UPDATE

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FOREST CONSERVATION NEWS TODAY

Pipeline Construction Blockaded in Ecuadorian Rainforest Reserve

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10/15/01

OVERVIEW & COMMENTARY by Forests.org

Dozens of women and children have commenced a peaceful blockade to

stop construction of Ecuador's new oil pipeline that threatens to

devastate the country's rainforests and local peoples.  The pipeline

will allow Ecuador to double its current oil production, setting off

an unprecedented boom in new oil exploration.   This is likely to

cause the irreversible loss and destruction of some the country's

last remaining old growth rainforests and territories of isolated

indigenous peoples.  As currently routed the pipeline will devastate

11 protected forest areas including the Mindo Nambillo Cloudforest

Reserve - home to some 450 species of birds.  This list's members

have been active participants in email campaigns to halt this

project.  Despite government approval, whether the pipeline will be

built is far from certain.  Below is an excellent update and

extensive background information on the situation from the Rainforest

Action Network, as well as their suggestions for taking action and

directing protests at the project's financiers.

g.b.

 

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RELAYED TEXT STARTS HERE:

 

ITEM#1

Title:  Controversial Pipeline Construction Blockaded in Ecuadorian

  Cloud Forest Reserve - Local Women and Children Protest Citigroup-

  Backed Project

Source:  Copyright 2001 Rainforest Action Network

Date:  October 12, 2001  

 

PRESS RELEASE

 

(Guarumos, Ecuador) - Ecuadorian groups announced that dozens of   

women and children yesterday began a peaceful blockade of OCP

Consortium machinery as it attempted to clear protected forests to

build Ecuador's new heavy crude pipeline. The building of the

pipeline along its current route, funded in part by Citigroup, will

devastate 11 protected forest areas and lead to the doubling of oil

production from National Parks and other protected areas in the

Ecuadorian Amazon and have a devastating impact on local communities.

 

As of 4 pm EST, an estimated 40 people from local communities

affected by the pipeline were participating in the successful

blockade. "The blockade has virtually stopped the crews from

destroying this globally significant cloud forest reserve," said

environmental group Acci>n Ecol>gica, noting that a resistance camp

will be maintained in Los Guarumos region on the Non-Tandapaya Road,

an approximately 2 hour drive from Quito.

 

Opposition to the construction of Ecuador's new Heavy Crude Oil

Pipeline (OCP) has captured international headlines. Unsuccessful in

their attempts to use legal channels to change the planned route of

the pipeline, environmental groups have put pressure on investment

companies responsible for the financial backing behind the pipeline.

In particular, Westdeustche Landesbank (WestLB), Germany's largest

bank and Citigroup have been pressured by activists to use their

financial influence to alter the route of the pipeline and guarantee

protection of Yasuni National Park, an environmentally critical

forest area planned to be drilled for short-term oil profits. WestLB

has arranged a $900 million financing package for the OCP consortium

and Citigroup is the financial backer of primary consortium member

Perez-Companc, who owns the drilling rights to areas within Yasuni

National Park.

 

The pipeline consortium also includes Techint, Alberta Energy,

Repsol-YPF, AGIP, Kerr-McGee and the Los Angeles-based Occidental

Petroleum, already the subject of protest campaigns for their

controversial oil projects in Colombia.

 

Environmental and public health problems with pipeline spills in

Ecuador are ongoing. In May, the country's existing pipeline ruptured

due to a landslide, spilling 7,000 barrels of oil. This accident was

the 14th major oil spill since 1998. The Mindo area includes steep

and unstable slopes where there is a high risk of oil spills.

 

The Mindo inhabitants want to focus international attention on their

stance in defense of endangered species and globally important

ecosystems. They urge U.S. energy users to support a more rapid

transition to clean energy alternatives given that half of the oil

from the OCP pipeline will be destined for West Coast US markets.

 

Citigroup is the subject on an ongoing campaign for funding

controversial fossil fuel and logging projects in endangered

ecosystems. In addition to their participation in OCP, they have

leadership roles in the Camisea project in Peru, the Chad-Cameroon

pipeline in Africa, and the PetroZuata project in the Orinoco Delta

in Venezuela.

 

Press Contacts:

In US:

Ilyse Hogue, Rainforest Action Network: 415-398-4404,

Janet Lloyd, Amazon Watch: 310-455-0617

 

In Ecuador:

Alexandra Almeida, Acci>n Ecol>gica 011 593 22 547-516 or 527-583

Related Links:

 

 

TAKE ACTION!

 

CALL Citi's investor relations :

1-888-250-3985 and dial 0 until you reach a human operator

Tell them to use their influence to halt this destructive project and

to stop funding destructive activities such as fossil fuel

development and logging.

 

CALL/FAX the Ecuadorian Embassy in DC :

Tel. 202-2347200 Fax 202-667-3482

Let them know that the world is watching to insure that these

activists are allowed to voice their dissent in safety. Tell them

that you are a potential eco-tourist who doesn't want to see

Ecuador's spectacular forest reserves like the Mindo-Nambillo Cloud

Forest threatened by the OCP pipeline.

 

Call the NY offices of German bank West LB at 212-852-6000

Tell them to cancel the project and redirect their investments

towards renewable energy development that will help the people of

Ecuador without threatening biological and cultural diversity.

 

ORGANIZE SOLIDARITY DEMONSTRATIONS at you local Ecuadorian consulate.

The locations of all Ecuadorian consulates in North America are at

http://www.ecuador.org/visa.html#ConsulatesofEcuador

 

For a full background info on OCP and oil development's destructive

legacy in Ecuador See Amazon Watch's Report "The New Heavy Crude

Pipeline in Ecuador: Fueling a Second Oil Boom in the Amazon" at

www.amazonwatch.org

 

For more resources and assistance in organize against Citigroup in

your community check out  www.ran.org or contact Rainforest Action

Network at 1-800-989-RAIN or email organize@ran.org

 

 

ITEM#2

Title:  CITIGROUP FUNDS PROPOSED ECUADORIAN PIPELINE

  WHICH THREATENS FRAGILE ECOSYSTEMS AND COMMUNITIES

Source:  Copyright 2001 Rainforest Action Network

Date:  October 12, 2001  

 

To See RAN's case study on Citigroup and OCP check out :

http://www.ran.org/ran_campaigns/citigroup/cs_ocp.html

 

Ignoring the devastating toll thirty years of reckless oil

development has taken on the country of Ecuador - particularly on the

Amazon and its people - the government and a consortium of

multinational oil companies are poised to make the same irreversible

mistake by moving ahead with a controversial new oil pipeline project

known as the OCP (Oleoducto de Crudo Pesado).   Among the

consortium's main funders is Citigroup - the world's most destructive

bank.  As the number one funder of oil pipelines around the world it

is no surprise to find Citi playing a central role with yet another

massive, destructive fossil fuel project.

 

Financially backed by Citigroup, J.P. Morgan Chase Bank, and Deutsche

Bank, the OCP consortium is comprised of Alberta Energy (Canada),

Kerr McGee (USA), Occidental Petroleum (USA) - notorious for their

invasion of the U'wa people's land in Colombia, AGIP (Italy), Perez

Companc (Argentina), Repsol-YPF (Spain) and Techint (Argentina).  The

pipeline would transport heavy crude from the country's eastern

rainforest region to the Pacific Coast, placing fragile ecosystems

and dozens of communities along the 300-mile route in jeopardy.

 

The pipeline route chosen by the OCP consortium affects 11 protected

areas, and cuts through the middle of the Mindo Nambillo Cloudforest

Reserve and the surrounding ecologically sensitive forests.  This

area is home to more than 450 species of birds---46 of which are

threatened by extinction --and has been designated the first 

"Important Bird Area" of South America by Birdlife International. 

The pipeline also represents a threat to the area's burgeoning eco-

tourism industry, which is expected to bring in $600 million over the

next 20 years.

 

In order to fill the new pipeline, Ecuador would have to double its

current oil production, setting off an unprecedented boom in new oil

exploration that could lead to the irreversible loss and destruction

of some the country 's last remaining old growth rainforest and

territories of isolated indigenous peoples.  Hundreds of new oil

wells and flow lines would be built from existing oil concessions

along with facilities necessary to process and refine the heavy crude

for transport across the country.  These activities threaten

protected areas such as Yasuni National Park, Cuyabeno Wildlife

Reserve, and the Limoncocha and Panacocha Biological Reserves.  This

project would also fuel the search for additional oil reserves

covering 2.4 million hectares of frontier forest, the majority of

which falls on the ancestral territories of Achuar, Shuar, Huaorani,

Quichua, Shiwiar, and Zapara indigenous communities.  Many of these

communities have vowed to never permit oil development on their land.

 

Prominent Ecuadorian and international environmental and human rights

organizations are calling for the cancellation of the OCP project and

a moratorium on all new oil exploration in the country's Amazon

region. CONAIE, the powerful national indigenous organization whose

non-violent uprisings have led to the ousting of two presidents in

the last five years, is joining environmental groups and local

communities in filing for a legal injunction in the coming weeks to

void the OCP contract with the government.

 

The Ecuadorian government, the OCP consortium, and the financiers

have failed to fully assess or disclose the long-term impacts of the

new OCP pipeline on ecologically and culturally sensitive areas in

the Amazon region or the coast.  The government squashed all public

debate on these concerns by closing the public review process a mere

three weeks after the release of the 1,500-page Environmental Impact

Assessment and fast tracking licensing.

 

Ecuador's oil exports are primarily destined for consumption in the

United States, particularly in California.  Not only does this

pipeline threaten fragile areas and local communities, it further

increases our reliance on oil - the main fossil fuel responsible for

climate change.  We must call on the involved financial institutions

to stop bankrolling destruction of the Amazon and environmental

injustice and urge them to invest in renewable energy alternatives -

not Amazon crude!

 

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