75. Regarding the above, the representatives argued that, in view of the Sarayaku’s refusal to accept the CGC’s oil exploration activities, in 2001, the CGC hired Daymi Service S.A., a team of sociologists and anthropologists dedicated to planning community relations. According to Sarayaku members, its strategy consisted of dividing the communities, manipulating the leaders, and carrying out defamation campaigns to discredit the leaders and organizations. The representatives argued that, as part of that strategy, the company established a so-called “Community of Independents of Sarayaku” in order to reach an agreement and justify its entry into the territory.84 The State did not dispute this. 76. As for Ecuadorian domestic legislation, the Promotion of Investment and Citizen Participation Act was adopted on August 18, 2000.85 The law establishes, inter alia, that: Prior to the execution of plans and programs for exploration or exploitation of hydrocarbons on lands allocated by the Ecuadorian State to indigenous communities or black or Afro-Ecuadorian people, which could affect the environment, PETROECUADOR, its subsidiaries or the contractors or associates must consult with the ethnic groups or communities. To that end, they shall hold meetings or public hearings in order to present and explain their plans and the purpose of their activities, the terms under which these will be carried out, the timeframe and potential direct or indirect environmental impacts that could be caused to the community or its inhabitants. All records, agreements or arrangements resulting from the consultations on the plans and programs for exploration and exploitation shall be recorded in writing by means of a public instrument or record.” 77. In addition, on February 13, 2001, the Regulations to substitute the Environmental Regulations for Hydrocarbon Operations in Ecuador (Executive Decree 1215) were promulgated. 86 Article 9 of these Regulations establishes that: Before initiating any call for bids for a State oil contract, the agency responsible for carrying out the oil tendering process shall apply the consultation procedures established in the Regulations issued for that purpose, in coordination with the Ministry of Energy and Mines and the Ministry of the Environment. Prior to the implementation of plans and programs for exploration and exploitation of hydrocarbons, those subject to control must inform the communities within the areas directly affected by the projects, and must hear their suggestions and opinions. All records, agreements and arrangements reached as a result of these information meetings shall be documented, by means of a public instrument to be sent to the Under-Secretary for Environmental Protection. The agreements shall be drafted according to the principles of compensation and reparation for possible environmental impacts and damage to property that the execution of fuel production projects might cause to the population. Compensation shall be calculated on the basis of the official tables in force. When such zones or areas are located within the National Natural Resource Endowment, the provisions of the management plan for that area shall be observed, in accordance with the Conservation of Natural Areas, Wildlife and Forestry Law and its Regulations, approved by the Ministry of the Environment.” 78. Apart from this, on July 30, 2001, the Ecuadorian Ministry of Defense signed a Cooperation Agreement on Military Security with the oil companies operating in the country, in which the State undertook to “ensure the safety of oil facilities, and of the persons who work in them.”87 79. On March 26, 2002, the CGC submitted documentation to the Ministry updating the Environmental Management Plan and the Monitoring Plan for the 2D seismic survey in Block 23.88 On April 17, 2002, the Ministry requested information in order to verify that the survey to be implemented corresponded to the same areas and characteristics as the seismic survey approved on 84 Cf. Pleadings and motions brief, tome 1, folios 283. See also affidavit of José María Gualinga Montalvo of June 27, 2011 (evidence file, tome 19, folio 10021) and testimony rendered by Marlon Santi before the Court during the public hearing held on July 6, 2011. 85 Cf. Promotion of Investment and Citizen Participation Act, Decree Law 2000-1, Registration number 144 of August 18, 2000 (evidence file, tome 11, folio 6541). 86 Cf. Executive Decree 1215, Official Record 265 of February 13, 2001 87 Cf. Clause Two of the Purpose of the Military Cooperation Agreement. Cooperation Agreement on Military Security between the Ministry of National Defense and the oil companies operating in Ecuador, signed in Quito on July 30, 2001 (evidence file, tome 8, folio 4365) 88 Cf. Report of the Ministry of Energy and Mines on activities carried out in Block 23 (evidence file, tome 8, folio 4779); Note No. 155 of the Ministry of Energy and Mines (evidence file, tome 8, folio 4798 and ff.). 22

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