Nelson Alvarado, 46, arrived in the Oriente in 1981 and began working for Texaco. Here, he stands next to one of three waste pits near Yuca 2B oil well in the town of Taracoa, Ecuador. Many cows and pigs have fallen into the unlined pits. Texaco covered up two of the pits with soil, and left the third pit open. amazonwatch.org

February 14, 2011 (Reuters) – A court in Ecuador’s Amazon jungle ordered Chevron Corp to pay more than $8 billion in damages on Monday in a closely watched environmental suit, the plaintiffs’ lawyer said. But the U.S. oil company vowed to appeal, meaning the long-running case dating from drilling in the South American nation during the 1970s and 1980s could last for years more. The case, which activists portray as a fight for justice against rich polluters but Chevron says is more to do with opportunism, has triggered related legal action in U.S. courts and international arbitration. It is being monitored by the oil industry for precedents that could lead to other large claims. Chevron had expected to lose the case in the Ecuadorean court. In a statement on Monday, Chevron did not give any figure from the ruling by the court in Lago Agrio, but said it believed the judgment was “illegitimate” and “unenforceable in any court that observes the rule of law.” It said the United States and international tribunals had already taken steps to bar enforcement of the ruling. Pablo Fajardo, a lawyer for the plaintiffs, said the court had ordered Chevron to pay more than $8 billion damages. The lawsuit had originally demanded $27 billion. Residents of Ecuador’s Amazon region have said faulty drilling practices by Texaco, which was bought by Chevron in 2001, caused damage to wide areas of jungle and harmed indigenous people in the 1970s and 1980s. … “If you look at the Exxon-Valdez case, that took 20 years to settle,” said Allen Good, oil analyst at Morningstar in Chicago. “I think there were expectations that the initial judgments would go against Chevron and I think the case is going to play out over a very long time.” …

Ecuador court orders Chevron to pay $8 billion

San Francisco, CA – Today a court in Lago Agrio, Ecuador has ruled in favor of the residents of Ecuador’s Amazon region who have spent the last 18 years seeking damages for crude oil pollution. Chevron inherited the suit when it bought Texaco in 2001, and has denied the allegations of environmental damage. Amazon Watch and Rainforest Action Network, who have spent years working to help the Ecuadorian people and protect the Amazon, release the following statement in response to today’s verdict: “As of today, Chevron’s guilt for extensive oil contamination in the Amazon rainforest is official. It is time Chevron takes responsibility for these environmental and public health damages, which they have fought for the past 18 years. “Today’s ruling in Ecuador against Chevron proves overwhelmingly that the oil giant is responsible for billions of gallons of highly toxic waste sludge deliberately dumped into local streams and rivers, which thousands depend on for drinking, bathing, and fishing. “Chevron has spent the last 18 years waging unprecedented public relations and lobbying campaigns to avoid cleaning up the environmental and public health catastrophe it left in the Amazon rainforest. Today’s guilty verdict sends a loud and clear message: It is time Chevron clean up its disastrous mess in Ecuador. “Today’s case is historic and unprecedented. It is the first time Indigenous people have sued a multinational corporation in the country where the crime was committed and won. “Today’s historic ruling against Chevron is a testament to the strength of the Ecuadorian people who have spent 18 years bringing Chevron to justice while suffering the effects of the company’s extensive oil contamination.”

Statement on Ecuador Court Ruling Against Chevron

Lago Agrio, Ecuador – Pablo Fajardo, the lead Ecuadorian attorneys representing the indigenous tribes suing Chevron for oil contamination, released this statement today about the judgment against Chevron, issued by the Provincial Court of Justice of Sucumbíos in Lago Agrio, Ecuador: “We believe today’s judgment affirms what the plaintiffs have contended for the past 18 years about Chevron’s intentional and unlawful contamination of Ecuador’s rainforest. Until we have had a chance to review the lengthy decision, we will not be able to comment in detail. “As a general matter, the plaintiffs provided the court with a great quantum of scientific and documentary evidence that Chevron deliberately and in violation of all industry norms discharged billions of gallons of toxic waste into the rainforest and into the water supply relied on by thousands of Ecuadorian citizens. “Rather than accept that 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.”

Statement by Ecuadorian Plaintiffs on Judgment Against Chevron