Important 2005 Proxy Voting Information for ChevronTexaco Shareholders


Proposal to Report on Ecuador
THEY CLAIM THAT... 1 BUT IN FACT... 2
Texaco’s subsidiary, “TexPet, operated the consortium in a safe and environmentally sound manner in accordance with Ecuador law and practices prevailing internationally at the time.” Texaco systematically dumped an estimated 18.5 billion gallons of toxic wastewaters into open unlined pits, waterways and wetlands. By comparison, it was standard practice in the U.S. to re-inject such waters into the ground, a safer method.
ChevronTexaco (CVX) believes that a report on Ecuador is not necessary since the issue is addressed through existing Company communication vehicles. The proposal does not ask for a report on already available information, but it asks for the reporting of new initiatives in order to correct the damages done by Texaco’s operations.
A similar proposal was defeated last year by overwhelming stockholder opposition. The resolution actually garnered three times the required votes to be re-filed in this year’s proxy.
ChevronTexaco (CVX) and its subsidiaries received full releases from any and all liability from the Government of Ecuador, Petroecuador, four municipalities and certain indigenous groups. There are still other indigenous groups and third parties independent from the government that did not release Texaco of its responsibility in Ecuador. 30,000 indigenous peoples and Amazonian villagers are currently suing the company for what could be billions of dollars in compensation.
“Expert analyses submitted to the court by our nominated experts have shown that the TexPet’s remediated sites inspected to date do not pose any threat to human health or the environment.” This incomplete statement ignores the fact that not even one third of the judicial site inspections have been completed, after which the Court will have to evaluate them.
ChevronTexaco (CVX) believes that the plaintiffs should seek relief from the Government of Ecuador and Petroecuador and has commenced arbitration in the United States against them. The Ecuadorian government and Petroecuador have challenged the arbitration and have filed a suit against ChevronTexaco (CVX) and the American Arbitration Association before the New York Courts. The Court has suspended the arbitration until further notice.
ChevronTexaco (CVX) has failed to disclose this litigation in the company’s 10-K annual report as required by the Securities and Exchange Commission’s Regulation S-K, Item 103.
PLEASE VOTE IN FAVOR OF THE PROPOSAL TO REPORT ON ECUADOR
1 Source: Your Board’s recommendation against the proposal to report on Ecuador. 2005 ChevronTexaco Proxy Statement.
2 Source: Amazon Crude, New York Times, Shareholder Resolution to Report on Ecuador, Texaco Sites Inspected by date, United States District Court.