Ecuadorian Judge Nicolás Zambrano in Lago Agrio ordered Chevron to pay $9.5 billion usd for polluting an area in the amazonian jungle the size of the U.S. state of Rhode Island from 1965 to 1992.
The 188-page ruling found Chevron responsible for damages caused by Texaco which it absorbed in 2001.
Judge Zambrano also said that the amount would DOUBLE if Chevron failed to publicly apologize for its actions within 15 days. It is the highest damage award ever issued in an environmental lawsuit.
The case has dragged on in courts for 18 years. Chevron said it will appeal.
BLOOMBERG reports that one expert believes that Chevron may never pay a cent of fines and penalties levied by an Ecuadorean court for environmental damage dating back to the 1960s because it doesn’t have any refineries, storage terminals, oil wells or other properties in Ecuador that could be seized.
Another claims "It’s cheaper for Chevron to pay the lawyers than to pay for the lawsuit. It’s a simple business case for them.”
But the award is surely a PR setback for Chevron which has recently been promoting itself a a "green" oil giant.
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