Sunday, March 20, 2011

Dave Johnson: Koch Industries And Native-American Reservation Oil Theft

Koch And Native-American Reservation Oil Theft
By Dave Johnson
Campaign for America's Future

Just what is this Koch Industries? Should it be called a "company?" If so we need to re-think the idea of what a company and a business is supposed to be. Even the brother of Koch Industries owners David and Charles Koch called the company an "organized crime" operation.

Koch money is a key driver of the conservative movement. Almost every conservative-movement rock you turn over has Koch money crawling around under it. As the movement becomes more and more of a pay-to-play operation conservatives of every stripe do more and more to protect and enrich the Koch operation. This has included blocking, disrupting and avoiding official investigations of accusations. It also includes funding front groups to advance the political and financial interests of the company and its owners.

Theft Of Oil From Reservations

Oppose The Future has the story of how Koch Oil was caught stealing oil from an Indian Reservation, reduding or removing the incomes of so many poor residents.

At some point in 1987, Thurmon Parton’s royalty checks for the three oil wells he inherited from his mother suddenly dropped from $3,000 a month to a little over $1,000. He and his sister, Arnita Gonzalez, members of the Caddo tribe, lived near Gracemont, Oklahoma, a town of a few hundred people on a small grid on the prairie.

Those modest royalties were the only source of income each of them had.

. . . What happened to Mr. Parton, Ms. Gonzales and Ms. Limpy had nothing to do with the wells or how they were producing. Their oil was being stolen. And all of the evidence pointed to the same culprit: Koch Oil, a division of Koch Industries.

This is an important story today because it helps us understand the nature of the Koch operation, which has so much influence over our politics and even livelihoods today. It also helps us understand why our government not only appears to be influenced, but often to be outright corrupted. From the story,

In the spring of 1989, a Special Committee on Investigations of the United States Senate’s Select Committee on Indian Affairs was formed to look into concerns that the path to tribal self-rule was impeded by fraud, corruption and mismanagement from all sides.

... Within a span of months, the Special Committee determined that “Koch [Oil] was engaged in systematic theft, stealing millions in Oklahoma alone.” BLM, even with a tip that Koch was behaving improperly, hadn’t done a thing.

Oppose The Future lays out the story and details of the oil theft. There is also story of the years following.

"A Broad Pattern Of Criminal Behavior"

Back in 1996 Business Week looked into the relationship between then-Senator and Presidential Candidate Bob Dole and Koch Industries and an apparent pattern of influence by the company, in BOB DOLE'S OIL-PATCH PALS. Here are some excerpts from their investigation, [emphasis added]

Koch has had a history of run-ins with the Justice Dept. and other federal agencies. In 1989, a special congressional committee looked into charges that Koch had routinely removed more oil from storage tanks on Indian tribal lands ... Dole tried to influence the Senate committee to soft-pedal the probe. Nevertheless, after a yearlong investigation, the committee said in its final report, "Koch Oil, the largest purchaser of Indian oil in the country, is the most dramatic example of an oil company stealing by deliberate mismeasurement and fraudulent reporting." The report triggered a grand jury probe. The inquiry was dropped in March, 1992, which provoked outrage by congressional investigators.

Then in April, 1995, the Justice Dept. filed a $55 million civil suit against Koch for causing more than 300 oil spills over a five-year period. Dole and other Senators, however, sponsored a bill ... that critics charge would help Koch defend itself ... legal sources say the government's ultimate goal is to use evidence in the two actions to establish that Koch has engaged in a broad pattern of criminal behavior.

... From Apr. 19, 1991, through Nov. 2, 1992, David Koch and the Koch Industries political action committee together contributed $7,000 to Nickles' campaign war chest. Around the same time, [Oklahoma Republican Senator Don] Nickles sponsored Timothy D. Leonard, an old friend of Nickles, for the post of U.S. Attorney in Oklahoma City. ... nitially, questions were raised in the U.S. attorney's office about whether Leonard should recuse himself because Koch Industries purchased oil from wells in which Leonard and his family had royalty interests ... Then-Deputy Attorney General William P. Barr granted him a waiver to participate in the case ... In March, 1992, after an 18-month investigation, the U.S. Attorney's office terminated the grand jury probe and informed Koch it anticipated no indictments. ... As the grand jury investigation was winding down, Nickles sponsored Leonard for a federal judgeship. He was nominated by President Bush in November, 1991, and confirmed by the Senate the following August.

Business week lays out the evidence in detail. The timing, with Republican administration/committee/agency/department after administration/committee/agency/department impeding and/or dropping investigations into Koch activities is also clear.

To Read the Rest of the Report

No comments: