Two U.S. Senators Express Concern Over Chevron Lobbying

Reposted from: Global Exchange

Sens. Leahy and Obama Ask USTR Not To Let Chevron Interfere in Ecuador Trade Talks

Amazon Watch
February 10, 2006

Washington D.C -- Already under fire for its record profits, Chevron is coming under increased scrutiny in the nation‚s capital over its attempts to use U.S. trade negotiations with Ecuador to undermine a historic environmental lawsuit brought against the oil giant by residents of Ecuador‚s rainforest.

Chevron faces a potential liability in the multi-billion dollar case for clean-up in Ecuador of what experts believe is the worst oil-related contamination in the world, affecting an estimated 30,000 people, including the members of five indigenous groups. The tab for personal damages and health costs could double its liability, according to the plaintiff‚s legal team, which has been litigating against the company since 2003.

Now, Senators Barack Obama (D-Ill) and Patrick Leahy (D-Vt) have stepped up the pressure on Chevron, sending a letter to U.S. Trade Representative Rob Portman urging him to ignore company‚s campaign to improperly exclude Ecuador from trade negotiations until the Ecuadorian government shuts down the lawsuit.

The senators write: „We are writing to seek your assurances that the U.S. Trade Representative will not allow negotiations over the Andean Free Trade Agreement to interfere with a case involving Chevron that is under consideration by the Ecuadorian judiciary, particularly one involving environmental, health and human rights issues that have regional importance. While we are not prejudging the outcome of the case, we do believe the 30,000 indigenous residents of Ecuador deserve their day in court.‰

Since the trial began in 2003, the forensic evidence of widespread toxic contamination has steadily mounted; all 22 sites inspected by the court so far have been found to be contaminated, and one site had levels of Total Petroleum Hydrocarbons at 900,000 parts per million, or 9,000 times higher than allowed in most U.S. states.

This staggering potential liability is real. In recent weeks, Chevron has been pulling out all the stops in an attempt to derail the lawsuit, lobbying the U.S. Congress in a shadowy but intense campaign, distributing misleading and inaccurate press releases about the Ecuador trial, and refusing to disclose details of its potential multi-billion loss to shareholders. But Chevron has run into major roadblocks in the beltway.

Texaco, which was bought by Chevron in 2001, operated a concession in Ecuador‚s rainforest from 1964 to 1992. During that time, it dumped more than 18 billion gallons of toxic waste water into the pristine Amazon rainforest and reaped profits of close to $30 billion. Local residents call the contamination the „Rainforest Chernobyl‰ and two of the indigenous tribes say they are nearing extinction.

Chevron‚s lobbying of Congress to undermine the legal case has sparked outrage in Ecuador because Chevron argued for years before a U.S. federal court that the case should be tried in Ecuador, and stipulated it would recognize the jurisdiction of the Ecuador court and abide by any judgment.

„This campaign is morally reprehensible and violates a promise Chevron made to the U.S. court,‰ said Luis Yanza, a representative of the affected communities. „Our people are dying, and they are spending millions to deny us the chance to be heard in court.‰

Steven Donziger, an American attorney on the plaintiffs‚ legal team, added: „Chevron‚s lobbying is a blatant attempt to hijack U.S. foreign policy to serve its petty interests. This trade agreement should be about national interests, not Chevron‚s interests.‰

Other recent roadblocks hit by Chevron in the U.S. include:

• A formal complaint filed by Amazon Watch to the Securities and Exchange Commission, accusing Chevron of committing fraud by hiding its multi-billion dollar liability from shareholders. The company has never mentioned the potential liability in its public filings, even though the judgment could be the largest in history against an oil company. (The SEC complaint is available at http://www.chevrontoxico.com/article.php?id=287.)

• A letter to members of the House Ways and Means Committee by the plaintiff‚s group, the Amazon Defense Coalition, accusing Chevron of „inappropriate‰ lobbying to undermine the rule of law in Ecuador. (This letter can be found at http://www.chevrontoxico.com/article.php?id=259.)

• The filing of three separate resolutions by Chevron‚s shareholders addressing the company‚s environmental and human rights policies, one specifically asking Chevron to report liabilities related to its Ecuador problem so the potential liability does not increase further. In the past, several large institutional shareholders, including public pension funds in New York and California, have supported similar resolutions. The resolutions will be voted on at the annual shareholders meeting, to be held in April.

Studies have found markedly higher rates of cancer in the region in Ecuador where the contamination exists, including rates of leukemia in young children three times higher than in the rest of the country. In addition, rates of birth defects and miscarriages are significantly higher than in other parts of Ecuador.

The pressure against Chevron comes as the company enjoys record profits, raking in $27.5 billion in 2005. This was the highest profit in Chevron's 126-year history, and it comes at a time when Americans are paying record prices at the gas pump.

Fish Farm Project in San Francisco

Former Vice President Al Gore, in his writings on global warming, notes that the Chinese character used to write “Crisis” is comprised of components meaning both “Challenge” and “Opportunity.” There is general consensus in the scientific community that reduction of acreage in the South American rainforest represents a major loss to the planet’s ability to process carbon, a leading greenhouse gas responsible for global warming. This represents both a challenge and an opportunity.

The Challenge

Although many organizations are committed to preserving remaining tracts of virgin rainforest, little is being done to address the financial incentive for the “slash-and-burn” agriculture that ranks alongside the lumber, agribusiness and petrochemical industries as a main culprit of deforestation.

Ever since the first humans struck into the rainforest thousands of years ago, the indigenous communities throughout the Amazon basin have mastered the skills of hunting, gathering, gardening and horticulture, as well as aquaculture in this richly biodiverse region. However, as the industrialized world has encroached upon the rainforest, spoiling it by both habitat loss/damage and pollution, the indigenous peoples have had their lifestyle permanently disrupted. Deforestation has drastically reduced the amount of game available for hunting, and over-fishing has severely depleted the more densely populated stretches of rivers such as the Amazon and the Ucayali.

Industrial centers such as Iquitos and Pucallpa (Peru) and Menaus (Brazil) now teem with industry: mining, petrochemical exploration, logging, construction, manufacturing, retail and wholesale distribution, entertainment, hospitality, etc. Populations of mostly “Mestizo” but also indigenous people inhabit these noisy, polluted cities, and most regional economic life is based upon what goes on in these urban centers.

The Opportunity

Fish-farming (aquaculture) has been shown to be an ideal way for indigenous rainforest communities to determine their own futures. Native species, such as Gamitana and Boquichico, are fast-growing, commonly eaten fish that are largely vegetarian in diet and command good prices in local and, in some cases, international markets.

Fish-farming is an ideal economic activity for the following reasons:

· No deforestation (rainforest land has many ponds and lagoons ideal for fish-farming; therefore eliminating the need to cut down large amounts of trees)

· No environmental threat (any fish that escape due to flooding or pond breaches are native to the area and “belong there” anyway)

· Familiarity with fish species (Indigenous people have fished these species for years)

· Minimal materials needed for daily operation (traditional dugout canoes and nets)

· Low-cost fish food (much of the fish food used can be grown or gathered locally)

The Proposition

Create a successful fish-farm operation in an influential Peruvian indigenous community - San Francisco de Yarinacocha. Allow the technology and economic model to spread throughout the region, thus empowering these communities to participate in the economy without the need to disrupt the forest in which they live just to “make a buck.”

The Fish Farm: Progress to Date

In early 2007, Al Polito (Activist/Musician/Writer of Portland, OR), Paola Pomposini (a translation specialist based in Lima, Peru) and Maria Esther Palacios Burbano (Aquaculture Specialist with University of San Marcos, Lima, Peru) met in Lima and San Francisco Yarinacocha with renowned community leader Mateo Arevalo to begin the groundwork for the project.



More than 40 villagers expressed interest in participating in the project.

For two days following the town meeting, Burbano and Polito accompanied a group of Shipibo men in exploring the forests surrounding the village to find a suitable site to begin the first phase of the project. On the second day, the group settled on a small spring-fed lake within a mile of the village (pictured below).


Soon thereafter, Polito accompanied Mateo Arevalo, former village chief, shaman and university-trained botanist to tour the Aquaculture Research Center of University of San Marcos’ IVITA (Instituto Veterinario de Investigaciones Tropicales y de Altura), located one hour outside of Pucallpa. IVITA’s Dr. Guadalupe Contreras explained to Arevalo the steps necessary to complete an effective fish farm.

Burbano has succeeded in assembling a coalition involving IVITA (providing support and facilities), San Marcos University (providing leadership and guidance), with researchers from other organizations who have also expressed interest: including Amazonia Aquaculture Service and Piscicultura Panama of Brazil (two private enterprises) UNAM: Mexico, and National Cheju University of Korea. The additional researchers will help ensure the quality of the research.

What they need:

Currently, this group needs around $10,000 in order to undertake this collaborative fish farm venture.

If you would like to support this effort toward sustainable livelihoods in the Amazon, you can donate through Village Earth by

1- Through Pay Pal to the right side of this blog. Please indicate you would like your contribution to go towards the San Francisco Fish Farm Project

2- By calling 970-491-5754 and donate with your credit card

3- Our by sending a check or money order to:
Village Earth
P.O. Box 797
Fort Collins, CO 80522

All donations for this project are 100% tax-deductible as Village Earth is a 501 c 3 non-profit organization.