Key Senate Dems go soft on bill to close a $10 billion loophole in oil company royalty payments, possibly dooming the measure. The USA Today story says Sens. Dianne Feinstein of California and Jeff Bingaman of New Mexico, both recipients of large contributions from oil companies, are echoing Big Oil’s line that the House bill might have “legal” problems.
That’s hooey, according to the bills’ House authors. The loophole plug, passed as a priority item in the House’s first 100 days, applies only to future royalties–not the $1 billion Big Oil has already avoided paying even as profits spiked to record highs.
The USA today story notes that “Bingaman was the top recipient of oil and gas contributions among Senate Democrats in 2001-06, raising $115,484, according to figures from the Center for Responsive Politics. Feinstein got $50,000 from oil and gas interests. That’s on top of the $128 million that the oil industry spent just on lobbying in the 2005-06 election cycle. Of course both senators deny being the least bit influenced by oil’s Ka-Ching for their war chests.
Corporate interests depend on the Senate to delay, soften or kill House bills they don’t like. Bingaman has long been tight with the oil and gas industry , but it’s a disappointment to see Feinstein climbing aboard the oil rig.
Both senators say they want to avoid a lawsuit by oil companies. Why? The odds are long that the government would win, and the oil company financial and profit info that could come out as part of the trial would be gripping stuff.