The Amazon basin region's four indigenous peoples -- the Siona, the Huaorani, the Cofan, and the Shuar -- in July 2003 took on Texaco in the Ecuadoran courts, seeking reparation for alleged damages to half a million hectares (1.24 million acres) of sacred lands. They put the cost of cleaning up at six billion dollars.

Texaco maintains it already has cleaned up in the area.

Ecuadoran Attorney General Jose Maria Borja told foreign correspondents Texaco's proposal for mediation in New York was "incompetent, immoral and inappropriate because it is an affront to the sovereignty of our country."

He said Texaco was trying to force state oil company Petroecuador to pick up the tab for the damage allegedly inflicted ovber 20 years.

"That damage should be repaired by Texaco," Borja said.

A New York court in May 2003 said the case should be handled in Ecuador's courts.