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August 19,  2000
[3] The Bush Family "Oiligarchy" -  The Third Generation
The Bush Family "Oiligarchy"
Part Three: Politics & Oil -- The SequelBy Sam Parry
The oil money connections that had served George W. Bush so well in private
life would, like his father before him, continue to serve George W. very well
in political life. And, like his father before him, George W. would reward
his oilmen benefactors once in office.

 During his nearly six years in the governor�s mansion, George W. has
presided over what widely regarded as the most polluted state in the country.
It ranks first in the amount of cancer-causing chemicals pumped annually into
the air and water, first in the number of hazardous-waste incinerators, first
in the total toxic releases to the environment, and first in carbon dioxide
and mercury emissions from industry. [See �The Polluters� President,� by Ken
Silverstein, Sierra Magazine, Nov/Dec 1999.]

The air quality is arguably the darkest blot on Texas�s environmental record.
A majority of Texans live in areas that either flunk federal ozone standards
or are in danger of flunking, a shocking statistic in a state of nearly 20
million people. Houston, the nation's oil- and petrochemical-industry
headquarters, has been called an ecological disaster zone. Chemical spills
slick its coastal waters and its air quality has just earned the dubious
honor of being the most polluted in the country, eclipsing Los Angeles last
year.

Water quality in Texas isn�t any better. More than 4,400 miles of Texas
rivers, roughly one-third of Texas�s waterways, don�t meet basic federal
standards set for recreational and other uses. They are unswimmable,
unfishable, and, for the most part, undrinkable.

Despite this abysmal record, the state has cut water-testing programs to the
bare bones. Between 1985 and 1997, the number of stations monitoring for
pesticides in Texas waterways fell from 27 to two. The lack of attention
given to these problems is further evidenced by the fact that the state of
Texas ranks 49th in spending on environmental clean up. [Sierra Magazine,
Nov/Dec 1999]

While missing in action on environmental protection, Gov. Bush jumped into
the trenches when the oil industry was threatened. In 1999, when
international oil prices collapsed, Gov. Bush pushed for and won a $45
million tax break for the state's oil-and-natural-gas producers. [AP, April
3, 2000]

To get a sense of Gov. Bush�s priorities, it is worth examining an initiative
he promoted that he now widely cites as a successful environmental policy
reform. In the Texas Clean Air Act of 1971, 828 industrial plants enjoyed a
grandfather loophole that allowed them to operate without obtaining a permit.
In 1997, Gov. Bush announced a plan to �close the loophole� for these
factories. But the plan was strictly voluntary and carried no penalties for
industries that didn�t seek a permit.

Such a plan could have been written by the industries themselves. And as it
turned out, it was. In confidential memos obtained by the Sustainable Energy
and Economic Development Coalition (SEED) under the state's Freedom of
Information Act, it was shown that Gov. Bush�s administration worked closely
with the companies as they were crafting the proposal. [Sierra Magazine,
Nov/Dec 1999]

Gov. Bush also found appointees who pleased the oil industry when he was
filling seats on the Texas Natural Resource Conservation Commission (TNRCC),
the Texas equivalent of the Environmental Protection Agency. His first
choice, Barry McBee, came from a Dallas law firm where he served as an oil
specialist. McBee was former deputy commissioner at the Texas Department of
Agriculture where he led a drive to gut "right to know" laws that protected
farmworkers from unannounced aerial pesticide spraying.

Gov. Bush�s second choice, Robert Huston, was even more fondly thought of by
the oil industry. Huston came from the industry consulting firm Espey, Huston
& Associates, whose clients included Exxon, Chevron and Shell. Another of
Gov. Bush's appointees to the TNRCC was Ralph Marquez, former vice chair of
the Texas Chemical Council's environmental committee and a 30-year veteran of
Monsanto. [Sierra Magazine, Nov/Dec 1999]

It is likely that a President George W. Bush would appoint people from this
same mold to serve in environmental and industry oversight positions. For
one, McBee is regarded as a leading candidate to head the EPA.

As has been widely reported, Bush has expressed a "kinship" with those in the
oil industry. Craig McDonald, Director of Texans for Public Justice, a
campaign finance group, summed up the bond between Bush and the oil industry
this way: "He's been friendly to that sector, policy-wise, and they've been
good to him in return. He rewarded them with tax breaks when they cried that
they weren't making enough money." [AP, April 3, 2000]

This affinity between Bush and the oil industry and how it might affect a
potential Bush presidency has raised alarm bells within the environmental
community. At a time when scientists warn of the dire environmental
consequences caused by global warming, which in turn is caused by burning oil
and other fossil fuels at high rates, environmentalists fear that a George W.
Bush White House, closely aligned with the oil industry, would ignore these
scientific warnings.

Among other controversial energy topics on which Bush sides with the oil
industry are suspending 4.3 cents-per-gallon of the federal gasoline tax, a
move that could lead to more gasoline use. He also favored opening up
Alaska�s Arctic Wilderness to oil drilling. These initiatives would have
strong chances of passage with Bush in the White House and Congress under the
leadership of Sen. Trent Lott, R-Miss., and Rep. Tom DeLay, R-Texas.

George W.�s support for the Alaskan oil ventures is underscored by the men he
chose to serve as his Alaska state campaign co-chairmen, Bob Malone and Bill
Allen. From 1995-2000, Malone served as president, chief executive and chief
operating officer of the Alyeska Pipeline Services Co., a consortium owned by
major oil companies active in the North Slope of Alaska.

Alyeska Pipeline manages the 800-mile Alaskan pipeline, which delivers more
than 20% of America�s domestic oil production. Before joining Alyeska, Malone
served as president of BP Amoco�s Pipelines (Alaska) Inc. [See The Public I,
Feb. 28, 2000, www.public-i.org/story_16_022800.htm .]

The other Bush co-chair in Alaska, Bill Allen, is the chairman of VECO Corp.,
which was formed to support offshore oil production in Alaska. VECO now has
4,000 employees and has offices in Alaska, Colorado, Washington State, India,
Cyprus and Houston. [See http://www.veco.com/CorpwebSite/locations/locations.h
tml .]

Big Oil Pumps in Money
In return for George W.�s continued political support, the oil industry has
played a prominent role in funding Bush's two gubernatorial races and now his
presidential candidacy. Of the $41 million Bush raised in two gubernatorial
races, $5.6 million (14 percent) came from the energy and natural resources
industries. [AP, April 3, 2000]

 The oil and gas industry has extended its support for the Texas governor to
his presidential bid, donating 15 times more money to Bush than to his
Democratic opponent, Al Gore. As of June 20, Bush had raised $1,463,799 from
the oil industry to Gore's $95,460, according to opensecrets.org [July 26,
2000]. Of the top-ten lifetime contributors to George W.�s political war
chests, six either are in the oil business or have ties to it. [See George W.
Bush: Top 25 Career Patrons, The Buying of the President 2000, Center for
Public Integrity, http://www.publicintegrity.org/reports/bop2000/bush_patrons.
htm .]

George W.�s chairman of his campaign�s finance committee is Donald Evans.
According to The Austin Chronicle, Evans is �perhaps the governor�s closest
friend� and has known George W. for three decades since their Midland days
together. Evans is also CEO of Tom Brown Inc., an oil and gas company with
the bulk of its production in Wyoming. Evans helped pioneer the Pioneers, a
group of Bush financial supporters who have each raised at least $100,000.

In 1995, Bush rewarded Evans by appointing him to the University of Texas
Board of Regents, one of the most �powerful patronage� jobs in Texas. Evans
rose to chairman of the board. With an annual budget of $5.4 billion and more
than 76,000 employees, the Texas university system is one of the largest in
the country. The Texas University Board of Regents also manages an investment
portfolio of more than $14 billion. [The Austin Chronicle, March 17, 2000]

George W., like his father before him, also brought his Texas oil financial
connections to Washington to help national Republican fundraising efforts. In
May, Ray Hunt, chairman and CEO of Hunt Oil Co., was named finance chairman
of the Republican National Committee�s Victory 2000 Committee. Based in
Dallas, Hunt Oil is an independent, private company that is among the top
dozen independent oil companies in the United States. [Cox News, May 10, 2000]

Richard Kinder and Kenneth Lay, the former and current CEOs of Houston-based
Enron Corp., also rank as two of Bush�s top contributors. Both are members of
Bush�s Pioneers and have been longstanding financial benefactors behind
Bush�s political career. By the end of 1999, funders connected to Enron had
contributed $90,000 to the Bush presidential campaign, the fourth largest
bundle at the time. [Boston Globe, Oct. 3, 1999]

Enron, a company worth $61.5 billion, is the No. 1 buyer and seller of
natural gas and the top wholesale power marketer in the United States. As
governor, George W. has embraced energy deregulation, an initiative on which
Enron has led the field of competitors.

In 1997, one Enron facility in Pasadena, Texas, released 274,361 pounds of
toxic waste. In many states, this would rank as one of the top toxic
pollution emitters, but not in Texas, where nearly 262 million pounds of
toxic waste were released into the environment in 1997, the most in the
country. [EPA TRI data, 1997]

Next: Part Four -- At the Candidate's Ear

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