Interviews Available Onsite Before and After the AGM
LOS ANGELES, May 1, 2009 – Today, a delegation of concerned shareholders, environmental and human rights activists, lawyers and celebrities will once again address Occidental Petroleum’s (OXY) annual stockholders’ meeting to urge CEO Ray Irani and the Board of Directors to rectify the company’s legacy of harm in the Peruvian Amazon before more Achuar people fall victim to widespread oil contamination.
Among advocates and proxy-holders who will speak at the meeting at the Fairmont Hotel in Santa Monica will be Lily la Torre, lawyer for the Achuar people in Peru; Bill Powers, engineer with E-tech International; Patrick Doherty, Director of Corporate Responsibility for New York City Common Retirement Fund and actress Q’orianka Kilcher (The New World).
Occidental Petroleum’s oil operations in the Peruvian Amazon have caused massive environmental devastation, and led to a severe public health crisis among the Achuar people.
Between 1971 and 2000, Oxy drilled more than 150 wells and built nearly 300 miles of roads in the formerly intact Amazon rainforest homeland of the Achuar.
For every barrel of oil produced in Peru, Oxy dumped eight barrels of toxic wastewater into the Amazon. Over three decades, the company discharged an estimated nine billion barrels of toxic effluent directly into rivers and streams used by the Achuar for drinking, bathing and food production. Oxy’s operations also resulted in numerous crude oil spills, many of which were never cleaned up. The Corrientes River, a main source of drinking water for over 6,000 Achuar, was once covered from bank to bank in oil so thick their canoes would become mired in the sludge making rowing nearly impossible.
“We ask Occidental executives to open their hearts and to recognize the gravity of the health and humanitarian crisis facing the Achuar people, and to rectify the great harm and injustice the company has caused,” said Lily La Torre, Peruvian lawyer for the Achuar.
Oxy is being asked to take full responsibility for cleaning up the environmental disaster it left behind when it departed after 30 years. Oxy faces a class action lawsuit in the U.S. brought against it in 2007 by Achuar plaintiffs. The case is currently in the appeals process. The plaintiffs are also considering taking legal action in Peruvian courts in the event the appeals court affirms that the case should be heard in Peru.
“Oxy shareholders should be concerned about the potential massive liability this case represents for the company, both in terms of financial as well as reputational risk,” said Atossa Soltani, Executive Director of Amazon Watch. “If in doubt, Oxy should consider the 15-year legal battle Chevron has faced over similar legacy issues in Ecuador, where it faces a $27 billion cleanup bill.”
The New York City Common Retirement Fund, which holds 2,772,777 shares in Oxy representing an estimated $151 million, has filed a resolution that raises concerns about the company’s handling of the Peru disaster. Although generally stockholder resolutions are not expected to pass, they are effective tools for bringing the concerns of ever more socially conscious institutional investors to management.
“Oxy simply chose to cut corners and use technology long outlawed in the US. The company spent mere pennies per barrel for its clean up liabilities when it sold the project to the current operator, Pluspetrol,” says Bill Powers, an independent environmental remediation expert with E-Tech International who has repeatedly visited the region to conduct analysis of the contamination. Powers plans question the Oxy’s Board and Management on their legacy policy.
Also expected to address CEO Irani, will be Actress Q’orianka Kilcher who is of Peruvian indigenous descent and has visited Achuar communities and witnessed the pollution first hand and actor Benjamin Bratt, who is also of Peruvian indigenous ancestry. Amazon Watch released a short video today containing powerful footage of the contamination and testimonies from affected communities. The video, which is narrated by actress Daryl Hannah and contains additional background information, is available at www.amazonwatch.org .
