Friday, February 20, 2009

Big Oil Sues Impoverished Villagers


There's been some press on this issue, although for whatever reason, I keep seeing the press that is concerned about the Alien Tort Claims Act.

First, the Chevron-Nigeria story. In short, Chevron, like many oil companies, drills in oil-rich areas of Africa. Chevron has one such off-shore oil platform in the Niger Delta, that has caused significant concern over the past 10 years. Basically, as you would expect, Chevron has kind of ravaged the area around its outpost and the local villagers are annoyed. It's a story that plays out all over Africa. Normally, the locals are shut up by officials of a corrupt government that is either directly getting a kick-back or is economically beholden to the foreign entity for its survival. This situation played out a little differently. Nigeria has maintained strong tribal ties and the local leader engaged in negotiations with Chevron Nigeria. Meanwhile, Chevron flies in Nigerian police on its helicopters, has them attack the protesters, two of whom are killed.

Normally, that would be the story. It might end up on a blog, or part of a rant by a liberal somewhere, but people wouldn't really be talking about it. Then the Nigerians did something unbelievably cool. They sued Chevron, in the United States.

Enter the Alien Tort Claims Act. As a general rule, someone can't just enter the U.S. and sue a U.S. citizen for something done abroad. The theoretical problem is that, as a general rule (there are certain exceptions), when you're outside the U.S., your actions aren't subject to U.S. law. It makes a lot of sense because life is just very different in different countries. But in 1789, law-makers decided it made sense to provide for state-side enforcement of international law. It was essentially dormant for a long time and had a sudden resurgence in the last 15-30 years. That's why everyone's talking about it. There were actually several bases for the claim, but this is the one everyone keeps talking about.

They lost in a recent jury verdict and are now appealing.

What really hits you, though, is in the very simple article that breaks it down to basics: "Chevron, which reported a record $23.93 billion profit last year, is seeking to recover an assortment of litigation costs from 49 plaintiffs - the villagers - who were involved at any time in the decadelong civil case. The amount includes $190,000 for photocopies of documents and $264,000 for court transcripts, records show...it's doubtful Chevron will ever recover its $485,000 because, among other things, the villagers are poor. She said the people Chevron seeks to bill for the legal costs include a number of children as well as the family of a man who was killed on the oil platform."

Average income in Nigeria is around $300 a year.

And they want $190K for photocopies. In part, from the family of a man they had killed for standing on their property. As well as some children.

So when do we stop supporting this sort of thing and admit that people in poor countries are people just like us? I read this stuff and feel like we're in the colonial era. And I suppose for the first time I actually understand why the people in these countries feel this way about the United States. It's probably a bad idea to let things stay this way.