John Watson made $14 million in 2010!

I blogged about the raise Chevron’s CEO John Watson recently received that increased his salary to $1.6 million, but I was not aware of the perks that come from being the CEO of one of the least reputable U.S. Corporations. I didn’t mention performance-based bonuses, stock options, contributions to an employee savings plan and small things like the use of company airplane.

According to an Associated Press analysis John Watson made $14 million in 2010 alone!

Isn’t life great when you are Chevron’s top executive? It’s a shame though that while chasing those millions Chevron trampled over so many innocent people’s lives and now does not have the decency to clean up its mess in Ecuador. Shameful.

Chevron giving away millions to its executives…

Instead of spending at least a small portion of the huge profits on the cleanup of the toxic mess in Ecuador and bringing relief to those suffering from Chevron’s contamination, Chevron’s board of directors decided to give that money to its top officials.  Chevron’s CEO John Watson has just received a raise and is now making $1.6 million a year!!!

Apparently to make millions you need to be unscrupulous, manipulative and make sure your company ranks high among the least reputable American corporations. Never mind billions of gallons of toxins deliberately dumped in the Ecuadorian Amazon; never mind thousands of people suffering from the contamination; never mind all the lies and manipulation!

Chevron Found Guilty of Contaminating Ecuadorian Rain Forest

On Monday an Ecuadorian judge ordered Chevron to pay $8.9 billion to clean up 16 billion gallons of toxic waste that Chevron dumped into the rain forest in Ecuador.

For many years Chevron has been pointing fingers at others and trying to manipulate its way out of the responsibility for the toxic mess but it all came to nothing when faced with overwhelming evidence that plaintiffs submitted to the court showing Chevron not only contaminated the rain forest but it did it knowingly.

Chevron built a substandard system and continued to use it knowing it’s leaking toxins into the ground. In a 1980 letter a Texaco official said that building a safer system would be too expensive and recommended using the faulty one. Chevron took that advice and continued putting toxic byproduct of oil drilling into 900 unlined and unprotected pits for many years.

The judgment is great news for the Ecuadorians suffering from the contamination and anyone who cares about the environment. It is time for a proper clean up of those toxic oil pits, not just throwing dirt on top of them like Chevron did.

Chevron Tries To Silence The Critics Again

Chevron has filed a racketeering lawsuit against the named Ecuadorians who are suing Chevron for the contamination in the Amazon . This is not only another desperate attempt to run away from what could be a costly judgment for them in Ecuador, but also an example of Chevron’s bullying of anyone who dares to speak up against them. Just how low will Chevron go? It files criminal charges against the very people suffering from the company’s shoddy drilling practices that led to the destruction of their land and culture and, in thousands of cases, the death and illness of people living near Chevron’s former oil sites. This is unbelievable.

Chevron’s lawsuit was filed under the Racketeering Influenced and Corrupt Organizations act which was designed to prosecute the Mafia. I read about it in this San Francisco Chronicle article. It quotes Sean Hecht, executive director of the Environmental Law Center at UCLA. saying that Chevron’s suit looks more like a form of SLAPP, a strategic lawsuit that seeks to essentially silence people from protesting.

"I can't judge this as a SLAPP suit, but it looks like it has some of the hallmarks," Hecht said . "It's trying to convince someone to throw in the towel."

As the evidence against Chevron mounts up, Chevron is now trying to force the Ecuadorians to back away. I’m betting they are going nowhere. Also, remember that Chevron had five protestors arrested last year at its shareholder meeting and prevented 20 people, many from foreign countries, including Ecuador, from attending the meeting, even though they had legitimate proxies.

Three Chevron Lawyers Sanctioned For Obstructing Ecuador Environmental Trial

Facing $113 Billion in Potential Damages, Chevron Lawyers Seek Any Opportunity to Delay

Amazon Defense Coalition
29 October 2010 – FOR IMMEDIATE RELEASE
Contact: Karen Hinton at 703-798-3109 or Karen@hintoncommunications.com

Lago Agrio, Ecuador (October 29, 2010) -- A trial court has sanctioned and fined three Chevron lawyers for obstructing the trial where Chevron faces a multi-billion dollar judgment for the deliberate dumping of 18 billion gallons of toxic waste, according to court papers made available today.

Alberto Racines and Diego Larrea, both of whom have worked on Chevron’s legal team in Ecuador since the trial against Chevron began in 2003, were fined by Judge Nicolas Zambrano this week for repeatedly filing the same motions in an effort to delay the seven-year Ecuador trial.

The judge ruled that the lawyers had used Chevron’s motions “to obstruct the trial.” In 2009, a third Chevron lawyer – Patricio Campuzano – was sanctioned for the same reason.
On August 5 – one day after the court ordered both parties to submit their own damages assessments -- Chevron filed 19 motions to nullify the order or the trial itself in a 30-minute period. Racines and Larrea then cited the failure of the trial judge to quickly rule on each of the motions as a basis to recuse him.

“The evidence clearly shows Chevron used illegal practices that resulted in the massive destruction of the rainforest in Ecuador and the decimation of indigenous groups and other local residents,” said Pablo Fajardo, who represents dozens of indigenous and farmer communities suing the oil giant for dumping more than 18 billion gallons of toxic waste into the Amazon rainforest.

“To help Chevron evade its obligations, Chevron’s lawyers are trying to sabotage the Ecuadorian legal system in addition to violating their professional obligations,” he added. (MORE)

The True Cost of Chevron

The oil waste Chevron left behind in the Ecuadorian rain forest is making people sick. According to American expert Dr. Daniel Rourke 10,000 people are at risk of getting cancer. The longer Chevron refuses to clean up, the bigger this environmental crisis gets.

Read more about Dr. Rourke’s findings here

Her leg amputated because of a cancerous tumor, Modesta Briones sits in her house near Parahuaco oil well #2 in the Ecuadoran Amazon.

Terrifying Truth

Last month Chevron’s lawyer Andrea Neuman deposed an environmental expert William Power. The lawyer for the Amazonian communities suing Chevron took the opportunity and cross-examined Mr. Powers. His testimony revealed some horrifying truths about Chevron’s contamination in the Ecuadorian rain forest. Below you can read a few quotes, visit Chevron in Ecuador for more details and to read how Mr. Power’s testimony sent Chevron’s lawyers into total panic.

Q: Now, when Chevron-Texaco designed its pits in the Ecuadorian Amazon, what design did it use? 


Powers: Dug a hole in the dirt and deposited the drilling muds in the unlined hole.

Q: And if Chevron-Texaco was designing those pits in the United States, would it have been able to dig a pit in the – and put in the drilling muds as you described?

Powers: No.

Q: What's the consequence of Chevron's design of its pits in the Lago Agrio concession?

Powers: Two consequences: the leeching of the chemicals into the ground, and ultimately into the ground water; and the overflow of the pits due to lack of maintenance and rain water and overflowing directly into the drainage channels surrounding that pit.

Q: And what's the basis for your conclusions concerning the Chevron-Texaco's pits?

Powers: Having viewed the pits and reviewed the nature of how those pits were designed, utilized, and the fact that – it is uncontested that the pits were left with drilling mud in them.

Q: And when Chevron developed the oil field in Ecuador, did it do so in conformity with standards for treatment of production water that were in place in the United States at the time that it was building its infrastructure in Ecuador?

Powers: No.

Q: Can you describe the ways in which Chevron's Ecuadorian concession fell below standards it would have been required to meet if that field were in the United States?

Powers: Based on the salinity and the produced water from the field, the company would have been required to reinject that water into a subsurface formation. Could not have operated that oil field or produced a single barrel of oil without having that produced water injection system operational.

Q: By failing to reinject production water in the Lago Agrio concession, what impact did that have on the environment in Lago Agrio?

Powers: It contaminated the surface water at the points where it was injected, not only with the high salinity of the produced water in an environment that has almost no natural salinity, but the trace contaminants of heavy metals and oil also contributed to the generalized contamination of that surface water.

Q: If you include the produced water in your comparison between the discharge into the environment from Chevron's Lago Agrio concession, when you compare that to the Exxon-Valdez oil discharge from that catastrophe, how would you compare them?

Powers: Both the produced water and the crude oil are toxic. The – you can argue about the relative toxicity of them both. But the amount of toxic liquids that should not have been in the environment in Ecuador was at least 30 times the quantity or the volume of crude that was spilled in the Exxon-Valdez disaster.

Chevron Misleads U.S. Courts with Inaccurate Translation

I just read that Chevron’s lawyers submitted inaccurate translation of Pablo Fajardo’s comments to U.S. Federal court as evidence. By inaccurate I mean changed to fit Chevron’s lies and completely different from what was actually said. Ohhh… the audacity! How can unethical behavior like this go unpunished? How far will Chevron be allowed to go before somebody says enough?!

See Amazon Defense Coalition’s press release below.

Chevron Misleads U.S. Courts with Inaccurate Translation in Multi-Billion Dollar Ecuador Contamination Lawsuit
Gibson Dunn’s Aggressive Legal Strategy Backfires In Federal Court
Amazon Defense Coalition
1 October September 2010 – FOR IMMEDIATE RELEASE
Contact: Karen Hinton at 703-798-3109 or Karen@hintoncommunications.com

New York, New York – Chevron has been submitting an inaccurate and misleading translation to U.S. federal courts as part of its effort to evade liability in the multi-billion dollar Ecuador environmental lawsuit, according to court papers filed recently.

Chevron’s lawyers at Gibson Dunn & Crutcher, who recently took over the Ecuador litigation for the company, submitted a highly misleading and inaccurate translation of lead Ecuadorian attorney Pablo Fajardo describing the role of court-appointed expert Richard Cabrera. Attacking Cabrera, who in 2008 submitted a damages assessment against Chevron of $27 billion, has been the centerpiece of the oil giant’s strategy to discredit the Ecuadorian judicial system to defeat enforcement of an expected adverse judgment.

Gibson Dunn brags on its website that its litigators in the Ecuador case have been described by American Lawyer magazine as the “Game Changers”; the firm notes that “clients in deep trouble turn to Gibson Dunn for fresh, aggressive thinking and innovative rescues.”

In a brief filed on Sept. 28 by representatives of the Amazonian communities in federal courts in New York and elsewhere, the plaintiffs blast Chevron for its erroneous translation of comments made by Fajardo. According to Chevron’s translation of a 2007 meeting, Fajardo told a group of scientists in Quito that Cabrera would simply “sign the report and review it.”

According to an accurate translation of the exchange, Fajardo actually said that what Cabrera “will do is give his criteria… right… his opinion, and sign the report, and review as well.”

Chevron also excluded from its court submission the contemporaneous translation of Fajardo during the meeting, which verifies that Chevron’s translation was manipulated.

"What Fajardo actually said in the meeting is radically different from what Chevron claimed he said via its bogus translation," said Karen Hinton, a spokeswoman for the communities. "Once again, Chevron is misrepresenting facts to courts around the country in support of its contrived 'fraud' narrative."

"When the facts don't fit the contrived narrative, Chevron's lawyers seem content to just make them up," she added.

Chevron has claimed to U.S. courts that ex parte contacts with experts in Ecuador is illegal, when in fact the practice was commonly used by both parties and sanctioned by the court, said Hinton. Lawyers on both sides of the dispute were invited by the court to provide materials to Cabrera and other experts; Cabrera and these other experts adopted some of the materials provided by the parties.

The plaintiffs also have submitted evidence that Chevron's lawyers, on a regular basis, met ex parte with judges overseeing the trial.

This is not the first time that Chevron has manipulated the meaning of translations for legal or public relations purposes.

In 2009, Chevron accused the Ecuadorian judge then presiding over the case of saying an appeal by Chevron of an adverse decision would only be a "formality" when what he actually said was the parties would have to observe the "formalities" of the appeals process. Chevron then used the misleading translation to claim to the media that the judge had "fixed" the trial.

So far this year Chevron has sought to depose 23 persons in the U.S. associated with the Ecuador case, including two lawyers who have represented the plaintiffs.

Chevron’s strategy of using U.S. discovery rules to harass the Amazonian communities in Ecuador – termed “abusive litigation” by the plaintiffs -- has not gone unnoticed. One U.S. federal magistrate judge recently ruled that Chevron’s discovery strategy is “spiraling out of control” and is an attempt to circumvent the rules of Ecuador’s courts, where Chevron had the trial moved after it was originally filed in U.S. federal court in 1993.

The Numbers Are In

If there is anyone out there not realizing how extensive the devastation in the Ecuadorian rain forest is, they need to read Chevron Pit’s latest post. New damage assessments have been submitted to the Ecuador trial court and the numbers are mind blowing!
Below are some of the horrific findings. For more detailed look, visit The Chevron Pit

A mother holds her ten-month old daughter

with a skin rash caused by bathing in

oil-polluted water in Rumipamba in 1993.

• Soil Remediation: A conservative estimate of potential costs to remediate contaminated soils at all of Chevron’s 378 former oil production facilities in Ecuador ranges from $487 million to $949 million depending on the clean-up standard used. The actual cost could be significantly higher.

• Groundwater Remediation: Based on data in the trial record, the range for clean-up of groundwater is $396 million to $911 million.

• Rivers and wetlands: Data indicates that sediment contamination exists, but no clean-up number was presented pending further investigation.

• Health Care: Using recent data from the World Health Organization and the Ecuadorian Ministry of Health, an estimated $1.4 billion will be needed to provide health care to the thousands of affected persons over the next three decades.

• Drinking Water: Degradation of the environment with petroleum hydrocarbons associated with Chevron’s production activities has been documented at numerous locations. The cost of a comprehensive series of regional water systems is estimated to be between approximately $326 million to $541 million.

• Excess Cancer Deaths: Actuarial life-table methodology demonstrates that the aggregate cost of excess cancer deaths due to exposure to oil contamination in the area where Chevron operated could be approximately $69.7 billion. This is the based on the value of a statistical life used by averaging relevant data used in the U.S. court system and by the U.S. Environmental Protection Agency ($7 million for each lost life), and comparing it with official Ecuador mortality data and census information. Up to 9,950 people in the affected area will face a significant risk of dying from cancer in the coming decades even if the area is remediated in the next ten years. Even if the analysis stops in 1990 – the year when Chevron ceased being the operator of the oil fields – the aggregate cost of excess cancer deaths is still estimated at $12.1 billion based on 1,732 deaths from cancer. (The earlier Cabrera report estimated 1,401 deaths from cancer, but he did not project future deaths.)

• Natural Resources Losses: This estimate is based on the evidence that concentrations of petroleum hydrocarbons and harmful metals in soil, groundwater, and surface water have exceeded levels considered to be toxic to terrestrial and aquatic biota. While determining the exact values of service losses in the rainforest with precision is not possible, it is not clear that further studies would produce a range of plausible values different from the range posited earlier by Mr. Cabrera – approximately $874 million to $1.7 billion, depending on the methodology employed.

• Unjust Enrichment: Chevron’s unjust enrichment ranges from $4.57 billion to $9.46 billionassuming a 100% probability of detection and ultimate payment, and from $18.26 billion to $37.86 billion assuming a 25% probability of detection and ultimate payment. Given the evidence of Chevron’s malfeasance in Ecuador, the plaintiffs assume the company had at best a 25% probability of detection and ultimate payment, and therefore the unjust enrichment award should at minimum range from $18.26 billion to $37.86 billion. This is a conservative figure, as in reality it is highly unlikely that Chevron believed it had more than a 10% probability of detection and ultimate payment.

• Cultural Impacts on Indigenous Groups: Representatives of the Amazonian communities, noting the acute interdependence between indigenous groups and the rainforest ecosystem, analyzed the impact of hydrocarbon contamination on indigenous culture. The team reviewed economic valuations to repair the loss of cultural and ancestral practices, including a program to purchase unspoiled land, and to construct pools of native fishes and centers to restore flora and fauna. The cost for this restoration is estimated at $481.5 million.

The Power of Manipulation

Even though evidence is mounting against Chevron and it has been scientifically proven that Chevron is guilty of the contamination in Ecuador, Chevron still manages to trick some people into believing Chevron's false arguments. This time it's a reporter Roger Parloff. His story ran on Fortune.

But, I recently ran across an excellent response to his story. The post on Chevron In Ecuador.com says it all.

The List Gets Longer and Longer

The long list of issues that show Chevron's shameless and very often
illegal attempts to hide its crimes in Ecuador and escape the
responsibility keeps on growing. Looks like the real picture of
Chevron is slowly coming out for all of us to see. The Chevron
Pit has posted a short summary of Chevron's
manipulative actions that have backfired and gave us a little preview
of the lengths Chevron will go to hide the truth. Here are some of
them:

· Diego Borja, a Chevron contractor in Ecuador, ran a “dirty tricks”
operation for the oil giant in Ecuador that attempted to ensnare the
trial judge in a corruption scandal, according to taped phone
conversations.

· Borja claimed that Chevron had “cooked” court evidence and that he
would turn against Chevron if company officials did not pay him what
they promised for videotapes he made of the judge in the lawsuit.
Widely covered by the news media, the videotapes were later
discredited.

· Chevron hired Kroll, the publicly traded investigations firm, to try
to pay an American journalist to become an undercover spy for the
company in Ecuador, according to a recent article in The Atlantic.

· Chevron’s lawyers had ex parte meetings with judges and have not
denied having ex-parte meetings with court-appointed experts on the
case – the exact same basis for Chevron’s false claims of “fraud”
against lawyers for the plaintiffs.

· The plaintiffs also produced evidence that a court-appointed expert
adopted many materials wholesale that were prepared by Chevron’s own
expert without citation – the exact same charge that Chevron has
leveled against the plaintiffs.

· Two Chevron officials are under criminal indictment in Ecuador for,
according to the charges, conspiring to defraud the government by
lying about the results of a sham remediation in the mid-1990s.
Chevron’s own tests submitted into evidence show illegal levels of
contamination at the so-called “remediated” sites.

· Due to a series of death threats from unknown sources, lawyers for
the plaintiffs and their families are now protected with armed
bodyguards.

Proof of Guilt

Two audits have been submitted to a U.S. Federal Court that show that Chevron is guilty of knowingly contaminating Ecuadorian rain forest and then lying about it. Those audits were conducted at Texaco’s request. (Chevron bought Texaco in 2001.) Looks like Chevron is getting lost in its own web of lies!

Read more here: Court Filing: Chevron’s Own Audits Prove Company Lied About Massive Pollution in Ecuador

Real Life Secret Agent Spy Story

One day there will be a movie made about the lengths Chevron has been going to in a desperate effort to avoid responsibility for the disaster in Ecuador. Hiring journalists to spy for Chevron and then write false stories is just one of Chevron’s many unethical and quite often illegal attempts to manipulate the facts. I’ve said that many times, Chevron clearly thinks it’s above law and goes ahead with any crazy idea, no matter the consequences, to get out of its own oily mess. What surprises me is that there are people who can be bought and will willingly get involved in Chevron’s dirty defense tactics. Sam Anson of Kroll is the latest accomplice. To find out more about this man, read Chevron Pit’s latest post

Chevron Says One Thing and Does Another

The Chevron Pit writes about yet another violation and a
shameless move by Chevron. Chevron’s lawyers fought hard to get the
footage from Joe Berlinger’s documentary “Crude” saying it was
necessary for Chevron’s defense and promising it will never be used
for anything else. For anyone who has followed Chevron’s dirty defense
campaign it shouldn’t be surprising to hear that the moment Chevron
got the film outtakes, it passed it along to bloggers.

Disaster in the Amazon

On June 4th New York Times ran an interesting article about Chevron and Ecuador. You can read it here: Bob Herbert of NYT: Chevron Has Its Own Disaster In Ecuador

CAN YOU STOP US?

I guess Chevron's CEO John Watson wanted to show everyone how much he cares about the environment when he asked the government for stronger safety standards that would prevent disasters like the one happening in the Gulf of Mexico now from happening again. Doesn't it sound though like he is saying that unless the government stops the oil companies, they will do whatever they want? While trying to save money they will put our world at risk and if anything disastrous happens, they will just find ways to escape the responsibility.

Chevron's Watson to Feds: Stop Us Before We Hurt Somebody

DON'T MENTION ECUADOR

Chevron's shareholders should be aware! The company will silence anyone who dares to speak about company's unacceptable behavior and environmental crimes that have been committed around the world. Some shareholders were denied entry to the Chevron's shareholders meeting on May 26th, others were arrested. People expressed concern and Chevron did not want to hear any of it. The only thing Chevron's CEO John Watson had to say was that Ecuadorians can count on his empathy. I guess Chevron still has no plans of taking responsibility for its actions.

Read more here: Chevron Condemned for Human Rights Abuses, Ecuador Disaster at Annual Shareholder Meeting Today

The Truth Always Comes Out

Chevron has been misleading the news media and the US courts about the so-called remediation agreement signed in 1995 by Texaco and the government of Ecuador.

Chevron wants us to believe the agreement releases it from all liability in the lawsuit, but the truth is, it doesn’t. The agreement only applies to government claims, and Chevron’s own attorney said so. Perez Pallares admitted under oath that the release is not valid in this case. Making Chevron look even worse is the fact that Perez Pallares is the lawyer who negotiated and signed the release for Chevron.

The Chevron Pit writes in more detail about Chevron's inability to keep its story straight.

Chevron's Outrageous Demands Criticized

People are speaking up against Chevron's unfair and selfish demands.

An article by Bill Moyers and Michael Winship criticizing Chevron's attempt to force Joe Berlinger to turn over unused footage from his documentary "Crude" appeared on the Huffington Post recently.
More details on The Chevron Pit



Bill Moyers

Double Standards

With the oil gushing its way into our reality, we are all in a panic mode. We are worried about our environment, health and the effect toxic oil might have on our lives. It already happened for the people in Ecuador and they have been fighting hard to get through the thick and high wall of lies and denial Chevron has built.

Now, when it’s our lives that are in danger, maybe everyone will understand better what Ecuadorians fighting Chevron have been going through all these years. We are all appalled to hear BP, Transocean and Halliburton deny and blame one another for the spill. Just like Chevron has been refusing to take responsibility and pointing fingers at others, starting with Petroecuador.

President Obama said BP is to be blamed for this disaster, expressed concern and promised BP will pay for the cleanup. Everyone applauded and was very happy to have their President stand for what is right. When the President of Ecuador, Rafael Correa visited oil sites Texaco left behind in the Amazonian jungle, Chevron called the whole Ecuadorian government corrupt and unjust. Is Chevron upset with President Obama for getting involved as well?

More here

Environmental disasters are horrible wherever they happen and there can’t be any double standards when it’s time for the ones who caused them to take care of the damage. This nonsense has to stop; Chevron needs to pay for the cleanup in Ecuador and so should BP for what’s happening in the Gulf Coast right now.