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Will Wray '10: Crude justice

By Will Wray

Opinions Columnist

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Published: Monday, October 19, 2009

Updated: Monday, October 19, 2009

Beware: you are being recruited for a war--a deeply unjust war. It isn’t fought with guns or bombs, but the consequences are no less dire. What is at stake is nothing less than the well-being of the nascent seed of international justice and the future of sustainable development in impoverished countries worldwide.

In 1964, Texpet entered into an “oil concession” with the government of Ecuador, in which Texpet was the minority shareholder and operator. Upon termination of the concession in 1992, Texpet conducted a $40 million environmental remediation campaign that was validated by independent laboratories and approved by Ecuador’s government. The government then granted Texpet release from any remaining liability related to the consortium’s operations.

Chevron (which acquired Texpet in 2001) is now being sued for $27 billion — 60 times Texpet’s total earnings from the concession — for alleged environmental damage and illnesses resulting from the drilling operations. 

“Crude” is a documentary which attempts to reframe the story as a David vs. Goliath battle of indigenous tribal Amazonians versus a greedy, ruthless multinational corporation. It was showcased at Brown on Oct. 3 by the Amazon Defense Coalition and Esperanza International, two non-governmental organizations who hope to cash in on damages attributed to Chevron. Why do they bother trying to win over Brown students’ hearts and minds? Because they know their case has no chance in a court of law.

For starters, the case is not fought by the indigenous people of the area, but by a contingency-fee attorney from the Upper West Side of Manhattan.     

The case was unapologetically filed ex post facto, under a law passed seven years after the concession was lawfully terminated. The NGOs propagating “Crude” would have us indefinitely delay the rule of law in underdeveloped countries in favor of knee-jerk reactions to transfer money from successful corporations to the poor.

Why should we care? If governments allow the invalidation of contracts they were a party to, the resulting legal volatility will deter any venture from developing capital-intensive infrastructure or introducing modern services to those who desperately need them.

Experts have concluded that there is no significant risk to human health at the remediated well sites. There has been no increased risk of cancer in or around the affected area and water samples met U.S. EPA and World Health Organization standards for hydrocarbons and metals. Why, then, is ill-health so prevalent amongst the indigenous tribes? The answer is simple: 90 out of 100 water samples contain dangerous quantities of human and animal waste.

The locales shown in “Crude” were filmed in areas that PetroEcuador, the government oil company, has been operating since the end of the concession. PetroEcuador has a long and well-documented history of environmental irresponsibility. Taking samples from these areas and blaming Texaco is akin to your current landlord calling you sixteen years after you moved out and demanding you pay a fine for a mess that subsequent tenants left behind.

This PR war is fought with misleading photography (transport a little girl in front of PetroEcuador oil, press “record”), insidious misnomers (“The Amazon Chernobyl”) and shocking insinuations.

To wit: The Ecuadorean frontman for the plaintiff, Pablo Fajardo, repeatedly implies that Chevron murdered his brother and ominously intones that the incident has “never been investigated.” In truth, Wilson Fajardo’s death was investigated by the police, and the three local men responsible were identified.

The presiding judge recently recused himself after video evidence showed him soliciting bribes on the order of millions of dollars, acknowledging that the verdict has been pre-ordained and explaining how damages paid would end up in the hands of the government — which would use the cash windfall to drill more.

The plaintiff’s case is hopeless. The Amazon Defense Coalition is clinging to “Crude” as a last ditch effort to embarrass Chevron into paying a handsome settlement.

Why are we Brown students so willing to abandon our critical faculties and jump to their aid? Because the way this story has been packaged, as that of a successful, evil capitalist company in a legal battle with exploited “underdog” indigenous people, fits into a baseless Manichean narrative that decides the issue for most people before the facts are ever heard.

When the CIA came to recruit at Brown, students writhed around in pools of fake blood to protest. When “Crude” came to do the same, students sat and imbibed two hours of contemptible propaganda.

Though less visible to the naked eye, the costs of complacent sanctimony are dear. I ask that we defy the temptation to indulge in uncritical self-righteousness, and search for truth and justice in places where our political inclinations tell us not to look.


Will Wray ’10 is not (yet) employed by Big Oil.

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8 comments Log in to Comment

G B
Tue Nov 24 2009 14:43
As previous posts seem to have done a relatively good job of pointing out most of the flaws in this article, I will concentrate my efforts on addressing the technical and scientific misrepresentations in one particular paragraph -

‘Experts have concluded that there is no significant risk to human health at the remediated well sites.There has been no increased risk of cancer in or around the affected area and water samples met U.S. EPA and World Health Organization standards for hydrocarbons and metals. Why, then, is ill-health so prevalent amongst the indigenous tribes? The answer is simple: 90 out of 100 water samples contain dangerous quantities of human and animal waste.’

Firstly, I have found no reliable technical reports that have proven the remediation of well sites and production pits operated exclusively by Texaco in the concession area was sufficient. As the ‘evidence’ provided by Chevron has gradually collapsed, the defendant has stopped trying to prove its innocence and instead has attempted to shift the blame. The 2008 Technical Summary Report of the Supreme Court of Nueva Loja (the court that Chevron insisted the trial be transferred to form the US) found that -

‘During the Judicial Inspections, the experts of the defendant and plaintiffs collected samples from 34 production well and 11 station sites. Moreover, the experts for the defendant collected samples from three well sites where the plaintiffs’ experts did not collect samples, and plaintiffs’ experts collected samples from another three well sites where defendant’s experts did not collect samples [....] At every production well and station that was sampled, at least one soil sample contained TPH (Total Petroleum Hydrocarbons) concentrations exceeding 1,000 ppm. This fact indicates that crude oil has been spilled or leaked at every one of these sites and that TPH concentrations exceed the Ecuadorian standard in at least one sample at each site.’’
Engineer Richard Stalin Cabrera Vega, Expert for the Court of Nueva Loja, March 24, 2008

Furthermore, the statement about World Bank and US Environmental Protection Agency (EPA) standards is misleading. For example, according to the World Bank Environmental Health and Safety Guidelines, safe waste disposal methods may include -

Re-injection into the reservoir to aid extraction
Injection into a dedicated disposal well, drilled to a suitable receiving subsurface geological formation
Other possible re-use such as - irrigation, industrial use or dust control provided the chemical nature of the produced water is compatible with such uses

In the Ecuadorian Amazon, Chevron abandoned 916 waste pits, many of which were unlined or lined with materials that did not meet guidelines. The water was not processed or reinjected which was (and continues to be) the industry preferred and generally accepted practice. At the same time, Texaco operating in the US reinjected waste at most drilling sites at a cost of $1 million per well. The decision to not do so in Ecuador was made with an awareness of the risks to plant, animal and human life.

Max German
Thu Oct 22 2009 11:08
Typical of people like Wilma T who can’t back up their empty rhetoric with facts. I’ll ask her again for on example of something I’ve written about Karen Hinton that isn’t true. If she can’t provide proof to support her accusations, then they hold no credibility. So she just resorts to name calling. When you don’t have facts, that’s all you are left with.
Wilma T
Wed Oct 21 2009 12:09
@Max: One of the first things I learned about the internet (other than not to click on anything that blinks and says I need a system scan) is not to feed the trolls. And you, my friend, are quite clearly a troll. I have no interest in wasting my time talking to someone as completely devoid of listening skills and incapable of independent thought as you are.
Max German
Tue Oct 20 2009 17:13
Wilma T, please educate me and point out the things I’ve written about Karen Hinton that aren’t true.
Wilma T
Tue Oct 20 2009 13:50
Wow. What chutzpah! You have completely misrepresented this case and the events leading up to it, and then you have the nerve to accuse people who disagree with you of abandoning their critical faculties?

You should definitely look for a job with Big Oil if you graduate (the way that you plagiarize Chevron's press releases makes me wonder if you'd do that as obviously in other situations). Whatever you do, don't pursue a career in journalism. You haven't the "critical faculties" to even appear to be balanced or independent.

And Max I've seen your blogs before. All you do is personally attack Karen Hinton and the ADC. If you really care about the issue, maybe you should actually educate yourself as to the facts involved instead of spending your days throwing corporate mud?

Unlike this article, Crude is actually a very well-balanced documentary in which Chevron and its defenders are able to express their point of view. If people who see the movie seem to be against Chevron afterwards, maybe that's because what Chevron has done is wrong and caused real harm to innocent people? I encourage people to see the movie and decide for themselves.

Max German
Mon Oct 19 2009 17:00
You just can’t believe anything Karen Hinton / Anna Key say. They are, after all, the same person. Karen Hinton has a long and growing track record of lies. Just Google “Hinton Communications” or see http://hintoncommunicationswatchact.wordpress.com/hinton-communication-list-of-lies/

Who’s funding the Amazon Defense Coalition? Why won’t you reveal who’s funding them? Let’s have some transparency and see the books. If you are a credible and responsible Public Relations “professional” why aren’t you writing retractions for all the press release you’ve written that have been proven false?

Simply put, Karen Hinton is a paid hack with a miserable record of publishing press releases full of lies and misleading statements.

For Karen Hinton to talk about “inaccuracies and inconsistencies” is hilarious considering her long list of inaccuracies and inconsistencies.

Anna Kay
Mon Oct 19 2009 12:11
I respectfully disagree. Chevron bought a faulty system from Texaco and let the contaminants leak into the ground and water around; and that makes Chevron guilty of causing and environmental disaster. The judge in Chevron's "spy" videos has never really discussed or accepted the bribe, even though the two guys were pushing it pretty hard. He recused himself making it possible for the case to move forward. And, do you really believe that oil is not harmful to people?! Sounds a little bit like Chevron's PR woman on 60 minutes when she said that the oil in her makeup is not doing any harm to her skin, so the oil that's been leaking out of the waste pits into the Amazonian jungle cannot be bad either.

Here's the other side of the story: http://www.thechevronpit.blogspot.com

Karen Hinton
Mon Oct 19 2009 08:09
I am the spokesperson for the Amazon Defense Coalition, which represents the plaintiffs in the lawsuit against Chevron. I would like to correct several facts in this piece. Texaco was the sole operator of the well sites from 1964 until 1990. As the builder and operator of the well sites, Texaco is legally responsible for the 18 billion gallons of toxic waste it dumped into the rainforest and the 900 plus unlined oil pits it built to store the waste -- waste that continues to leech into the soil and water.

The toxic pollution that Texaco left behind when it exited the country in 1992 remains and it continues to be the cause of deaths and illnesses among the people living there. Knowing all of this, Chevron elected to purchase Texaco in 2001, so now Chevron owns the problem.

The original lawsuit was filed in the US in 1993, only a year after Texaco left. This lawsuit is a continuation of the US lawsuit, now being heard in Ecuador -- by the way at both Texaco's and Chevron's request. They fought in US courts to have the lawsuit moved to Ecuador. We don't defend Petroecuador's practices, but they do not absolve Texaco and now Chevron's responsibility for cleaning up the contamination at the sites Texaco built and operated. Chevron can always file a lawsuit against Petroecuador and has done so in the US; however, Chevron has lost one such effort, when the US Supreme Court recently refused to hear Chevron's appeal of lower court rulings favoring the government of Ecuador.

Contrary to what Chevron says, Texaco did not clean up the pits. The pits that Texaco said it cleaned have toxic levels as high or higher than the pits not cleaned. Evidence has been filed in the trial that confirm this. Over 60,000 sample results have been entered into evidence, the vast majority showing illegal levels of toxic waste. A large number of these samples were gathered by Chevron itself.

Pits in the US can be used for storage but only for temporary storage and only in unpopulated areas. The waste must be re-injected deep into the ground. This method is safe and much, much more expensive than what Texaco did, which was to simply dig a big hole and dump the formation water and oil into it.

The so-called remediation agreement is a fraud because Texaco simply put dirt into the pits to cover them up. This made the situation worse because people thought the pits were cleaned so they built shacks on top of them! Also, the agreement exempted third-party claims, such as ours. The agreement involved only government claims.

The bribery scheme that Chevron rolled out on YouTube and through its press materials only months before the Ecuadorian court was expected to issue a damage award is full of inaccuracies and inconsistencies. Chevron is the desperate one, frantically searching for ways to delay this judgment. For more information, see this document and read our blog: http://thechevronpit.blogspot.com

Chevron's Unanswered Questions:
http://chevrontoxico.com/news-and-multimedia/2009/0925-questions-about-chevron-role-in-ecuador-bribery-scandal.html searched=unanswered+questions&advsearch=allwords&highlight=ajaxSearch_highlight+ajaxSearch_highlight1+ajaxSearch_highlight2

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