Not really.

See a previous post with the subject - Venezuela Oil Fields Back in State
Control, from Keith Addison:

"In 2001, it passed a new law requiring oil production to be carried out by
companies majority-owned by the government."

Greg H.


----- Original Message ----- 
From: "Marty Phee" <[EMAIL PROTECTED]>
To: <Biofuel@sustainablelists.org>
Sent: Thursday, January 05, 2006 10:04
Subject: Re: [Biofuel] Chicago Turns Down Discounted Venezuelan Oil


Very true, but wouldn't they be signing a contract with Citgo and not
Venezuela.



Greg and April wrote:
> IIRC, it's not legal for individual states or cities to make treaties with
> foreign nations, as such an agreement might be considered.
>
>
> Greg H.
>
>
> ----- Original Message ----- 
> From: "Keith Addison" <[EMAIL PROTECTED]>
> To: <biofuel@sustainablelists.org>
> Sent: Wednesday, January 04, 2006 23:56
> Subject: [Biofuel] Chicago Turns Down Discounted Venezuelan Oil
>
>
> http://newstandardnews.net/content/index.cfm/items/2710
>
> Chicago Turns Down Discounted Venezuelan Oil
>
> by Jessica Pupovac (bio)
>
> As Chicago's poorest face an increase to already-high public transit
> fees, the city is ignoring an offer of discounted diesel fuel to
> benefit low-income people.
> Chicago, Dec 28, 2005 - The Chicago Transit Authority is refusing an
> opportunity to alleviate commuting costs for hundreds of thousands in
> the Windy City's low-income neighborhoods. Instead of accepting
> deeply discounted fuel from the Venezuela-owned Citgo Petroleum
> Corporation, the city is instead raising fares to solve budget
> shortfalls.
>
> In an October meeting with representatives from the Chicago Transit
> Authority (CTA), the city's Department of Energy and other city
> officials, Citgo unveiled a plan to provide the Chicago with low-cost
> diesel fuel. The company's stipulation, at the bidding of Venezuelan
> President Hugo Chavez, was that the CTA, in turn, pass those savings
> on to poor residents in the form free or discounted fare cards.
>
> But two months later, despite claims of a looming budget crisis, the
> CTA president "has no intent or plan to accept the offer," according
> to CTA spokesperson Ibis Antongiorgi. She gave no explanation.
>
> According to Venezuela's consul general in Chicago, Martin Sanchez,
> the CTA has yet to inform his office of its decision to decline the
> discount offer.
>
> In place of the proposed discount, which the CTA apparently does not
> want Chicagoans to even know about, budget shortfalls will be
> addressed by fare hikes. Chicagoans who are unaware of the Venezuela
> offer will be hit with an increase of 25 cents per ride next month,
> and discounted route-to-route transfers will be eliminated for
> passengers paying cash.
>
> "This is going to hurt the poor and the minority people, like me,"
> said Dorothy Chew, resident of Humboldt Park, where one-third of
> residents live below the federally recognized poverty level -
> currently just $16,000 for a family of three. Chew relies on the CTA
> to get to work and to Chicago Commons, where she attends classes
> daily in preparation for taking her GED. Since she rarely has money
> to invest in a fare card, she will be forced to pay for transfers the
> majority of the time.
>
> Chew's classmate, Linda Cox, works a minimum-wage job and has been a
> Public Aid recipient for 15 years. She also relies heavily on public
> transportation.
>
> "I only earn $560 a month and of that, over $200 a month goes to my
> bus fare," Cox told The NewStandard. "I have a 15-year-old and a
> 17-year-old who also need to get to school. If they change the prices
> and take away transfers, there are going to be a lot of days missed.
> I already see no money at the end of the month."
>
> The offer of discount fuel is not just confined to Chicago. Over the
> Thanksgiving holiday, the first of Venezuela's "oil-for-the-poor"
> programs in the US was launched. Citgo struck a deal with three
> nonprofit organizations in the Bronx to deliver 5 million gallons of
> heating oil at 45 percent below the market price. The deal will
> amount to a savings of $4 million for the 8,000 low-income households
> slated to benefit from the plan.
>
> "This is going to hurt the poor and the minority people, like me." -- 
> Dorothy Chew Citgo has made a similar arrangement with Citizens
> Energy Corp. in Boston for the sale and distribution of 12 million
> gallons, saving low-income and elderly residents there a total of $10
> million. The company's website says that it expects to expand the
> program to other boroughs in New York City and that it is exploring
> the possibility of offering discounted fuel to residents in Maine,
> Rhode Island, Connecticut and Pennsylvania.
>
> However, in all of Illinois, only about 12,000 households use heating oil.
>
> So instead of fuel for heat, Citgo representatives offered the CTA a
> 40-50 percent discount on diesel fuel for buses to benefit Chicagoans
> most in need of relief from soaring oil and gas prices this winter.
>
> "We didn't know how else to reach enough people," said Consul Sanchez.
>
> Another difference between the Chicago offer and the programs enacted
> in the Northeast is that Citgo proposed to work with a government
> agency, rather than nonprofit organizations. The CTA relies on the US
> federal government - which is in a constant war of words with
> Venezuelan President Chavez - for much of its funding. In fact, just
> weeks after Citgo made its offer to the CTA, Congress signed the
> Federal Transportation Appropriations bill, allocating $89 million in
> infrastructure project funds the CTA had been seeking for years.
>
> Representatives from the US State Department and city officials,
> including Aldermen involved in the negotiations and the Chicago
> Mayor's Office, refused to respond to queries about whether
> international politics played any part in the CTA's rejection of
> Citgo's offer.
>
> Some critics of President Chavez say his offer of cheap fuel to
> low-income communities in the US is a political ploy to win the
> support of the American people. Larry Birns, executive director of
> the progressive think tank, Council on Hemispheric Affairs, said
> Chavez is trying to counter Bush administration criticisms with
> "petro-diplomacy." Birns, who criticizes both US policy toward
> Venezuela and Chavez's confrontational style, told TNS, "There is a
> certain amount of humor involved in needling the Bush administration
> for neglecting its own while attempting to stand tall in Latin
> America."
>
> However, as Mark Weisbrot of the Center for Economic and Policy
> Research - another progressive think tank - pointed out, the
> Venezuelan government has been providing cheap fuel to several
> countries in Latin America. Weisbrot is a staunch supporter of the
> Chavez administration.
>
> "It is part of [Venezuela's] policy to compensate for the impact of
> the high oil prices on poor people," he said. "They don't have any
> grudge against the American people; it's just the Bush administration
> that they don't like."
>
> Consul Sanchez echoed this sentiment. "Any corporation that makes a
> big profit in a community owes that community something in return,"
> he said. With one of Citgo's three light-oil refineries located in
> nearby Lemont, 30 minutes outside the city, Sanchez said, Venezuela
> has "a special relationship with people and community organizations
> in Chicago."
>
> There remains no sign, however, that the government of Chicago will
> take Citgo and Venezuela up on the unilateral offer.
>
> © 2005 The NewStandard.
>


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