Bloomberg
The prescribed amount for damage as assessed by an expert appointed by the Ecuadorean court, it the largest event of its kind.
As to the facts, residents of the Amazon region of Ecuador said that Texaco, which was bought by Chevron in 2001, damaged large tracts of forest with inadequate drilling practices in the decades 1970 and 1980.
The indictment explains that the company also poured water contaminated area, creating a health hazard.
Instead of cleaning up petroleum waste pits, the applicants have left the company the land open or simply spread on the sites, allowing pollution to seep down and ruin the local water reserves.
President Rafael Correa, who has a troubled relationship with foreign investors, has said he hopes that the plaintiffs win.
However, Chevron denies the allegations, explaining that Texaco polluted the jungle and not adequately cleaned wells that those who were responsible.
If there is any contamination, the company says it is the responsibility of the Ecuadorian state, which in 1998 disavowed responsibility for Texaco, a legal element called into question by the plaintiffs.
Texaco found oil in Ecuador for the first time in 1967 and began mining in 1972 as part of a consortium with the state. The company operated in Ecuador until 1990. Shortly thereafter, he spent his part of the consortium to the Ecuadorian Government. The state oil company Petroecuador has continued to produce in the area during the past 20 years. In 1993 he filed a lawsuit against Texaco in U.S. federal court. The appeal of the case was dismissed in 2002 with the condition that Texaco agreed to be available to Ecuadorian jurisdiction if the defendant was there. The following year he filed suit in Lago Agrio, this time against the new owner, Chevron. Not yet defined date of decision.
What could happen
If the judge rules against Chevron, the first level of appeal available would be the provincial court of Sucumbios. If confirmed the decision, Chevron would go to the Supreme Court of Ecuador. Chevron complaints can lead to the Constitutional Court of Ecuador as part of the appeals process. The plaintiffs will likely seek to enforce a ruling in courts around the world where Chevron has assets to try to collect the compensation, which would increase the legal battle.
http://www.larepublica.com.co/archivos/GLOBO/2010-09-04/chevron-podria-pagar-us27000-millones_109635.php
