U.S. Senator John Breaux
The Golden Leash Award

The Golden Leash is a symbol of the ties between special interest money and elected officials. It is awarded to Members of Congress who demonstrate egregious conduct in the quid pro quo practice of dollar democracy.

This award serves as a reminder of Senator Breaux's acceptance of $276,000 from energy industries since 1993, and in turn, using his position in the Senate to promote special favors for his "cash constituents" at the expense of his real constituents back home, and the American people.

August 6, 1998


Who's on the Leash?
Overview
Press Release

WHO'S ON THE LEASH?

Senator John Breaux (D-LA)

Seventeen years ago, then-Representative John Breaux (D-La.) quipped that his vote couldn't be bought, but "it can be rented.1" During his 26 years in Congress, first as a representative, then as a senator, Breaux has proven he is a man of his word.

Of the millions that Breaux has raised for his reelection campaign since 1993, $276,000 comes from energy interests -- oil and gas companies, electric utilities, the mining industry, nuclear plants, and other concerns2. In addition, he's received $59,250 from a wide variety of industrial manufacturers, such as chemical, textile, and paper and steel companies. Many of these "cash constituents" lobby in Washington, D.C. against laws that would help clean up the air Louisianans breathe and preserve their land. Some also fight against paying a fair price for the oil they drill on land owned by the citizens of Louisiana.

The oil and gas industry, in particular, which has given the senator at least $192,144 since 1993, is at the forefront of lobbying wars against environmental protections. Most of that money, nearly $180,000, was contributed to the senator over the last two years, when he needs it most, as he prepares his reelection bid. Breaux, in fact, ranks seventh in the entire Senate for contributions received from the oil and gas industry since 1993 (See chart).

Breaux is Senate co-chair, along with Sen. Kay Bailey Hutchison (R-Texas), of the Congressional Oil and Gas Caucus. In championing the oil and gas industry and other cash constituents, the senator has often argued that he is simply helping local industries. Yet of the $107,000 he has raised since 1993 in large contributions of $200 or more from individuals associated with energy and manufacturing interests, 60 percent came from outside the state. And what these "cash constituents" want from Washington is not always what's good for Louisiana.

Top Senate Recipients of Oil and Gas PAC and Individual ($200+) Contributions
1993-1998*

 Rank

Senator

From PACS

 From Indivs

Total

1

Hutchison, Kay Bailey (R-Texas)

$323,899

$840,127

$1,164,026

2

Gramm, Phil (R-Texas)

$162,800

$637,965

$800,765

3

Inhofe, James M. (R-Okla.)

$174,150

$201,363

$375,513

4

Nickles, Don (R-Okla.)

$127,772

$117,700

$245,472

5

D'Amato, Alfonse M. (R-N.Y.)

$76,250

$157,270

$233,520

6

Thomas, Craig (R-Wyo.)

$130,513

$66,500

$197,013

7

Breaux, John B. (D-La.)

$126,244

$65,900

$192,144

8

Domenici, Pete V. (R-N.M.)

$98,907

$86,882

$185,789

9

Thompson, Fred (R-Tenn.)

$103,750

$76,060

$179,810

10

Brownback, Sam (R-Ks.)

$86,750

$85,625

$172,375

*Based on data released electronically by the FEC on July 1, 1998 and analyzed by the Center for Responsive Politics.

Energy Industry Contributions,
PACs and Indivs ($200+)
to Sen. John Breaux (D-La.), 1993-1998*

oil and gas

$192,144

electric power utilities

$48,750

mining

$16,500

power plant construction & equipment

$8,000

nuclear energy

$6,500

alternate energy production & services

$1,500

waste management

$1,500

energy production & distribution

$1,000

TOTAL**

*All contributions received since the 1994 election cycle, based on
Federal Election Commission data analyzed by the Center for Responsive
Politics and released electronically on July 1, 1998.

OVERVIEW

Louisiana has the dubious distinction of being second only to Texas as one of the most polluting states in the entire country. In 1995, the state's manufacturers, utilities, and other facilities emitted more than 172 million pounds of toxics into the air, water, and land. The state made the top fifth of all states for release of chemicals associated with cancer, developmental, and reproductive toxicants, according to federal Toxics Release Inventory data analyzed by the Environmental Defense Fund3. The state ranks first in the nation in water pollution, with virtually all of its waterways polluted for more than two decades4.

The state's poor environment affects Lousianans' health. More than 300 people living in Grand Bois, La. -- virtually the entire population of the town -- are suing Exxon and Campbell Wells Corp. They claim to suffer from symptoms such as diarrhea and dizziness, sore throats and eyes, from oil field sludge dumped near their town5.

Louisianans wish this wasn't so. Louisianans want strong environmental protections, as found in a 1997 public opinion poll of 500 registered voters by the Mellman Group, a political polling and consulting firm for Democrats. Large majorities want tighter regulations in a variety of areas, including cleaner air and water, and they are suspicious about the motives of Members of Congress who vote against strong environmental rules6.

Again and again, Senator Breaux has defended his environmental positions by arguing that stronger regulations would be too costly. But according to the Mellman poll, Louisianans are deeply skeptical of this kind of defense. According to the analysis, "only 15 percent believe that...a member of Congress is motivated by concerns that unnecessary and burdensome environmental regulations stifle job creation. This cynicism is linked to their perceptions of big business, which is seen as greedily trying to avoid paying the cost of complying with environmental laws.7"

SOOT AND SMOG

Louisiana ranks twelfth in the country for emissions of particulates, or soot, small airborne particles that can all too easily lodge into lungs. It also ranks seventh for nitrogen oxide and seventeenth for sulfur dioxide, which contribute to smog, or ozone8. This type of pollution is associated with asthma and other respiratory diseases, and children and the elderly are especially vulnerable. An estimated 727 people die yearly in six Louisiana metropolitan areas from cardiopulmonary disease attributable to this type of pollution, half of them in New Orleans9. Nationwide, some 64,000 deaths are attributed to smog and soot, according to an analysis by the Natural Resources Defense Council (NRDC), based on data collected by the American Cancer Society and Harvard Medical School10.

In 1996, the Environmental Protection Agency (E.P.A.) proposed regulations strengthening standards for smog and soot, the first time the agency had revised them in a decade11. The agency estimated that some 15,000 lives would be saved annually by the new regulations12.

The petroleum, utilities, chemical, steel and other industries that produce smog and soot immediately launched a multimillion dollar campaign opposing the new regulations, arguing that scientific evidence of harm was not definitive and that the regulations would cost too much.

But the public health community strongly supported the new regulations. In March 1997, more than 1,300 doctors, nurses, scientists, and other professionals wrote President Bill Clinton in support of the new Clean Air standards. Louisiana signers included professors of pediatrics at Tulane University School of Medicine and Louisiana State University Medical School13.

Senator Breaux's Actions:

In June 1997, Senator Breaux helped lead a Senate charge to block the proposed EPA regulations on soot and smog14. Industries opposed to the new regulations hoped that a letter that Breaux and fellow Senator John Chafee (R-RI) circulated among colleagues asking them to oppose new regulations would be the "nail in the coffin" for the proposal15. When the EPA issued the regulations anyway, in July 1997, Breaux kept up the fight, co-sponsoring legislation, S. 1084, which would require the EPA to revert back to old standards while ordering more studies on the health effects of smog and soot16.

Breaux argued his position on the Clean Air regulations was based on the facts. "The bottom line has to be whether it's justified by the science. ... This should not be a political compromise. ... It's not a question of splitting the difference, but really has to be what does this get us and how much does it cost?" Breaux told the Oil Daily in May 199717.

Louisiana's oil and gas industry cheered. In a letter to the editor to The Times-Picayune, B. Jim Porter, President of the Louisiana Mid-Continent Oil and Gas Association, said the senator was "trying to bring some common sense to the continuing debate over the kind of environmental regulations needed both to protect public health and to ensure a strong economy.18" The organization's PAC also rewarded the senator's campaign with $2,000, $1,000 of which was given in June 1997, when Breaux stepped to the front of the debate. Over all, during that critical month, Breaux received more than $27,000 from the oil and gas industry. That is more than twice the $10,550 he's averaged monthly from oil and gas interests in 1997-1998.

That same month, DuPont's PAC gave $3,000 to the senator, the total it has given the senator so far for his reelection campaign. DuPont owns sites that rank among Louisiana's top 25 producers of sulfur dioxide and particulates. Other companies with sites that rank in the top polluters list who have also contributed to Breaux's reelection effort include Entergy, BP America, Shell, and Exxon19. Sulphur giant Freeport McMoran Sulphur Inc. sells most of its sulphur to IGC-Agrico, a fertilizer manufacturer that also ranks among the top producers of sulfur dioxide in the state. The company is the spinoff of the business formerly known as Freeport McMoran, Inc., which gave the senator $11,250 since 1993.


GLOBAL WARMING

If the water level worldwide rises just 20 inches, the nation would lose about 9,000 square miles of land. About half of that would be in Louisiana20. Louisiana's Gulf Coast is considered one of the most vulnerable shorelines in the nation21. As the sea spreads inland, salty water would ruin drinking supplies22. The state's wetlands already are disappearing at a rate of about 25 to 35 square miles per year, the equivalent of a football field every 15 minutes23. As global temperatures rise, insects such as mosquitoes may flourish, and the diseases they carry, such as dengue fever, would incubate faster, making them more contagious24. Rodents may multiply, and bring with them more disease as well25.

For years, scientists have warned that "greenhouse gases," such as carbon dioxide, are trapping heat in the atmosphere. With more carbon dioxide, the atmosphere becomes like a giant greenhouse -- heat can get in, but it can't escape. These lead to rising temperatures, which leads to melting of the polar ice caps, which leads to rising seas.

Most members of the petroleum industry have fought U.S. participation in global climate treaties, though even the American Petroleum Institute states that despite doubts about the scientific research, it supports "taking action now to address potential climate change.26"

Senator Breaux's actions:

In 1996, Breaux joined five other Democratic senators in writing to President Bill Clinton questioning whether mandatory limits on greenhouse gases were a good idea27. In December 1997, after the Clinton administration endorsed the agreement negotiated in Kyoto, Japan, Breaux issued a formal statement: "The problem with this agreement is the developing nations are not included even though they continue to increase their carbon dioxide emissions," he said. "This treaty, in its current form, would never pass the United States Senate.28"


PIPELINE ACCIDENTS

With thousands of miles of oil and gas pipelines stretching across the state29, Louisiana is highly vulnerable to spills and leaks. These can contaminate water, create greenhouse gases, and harm crops, forests, and parks. People can also suffer injury from pipeline spills either from exposure to toxic chemicals or through the fires and explosions that sometimes accompany accidents.

According to analysis of data collected by the U.S. Department of Transportation's Office of Pipeline Safety, since 1985, companies reported spilling or leaking an estimated 93,633 barrels, or 2.5 million gallons, of oil, gasoline, ammonia, and other oil and petroleum products in Louisiana. More than half, 48,574 barrels, was never recovered from the environment, according to the companies. That's more net loss from spills for Louisiana than 39 other states. These spills resulted in three reported deaths and seven injuries, and nearly $13.7 million worth of property damage, as estimated by pipeline owners and operators30. These data should be considered an underestimate. A loophole in the reporting laws excuses companies from reporting spills if they are less than 2,100 gallons31.

Natural gas pipelines also pose hazards. Louisiana saw 94 people injured and 17 deaths since 1984 from natural gas pipeline accidents according to data supplied to the Office of Pipeline Safety by the companies themselves. These accidents resulted in more than $67 million worth of property damage. For the people living and working near these pipelines, these statistics are anything but abstract:

In another accident under investigation by the NTSB, a dredging boat working in Tiger Pass, Louisiana in October 1996 struck and ruptured a submerged Tennessee Gas natural gas transmission pipeline. The natural gas ignited and a tug boat caught fire37. Thirty crew members were evacuated and the fire smoldered all day before being extinguished38.

In March 1998, a new coalition of environmental groups and unions, in conjunction with local government, announced a program to strengthen pipeline safety laws. "Both Congress and the Office of Pipeline Safety have squandered every opportunity in the last five years to improve pipeline safety," said Robert Rackleff, president of the National Pipeline Reform Coalition and member of Friends of the Aquifer in Tallahassee, Florida39. The coalition is calling for congressional hearings, a General Accounting Office study of review of the Office of Pipeline Safety, increased liability for pipeline companies from spills, and more measures to protect environmentally or historically sensitive areas from spills40.

Senator Breaux's Actions:

On December 22, 1995, Sen. Trent Lott (R-Miss.) introduced S. 1505, the Accountable Pipeline Safety and Partnership Act of 1995. Breaux was one of two original cosponsors41.

Despite its feel-good name, the bill was criticized by environmental groups such as the Environmental Defense Fund, which argued it would weaken safety rules rather than enhance them. The bill changed the way the federal government oversees pipeline safety by introducing a pilot "risk management demonstration project," which allows the Office of Pipeline Safety and companies to negotiate ways for companies to opt out of certain existing safety rules42. The agency can grant these exemptions without meaningful public and state regulator input43. The law also weakened safety standards, such as required biennial inspections and that operators be tested for their qualifications44.

Industry applauded the legislation. "[The Interstate Natural Gas Association of America] and [the American Gas Association] wholeheartedly endorse this sensible and balanced approach to updating and improving the current Pipeline Safety Act, and stand ready to assist you in moving this legislation forward," testified John F. Riordan, before the Senate Commerce, Science and Transportation Committee in April 199645. Sen. Breaux is a member of the committee. The Senate passed the bill in September 1996, and it became law in October.

Following passage of the law, the oil and gas industry gave Breaux more than $179,000. Many of these companies operate pipelines that have had accidents in Louisiana, including Amoco, BP America, Exxon, Koch Industries, Shell Oil, and Texaco.


OIL ROYALTIES

When oil and gas companies extract oil from land owned by someone else, they must pay royalties to the owner. When the land is owned by the government, that means they owe the American public, via the U.S. Treasury, or, when the states own the leases, the State treasury. States also receive a portion of royalties from oil drilled on federal land46.

In 1997, the State of Louisiana collected an estimated $2.3 million for its share of royalties from oil drilled on federal leases, both onshore and in the Gulf of Mexico47. Louisiana requires that a portion of the $1.9 million collected from offshore federal leases be spent on education48. That's just federal leases. The state collects approximately $75.6 million a year in royalties for leases on state-owned land49.

These may seem like substantial sums of money, but critics say that they are underpayments. The Project on Government Oversight (POGO), a Washington-based watchdog group, has charged that oil and gas companies have consistently underpaid the federal government for the true value of the oil they take from public land, by more than $2 billion since 198550. The way oil is valued is complex, but the group argues that companies consistently deflate their "posted" prices for oil royalties below market value51.

POGO is not alone in making this argument. This year the U.S. Justice Department joined a lawsuit accusing Amoco Oil Company, Burlington Resources Inc., Conoco Inc., Shell Oil Company, and Texaco, Inc. of undervaluing oil extracted from public and Indian lands. The suit includes oil extracted from the Gulf of Mexico from 1988 to the present52.

In Louisiana, the State Department of Revenue and Taxation has filed lawsuits against 33 oil producers for some $100 million in unpaid severance taxes because the companies used "posted" prices instead of market value to figure their taxes53. The State has also settled for a total of about $3 million with a number of major oil companies, such as Texaco and Kerr-McGee, on unpaid royalties, and continues to audit companies54.

Private owners of oil leases in Louisiana are also in court seeking redress. Many are private citizens, but there are public organizations as well. Cameron Parish School Board is among the plaintiffs in a class action complaint against several oil companies for underpayment of royalties that has been consolidated in the U.S. District Court, Southern District of Texas, Corpus Christi Division55. The Parish is also participating in a civil RICO suit against a dozen oil companies, arguing that they paid "artificially low" prices for oil amounts to a "scheme to defraud, cheat, steal.56"

Sen. Breaux's actions:

In 1995, the U.S. Department of Interior's Mineral Management Service (MMS) proposed new regulations to change the way that oil is valued for royalty payments, to reduce reliance on "posted" prices57.

The petroleum industry, which has long argued that the way it values oil is fair, was unhappy with the MMS proposal.

In late April 1998, Sen. Kay Bailey Hutchison (R-Texas) delayed the final MMS regulations on oil royalties by slipping a rider to a disaster appropriations bill prohibiting the agency from publishing the rules until October58. Hutchison ranks first in the Senate for contributions from the oil and gas industry. Earlier that month, Breaux signed on to a bill, S. 1930, which would allow oil and gas companies to pay their royalties in-kind, through oil and gas rather than cash, a proposal favored by the industry59. Under such a system, the government would have to hire a private marketer to sell the oil, with the oil companies themselves able to bid on the marketing contracts60. The MMS estimates that a royalty-in-kind system would cost taxpayers as much as $368 million a year61.

Meanwhile, the oil industry, with Breaux's help, kept lobbying the MMS on its proposed rules that would change the way oil is valued.

On July 1, Breaux and Hutchison wrote Scott Armstrong, Assistant Secretary for Land and Minerals Management, requesting he attend a meeting of interested "stakeholders" to discuss the regulations62.

After hearing about the request, Danielle Brian, executive director of the Project on Government Oversight, wrote Secretary Bruce Babbitt in protest. "Why, after a two and a half year comment period, should DOI be deferring to the major oil companies now?" wrote Brian. "When I asked Secretary Armstrong's office why they are bending over backwards for the major oil companies, they weakly replied that they were asked to do so by two Democratic senators, at the time Senator Breaux was joined by Senator Bingaman, and felt they had to oblige.63"

Armstrong replied to Breaux on July 8, saying that he had already, at the senator's request, "committed to meet with oil industry CEO's and representatives of other interested groups to discuss the Department of Interior's direction on the final Federal oil valuation rule.64" He would meet with the oil industry executives despite the fact that he opposed Hutchison's "rider" delaying the new regulations. "Further delay of the final rule would serve no useful purpose, and would cost the American taxpayer an estimated $66 million per year. The rider also affects Indian oil valuation rules resulting in Native Americans losing early $4 million in 1999," wrote Armstrong.

The same day, the MMS published a notice in the Federal Register announcing it was reopening the comment period on the proposed regulations65. A later notice stated that a "meeting involving MMS, several industry representatives, and members of Congress was held in Washington, DC, on July 9, 1998.66"

This is not the first time the senator has stuck up for the industry's approach on oil royalties. In 1995, he voted to give a "holiday" from federal royalties to firms drilling for oil in deep water off the Gulf of Mexico67.

Oil & Gas Contributions
PACs & Individuals ($200+)
Totals by Election Cycle
1993-1998*

Election cycle

PACs

Indivs.

Total

1993-1994

$1,500

--

$1,500

1995-1996

$800

$10,550

$11,350

1997-1998

$123,944

$55,350

$179,294

 

Top Oil & Gas Contributors,
PACs & Indivs ($200+), to
Sen. John Breaux (D-La.)
1993-1998

Rank

Company/Organization

Total

1

Valero Energy Corp

$13,023

2

Chevron Corp

$11,000

3

Coastal Corp

$10,000

4

Enron Corp

$8,000

4

Interstate Natural Gas Assn

$8,000

5

Shell Oil

$7,000

5

Union Pacific Resources Group

$7,000

6

Koch Industries

$6,000

7

Louisiana Land & Exploration

$5,000

6

Murphy Oil

$5,000

7

Occidental Petroleum

$5,000

7

PanEnergy Corp

$5,000

8

USX Corp*

$4,171

9

Consolidated Natural Gas

$4,000

9

Mobil Oil

$4,000

10

Exxon Corp

$3,300

11

Texaco

$3,250

12

BP America

$3,000

12

El Paso Natural Gas

$3,000

12

Columbia Gas System*

$3,000

12

Phillips Petroleum

$3,000

*Contributions came from more than one affiliate or subsidiary.


(1) Congressional Quarterly profile on World Wide Web at voter.cq.com.

(2) Analyzed by the Center for Responsive Politics, based on Federal Election Commission data released electronically on July 1, 1998. Does not include contributions coded as "natural resources."

(3) Data downloaded from "The Chemical Scorecard," Environmental Defense Fund, on World Wide Web at http://www.scorecard.org/env-releases/state.tcl?usps_abbrev=LA).

(4) "A Fine Mess," Gambit Weekly, July 14, 1998.

(5) "Louisiana Town Goes to Trial Over Waste Pit," by Kevin Sack, The New York Times, July 13, 1998.

(6) "Louisiana Voters' Attitudes Toward Environmental Protection and Regulatory Reform," Memorandum from The Mellman Group, January 23, 1997.

(7) ibid.

(8) "Smokestacks and Smoke Screens: Big Polluters, Big Profits, and the Fight for Cleaner Air in Louisiana," report by the Environmental Working Group, May 1997.

(9) "BREATH-TAKING: Premature Mortality Due to Particulate Air Pollution in 239 American Cities," report by the Natural Resources Defense Council, May 1996.

(10) ibid.

(11) "New Air Quality Standards -- Fact and Fiction," Natural Resources Defense Council fact sheet.

(12) "AIR QUALITY. SPECIAL REPORT. Clearing the air. Is our air clean enough?" Consumer Reports, Vol. 62, No. 8, P. 36.

(13) "E.P.A.'s Proposed Clean Air Standards: Public Health Officials Urge Adoption," Letter to President Clinton provided by the National Resources Defense Council, March 11, 1997. Posted on World Wide Web at http://www.nrdc.org/nrdcpro/nrdcpro/petit/airlet.html.

(14) "Air Standards Battle Erupts In Letter-Writing Frenzy," National Journal's CongressDaily, June 4, 1997.

(15) "Chafee-Breaux Letter Is Termed Key To Blocking Air Rules," National Journal's CongressDaily, May 30, 1997.

(16) S.1084, on World Wide Web at thomas.loc.gov.

(17) "Democrats Join Congressional Rush Seeking Reconsideration of Air Rules," by Kimberley Music, The Oil Daily, No. 83, Vol. 47, May 1, 1997, P. 3.

(18) "Letter to the Editor," by B. Jim Porter President, Louisiana Mid-Continent Oil and Gas Association, The Times-Picayune, October 11, 1997, P. B6.

(19) "Smokestacks and Smoke Screens."

(20) Slide presentation by Dr. Jonathon Patz, a principal author of the health effects section of the United Nations International Panel on Climate Change (I.P.C.C.) Climate Change Report, presented in New Orleans, Louisiana in May 1996.

(21) ibid.

(22) "Global Climate Warming May Bring Rise in Diseases," by Mark Schleifstein, The Times-Picayune, May 18, 1996.

(23) "Louisiana Groups Join Call Against Planet Warming," Alliance for Affordable Energy news release, Winter 1996.

(24) "Global Climate Warming May Bring Rise in Diseases."

(25) "In Hot Water Down South: The Causes and Consequences of Global Warming for the Southern United States," report by Southern Strategy for an Energy and Environmental Renewal, September 1997.

(26) "Global Climate Issues," American Petroleum Institute fact sheet, on World Wide Web at www.api.org/globalclimate/starta.htm.

(27) "La. Senators Question Emission Standards," by John McQuaid, The Times-Picayune, July 18, 1996, P. A7.

(28) "Breaux: Current Global Warming Plan Won't Pass Senate," news release from the Office of Senator John Breaux, December 12, 1997.

(29) "Blind River Still Closed By Gas Spill," The Advocate, June 5, 1996, P. 6B.

(30) Data downloaded on July 17, 1998, from U.S. Department of Transportation FOIA On-Line Library at ops.dot.gov.

(31) Public Law 49 CFR, Chapter 1, Section 105.50(b).

(32) "OSHA to Probe Worker's Death from Fumes at Star Enterprise, The Advocate, February 12, 1998, P. 4B.

(33) "Gas Line Explodes; Blast Frightens Rural Residents; No Injuries Noted," by Rich Loup, The Advocate, March 20, 1995, P. 1A.

(34) Geraldine Ard, et. al. v. Transcontinental Gas Pipeline Corporation, 234d Judicial District Court, St. Helena Parish, state of Louisiana.

(35) Testimony of Jim Hall, Chairman, National Transportation Safety Board, Before House Appropriations Committee Subcommittee on Transportation , February 11, 1998.

(36) "Wildlife Pays the Price of Gramercy Gas Spill," by John Pope, The Times-Picayune, May 27, 1996, P. B3.

(37) Testimony of Jim Hall.

(38) "Barge Hits Gas, Burns," by Steve Cannizaro, The Times-Picayune, October 24, 1996, P. B1.

(39) "National Pipeline Reform Coalition Launches Campaign at Washington Area Event," National Pipeline Reform Coalition news release, March 28, 1998.

(40) ibid.

(41) S. 1505, on World Wide Web at thomas.loc.gov.

(42) ibid.

(43) Interview with Lois Epstein, Environmental Defense Fund, July 29, 1998.

(44) S.1505.

(45) Testimony of John F. Riordan, the Interstate Natural Gas Association of America and The American Gas Association, before The Senate Commerce, Science and Transportation Committee, April 16, 1996.

(46) "Wait! There is More Money to Collect . . . Unpaid Oil Royalties Across the Nation," report by the Project on Government Oversight, August 1996.

(47) Preliminary figures quoted from "Mineral Revenues 1997: Report on Receipts from Federal and Indian Leases," U.S. Department of Interior, Minerals Management Service, Table 33.

(48) "Bill makes an end-run on oil royalties," by Joan McKinney, The Advocate, May 10, 1998, P. 15B.

(49) Interview with Sandra Bailey, Louisiana Office of Mineral Resources, July 14, 1998. Louisiana collected an average of $6.3 million per month for the first four months of 1998. Bailey suggested multiplying this amount by 12 for an estimate of annual state revenues from royalties on state-owned oil leases.

(50) Interview with Danielle Brian, executive director, Project on Government Oversight, July 6, 1998.

(51) "Wait! There is More Money to Collect."

(52) "U.S. Sues Four Major Oil Companies for Underpayment of Royalties," U.S. Department of Justice news release, February 19, 1998; "U.S. Sues Texaco for Underpayment of Royalties," U.S. Department of Justice news release, May 19, 1998.

(53) Interview with Carl Reiley, Louisiana State Department of Revenue and Taxation, July 7, 1998.

(54) Interview with Sandra Bailey, Louisiana Office of Mineral Resources, July 7, 1998.

(55) First Consolidated Amended Class Action Complaint for Equitable Relief and Damages, In Re: Lease Oil Antitrust Litigation (No. II) (SD Tex. No. 1206.)

(56) David Brown, et. al. v. Amoco Production Company, et. al. (SD Tex C-98-217).

(57) "Establishing Oil Value for Royalty Due on Federal Leases: Further Supplementary Proposed Rule," U.S. Department of Interior, Minerals Management Service, Federal Register, Vol. 63, No. 136, July 16, 1998, pp. 38355-38357.

(58) "Democratic Lawmakers Offer Bill To Reverse Ban On New Royalty Rule," by Sheryl Morris, Inside Energy with Federal Lands, May 11, 1998, P. 13.

(59) S. 1930, on World Wide Web at thomas.loc.gov.

(60) "An Industry Gusher," by Jennifer Shecter, Money In Politics Alert, Center for Responsive Politics, Vol. 4, #22, June 18, 1998.

(61) Testimony of Cynthia L. Quarterman, Director, Minerals Management Service, U.S. Department of the Interior, before the House Committee on Resources Subcommittee on Energy and Mineral Resources, May 21, 1998.

(62) Letter to the Honorable Bob Armstrong, Assistant Secretary for Land and Minerals Management, U.S. Department of the Interior, from Senators Kay Bailey Hutchison and John Breaux, July 1, 1998.

(63) Letter to Secretary Bruce Babbitt from Danielle Brian, executive director, Project on Government Oversight, July 1, 1998.

(64) Letter to the Honorable John B. Breaux, United States Senate, from Bob Armstrong, Assistant Secretary for Land and Minerals Management, July 8, 1998.

(65) "Establishing Oil Value for Royalty Due on Federal Leases: Notice of Reopening the Public Comment Period," U.S. Department of Interior, Minerals Management Service, Federal Register, Vol. 63, No. 130, July 8, 1998, p. 36868.

(66) "Establishing Oil Value for Royalty Due on Federal Leases: Further Supplementary Proposed Rule," U.S. Department of Interior, Minerals Management Service.

(67) "Alaska Power Administration Asset Sale And Termination Act--Conference Report," U.S. Senate Rollcall Vote No. 574 on Nov. 14, 1997 posted on World Wide Web at thomas.loc.gov.


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