Chevron slapped with highest eco-fine ever

Pub date April 2, 2008
SectionPolitics Blog

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Chevron may have to pay as much as $16 billion in damages for polluting parts of Ecuador, according to a report released today as part of a 15-year lawsuit against the San Ramon-based petroleum company. The report estimated $7 billion as the lower pricetag, for clean-up, soil remediation, and compensation to locals for health care costs and ecosystem loss.

For years, residents of Lago Agrio, Ecuador have contended that oil extraction and refining activities by Texaco (now owned by Chevron) were poisoning groundwater, food supplies, and people. Pablo Fajardo, a native of the small village, put himself through law school to take the role as lead litigator on the case. Last year, he and other Lago Agrians visited San Francisco to appeal to Chevron’s board members to do the right think, clean up their act, and make reparations.

Justicia Now, a film about Fajardo and the environmental crisis, produced by Oakland-based MoFilms, will be screening at the Roxie on April 17.

According to the press release, “by contrast, the total damages Exxon has paid in the Valdez disaster, the largest oil spill in U.S. history, is roughly $3 billion (an additional $2.5 billion is still under litigation). The plaintiffs in Ecuador have long asserted that the Chevron-created disaster in Ecuador, in terms of the amount of crude dumped, is 30 times larger than the Valdez spill.”

Yikes. And just yesterday Chevron officials were making excuses for their record profits at a Congressional hearing. Oh, times are tough.