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SustainableBusiness.com News: Amazon Farmers Seize Chevron Assets

http://www.sustainablebusiness.com/index.cfm/go/news.display/id/24191

This is the BEST news I have heard in ages. The last sentence is the zinger!!!!
DV

10/17/2012 02:17 PM

In a huge success for Amazon farmers that have been suing Chevron for 18 years, an Ecuadorian court ruled they can seize $200 million in assets from the oil company.

That includes $96.3 million the Ecuador government owes Chevron, money held in Ecuadorean bank accounts by Chevron, and licensing fees generated by the use of the company’s trademarks in the country, reports Reuters.

Chevron has been struggling to get out of paying $19 billion in damages to Ecuadorean villagers for polluting rivers with 16 billion gallons of oil sludge from 1964-1990.

This is a critically important case – the first time an indigenous community has prevailed against a multinational corporation. Oil companies are, of course, keeping close watch on this case as it provides an important precedent for communities to fight their pollution. Shell has a similar case against it in Nigeria.

The company even took it to the US Supreme court, which last week rejected Chevron’s attempt to overturn the $19 billion judgment against it.

The suit was originally brought against Texaco (bought by Chevron in 2001). In February 2011, an Ecuadorean judge imposed damages for $8.6 billion – the fine has more than doubled since then because Chevron has not made the public apology the court required.
Instead, the company filed an appeal in New York to block the judgment, saying it was illegal and unenforceable under the state’s law – and a federal judge took its side in March 2011.

But earlier this year, an appeals court overturned that decision, noting US courts can’t interfere with courts from other countries. So Chevron appealed again – this time to the Supreme Court.

The Supreme Court’s rejection of that appeal opened the door for this week’s ruling, issued in the Amazon town of Lago Agrio.

“This is a huge first step for the rainforest villagers on the road to collecting the entire $19 billion judgment,” Pablo Fajardo, the lead lawyer for the communities, told Reuters.
Chevron is fighting back again, charging racketeering against New York attorney Steven Donziger, a group of Ecuadoreans and the environmental groups that helped win the original judgment against it.

It is also bringing the matter to an international trade arbitration panel which is scheduled to begin hearings on the dispute in November, reports Reuters.

After the original judgment, Ecuador and the United Nations Development Program signed a historic deal to leave an estimated 846 million barrels of crude oil untapped beneath Yasuní National Park, a World Biosphere Reserve since 1989.

Special thanks to Richard Charter

Examiner: Macondo not dead, BP hiding crude oil source

http://www.examiner.com/article/macondo-not-dead-bp-hiding-crude-oil-source

TOP NATIONAL NEWS OCTOBER 15, 2012BY: DEBORAH DUPRE

Government scientists definitively linked a new Gulf of Mexico oil slick, that has moved to some 90 miles from the sinkhole, to BP’s 2010 oil catastrophe, saying it is probably from a BP Deepwater Horizon rig pipe, but one expert is not buying it and people are demanding evidence about the source of the crude oil, both in the gulf and the sinkhole.

Catastrophic Gulf Operation continues

“People are demanding evidence of where the fresh crude is coming from, because the storyline that BP is floating out there now – that a small amount of leftover oil is now being released from a bent riser at the rig that exploded in 2010 – simply is not holding water,” environmental attorney Stuart Smith stated Monday in his blog post.

According to a senior government scientist, the most likely source of the new oil in the Gulf is the mile-long length of pipe from the Deepwater Horizon rig, now in a “crumpled loop on the ocean floor” near the Macondo well, the Guardian reported Friday.

“At worst, he said, the pipe was thought to contain some 1,800 barrels of oil – a minuscule amount compared with the 4.9m barrels that gushed into the ocean from BP’s well during the 2010 oil disaster.”

“When you look at all those pieces of information and put them together, there is a high degree of confidence that the oil we are seeing and the sheening on the surface is coming from the riser, and that this is residual oil,” said Frank Csulak, the National Oceanic and Atmospheric Administration’s (NOAA) scientific co-ordinator for the Deepwater Horizon disaster site.

BP says its tests confirmed the oil was from the riser, and samples contained compounds found in drilling mud.

“The size of the sheen, its persistent point of origin and other factors indicate the most likely source is the bent riser pipe that once connected the rig to the well head, where a mix of oil, drilling mud and sea water were trapped after the top kill operation,” BP spokesman Brett Clanton said.

“It’s very reasonable and logical to conclude that maybe a little crack formed in one of the creases, in one of the bends, and that is where the oil is leaking out of.”

Last week, the sheen, only microns thick, extended three miles, from near the BP-wrecked Macondo well about 50 miles offshore of Louisiana and about 90 miles from the giant sinkhole that emerged in Bayou Corne. New evidence has shown that BP possibly cracked the ocean floor

The United States Coast Guard said in a statement Wednesday night that lab tests, performed at a government facility in Connecticut, matched the slick oil to the Deepwater Horizon.

The size and persistence of the new sheen near BP’s disaster site at Macondo well, first detected by satellite images on 9 September, prompted further investigation.

“The exact source of the oil is unclear at this time but [it] could be residual oil associated with the wreckage or debris left on the seabed from the Deepwater Horizon incident,” the Coast Guard said in a statement.

The Washington Post said other government officials said it is unlikely that oil could be leaking again from the original Macondo well head. Engineers poured thick plugs of cement into both ends of the well to finally cap it last July 2010, and officials said a new breach was very unlikely. “With what we did to it it’s pretty hard to imagine,” Marcia McNutt, who heads the US Geological Survey, told the Post.

A more detailed chemical analysis also ruled out a natural seep from the well reservoir. Csulak said researchers discovered the presence of drilling mud, which had been in the riser.

She appeared to “downplay concerns about more oil entering the Gulf.”
“We don’t feel that is causing an environmental impact. It’s not going to reach the shore-line.” McNutt said

Macondo not dead

Americans along the Gulf Coast still want answers about both the 2010 BP-wrecked Macondo Well and now, its possible relationship to south Louisiana’s monster sinkhole, both seeping crude oil and methane. Predictions had been made in 2010 that methane from the Macondo Well could cause a sinkhole problem.

Today, as one citizen reporter reports dissatisfaction seeing a large order of generators in a Panama City, Florida Home Depot heading to New Orleans, 70 miles from the disastrous crude-inundated sinkhole in Bayou Corne, environmental attorney Stuart Smith says he is not satisfied with answers provided by the government and BP.

(Watch “Alert! Imminent Disaster About to Happen in New Orleans” video on this page.)
Responding to what the Washington Post called “persistent rumors and allegations on blogs that Macondo is not truly dead, and that it is continuing to spew oil into the gulf,” Marcia McNutt, director of the U.S. Geological Survey, spoke to the Post.

McNutt said rough calculations show the riser, if full of oil, could hold around 1,000 barrels of oil and because it’s open on two ends, it’s unlikely to have that much oil.

“McNutt said it’s unlikely that oil came from the deep reservoir” of Macondo well.
“The well was plugged from both the top and the bottom, and has a mile of cement crammed into it.

“With what we did to it, it’s pretty hard to imagine, ” added McNutt.

Matt Simmons had claimed that what they did do was a sham, that the well-capping shown on TV was a performance, a “dog and pony show.” After the untimely death of Simmons, a surveyor, using government data, proved Simmons correct.

Now, according to Smith on Monday, BP and the government are still trying to hide the real cause of the sheen and people want the truth.

“BP wants us to believe that this new sheen is coming from residual oil from the Deepwater Horizon rig and the equipment that was used to cap it after the April 2010 explosion that killed 11 people and spewed an unbelievable 5 million barrels of oil into the Gulf of Mexico,” Smith states.

“But most experts fear that the more likely source is a more troubling scenario, which is that the efforts to cap the massive leak two years ago led to cracks in the sea floor that are releasing fresh oil that cannot easily be stopped.

Smith points to “a good independent analysis of the situation” as follows:
But there is not that much oil in the riser. As the Washington Post reported Wednesday:
Marcia McNutt, director of the U.S. Geological Survey, said a rough calculation showed that the riser, if full of oil, could hold about 1,000 barrels of oil. Because it’s open on two ends it is unlikely to have that much oil, she said.

Indeed, Dr. Ian MacDonald – an expert in deep-ocean extreme communities including natural hydrocarbon seeps, gas hydrates, and mud volcano systems, a former long-time NOAA scientist, and a professor of Biological Oceanography at Florida State University-

told us today:
The key statement in the BP discussion was the fact that oil recovered on the ocean surface was not biodegraded. This is not consistent with a pool of oil supposedly trapped in the wreckage of the riser, which would have been exposed to ambient bacterial activity for over two years.

This piece also responds to the question, “So where is the oil coming from?”

We’re not sure yet. But top oil spill experts – such as UC Berkeley professor and government consultant Robert Bea and LSU professor Ed Overton – have told us that oil blowouts such as the one in the Gulf can create new pathways to the seafloor and enlarge natural oil seeps Š so that leaks can continue for years.

“Exactly,” says Smith. “But BP and the feds have plenty of good reason not to let people know if this is what’s indeed happening under the Gulf.

“That’s because that would mean that the Deepwater Horizon spill is still an ongoing event – one with no immediate end in sight – which would thwart the oil giant’s efforts to put the disaster behind them.”

Smith continues, “In particular, it would really mess up BP’s efforts to settle its ongoing legal woes from the 2010 explosion. I’ve told you a lot recently about problems with BP’s proposed $8.7 billion settlement about claims by Gulf residents and small businesses.”

“These things are not happening in a vacuum. They’re all connected,” Smith says, asserting what other independent scientists have said relating to the Louisiana sinkhole that is regurgitating and spreading crude from an unknown source throughout swamplands north of Macondo well.

“BP wants to sweep what’s going on at the Macondo field under the rug because it wants to settle its outstanding claims as quickly and with as little damage as possible. We can’t allow this to happen,” Smith asserts.

“There needs instead to be a thorough – and independent – investigation of where this new oil is really coming from.”

Citizens also want an independent investigation including one that answers how far far inland that crude can travel into south Louisiana, comprised mainly of water, and whether it is linked to or even triggered the giant sinkhole if BP cracked the ocean floor.

Smith explained on Oct. 4 that since BP wrecked the underwater Macondo well with its catastrophic deep sea drilling, blocked crude continues seeking a path to the surface, and that could create fissures or cracks in the sea floor for the hydrocarbons to escape.
According to Gary Hecox, Geologist with Shaw Environmental contracted by the Department of Natural Resources, 54,600 gallons of crude oil has been collected at the Bayou Corne sinkhole site near a collapsed storage cavern.

“Now we’ve got 1,300 barrels in a… tank,” Hecox said at a sinkhole Resident Meeting last Tuesday, after the sinkhole with an insatiable appetite for Cajun swampland grew to 4.2 acres. “If the source is coming in from crude, that resolves that discrepancy, but there is crude oil coming into the cavern.”

Deborah Dupré is author of the book, Vampire of Macondo, out soon.

Special thanks to Richard Charter

Washington Post: Oil in new Gulf slick matches that of 2010 spill

By Steven Mufson and Joel Achenbach, Published: October 10

The oil in a slick detected in the Gulf of Mexico last month matched oil from the Deepwater Horizon spill two years ago, the Coast Guard said Wednesday night, ending one mystery and creating another. “The exact source of the oil is unclear at this time but could be residual oil associated with the wreckage or debris left on the seabed from the Deepwater Horizon incident,” the Coast Guard said.

The Coast Guard added that “the sheen is not feasible to recover and does not pose a risk to the shoreline.” One government expert said the thin sheen, just microns thick, was 3 miles by 300 yards on Wednesday.
Some oil drilling experts said it was unlikely that BP’s Macondo well, which suffered a blowout on April 20, 2010, was leaking again given the extra precautions taken when it was finally sealed after spilling nearly 5 million barrels of crude into the gulf.

BP declined to comment. But a BP internal slide presentation said the new oil sheen probably came from the riser, a long piece of pipe that had connected the drilling rig to the well a mile below the sea surface.

The presentation said that “the size and persistence of this slick, the persistent location of the oil slick origin point, the chemistry of the samples taken from the slick … suggest that the likely source of the slick is a leak of Macondo … oil mixed with drilling mud that had been trapped in the riser of the Deepwater Horizon rig.”

But Ian MacDonald, a professor of oceanography at Florida State University and a spill expert, cautioned said that the origin of the new oil remains uncertain. “The jury is out here,” he said, adding that it was too early “to rule out that this is oil freshly released from the reservoir.”

The sheen, located about 50 miles off Louisiana’s shore in the Mississippi Canyon block 252 where the Macondo well was drilled, was detected in satellite images taken on Sept. 9 and Sept. 14. The Coast Guard said the size of the sheen has varied with weather conditions.

Samples of the crude were collected and sent to a Coast Guard laboratory in New London, Conn. On Tuesday, the Coast Guard told BP and Transocean, owner and operator of the Deepwater Horizon drilling rig that caught fire and sank, that the oil from the sheen and spill matched. In a meeting Wednesday, the Coast Guard told the companies to come up with a plan of action for determining the source. “No one’s 100 percent as to where it’s coming from,” said Frank Csulak, scientific support coordinator for the National Oceanic and Atmospheric Administration.

Since the disaster in 2010, which killed 11 workers, the wreckage of the massive rig, the crumpled riser and some hardware used in the attempt to kill the well have remained on the gulf floor. An August 2011 investigation, which came after oil blobs were observed on the surface and which included a visit to the wellhead by a remotely operated vehicle, turned up no sign that the well was leaking. That inspection was conducted by BP with federal government officials observing the process.

Nonetheless, there have been persistent rumors and allegations on blogs that Macondo is not truly dead, and that it is continuing to spew oil into the gulf. Marcia McNutt, director of the U.S. Geological Survey, said a rough calculation showed that the riser, if full of oil, could hold about 1,000 barrels of oil. Because it’s open on two ends it is unlikely to have that much oil, she said.

McNutt said it’s unlikely that oil came from the deep reservoir. The well was plugged from both the top and the bottom, and has a mile of cement crammed into it. “With what we did to it, it’s pretty hard to imagine, ” McNutt said.

Special thanks to Richard Charter

NASDAQ: Officials Issue Notice To BP, Transocean Over Deepwater Horizon Oil Sheen

http://www.nasdaq.com/article/officials-issue-notice-to-bp-transocean-over-deepwater-horizon-oil-sheen-20121010-01271

Oct 10, 2012

The Federal On-Scene Coordinator for the Deepwater Horizon oil spill issued a Notice of Federal Interest to BP PLC (BP) and Transocean Ltd. (RIG) this week due to an oil sheen in the spill area, a U.S. government statement said late Wednesday.

Coast Guard Capt. Duke Walker issued the notice Tuesday following sample results from an oil sheen near the area where the Deepwater Horizon drill rig exploded and sank more than two years ago, the statement from the government website restorethegulf.gov said.
It said the sheen, spotted on satellite images last month and reported by BP, doesn’t pose a risk to the shoreline.

The notice “effectively informs BP and Transocean that the Coast Guard matched the sheen samples to the Deepwater Horizon spill or sunken drilling debris and that either party or both may be held accountable for any cost associated with further assessments or operations related to this sheen,” the statement said.

Government statement:
http://www.restorethegulf.gov/release/2012/10/10/fosc-issues-notice-federal-interest-bp-and-transocean
Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Special thanks to Richard Charter

Media Matters: CNN’s Erin Burnett Gets It Wrong On Drilling And Gas Prices

http://mediamatters.org/blog/2012/10/10/cnns-erin-burnett-gets-it-wrong-on-drilling-and/190518

JILL FITZSIMMONS

CNN’s Erin Burnett claimed yesterday that drilling in the Arctic would lower U.S. gasoline prices, echoing a conservative narrative that has been debunked by energy experts across the ideological spectrum who say that expanding U.S. production will not affect the world oil market.

During a segment on Shell’s drilling expedition in the Arctic, Burnett suggested that “more drilling” in the U.S. is a solution to high gas prices in California and across the nation, saying: “One way to bring down costs, of course, would be more drilling and that is a highly political topic.”

Meanwhile, Piers Morgan has repeatedly suggested that President Obama’s energy policy is to blame for high gas prices.

But as their colleagues at CNN have explained, U.S. policies have little impact on the global price of oil. In April, CNN business correspondent Christine Romans said: “Republicans want to drill, drill, drill, drill, but just that won’t solve the problem … The only way to pay less for gas is to use less gas.”

Indeed, a recent analysis by the Associated Press found “[n]o statistical correlation between how much oil comes out of U.S. wells and the price at the pump.” Drilling in the Arctic won’t lower gas prices – it requires high prices. What NPR described as “Shell’s multibillion dollar gamble to make drilling in the Arctic profitable and environmentally safe” only makes economic sense if oil prices remain high.

Experts say that the long-term solution to U.S. vulnerability to high gas prices is not increasing oil production, but reducing our consumption by investing in fuel efficiency, public transit and alternative vehicles.

But drilling in the Arctic will only perpetuate our reliance on oil, and as Burnett went on to report, it could pose major environmental risks. Reports indicate that Shell may be unprepared to contain an oil spill in remote Arctic waters, which could be catastrophic for the fragile Arctic ecosystem. Even the CEO of Total, a French oil company, warned that the risk of an oil spill in the Arctic is too high to justify drilling there. And Arctic drilling will also release large amounts of methane and black carbon — greenhouse gases that contribute to climate change. Meanwhile, Alaskan natives have expressed concerns that industrial development in the region could threaten local wildlife and their way of life.

Special thanks to Richard Charter