Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-mc-80211/USCOURTS-cand-3_07-mc-80211-0/pdf.json

Parties Involved:
Chevron Corporation
Defendant
Mikhail B. Khodorkovsky
Plaintiff

Document Text:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

1

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

MIKHAIL B. KHODORKOVSKY,

Applicant,

v.

CHEVRON CORPORATION,

Respondent.

)

)

)

)

)

)

)

)

)

)

)

)

)

)

No. C07-80211 MISC MMC (BZ)

ORDER COMPELLING PRODUCTION

OF DOCUMENTS PURSUANT TO

SUBPOENA FOR THIRD PARTY

DISCOVERY FOR USE IN A

FOREIGN PROCEEDING PURSUANT TO

28 U.S.C. § 1782(a)

On August 29, 2007, Applicant Mikhail B. Khodorkovsky

(“Khodorkovsky”) filed an Ex Parte Application for an Order

Granting Third-Party Discovery for Use in a Foreign Proceeding

Pursuant to 28 U.S.C. § 1782(a), supported by a Memorandum of

Law and several Declarations (collectively, the

“Application”). By the Application, Khodorkovsky sought the

issuance of a Subpoena, directed to third-party Chevron

Corporation (“Chevron”), for the production of certain

documents and information relating to Yukos Oil Company (or

OAO NK Yukos) (hereinafter, “Yukos”), a Russian oil company. 

Case 3:07-mc-80211-MMC Document 10 Filed 11/07/07 Page 1 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

The Application sought the production of evidence for use in a

foreign criminal proceeding pending against Khodorkovsky. 

Khodorkovsky asserted in the Application that information and

documents that Chevron received as part of its due diligence

when it explored acquisition of an equity interest in Yukos in

2003 would be relevant to his defense of that proceeding. 

Because this was a matter relating to discovery, The Honorable

Maxine M. Chesney referred the Application to this Court on

August 29, 2007. 

After considering the ex parte Application and arguments

of Khodorkovsky’s counsel, this Court entered an Order on

August 30, 2007 granting the issuance of the Subpoena sought

in the Application. Although this was an ex parte

Application, the Court was mindful that the Order authorized

only the issuance of the Subpoena, and that Chevron’s response

to the Subpoena once served would be governed by the Federal

Rules of Civil Procedure and the Local Rules of this Court.

Chevron was served with the Subpoena on or about

September 4, 2007. Chevron timely notified counsel for

Khodorkovsky that it objected to the production of the

information sought by the Subpoena. As they were required to

do under the Federal Rules and the Local Rules of this Court,

counsel for Chevron and Khodorkovsky thereafter engaged in

strenuous and extensive arguments concerning the Application,

the Subpoena, Chevron’s objections and the procedures and

requirements of 28 U.S.C. § 1782(a). Khodorkovsky thereafter

Case 3:07-mc-80211-MMC Document 10 Filed 11/07/07 Page 2 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

3

requested that this Court hold a hearing on the matter, and

enter an Order compelling production pursuant to the Subpoena.

On November 6, 2007, this Court conducted an in-chambers

hearing on the matter to consider arguments of counsel. 

Khodorkovsky asserts that information reflecting the financial

condition and operations of Yukos is essential to his defense

of claims by the Russian Prosecutor General that Khodorkovsky

misappropriated over 350 million metric tons of oil from Yukos

and its three production subsidiaries (valued at over $30

billion), and laundered the proceeds. Chevron, on the other

hand, objects to any production pursuant to the Subpoena on

numerous grounds, including relevance and undue burden, and

asserts that the Subpoena improperly seeks production of

confidential and/or proprietary business information and

information unrelated to the allegations in the criminal

proceeding.

Now, after due consideration of the Application, the

Subpoena and the arguments of counsel for the parties, IT IS 

HEREBY ORDERED as follows:

1. No later than November 9, 2007, Chevron shall

complete a reasonably diligent review for the following

documents which were obtained by Chevron in 2003 pursuant to

due diligence conducted on Yukos.

2. On or before November 19, 2007, Chevron shall

produce the following categories of documents in its

possession, if any, that in the exercise of reasonable

diligence it has been able to locate by the date set forth in

Case 3:07-mc-80211-MMC Document 10 Filed 11/07/07 Page 3 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

4

paragraph 1:

(a) Documents Chevron received from Yukos in

connection with Chevron’s due diligence review of Yukos that

reflect the finances and/or operations of Yukos and/or its

subsidiaries;

(b) Documents Chevron received from anyone acting

on behalf of Yukos in connection with Chevron’s due diligence

review of Yukos that reflect the finances and/or operations of

Yukos and/or its subsidiaries;

(c) Non-confidential and/or proprietary documents

Chevron received from third parties in connection with

Chevron’s due diligence review of Yukos that reflect the

financial condition and/or operations of Yukos and/or its

subsidiaries; 

(d) Documents Chevron obtained from publicly

available sources during its due diligence review of Yukos

that reflect the finances and/or operations of Yukos and/or

its subsidiaries; and

(e) Non-confidential and/or proprietary documents

prepared by or obtained from sources other than Chevron during

the due diligence review regarding Yukos’ or Russian crude oil

exports, crude oil pricing, export duties, and wholesale

prices.

3. If not covered by the foregoing categories of

documents, Chevron shall produce the following documents

relating to its due diligence review of Yukos, to the extent

such documents are in Chevron’s possession, custody or

Case 3:07-mc-80211-MMC Document 10 Filed 11/07/07 Page 4 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

5

control, if any, that in the exercise of reasonable diligence

it has been able to locate by the date set forth in paragraph

1:

(a) All production reports relating to Yukos and/or

Sibneft; 

(b) All reserve appraisal reports relating to Yukos

and/or Sibneft;

(c) All monitoring data for Yukos and/or Sibneft

well output;

(d) All audited and unaudited financial statements

of Yukos and/or Sibneft; 

(e) All Yukos management presentations concerning

Yukos’ and/or Sibneft’s production and/or performance;

(f) All industry analyses of Yukos and/or Sibneft;

(g) All Yukos documents related to CAPEX (capital

expenditure) and OPEX (operating expenditures).

4. Not later than November 19, 2007, Chevron shall

certify its production pursuant to this Order. The

certification shall be substantially in the form attached

hereto as Exhibit A.

5. Each document produced by Chevron pursuant to this

Order shall bear the following legend: "This document is a

certified and authentic copy of an original document produced

pursuant to an Order of the United States Federal District

Court dated November 7, 2007".

6. Chevron’s production of documents and filing of its

Certification pursuant to this Order shall constitute

Case 3:07-mc-80211-MMC Document 10 Filed 11/07/07 Page 5 of 6
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

6

compliance with the Subpoena.

Dated: November 7, 2007 

 Bernard Zimmerman 

 United States Magistrate Judge

G:\BZALL\-REFS\KHODORKOVSKY\ORDER COMPEL PRODUCTION OF DOCS.wpd

Case 3:07-mc-80211-MMC Document 10 Filed 11/07/07 Page 6 of 6