Quixotic ’80 Campaign Gave Birth to Kochs’ Powerful Network

The Libertarian Party’s 1980 presidential candidate, Ed Clark, center, with his running mate, David H. Koch. Credit Randy Rasmussen/Associated Press

He backed the full legalization of abortion and the repeal of laws that criminalized drug use, prostitution and homosexuality. He attacked campaign donation limits and assailed the Republican star Ronald Reagan as a hypocrite who represented “no change whatsoever from Jimmy Carter and the Democrats.”

It was 1980, and the candidate was David H. Koch, a 40-year-old bachelor living in a rent-stabilized apartment in New York City. Mr. Koch, the vice-presidential nominee for the Libertarian Party, and his older brother Charles, one of the party’s leading funders, were mounting a long-shot assault on the fracturing American political establishment.

The Kochs had invested hundreds of thousands of dollars in the burgeoning libertarian movement. In the waning days of the 1970s, in the wake of Watergate, Vietnam and a counterculture challenging traditional social mores, they set out to test just how many Americans would embrace what was then a radical brand of politics.

It was the first and only bid for high office by a Koch family member. But much of what occurred in that quixotic campaign shaped what the Kochs have become today — a formidable political and ideological force determined to remake American politics, driven by opposition to government power and hostility to restrictions on money in campaigns.

Read more at The New York Times

Koch Brothers Are Principal Stakeholders in Canadian Tar Sands

“The biggest lease holder in Canada’s oil sands isn’t Exxon Mobil or Chevron. It’s the Koch brothers.” via the Washington Post.

David Koch, executive vice president of Koch Industries (AP Photo/Mark Lennihan)

You might expect the biggest lease owner in Canada’s oil sands, or tar sands, to be one of the international oil giants, like Exxon Mobil or Royal Dutch Shell. But that isn’t the case. The biggest lease holder in the northern Alberta oil sands is a subsidiary of Koch Industries, the privately-owned cornerstone of the fortune of conservative Koch brothers Charles and David.

The Koch Industries subsidiary holds leases on 1.1 million acres — an area nearly the size of Delaware — in the oil sands region of Alberta, Canada, according to an activist group that studied Alberta provincial records. The Post confirmed the group’s findings with Alberta Energy, the provincial government’s ministry of energy. Separately, industry sources familiar with oil sands leases said Koch’s lease holdings could be closer to two million acres. The companies with the next biggest net acreage positions in oil sands leases are Conoco Phillips and Shell, both close behind.

What is Koch Industries doing there? The company wouldn’t comment on its holdings or strategy, but it appears to be a long-term investment that could produce tens of thousands of barrels of the region’s thick brand of crude oil in the next three years and perhaps hundreds of thousands of barrels a few years after that.

The finding about the Koch acreage is likely to inflame the already contentious debate about the Keystone XL Pipeline and spur activists and environmentalists seeking to slow or stop planned expansions of production from the northern Alberta oil sands, or tar sands. Environmental groups have already made opposing the pipeline their leading cause this spring and Senate Majority Leader Harry Reid has called the Koch brothers Charles and David “un-American” and “shadowy billionaires.”

The link between Koch and Keystone XL is, however, indirect at best. Koch’s oil production in northern Alberta is “negligible,” according to industry sources and quarterly publications of the provincial government. Moreover, Koch has not reserved any space in the Keystone XL pipeline, a process that usually takes place before a pipeline is built. The pipeline also does not run anywhere near Koch’s refining facilities. And TransCanada, owner of the Keystone routes, says Koch is not expected to be one of the pipeline’s customers.

Read more at the Washington Post

Support quality journalism. Subscribe to the Washington Post.

Elizabeth Warren Comes Down Hard Against Global Warming, Separates Herself From Hillary Clinton On Climate Change

United States Senator Elizabeth Warren
By Consumer Financial Protection Bureau (Community Banks Roundtable) [Public domain], via Wikimedia Commons

On Friday, December 20th, Democratic U.S. Senator Elizabeth Warren finally separated herself clearly from former U.S. Secretary of State Hillary Clinton, regarding the issue of climate change and global warming. Here is the story:TransCanada Corporation wants to build the Keystone XL Pipeline to carry oil from Alberta Canada’s tar sands to two refineries owned by Koch Industries near the Texas Gulf Coast, for export to Europe; and Hillary Clinton has helped to make that happen, but Elizabeth Warren has now taken the opposite side.

Secretary of State Clinton, whose friend and former staffer Paul Elliot is a lobbyist for TransCanada, had worked behind the scenes to ease the way for commercial exploitation of this, the world’s highest-carbon-emitting oil, 53% of which oil is owned by America’s Koch Brothers. (Koch Industries owns 63% of the tar sands, and the Koch brothers own 86% of Koch Industries; Elaine Marshall, who is the widow of the son of the deceased Koch partner J. Howard Marshall, owns the remaining 14% of Koch Iindustries.)

David Goldwyn, who “served as Secretary of State Hillary Clinton’s Special Envoy and Coordinator for International Energy Affairs,” is yet another lobbyist for TransCanada. So, TransCanada has two of Hillary’s friends working for them. Misters Elliot and Goldwyn thus worked intimately with Hillary’s people to guide them on selecting a petroleum industry contractor (not an environmental firm, much less any governmental agency) to prepare the required environmental impact statement for this proposed pipeline.

Hillary Clinton as the Secretary of State had already displayed a record of carrying out the policies that were being promoted by her lobbyist friends, when she did everything possible, early in President Obama’s first term, to support U.S. funding for the fascist junta in Honduras that perpetrated a coup d’etat on 28 June 2009 overthrowing that nation’s popular progressive democratically elected President, and who then installed their own regime, and promptly placed their country into a continuing violent terror that caused Honduras ever since to be the nation with the highest murder rate in the world. Hillary’s lobbyist friend in that particular matter was Lanny Davis, who also is an occasional Fox News contributor.

Secretary Clinton’s State Department thus allowed the environmental impact statement on the proposed Keystone XL Pipeline to be performed by a petroleum industry contractor that was chosen by the company that was proposing to build and own the pipeline, TransCanada. That contractor had no climatologist, and their resulting report failed even at its basic job of estimating the number of degrees by which the Earth’s climate would be additionally heated if this pipeline is built and operated. Their report ignored that question, and instead evaluated the impact that climate change would have on the pipeline, which was estimated to be none.

President Obama himself is now trying to force the European Union to relax their anti-global-warming regulations so as to permit them to import the Kochs’ dirty oil. His agent in this effort is his new U.S. Trade Representative, Michael Froman, from Wall Street.

But on December 20th, Senator Warren signed onto a letter criticizing the Obama Administration’s apparent effort to force the European Union to agree to purchase this oil. As the Huffington Post’s Kate Sheppard reported, “Six senators and 16 House members, all Democrats, wrote a letter to Froman on Friday asking him to elaborate on his position on the matter. ‘If these reports are accurate, USTR’s [the U.S. Trade Representative’s] actions could undercut the EU’s commendable goal of reducing greenhouse gas emissions in its transportation sectors,” these 22 Democratic lawmakers wrote.

Read more at the Huffington Post

“Dark Money” Funds Climate Change Denial Effort

A Drexel University study finds that a large slice of donations to organizations that deny global warming are funneled through third-party pass-through organizations that conceal the original funder

A shift to untraceable donations by organizations denying climate change undermines democracy, according to the author of a new study tracking contributions to such groups.

Image: Wikimedia Commons/Carol M. Highsmith

The largest, most-consistent money fueling the climate denial movement are a number of well-funded conservative foundations built with so-called “dark money,” or concealed donations, according to an analysis released Friday afternoon.

The study, by Drexel University environmental sociologist Robert Brulle, is the first academic effort to probe the organizational underpinnings and funding behind the climate denial movement.

It found that the amount of money flowing through third-party, pass-through foundations like Donors Trust and Donors Capital, whose funding cannot be traced, has risen dramatically over the past five years.

In all, 140 foundations funneled $558 million to almost 100 climate denial organizations from 2003 to 2010.

Meanwhile the traceable cash flow from more traditional sources, such as Koch Industries and ExxonMobil, has disappeared.

The study was published Friday in the journal Climatic Change.

“The climate change countermovement has had a real political and ecological impact on the failure of the world to act on global warming,” Brulle said in a statement. “Like a play on Broadway, the countermovement has stars in the spotlight – often prominent contrarian scientists or conservative politicians – but behind the stars is an organizational structure of directors, script writers and producers.”

“If you want to understand what’s driving this movement, you have to look at what’s going on behind the scenes.”

Read more at Scientific American

Koch: 1996 marks beginning of national efforts

To see the political evolution of Charles and David Koch, start in 1996. President Bill Clinton was fighting Bob Dole to stay in the White House, and Republicans were struggling to keep control of the House of Representatives after winning a majority there for the first time in 42 years.

The election would mark the first Republican victory linked publicly to Koch money and established the brothers’ pattern of influencing elections through tax-exempt groups.

The Kansas brothers kept a low profile in the months leading up to the 1996 election. Koch Industries gave $320,800 to congressional candidates that year — about a fifth of the $1.6 million the company would later give in 2012, according to the Center for Responsive Politics.

Yet Senate campaign finance investigators suspected the brothers funneled millions of dollars in the final months through secretive groups to run attack ads that helped Republicans win seats in Congress. The massive ad campaigns likely changed the outcome of close congressional races, investigators said, including four races in the Kochs’ home state of Kansas.

Read more at Investigative Reporting Workshop