary but he led Chevron down a path of unnecessary confrontation,” said Steven Donziger, a U.S. legal advisor to the plaintiffs. “His ideological blinders distorted his judgment and played into the hands of the rainforest communities. No amount of Chevron spin can cover up the humanitarian catastrophe in Ecuador due to the company’s failure to take responsibility for its actions.”

Fajardo added: “It appeared to me that James grossly underestimated the determination of thousands of Ecuadorians and as a result Chevron shareholders face legal risks that no other oil major in the world has on its books.”

“These risks, and the human suffering in Ecuador’s rainforest, will define the legacy of James,” Fajardo added.

http://www.businesswire.ca/portal/site/ca-fr/permalink/?ndmViewId=news_view&newsId=20100301006776&newsLang=en

[fuagf]

John Watson, email re Ecuador .. [e-mail]

Was told his voicemail is full, the email works.

[fuagf]

Chevron Found Guilty In Amazon Pollution Case

February 16, 2011 | Mitch Anderson | Source: SFGate City Brights

On Monday, after 17 years of intense legal battle, Chevron, the second largest oil company in the United States, was found guilty by Ecuadorian courts for massive environmental contamination of the Amazon and was ordered to pay a fine of $9 billion in damages. This represents the largest judgment ever against a U.S company for environmental contamination and marks the first time that indigenous and farmer communities have successfully won a judgment in foreign courts against an American company for environmental crimes abroad.
Background:

From 1964 to 1990 Chevron (formerly Texaco) operated a large oil concession in the northeastern
region of the Ecuadorian Amazon, reaping billions of dollars in profits before pulling out of Ecuador in 1992.

Chevron has admitted during the long-running trial in both US and Ecuadorian courts that it created a system of oil extraction that led to the deliberate discharge of approximately 18 billion gallons of chemical-laden "water of formation" into the streams and rivers of Ecuador's Amazon, home to six indigenous groups.

Over the course of more than two decades of operations, Chevron abandoned more than 900 unlined waste pits gouged out of the jungle floor that leech toxins into soils and streams; contaminated the air by burning the waste pits; dumped oil along roads; and spilled millions of gallons of pure crude from ruptured pipelines. Internal company documents demonstrate that Chevron officials ordered field workers to destroy records of oil spills. The company refused to develop an environmental response plan or pipeline maintenance program, and Chevron never conducted a single health evaluation or environmental impact study despite the obvious harm it was causing.


Crude oil left by Texaco (now Chevron) in the Amazon rainforest

As a result of Chevron's pollution, several indigenous groups in Ecuador have been decimated and more than 9,000 people are at significant risk of contracting cancer in the coming decades, according to reports submitted to the court. Scientific evidence submitted during the trial definitively proves that all of Chevron's 378 well and production sites, most of which were built in the 1970s, are extensively contaminated.
The Verdict in Ecuador

The historic multi-billion verdict against Chevron, which reported a net profit of $19 billion last year, is a tremendous step forward for the Ecuadorian communities who have been suffering for decades from Chevron's contamination. However, as expected, oil giant Chevron has vowed to appeal the decision and continue their scorched earth legal and public relations campaign, designed to exhaust the plaintiffs' resources, portray the case and the courts in Ecuador as corrupt, and, in the end, evade enforcement of the multi-billion verdict.

In the wake of the court ruling on Monday, the Goldman Environmental prize winning attorney Pablo Fajardo, who represents the indigenous and farmer communities of the Ecuadorian Amazon, released a statement highlighting Chevron's "intentional and unlawful contamination of Ecuador's rainforest". Here is a brief excerpt:

"Rather than accept responsibility, Chevron has launched a campaign of warfare against the Ecuadorian courts and the impoverished victims of its unfortunate practices. We call on the company to end its polemical attacks and search jointly with the plaintiffs for common solutions. We believe the evidence before the court deserves international respect and the plaintiffs will take whatever actions are appropriate consistent with the law to press the claims to a final conclusion."

Oil industry analysts and environmental law experts have weighed in on the precedent-setting nature of the historic ruling in Ecuador.

According to a story filed by the Los Angeles time, John van Schaik, an oil analyst at Medley Global Advisors in New York, said: "...the fact that the Lago Agrio court ruled in favor of the plaintiffs sends a signal to oil companies that, more than ever, they need to be good corporate citizens. The ruling shows that times have changed, and companies need to take environmental concerns seriously."

In a Bloomberg report, Robert Percival, a law professor and director of the environmental law program at the University of Maryland School of Law in Baltimore, said: "The case really sends a message that companies operating in the undeveloped world cannot rely on a compliant government or lax environmental rules as a way of permanently insulating themselves from liability."

Since acquiring Texaco in 2001, Chevron's legal and public relations strategy with respect to Ecuador, has been motivated not only by a desire to avoid a massive multi-billion payout, but also by the broader implications this case has for the future of the global extractives industry. More to the point, Chevron's scorched earth tactics have been designed to delay and disrupt the outcome of the long-running environmental trial in Ecuador, but also, and perhaps more importantly, to demonstrate clearly to communities around the world that the pursuit of justice against multinational corporations is futile.

But now the judgment is in. Chevron has been found guilty of massive environmental crimes in the Amazon. The San Ramon based oil giant has been ordered to pay a multi-billion dollar judgment.

Over the next weeks and months, the oil industry and right-wing press outlets will continue to laud Chevron's bravado, encouraging the oil major to undermine the rule of law in Ecuador and condemn the affected people of the Amazon to years of continued suffering.

And the question to all of us is: How far have we come as a people? Will the 21st century
be a time where the greed of a few tramples the hopes of the many? Or will justice trample greed?

What we can be sure of is that the indigenous and farmer communities of the Ecuadorian Amazon
will continue, against all odds, in their heroic struggle for clean water, health and a brighter future.
http://amazonwatch.org/news/2011/0216-chevron-found-guilty-in-amazon-pollution-case

Chevron Ordered to Pay $9 Billion for Contamination in Ecuador
Guillermo Grefa

"I can now dream of drinking clean water, water with no oil residue, and that the earth will begin to clean and heal."

Watch Videos of the Plaintiffs Reacting to the Decision
http://amazonwatch.us1.list-manage1.com/track/click?u=9a44dab15339533e574167469&id=89ce8424cb&e=d215a09c54

This week an unprecedented and incredibly important blow was struck for environmental protection, human rights and corporate accountability. In a historic decision, after a 17 year legal battle, an Ecuadorian court has found Chevron guilty of massive environmental contamination and ordered the company to pay $9 billion to clean up their mess, provide potable water, and fund critical health care.

The decision from the Lago Agrio judge vindicates what indigenous peoples and local farmers have been saying, and suffering, for decades – that Chevron drilled, dumped, and never looked back. Now, a court of Chevron's choosing, using mostly the company's own evidence, has found that the company is liable in one of the largest judgments against a US company for crimes abroad.

Amazon Watch and its supporters stand in celebration and solidarity with the 30,000 plaintiffs who have achieved this tremendous milestone in their struggle for justice.

At this moment in history we are asking each of you to redouble your effort and join with the plaintiffs who will continue to fight until Chevron cleans up its toxic mess.

Visit ChevonToxico.com and send a message to Chevron's CEO!
http://amazonwatch.us1.list-manage.com/track/click?u=9a44dab15339533e574167469&id=063b2fd419&e=d215a09c54

Change your Facebook profile picture to show your solidarity,and share with your friends.
http://amazonwatch.us1.list-manage1.com/track/click?u=9a44dab15339533e574167469&id=6e6e94bb4f&e=d215a09c54

Also, please donate to the Clean Up Ecuador Campaign so that we may continue and expand our efforts to make Chevron clean up the Amazon.
http://amazonwatch.us1.list-manage.com/track/click?u=9a44dab15339533e574167469&id=348caa6c07&e=d215a09c54

The long struggle for justice will not end until the affected communities get a clean up, potable water, and critical funds for health care. But this week we are one pivotal step closer to justice.

Thank you for your support! ChevronToxico

Han Shan .. Coordinator, Clean Up Ecuador Campaign

P.S. As always, please help us spread the word by sharing this effort via your social networks.
Like http://chevrontoxico.com/take-action/send-chevron-a-message.html on Facebook
Like on Facebook | Share on social networks .. http://us1.campaign-archive2.com/?u=9a44dab15339533e574167469&id=1ae834f2f6&e=d215a09c54
Forward to a friend .. http://us1.forward-to-friend.com/forward?u=9a44dab15339533e574167469&id=1ae834f2f6&e=d215a09c54

See also .. Chevron to appeal.. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59940674&txt2find=ecuador

Chevron demands "Crude" filmmaker hand over footage ..
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=49566630&txt2find=ecuador .. and following ..

Exxon's soaring profits come after similarly large increases at its rivals. Last week Chevron, the number two US oil firm, reported
a 72% rise in its fourth quarter earnings. Third placed ConocoPhillips reported a 46% rise for the fourth quarter.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59381279&txt2find=chevron