Ecuador´s Defense on the claimants abuse of process in International Investment Arbitration

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CHAPTER V - TRACK 2: DENIAL OF JUSTICE AND ENVIRONMENTAL DAMAGE

that is, at sites that were exclusively operated by Texpet.245 The results from these samples serve to show that the contamination caused by Texpet is still present, has migrated, and has had a negative impact on the environment. The decision of the court in the Lago Agrio case, which was upheld by the National Court of Ecuador, is correct in substance, as it relates to a determination of liability for contamination. The judges who presided sequentially over the Lago Agrio proceedings reviewed massive amounts of evidence, interviewed many residents of the Amazon Region, and directly observed the pollution that resulted from Texpet’s operations, which continues to affect area residents. LBG has confirmed that this contamination is present, and that such contamination could only be a result of the operations of Texpet. The investigations [of LBG] at five sites of wells have shown that, contrary to what Chevron claims, the subterranean

and superficial hydrological resources (including sediment) are not free from the impacts of chemical substances, and the impacts on the soil are not limited to localized areas within the area of the installations at the oil fields. In fact, the contamination extends to the adjacent properties. The contamination that resulted from the activities of exploration and production that Texpet engaged in can still be found in the Concession Area, and presents a possible risk of exposure for persons residing in neighboring areas, as well as for the local ecology. LBG has shown that the decision made by Chevron to abandon detailed investigations into the subterranean waters and surface waters was biased by its defective assumptions in respect of the nature and the extension of the contamination at these sites.246 (Emphasis added) In addition, in its report of November 2014,247 LBG reported the following objective findings:

245. Aguarico 02, Aguarico 06, Shushufindi 34 and Shushufindi 55. 246. Response report prepared by LBG § 2.2.2.2. 247. Unofficial translation. Report of November 2014

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