hRb7u

48. Pursuant to the terms of the MOU, on or about March 23, 1995, Ecuador,
Petroecuador, and TexPet executed a precise "Scope of Work" identifying the particular sites and
projects that would constitute TexPet's remediation obligations, consistent with TexPet's former
one-third ownership share of the consortium. The "Scope of Work" required the performance of
not only a vast remediation effort by TexPet, but also a number of socioeconomic projects,
including the payment of $1 million to a redress fund to "be used for the rehabilitation of the
areas affected, establishing, together with the population, viable systems for the use of renewable
natural resources, and ... to improve the quality of life." The Ministry of Energy and Mines
received that money, and was entrusted to administer the fund "for the benefit of the Indigenous
Communities of the Amazonian region." TexPet also financed the establishment of education
and medical centers in the Oriente, together with "logistical support" for those centers such as
ambulances and aircraft.
49. Following the execution of the Scope of Work, on or about May 4, 1995,
Ecuador, Petroecuador, and TexPet executed a settlement agreement (the" 1995 Settlement
Agreement"). In consideration for its release from any future responsibility for environmental
impacts, TexPet agreed to perform the defined "Environmental Remedial and Mitigation Work"
and provide "socio-economic compensation" for the affected areas. The 1995 Settlement
Agreement immediately "release[d], acquit[ted] and forever discharge[d]" TexPet from all
claims based on "Environmental Impact" from the consortium's activities at sites not included in
the Scope of Work and provided that TexPet would be released from any "Environmental
Impact" associated with the sites covered by the Scope of Work upon completion of the
prescribed remediation at each site. In other words, because Petroecuador continued to operate
the oil fields, it assumed any residual or future responsibility, recognizing both its share of the
past, as the former consortium's majority owner, and its control over the future, as sole owner
and operator going forward.
50. The settlement was purposefully broad. "Environmental Impact" was defined as
"[a]ny solid, liquid or gaseous substance present or released into the environment in such
24