PGE’s Opposition to Lago Agrio Plaintiffs Motion to Attach to Commercial Cases award, Oct. 22, 2012

1. Robles 731 y Av. Amazonas – Quito, Ecuador – PBX: (593 2)-2 562 080
www.pge.gob.ec
CERT. MERRILL VER: JD
Attorney General’s Office
Ecuador
TO THE DEPUTY PRESIDENT OF THE PROVINCIAL COURT OF JUSTICE OF
SUCUMBIOS:
I, Attorney Marcos Arteaga Valenzuela, National Director of Legal Representation, Delegate of
the Attorney General, in accordance with Articles 2 and 6 of the Law Governing the Attorney
General’s Office and Articles 17 and 18 of its Functional Organic Regulations, in Summary
Verbal Proceeding No. 0002-2003-P-CPJS filed by María Aguinda et al. against Chevron
Corporation, appear before you and state:
On October 17, 2012, I received your Official Letter No. 200-P-CPJS-2012, to which you attach
the order you issued on October 15, 2012, at 4:53 p.m., in Summary Verbal Proceeding No.
0002-2003-P-CPJS, advising us that you have ordered “the attachment of US $96,355,369 of the
award against the Government of Ecuador in the arbitration proceeding brought by Chevron
and Texaco with the Republic of Ecuador, publicly known as the Chevron II Case.” The official
letter also orders the Attorney General to take the necessary actions and inform the Court of the
actions undertaken to ensure the attachment. In response, I would like to make the following
comments:
As a basic premise, it must be made clear that neither the Attorney General nor the State of
Ecuador is a party to the proceeding or has participated in Summary Verbal Proceeding No.
0002-2003-P-CPJS.
The order in question, issued by Dr. Wilfrido Erazo Araujo in his capacity as Deputy President of
the Provincial Court of Justice of Sucumbíos on October 15, 2012, at 4:53 p.m., in Summary
Verbal Proceeding No. 0002-2003-P-CPJS, orders the attachment of monies that, according to
the order, the Government of Ecuador “owes” Chevron Corporation by virtue of the arbitration
award issued in the arbitration proceeding known as “Chevron II.” That order erroneously
establishes that “the Government of Ecuador owes the judgment debtor” the amount of
$96,355,369 “as a result of an arbitration award.”
On August 31, 2011, the arbitration tribunal in case AA277, formed under the arbitration rules of
the U.N. Commission on Trade Law, issued its final award in the proceeding filed by Chevron
Corporation against the Republic of Ecuador and ordered the Ecuadorian State to pay
compensation equivalent to
[handwritten: 3] [initials]

2. Robles 731 y Av. Amazonas – Quito, Ecuador – PBX: (593 2)-2 562 080
www.pge.gob.ec
CERT. MERRILL VER: JD
Attorney General’s Office
Ecuador
$96,355,369.17, including interest. The Republic of Ecuador rejected the tribunal’s decision and
filed for judicial review of the award before the courts of The Hague, which was the seat of the
arbitration. On May 2, 2012, the District Court of The Hague issued a judgment to the effect that
there was no basis for annulling the award and, consequently, rejected Ecuador’s petitions. On
August 2, 2012, the Republic of Ecuador appealed the judgment issued by the District Court. The
appeal is pending resolution.
Moreover, the District Court of The Hague granted Ecuador measures against enforcement of the
Award and placed it on what is known as the “Grey List” of awards. This means that the Court
has taken into consideration the objections raised against enforcement and could, in the future,
invite the parties to present their arguments before it hands down a decision.
After Ecuador filed the appeal of the decision of the District Court of The Hague, on October 2,
2012, the Court affirmed the measures against enforcement of the Award in the case known as
“Chevron II.” Consequently, there is currently no debt or obligation that can be demanded in
favor of Chevron Corporation.
Moreover, on July 27, 2012, Chevron Corporation filed, with the Court of the District of
Colombia in the United States of America, a petition for recognition and enforcement of the
aforementioned award, in application of the New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards. The proceeding is pending and the Republic of
Ecuador has the right to challenge it.
Therefore, the order to attach $96,355,369 is premature since the Court of Appeals could reverse
the arbitration tribunal’s decision. Since Chevron’s right to obtain the respective compensation is
uncertain until the judicial proceeding has been resolved and is final, there is no demandable
obligation, so the attachment order cannot be enforced under the prescribed terms and conditions,
because to do so would be to recognize the right to collect mere expectations, which is not a right
under Article 7(6) of the Civil Code. To Guillermo Cabanellas, “Debt” is what the debtor in the
obligational relationship owes the creditor
[initials]
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[handwritten: 4]

3. Robles 731 y Av. Amazonas – Quito, Ecuador – PBX: (593 2)-2 562 080
www.pge.gob.ec
CERT. MERRILL VER: JD
Attorney General’s Office
Ecuador
thereof. In this case there is no obligation demandable of the Ecuadorian State in favor of
Chevron Corporation.
Further, the duties of the Attorney General are defined in Art. 237 of the Constitution of the
Republic and Art. 3 of the Law Governing the Attorney General’s Office. These are representing
the State in court and legal representation of the State and its institutions, as per the constitutional
rule quoted below:
“Art. 237.- In addition to the other duties established by law, the Attorney General shall be
responsible for the following:
1. Representation of the State in court.
2. Legal representation of the State and its institutions
3. To provide legal counsel to and answer legal questions from public-sector bodies and entities
concerning knowledge or application of the law, on those matters for which the Constitution or
the law does not grant this authority to some other authority or body.
4. To oversee, subject to the law, the acts and contracts signed by public-sector bodies and
entities.”
Consequently, the Attorney General is not responsible for “taking the necessary actions” with
respect to an attachment order, [or] enforcing judgments or decisions, in any court case, since, as
mentioned, those are not his duties.
Therefore, your order, transcribed in Official Letter No. 200-P-CPJS-2012, is inappropriate since
the Attorney General does not have the authority to comply with your order.
Regardless of the foregoing, I should note that with respect to section F(5) and (6) of the order
you issued on October 15, 2012, at 4:53 p.m., in Summary Verbal Proceeding No. 0002-2003-P-
CPJS, the attachment ordered deals with monies that cannot be attached.
In fact, under Article 1634 of the Civil Code and Article 441 of the Code of Civil Procedure, the
property that the Special Laws declare to not be subject to attachment cannot be attached. In this
respect, Article 170 of the Law Governing Planning and Public Finance provides:
[handwritten: 5] [initials]
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4. Robles 731 y Av. Amazonas – Quito, Ecuador – PBX: (593 2)-2 562 080
www.pge.gob.ec
CERT. MERRILL VER: JD
Attorney General’s Office
Ecuador
“Art. 170.- Judgments.- …The funds of the Sole Account of the Treasury are not subject to
attachment and may not be the object of any kind of court order to enforce compliance,
preventive measure, or precautionary measure.” (Emphasis added)
It is clear that the monies in the Sole Account of the Treasury are not subject to attachment.
Therefore, Your Honor, I ask that you revoke the order you issued on October 15, 2012, at 4:53
a.m., with respect to section F(5) and (6).
Please send notifications intended for me to judicial mailbox No. 08.
I attach a certified copy of the Personnel Action attesting to the capacity in which I appear.
[signature]
Attorney Marcos Arteaga Valenzuela
NATIONAL DIRECTOR OF LEGAL REPRESENTATION
DELEGATE OF THE ATTORNEY GENERAL
REGISTRATION 3632 Guayas Bar Association
No. 21100-2003-0002
Filed in Lago Agrio today, Monday, the twenty-second of October, two thousand twelve, at
11:24 a.m. Attachments: 1. I certify.
[signature]
DR. ROMULO SARITAMA NAULA
RECORDING CLERK (A)
4
[handwritten: 6]

5. CERT. MERRILL VER: JD
[Symbol] ATTORNEY GENERAL’S OFFICE PERSONNEL ACTION
No. 081 DNDHyC Date: March 14, [cut off]
ARTEAGA VALENZUELA
Surnames
MARCOS EDISON
Given names
0901499905
Citizen ID card Voter certification
Effective:
March 14, 2011
[cut off] of ADMINISTRATIVE ACTION: APPOINTMENT
[cut off]: TO APPOINT ATTORNEY MARCOS EDISON ARTEAGA VALENZUELA, NATIONAL
DIRECTOR, IN [THE] NATIONAL OFFICE OF LEGAL REPRESENTATION OF THE ATTORNEY
GENERAL’S OFFICE IN ACCORDANCE WITH ARTICLES No. 17(c), ARTICLE 83(a), SECTION
a.5 AND ARTICLE 85 OF THE LAW GOVERNING THE PUBLIC SERVICE.
CURRENT POSITION
Administrative Unit:
[cut off] work:
Unified Monthly Remuneration:
Budget item:
PROPOSED POSITION
Administrative Unit: NATIONAL OFFICE OF LEGAL
REPRESENTATION
Position: NATIONAL DIRECTOR
Work location: QUITO
Unified Monthly Remuneration: $4,700.00
Budget item: 2011590000000000100000001A96510
[cut off] 105000000100000000-0280
NATIONAL OFFICE OF HUMAN DEVELOPMENT AND TRAINING
[signature] [illegible stamp]
Engineer John Maldonado Herrera
NATIONAL OFFICE OF HUMAN DEVELOPMENT AND TRAINING
This COPY matches the document
found in the archive of the respective
Office, and to which I refer if
necessary. I CERTIFY.
Date: [signature] 11 OCT. 2012
ATTORNEY LEONARDO GARCIA S.
[illegible]
Attorney General’s Office [cut off]
initials
[illegible stamp]
Signature: [signature]
Dr. Diego García Carrión
ATTORNEY GENERAL
SWORN STATEMENT
[cut off] under oath that I do not hold any
other office [cut off] Ecuadorian public
sector that would prevent me from
exercising these duties.
[signature]
Marcos Edison Arteaga Valenzuela
HUMAN DEVELOPMENT UNIT
REPLACES:
IN THE POSITION:
BY:
REGISTRATION: 107792611 [illegible stamp]
DATE: 14 MAR. 2011
Signature: [signature]
Mr. Patricio Vasco Mosquera
CHIEF 2 (HUMAN DEVELOPMENT UNIT)

6. CERT. MERRILL VER: JD
CERTIFICATION OF POSSESSION OF POSITION
I CERTIFY THAT ATTORNEY MARCOS EDISON ARTEAGA VALENZUELA TOOK THE
OATH REQUIRED BY LAW BEFORE ASSUMING THE POSITION OF NATIONAL
DIRECTOR OF THE NATIONAL OFFICE OF LEGAL REPRESENTATION OF THE
ATTORNEY GENERAL’S OFFICE, ON THIS DATE AT 10:00 A.M.
Quito, March 14, 2011
[signature]
John Maldonado Herrera
NATIONAL DIRECTOR OF HUMAN DEVELOPMENT AND TRAINING
[handwritten: 2]