See also:

http://www.motherjones.com/news/feature/2002/45/ma_149_01.html
The New Range Wars
They come on your land and take what lies beneath. In Wyoming's 
coalbed methane country, it's the ranchers versus the wildcatters.

http://www.motherjones.com/news/featurex/2002/45/we_187_02.html
Drilling and Discontent
While Wyoming's Powder River Basin is ground zero for the growing 
battle over coalbed methane drilling, the conflict is causing 
flare-ups from Montana to New Mexico.

http://www.hcn.org/specialcollections/coalbedmethane.jsp
Coalbed Methane BOOM
A High Country News SPECIAL REPORT


Eat the State!  Vol. 7, Issue #20   4 June 03

Interior's Steven Griles, the Deputy of Sleaze

Steven Griles is finally on the run. Griles is Interior Secretary 
Gale Norton's top lieutenant, holding the keys to the nation's oil 
and mineral reserves. Now he is hiding out from reporters and 
congressional investigators after accounts of his ongoing sleazy 
relationships with his former associates in big oil have begun to 
ooze out into the open.

Griles was one of Bush's most controversial appointments. A veteran 
of the Reagan administration, Griles worked closely with disgraced 
Interior Secretary James Watt to open the public lands of the West to 
unfettered access by oil and mining companies. As Deputy Director of 
Surface Mining, Griles gutted strip-mining regulations and 
shamelessly promoted the oil-shale scheme, one of the greatest 
giveaways and environmental blunders of the 1980s. He also pushed 
relentlessly to overturn the moratorium on offshore oil drilling on 
the Pacific Coast, a move that even caught Reagan off guard.

After leaving public office, Griles quickly cashed in on his tenure 
in government by setting up a DC lobbying firm called Stephen Griles 
and Associates. He rounded up a demon's list of clients including 
Arch Coal, the American Gas Association, National Mining Association, 
Occidental Petroleum, and more than 40 other gas, mining, and energy 
concerns.

For the past year and a half, Griles has used the cover of the 9/11 
attacks and the war on Iraq to advance his wholesale looting of the 
public domain for the benefit of some of his former clients and 
business cronies.

Griles wasted no time compiling a wish list from his pals. Within 
days of assuming office, Griles convened a series of parlays between 
his former clients and Interior Department officials to chart a game 
plan for accelerating mining, oil leasing, and coal-methane 
extraction from public lands.

In the early days of his tenure, Griles huddled on at least three 
occasions with Harold Quinn, Jr., a chief lobbyist with the National 
Mining Association. Quinn and his associates are Griles' former 
clients. Quinn had business that needed attention. He urged Griles to 
move quickly to loosen restrictions on the most environmentally 
malign form of coal mining, the aptly-named mountaintop removal 
method. Quinn also reminded Griles of Bush's pledge to preserve the 
archaic 1872 Mining Law, which gives away gold-rich public lands for 
as little as $2.50 an acre. The giveaway law had come under attack 
even from Republicans.

Griles also convened a meeting on September 10, 2001, with a dozen 
top executives from the Edison Electric Institute, another former 
client of his lobby shop. The energy bosses came to congratulate 
Griles on Bush's plans to scale back enforcement actions on filthy 
and aging coal-fired power plants. But they also came to gripe. They 
were unhappy with Bush's pledge to toughen up emission standards on 
sulfur dioxide, nitrogen oxide, and mercury. Griles, who was then the 
Bush administration's point man on the financial impacts of air 
quality rules on the energy industry, lent a sympathetic ear.

 From July 27, 2001, to February 20 of last year, Griles' logs show 
that he met on at least 32 occasions with other administration 
officials to discuss pending regulatory matters that were a concern 
to his former clients.

These meetings flout federal ethics rules which prohibit executive 
branch officials from participating in any "particular matter" which 
could advance his own financial interest or that involves former 
employers or clients. Griles claims that the meetings were merely 
social visits, utterly lacking in political intent. "We don't talk 
about work," Griles assured the Washington Post last year in an 
interview. "We're not allowed. We are all as scrupulous as we can be 
to assure that I will not be involved in any particular matter that 
would violate the ethics agreement or even have the appearance of a 
conflict of interest. The president said he wanted this 
administration to be held to the highest ethical standards. And I 
don't ever want it said that I didn't."

But it now turns out that not only was Griles shilling for his former 
clients, he was also pushing environmentally malign policies that 
would also pump up his own pocketbook. Griles was an ownership 
partner in a DC lobbying firm called National Environmental 
Strategies, a polluter's lobby founded in 1990 by Marc Himmelstein 
and Haley Barbour. Barbour soon left the firm to become head of the 
Republican National Committee. Griles moved in.

When he was tapped to become deputy secretary of Interior, Griles was 
forced to sell his interest in the firm for $1.1 million to 
Himmelstein, a friend and Republican powerbroker. Instead of paying 
him off in a lump sum, Himmelstein agreed to pay Griles $284,000 a 
year over the next four years. Griles said he arranged this payment 
plan so as not to leave NES "strapped for cash."

But in effect Griles remains financially tied to the health of 
Himmelstein's firm. And, in fact, Himmelstein has admitted that over 
the past two years he and Griles have gotten together several times 
over beers and dinner.

One of the issues high on the list of priorities for some of NES' 
clients was coal-methane gas drilling. In April of 2002, Griles 
directly intervened in a bitter dispute over the huge deposits of 
coal methane in Wyoming's Powder Basin River. This looms as the 
largest energy development project in the country and has been 
assailed as an environmental nightmare by environmentalists and 
native groups. The project, which calls for the development of more 
than 80,000 coal-methane wells, is so fraught with danger that even 
the Bush administration's own EPA issued a report sharply criticizing 
the environmental consequences of the scheme.

This roused Griles into action. On April 12, 2002, Griles sent a 
scorching memo on Department of Interior stationery chastising the 
EPA for dragging its feet on the project. He chided the agency for 
being uncooperative with industry. It turns out that Griles had 
formerly represented the very companies that he was now accusing the 
EPA of failing to give proper deference. As a lobbyist, Griles' 
clients included the Coal Bed Methane Ad Hoc Committee, Devon Energy, 
Restone, and Western Gas Resources--all companies seeking to gain 
access to the Powder Basin gas fields. His old firm, NES, also hosted 
an industry-sponsored tour of Powder Basin for EPA and Interior 
Department officials.

Griles' meddling in this matter came to the attention of the 
Department's lawyers. On May 8, they forced Griles to sign an 
agreement disqualifying himself from any further involvement in the 
coal-methane issue. He later said he did so "for all the world to 
know that I'm not even going to be talking to anybody about it again."

Now the Inspector General of the Department of Interior has launched 
an investigation into Griles' conflicts of interest and Griles isn't 
talking to anybody, especially the press.

On May 9, reporter Roberta Baskin tracked Griles down at a 
ribbon-cutting ceremony for the opening of the Meadowood Farm Trail 
in Lorton, Virginia. Baskin approached Griles with a cameraman and 
began asking him unsettling questions about Powder Basin. As Baskin 
zoomed in for the kill, Griles grabbed hold of the nearest object he 
could find: a 94-year-old woman named Gladys Bushrod, a ceremonial 
guest. Griles used Bushrod as a human shield to deflect Baskin's 
questions about his sleazy ties to his friends in big oil until he 
reached his waiting limo, whereupon he relinquished the woman and 
made his getaway amid a puff of dust and smoke.

--Jeffrey St. Clair


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