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http://www.truthout.org/docs_2005/072705T.shtml
$1.5 Billion Giveaway Secretly Slipped into Energy Bill, Waxman Says
By Rep. Henry Waxman
YubaNet.com
Wednesday 27 July 2005
In a letter to Speaker Hastert, Rep. Waxman writes that after the
energy legislation was closed to further amendment in the recently
concluded conference, a $1.5 billion provision benefiting oil and gas
companies, Halliburton, and Sugar Land, Texas, was mysteriously inserted
in the text.
The text of the letter is below:
The Honorable J. Dennis Hastert
Speaker
US House of Representatives
H232 Capitol
Washington, DC 20515-6501
Dear Mr. Speaker:
I am writing to draw to your attention a provision in the Energy
Conference Report that raises serious procedural and substantive
concerns. At its essence, this provision is a $1.5 billion giveaway to
the oil industry, Halliburton, and Sugar Land, Texas. The provision was
inserted into the energy legislation after the conference was closed, so
members of the conference committee had no opportunity to consider or
reject this measure. Before the final energy legislation is brought to
the House floor, this provision should be deleted.
The provision at issue is a 30-page subtitle called
"Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum
Resources." This subtitle, which was taken from the House-passed energy
bill, was mysteriously inserted in the final energy legislation after
the legislation was closed to further amendment. The conferees were told
that they would have the opportunity to consider and vote on the
provisions in the conference report. But the subtitle was not included
in the base text circulated to conferees, and it was never offered as an
amendment.
Instead, the new subtitle first appeared in the text of the energy
legislation only after Chairman Barton had gaveled the conference over.
Obviously, it would be a serious abuse to secretly slip such a costly
and controversial provision into the energy legislation.
On the merits, the subtitle is an indefensible giveaway to one of
the most profitable industries in America. The provision establishes a
$1.5 billion fund, up to $550 million of which would be dedicated direct
spending, which is not subject to the normal congressional
appropriations process. Although the name of the subtitle refers to
"ultra-deepwater and unconventional natural gas," it appears that the
$1.5 billion fund created by the subtitle can in fact be used for many
oil and gas projects. According to the language of the subtitle, oil and
gas companies can apply for funds for a wide variety of activities,
including activities involving "innovative exploration and production
techniques" or "enhanced recovery techniques." While oil and gas
companies could be required to contribute to the costs of their
projects, the subtitle expressly provides that the Department has
discretion to reduce or eliminate any such contribution.
The subtitle appears to steer the administration of 75% of the $1.5
billion fund to a private consortium located in the district of Majority
Leader Tom DeLay. Ordinarily, a large fund like this would be
administered directly by the government. The subtitle, however, directs
the Department to "contract with a corporation that is constructed as a
consortium." The leading contender for this contract appears to be the
Research Partnership to Secure Energy for America (RPSEA) consortium,
housed in the Texas Energy Center in Sugar Land, Texas. Halliburton is a
member of RPSEA and sits on the board, as does Marathon Oil Company. The
subtitle provides that the consortium can keep up to 10% of the funds -
in this case, over $100 million - in administrative expenses.
The subtitle further provides that members of the consortium, such
as Halliburton and Marathon Oil, can receive awards from the over $1
billion fund administered by the consortium.
In short, the subtitle provides that taxpayers will hire a private
consortium controlled by the oil and gas industry to hand out over $1
billion to oil and gas companies. There is no conceivable rationale for
this extraordinary largess. The oil and gas industry is reporting record
income and profits. According to one analyst, the net income of the top
oil companies will total $230 billion in 2005. If Congress has an extra
$1.5 billion to give away, the money should be used to help families
struggling to pay for soaring gasoline prices - not to further enrich
oil and gas companies that are rolling in profits.
In recent years, Congress has been repeatedly embarrassed by the
mysterious insertion of provisions in omnibus legislation. Last year,
for example, we learned only after House action that the 3,000 page,
$388 billion omnibus spending bill allowed members and staff of the
Appropriations Committee to examine the tax returns of ordinary
Americans. We should not allow this to happen again. The Energy
Conference Report should not be brought to the House floor until this
objectionable provision is deleted and there is ample opportunity for
members to read the legislation and delete any other problematic provisions.
Thank you for your attention to this problem.
Sincerely,
Henry A. Waxman
Ranking Minority Member
cc: The Honorable Nancy Pelosi
http://www.truthout.org/docs_2005/072705T.shtml
$1.5 Billion Giveaway Secretly Slipped into Energy Bill, Waxman Says
By Rep. Henry Waxman
YubaNet.com
Wednesday 27 July 2005
In a letter to Speaker Hastert, Rep. Waxman writes that after the
energy legislation was closed to further amendment in the recently
concluded conference, a $1.5 billion provision benefiting oil and gas
companies, Halliburton, and Sugar Land, Texas, was mysteriously inserted
in the text.
The text of the letter is below:
The Honorable J. Dennis Hastert
Speaker
US House of Representatives
H232 Capitol
Washington, DC 20515-6501
Dear Mr. Speaker:
I am writing to draw to your attention a provision in the Energy
Conference Report that raises serious procedural and substantive
concerns. At its essence, this provision is a $1.5 billion giveaway to
the oil industry, Halliburton, and Sugar Land, Texas. The provision was
inserted into the energy legislation after the conference was closed, so
members of the conference committee had no opportunity to consider or
reject this measure. Before the final energy legislation is brought to
the House floor, this provision should be deleted.
The provision at issue is a 30-page subtitle called
"Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum
Resources." This subtitle, which was taken from the House-passed energy
bill, was mysteriously inserted in the final energy legislation after
the legislation was closed to further amendment. The conferees were told
that they would have the opportunity to consider and vote on the
provisions in the conference report. But the subtitle was not included
in the base text circulated to conferees, and it was never offered as an
amendment.
Instead, the new subtitle first appeared in the text of the energy
legislation only after Chairman Barton had gaveled the conference over.
Obviously, it would be a serious abuse to secretly slip such a costly
and controversial provision into the energy legislation.
On the merits, the subtitle is an indefensible giveaway to one of
the most profitable industries in America. The provision establishes a
$1.5 billion fund, up to $550 million of which would be dedicated direct
spending, which is not subject to the normal congressional
appropriations process. Although the name of the subtitle refers to
"ultra-deepwater and unconventional natural gas," it appears that the
$1.5 billion fund created by the subtitle can in fact be used for many
oil and gas projects. According to the language of the subtitle, oil and
gas companies can apply for funds for a wide variety of activities,
including activities involving "innovative exploration and production
techniques" or "enhanced recovery techniques." While oil and gas
companies could be required to contribute to the costs of their
projects, the subtitle expressly provides that the Department has
discretion to reduce or eliminate any such contribution.
The subtitle appears to steer the administration of 75% of the $1.5
billion fund to a private consortium located in the district of Majority
Leader Tom DeLay. Ordinarily, a large fund like this would be
administered directly by the government. The subtitle, however, directs
the Department to "contract with a corporation that is constructed as a
consortium." The leading contender for this contract appears to be the
Research Partnership to Secure Energy for America (RPSEA) consortium,
housed in the Texas Energy Center in Sugar Land, Texas. Halliburton is a
member of RPSEA and sits on the board, as does Marathon Oil Company. The
subtitle provides that the consortium can keep up to 10% of the funds -
in this case, over $100 million - in administrative expenses.
The subtitle further provides that members of the consortium, such
as Halliburton and Marathon Oil, can receive awards from the over $1
billion fund administered by the consortium.
In short, the subtitle provides that taxpayers will hire a private
consortium controlled by the oil and gas industry to hand out over $1
billion to oil and gas companies. There is no conceivable rationale for
this extraordinary largess. The oil and gas industry is reporting record
income and profits. According to one analyst, the net income of the top
oil companies will total $230 billion in 2005. If Congress has an extra
$1.5 billion to give away, the money should be used to help families
struggling to pay for soaring gasoline prices - not to further enrich
oil and gas companies that are rolling in profits.
In recent years, Congress has been repeatedly embarrassed by the
mysterious insertion of provisions in omnibus legislation. Last year,
for example, we learned only after House action that the 3,000 page,
$388 billion omnibus spending bill allowed members and staff of the
Appropriations Committee to examine the tax returns of ordinary
Americans. We should not allow this to happen again. The Energy
Conference Report should not be brought to the House floor until this
objectionable provision is deleted and there is ample opportunity for
members to read the legislation and delete any other problematic provisions.
Thank you for your attention to this problem.
Sincerely,
Henry A. Waxman
Ranking Minority Member
cc: The Honorable Nancy Pelosi
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