National Gas Industry Hires Family Members of Leading Politicians

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This is a guest post by Lee Fang.

In May of last year, Rep. Shelley Moore Capito, now considered the favorite to win West Virginiaโ€™s open Senate seat, stood on a small platform in Charleston, behind a row of tiny trophies in the shape of drillingย rigs.

She was there to congratulate the Energy Corporation of America, a major gas exploration and distribution company, on its plans to open a new building in the stateย capital.

The company needed new space to accommodate over a hundred new employees in comingย years.

โ€œI am honored to attend the groundbreaking celebration of the ECAโ€™s new eastern headquarters,โ€ Capito told the crowd, according to an ECA press release. โ€œThis privately held company has brought economic growth to Westย Virginia.โ€

Though thereโ€™s no record of her having acknowledged it publicly, among those hired by the growing firm is her own son, Arch Moore Capito, who was retained as in-house counsel by ECA after his graduation from Washington & Lee Universityโ€™s law school inย 2011.

The hiring of Arch, named after Capitoโ€™s father, the late West Virginia governor Arch Moore, highlights a growing trend. Major players in the ย gas industry, which faces major regulatory hurdles relating to its extraction and distribution infrastructure, exports, and environmental issues, have taken to hiring the relatives of powerfulย politicians.

In May, Hunter Biden, the son of the vice president, made headlines when he joined the board of Burisma Holdings, a Ukrainian gas producer. Last year, Marty Durbin, the nephew of Senator Dick Durbin (D-IL), was named president of Americaโ€™s Natural Gas Alliance, the primary trade group representing fracking companies. Also last year, EQT Corporationโ€”one of the largest natural gas producers in Appalachiaโ€”registered Robert Shuster, the brother of Rep. Bill Shuster (R-PA)โ€”as aย lobbyist.

Other lawmakers have enjoyed largely unreported family ties to the industry for several years. In 2010, Teddy Carter, the son of Rep. John Carter (R-TX), became a lobbyist for a Texas trade group thatย representsย independent drilling companies involved in fracking as well as traditional oil and gas extraction. Last year, Teddy Carter worked to influence Texas rules governing how water wells are used to supply frackingย projects.

In some cases, politicians with family ties to the gas industry hold sway over decisions critical to the industry. Rep. Shuster, for instance, is chairman of the House Transportation Committee, which oversees pipeline safety regulations. Registration forms show Shusterโ€™s brother was retained to work on โ€œissues related to the regulation of shale gas production and pipeline safety initiativesโ€ onย behalfย of EQT.

Capito is a member of the same congressional committee. As a member of the GOPโ€™s House Energy Action Team, which is largely dedicated to promoting increased fossil fuel development, including fracking, she has been an outspoken advocate for expanded natural gas drilling. And back in 2007, before her son was retained by ECA, she read a statement of praise for ECA into the congressionalย record.

The League of Conservation Voters lists a number of votes in which Capito has sided with the fracking industry. Last year, she voted for a bill that would, in the name of statesโ€™ rights, prohibit the federal government from regulating fracking if a state has even minimal regulations or guidance of its own in place. And she voted against an amendment to the bill that would haveallowedย the Department of the Interior to limit methane emissions from oil and gas drilling on public lands. The amendment was defeated, and the bill โ€” known as the Protecting Statesโ€™ Rights to Promote American Energy Security Act โ€” passed in the House by a wide margin and awaits Senateย action.

โ€œItโ€™s easier and less expensive [for corporations] to attempt to pursue favorable regulation at the state level,โ€ says Mitch Jones, director of the Common Resources Program at Food & Water Watch, which opposed the bill. โ€œThe level of expertise is often lower at the state level than the federal level and the money industry brings to bear is often much moreย influential.โ€

FirstEnergy Corp, an electrical company that relies heavily on natural gas, is one of the top five donors to her campaign committee, with $32,650 in donations from its employees. And employees of ECA and its subsidiaries, including chief executive John Mork, now rank among Moore Capitoโ€™s largest individual donors, with nearlyย $60,000ย inย contributions.

Capito did not respond to a request forย comment.

โ€œECAโ€™s relationship with Congresswoman Capito is cordial and respectful, although our contact with her office has been fairly limited in nature,โ€ says Jennifer Vieweg, a spokesperson for ECA. โ€œAnd, while John and Julie Mork are personal friends with Charlie and Shelley Moore Capito, this relationship has existed since the mid-1980s and long before she enteredย politics.โ€

ECA, a rapidly growing company that recently inked a $90 million partnership with Chinese state-owned Shenhua Energy Co. to drill the Marcellus Shale in southwestern Pennsylvania, has had its share of regulatory violations. In Pennsylvania, the state environmental regulator has cited the company for at least 23 violations since 2008 related to discharging pollutants into public lands andย water.

โ€œDespite the abundance of natural gas and all of the good that comes with responsible development of this resource,โ€ wrote James Flavin, an ECA business operations manager in a trade publication, โ€œunnecessary regulatory and environmental burdens could restrict the industryโ€™s ability to provide low-cost, clean energy for the State of West Virginia and theย nation.โ€

โ€œThe fact that her son is on ECAโ€™s payroll ought to require her to recuse herself from voting on bills to benefit the company which enriches her close family members,โ€ says Lisa Graves, president of the Center for Media and Democracy, a liberal watchdog group. โ€œItโ€™s certainly a conflict ofย interest.โ€

Durbin, Biden, and other Democrats have increasingly aligned with the natural gas lobby as both a geopolitical weapon against Russia and a so-called โ€œbridge fuelโ€ to wean the economy off of more high-carbon fossil fuels, such as coal and oil. In March, Durbin expressed support forย fast-trackingliquefied natural gas exportsโ€”a key lobbying priority of the trade group where his nephew works, Americaโ€™s Natural Gas Allianceโ€”in response to the crisis in Ukraine, though he has since raised concerns about its impact on domestic natural gas prices. For his part, Bidenย traveledย to Ukraine this April to announce a $50 million aid package that included technical support for increasing the countryโ€™s natural gas productionโ€”an investment that could bolster profits at Burisma Holdings, where his son is aย director.

This piece was originally published by The National Memo with support fromย The Investigative Fund at The Nation Institute. Cross-posted withย permission.

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