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PCA CASE NO. 2009-23
IN THE MATTER OF AN ARBITRATION BEFORE A TRIBUNAL CONSTITUTED IN
ACCORDANCE WITH THE TREATY BETWEEN THE UNITED STATES OF AMERICA
AND THE REPUBLIC OF ECUADOR CONCERNING THE ENCOURAGEMENT AND
RECIPROCAL PROTECTION OF INVESTMENTS, SIGNED 27 AUGUST 1993
(THE “TREATY”) AND THE UNCITRAL ARBITRATION RULES 1976
BETWEEN: -
1. CHEVRON CORPORATION (U.S.A.)
2. TEXACO PETROLEUM COMPANY (U.S.A.)
The Claimants
- and -
THE REPUBLIC OF ECUADOR
The Respondent
__________________________________________________________
Procedural Order No. 23
10 February 2014
__________________________________________________________
The Arbitration Tribunal:
Dr. Horacio A. Grigera Naón;
Professor Vaughan Lowe, QC;
V.V. Veeder QC (President)
PCA Case No. 2009-23
Procedural Order No. 23
Page 2 of 5
1. Introduction: Further to the discussions between the Parties and the Tribunal at the
Procedural Meeting held in Washington, DC, USA on 20 and 21 January 2014 and
although other decisions by the Tribunal on various disputed issues remain pending, the
Tribunal here confirms in this order the new procedural calendar for this arbitration’s
future proceedings arising from that Procedural Meeting.
(The calendar below includes dates which have now past, but which are nevertheless set
out for the sake of clarity; no reference is made to the Parties’ correspondence subsequent
to 21 January 2014 – which shall be addressed in one or more subsequent orders; and the
transcript references are made to the verbatim transcript of the Procedural Meeting.)
2. Three Tracks: These further proceedings in this arbitration shall be divided into three
tracks: Track 1b, Track 2 and Track 3.
3. Track 1(b): This next track shall address the following issues:1
3.1. Those issues identified in paragraph 93 of the Tribunal’s First Partial Award on
Track 1; namely:
“(i) whether or not the Respondent has breached Article 5 of the 1995 Settlement
Agreement and Article IV of the Final Release; and, if so, precisely what remedies
are available to Chevron and/or TexPet against the Respondent in respect of any such
breach (i.e. damages, declaratory relief or specific performance); (ii) whether or not
the claims pleaded by the Lago Agrio Plaintiffs rest upon individual rights, as
distinct from “collective” or “diffuse” rights (in whole or in part) and whether or not
those claims are materially similar to the claims made by the Aguinda Plaintiffs in
New York; and (iii) the specific effect of any changes in Ecuadorian law taking place
after the execution of the 1995 Settlement Agreement and the 1998 Final Release,
including the interpretation and application of the 1999 Environmental Management
Act”;
3.2. Those additional issues identified in paragraph 110 of the Tribunal’s First Partial
Award.
(The Tribunal understands from the Parries that no outstanding issue arises from
paragraph 109 of the First Partial Award); and
1
Procedural Meeting, Transcript, 21 January 2014, pp. 249:1-255:15.
PCA Case No. 2009-23
Procedural Order No. 23
Page 3 of 5
3.3. Any effect of the Cassation Decision of the National Court of Justice of Ecuador of
12 November 2013 on the Tribunal’s First Partial Award.
4. Track 2: The following track shall address the following issues:2
4.1. All issues arising under the Treaty (including any issues of customary international
law) relating to the conduct of the Lago Agrio Litigation, the Judgment, the
Ecuadorian appellate process and any other relevant recourse within the Ecuadorian
legal system, as well as all non-monetary remedies which might be ordered by the
Tribunal in the event of any breach of the Treaty by the Respondent;
4.2. Any effect of the Cassation Decision of the National Court of Justice of Ecuador of
12 November 2013 on the Claimants’ claims for breach of the Treaty and the
Respondent’s defences thereto; and
4.3. The existence of any environmental harm claimed by the Respondent to have been
caused by the Claimants and its effect (if any) on the Claimants’ claims, the
Respondent’s defences thereto and any remedy that may be ordered by the Tribunal.
5. Track 3: The last track shall address the following issues (subject to any earlier decisions
made by the Tribunal in Tracks 1, 1b and 2):3
5.1. All extant issues between the Parties regarding the determination of quantum, such
issues to include (insofar as may then be relevant):
(i) any monetary compensation claimed by the Claimants as compensation for
any breach of the Treaty;
(ii) the quantification of any environmental harm claimed by the Respondent to
have been caused by the Claimants; and
(iii) all issues arising from the Claimants’ claim for compensation under the
Fourth Interim Award (the so-called “Show Cause Procedure”);
5.2. The Respondent’s application for reconsideration of the First, Second, and Fourth
Interim Awards; and
2
Procedural Meeting, Transcript, 21 January 2014, pp. 256:6-263:6.
3
Procedural Meeting, Transcript, 21 January 2014, pp. 265:11-266:23.
PCA Case No. 2009-23
Procedural Order No. 23
Page 4 of 5
5.3. All extant issues and any other relevant issues not resolved by Tracks 1, 1b and 2,
including any further issues which may arise and do not fall within the scope of
Tracks 1b and 2 as described above.
6. New Procedural Calendar: The new procedural calendar from 21 January 2014 onwards
to May 2015 shall be as follows (all such dates being “no later than” deadlines):
- Monday, 27 January 2014: The Respondent’s document production application, in
the form of a Redfern-Park Schedule (the Claimants are expected immediately to
begin producing documents responsive to those requests to which they do not object);
- Monday, 27 January 2014: The Claimants’ draft protocol for the inspection of Judge
Zambrano’s Hard Drives;
- Tuesday, 28 January 2014: The Parties’ respective draft proposed orders on
exchange of experts documents and data;
- Friday, 31 January 2014: The Claimants’ Further Supplemental Memorial on Track
1b;
- Friday, 31 January 2014: The Respondent’s draft protocol for a site visit;
- Monday, 3 February 2014: The Claimants’ response to the Respondent’s document
production application;
- Monday, 3 February 2014: The Respondent’s comments on the Claimants’ draft
protocol for the inspection of Judge Zambrano’s Hard Drives;
- Friday, 7 February 2014: The Claimants’ comments on the Respondent’s draft
protocol for a site visit;
- Monday, 10 February 2014: The Respondent’s reply to the Claimants’ response on
document production;
- Friday, 21 March 2014: The Respondent’s Supplemental Counter-Memorial on
Track 1b;
- Wednesday, 26 March 2014, 18:00 (The Hague Time): Procedural Telephone
Conference on Track 1b;
- Monday-Wednesday, 28-30 April 2014 (Washington, DC, USA): Hearing on
Track 1b;
PCA Case No. 2009-23
Procedural Order No. 23
Page 5 of 5
- Friday, 9 May 2014: The Claimants’ Supplemental Memorial on Track 2, (which
shall also include an explanation of the relevance and materiality of those “Pre-
Hearing Exhibits” which were provisionally admitted into evidence by the Tribunal at
Procedural Meeting on 20-21 January 2014);
- Friday, 7 November 2014: The Respondent’s Supplemental Counter-Memorial on
Track 2;
- Saturday, 15 November to Sunday, 23 November 2014: Dates reserved for a
possible site visit (subject to further order);
- Wednesday, 14 January 2015: The Claimants’ Supplemental Reply Memorial on
Track 2;
- Monday, 16 March 2015: The Respondent’s Supplemental Rejoinder Memorial on
Track 2;
- Friday, 27 March 2015, 18:00 (The Hague Time): Procedural Telephone
Conference on Track 2;
- Monday, 20 April to 8 May 2015 (Washington, DC, USA): Hearing on Track II;
- Saturday, 9 May to Sunday, 17 May 2015: Alternative dates reserved for a possible
site visit (subject to further order);
7. The Tribunal will in due course fix a timetable from May 2015 onwards for Track 3, in
further consultation with the Parties; and the Tribunal reserves the right at any time to
modify the above calendar and this order if necessary.
PLACE OF ARBITRATION: THE HAGUE, THE NETHERLANDS
DATE: 10 FEBRUARY 2014
THE TRIBUNAL:
Dr. Horacio A. Grigera Naón
Professor Vaughan Lowe QC
V.V. Veeder QC (President)

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Ex. 97 2014 02-10 procedural order no 23

  • 1. PCA CASE NO. 2009-23 IN THE MATTER OF AN ARBITRATION BEFORE A TRIBUNAL CONSTITUTED IN ACCORDANCE WITH THE TREATY BETWEEN THE UNITED STATES OF AMERICA AND THE REPUBLIC OF ECUADOR CONCERNING THE ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS, SIGNED 27 AUGUST 1993 (THE “TREATY”) AND THE UNCITRAL ARBITRATION RULES 1976 BETWEEN: - 1. CHEVRON CORPORATION (U.S.A.) 2. TEXACO PETROLEUM COMPANY (U.S.A.) The Claimants - and - THE REPUBLIC OF ECUADOR The Respondent __________________________________________________________ Procedural Order No. 23 10 February 2014 __________________________________________________________ The Arbitration Tribunal: Dr. Horacio A. Grigera Naón; Professor Vaughan Lowe, QC; V.V. Veeder QC (President)
  • 2. PCA Case No. 2009-23 Procedural Order No. 23 Page 2 of 5 1. Introduction: Further to the discussions between the Parties and the Tribunal at the Procedural Meeting held in Washington, DC, USA on 20 and 21 January 2014 and although other decisions by the Tribunal on various disputed issues remain pending, the Tribunal here confirms in this order the new procedural calendar for this arbitration’s future proceedings arising from that Procedural Meeting. (The calendar below includes dates which have now past, but which are nevertheless set out for the sake of clarity; no reference is made to the Parties’ correspondence subsequent to 21 January 2014 – which shall be addressed in one or more subsequent orders; and the transcript references are made to the verbatim transcript of the Procedural Meeting.) 2. Three Tracks: These further proceedings in this arbitration shall be divided into three tracks: Track 1b, Track 2 and Track 3. 3. Track 1(b): This next track shall address the following issues:1 3.1. Those issues identified in paragraph 93 of the Tribunal’s First Partial Award on Track 1; namely: “(i) whether or not the Respondent has breached Article 5 of the 1995 Settlement Agreement and Article IV of the Final Release; and, if so, precisely what remedies are available to Chevron and/or TexPet against the Respondent in respect of any such breach (i.e. damages, declaratory relief or specific performance); (ii) whether or not the claims pleaded by the Lago Agrio Plaintiffs rest upon individual rights, as distinct from “collective” or “diffuse” rights (in whole or in part) and whether or not those claims are materially similar to the claims made by the Aguinda Plaintiffs in New York; and (iii) the specific effect of any changes in Ecuadorian law taking place after the execution of the 1995 Settlement Agreement and the 1998 Final Release, including the interpretation and application of the 1999 Environmental Management Act”; 3.2. Those additional issues identified in paragraph 110 of the Tribunal’s First Partial Award. (The Tribunal understands from the Parries that no outstanding issue arises from paragraph 109 of the First Partial Award); and 1 Procedural Meeting, Transcript, 21 January 2014, pp. 249:1-255:15.
  • 3. PCA Case No. 2009-23 Procedural Order No. 23 Page 3 of 5 3.3. Any effect of the Cassation Decision of the National Court of Justice of Ecuador of 12 November 2013 on the Tribunal’s First Partial Award. 4. Track 2: The following track shall address the following issues:2 4.1. All issues arising under the Treaty (including any issues of customary international law) relating to the conduct of the Lago Agrio Litigation, the Judgment, the Ecuadorian appellate process and any other relevant recourse within the Ecuadorian legal system, as well as all non-monetary remedies which might be ordered by the Tribunal in the event of any breach of the Treaty by the Respondent; 4.2. Any effect of the Cassation Decision of the National Court of Justice of Ecuador of 12 November 2013 on the Claimants’ claims for breach of the Treaty and the Respondent’s defences thereto; and 4.3. The existence of any environmental harm claimed by the Respondent to have been caused by the Claimants and its effect (if any) on the Claimants’ claims, the Respondent’s defences thereto and any remedy that may be ordered by the Tribunal. 5. Track 3: The last track shall address the following issues (subject to any earlier decisions made by the Tribunal in Tracks 1, 1b and 2):3 5.1. All extant issues between the Parties regarding the determination of quantum, such issues to include (insofar as may then be relevant): (i) any monetary compensation claimed by the Claimants as compensation for any breach of the Treaty; (ii) the quantification of any environmental harm claimed by the Respondent to have been caused by the Claimants; and (iii) all issues arising from the Claimants’ claim for compensation under the Fourth Interim Award (the so-called “Show Cause Procedure”); 5.2. The Respondent’s application for reconsideration of the First, Second, and Fourth Interim Awards; and 2 Procedural Meeting, Transcript, 21 January 2014, pp. 256:6-263:6. 3 Procedural Meeting, Transcript, 21 January 2014, pp. 265:11-266:23.
  • 4. PCA Case No. 2009-23 Procedural Order No. 23 Page 4 of 5 5.3. All extant issues and any other relevant issues not resolved by Tracks 1, 1b and 2, including any further issues which may arise and do not fall within the scope of Tracks 1b and 2 as described above. 6. New Procedural Calendar: The new procedural calendar from 21 January 2014 onwards to May 2015 shall be as follows (all such dates being “no later than” deadlines): - Monday, 27 January 2014: The Respondent’s document production application, in the form of a Redfern-Park Schedule (the Claimants are expected immediately to begin producing documents responsive to those requests to which they do not object); - Monday, 27 January 2014: The Claimants’ draft protocol for the inspection of Judge Zambrano’s Hard Drives; - Tuesday, 28 January 2014: The Parties’ respective draft proposed orders on exchange of experts documents and data; - Friday, 31 January 2014: The Claimants’ Further Supplemental Memorial on Track 1b; - Friday, 31 January 2014: The Respondent’s draft protocol for a site visit; - Monday, 3 February 2014: The Claimants’ response to the Respondent’s document production application; - Monday, 3 February 2014: The Respondent’s comments on the Claimants’ draft protocol for the inspection of Judge Zambrano’s Hard Drives; - Friday, 7 February 2014: The Claimants’ comments on the Respondent’s draft protocol for a site visit; - Monday, 10 February 2014: The Respondent’s reply to the Claimants’ response on document production; - Friday, 21 March 2014: The Respondent’s Supplemental Counter-Memorial on Track 1b; - Wednesday, 26 March 2014, 18:00 (The Hague Time): Procedural Telephone Conference on Track 1b; - Monday-Wednesday, 28-30 April 2014 (Washington, DC, USA): Hearing on Track 1b;
  • 5. PCA Case No. 2009-23 Procedural Order No. 23 Page 5 of 5 - Friday, 9 May 2014: The Claimants’ Supplemental Memorial on Track 2, (which shall also include an explanation of the relevance and materiality of those “Pre- Hearing Exhibits” which were provisionally admitted into evidence by the Tribunal at Procedural Meeting on 20-21 January 2014); - Friday, 7 November 2014: The Respondent’s Supplemental Counter-Memorial on Track 2; - Saturday, 15 November to Sunday, 23 November 2014: Dates reserved for a possible site visit (subject to further order); - Wednesday, 14 January 2015: The Claimants’ Supplemental Reply Memorial on Track 2; - Monday, 16 March 2015: The Respondent’s Supplemental Rejoinder Memorial on Track 2; - Friday, 27 March 2015, 18:00 (The Hague Time): Procedural Telephone Conference on Track 2; - Monday, 20 April to 8 May 2015 (Washington, DC, USA): Hearing on Track II; - Saturday, 9 May to Sunday, 17 May 2015: Alternative dates reserved for a possible site visit (subject to further order); 7. The Tribunal will in due course fix a timetable from May 2015 onwards for Track 3, in further consultation with the Parties; and the Tribunal reserves the right at any time to modify the above calendar and this order if necessary. PLACE OF ARBITRATION: THE HAGUE, THE NETHERLANDS DATE: 10 FEBRUARY 2014 THE TRIBUNAL: Dr. Horacio A. Grigera Naón Professor Vaughan Lowe QC V.V. Veeder QC (President)