And let us not forget that Chevron was one of the main players in
Afghanistan's Caspian pipeline project until the Taliban got to wanting a
representative cut of the pie.
The rest is history, ... but it's not about the oil....

Luc

----- Original Message ----- 
From: "Keith Addison" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, September 23, 2004 2:45 PM
Subject: [Biofuel] Schwarzenegger and ChevronTexaco


> http://www.tallahassee.com/mld/tallahassee/business/technology/9566168.htm
> AP Wire | 09/02/2004 |
> Thu, Sep. 02, 2004
>
> Schwarzenegger and ChevronTexaco
>
> TOM CHORNEAU
> Associated Press
>
> SACRAMENTO - Gov. Arnold Schwarzenegger's ambitious plan to
> reorganize almost every aspect of state government was influenced
> significantly by oil and gas giant ChevronTexaco Corp., which managed
> to shape such key recommendations as the removal of restrictions on
> oil refineries.
>
> Many corporations and interest groups participated in the governor's
> reform plan - known as the California Performance Review - but state
> records and interviews with the participants show Chevron enjoyed
> immense success in influencing the report through its array of
> lobbyists, attorneys and trade organizations.
>
> And few corporations have spent so much political cash on the
> governor, either. Since Schwarzenegger's election last October, the
> San Ramon company has contributed more than $200,000 to his
> committees and $500,000 to the California Republican Party.
>
> Chevron, whose officials acknowledge they lobbied hard to get their
> ideas in the report, is one of about 20 companies that paid to send
> the governor and his staff to this week's Republican National
> Convention in New York. On Wednesday, Schwarzenegger attended a
> closed-door meeting in New York with representatives of those
> companies, including Chevron. And just three weeks after the
> governor's office released the 2,700-page reorganization report, the
> company gave $100,000 to a Schwarzenegger-controlled political fund.
>
> Environmental watchdogs and local agencies that regulate some of
> Chevron's operations complain that they had no such access, and that
> their counterproposals appear nowhere in the massive report.
>
> Disclosure of Chevron's determined role in what many believe is the
> administration's most important political reform effort contrasts
> sharply with statements he made during last year's election campaign
> and afterward in which he promised to sweep out a corrupt system
> where "contributions go in, the favors go out."
>
> Schwarzenegger launched the reorganization effort in January, calling
> the state bureaucracy a "mastodon frozen in time" that needed to be
> reviewed from top to bottom to eliminate waste and duplication. The
> administration said the recommendations in the report would save $32
> billion over five years, a claim analysts said is exaggerated.
>
> Although the governor's senior aides helped organize and oversee the
> reorganization effort, a spokeswoman for Schwarzenegger said the
> review staff, not the governor's office, was responsible for the
> report. Schwarzenegger announced the review in January and then
> appointed its two top members, who then assembled the rest of the
> staff.
>
> Ashley Snee, the governor's deputy press secretary, said it was
> premature to assume any of the recommendations will be adopted and
> that those who are unhappy with parts of the report can comment at a
> series of statewide hearings on the proposal.
>
> Proposals that would benefit Chevron are peppered throughout the
> four-volume report. They include:
>
> _ Streamlining the permit process for the construction of new oil
> refineries and the expansion of existing ones. Chevron, which owns
> two of the state's largest refineries in Richmond and El Segundo,
> wanted the state's help in revising existing laws so local government
> officials would be required to make decisions more quickly on
> construction permits at refineries.
>
> _ Streamlining the activities of the San Francisco Bay Conservation
> and Development Commission. That agency, which issues permits for
> dredging and sand mining in the Bay Area, oversees activities related
> to Chevron's interests in the Bay Area.
>
> _ Reorganizing the regulatory process for picking the locations for
> refineries, tank farms, liquefied natural gas and other energy
> facilities. Chevron has two proposals to build liquefied natural gas
> (LNG) facilities in Southern California and the Mexican state of Baja
> California.
>
> "California's ability to produce gasoline is shrinking at the same
> time demand for gasoline is rising, contributing to California's
> dubious position as a national leader in the fuel prices.
> Time-consuming, costly and complex permitting processes are among the
> obstacles to expanding ... California's petroleum infrastructure to
> meet the growing demand," the CPR report said. "The state needs to
> streamline its permitting processes to allow supply to more readily
> keep pace with demand, so that price volatility and price
> differentials are reduced."
>
> But Mark Petracca, a University of California, Irvine political
> scientist, said Chevron's considerable influence on the CPR report
> may taint the whole review because the study was presented to the
> public as an objective and authoritative analysis of how to fix state
> government.
>
> "This is good old fashioned interest-group politics," Petracca said.
> "Powerful people who have money can hire powerful people and use
> occasions like this report to set the agenda for policy beneficial to
> those interests."
>
> In response, Snee repeated that the report was independent of the
> governor's office.
>
> Chevron's operations have drawn steady and critical scrutiny from
> state and federal regulators, including a settlement last October of
> a lawsuit with the U.S. Justice Department that required the company
> to install $275 million in air pollution equipment and pay $3.5
> million in civil penalties.
>
> Company officials said they were just doing their jobs through their
> vigorous participation in the CPR process, which included meeting
> with senior aides to the governor.
>
> "This is what we are here for," said Jack Coffey, Chevron's general
> manager over state government relations, from New York where he was
> attending the Republican convention.
>
> Chevron learned about the CPR early and "obviously understood their
> agenda," Coffey said, adding that while there was direct contact by
> company lobbyists, most contact came through trade groups of which
> Chevron is a member. "We made an effort to feed those trade
> associations who were more active."
>
> But, Coffey said, Chevron's donations to Schwarzenegger are because
> of his "pro-business agenda" and have nothing to do with the CPR
> report.
>
> In an interview, Chevron lobbyist K.C. Bishop said he met with
> Richard Costigan, Schwarzenegger's legislative affairs secretary, in
> April or May, about trouble the company was having with routine
> refinery permits and proposed legislation on the issue. At the end of
> the discussion, Bishop was directed to the CPR staff, which he
> visited a week or so later.
>
> Neither the meeting with Costigan nor with CPR staff were reported in
> Chevron's quarterly lobbying filings.
>
> Also acknowledged in the CPR report were Bishop; Mike Barr, a lawyer
> with the San Francisco-based firm Pillsbury Winthrop and who
> represents Chevron; and affiliated lobbyists of the Western States
> Petroleum - Kahl/Pownall Advocates - of which Chevron is also a
> member.
>
> Meanwhile, the Bay Planning Coalition - a business-oriented group of
> which Chevron is a board member - contacted the governor's cabinet
> secretary over problems its members were having with the San
> Francisco Bay Conservation and Development Commission.
>
> Schwarzenegger's staff sent the coalition's issue to the CPR staff,
> which met with the coalition sometime in April, according Ellen
> Johnck, the coalition's executive director.
>
> A letter from the coalition outlining the complaints - including some
> lodged by Chevron - was used a primary source for the CPR report that
> concluded BCDC had overstepped its authority. Although BCDC officials
> offered significant documentation to rebut the allegations, none of
> the commission's defense was included in the CPR report.
>
> In its section about making it easier to locate refineries or LNG
> plants, the CPR report cites attorney Mike Carroll of the law firm
> Latham & Watkins as a source. Based in the firm's Orange County
> office, Carroll represents Chevron on a variety of regulatory issues,
> according to the firm's Web site.
>
> Carroll did not return telephone calls for comment from The Associated
Press.
>
> Chevron has two LNG proposals - a $650 million facility that would be
> built offshore on an island near Tijuana in Baja California; and a
> second plan that would place a facility at Camp Pendleton in Orange
> County.
>
> Schwarzenegger is expected to meet with Mexican officials in Mexicali
> later this month. One expected topic of discussion is Chevron's LNG
> proposal.
>
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