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November 3, 2006

Corruption - A $6 Million Gift To Oil Company

-- by Dave Johnson

In years past this alone would have been a major story and the corruption involved would not be tolerated. But this year it's just one more thing - a relatively small thing. We all know what is behing it - payments from lobbyists. The people involved will be leaving the government soon to "work" at the oil companies for unusually high pay. Gov't drops demand for Chevron royalty,

The department's Minerals Management Service had maintained that Chevron owed an additional $6 million for gas it took under federal leases in the Gulf between 1996 and 2002 and sold to Dynegy Inc., a company Chevron partially owns.

Essentially, the government argued that Chevron undervalued the gas it sold to Dynegy. Chevron paid royalties based on a price that didn't represent fair market value, the government auditors said.

But last summer, the government quietly rescinded its demand for the additional royalties. That decision was reported Tuesday by the New York Times, based on documents the newspaper obtained through a freedom of information request.

The story comes on the same day as a larger story about the Republican Congress getting rid of the only agency conducting ANY oversight of Iraq spending. This is just two stories about corruption today. There will be two more tomorrow and the day after...

Posted by Dave Johnson at November 3, 2006 9:25 PM

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