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April 19, 2012 Mr. John Watson, Chair and Chief Executive Officer Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA

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April 19, 2012 Mr. John Watson, Chair and Chief Executive Officer Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA April 19, 2012 Mr. John Watson, Chair and Chief Executive Officer Chevron Corporation 6001 Bollinger Canyon Road San Ramon, CA 94583 Dear Mr. Watson, We are writing to urge Chevron Corporation to join in a vital conservation initiative in the Yukon's Peel River Watershed. The Peel is the northern anchor of the trans-boundary Yellowstone to Yukon Conservation Initiative, extending from Yellowstone National Park to north of the Arctic Circle in Canada. The Peel’s vast primeval ecosystem is a refuge for a suite of creatures that are threatened or endangered in other places, such as grizzly bears, caribou, wolves and wolverine. Caribou calves born on the northern coastal plain of Alaska's Arctic National Wildlife Refuge travel across the Canadian border to their winter range in the Yukon, including portions of the Peel Watershed. The ecological integrity of the Peel region is crucial to the survival of the Porcupine Caribou Herd and the well-being of the Gwich'in First Nations. The undersigned organizations recognize the Peel Watershed as a culturally irreplaceable and ecologically priceless wilderness that is important for the people of the Yukon and North America as a whole. We express our support for the First Nations of the Peel Watershed as they work to protect their cultural homeland from industrial development. 2 | P a g e Chevron’s 525 Crest iron ore leases along the Peel Watershed’s Snake River are within a large area recommended for protection by the Peel Watershed Land Use Planning Commission. This recommendation has the full support of affected First Nations, U.S. and Canadian conservation organizations, and the majority of the Yukon public. Chevron has begun cleaning up contaminated sites on its Crest holdings. This necessary step is only a small part of a much greater opportunity for Chevron to demonstrate corporate leadership in the Yellowstone to Yukon region. We urge Chevron to phase out its Crest iron ore leases, play a leadership role in conserving the Peel Watershed, and support the aspirations of First Nations to protect their traditional territories. We believe there is a strong business case for Chevron to set aside its Crest holdings, avoid a protracted land use controversy, and gain widespread recognition in North America and abroad. You may have heard the Yukon government’s recent announcement that they intend to open up the Peel Watershed to roads and industrial development. The affected First Nations, the Tourism Industry Association, guide outfitters, the Chair of the Peel Planning Commission, environmental non-government organizations (ENGOs) and opposition political parties are condemning this announcement as a betrayal of the wishes of the Yukon public, and of the planning process mandated by treaties with First Nations. If the Yukon government proceeds on this course there is every likelihood of legal action, civil disobedience, bad publicity and endless delays for companies that attempt to pursue industrial development in the Peel. Instead of becoming embroiled in a protracted land use controversy, Chevron has a unique opportunity to work in partnership with Yukon First Nations and conservation organizations to help facilitate an outcome that will create a global conservation legacy. The Snake River watershed could be the centre-piece of a protected area six times the size of Yellowstone National Park. We urge you to act now, and negotiate the transfer of your leases in the Peel Watershed to a third party conservation trust to facilitate the region’s long-term protection. Such a choice could result in significant new value for Chevron shareholders – far beyond the riskier value that might, or might not, result from attempting to sell the Crest holdings or developing an iron mine in the Peel. This potential return includes both monetary and international reputation value. Our organizations would publicly recognize the global significance of your decision to help protect the Peel watershed. 3 | P a g e Thank you for considering our request. We look forward to your response. Sincerely, Rob Buffler Executive Director Yellowstone to Yukon Conservation Margo McKnight Initiative Executive Director Bozeman, MT Wildlands Network [email protected] Titusville, FL [email protected] Richard Cellarius, Ph.D. “Tom France” International Vice President Sierra Club Tom France San Francisco, CA Regional Executive Director Richard Cellarius National Wildlife Federation [email protected] Northern Rockies and Prairies Regional Center Missoula, MT [email protected] Rob Ament Senior Conservationist “Jim Stratton” Center for Large Landscape Conservation Jim Stratton Bozeman, MT Alaska and Pacific Northwest Regional Rob Ament Director [email protected] National Parks Conservation Association Anchorage, AK Jim "Stratto" Stratton [email protected] cc: Mr. Jeffery Lehrmann, President, Chevron Canada Resources 500 - 5th Avenue SW Calgary, Alberta T2P 0L7 .
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