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Politics, Astrophysics, Missing

Politics & Legal > Al Gore and Occidental Oil Corp.
 

Al Gore and Occidental Oil Corp.














Al Gore: The Other Oil Candidate
by Bill MeslerSpecial to CorpWatch
August 29th, 2000












RELATED STORY
Integrity in the Balance
Bill Mesler reports on Gore's broken promises on a toxic Ohio waste incinerator.


For thousands of years, the Kitanemuk Indians made their home in the
Elk Hills of central California. Come February 2001, the last of the
100 burial grounds, holy places and other archaeological sites of the
Kitanemuks will be obliterated by the oil drilling of Occidental
Petroleum Company. Oxy's plans will "destroy forever the evidence that
we once existed on this land," according to Dee Dominguez, a Kitanemuk
whose great grandfather was a signatory to the 1851 treaty that
surrendered the Elk Hills.
Occidental's planned drilling of the Elk Hills doesn't only threaten
the memory of the Kitanemuk. Environmentalists say a rare species of
fox, lizard and the kangaroo rat would also be threatened by Oxy's
plans. A lawsuit has been filed under the Endangered Species Act. But
none of that has given pause to Occidental or the politician who helped
engineer the sale of the drilling rights to the federally-owned Elk
Hills. That politician is Al Gore.
Gore recommended that the Elk Hills be sold as part of his 1995
"Reinventing Government" National Performance Review program.
Gore-confidant (and former campaign manager) Tony Cohelo served on the
board of directors of the private company hired to assess the sale's
environmental consequences. The sale was a windfall for Oxy. Within
weeks of the announced purchase Occidental stock rose ten percent.
That was good news for Gore. Despite controversy over Dick Cheney's
plans to keep stock options if elected, most Americans don't know that
we already have a vice president with oil company stocks. Before the
Elk Hills sale, Al Gore controlled between $250,000-$500,000 of
Occidental stock (he is executor of a trust that he says goes only to
his mother, but will revert to him upon her death). After the sale,
Gore began disclosing between $500,000 and $1 million of his
significantly more valuable stock.
Nowhere is Al Gore's environmental hypocrisy more glaring than when
it comes to his relationship with Occidental. While on the one hand
talking tough about his "big oil" opponents and waxing poetic about
indigenous peoples in his 1992 book "Earth in the Balance," the Elk Hills sale and other deals show that money has always been more important to Al Gore than ideals.


From California to Colombia: Native Lands Threatened


The Kitanemuk are not the only indigenous group threatened by
Occidental's oil operations. The 5000-member strong U'wa of
northeastern Colombia, have threatened mass suicide if Oxy proceeds
with plans to begin drilling oil on their ancestral homeland. The U'wa,
who retain their language and traditions, understand the introduction
of oil would devastate their culture. They also understand that oil
facilities would put them in the midst of Colombia's fierce civil war.
"To the U'wa, oil equals violence," explains Danny Kennedy, director
of the Berkeley, California-based Project Underground, which has helped
wage an international campaign of support for the U'wa. Oil
installations are a favorite target of leftist guerillas at war with
the Colombian government. After guerillas bomb the installations, the
army occupies the area. "Then comes the paramilitary, who are basically
soldiers with hoods on at night. Then comes the terror campaign" says
Kennedy. The U'wa, who have little contact with either the government
or the guerillas, would end up becoming targets.
The U'wa have attracted international sympathy, but their efforts to
enlist the support of Occidental's most famous shareholder -- Al Gore
-- have come to naught. Gore publicly met the outcry over the U'wa with
silence. The Vice President even refused a request by a Democratic
member of Congress that he meet with an U'wa representative who had
traveled to Washington to see him.
Meanwhile, Occidental pressed for the massive military aide package
for Colombia the administration recently pushed through Congress.
Occidental Vice President Lawrence Mirage testified before Congress in
favor of the military aide package during the February deliberations,
throwing in that those opposed to Occidental's drilling were a bunch of
"extremists."
Two things set the U'wa struggle and the Elk Hills sale apart from
the corporate welfare so typical of the New Democrats: Al Gore's direct
financial interest and his close relationship with Occidental Petroleum
that dates back to his father.


A Family Affair


Gore senior first met long-time Occidental CEO Armand Hammer at a
cattle auction in the 1940s. When zinc ore was discovered on some of
Gore's land, Hammer and Oxy bought it for twice the amount of the only
other bid. Hammer then sold the land back to Gore while retaining the
mineral rights. The elder Gore then sold the land to his son, Al Jr.,
who has received $20,000 yearly in mineral royalties from Occidental
ever since. Two years after Gore Sr. was defeated in a bid for
re-election to the Senate, he joined Occidental as a member of its
board of directors and was rewarded with a $500,000 a year job working
for an Oxy subsidiary.
Throughout his political life, Al Gore Jr. has received the favor
the patronage of Occidental and Hammer's successor, CEO Ray Irani. And
for every campaign finance violation Gore has committed, Irani seems to
be lurking in the background. He was one of the contributors who slept
in the Lincoln bedroom (a couple days later Irani wrote a $100,000
check to the DNC). When Al Gore made illegal fundraising calls from the
White House, Irani was one of the recipients (he ponied up $50,000,
according to a Harold Ickes memo unearthed during the investigation).
In the Elk Hills sell-off , Irani and Oxy finally got the payoff worthy
of their long patronage. It is a payoff crooked businessmen have
dreamed of ever since the land was stripped from the Kitanemuks during
the Gold Rush. Indeed, the history of Elk Hills and corruption is an
old one. And it is a story most Americans have heard.


Gore's Teapot Dome Scandal?


In 1922, executives of the Pan-American Petroleum and Transport
Company (now known as ARCO) bribed Albert Fall, President Warren
Harding's interior secretary, to give them leases to two oil fields
reserved for a military emergency. One was on field in Wyoming called
the "Teapot Dome," the name by which we would forever remember the
biggest bribery scandal in modern American history.
The other field in the scandal was the navy's 47,000-acre reserve in
the Elk Hills, near Bakersfield in Central California. These were
traditional lands of the Kitanemuk people, better known by the name the
Spanish gave them, the Tejon. They were forced off the Elk Hills by
treaties signed with the federal government in 1851 during the midst of
the gold rush and have since lived on the nearby Fort Tejon
reservation, now called "Tejon Ranch."
While the scandal scuttled ARCO's plans, Occidental succeeded in
acquiring Elk Hills seventy five years later. In 1997, after Gore's
recommendation the land be sold, Oxy bought the region from the federal
government for $3.7 billion. The sale represented a tripling of the
company's U.S. oil reserves. Mired for years by declining reserves,
Occidental's revenues for the first quarter of this year showed a
dramatic 87 percent increase from the same period in 1999, before it
began operations in the Elk Hills.
To complete the environmental assessment, the Energy Department
hired a private company to complete the environmental impact statement
necessary for the sale. The company was ICF Kaiser International, and
on its board of directors sat none-other than Democratic
super-fundraiser Tony Cohelo. Cohelo would later become Gore's campaign
manager before being dumped after the Democrat's early stumbles. He is
currently the subject of investigations by former employers in the
State Department and by the Census Monitoring Board, seeking to
determine if he misused his positions (both were administration
appointments) for personal gain. The Securities and Exchange
Commission, meanwhile, is investigating Cohelo's myriad financial
empire.
The Elk Hills sale, not surprisingly, was quickly approved. "I can't
say that I've ever seen an environmental assessment prepared so
quickly," says Peter Eisner, director of the Washington-D.C. public advocacy group Center for Public Integrity.
Meanwhile, as it became clear that Oxy was looking to undertake
massive drilling operations in the Elk Hills, the 500 remaining
Kitanemuk sought assurances from Oxy that their native sites and burial
grounds would not be destroyed. Company officials said they would
protect their heritage. But it soon it became apparent that the last of
the 100 archaeological sites identified by the tribe would be destroyed
by February 2001. Occidental agreed to first allow the State Native
American Heritage Commission to retrieve what it feels is most valuable
for a future display at a Museum at the California State University in
Bakersfield.
"They are going to take the last memories of our people, the last
evidence that we once inhabited this land and put it in a box and ship
it off to a museum," laments tribal member Dee Dominguez. "All the
material culture of the Kitanemuk would be destroyed forever. (But) the
oil they are extracting will be completely drained in twenty years."
Dominguez calls Occidental executives "cold" and "insensitive,"
unwilling even to consider slant drilling that would save pieces of the
tribe's history for future generations. "We've never denied them taking
oil," she says. "We are not asking for land. We are not asking for
royalties. We are just asking them to leave something to show that we
were here."
As for Al Gore's role in the whole affair, Dominguez says she has
thought about writing him. But she doesn't think it will help.
"[Clinton and Gore] sold us down the river," she says. "It turns my
stomach every time I hear them talk about family."
Bill Mesler is a Washington-based reporter. His work has appeared
in the Nation, Mother Jones and the Progressive, among other
publications.

posted on June 15, 2008 4:06 PM ()

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