Organizational Consolidation
Legal Affairs
In the year 2009, legal activities were focused mainly on defining the laws applicable to the companies in which Ecopetrol holds interest and the corresponding adjustment actions required by legal assistance in the collective bargaining process.
They also focused on legal support to the company’s expansion plan through acquisitions; advice in the financing processes for the company and its subordinates, the regular legal and project consultancy and immediate response to lawsuits and petitions for the protection of fundamental rights.
Defense in Litigations
The year 2009 started out with a total of 2565 active judicial proceedings.
Since these judicial proceedings were against Ecopetrol, $78.741 billion in claims were decided on, $77.470 billion of which were ruled in favor of the company.
As regards proceedings in which Ecopetrol was the plaintiff, a total of $61.154 billion in claims were decided on (not including criminal proceedings) with rulings in favor of the company for a total of $52.253 billion.
Due to the purpose and amount of the litigations, the following are the five (5) main proceedings that are still active against Ecopetrol:
Accountability filed by the Ecopetrol Multiactive Workers Fund - Foncoeco in Spanish.The proceedings are still underway in the Supreme Court of the Bogotá Judicial District - Civil Chambers to settle Ecopetrol's appeal against the ruling in the first instance of the 23rd Civil Court, which ordered a payment of $541.833 billion to the plaintiff.
The contractual administrative proceedings of Latin-American Hydrocarbon Corporation S.A., is still underway in the Administrative Court of Cundinamarca - Section Three, in the first instance. The claims in this suit amount to $162.052 billion.
Action for Compliance by the Universidad de Cartagena and the Special Board of the Stamp "Universidad de Cartagena always at the height of the times", ruled upon by the Administrative Court of Bolivar, in which it is yet to be determined whether or not Ecopetrol is required to pay to update.
Municipal Small-scale Fishermen's Association of Tumaco and others against Ecopetrol: ordinary proceedings of non-contractual civil liability claiming $65.146 billion. The suit was ruled in favor of Ecopetrol in the second instance. Notwithstanding the above, the other party filed an extraordinary appeal, which is being dealt with as applicable.
At the end of 2009, Refinare filed a lawsuit against the Colombian Attorney General, Hocol and Ecopetrol, claiming $710 billion. Ecopetrol answered the complaint within the term established to do so.
In addition, due to their amount, the three (3) main proceedings in which Ecopetrol is the plaintiff, that are still active are:
Ecopetrol vs. Comuneros de Santiago de las Atalayas and Pueblo Viejo de Cusiana: proceedings for annulment and restitution of rights, in which there is a definitive ruling accepting the claims. The defendants filed a special appeal for amendment, pending settlement by the Colombian Council of State - Section Two. The original claims amount to $150 billion.
Ecopetrol vs. Buffete Industrial de Construcciones S.A. de C.V. - D S.A. - CMD S.A. – D S.A. – CMD S.A. Contractual administrative proceedings underway in the Santander Administrative Court, pending ruling in the first instance. The claims of this lawsuit amount to $63.240 billion.
Ecopetrol vs. D – CMD S.A. – Tito Marcelo – Pavicon Ltda. – Primont Ltda.: contractual administrative proceedings underway in the Administrative Court of Cundinamarca – Section Three, along with another lawsuit filed by the defendants, as plaintiffs, against the Company. The claims herein are in the order of $60 billion.
Legal Consultancy
Consultancy for the company's different divisions was provided in a timely manner in 2009. Results as regards the general quality of the service provided was rated at 86% as indicated in the survey conducted by the National Consultancy Center.
In addition to regular management, the Legal Vice Presidency provided legal consultancy in projects aimed at Ecopetrol’s national and international expansion, such as the acquisitions of Hocol, 50% of the North American company Offshore International Group (whose main asset is Savia Peru, and Enbridge's interest in Ocensa and Glencore's in Reficar S.A.
In the area of petroleum law, it is important to point out the legal assistance that led to the award of eight blocks in favor of the company in the rounds carried out by the National Hydrocarbon Agency in Colombia, 2 blocks in Peru, 1 in Brazil and 22 in the Gulf of Mexico (USA).
The company is not aware of any situations that would indicate non-observance in the fulfillment of its operations in accordance with the by-laws and decisions of the Shareholders Assembly and the Board of Directors.
Similarly, Ecopetrol has complied with the Colombian regulations regarding its activities as a securities issuer as well as the applicable international standards applicable in its capacity as an ADR issuer on the NYSE.
In addition, Ecopetrol has complied with the standards and provisions regarding intellectual property and copyrights, as regards the management of licenses for the software installed on the different computers.
Last but not least, Ecopetrol has fulfilled its obligations to reveal any events that are required to be disclosed to the stock market in Colombia as well as the US pursuant to the applicable regulations in each country.
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