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Yglesias

Conservatives Rally to BP’s Defense

BP obviously has a large public relations problem on its hands with regard to its drilling activities poisoning a major swathe of the world’s oceans. Thus after meeting with Barack Obama and members of his administration, the firm’s executives decided that the company’s interests could be best served by implementing an Obama-approved plan to create an escrow fund to compensate injured parties. This is important because it ensures that BP will face meaningful legal liability for any misdeeds it’s found to be responsible for.

Like all issues relating to torts, this highlights the tension between free market philosophy in theory and conservative movement politics in practice. In theory, legal liability for damages is supposed to be the reason that light or absent regulation is okay. In practice, conservatives love businessmen and hate things businessmen dislike. And businessmen hate legal liability for corporate misdeeds. Hence things like this sniveling “apology” from Rep Joe Barton (R-TX) to BP’s executives, who he feels have been wronged by Obama’s effort to ensure that meaningful liability will exist:

And it’s important to understand that it’s not just Barton. Senator John Cornyn feels the same way and Josh Marshall points out that the main caucus of the 100 or so most wingnutty House members has taken a similar view.

Politics

GOP Rep. Jeff Miller calls for Barton to step down from top committee spot over BP comments.

Earlier this morning, Rep. Joe Barton (R-TX) called the $20 billion escrow fund BP agreed to set up yesterday to pay for oil spill damages a “slush fund” resulting from a “shakedown” by the White House. Though many conservatives agree with Barton, House Minority Leader John Boehner (R-OH) refused to endorse Barton’s position. Now, Rep. Jeff Miller (R-FL) has called for Barton to step down as the ranking member of the Energy and Commerce Committee because of his comments:

Rep. Jeff Miller (R-Fla.), whose Pensacola district is among the most-impacted areas in the Gulf by the oil spill, condemned Barton for apologizing to BP CEO Tony Hayward during a committee meeting on Thursday.

“I condemn Mr. Barton’s statement. Mr. Barton’s remarks are out of touch with this tragedy and I feel his comments call into question his judgment and ability to serve in a leadership on the Energy and Commerce Committee,” Miller said in a statement. “He should step down as Ranking Member of the Committee.”

Update

Barton will soon have to step down anyway as House Republicans decided in February to “stick with six-year term limits for top Republicans on House committees.”


Update

,Barton tells Politico that he has no plans to step down prematurely from his spot on the committee. Louisiana Republican Steve Scalise said, “I don’t think anybody should be apologizing to Tony Hayward. I think he should be apologizing to the Gulf States.”


Update

,Rep. Adam Putnam (R-FL) says Barton “owes the people of the gulf coast an apology, not the CEO of the company that caused this mess.”


Update

,ThinkProgress spoke to Rev. Lennox Yearwood, a Louisiana pastor, about Louisina Republican Rep. John Fleming and Rep. Joe Barton’s (R-TX) comments attacking the escrow fund as a “shakedown.” Yearwood slammed Fleming and Barton for “playing politics with people’s lives” and called their statements “shameful.” Watch it:


Update

[/update

Climate Progress

Joe Barton Bows To BP: ‘I Apologize’

During a hearing of the House Energy and Commerce Committee this morning, Rep. Joe Barton (R-TX) “apologize[d]” to BP CEO Tony Hayward, accusing the White House of an illegal “shakedown” of the foreign oil giant to secure a $20 billion escrow fund for Gulf Coast damages. Barton repeated the Republican attack that the escrow fund is a result of a White House “shakedown” that contravenes “due process,” saying that he was “ashamed” and would “go to jail” if he abused his elected powers similarly. Although he admitted that BP was liable for the billions of dollars of damages to the American people caused by its catastrophic oil disaster, Barton said “I apologize” that BP had to establish this “slush fund,” which he called “a tragedy of the first proportion”:

BARTON: I’m speaking totally for myself, I’m not speaking for the Republican Party, I’m not speaking for anybody in the House of Representatives but myself. But I’m ashamed of what happened in the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterize as a shakedown, in this case a $20 billion shakedown — with the Attorney General of the United States who is legitimately conducting a criminal investigation and has every right to do so to protect the interests of the American people — participating in what amounts to a $20 billion slush fund that is unprecedented in our nation’s history, that’s got no legal standing, which I think sets a terrible precedent for the future.

If I called you into my office, and I had the subcommittee chairman Mr. Stupak with me, who was legitimately conducting an oversight investigation on your company, and said if you put so many millions of dollars in a project in my congressional district, I could go to jail and should go to jail. Now, there is no question that British Petroleum owns this lease, that BP made decisions that objective people think compromise safety. There is no question that BP is liable for the damages. But we have a due process system where we go through hearings, in some cases court cases, litigation and determine what those damages are and when those damages should be paid.

So I’m only speaking for myself, I’m not speaking for anybody else, but I apologize, I do not want to live in a country where anytime a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is again in my words amounts to a shakedown. So I apologize.

Watch it:

The “slush fund” will not be managed by the federal government or BP, but an independent third party, funded over four years with a small fraction of BP’s annual revenues. By calling the Gulf Coast relief money a “slush fund,” Joe Barton was following the lead of conservative thinker Rush Limbaugh and other right-wing pundits. Barton has taken $1.4 million from the oil and gas industry, including $27,350 from BP. In Barton’s world, it seems that the small people have to pay for their mistakes, but companies don’t.

Politics

Boehner refuses to endorse Barton’s claim that BP’s escrow fund is a ‘shakedown.’

During his opening statement at BP CEO Tony Hayward’s congressional testimony today, Rep. Joe Barton (R-TX) accused the White House of an illegal “shakedown” of the oil giant when it secured a $20 billion escrow fund for Gulf Coast damages. “I do not want to live in a country where any time a citizen for a corporation does something that is legitimately wrong is subject to some sort of political pressure that is again in my words amounts to shakedown,” said Barton. “So I apologize.” Fox News asked House Minority Leader John Boehner (R-OH) this morning if he agreed with Barton’s “shakedown” claim and Boehner declined to endorse it:

HEMMER: Would you call it a shakedown? $20 billion?

BOEHNER: I have said since the beginning that BP ought to be responsible for all of this clean up. And the fact is that they’ve agreed to put this $20 billion in escrow. I don’t know what context Mr. Barton was making that remark, but I’m glad that BP has accepted responsibility for their actions.

Watch it:

Boehner’s comment that he’s “glad that BP has accepted responsibility” by putting money in the fund puts him at odds with more members of his conference than just Barton. Rep. Tom Price (R-GA), the chairman of the Republican Study Committee, issued a statement yesterday calling BP’s agreement to the fund a “Chicago-style political shakedown.” Rep. Michele Bachmann (R-MN) called the escrow fund “a redistribution-of-wealth fund.”

Update

Asked by CNN if he agreed with Barton, Rep. Michael Burgess (R-TX) spoke favorably of the escrow fund, but said “the appearance of having the attorney general across the table, I’ll admit, that is troublesome.” “I don’t know if I would be quite as strong as Mr. Barton, but I agree with him that it was unseemly to have the attorney general, perhaps holding criminal papers in his hand, asking them to sign on the line,” said Burgess.


Update

,In December 2009, Boehner “bought between $15,000 and $50,000 in stock in BP.” Boehner’s office claims that his stock holdings have “no effect” on his treatment of BP.

Politics

Joe Barton to BP: ‘I apologize’ for the White House ‘shakedown.’

During a hearing of the House Energy and Commerce Committee this morning, Rep. Joe Barton (R-TX) “apologize[d]” to BP CEO Tony Hayward, accusing the White House of an illegal “shakedown” of the foreign oil giant to secure a $20 billion escrow fund for Gulf Coast damages. Barton repeated the Republican attack that the escrow fund is a result of a White House “shakedown” that contravenes “due process,” saying that he was “ashamed” and would “go to jail” if he abused his elected powers similarly. Although he admitted that BP was liable for the billions of dollars of damages to the American people caused by its catastrophic oil disaster, Barton said “I apologize” that BP had to establish this “slush fund,” which he called “a tragedy of the first proportion”:

BARTON: I’m speaking totally for myself, I’m not speaking for the Republican Party, I’m not speaking for anybody in the House of Representatives but myself. But I’m ashamed of what happened in the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterize as a shakedown, in this case a $20 billion shakedown — with the Attorney General of the United States who is legitimately conducting a criminal investigation and has every right to do so to protect the interests of the American people — participating in what amounts to a $20 billion slush fund that is unprecedented in our nation’s history, that’s got no legal standing, which I think sets a terrible precedent for the future.

If I called you into my office, and I had the subcommittee chairman Mr. Stupak with me, who was legitimately conducting an oversight investigation on your company, and said if you put so many millions of dollars in a project in my congressional district, I could go to jail and should go to jail. Now, there is no question that British Petroleum owns this lease, that BP made decisions that objective people think compromise safety. There is no question that BP is liable for the damages. But we have a due process system where we go through hearings, in some cases court cases, litigation and determine what those damages are and when those damages should be paid.

So I’m only speaking for myself, I’m not speaking for anybody else, but I apologize, I do not want to live in a country where anytime a citizen or a corporation does something that is legitimately wrong is subject to some sort of political pressure that is again in my words amounts to a shakedown. So I apologize.

Watch it:

The “slush fund” will not be managed by the federal government or BP, but an independent third party, funded over four years with a small fraction of BP’s annual revenues. Barton has taken $1.4 million from the oil and gas industry, including $27,350 from BP. In Barton’s world, it seems that the small people have to pay for their mistakes, but companies don’t.

Update

White House Press Secretary Robert Gibbs responded to Barton’s comment, calling it “shameful” that he “seems to have more concern for big corporations that caused this disaster than the fishermen, small business owners and communities whose lives have been devastated by the destruction. Congressman Barton may think that a fund to compensate these Americans is a ‘tragedy’, but most Americans know that the real tragedy is what the men and women of the Gulf Coast are going through right now. Members from both parties should repudiate his comments.”


Update

,By calling the Gulf Coast relief money a “slush fund,” Joe Barton was following the lead of conservative thinker Rush Limbaugh and other right-wing pundits, Media Matters notes.


Update

,Nate Silver points out that Barton’s top corporate donor is a partner of BP on Deepwater Horizon.


Update

,The New York Daily News adds:

Barton is also one of Big Oil’s biggest boosters and once touted off-shore drilling as so advanced it can function around the clock “without so much as losing a gum wrapper over the side of the platform.”

Before his election to Congress, Barton was an executive with ARCO, which was later acquired by BP.

He has taken $1.4 million in campaign contributions from the industry since 1989, according to the Center for Responsive Politics.

Barton’s backers have been political action committees and employees of Anadarko Petroleum, Exxon Mobil and Valero Energy, the watchdog group reported.


[upd

Economy

BP And Halliburton Build Legal Teams, Attempt To Buy Off Government Officials

BPSign2 Facing possible jail time for their roles in the largest oil spill in American history, BP and Halliburton are building high-powered legal teams with “deep Department of Justice and White House ties.” But the companies are pursuing other means to defend themselves as well.

Halliburton’s campaign donations have spiked as it tries to curry favor with key members of Congress investigating the disaster. The company donated $17,000 in May, making it “the busiest donation month for Halliburton’s PAC since September 2008,” Politico reports. Thirteen of the 14 contributions from May went to Republicans, while seven went to members of Congress who are “on committees with oversight of the oil spill and its aftermath”:

About one week before executive Timothy Probert appeared before the House Energy and Commerce’s investigative subcommittee, Halliburton donated $1,500 to Ranking Republican Joe Barton’s reelection effort. It was Halliburton’s second-largest donation of the month — topped only by $2,500 to former Rep. Pat Toomey (R-Pa.), who is running for the Senate.

In the Senate, Idaho Republican Mike Crapo, who serves on the Environment and Public Works Committee, Georgia Republican Johnny Isakson, who serves on the Commerce Committee and North Carolina Republican Richard Burr (N.C.), who serves on the Energy and Natural Resources Committee, all got $1,000. Sen. Chuck Grassley (R-Iowa) also got $1,000.

Meanwhile, a Hill analysis found that primarily during the Bush administration, BP and other oil companies “paid for dozens of trips and meals for officials” from the Department of Interior, the Environmental Protection Agency (EPA), and the Department of Homeland Security — agencies deeply involved in the regulation of oil exploration and spill cleanup. BP had the “highest tab for gifts to government officials” of all oil and gas companies:

BP and its affiliates — BP America and BP Exploration — show up in the gift reports at least 16 different times, paying for meals as well as for oil and gas industry seminars and tours of oil facilities. The cost of the gifts totaled more than $7,200.

Only two industry-funded trips took place during the first nine months of President Obama’s administration. In 2004, BP paid for a group of Interior officials to visit an offshore rig in the Gulf of Mexico. The group included then-deputy secretary J. Steven Griles, who later went to prison for his role in Jack Abramoff scandal. In 2005, BP paid for travel and meals for then-Interior Secretary Gale Norton and then-Minerals Management Service (MMS) Director Johnnie Burton to attended the dedication ceremony of another offshore rig in the Gulf. BP also paid for officials from the EPA and the Fish and Wildlife Service to visit Prudhoe Bay, Alaska over a period of several years. A recent Interior Inspector General report covering 2005 to 2007 found a “culture of lax oversight and cozy ties to industry.” Since January of 2008, BP lobbyists have spent $30 million to influence legislation, according to the Center for Responsive Politics.

Some coastal governors have benefited from BP as well. BP and other oil companies gave Mississippi Gov. Haley Barbour (R) $1.8 million dollars for his campaign, and since the spill, he’s been aggressively downplaying the disaster and encouraging people to visit his state’s oily beaches. Virginia Gov. Bob McDonnell (R) traveled to a BP-funded conference in Houston last month “to lobby aggressively to drill for oil and natural gas without delay.” Meanwhile, Texas Gov. Rick Perry (R) dismissed potential BP negligence by calling the spill an “act of God” at a trade association funded by BP in May.

Politics

‘Smokey Joe’ Barton: Global Warming ‘Is A Net Benefit To Mankind’

Rep. Joe Barton (R-TX), nicknamed “Smokey Joe” for his persistent advocacy on behalf of polluters, sat for an interview with C-Span this weekend to discuss a variety of environmental issues.

Barton expressed concern that regulation of carbon dioxide pollution would restrict his “convenient” and “modern lifestyle.” “I don’t want to go back to the 1870s where my great-grandparents lived on a dry land cotton farm in Texas with no running water and no electricity and their power source was their own muscles or animal power,” Barton feared.

He then argued that the warming of the planet is actually a “net benefit” for humans:

CO2 is odorless, colorless, tasteless – it’s not a threat to human health in terms of being exposed to it. We create it as we talk back and forth. So, and if you go beyond that, on a net basis, there’s ample evidence that warming generically — however it is caused — is a net benefit to mankind.

Watch it:

Ironically, just as Barton is pushing his claim that warming is beneficial for humans, the Pentagon is concluding that “global warming is now officially considered a threat to U.S. national security.” In its upcoming 2010 Quadrennial Defense Review, Pentagon planners will report that climate change could result in food and water scarcity, pandemics, population displacement, and other destabilizing events that could create conflict.

“The American people expect the military to plan for the worst,” says retired Vice Adm. Lee Gunn, a 35-year Navy veteran now serving as president of the American Security Project. “It’s that sort of mindset, I think, that has convinced, in my view, the vast majority of military leaders that climate change is a real threat and that the military plays an important role in confronting it.”

Barton took issue with Sarah Palin’s call for Obama to boycott Copenhagen. “I like Sarah Palin as a person…I would disagree with her though. I think the President’s got every right to go to Copenhagen,” he said.

Politics

Bachmann’s agenda: ‘After we defund the left, we pass repealer bill after repealer bill after repealer bill.’

At a briefing with conservative bloggers held at the Heritage Foundation today, Rep. Michele Bachmann (R-MN) articulated “the way forward for conservatives.” Bachmann’s strategy consisted of defeating Democrats in 2010, defunding the left and passing a series of “repealer” bills:

BACHMANN: We have to defund the left. And this is great. Gallup came out with a poll, I think last week or the week before, that said the American people believe that Congress wastes 50 percent — 50 cents or 50 percent of every dollar it spends. God love the American people. They get it. They understand the truth that actually there’s huge waste. So we defund that but then the third thing that we do, which you’re getting into with economic development, is we have to after we defund the left, we pass repealer bill after repealer bill after repealler bill. Because there’s a huge machinery that’s been built up in this town. And we have to just repeal it. And we have to campaign on that to the American people. That is a hugely winning message right now with the American people.

Watch it:

Bachmann isn’t the first conservative member of Congress to express a desire to “repeal” legislation passed under Obama if Republicans take back control of Congress again. In August, Rep. Joe Barton (R-TX) said “we’ll repeal” health care reform if it passes. Rep. Tom Price (R-GA) said at the Values Voter Summit last month that he dreams of telling President Obama in 2010, “we need to repeal the disaster and the tyranny that you passed last session.”

Politics

Rep. Joe Barton: If GOP takes back the House, ‘we’ll repeal’ health care reform.

Politico reports that some polling experts are predicting House Democrats to lose many seats in the 2010 midterm elections. FiveThirtyEight’s Nate Silver said the GOP has a one-quarter to one-third chance of taking back the House. Rep. Joe Barton (R-TX) is giddy at the thought of regaining his chairmanship in the event the Republicans take over. This weekend on Fox News, Barton revealed that his agenda would be to repeal health care reform, if it passes before 2010:

BARTON: If they [Democrats] somehow manage to get the votes and get enough Democrats to walk the plank and commit political suicide, in the next Congress, I’ll be Chairman Joe Barton of the Energy and Commerce Committee, and we’ll repeal it.

If Obama attempts to “muscle through” health reform, Barton predicted he would end up leading the Democrats into the “political wilderness.” Watch it:

Politics

Barton plays dumb, says he may have taken ‘some’ contributions from the health sector.

Citing a Washington Post article on health care industry cash flowing to lawmakers, Washington Journal guest host Libby Casey asked Rep. Joe Barton (R-TX) to respond to a Twitter question inquiring how much money he has “taken from the insurance industry.” Barton played coy on the question, saying that he was “sure” he had “received some political action committee donations from the health insurance sector” over 25 years in Congress. Watch it:

Barton’s answer significantly downplays the role that health industry money has played in his political career. According to OpenSecrets, the health care sector has been Barton’s second largest contributor over the years, donating $2,096,021. In the current election cycle, only the energy and natural resources industries have given him more money.

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