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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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