ACTION ALERT

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WORLDWIDE FOREST/BIODIVERSITY CAMPAIGN NEWS

Ecuador's Unprotected Protected Areas

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1/4/00

OVERVIEW & COMMENTARY

Oil activity in Ecuador has been and continues to be a permanent

threat to protected areas. Please respond to this Action Request about

the activities of Vintage Oil and the City Investing oil company.

g.b.

 

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Title:   ECUADOR: Unprotected Protected Areas

Source:  CAMPA„A AMAZONIA POR LA VIDA ACCION ECOLOGICA via Rainforest

         Information Centre's web site at http://forests.org/ric/

Status:  Copyright 1999, contact source for permission to reprint

Date:    January 2, 1999

 

Oil activity in Ecuador has been, and continues to be, a permanent  

threat to protected areas. Unfortunately, and much against our wishes,

we now find ourselves obliged to end the old millennium and to begin

the new with the announcement of two terrible pieces of news related

to oil:

 

The first refers to Yasuni National Park and the North American oil  

company, Vintage Oil Ecuador S.A.  Vintage is the inheritor of the  

infrastructure and operations of the French company Elf Aquitaine,

which transferred its operations and rights to block 14 in October of

this year, has made its debut with its first oil spill. With this

event which we can begin to perceive the environmental management

methods which lie in wait both for this protected area and the peoples

which live in the surrounding areas. The spill occurred on the 17th of

December of 1999 due to a break in the pipeline, and polluted a

stretch of approximately 100 metres of a 10 metres wide stream which

flows into the Tiputini river. The Tiputini crosses Yasuni National

Park and later discharges into the Napo river and subsequently into

the Amazon.

 

During its 12 years of operation, Elf made a negative mark on the  

zone: affecting primary forest within the park, and thus making a

mockery of the idea of a protected area; affecting the hunting area of

the Huaorani people; building infrastructure and roads which have

become the gateway to the devastation of the forest, from which timber

such as Caoba, Cedro and Guayacan is illegally taken for sale in

Colombia. Game animals such as Monkeys, Armadillos, Danta, and Guanta

also are taken from the area and sold as meat in the city of Coca.

 

Elf operated in this area with polluting technology, did not re-inject  

the formation water and produced frequent spills from the pipelines. 

The same practices are operative today. However, the most paradoxical

and irrational thing is that besides all this damage, the company

produces only 4,500 barrels of oil a day (1.5% of national

production). This implies that for the production to be profitable and

for the company to stay operational, the Ecuadorian government has to

subsidise it, as it has been shown to do with all the trans-national 

oil companies. Thus leading to the absurd situation in which the

Ecuadorian Government is actually subsidising the destruction of the

protected areas in the country.

 

The second piece of news is that this month, the City Investing oil  

company entered the Cuyabeno Animal reserve in order to carry out

seismic prospecting. This leads us to wonder about the interests or

reasons which motivated the adoption by the Ministry of the

Environment of a resolution authorising oil activity in the Reserve

and Siona ancestral territory. This resolution flies in the face of

the environmental conservation discourse of the Minster, Yolanda

Kakabadze, who is also the President of the International Union for

the Conservation of Nature (IUCN).

 

The most astounding part of this is that precisely at the beginning of  

the year, by means of an Presidential decree, the government declared

two zones within Yasuni National Park and Cuyabeno Animal Reserve to

be off limits to oil, timber and mining activities in perpetuity. We

ask ourselves once again, how will it be possible to protect an area 

while at the same time it is being destroyed.?

 

The threat to these areas is even greater if we consider the danger  

posed by the much heralded concession of the Ishpingo Tambacocha 

Tiputini project within Yasuni National Park, and the construction of 

a new heavy oil pipeline which will come out of these same areas.

 

We call on all people and organisations who receive this message send  

letters demanding that the companies involved, together with the

Ecuadorian government, stop these events and the threats to protected

areas. We are attaching a sample letter which you can use.

 

In solidarity,

 

Alexandra Almeida

CAMPA„A AMAZONIA POR LA VIDA

ACCION ECOLOGICA

 

 

First Letter: opposition letter to Chase Manhattan Bank

 

We have recently learned of Chase Manhattan Bank's involvement with

the construction of Heavy Oil Pipeline in Ecuador.

 

The undersigned wish to express in the strongest terms their  

opposition to the construction of this new pipeline in Ecuador

because:

 

1. SOCIAL & LEGAL ISSUES: The Heavy Oil Pipeline will encounter social

and legal opposition, as Ecuador has developed specific laws

governing. If the pipeline is constructed it will be necessary to

increase national production by 250,000 barrels per day. Oil that will

come from new concessions located in indigenous territory and

protected areas.  The indigenous people who live in these territories

have told the national government of Ecuador, and the oil companies

themselves, that they will not permit the exploration for, and

exploitation of oil.  They have declared their territories as

intangible areas and have made this public both on a national and

international level.

 

In Ecuador, the national government has signed international treaties  

such as Convention 169 of the International Labour Organisation,

Collective Rights have been enshrined in the Constitution, and

specific laws have been passed. All of that prohibit the carrying out

of projects which cause or can affect the environment or our rights.

 

2. POLITICAL RISK: to guarantee the operation of the heavy oil  

pipeline it will be necessary to exploit the Ishpingo Tambacocha

Tiputini (ITT). The ITT has faced significant political risks that

have caused companies such as Shell and BP to withdraw. The ITT

project is located in the heart of YasunĄ National Park, which has

been declared a Biosphere Reserve by UNESCO and which is also part of

the traditional territory of the Huaorani people.

 

The whole world has expressed its opposition to the possible  

exploitation of these oil fields, due to their location in one of the

most fragile and diverse zones on the planet.

 

A number of campaigns have been carried out in defence of YasunĄ  

National Park , for which reason companies which were initially 

interested, such as Shell and BP, have been forced to withdraw. In the

latter case, BP was obliged to sell the oil projects of ARCO before

the two companies were merged.

 

3. NOT FINANCIALLY VIABLE: It is also necessary to mention that the  

Heavy Oil Pipeline project may NOT be financially viable, because it

relies on the success of the ITT project, a drilling operation based

on overestimated oil reserves and facing significant political

opposition.

 

The Heavy Oil Pipeline faces significant downside risk associated  

with the environmental and social controversies surrounding the

pipeline and the ITT project. The undersigned groups strongly oppose

the Heavy Oil Pipeline and request that Chase Manhattan Bank avoid or

cease all financial involvement in this project.

 

SIGNED,

 

Send it, please, to the follow addressees:

 

William B. Harrison

PRESIDENT AND CHIEF EXECUTIVE OFFICER

CHASE MANHATTAN BANK

270 Park Avenue

New York, NY 10017-2070

Fax: 212-270-1882

 

And at the same address:

 

Walter Shipley

Chairman

CHASE MANHATTAN BANK

 

James Lee

Vice Chairman

Global Investment Banking

CHASE MANHATTAN BANK

 

Carter Booth

Managing Director

CHASE MANHATTAN BANK

 

Dod A. Fraser

Managing Director

Corporate Finance, Global Oil & Gas

CHASE MANHATTAN BANK

 

 

Second Letter: to Ecuador's Government

 

Please use the introductory information above and the points in the

sample letter to Chase Manhattan to write a courteous letter to the

environment minister. Send your letter to:

 

Sra.

Yolanda Kakabadse

MINISTRA DEL AMBIENTE

Quito, Ecuador

Fax: (593 2) 564 037

 

 

With copy to:

 

Teodoro Abdo

MINISTRO DE ENERGIA Y MINAS

Quito, Ecuador

Fax: (593 2) 571228

 

 

Source: Accion Ecologica Wed, 29 Dec 1999

 

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