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of a particular hazardous substance equate to injuries or service<br />

losses.” 1030 Yet that is precisely what Dr. Barnthouse does in his report.<br />

• Dr. Barnthouse inexplicably identifies the area lost to roads and other<br />

essential functions of petroleum operations (e.g., stations, well pads, pits,<br />

etc.) for which he contends that compensation should be granted.<br />

However, as Dr. Barnthouse himself recognizes, natural resource<br />

damages are only compensable for unpermitted activities. 1031 TexPet’s<br />

construction of roads and other essential facilities was authorized and<br />

mandated by the concession agreement. The Government of Ecuador<br />

specifically required TexPet to build roads into the former concession area<br />

and sanctioned the building of operational facilities as a necessary<br />

consequence of petroleum exploration and production activities. 1032<br />

• Those roads and essential facilities should have been included in Dr.<br />

Barnthouse’s analysis of “baseline” conditions and, therefore, excluded<br />

from the damages assessment. 1033 The determination of baseline<br />

conditions is a critical component of assessing natural resource damages<br />

because it establishes a standard against which current conditions are<br />

measured.<br />

• Not only does Dr. Barnthouse assume service losses from both legal<br />

construction activities and as a result of alleged exceedances of some<br />

environmental screening levels, but he also assumes the alleged<br />

exceedances and attributes those alleged exceedances to TexPet alone.<br />

Dr. Barnthouse completely ignores both TexPet’s remediation efforts in<br />

the mid-1990s as well as the fact that Petroecuador has been the sole<br />

operator of oil production facilities in the former concession area since<br />

1030 DESVOUSGES, William, Critique of Dr. Barnthouse’s Report: Estimation of Natural Resource<br />

Losses Related to Oil Field Development in the Concession, at 6, attached as Annex 5 to <strong>Chevron</strong>’s<br />

Motion filed Oct. 29, 2010 at 5:20 p.m., (citing Barnthouse and Stahl 2002).<br />

1031 DESVOUSGES, William, Critique of Dr. Barnthouse’s Report: Estimation of Natural Resource<br />

Losses Related to Oil Field Development in the Concession, at 5, attached as Annex 5 to <strong>Chevron</strong>’s<br />

Motion filed Oct. 29, 2010 at 5:20 p.m.<br />

1032 See <strong>TO</strong>MASI, Theodore D., Rebuttal to “Evaluation of Natural Resource Service Losses<br />

Related to Oil Field Development in the Concession” by Dr. Lawrence W. Barnthouse, at 3, 7, attached as<br />

Annex 8 to <strong>Chevron</strong>’s Motion filed Oct. 29, 2010 at 5:20 p.m.<br />

1033 See DESVOUSGES, William, Critique of Dr. Barnthouse’s Report: Estimation of Natural<br />

Resource Losses Related to Oil Field Development in the Concession, at 9, attached as Annex 5 to<br />

<strong>Chevron</strong>’s Motion filed Oct. 29, 2010 at 5:20 p.m., (citing Leamer 2010); <strong>TO</strong>MASI, Theodore D., Rebuttal<br />

to “Evaluation of Natural Resource Service Losses Related to Oil Field Development in the Concession”<br />

by Dr. Lawrence W. Barnthouse, at 7, attached as Annex 8 to <strong>Chevron</strong>’s Motion filed Oct. 29, 2010 at<br />

5:20 p.m.<br />

CERT. INTERMARK VER: JD<br />

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