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Congress passes the Energy Policy Act (EPA) of 2005. The EPA is the product of the secret Cheney energy task force (see January 29, 2001 and May 16, 2001). The act provides $14.5 billion in tax breaks for corporate energy providers, primarily oil, coal, and nuclear power companies. It contains an array of odd and obscure provisions helping industrialists, many generated by the lobbyists and corporate executives who helped craft the bill (see May 10, 2005). It does nothing to discourage consumption by raising fuel efficiency standards, and does little to address the sharply rising price of oil. What it does, primarily, is give huge financial and regulatory breaks to the energy industry. [Savage, 2007, pp. 360]

Entity Tags: Richard (“Dick”) Cheney, National Energy Policy Development Group

Timeline Tags: US Environmental Record

A report authored by Greg Muttitt of PLATFORM concludes that Iraq would not benefit from an oil policy based on production sharing agreements (PSAs). According to Muttitt, the PSAs would cost Iraq “hundreds of billions of dollars in potential revenue,” while oil company profits would see annual rates of return “ranging from 42 percent to 62 percent for a small field, or 98 percent to 162 percent for a large field.” Muttitt’s study also warns that PSAs would result in Iraqis forfeiting control of their oil industry to foreign oil companies. For example, Iraq would lose its ability to control the depletion rate of its own oil resources. “As an oil-dependent country, the depletion rate is absolutely key to Iraq’s development strategy, but would be largely out of the government’s control,” Muttitt notes. Furthermore, PSAs, which typically have fixed terms of between 25 and 40 years, often include “stabilization clauses” that grant oil companies immunity from all future laws, regulations, and government policies. If Iraq were to sign such PSAs, future Iraqi governments would be unable to change tax rates or laws regulating labor standards, workplace safety, or the environment. PSA agreements also tend to put the host government at a disadvantage when there is a dispute with the contracted oil company. Most PSAs stipulate that disputes must be resolved in international arbitration tribunals where they are generally presided over by corporate lawyers and trade negotiators who will only consider narrow commercial issues without regard to Iraqi public interest. Muttitt’s report argues that Iraq has several options for developing its oil industry that would be far more beneficial to Iraq than relying on PSAs. One option would be for Iraq to hire specialist companies under short-term technical service contracts to provide expertise only when native expertise is lacking. There is no reason, Muttitt notes, for Iraq to give oil companies full control over the industry when Iraq has a highly-skilled oil sector workforce that is fully capable of managing the country’s oil production. All that’s needed, he says, is for them to receive training on the latest technologies. Until that is achieved, Iraq would be adequately served with a policy based on short-term technical service contracts. Muttitt also argues that Iraq has several options for acquiring the needed capital to jump start the oil sector. Foreign investment is neither the only, nor the most attractive solution for Iraq. He argues that using Iraqi money or borrowing funds would save Iraq billions of dollars in the long term. [Muttitt, 2005]

Entity Tags: Greg Muttitt

Timeline Tags: Iraq under US Occupation

Ahmed Chalabi, Iraqi deputy prime minister and former chair of the country’s Energy Council, says, “In order to make major quantum increases in oil, we need to have production sharing agreements, but that has to wait until after the formation of parliament.” [Reuters, 11/22/2005; Inter Press Service, 11/23/2005]

Entity Tags: Ahmed Chalabi

Timeline Tags: Iraq under US Occupation

December 18, 2005: Iraq Cuts Fuel Subsidies

The Iraqi government cuts subsidies on gasoline, diesel, kerosene, and cooking fuel in order to meet an IMF requirement that Iraq allow fuel prices to increase to levels on par with prices elsewhere in the Middle East. The Iraq government agreed to implement this reform, and a number of others, in exchange for having as much as 80 percent of its debts forgiven (see September 29, 2004 and November 22, 2004). The debts had accumulated during the rule of Saddam Hussein. Iraq’s rolling back of the fuel subsidies is followed by violent protests across the country. The price of cooking fuel immediately increases by about three-fold, while gasoline prices increase by a factor of five. Diesel fuel prices rise about nine-fold. [Associated Press, 12/19/2005; BBC, 12/30/2005; New York Times, 12/31/2005]

Entity Tags: Iraq

Timeline Tags: Iraq under US Occupation

Iraq’s new oil minister, Hussein al-Shahristani, says that Iraq will need international assistance and billions of dollars in investment to develop its oil sector. “There is need to pass an oil and gas law to guarantee the right conditions for international companies to help develop the Iraqi oil sector,” he says. [Dow Jones Newswires, 5/23/2006]

Entity Tags: Hussein al-Shahristani

Timeline Tags: Iraq under US Occupation

US Southern Command concludes in an internal report that efforts in Venezuela, Ecuador, and Bolivia to nationalize their petroleum industries pose a threat to US energy supplies. “Pending any favorable changes to the investment climate, the prospects for long-term energy production in Venezuela, Ecuador, and Mexico are currently at risk,” the report says. This assessment is based on the view that extending state control over oil supplies “will likely increase inefficiencies and… will hamper efforts to increase long-term supplies and production.” Energy from the region accounts for 30 percent of US energy imports. Commenting on the report, Colonel Joe Nunez, professor of strategy at the US Army War College in Carlisle, says that it is “incumbent upon the command to contemplate beyond strictly military matters.” [Financial Times, 1/26/2006]

Entity Tags: US Southern Command, Joe Nunez

Timeline Tags: US International Relations, US-Venezuela (1948-2005)

The US sends Washington, DC lawyer Ronald Jonkers to Iraq to work with Iraqi officials on the drafting of a new law that would govern private sector involvement in the development of Iraq’s oil. Jonkers is an attorney with Hills Stern & Morley. From 1992 to 2003 he served as assistant general counsel for the Overseas Private Investment Corporation, a US agency that provides financing and political risk insurance to US businesses investing abroad. [American Lawyer, 4/26/2007]

Entity Tags: Ronald Jonkers

Timeline Tags: Iraq under US Occupation

July 2006: Draft of Iraq Oil Law Completed

A draft for a new Iraq oil law is completed. The proposed law was drawn up by three Iraqis—Tariq Shafiq, Farouk al-Qassem, and Thamir al-Ghadban—who have been working on it for three months. Shafiq is the director of the oil consultant firm Petrolog & Associates and was the founding director of Iraq’s National Oil Company in 1964. Ghadban recently served as the country’s oil minister (see June 2004). [United Press International, 5/2/2007] One provision in the draft law lists production sharing agreements (PSAs) as one type of contract that could be used to govern private sector involvement in the development of Iraq’s oil sector. Under PSAs, oil companies would claim up to 75 percent of all profits until they have recovered initial drilling costs, after which point they would collect about 20 percent. These terms are more favorable to investors than typical PSAs, which usually give about 40 percent to the company before costs are recovered and only 10 percent afterwards. Even when the price of oil was as low as $25 per barrel, the lower paying PSAs were profitable for companies. Critics say that the oil companies want to negotiate and sign the PSAs with Iraq before the country is stabilized so they can argue that the political risk of doing business in Iraq warrants higher profit shares. But then they would wait until after the situation has improved before moving in. Iraq would be the first Middle Eastern country with large oil reserves to use PSAs. Other countries have avoided PSAs because they are widely thought to give more control to companies than governments. James Paul of the Global Policy Forum will tell the Independent: “The US and [Britain] have been pressing hard on this. It’s pretty clear that this is one of their main goals in Iraq.” The Iraqi authorities, he says, are “a government under occupation, and it is highly influenced by that. The US has a lot of leverage… Iraq is in no condition right now to go ahead and do this.” Critics also suggest the companies’ shares of profits should be lower than typical PSAs, if anything, since Iraq’s oil is so accessible and cheap to extract. Paul explains: “It is relatively easy to get the oil in Iraq. It is nowhere near as complicated as the North Sea. There are super giant fields that are completely mapped, [and] there is absolutely no exploration cost and no risk. So the argument that these agreements are needed to hedge risk is specious.” [Independent, 1/7/2007] Immediately after this draft is completed, it is shared with the US government and oil companies (see July 2006). In September it will be reviewed by the International Monetary Fund (see September 2006). Iraqi lawmakers will not see the document until early 2007. The provision mentioning PSAs will be axed from the final draft due to Iraqi opposition (see February 15, 2007).

Entity Tags: Thamir al-Ghadban, Farouk al-Qassem, Tariq Shafiq

Timeline Tags: Iraq under US Occupation

The US government and major oil companies are given the opportunity to review the latest draft of a new oil law for Iraq (see July 2006). The draft has yet to be seen by Iraqi lawmakers. [Independent, 1/7/2007]

Entity Tags: United States

Timeline Tags: Iraq under US Occupation

US Energy Secretary Samuel Bodman, on a visit to Baghdad, refers to the drafting of a new oil that is underway and says it is important that the Iraqi Parliament—which apparently is not involved in the drafting process—pass it soon. [Time, 2/28/2007] Iraq needs to “pass a new law, a new hydrocarbon law under which international companies will be able to make investments in Iraq,” he says. Opening up Iraq’s oil industry will help Iraq realize “its very considerable potential with the benefit of investments from the international community.” He adds that Prime Minister Nuri al-Maliki, along with the oil and electricity ministers, are “optimistic of passing that law by the parliament and they hope to pass such a law by end of this calendar year.” He says that US oil companies won’t consider investing in Iraq’s oil sector until “first there is security and second there is a hydrocarbon law that will delineate the rules of the road.” [Agence France-Presse, 7/18/2006]

Entity Tags: Nouri al-Maliki, Samuel W. Bodman

Timeline Tags: Iraq under US Occupation

Iraqi Oil Minister Hussein al-Shahristani tells the Financial Times that the drafting of a new oil law is underway and that Iraq’s parliament will hopefully pass it “by the end of the year.” He says the law “will open the door for the international companies to come and work in Iraq, and develop our new fields…. We have many, many fields that are waiting for development, (and) some of them are giant fields.” [Financial Times, 7/27/2007] Iraq’s legislators are apparently not involved in the drafting of the law. [Time, 2/28/2007]

Entity Tags: Hussein al-Shahristani

Timeline Tags: Iraq under US Occupation

The International Monetary Fund is reportedly given the opportunity to review the latest draft of Iraq’s proposed oil law. The draft was sent to the US government and oil companies in July (see July 2006). [Independent, 1/7/2007]

Entity Tags: International Monetary Fund

Timeline Tags: Iraq under US Occupation

A committee made up of ministers and politicians from the main Shiite, Sunni Arab, and Kurdish blocs begins final negotiations on a proposed oil law that will govern the development of Iraq’s oil sector. The latest draft of the oil law was completed several months ago (see July 2006). While Iraqi legislators have yet to see law, it has already been reviewed by the US government and major oil companies (see July 2006), as well as the International Monetary Fund (see September 2006). According to the New York Times, “Gen. George W. Casey Jr., the senior American commander here, and Zalmay Khalilzad, the American ambassador, have urged Iraqi politicians to put the oil law at the top of their agendas, saying it must be passed before the year’s end.” The major issue of contention concerns how oil revenue will be distributed. Most Sunni communities are located in provinces where there is little or no oil. Consequently, they are arguing that revenue should be controlled by the central government and then distributed equitably among Iraq’s provinces. Their position is supported by the Shiites. But the Kurds, who live in the oil-rich north, strongly disagree arguing that the constitution guarantees the regions absolute authority in those matters. [New York Times, 12/9/2006]

Entity Tags: George Casey, Zalmay M. Khalilzad, Iraq

Timeline Tags: Iraq under US Occupation

Robert Gates.Robert Gates. [Source: US Defense Department]In its final report, the Iraq Study Group (ISG) recommends significant changes to Iraq’s oil industry. The report’s 63rd recommendation states that the US should “assist Iraqi leaders to reorganize the national oil industry as a commercial enterprise” and “encourage investment in Iraq’s oil sector by the international community and by international energy companies.” The recommendation also says the US should “provide technical assistance to the Iraqi government to prepare a draft oil law.” [Iraq Study Group, 2006, pp. 57 pdf file] The report makes a number of recommendations about the US occupation of Iraq, including hints that the US should consider moving towards a tactical withdrawal of forces from that beleaguered nation. President Bush’s reaction to the report is best summed up by his term for the report: a “flaming turd.” Bush’s scatological reaction does not bode well for Secretary of State Condoleezza Rice’s own hopes that the administration will use the ISG report as a template for revising its approach to Iraq. This does not happen. Instead, Vice President Dick Cheney organizes a neoconservative counter to the ISG’s recommendations, led by the American Enterprise Institute’s Frederick Kagan. Kagan and his partner, retired general Jack Keane, quickly formulate a plan to dramatically escalate the number of US troops in Iraq, an operation quickly termed “the surge” (see January 10, 2007). The only element of the ISG report that is implemented in the Bush administration’s operations in Iraq is the label “a new way forward,” a moniker appropriated for the surge of troops. Administration officials such as Rice and the new defense secretary, Robert Gates, quickly learn to swallow their objections and get behind Bush’s new, aggressive strategy; military commanders who continue to support elements of the ISG recommendations, including CENTCOM commander General John Abizaid and ground commander General George Casey, are either forced into retirement (Abizaid) or shuttled into a less directly influential position (Casey). [Salon, 1/10/2007]

Entity Tags: American Enterprise Institute, Condoleezza Rice, Frederick Kagan, Iraq Study Group, Robert M. Gates, Jack Keane, George Casey, Richard (“Dick”) Cheney, George W. Bush, John P. Abizaid

Timeline Tags: Events Leading to Iraq Invasion, Iraq under US Occupation

The Guardian publishes an op-ed piece by Iraqi economist Kamil Mahdi under the title “Iraqis will never accept this sellout to the oil corporations.” Mahdi, a professor at Exeter University (UK), writes: “Before embarking on controversial measures such as [the proposed Oil Law] favoring foreign oil firms, the Iraqi parliament and government must prove that they are capable of protecting the country’s sovereignty and the people’s rights and interests… The oil law (see January 16, 2007) is likely to open the door to these corporations at a time when Iraq’s capacity to regulate and control their activities will be highly circumscribed. It would therefore place the responsibility for protecting the country’s vital national interest on the shoulders of a few vulnerable technocrats in an environment where blood and oil flow together in abundance. Common sense, fairness, and Iraq’s national interest dictate that this draft law must not be allowed to pass during these abnormal times, and that long-term contracts of 10, 15, or 20 years must not be signed before peace and stability return, and before Iraqis can ensure that their interests are protected. This law has been discussed behind closed doors for much of the past year. Secret drafts have been viewed and commented on by the US government, but have not been released to the Iraqi public—and not even to all members of parliament. If the law is pushed through in these circumstances, the political process will be further discredited even further. Talk of a moderate cross-sectarian front appears designed to ease the passage of the law and the sellout to oil corporations. The US, the IMF and their allies are using fear to pursue their agenda of privatizing and selling off Iraq’s oil resources. The effect of this law will be to marginalize Iraq’s oil industry and undermine the nationalization measures undertaken between 1972 and 1975. It is designed as a reversal of Law Number 80 of December 1961 that recovered most of Iraq’s oil from a foreign cartel. Iraq paid dearly for that courageous move: the then prime minister, General Qasim, was murdered 13 months later in a Ba’athist-led coup that was supported by many of those who are part of the current ruling alliance—the US included. Nevertheless, the national oil policy was not reversed then, and its reversal under US occupation will never be accepted by Iraqis.” [Guardian, 1/16/2007]

Entity Tags: Kamil Mahdi

Timeline Tags: Iraq under US Occupation

Iraq’s Oil Committee (see October 2006) agrees on what is said at this time to be the final draft of the oil law. Instead of specifying the use of production sharing agreements, as a previous draft did (see July 2006), this draft calls for the creation of a federal committee that would determine what kinds of contracts can be used for hiring oil companies to help develop Iraq’s oil sector. The next step is for the law to be approved by the Iraqi cabinet. [Iraq Oil Committee, 1/15/2007; Reuters, 1/17/2007] This happens on February 15 (see February 15, 2007).

Timeline Tags: Iraq under US Occupation

British MPs debate the Iraq oil law that was recently approved by the Iraq Oil Committee (see January 16, 2007).
Jeremy Corbyn says: “News was leaked out last week of a proposed new oil law that the Iraqi Parliament is to be invited to approve in a few weeks’ time. This is a mysterious piece of legislation, and I hope that the Minister will be able to throw some light on the matter when he responds to the debate. Apparently, the drafters of the new law were not in Iraq but in Washington, and they were assisted by people in London. The proposed law bears an uncanny resemblance to the British-imposed oil law in Iran in 1952, after the shah was imposed on the people of that country. BP and other oil companies made massive amounts of money from that arrangement in the succeeding years. There is deep suspicion that the oil law that is now being proposed for Iraq is the reward for the invasion, and that it will involve the privatization of oil production and the sale to certain oil companies of cheap oil that ought to be for the benefit of the Iraqi people…. It would be illegal [for 15 or 20-year oil contracts to be signed while the country is still under occupation], because Britain and the United States are, in law, occupying forces. They do not therefore have the legal authority to make fundamental changes to what is happening in that country. Those are the terms of the Hague convention, and that ought to be understood.”
Michael Meacher says: “It is also immensely important and significant that… a new draft law is about to be pushed through the fledgling Iraqi Parliament by the United States that will set up contracts to allow major US and British oil companies to extract substantial parts of the oil profits for a period of up to 30 years. No other Middle Eastern producer-country has ever offered such hugely lucrative concessions to the big oil companies. OPEC—the Organization of Petroleum Exporting Countries—has, of course, always run its oil business on the basis of there being tightly controlled state companies. Only Iraq in its current dire situation, with US troops propping up its Government—without them the Government would not survive—lacks the bargaining capacity to be able to resist. If this new draft law is conceded by the Iraqis under the intense pressure that is being put on them, it will lock the country into a degree of weakness and dependence for decades ahead. The neo cons may have lost the war, but my goodness, they are still negotiating to win the biggest chunk of the peace, when and if it ever comes…. This rearguard attempt to pre-empt the lion’s share of the remaining oil and the massive future profits over a 30-year period—there is no authority to extract it from another country without its agreement—can only intensify the insurgency. It is bound to foster much-increased resentment… and increase the violent resistance, even when the occupation has come to an end. Above all, this policy is utterly short-sighted, because it is diametrically opposed to the policy into which the whole world will ineluctably be forced by the accelerating onset of climate change.” [House of Commons, 1/24/2007]

Entity Tags: Jeremy Corbyn, Michael Meacher

Timeline Tags: Iraq under US Occupation

Hasan Jum`ah `Awwad al-Asadi, head of the Federation of Oil Unions in Basra, condemns the draft oil law (see January 16, 2007) and argues that Iraqis are fully capable of managing their own industry. “They have the experience in the field and the technical training, have overcome hardships and proven to the world that they can provide the best service to Iraqis in the oil industry,” he says. “The best proof of that is how after the entry of the occupying forces and the destruction of the infrastructure of the oil sector the engineers, technical staff and workers were able to raise production from zero to 2,100,000 barrels per day without any foreign expertise or foreign capital. Iraqis are capable of further increasing production with their present skills. The Iraqi state needs to consult with those who have overcome the difficulties and to ask their opinion before sinking Iraq into an ocean of dark injustice. Those who spread the word that the oil sector will not improve except with foreign capital and production-sharing are dreaming. They must think again since we know for certain that these plans do not serve the sons and daughters of Iraq.” [General Union of Oil Employees in Basra, 2/6/2007]

Entity Tags: Hasan Jum`ah `Awwad al-Asadi

Timeline Tags: Iraq under US Occupation

Iraqi oil labor unions send a letter to Iraqi President Jalal Talbani urging him not to support an oil development policy that would rely upon the use of production sharing agreements. “Production-sharing agreements are a relic of the 1960s,” the letter says. “They will re-imprison the Iraqi economy and impinge on Iraq’s sovereignty since they only preserve the interests of foreign companies. We warn against falling into this trap.” [Inter Press Service, 2/28/2007]

Entity Tags: Jalal Talbani

Timeline Tags: Iraq under US Occupation

Changes are again made to the draft of the proposed Iraqi oil law. [Asia Times, 2/28/2007] According to this draft:
bullet Foreign corporations would have access to nearly every sector of Iraq’s oil and natural gas industry, including service contracts on existing fields that are already being managed and operated by the Iraqi National Oil Company (INOC). For fields that have been discovered, but which are not currently being developed, the law would require INOC to be a partner in developing these fields. But the new oil law does not require participation of the INOC or any private Iraqi companies in contracts for fields that have not yet been discovered. In such cases, the new law would permit foreign companies to have full access. [Iraqi Council of Ministers, 2/2007; Inter Press Service, 2/28/2007; Asia Times, 2/28/2007]
bullet Companies contracted to develop oil fields would be given exclusive control of fields for up to 35 years, and would be guaranteed profits for 25 years. Foreign companies would not be required to partner with an Iraqi company or reinvest any of its profits in the Iraqi economy. Nor would they have to employ or train Iraqi workers, or engage in any other effort to transfer technology and skills to the Iraqis. [Iraqi Council of Ministers, 2/2007; Asia Times, 2/28/2007]
bullet An Iraqi Federal Oil and Gas Council would be established and given the ultimate decision-making authority in determining what kinds of contracts could be used to develop Iraq’s oil and what would be done with the existing exploration and production contracts already signed with French, Chinese, Russian, and other foreign companies. The law states that council members would include, among others, “executive managers from important related petroleum companies.” As an article in the Asian Times notes, “[I]t is possible that foreign oil-company executives could sit on the council. It would be unprecedented for a sovereign country to have, for instance, an executive of ExxonMobil on the board of its key oil-and-gas decision-making body.” There is no language in the law that would prevent foreign corporate executives sitting on the council from making decisions about their own contracts. And there is no requirement that a quorum be present when making decisions. The Asian Times article notes, “Thus, if only five members of the Federal Oil and Gas Council met—one from ExxonMobil, Shell, ChevronTexaco and two Iraqis—the foreign company representatives would apparently be permitted to approve contacts for themselves.” The new law does not specify what kind of oil agreements could be signed between Iraq and private firms to develop Iraq’s oil. Rather it leaves this question to the council, which would be permitted to approve and rewrite contracts using whatever type is agreed upon by a “two-thirds majority of the members in attendance.” Previous drafts of the law had specifically mentioned production sharing agreements (PSAs), a controversial type of contract that is favored by the oil companies. [Asia Times, 2/28/2007] That model, favored by the US and by oil companies, was opposed by many Iraqis, including Iraqi oil professionals, engineers, and technicians in the unions. The Iraqis prefer technical service contracts, like the ones used in Kuwait, Saudi Arabia, and Iran. Under such contracts foreign companies would be allowed to participate in the development of oil fields, but only for a limited time. [Democracy Now!, 2/20/2007] The companies would be paid to build a refinery, lay a pipeline, or offer consultancy services, but then would leave afterwards. This type of arrangement would help transfer technical expertise and skills to Iraqis. “It is a much more equitable relationship because the control of production, development of oil will stay with the Iraqi state,” notes Ewa Jasiewicz, a researcher at PLATFORM, a British human rights and environmental group that monitors the oil industry. She notes that no other country in the Middle East that is a large oil producer would ever sign a PSA because it’s “a form of privatization and… it’s not in their interests.” Critics also note that the signing of PSA agreements with US oil companies would add fuel to the unrest in Iraq and that the US would attempt to legitimize its continuing presence in Iraq with assertions about the need to safeguard US business interests. [Inter Press Service, 2/28/2007]
bullet Iraq’s national government would not have control over production levels. Rather, the contractee developing a field—e.g., the INOC, or a foreign or domestic company—would be able to decide how much oil to produce. However, the document does say: “In the event that, for national policy considerations, there is a need to introduce limitations on the national level of petroleum production, such limitations shall be applied in a fair and equitable manner and on a pro rata basis for each contract area on the basis of approved field-development plans.” But it does not specify who has the authority to introduce such nation-wide limitations or how production levels might be lowered in a “fair and equitable manner.” The language appears to signify that Iraq would no longer work with OPEC or other similar organizations. [Iraqi Council of Ministers, 2/2007; Asia Times, 2/28/2007]
bullet Oil revenues would be distributed to all of Iraq’s 18 provinces according to their population sizes. Regional administrations, not Iraq’s central government, would have the authority to negotiate contracts with foreign oil companies, monitor contracts, and deal with small disputes. But the ultimate authority would lie with the Federal Oil and Gas Council which would be able to veto decisions made by regional authorities. Critics say this arrangement almost encourages the split of Iraq into three different regions or even three different states. According to Raed Jarrar, Iraq Project Director for Global Exchange, a situation like this would mean that “Iraqis in different provinces will start signing contracts directly with foreign companies and competing between themselves, among themselves, among different Iraqi provinces, to get the oil companies to go… there without any centralized way in controlling this and thinking of the Iraqi interest and protecting Iraq as a country.” [Iraqi Council of Ministers, 2/2007; Inter Press Service, 2/28/2007]

Entity Tags: United States, Ewa Jasiewicz, Iraq, Raed Jarrar

Timeline Tags: Iraq under US Occupation

Iraq’s cabinet approves the February 15 draft of the proposed Iraqi oil law (see February 15, 2007). The law has not yet been seen by Iraq’s parliament. The only parties that have reviewed the law, aside from its authors, have been nine international oil companies, the British and US governments, and the International Monetary Fund. The cabinet expects that the law will be quickly passed by Iraq’s parliament and implemented by the end of May. [Associated Press, 2/26/2007; Inter Press Service, 2/28/2007]

Entity Tags: United Kingdom, International Monetary Fund, United States

Timeline Tags: Iraq under US Occupation

The Iraqi Centre for Strategic Studies hosts a conference in Amman, Jordan attended by prominent Iraqi parliamentarians, politicians, ex-ministers, and oil technocrats. At the conference, attendees urge Iraqi legislators to reject the proposed oil law (see February 15, 2007), saying that it will only further divide the country. Mohammed Bashar al-Faidhi, spokesman of the Association of Muslim’ Scholars, says: “We call on members of the parliament to reject this law. This critical draft law would revive foreign companies’ control on Iraqi oil wealth that Iraq had gotten rid of years ago.” Saleh al-Mutlak, head of the National Dialogue party, similarly states: “Iraqis are suspicious that if the law is passed at this critical time that Iraq is passing through, they would think it would be passed in order to serve the interest of foreign companies. This law would also further divide the Iraqi people because most of them would oppose it.” Issam al-Chalabi, former Iraqi oil minister during the government of Saddam Hussein, notes that prominent Iraqi oil experts were not permitted participate in the drafting of the law and that it has never been reported on by the media so Iraqis are unaware of its implications. “Enough time should be given to draft the law before submitting it to the parliament for approval,” al-Chalabi says. [Dow Jones Newswires, 3/10/2007]

Entity Tags: Saleh al-Mutlak, Issam al-Chalabi, Mohammed Bashar al-Faidhi, Iraqi Centre for Strategic Studies

Timeline Tags: Iraq under US Occupation

A close associate of Iraqi Prime Minister Nouri al-Maliki tells the Associated Press that certain US officials have warned al-Maliki that continuing White House support for his government is contingent on an end to sectarian violence and passage of the oil law (see February 15, 2007) by the close of this parliamentary session on June 30. “They have said they are frustrated that he has done nothing to oust the Sadrists, that the oil law has not moved forward, that there is no genuine effort on reconciliation and no movement on new regional elections,” the source says. Al-Maliki fears that without American support his government will be ousted. [Associated Press, 3/13/2006]

Entity Tags: Nouri al-Maliki, Bush administration (43)

Timeline Tags: Iraq under US Occupation

Congress passes a $124 billion supplemental appropriations bill that would provide funds for the continued occupation of Iraq, but require that a majority of the troops be withdrawn by the end of the year. The bill, if signed into law by President Bush, will set a number of benchmarks for the Iraqi government to meet, including the creation of a program to disarm militias, the reduction of sectarian violence, the easement of rules (see May 16, 2003) that purged the government of former Baath Party members, and the implementation of a law that would govern the development of the country’s oil sector (see February 15, 2007). If the Iraqi government fails to meet these requirements, the US would begin pulling out its troops on July 1. If it does meet the benchmarks, the withdrawal would be delayed until October 1, with the pull-out being completed no later than April 1, 2008. Some troops would remain in Iraq to protect US facilities and diplomats, fight US-designated terrorist groups, and train Iraqi security forces. [Washington Post, 4/26/2007; US Congress, 4/26/2007 pdf file] President Bush will veto the bill on May 1. [Washington Post, 4/26/2007]

Entity Tags: US Congress

Timeline Tags: Iraq under US Occupation

Iraqi Vice President Tariq al-Hashemi says he opposes the oil law (see February 15, 2007) because it gives too many concessions to foreign oil companies. “We disagree with the production sharing agreement,” he tells reporters attending an international conference in Jordan that is hosted by the Geneva-based World Economic Forum. “We want foreign oil companies, and we have to lure them into Iraq to learn from their expertise and acquire their technology, but we shouldn’t give them big privileges,” he explains. [Associated Press, 5/21/2007]

Entity Tags: Tariq al-Hashemi

Timeline Tags: Iraq under US Occupation

In a phone call with Iraqi Prime Minister Nouri al-Maliki, President George Bush reportedly says Iraq needs to produce “tangible results quickly” on the oil law and other legislation if it wants to count on continued support from the US government. [Associated Press, 5/22/2007]

Entity Tags: Nouri al-Maliki, George W. Bush

Timeline Tags: Iraq under US Occupation

Mahmoud Uthman, a Kurdish member of Iraq’s parliament, says lawmakers are not ready to pass the oil law because of the “obscurity of some sections of the proposed draft law, the most important of which are those concerning oil imports and the mechanism of their distribution.” He also says that the law was “made to serve US interests” and that the US is putting “very strong” pressure on Iraqi leaders to speed its passage. [AXcess News, 5/22/2007] “The Americans are pressuring us to accept the oil law. Their pressure is very strong. They want to show Congress that they have done something so they want the law to be adopted this month. This interference is negative and will have consequences,” he says. [Associated Press, 5/22/2007]

Entity Tags: Mahmoud Uthman

Timeline Tags: Iraq under US Occupation

On June 4, oil workers in Basra go on strike, shutting down a number of oil and gas pipelines. They want better working conditions, pay, land for homes, lower fuel prices, and a role in the drafting of the controversial oil law (see January 16, 2007). [General Union of Oil Employees in Basra, 6/4/2007] Hasan Jum`ah `Awwad al-Asadi, president of the Iraqi Federation of Oil Unions, which represents more than 26,000 workers, says the union is against the oil law because it will give foreign companies too much control over Iraq’s oil. “First of all, we are against the production sharing agreements,” Awad told United Press International several days earlier. [United Press International, 5/24/2007] In response, Prime Minister Nouri al-Maliki orders the arrest of Awwad and other union leaders on June 6 for “sabotaging the economy” and sends Iraqi troops to surround the strikers. [United Press International, 6/6/2007] Soon after, a delegation sent by Maliki agrees to form a government committee to address the workers’ complaints about labor conditions, wages, and the oil law. The two sides come to a tentative agreement and on June 11, the strike is called off. [United Press International, 6/11/2007]

Entity Tags: General Union of Oil Employees in Basra, Hasan Jum`ah `Awwad al-Asadi, Nouri al-Maliki

Timeline Tags: Iraq under US Occupation

In a Sunday afternoon meeting, Admiral William Fallon tells Iraqi Prime Minister Nouri al-Maliki that the Iraqi parliament needs to pass the controversial oil law by July. “Is it reasonable to expect it to be completed in July?” he asks. “We have to show some progress in July for the upcoming report.” US ambassador to Iraq Ryan C. Crocker is also present at the meeting, along with New York Times reporter Michael Gordon, who is accompanying Fallon on his Iraq trip. [New York Times, 6/12/2007]

Entity Tags: Michael Gordon, Ryan C. Crocker, William Fallon, Nouri al-Maliki

Timeline Tags: Iraq under US Occupation

Some of the tens of thousands of salmon killed due to the artificial water lowering by the Department of the Interior.Some of the tens of thousands of salmon killed due to the artificial water lowering by the Department of the Interior. [Source: Environmental News Service]The House Natural Resources Committee, led by Nick Rahall (D-WV) and Mike Thompson (D-CA), decides to investigate the role of Vice President Dick Cheney in a 2002 salmon kill (see April 2002) on Northern California’s Klamath River, the largest fish kill in modern Western history (see September 2002). “We know where the smoking gun lays,” says Chris Lawson, a fisherman and president of the Bodega Bay Fisherman’s Marketing Association. No one in Northern California or Oregon (another state affected by the fish kill) knew of Cheney’s role until a recent story in the Washington Post uncovered Cheney’s successful attempt to subvert both scientific evidence and the Endangered Species Act to allow a water release that drastically lowered the water level in the Klamath. The day the article appears, Thompson and 35 other Democrats call for a hearing by the House Natural Resources Committee, saying in a letter that “[t]he ramifications of that salmon kill are still being felt today as returns to the Klamath River are so low that commercial, sport and tribal fishing seasons have been curtailed for the past three years.” A day later, Rahall agrees. The hearing will be held a month later (see August 1, 2007). In October 2002, Thompson piled 500 pounds of dead coho salmon in front of the Interior Department, accusing that agency of “gross mismanagement” in the wildlife disaster. Now Thompson asks, “We know that science was manipulated and the law was violated. Did in fact the vice president of the United States put pressure on mid-level bureaucrats to alter the science and circumvent the law in order to gain political votes for his re-election or the election of other people in Oregon?” Cheney’s office responds to the hearings by saying it is “disappointing the Democrats would rather investigate than legislate,” and that the Post story is nothing more than “a repackaging of old accusations.” Cheney’s office refuses to say whether Cheney will agree to testify before the committee. The reduced river flow in 2002, says Thompson, “wasn’t about salmon or water, it was about electoral votes in Oregon.” Since the fish kill, the courts have prohibited the diversion of Klamath water for agricultural use once the water levels drop below a critical point. But in the years after the fish kill, the salmon catch has been gravely reduced. Commercial fishing in California and Oregon has suffered a more than 90% drop as recently as 2006; Congressional Democrats say the result has been over $60 million in damage to coastal economies. Only in 2007 have the number of young salmon in the Klamath shown indications that salmon numbers may once again be increasing. [Associated Press, 6/28/2007; Santa Rosa Press-Democrat, 7/9/2007] However, the Klamath salmon are still gravely threatened by rampant fish diseases infesting tens of thousands of juvenile salmon, as well as abnormally high water temperatures and low water levels. [CounterPunch, 7/16/2007]

Entity Tags: Mike Thompson, Bodega Bay Fisherman’s Marketing Association, Chris Lawson, House Natural Resources Committee, Nick Rahall, US Department of the Interior, Washington Post, Endangered Species Act, Richard (“Dick”) Cheney

Timeline Tags: US Environmental Record

Representative Nick Rahall.Representative Nick Rahall. [Source: Nick Rahall]The House Natural Resources Committee holds a hearing to investigate the role that Vice President Dick Cheney and other Bush administration officials played in the decision that led to the largest fish kill in modern Western United States history (see Mid-2001 - Early 2002 and June 27-28, 2007). The committee is unable to find conclusive proof that Cheney directly gave the orders that led to the fish kill. A former Interior Department official, Deputy Inspector General Mary Kendall, testifies that Cheney pressured the department to release water in the Klamath River in Northern California, even though the water release would threaten the life cycle of tens of thousands of salmon who live and breed in the river. The water release was to benefit drought-stricken farmers and ranchers in the area. The decision went against the provisions of the Endangered Species Act as well as an overwhelming majority of scientific opinion and the tribal water rights of local Native Americans. Former fisheries biologist Michael Kelly, who worked on the Klamath issue, testifies that he cannot be sure whether Cheney interfered in the situation. “I was aware that President Bush had declared he’d do everything he could to get water to the farms,” Kelly says, and adds that he knew his own superiors were being pressured to speed up assessments and tilt the science to favor the farmers. “I was essentially asked to support a conclusion that made as much sense as 1+1=3,” Kelly says. The biological opinion underlying the plan was “completely bogus and illegal,” he adds. Chairman Nick Rahall (D-WV) calls the Klamath fish kill “a fiasco” and lambasts Cheney and Interior Secretary Dirk Kempthorne for refusing to testify before the committee. “I will not pretend to be surprised [Cheney] declined our invitation,” Rahall says. “But I am obliged to express disappointment at the difficulty we have had in trying to learn the truth and conduct basic oversight over an agency and an administration that have made secrecy and lack of accountability hallmarks of their tenure.” Rahall notes that “[w]hen it comes to political interference and ethical lapses at the department, the Klamath River is just the tip of the iceberg.… I find it difficult to see how we can trust any decision made in an agency that has, time and again, betrayed its own career scientists, repeatedly failed to hold its appointees to ethical standards and so callously disregarded its mission for the sake of political gain.” [Environmental News Service, 8/1/2007]

Entity Tags: Endangered Species Act, Bush administration (43), Dirk Kempthorne, George W. Bush, House Natural Resources Committee, Richard (“Dick”) Cheney, Mary Kendall, US Department of the Interior, Michael Kelly, Nick Rahall

Timeline Tags: US Environmental Record

Halliburton Co agrees to pay a $559 million fine to end an investigation of its former KBR subsidiary if the US government approves the settlement. KBR, formerly Kellogg Brown & Root, has long been accused of violating anti-bribery laws by paying kickbacks to Nigerian officials in return for “sweetheart deals” involving Nigeria’s oil and natural gas fields. The fine, if paid, will be the largest penalty in history against a US company for violations of the Foreign Corrupt Practices Act (FCPA); the settlement would allow Halliburton to avoid having a government monitor put in place, but would require the company to hire an independent consultant to assess its compliance with anti-bribery laws. Halliburton would pay $382 million to the Department of Justice and $177 million to the Securities and Exchange Commission in “disgorgement.” KBR, which has become independent of Halliburton since the incidents in question, refuses to comment on the settlement. The government’s probe of Halliburton/KBR goes back over 20 years, to the construction and expansion of a gas liquefaction facility at Bonny Island, Nigeria. Halliburton has admitted that its agents probably bribed Nigerian officials, and former KBR CEO Albert Stanley has already pled guilty to charges stemming from the Bonny Island bribery scheme. Former Vice President Dick Cheney was Stanley’s immediate supervisor when Cheney was CEO of Halliburton. [Reuters, 1/26/2009]

Entity Tags: Foreign Corrupt Practices Act, US Department of Justice, Kellogg, Brown and Root, Richard (“Dick”) Cheney, US Securities and Exchange Commission, Albert Stanley, Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

President Obama signs legislation expanding and protecting US public parks and wilderness areas from oil and gas development, a dramatic reversal of Bush-era policy. The omnibus Public Land Management Act is described as the largest US conservation measure in 15 years. [CNN, 3/30/2009; Fox Business, 3/30/2009; Agence France-Presse, 3/31/2009]
Over 150 Measures - The bill is composed of over 150 individual measures passed by Congress. Among other initiatives, it creates 10 new National Heritage Areas, designates two million acres of federal lands in nine states as wilderness areas, sets out water conservation measures through the Bureau of Reclamation, alters several national park boundaries, and takes steps to drastically improve the quality of California’s San Joaquin River, potentially restoring salmon to that river and improving the quality of drinking water throughout the Bay Area. Scientist Monty Schmitt says of the San Joaquin reclamation project, “This is taking what many have said is a dead river, and bringing it back to life for over 150 miles.” Because of the bill, Obama says, the Navajo nation—over 80,000 Native Americans living in Arizona and New Mexico—will have “access to clean, running water for the very first time.” The legislation also includes the Christopher and Dana Reeve Paralysis Act, named after the late Hollywood actor who was paralyzed from a riding accident, providing for paralysis research, rehabilitation, and care. Obama says that bill is “specifically aimed at addressing the challenges faced by Americans living with paralysis” and will work to improve their quality of life “no matter what the costs.” [CNN, 3/30/2009; Mercury News (San Jose), 3/30/2009; Agence France-Presse, 3/31/2009]
Bill Passed over Republican Opposition - The bill passed both the House and Senate by wide margins, but some Republicans oppose it, complaining that the bill imposed undue restrictions on oil drilling in rural areas. Some of the bill’s components had been blocked in recent years under the Bush administration. [Mercury News (San Jose), 3/30/2009]

Entity Tags: Barack Obama, Monty Schmitt, Public Land Management Act, US Bureau of Reclamation, Bush administration (43)

Timeline Tags: US Environmental Record

Uranium mine near the rim of the Grand Canyon.Uranium mine near the rim of the Grand Canyon. [Source: Intercontinental Cry (.com)]The Obama administration bans hard-rock mining on more than a million acres in and around the Grand Canyon, an area rich in high-grade uranium ore reserves. The ban is for 20 years. Environmental groups and some Democratic lawmakers have worked for years to limit mining near the Grand Canyon National Park. Representative Edward Markey (D-MA), the ranking member of the House Natural Resources Committee, says, “When families travel to see the Grand Canyon, they have a right to expect that the only glow they will see will come from the sun setting over the rim of this natural wonder, and not from the radioactive contamination that comes from uranium mining.” Interior Secretary Ken Salazar, who has twice imposed temporary bans on mining claims, says: “A withdrawal is the right approach for this priceless American landscape. People from all over the country and around the world come to visit the Grand Canyon. Numerous American Indian tribes regard this magnificent icon as a sacred place, and millions of people in the Colorado River Basin depend on the river for drinking water [and] irrigation.” The basin is already considered one of the nation’s most endangered waterways, and mining operations could use vast amounts of the area’s water and taint much more. The ban reverses a Bush administration decision to open the area to new mining claims; environmentalists have long pointed to the damage wrought to the area by uranium, oil, and gas mining under the Bush administration’s policies.
Mining Poses High Risks to Environment, Tourism - One in 12 Americans gets some or all of their water from the Colorado River Basin, including the residents of Phoenix and Los Angeles, and the area generates about $3.5 billion in annual income, largely from tourism. In contrast, the mining ban will mean that 465 prospective jobs will not materialize, and the area will lose some $16.6 million in annual tax revenue from mining. Supporters of the ban say that the jobs that would come from mining in the area would not be worth the risk to the river basin and the canyon, and a mining mishap would be potentially devastating for tourism. Many of the area’s lands are considered sacred by Native American tribes, and the lands support a vast number of wildlife habitats. Taylor McKinnon of the Center for Biological Diversity says that uranium mining in the area would critically despoil the area, ruin millions of Americans’ access to fresh water, and cut, not increase, job revenues. McKinnon says: “The real economic engine in northern Arizona is not uranium mining. It’s tourism. To jeopardize our economic engine with more toxic uranium mining is unacceptable.” In 2008, former Bureau of Land Management Director Jim Baca said flatly: “Without [the Colorado], there is no Western United States. If it becomes unusable, you move the entire Western United States out of any sort of economic position for growth.” [ProPublica, 12/21/2008; Associated Press, 1/9/2012]
Republicans Criticize Ban - Some Congressional Republicans and mining industry groups call the decision indefensible, saying it will cost hundreds of jobs and deprive the nation of a much-needed energy resource. Senator John McCain (R-AZ) calls the ban a “devastating blow to job creation in northern Arizona,” and says the ban was “fueled by an emotional public relations campaign pitting the public’s love for the Grand Canyon against a modern form of low-impact mining that occurs many miles from the canyon walls.” He says that modern mining techniques will not add toxins to water drawn from the river basin. Other Republicans cite a mining industry study that claims even a severe mining accident would increase uranium levels in the Colorado River by an undetectable amount. Representative Rob Bishop (R-UT) says: “It is unconscionable that the administration has yet again caved to political pressure from radical special interest groups rather than standing up for the American people. Banning access to the most uranium-rich land in the United States will be overwhelmingly detrimental to both jobs in Utah and Arizona and our nation’s domestic energy security.” Senator John Barrasso (R-WY) calls the ban part of the Obama administration’s “war on western jobs.” Senator Mike Lee (R-UT), a tea party supporter, says: “This administration has proven incapable of using even the slightest bit of common sense when it comes to lands policy. The American people are desperate for jobs, and our domestic energy industry provides some of the best paying jobs in the western states. However, the president and Interior Secretary Salazar are intent on appeasing their friends in the extreme left wing of the environmentalist movement during an election year by locking up as much land as possible, regardless of the negative effects on our economy. For energy production that has long been safe and responsible, the announcement represents a needless overreaction to a fictitious problem.” [Senator John McCain, 1/9/2012; Senator John McCain, 1/9/2012] In 2008, the Environmental Protection Agency noted that mining had contaminated 40 percent of the streams and rivers in the western United States, and mining was considered the single most polluting industry in the nation. [ProPublica, 12/21/2008] Many of the claims now blocked from development belong to foreign interests, including Rosatom, Russia’s state atomic energy corporation, and South Korea’s state-owned utility. [PR Newswire, 6/7/2011]

Entity Tags: Michael Shumway (“Mike”) Lee, Jim Baca, Environmental Protection Agency, Edward Markey, John Barrasso, Ken Salazar, Rosatom, Rob Bishop, Obama administration, Taylor McKinnon, John McCain

Timeline Tags: US Environmental Record

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