August 25, 2016
Oil Drilling Contamination Cost Chevron $8.6 Billion Fine
Chevron Corp. has been found responsible for oil drilling contamination in a vast area of Ecuador’s northern jungle. The oil giant has been ordered to pay a massive fine of $8.6 billion in damages and clean up costs.
Despite the fact that this has been reported as the highest award for damage in an environmental lawsuit, to be awarded, the original amount that was recommended was much higher, at $27.3 billion.
Chevron responded to the decision claiming that it was “illegitimate and unenforceable” and made it clear that there would be an appeal. Fearing that it could not get a fair trial in the area, Chevron has already taken the steps of removing all assets from the area.
The legal case has been working its way through courts in both the U.S. and Equador for over 17 years. The lawsuit had originally been filed against Texaco in a New York federal court back in 1993. It was dismissed after Texaco argued that the proper place for the trial to take place would be Equador. The lawsuit was refiled in 2003, two years after Chevron bought Texaco.