-Caveat Lector-

 From: [EMAIL PROTECTED]
 To:   [EMAIL PROTECTED]
 Date: Fri, 18 Jun 1999
 Subj: [RuMills] CANADA INVOKES NAFTA TO SMASH CALIFORNIA

 http://www.sfgate.com/cgi-bin/article.cgi?file=/
 chronicle/archive/1999/06/18/MN12059.DTL">


 Canadian Firm Sues California Over MTBE
 $970 million suit seeks to end gas-additive ban

 This morning's San Francisco Chronicle carried an article about
 the gas additive MTBE.

 MTBE is supposed to take the pollution out of the air, at least
 Carol Browner of the EPA and her appointees tell us that is
 what it is designed to do.

 When MTBE was forced on California, no one told us that it
 would pollute our drinking water with carcinogens.  No one told
 us that pockets of our children, who live near these polluted
 water wells, would develop a fast growing cancer and die.

 Now that we have discovered that it is killing our children and
 destroying our water, Canada is using NAFTA, the North American
 Free Trade Agreement, to force our governor to back down on his
 ban against MTBE.

 ISN'T NAFTA GREAT?

 Because of NAFTA, a business in a foreign country can force us
 to destroy our land and water because we signed a "treaty" or
 an agreement, saying we had to accept anything they wanted to
 trade with us... even if it kills us and our state!

 People are always talking about building bridges and forming
 consensus amoung warring factions.  It is time for the warring
 factions of America to come together and get rid of this NAFTA
 monster that is threatening to destroy us.

 Divide and conquer is the way our enemies are winning.  They
 keep us fighting each other over abortion, gun control, school
 prayer, and other equally intense hot buttons.  Then while we
 are doing battle to save our guns, babies and God, they slip in
 with treaties and agreements that take ALL of our rights away.

 Our house is burning down.  Can Americans stop fighting each
 other long enough to put out the fire?  Once we have saved
 America for another generation of Americans, then we can go
 back to being Democrats and Republicans, Christians and Pagans,
 gun owners and gun haters.  But for now, if we don't learn how
 to ignore the people who are pressing our hot buttons and
 pulling our strings, our house is going to burn down around us,
 while we are fighting each other.

 NAFTA and the Canadian MTBE lawsuit is a point where all
 Americans who use water can come together in a common cause.
 Water unites us all.  Without pure water, our state and our
 nation will not survive.  MTBE will destroy our water.  Without
 water California cannot grow the food that feeds much of the
 United States.

 If NAFTA forces us to continuing using an additive that is
 killing us, then  we must kill NAFTA first.

 NAFTA is one of the lynchpins of the New World Order.  If we
 can rally enough Americans around MTBE and NAFTA, maybe we can
 delay the plans the New World Order elitists have in store
 for us.

 I have inserted the article, or you can use the weblink to pull
 it up.

 Ru Mills, www.rumormillnews.com


 ---------------------------------------------------------------

 Canadian Firm Sues California Over MTBE
 $970 million suit seeks to end gas-additive ban

 Robert Collier, Glen Martin, Chronicle Staff Writers
 Friday, June 18, 1999

 ---------------------------------------------------------------

 Challenging one of California's newest environmental
 protections, a Canadian corporation has filed suit to overturn
 the state's ban on the gasoline additive MTBE, calling it a
 violation of free-trade rules.

 Less than three months after Governor Gray Davis moved to end
 the use of MTBE, the Vancouver- based Methanex Corp. announced
 Tuesday that it is using the North American Free Trade
 Agreement to seek $970 million in compensation for lost
 profits.

 The challenge under NAFTA's little-known "investor rights"
 provisions packs a big legal punch.  A similar lawsuit filed
 last year by a U.S. company forced Canada to overturn its ban
 on a gasoline additive that has been implicated in health
 problems.

 Other NAFTA suits are under way in the United States and
 Canada, seeking to overturn a wide variety of government
 regulations.  Consumer and environmentalist groups warn that
 big business may be able to use NAFTA to gut decades of
 progressive legislation.

 "This is what 'free trade' is all about -- corporations
 overruling the decisions made by citizens at the ballot box and
 the legislative process," said Lori Wallach, director of Public
 Citizen's Global Trade Watch, a Washington-based lobbying group
 that has fought NAFTA.

 "Methanex is using NAFTA to override the governor, state Senate
 and people of California," she said.

 In papers filed with the U.S. State Department, the company
 said California's ban on MTBE unfairly restricts the company's
 ability to sell methanol -- a key ingredient in MTBE -- and
 profit from its sale in the state.  The company says this
 constitutes a violation of NAFTA.

 MTBE, or methyl tertiary butyl ether, makes gasoline burn more
 efficiently and cleanly, and it has been used in most
 California cars since 1996 as part of the state's strategy to
 meet federal clean-air requirements.

 However, the additive, a possible carcinogen, has been
 implicated in recent years as a major source of contamination
 of both reservoirs and groundwater.  And air quality officials
 have concluded that the clean-air goals can be met without it.

 Governor Davis' March 25 announcement that MTBE will be phased
 out by the end of 2002 will cause the company to lose $970
 million in methanol sales over the next 20 years, said Pierre
 Choquette, CQ Methanex's president and chief executive officer.

 Six percent of world methanol sales occur in California, and
 Methanex is the world's largest methanol producer.

 Under NAFTA's vaguely written investor rights provisions,
 companies are entitled to compensation for "expropriation" --
 which may be interpreted as any government action, including
 health and safety regulations, that has the effect of reducing
 a company's profits.

 "Our claim is related to expropriation," Choquette said.
 "NAFTA requires that an expropriating party meet certain
 obligations, including fair and equitable treatment and the
 payment of compensation, which California did not meet."

 Daniel Seligman, a Sierra Club trade policy specialist,
 said the suit has ominous implications for North American
 environmental regulations "because the language of the
 provisions are so sweeping.  Under NAFTA, this is an open and
 shut case in favor of the company.  NAFTA states that any
 regulation tantamount to expropriation justifies a
 compensation."

 Under the NAFTA dispute process, lawyers for Methanex and the
 U.S. federal government will have two months to reach a
 settlement.  If they fail to do so, the issue will go to
 binding arbitration by a three-person international panel
 agreed to by both sides.

 Although the panel does not have the power to directly
 overthrow state or federal laws, it can levy heavy fines --
 thus providing strong pressure for the revocation of the
 offending law.

 Last year, a similar NAFTA lawsuit caused Canada to overturn
 its ban on MMT, a fuel additive that was blamed for
 neurological maladies.  The ban was challenged by the Richmond,
 Va.-based Ethyl Corp. because it "expropriated" future profits
 and damaged Ethyl's "good reputation."

 Rather than pay $251 million in damages, Canada overturned its
 ban and paid Ethyl $13 million.

 Michael Bustamante, a spokesman for the governor, said he had
 not seen a letter that Methanex said it sent to Davis earlier
 this week.

 "The governor's decision on MTBE was good for the people and
 environment of California," Bustamante said.  "He weighed all
 the issues, considered all the comments and gave companies
 sufficient time to phase out the chemical in a nondisruptive
 fashion."

 Jim Spagnole, a spokesman for the California Environmental
 Protection Agency, said the action means little to state
 regulators at this point.

 "It all depends on the kind of relief they seek, whether it is
 injunctive relief or for damages," he said.  Right now, many
 manufacturers are voluntarily choosing not to include MTBE in
 their gasoline.


 ©1999 San Francisco Chronicle  Page A1




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