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Panel protects Chevron in Ecuador case
by Staff Writers
Washington (AFP) Feb 17, 2012


An arbitration panel in The Hague backed Chevron's bid for temporary protection from a $9.5 billion Ecuador court judgment against the oil giant, documents showed Friday.

The panel's order Thursday buys Chevron time to fight the judgment set against it one year ago for environmental damage in the Ecuadoran jungle allegedly caused by Texaco, which Chevron acquired in 2001.

The panel ordered the Ecuadoran government to "take all measures necessary to suspend or cause to be suspended the enforcement and recognition within and without Ecuador" of the February 14, 2011, judgment.

The decision will allow Chevron to pursue its case against the "Lago Agrio" judgment in the tribunal set up under the US-Ecuador Bilateral Investment Treaty (BIT).

Chevron argues that Ecuador violated the treaty by taking the case to its domestic court.

"Both Chevron and the Republic of Ecuador benefit from today's award, which upholds the rule of law and prevents enforcement of the fraudulent Lago Agrio judgment," the company said in a statement.

"We will continue to seek opportunities for constructive discussion with the Republic of Ecuador to resolve this pending BIT arbitration."

Washington-based group Public Citizen, which campaigns to limit the power of corporations, said the tribunal's decision effectively "ordered the Ecuadoran government to interfere in the operations of Ecuador's independent court system on behalf of the oil giant."

After having lost the case, the group said, "Chevron turned to an ad hoc 'investor-state' tribunal of three private lawyers as the last chance to help the company avoid paying to clean up contamination in the Amazonian rainforest."

The group did not acknowledge however that Quito took part in the tribunal and had nominated one of its members.

The lawsuit on behalf of Ecuadoran Amazon communities in the Lago Agrio region dates back to the first complaint filed in New York in 1993.

It sought $27 billion for water and soil damage, as well as for illnesses suffered by local resident which they say resulted from Texaco's alleged dumping of billions of gallons of toxic waste into the Amazon between 1964 and 1990.

But the case has been tainted by claims and counterclaims of misconduct and corruption on both sides.

In 2009, Chevron posted videos online purporting to show a bribery scheme implicating the judge presiding over the lawsuit. The judge recused himself days after the videos were released.

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Mitsui to pay record fine for Gulf oil spill
Washington (AFP) Feb 17, 2012 - Japanese conglomerate Mitsui will pay $90 million for its role in the Deepwater Horizon disaster, the worst oil spill in US history, authorities said Friday.

Mitsui will pay $70 million in civil fines, the largest penalty to date under the Clean Water Act, to resolve alleged violations of the law, the Justice Department said in a statement.

It has also agreed to spend $20 million for Gulf conservation projects, including land purchases in several states on the Gulf coast.

The settlement will be paid by a subsidiary of Mitsui, MOEX Offshore, which teamed up in 2007 with British giant BP in a Gulf of Mexico exploration project that produced the massive oil spill.

MOEX had a 10 percent stake in the Macondo Well, which blew out on April 20, 2010, spewing millions of barrels of oil into the Gulf. It no longer owns any share of the lease, the statement said.

An explosion on the BP-leased Deepwater Horizon drilling rig killed 11 workers, blackened beaches in five US states and devastated the Gulf Coast's tourism and fishing industries.

"This landmark settlement is an important step -- but only a first step -- toward achieving accountability and protecting the future of the Gulf ecosystem by funding critical habitat preservation projects," US Attorney General Eric Holder said in the statement.

The officials said the settlement did not affect the government's claims against any other defendant in the Deepwater Horizon lawsuit that was filed on December 15, 2010.

Tens of billions of dollars will be at stake in the trial of the first phase of the case, set to begin on February 27 in federal district court in New Orleans, Louisiana.

The federal judge is due to determine whether the deadly missteps constitute gross negligence, how much of the blame rests with each party and whether punitive damages should be imposed.

BP has said it is working to reach a settlement with the US government over a host of civil fines and possible criminal charges.

The British oil giant already has paid more than $6 billion to over 220,000 claimants who chose to settle with a special fund set up to provide emergency payments and a faster route to reimbursement.

The massive cleanup and containment effort has cost BP $13.6 billion.



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