perspective, changing from a ‘myth’ into a national strategic area.” According to the parties, during the 1970s, Ecuador experienced rapid economic growth, a significant surge in exports,60 and a strong process of modernization of the infrastructure of its main cities. 59. As indicated by the State, at that particular time, steps were taken to secure complete control over the country’s oil resources from a nationalist perspective and under a philosophy of “national security,” an economic-political concept that defined the oil sector as a strategic area. At that time, “the environmental, ethnic, and cultural variables were not an issue for political debate.” According to the representatives, oil exploitation had resulted in large-scale environmental costs which included, among other matters, spills of large amounts of crude oil, contamination of water sources due to waste from hydrocarbon production, and the burning of significant amounts of natural gas in the open air. Moreover, this environmental pollution had generated health risks for the inhabitants of the oil producing areas of eastern Ecuador. 61 60. Currently, among the Latin American countries, Ecuador ranks fifth in terms of oil production and fourth in oil exports. According to figures from Ecuador’s Ministry of Energy and Mines, in 2005 sales of crude oil accounted for around a quarter of the country’s gross domestic product (GDP) and oil revenues represented nearly 40% of the national budget.62 C. Award of territories to the Kichwa Peoples of Sarayaku and the Communities of the Bobonaza River in May 1992 61. On May 12, 1992, the State, through the Institute for Agrarian Reform and Settlement (IERAC), awarded a single undivided parcel of land in the province of Pastaza, identified in the title as Block 9, and covering a surface area of 222,094 hectares63 or 264,625 hectares,64 to the communities of the Bobonaza River, 65 which includes the Kichwa People of Sarayaku. 66 Within this Block 9, the Sarayaku territory consists of 135,000 hectares. And, on June 10, 2004, the Executive Secretariat of CEDENPE (a State institution attached to the Presidency of the Republic with competence for indigenous matters) registered the Statute of the Kichwa Original People of Sarayaku (Agreement No. 24), Article 47(b) of which establishes “[t]he territory of the Kichwa People of Sarayaku and its natural resources on [the] surface of Block 9, cohabited with the Kichwa 60 Cf. Alberto Acosta, “Preparémonos para lo que se avecina. En el Oriente es un Mito”, 1st Edition, Abda Yala/CEP, Quito, 2003 (evidence file, tome 1, folio 392) 61 Cf. Miguel San Sebastian and Anna-Karin Hurtig, “Oil exploitation in the Amazon basin of Ecuador: a public health emergency” (2004) 15: 3 Rev Panam Salud Publica/Pan Am Journal of Public Health (evidence file, tome 8, folios 4326 and ff.). For example, a 2003 study prepared by FLACSO and PETROECUADOR mentions three investigations on the effects of oil exploration and exploitation in Ecuador. According to the study, the worst socio-environmental impacts of oil activities in Ecuador occurred during the so-called “Texaco era” (1967-1992). Aída Arteaga, “Indicadores de gestión e Impactos de la actividad petrolera en la Región Amazónica Ecuatoriana Management,” in Petróleo y desarrollo sostenible en Ecuador, 1ª Edition, FLACSO – PETROECUADOR, Quito, 2003 (evidence file, tome 11, folio 6904). 62 4354). Cf. Empresa Petrolera de Ecuador (PETROECUADOR), Informe estadístico 1972-2006 (evidence file, tome 8, folio 63 Cf. Notary’s certificate dated May 26, 1992 of the registration of the award of May 12, 1992 (evidence file, tome 14, folios 8621-8623). 64 Cf. evidence file, tome 14, folio 8631. According to the State, on May 11, 2005, “a public document was drawn up as a record of the Open Mortgage on the property granted to the Communities of Rio Bobonaza through the award made by IERAC on May 12, 1992, registered on May 26 that year, corresponding to an area of two hundred and seventy-four thousand, six hundred and twenty-five hectares. This deed was drawn up between the Tayac Apu Organization of the Ade Territory of the Original Nation of the Kichwa People of Sarayaku (Tayjasaruta) and the Institute for the Eco-Development of the Amazonian Region (ECORAE) in order to guarantee the execution of the project for the extension of the landing strip of the Community of Sarayaku.” 65 Cf. According to the State, the communities of the Rio Bobonaza include: Sarayacu, Sarayaquillo, Cali Cali, Shigua Cucha, Chontayacu, Niwa Cucha, Palanda, Teresa Mama, Ramizuna, Tahuay Nambi, Palizada, Mimo, Tishin, Mangaurco, Hoberas, Santo Tomas, Puca Urcu, Llz Pungo, Yanda Playa, Chiyun, Playa, Shawindia, Upa, Lulun, Huagra, Cucha, Tuntun Lan, Llanchamacocha, Alto Corrientes, Papaya, Cabahuari and Masaranu. 66 Cf. Property Register of Puyo, Pastaza. Award of lands to the communities of Río Bobonaza, Puyo, May 26, 1992 (evidence file, tome 14, folios 8616 and ff.; evidence file, tome 8, folio 4374 and ff., and tome 10, folio 6005 and ff.). 18