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39. TexPet's total profits over the life of the consortium were a small fraction of
those realized by Ecuador-less than US$500 million.
40. Since Petroecuador took over operational control in 1990, it has drilled 414 new
wells-almost 30% more than were drilled during TexPet's 25 years as the operator-and,
according to Ecuadorian public media sources, was responsible for more than 1,400 disclosed
spills from 2000 to 2008 alone. Petroecuador's environmental record has prompted Ecuador's
current President, Rafael Correa to comment that Petroecuador "has dreadful environmental
management practices."
41. Defendant Fajardo-before he realized that such candor might undercut the
conspiracy's attempts to extort Chevron-also spoke out against Petroecuador's environmental
record:
[Petroecuador is] unreliable because what Petro[ecuador] says is one thing and
what it does is the complete opposite. Since Texaco left here, Petro[ ecuador] has
inflicted more damage and many more disasters than Texaco itself. But they'd
never, ever say that. So there's one spill after another; there's broken pipes,
there's contamination of wetlands, of rivers, of streams in great magnitude. But
since it's a state-owned company, since it's the same people involved in the laws
and all, no one says a thing.
42. When Petroecuador took over as operator of the consortium in 1990, TexPet
consented to Ecuador's request that it collaborate with Petroecuador to conduct an environmental
audit of the consortium's oil fields. TexPet insisted, however, that Petroecuador, as majority
owner of the consortium, share responsibility for any necessary remediation that the audit
identified in the same manner as the parties had shared all operating costs. Ecuador
acknowledged that TexPet was responsible for only its 37.5% share ofthe costs of remediating
the environmental impact ofthe consortium's operations, and the parties recognized that TexPet
could not be held responsible for the environmental impact of oil field operations conducted after
its concession rights expired in 1992.
43. In 1994, Ecuador publicly rejected the preliminary findings of the independent,
joint audit and threatened to bring suit against TexPet for injuries to Ecuador's environment.
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