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Pablo Fajardo Mendoza & Luis Yanza

2008 Goldman Prize Winner

Pablo Fajardo Mendoza & Luis Yanza

Drilling & Mining
South & Central America

In the Ecuadorian Amazon, Pablo Fajardo and Luis Yanza led one of the largest environmental legal battles in history against oil giant Chevron, demanding justice for the massive petroleum in the region.

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Meet Pablo Fajardo Mendoza & Luis Yanza

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In the Ecuadorian Amazon, Pablo Fajardo and Luis Yanza led one of the largest environmental legal battles in history against oil giant Chevron, demanding justice for the massive petroleum in the region.

Massive Oil Contamination in Ecuador

The Ecuadorian Amazon contains 5% of all the world’s plant and animal species and is one of the most biodiverse places in the Amazon and on Earth. As the region’s primary oil investor in the 1970s and 1980s, Texaco built much of Ecuador’s oil infrastructure but chose not to re-inject back into the ground the wastewater and sludge brought up by the drilling process, called formation waters. Instead, according to the plaintiffs, billions of gallons were dumped into the region’s waterways, or left in more than 1,000 unlined, open pits scattered throughout the area. By the company’s own estimates, it spilled nearly 17 million gallons of oil into soils and waterways, and another 20 billion gallons of formation waters. By comparison, the Exxon Valdez spilled just over 10 million gallons of oil. In 1992, Texaco left Ecuador, leaving behind what experts and inhabitants call a monumental environmental disaster.

To this day, the region’s 30,000 inhabitants primarily drink water that has been deemed contaminated by experts involved in the case. According to the plaintiffs, many of the waste pits continue to pollute the rivers, streams and groundwater. In some areas, all water sources are contaminated and few fish survive in the rivers.

The plaintiffs claim that prolonged exposure to toxic substances has led to a serious health crisis, and caused people living in such proximity to pollution to suffer dramatically increased incidences of skin disease, respiratory ailments, reproductive disorders and a cancer rate seven times higher than the rest of the country’s population. They also claim that the regional devastation includes more than two million acres of deforestation. Chevron, however, claims that the region’s environmental and health problems are not a result of the pollution left behind by Texaco, and that they are no longer responsible.

A Lawsuit Takes Hold

In 1993, Yanza, working with a team of US-based lawyers, filed a class-action lawsuit against Texaco. Plaintiffs included a coalition of residents brought together by Yanza’s organization, including 80 villages and five different indigenous peoples. The initial case against Texaco (acquired by Chevron in 2001) was filed in 1993 in a New York district court, near Texaco’s headquarters. In 1996, a superior court judge dismissed the case, but the plaintiffs filed an appeal and won a reversal of the decision. In 2002, the US Court of Appeals agreed with Chevron’s request to send the case to Ecuador. However, the court warned Chevron that US courts would intervene if the company tried to avoid a judgment imposed by the Ecuadorian courts.

In May 2003, the 30,000 plaintiffs, led by Fajardo’s legal team, filed a lawsuit in Ecuador’s northern Amazon, demanding that Chevron pay for a complete cleanup, including removal of all formation waters, debris, and equipment; remediation of all contaminated water bodies and lands; recuperation of fauna, flora, and aqueous life; and monitoring and improvement of the health of the inhabitants.

Chevron does not deny dumping formation waters or oil in the region, but says the resulting contamination has not harmed the inhabitants and it is not responsible for any cleanup. In March 2007, the plaintiffs, with the abundant evidence collected from 45 field inspections, had already proven the existence of extensive contamination, and that further delay was not necessary. The judge issued an order to begin an assessment of the damages, which was carried out by an independent expert, culminating in a report released in April 2008 citing $8.3 – $16 billion in damages. Fajardo and Yanza toured the country relentlessly, making the trial an issue of national dignity and sovereignty.

Standing up to Big Oil

The impact of Yanza and Fajardo’s efforts on Ecuador’s oil industry has been far-reaching. They have publicized the long-term effects on the environment and people, leading the government of Ecuador to pass stronger environmental protection laws. Texaco and Chevron’s legacy in Ecuador is now part of the national collective consciousness. Fajardo and Yanza also hosted the president of Ecuador on a tour of Texaco’s former operations, leading to a pledge by the government to relocate several contaminated communities.

Their work entails significant risk, as well. Yanza, Fajardo, their families, and a number of their colleagues have been targets of death threats, harassment, and intimidation. In December 2005, the Inter-American Commission on Human Rights of the Organization of American States issued precautionary measures for Yanza and Fajardo in an effort to protect their lives. Fajardo’s brother was killed just months after he joined the legal team; no investigation took place and no one was arrested for the homicide. Fajardo has been forced to vary his daily routine, often sleeping in a different place each night.

In 2012, Yanza and Fajardo celebrated a major victory with an appeals court ordering Chevron to pay $18 billion in damages to 30,000 indigenous plaintiffs as a result of their historic class action lawsuit. Chevron refused to pay and is fighting the decision in court.