Lawsuits Target Energy Giants: Voluntary Principles

By Jennifer Huang | World Power I: Business & Law

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Opposing sides of the lawsuits paint radically different pictures. Depending on who you listen to, the energy companies are either corrupt, ruthless and complicit in human rights abuses, or hard-working, well-meaning investors who were ignorant of the crimes or powerless to stop them. Though plaintiffs will probably wait for years for the final rulings, many observers see the cases as damning. “This case would not have gotten this far unless there were all sorts of evidence — frankly from people who were involved militarily — who subsequently came to people like Oronto [Douglas] and said, ‘I need to tell my story,'” said Michael Watts, director of the Institute of International Studies at the University of California, Berkeley. “These are not corporations being sued because they happen to be doing business in a bad place,” said Steinhardt.

Lawsuits Target Energy Giants: Myanmar (Burma) — Doe v. Unocal

By Jennifer Huang | World Power I: Business & Law

Page 8 of 11

The Doe v. Unocal case managed to get a step further than Aguinda in August 2001, when Judge Victoria Chaney ruled that the case could be heard in California state court, after its dismissal in federal court. The case, originally brought before Federal Judge Ronald Lew in Southern California by 15 unnamed villagers from Myanmar’s Tenasserim region, asserts Unocal’s complicity with murder, torture, forced labor and forced relocation during work on its Yadana pipeline project through the area. Soldiers hired by the enterprise — a joint venture between Unocal, the French company Total and Myanmar’s SLORC (State Law and Order Restoration Council) government — allegedly committed the acts. Among other arguments, Unocal reasoned that the pressed labor could be considered “mandatory public service” akin to a Florida statute requiring six days of work or $3 from every man circa 1916. The court denied that argument, writing that the Florida law “is hardly analogous to the nature of the forced labor utilized by SLORC in recent years.”

Lawsuits Target Energy Giants: The Case against ExxonMobil

By Jennifer Huang | World Power I: Business & Law

Page 5 of 11

In June 2001, the International Labor Rights Fund (ILRF) did what Jafar Siddiq Hamzah did not live to do: it filed a lawsuit in the Washington, D.C., U.S. District Court against ExxonMobil Corporation and PT Arun for hiring Indonesian military forces responsible for torture, crimes against humanity, sexual violence, kidnapping, murder and genocide in Aceh. Lawyers also claim that ExxonMobil provided hired troops with facilities and equipment, including excavators that were used to dig mass graves, and buildings where illegally detained prisoners were tortured. The suit requests compensatory and punitive damages, as well as an injunction to curtail ExxonMobil’s use of Indonesian security forces to protect their operations. The plaintiffs, eleven villagers from Aceh, are listed as John and Jane Does due to fears for their safety. On its website, ExxonMobil denies any responsibility for the actions of the military: “We are disturbed by any suggestion that ExxonMobil or its affiliate companies are in any way involved with alleged human rights abuses by security forces in Aceh.

Lawsuits Target Energy Giants: Rebellion & Referendum

By Jennifer Huang | World Power I: Business & Law

Page 3 of 11

Aceh, at the northern end of Sumatra, is a lush country of farmers, fishermen, tropical rainforest and endangered orangutan. Until the 1970s, rubber and coffee plantations dominated the economy, along with rice and tobacco, and timber products like paper pulp and palm oil. All that changed with the discovery in 1971 of even greater riches beneath the fertile soil — natural gas and oil. With facilities near the northern towns of Lhokseumawe and Lhoksukon, Acehnese operations made Indonesia the world’s leading exporter of liquid natural gas (LNG). Bloomberg news reported in December 12, 2001, that the Indonesian government in Jakarta brings in an estimated US $1.7 billion from the operations in Aceh.