Compañía General de Combustibles S.A. (CGC) (hereinafter “the CGC”) and Petrolera Argentina San Jorge S.A.70 65. The territory granted for that purpose in the contract with the CGC covered an area of 200,000 hectares, inhabited by several indigenous associations, communities and peoples: Sarayaku, Jatun Molino, Pacayaku, Canelos, Shaimi and Uyuimi. Sarayaku is the largest of these indigenous settlements in terms of population and land area, since its ancestral and legal territory accounted for around 65% of the territory included in “Block 23.” 66. According to the terms of the contract between the State oil company PETROECUADOR and the CGC, the seismic survey phase would last four years - with the possibility of a two-year extension – from the date the contract came into force; in other words, once the Ministry of Energy and Mines had approved the Environmental Impact Assessment. Furthermore, it was stipulated that the exploitation phase would last for 20 years with the possibility of an extension. 67. The contractor's obligations included: preparing an Environmental Impact Assessment (hereinafter also “EIA”) and making every effort to preserve the existing ecological balance in the exploration area of the block awarded. It was established that the Under-Secretariat for Environmental Protection of the Ministry of Energy and Mines, through the National Environmental Protection Directorate, would be responsible for relations with the Sarayaku People. Also included in the contract was the obligation to obtain from third parties any permit, right of way or easement that might be necessary to reach the area of the contract or to move within it in order to carry out activities. 68. The contractor was required to submit an Environmental Impact Assessment for the exploration phase, and also an Environmental Management Plan for the exploitation period within the first six months. The EIA was to contain, among other elements, a description of the natural resources, especially the forests, wild flora and fauna, as well as of the social, economic and cultural aspects of the populations or communities settled in the area affected by the contract.71 69. The CGC, in partnership with the Petrolera Argentina San Jorge (later “Chevron-Burlington”), signed a contract with the consulting firm Walsh Environmental Scientists and Engineers, Inc. to make an environmental impact assessment for the seismic survey, as required in the partnership contract. The assessment was completed in May 199772 and approved by the Ministry of Energy and Mines (MEM) on August 26 that year.73 Among other matters, the EIA states that “[i]t is necessary to point out that, except for an area where we were denied access, most of physiographic regions and types of forests identified by satellite imagery were visited during the field trip.”74 According to the Ministry of Energy and Mines, the environmental impact assessment was never executed; in other words it was not put in practice.75 70. On May 15, 1998, Ecuador ratified Convention No. 169 concerning Indigenous and Tribal Peoples in Independent Countries of the International Labour Organization (ILO), (hereinafter also “ILO Convention No. 169.” The Convention entered into force for Ecuador on May 15, 1999. 71. Also, on June 5, 1998, Ecuador adopted the 1998 Constitution, which recognized the collective rights of the indigenous and Afro-Ecuadorian Peoples.76 70 Cf. Partnership contract between PETROECUADOR and CGC. 71 Cf. Clause 5.1.21.6 of the partnership contract between PETROECUADOR and CGC. 72 Cf. Environmental Impact Assessment for seismic surveying activities, Block 23, Ecuador. Final Report, May 1997 (evidence file, tome 8, folio 4463 and ff.; evidence file tome 10, folio 6021 and ff.). 73 Cf. Note No. 155 of the Ministry of Energy and Mines (evidence file, tome 8, folio 4797 and ff.); Report of the Ministry of Energy and Mines on the activities carried out in Block 23 (evidence file, tome 8, folio 4778). 74 Cf. Environmental Impact Assessment for seismic surveying activities, Block 23. 75 Cf. Note No. 155 of the Ministry of Energy and Mines on the activities carried out in Block 23. 76 Cf. Constitution of Ecuador, Chapter 5, Collective Rights, First Section, Rights of indigenous and black or AfroEcuadorian Peoples, Articles 83 to 85, (evidence file, tome 8, folio 4079). The 1998 Constitution contained provisions that protected the rights of indigenous populations, who were to be consulted regarding plans or programs for the exploration and 20

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