Largest Federal Divestiture Completed, Elk Hills Reserve Transferred To Private Owner

I know this is an old article, but it seemed to me to be interesting in view of various things going on right now.

Funny, I don't see Al Gores name in here anywhere.
Didn't he make some money on this deal?

includes $36 million from the Elk Hills proceeds to be transferred to the California State Teachers Retirement System --

Details, Details.

Yes, it was a Gore payoff. Ray Irani, Oxy CEO did not give millions to the Democrats (and sleep in the Lincoln Bedroom) for nothing.

bttt

Good catch! Here are only two of many articles about Gore and Occidental. That's one reason I thought the original article was timely. Slick and Al wanted to make it seem that the Elk Hills divesture was strictly in the best interest of the country, and "to improve the government". Ha!

http://www.moles.org/ProjectUnderground/drillbits/5_08/2.html
Al Gore family politicians have long been beneficiaries and providers of influence to Occidental, leading its founder and long-time CEO Armand Hammer to refer to Senator Al Gore Sr. (the vice president's father) as "in his back pocket". Hammer later extended land deals, royalties, and campaign funds to Al Gore Jr.

Gore faces protests over Occidental Petroleum shares
http://www.ran.org/news/newsitem.php?id=368
August 15, 2000 By Anthony Boadle

LOS ANGELES - Hundreds of activists, joined by Hollywood stars, questioned Vice President Al Gore's credentials as an environmental champion on Tuesday, calling on him to divest his family shares in Occidental Petroleum Corp. The Los Angeles-based company has come under fire from environmentalists for its plans to drill for oil on land claimed by the U'wa Indian tribe in northeastern Colombia.

More than 1,000 environmental activists and anti-capitalist demonstrators marched through downtown Los Angeles to the Democratic Convention where Gore will accept the party's presidential nomination on Thursday.

Today's signing completed a privatization process that began in 1995 when the Clinton Administration proposed selling Elk Hills.

Incorrect. Ronald Reagan first proposed the sale. Rats blocked it for years. Only after the GOP took Congress could the deal be done. The field was sold at open bid. The amount offered was far in excess of what the GAO thought. Elk Hills had been a White Elephant, costing taxpayers more every year. Yes, Gore is corrupt but Russia and Asia, not Elk Hills is where he fed.

"Today's signing completed a privatization process that began in 1995 when the Clinton Administration proposed selling Elk Hills."

This came from the Clinton DOE; maybe you could post a website that would give us more info. I'm open to learning anything I can about this.

Wall Street Journal had a editorial praising the sale when it occurred. I'll look for it or maybe someone else has it.

Clinton was slick in his dealings with business. He did things Democrats had blocked Republican presidents from doing. Exporting oil from Alaska was another. Republicans and oil companies had wanted a free market since the first well was drilled on the North Slope. Democrats blocked it. In 1992, the DNC convention headquarters was at the ARCO building in LA. The company just about funded the convention. Shortly after, the law was changed and ARCO was able to ship oil to new refineries it had built in China.

My mistake. The editorial was in IBD, not the WSJ:

President Ronald Reagan got the ball rolling to sell the Elk Hills Naval Petroleum Reserve near Bakersfield, Calif., to private interests 10 years ago. It was finally sold on February 5.
The transaction had to await the election of a Republican Congress, according to political observers. But preparations for the auction and the sale itself were textbook examples of how privatizations should be handled, they say.
Elk Hills had been purchased by the government in 1912 to provide oil for the U.S. Navy.
But after being transferred to the Energy Department in 1977, production dropped from 144,000 barrels a day in 1981 to just 66,000 barrels daily in 1995 -- and costs were climbing out of control.
Congress and the President agreed in 1996 to privatization and the Energy Department was assigned the task of preparing for the sale this year.
Independent experts and advisers were brought in to evaluate the field and suggest a minimum acceptable bid.
Bid openings took place last October and a sale-closing deadline was set for this February.
Out of 22 bidders, Occidental Petroleum won at $3.65 billion -- about twice the Congressional Budget Office's estimate of the field's value only a year before. More than $3 billion of that will go toward paying down the national debt.
Observers credit the successful sale to Congress for its detailed direction and the Energy Department for its methodical planning. The exercise should serve as a model for future privatizations -- such as those of the air traffic control system, federal housing finance, the U.S. Postal Service, Amtrak, prisons and military commissaries, among others.
Source: Peter Hannaford (former member of President Reagan's Commission on Privatization), "Elk Hills is a Lesson for Privatization," Investor's Business Daily, March 30, 1998.

I seem to remember something about Armand Hammer having close ties to officials in the Soviet gov't

Armand Hammer/Occidental Petroleum
658 pages of information
http://foia.fbi.gov/hammerop.htm

Noted entrepreneur and art collector Armand Hammer had extensive import-export dealings with the Soviet Union and personally negotiated with Premier Lenin during the 1920's. He later went into the oil business and became head of the Occidental Petroleum Corporation.

http://www.bannerofliberty.com/OS9-00MQC/9-28-2000.1.html

Clinton-Gore Appears to have Authorized the Sale of Elk Hills Naval Petroleum to Gore's Friends at Occidental
Talk Show Challenge Leads to Interesting Find on Gore's Occidental Petroleum Stock

By: Mary Mostert, Analyst, Original Sources (www.originalsources.com)

September 28, 2000

Early this morning I was Mark Edward's guest on Take Back Our Country on KDWN in Las Vegas, NV to talk about my recent article that outlined the incredibly cozy relationship between Al Gore and Occidental Petroleum. During the show I was reading from a presentation made September 6, 2000 by Occidental's president, Dr. Dale Laurance at a CEO energy conference in which he reported the incredible profits from the company's acquisition of the Elk Hills Naval Petroleum Reserves in 1998.

While I was on the air, a caller challenged me to explain why the Republican Congress wasn't just as guilty as Al Gore in selling the Reserve to Gore's friends at Occidental Petroleum. That prompted me to search for the authorization of Congress that Charles Lewis from the Center of Public Integrity and author of The Buying of the President 2000, said had been voted on. He also said that there was competitive bidding and 22 bids were received.

So far, I have found no evidence of a bill passed by Congress authorizing the sale, although one was introduced. It never got out of committee.
However, Laurance reported that Occidental DID acquire Elk Hills:
"With the recent acquisition of Altura, we are now the largest oil producer in the state of Texas. The Altura properties complement our other holdings in the Permian Basin, which have been consolidated as Oxy Permian.
"In California we have assembled a large portfolio of exploration and production acreage since our acquisition of Elk Hills in 1998."

Two years ago Occidental acquired the proven oil reserve at Elk Hills in California for a mere $3.67 billion, which is about $78,085 an acre. That's an incredibly low price for proven oil wells. The transaction, made as part of what we've been told was one of Gore's "reinventing government" plans, sold the oil land to a very old and dear friend of Al Gore's, and a company in which he owns a large amount of stock. In fact, in 1992 the value of stock owned by Al Gore's family in Occidental Petroleum Stock was listed at $680,000.

On January 26, 1996, Senator Dale Bumpers of Arkansas introduced a bill, HR 1530, to create a Government corporation to own and operate the Naval Petroleum Reserves, and Naval Oil Shale Reserves and prepare for the privatization of the Elk Hills Naval Petroleum reserve. The bill did not get out of Committee.

On March 5, 1996, an executive communication to the House of Representatives, stated:
"2175. A letter from the Secretary of Energy, transmitting notification of the Department's intention to contract the sale of Naval Petroleum Reserve Numbered 1, also known as the Elk Hills Reserve without providing for the use of competitive procedures; to the Committee on National Security

So far, that was the only reference to the actual procedures of the sale that I have been able to find in Congressional records. The Environmental Impact study required by law before the transaction, was written by ICF Kaiser International, which had, on its board of director's, Al Gore's campaign manager, Tony Coelho.

In June Al Gore brought up the fact that oil companies were making quite a bit of money and linked George W. Bush to the problem of higher gas prices, accusing him of "being a good friend to oil and gas companies," because oil companies, especially small, independent oil producers, contributed to Bush's campaign. Somehow, the people were encouraged to believe, that made Bush responsible for the increase in gas prices at the pump. Gore called for an "investigation."

While the "investigation" never actually amounted to anything, my own investigation has certain uncovered some interesting facts, which Mark Edwards' listeners found fascinating.

It seems that Occidental Petroleum, which is the largest oil producer in Texas, not the small independents that George W. Bush has worked with, has gone from a profit of $36 million in the fourth quarter of 1998 when they purchased Elk Hills, the largest transfer of public property to a private company in US history, to $557 million in the second quarter of 2000. The profit increase for Occidental Petroleum from that helpful little bit of "reinventing government" was 1547% in 6 quarters, or 18 months.

Laurance reported this month that:
"Elk Hills is a major acquisition which we completed in early 1998. By the end of this year we expect cumulative free cash flow, after accounting for capital expenditures, to rise to an estimated $1.2 billion - at current strip prices."

Other areas of interest, where Occidental Petroleum has acquired or is poised to acquire oil and natural gas wells, include Colombia, Indonesia and Libya. Of the Indonesian property Laurance said,
"Another example of a transitional asset is the giant Tangguh gas project in Indonesia, which has the potential to become a core asset. This is the premier natural gas project in Asia. The project is supported by 14.5 trillion cubic feet of proved reserves. Oxy's share is 2.3 trillion cubic feet. These reserve additions will more than double Oxy's worldwide gas reserves to 4.2 trillion cubic feet."

In June, ABC reported:
June 19 - "Citing evidence of rapidly rising profits, Vice President and presidential candidate Al Gore said big oil companies should be more aggressively investigated for price gouging and colluding, as gas prices are hitting record highs across the country.
" 'I think its time for a much broader investigation,' Gore told ABCNEWS in an interview today.
" 'I just learned that soon the figures will be announced that the big oil companies' profits have gone up 500 percent in the first part of this year, just at the time when these prices are going sky high in the Midwest. I think that justifies a much broader investigation into possible collusion, price gouging and antitrust violations,' he said.

"Gore's comments come as U.S. motorists are fuming over having to pay more than $2 per gallon, roughly double what it was a year ago."

The media, of course, didn't think to investigate Al Gore and his ties with Occidental Petroleum. Occidental Petroleum profits went from $65 million in March of 1999 when the Clinton-Gore administration began bombing Yugoslavia to $557 million in July 1999.

The caller on the Mark Edwards show asked me if the Republicans weren't just as "guilty" as Al Gore, since they approved the huge military bill that Charles Lewis said enabled Occidental to purchase the Elk Hill Naval Petroleum Reserve.

The answer to that is "no." First, so far I haven't been able to find any bill voted on by members of Congress that authorized the sale of Elk Hill Naval Petroleum Reserve. The bill introduced by Dale Bumpers in January 1996 never passed. The huge defense appropriations bill H.R.3230 which was introduced April 1996 by Rep. Spence has no provision for the sale of Elk Hill oil rights and property. . It's only provision allows for the sale of the OIL from Elk Hill at 90% of the world market price.

The only authorization I can find for the sale of the entire facility came from the Executive branch - not Congress. The Clinton-Gore Administration appears to have merely INFORMED Congress, and those messages are read usually when there's rarely more than a half-dozen members present, not ASKED congress. Whatever transpired, there was no debate in Congress on the subject and no approval BY Congress for the sale to Occidental that I can find. Apparently it was done entirely within the Executive Branch, just as was the case in the 1920s in the Teapot Dome scandal.

So, what we have is the largest transfer of public land to a private party in the history of the United States taking place at the same time the same administration has seized huge amounts of land for "memorials" - some of which was land with valuable minerals and oil shale on them.

There was no member of Congress, with the possible exception of Sen. Dale Bumpers, who seemed to be within the circle of those making the deal. Republican members of congress did not own large amounts of Occidental Stock and, besides, I can find no record of a vote on the subject of the transfer of Elk Hills to Al Gore's friends at Occidental.

Perhaps during the debate next week a couple of questions on this could be asked Al Gore on this subject. Like, "Mr. Gore, you and your family have had a long association with Occidental Petroleum, since your father was a member of its board of directors. Could you tell us exactly who authorized the sale of the Elk Hills Naval Petroleum reserve's 47,000 acres to Occidental for only $3.67 billion? (end of article)

From www.osti.gov

"With the enactment of Title XXXIV of the National Defense Authorization Act for fiscal year 1996, DOE was directed to sell the U.S. interest in NPR 1, Elk Hills, California, by February 10, 1998."

http://www.google.com/unclesam only searches government sites. Lots of imformation on Elk Hills.

OK...think I know how this started. A FOIA request was made to the Office of Fossil Energy (which handled the sale) to get the names of the unsucessful bidders. The FE withheld information (not unusual apparently and allowed by law). The Center for Public Integrity sued and the DOE ordered the release in 2000.

That is as far as I've gotten....wish this were all spelled out in one place.

Seems the bids should have been public in the first place but then I don't know the oil business. So far, the sale was legally authorized by Congress, both parties wanted it and Elk Hills went out to competitive bid.

Now if Gore and Clinton rigged the bidding.....

"Now if Gore and Clinton rigged the bidding....."

Say it isn't so!! NO WAY!! LOL!

Tonight Michael Savage was talking about this a bit.

Gore's Elk Hills/Occidental Oil Scandal: Bigger Than Teapot Dome

"Tonight Michael Savage was talking about this a bit.
Gore's Elk Hills/Occidental Oil Scandal: Bigger Than Teapot Dome"

I know! I usually listen to him, and was surprised to hear him bring this up! And you were kind to add a note to my original post...Thanks!

Ironically, I was reading some of the articles on www.cpusa.org this evening, too...they were mentioning some of the same things Savage was discussing. The various talking points of not only the communists, but also of the 'progressives' and the left. Some pretty frightening stuff...and they ALL are hellbent on getting rid of President Bush.

Thanks!

No problem.

Some pretty frightening stuff...

Yup. Some will say my tin-foil is too tight, but today people just laugh when communist ties are talked about. People call the 'remaining communists' a bunch of harmless fringe kooks without realizing that most communists today call themselves enviromentalists, progressives, greens, and whatnot. They don't look at the platform of the Democrats, which for all intents and purposes is little diferent from what is espoused in The Communist Manifesto.

And all the while they go shop at Walmart and fund the largest communist nation to ever exist. But MY tin-foil is too tight...

and they ALL are hellbent on getting rid of President Bush.

While nobody could ever call me a Bush-Bot, I agree with Zell on this one, he is the right man, in the right place, at the right time. Now after he wins reelection, and we get some more real conservatives(hopefully libertarian leaning like Armey was, boy do I miss him) in both houses of Congress, it will be time to start going after the enemy within.

That is why the push for judges at the appellate level are so important. Janice Rodgers Brown is a gem. I would love to see her on the SCOTUS. To see her and Thomas fighting to more strictly interpret the Constitution than the other is just what this country needs.

Pres. Bush is telling the frogs that the water is getting hot, and the leftists don't like it. For once they are really exposed, it would be generations before they can get us back to the brink we are on of losing liberty, perhaps permanently.

Comming up on CNBC's Capital Report next is a look into the funding of Moveon.org.