Gas Price Hikes Were Caused by Feds, Not Oil Companies, Memo Admits NewsMax.com Friday, July 14, 2000 Just 10 days after an internal Energy Department memo admitted that EPA regulations were largely responsible for the skyrocketing gasoline prices in the Midwest, EPA administrator Carol Browner told members of Congress her department was not to blame. Instead, Browner joined President Clinton, Vice President Al Gore and Energy Department head Bill Richardson in deceptively suggesting that the blame lay on greedy oil companies. Browner’s actions led House Speaker Dennis Hastert to charge that they appeared to be part of a "coordinated strategy" with the White House to "deflect blame" for the sudden rise in gasoline prices in the Midwest. The June 5 memo, obtained by the Washington Times, was authored by the Energy Department’s acting policy director, Melanie Kenderdine for Richardson when gasoline prices in the Midwest were soaring as high as $2.50 per gallon. According to the Times, the memo "echoes the conclusions of private analysts and even oil company representatives in stating that ‘high consumer demand and low inventories have caused higher prices for all gasoline types’ at a time when crude-oil prices are hovering near record highs." "The Milwaukee [and Chicago area] supply situation is further affected by, among other things, an RFG formulation specific to the area that is more difficult to produce, lower gasoline inventories relative to the rest of the country, high regional demand, and limited transportation links," the memo claimed. In spite of the fact that the memo showed the Feds knew the blame for the price hikes lay at the doorstep of the EPA, the federal government launched three investigations into the possibility that the oil companies had conspired among themselves to fix prices. At a June 15 meeting in House Speaker J. Dennis Hastert's office Browner told a gathering of some 30 members of Congress that the EPA regulations were not behind the Midwest price increase. Despite the tight supply situation outlined in the memo, she asserted that it was "not a supply issue," even though the memo, written 10 days earlier, stated that EPA regs had indeed been responsible. According to the Times, the memo reveals that refineries had "been going full blast" to produce the reformulated gasoline mandated by the EPA and that "shippers and distributors were straining to deliver enough gas supplies to thirsty drivers, and disruptions of key pipelines had made the supply situation precarious." The memo notes that Chicago-area refineries do not have the capacity to rev up production when shortages occur, and the EPA mandated gasoline mixed with ethanol in the region could not be brought in from other areas because few other refineries produce the unusual fuel mixture. That Browner was fully aware of the memo’s conclusions even while denying them publicly was made clear by Drew Malcomb, an Energy Department spokesman. He told the Times that the memo was written specifically to help Browner make up her mind about whether to grant Chicago and Milwaukee waivers they had requested from the clean-fuel regulations. In the end, she denied both cities' requests. According to Malcomb, the memo is directed at "supply and demand" rather than "prices," despite the fact that it clearly states the new regulations had hiked the cost of reformulated gasoline by 3 cents to 7 cents over conventional gasoline, and added that "cost ... is not necessarily an indication of price." Citing the memo yesterday, Speaker Hastert accused Browner of misleading members of Congress, the media and the public. He further demanded immediate action to relax EPA regulations in the Midwest, his home area. In a letter to Browner he wrote: "It is clear from the June 5th memo that the DOE, whose primary responsibility is oversight of our nation's energy supply, believed that a lack of gasoline inventories in the Midwest, as well as EPA regulations, were not only 'factors' which led to higher gasoline prices, but in fact the primary causes." "Nowhere does this document indicate, or imply, that price gouging was a factor; nor has any other federal study or investigation," the speaker said. "Yet, you continued to point the finger" in what appears to be a "coordinated strategy" with the White House to deflect blame, he wrote. http://www.newsmax.com/articles/print.shtml?a=2000/7/14/100437 Bard The Lesser of Two Evils is Still Evil. <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html">Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/">ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
