Ecuador:
OCCIDENTAL SIGNS UNCONSCIONABLE AND FRAUDULENT AGREEMENTS IN THE AMAZON
U.S. based transnational OCCIDENTAL is currently negotiating with Indigenous
communities in Ecuadorian Amazonia, offering little more than twentieth
century trinkets: chainsaws, medicine chests, and rain-coats, in exchange
for undefined access to indigenous territory for "petroleum activities".
OCCIDENTAL is one of the world's largest oil companies, currently operating
in over eleven different countries outside the U.S.A, and extracting over
200,000 barrels of crude per day. Indigenous communities have been pressured
to sign completely inadequate agreements, in the presence of the military--
agreements which oblige the communities to allow the companies to carry out
undefined petroleum exploration and extraction activities for undefined
periods of time.
THE AGREEMENTS OCCIDENTAL HAS SIGNED WITH INDIGENOUS COMMUNITIES IN ECUADOR
ARE UNCONSCIONABLE AND WERE SIGNED UNDER DURESS. IF SIGNED IN THE USA, THESE
AGREEMENTS WOULD BE INVALID AND MIGHT CONSTITUTE CRIMINAL FRAUD.
Occidental has used various forms of coercion to secure agreements with the
leaders of the indigenous communities. Leaders of the Secoya report that
prior to negotiations, the legal representative of Occidental threatened to
bring the military to the community. Occidental's legal representative also
told Secoya community leaders that "they did not want to see anyone else at
the discussions." Such statements amount to coercion and directly violate
the Secoya people's right to independent consultation.
In one instance, Occidental brought a draft agreement to the negotiations
and was very reluctant to include any of the proposals made by the
community. In the end, only a vague reference to the possibility of
temporary employment was included. In previous discussions, Occidental had
told the community that the company only wanted permission to do seismic
testing; however, the agreement signed permits Occidental to carry out any
form of "petroleum activity." A Secoya leader later realized that the
granting of permission for "petroleum activities" was a mistake, and asked
Occidental to change the agreement.
Occidental also reportedly told Secoya leaders that the company could not
pay in advance because they didn't have the money. To explain this
situation, the company used the analogy that "a farmer cannot pay the rent
for the land until he's harvested all the corn." The company also told the
Secoya leaders that if they did not grant permission, the Ecuadoran
government could expropriate the land and the community could lose its
territory.
Occidental operates in an area of over 200,000 hectares called Block 15.
This block includes a part of the Limoncocha Biological Reserve, (a
protected area) and part of the Secoya, Siona, and Quichua indigenous
territory. Occidental signed an agreement with the Ecuadorian government
which granting the company extraction rights for 20 years. Using
Occidental's own estimates of the existing reserves, the entire production
of Block 15 will supply the equivalent of U.S. oil consumption for just 12.7
days.
Accion Ecologica denounces Occidental, and demands that Occidental
renegotiate on fair terms.
The following letter to the director of OCCIDENTAL in Ecuador outlines the
reasons for declaring these negotiations to be invalid and unconscionable.
_______________________________________________________________
Quito, July 20, 1996
Mr. Mastonn Cunningham,
Director of OCCIDENTAL
Fax 467500
Mr. Cunningham:
With this letter we would like to launch a vigorous protest against the way
in which your company is conducting negotiations with the Quichua and Secoya
communities. These communities will be affected by the new series of Seismic
tests to be carried out in indigenous territory, and in areas already
colonized by "campesino" farmers.
We believe that it is essential that Occidental suspend current negotiations
and move to anul the unjust and unconsionable agreements that the company
has already signed. We also believe that Occidental commit to carrying out a
new series of negotiations with the communities under the following conditions:
i) that the communities are adequately and completely informed about the the
impacts of the operations;
ii) that the proposed agreements include the following aspects: utilization
of clean technology; remediation of environmental damage caused by the
operations; social compensation of the people affected; participative
mechanisms to control the social and environmental actions of Occidental,
and to ensure the fulfilment of the terms of the agreement;
iii) that the company respect the rights of the affected communities to
invite to participate in the negociations whoever the community believes may
be important as legal, technical, and environmental consultants.
iv) that Occidental guarantee that it will not utilize any form of coercion
in the negotiations.
These recommendations are based on the following events:
- On the 16th of July, the Secoya community of San Pablo signed an agreement
typical of other agreements that Occidental has signed. Nevertheless, three
communities have denounced these negotiations accusing the company of having
manipulated leaders of the communities.
- During their meeting of July 14th, the Siona community also denounced the
presence of Occidental in their territory. The Siona share their territory
with the Secoya and have expressed their disagreement with the agreement
reached by the Secoya leaders.
- The communities had not been duly informed by the company before they were
invited the negotiations. The only topic that had been discussed by the
company was a list of articles that the company could "donate." Moreover,
the company had not delivered the Environmental Impact Study, the Work Plan,
and other documents that the community had previously requested. Moreover,
the company never advised the community of the environmental, social and
health impacts of each of the phases of operation.
- Occidental is basing its negotiations with the communities exclusively on
the donation of articles. For example: raincoats, outboard motors,
chainsaws, and medicine chests. In some cases, the company offers limited
employment to members of the community. This type of negotiation is
paternalistic and immoral, and creates a relationship of dependence between
the communities and the companies. Moreover, it restricts any other claim
that the community might make in the future.
- Occidental has, on various occasions, told the Secoya and Quichua
indigenous communities not to "speak with environmental organizations,
because those organizations are only trying to take advantage of the
indigenous people." For now, we will not refer to the falsity of this
assertion, but we will reserve this as a statement to be tested in a
particular form. But, we do underline the fact that you are trying to
manipulate the indigenous people, that you are trying to impede their right
to information, and their right to be assisted by people independent of
Occidental. This kind of manipulation is a violation of the law.
- We reject Occidental's practice of inviting selected indigenous leaders to
visit the operational sites to demonstrate the quality of Occidental's
operations. At these site visits, the company presents a work scenario that
does not correspond to the experience of affected indigenous people. More
importantly, Occidental takes advantage of the people's lack of specialized
knowledge. The indigenous people do not have the technical background to ask
important questions regarding technological aspects and environmental
impacts. These communities have never even seen a petroleum separation
station, since they don't live in the petroleum production zone.
- Occidental is pressuring the communities to sign agreements quickly, and
has made threats that if the people don't make agreements, the company will
use cluster drilling and will not need to enter the community territory--the
result being that the communities will not reap the benefits offerred by the
company.
We would also like to take the opportunity to request a copy of the Social
Impact Study with respect to the communities of San Roque, San Isla, Pilche,
Indillama, EdAEn, Pompeya, Rio Jivino, Providencia, Centro Auango, Pauacocha
and Itaya (this community is adjacent to Lake Limoncocha where Occidental is
currently laying an oil pipeline); we also request a copy of the permits for
each stage of the operations within the Limoncocha Biological Reserve
granted by Inefan .
We are anticipating your reponse.
Yours Sincerely,
Paulina Garzun,
Monitoring Team
Accion Ecologica
_______________________________________________________________
WHAT CAN YOU DO?
FORWARD THIS ACTION ALERT TO EVERY EMAIL ADDRESS YOU KNOW
WRITE LETTERS TO THE DIRECTORS OF OCCIDENTAL CORPORATION DENOUNCING THE
IMMORAL AND ILLEGAL WAY IN WHICH THEY ARE CARRYING OUT NEGOTIATIONS. DEMAND
THAT THEY SUSPEND NEGOTIATIONS AND CONDUCT ALL FUTURE NEGOTIATIONS ETHICALLY
AND LEGALLY.
Ray R. Irani, President and Chief Executive Officer
Occidental Petroleum
10889 Wilshire Boulevard,
Los Angeles, California
90024-4201
Mastonn Cunningham
Occidental Exploration and Production Co.
Av. Amazonas 3837 y Corea,
Casilla 17-15-0095-C
Quito, Ecuador
WRITE LETTERS TO THE INDIGENOUS COMMUNITIES SUPPORTING THEIR
RIGHT TO BE FULLY INFORMED AND FAIRLY COMPENSATED.
- Organizacion Indigena Secoya del Ecuador
- La Comunidad de EdAEn
- La Comunidad de Pompeya
- La Comunidad de Rio Jivino
c/o Accion Ecologica
Federico Pcez 118 y Patria 3er. Piso
Casilla 17-15-246-C
Quito, Ecuador
email: "pgarzon@acecol.ecx.ec"
Translation of Agreement between Occidental, Petroecuador, and the Secoya
Indigenous Organization (OISE) of Ecuador:
_______________________________________________________________
SECOYA INDIGENOUS ORGANIZATION OF ECUADOR
O.I.S.E.
Sucumbios - Sucubios - Ecuador
The representatives of the Organizations of the Siona and Secoya
communities; and the representatives of Petroecuador and Occidental, meet in
the community of San Pablo of Kantcsiayc, with a representative of the
Ecuadorian Army acting as a witness of honour.
Based on a previous internal agreement, the Siona and Secoya communities
have agreed to permit petroleum activities to be carried out by OCCIDENTAL
company, contracted by Petroecuador.
The agreement consists of:
OBLIGATIONS OF OCCIDENTAL.
- OCCIDENTAL will deliver five water-pumps and their solar panels to be
distributed between the different centres that make-up your organization. As
social compensation, Occidental will also deliver five medicine chests.
- For the opening of pathways in the forest, Occidental will provide
indemnization to the Siona Secoya communities based on the list of prices
established by FECUNAE.
- Occidental promises to coordinate, to the extent possible, the contracting
of workers from the community; for this, the community must provide a list
of personnel available. These contracts will be temporary and will be the
responsibility of the respective contractors.
OBLIGATIONS OF THE SIONA - SECOYA COMMUNITIES
- The Siona - Secoya communities promise to authorize the right of way of
Occidental work-groups and their contractors to carry out their petroleum
activities.
Signed as a record of the the above-written, on the 9th day of July, 1996:
Humberto Piaguaje | Leonidas Payaguaje | Eng. Manuel Echeverria
President of OISE | Vice-President of ONISE | OCCIDENTAL
Eng. Fab'an Rubio | Elias Piaguaje | Major Herna'n Altamirano
PETROECUADOR | Witness | Witness