Federal Politics

Published — October 27, 2000 Updated — May 19, 2014 at 12:19 pm ET

Did taxpayers lose on deal for oil field?: Elk Hills timeline

Introduction

1922 WASHINGTON, October 27, 2000 — 1912: Out of concern for the long-term availability of oil supplies for naval ships, President Taft establishes Naval Petroleum Reserve No. 1 near Bakersfield, Calif. Over the next few years, his administration adds two more oil and three oil shale reserves in the West to the program. They remain essentially undeveloped until 1976.

1922: NPR-1, informally known as Elk Hills, is part of the “Teapot Dome Scandal” in which oil barons bribed Secretary of the Interior Albert Fall for secret oil drilling leases during the Harding administration.

1976: During President Carter’s term, the Arab oil embargo of 1973-1974 leads Congress to pass the Naval Petroleum Reserves Production Act to open NPR-1 and 3 for production on July 3. The law required that the reserves be operated at maximum efficient rates. From 1976 to its transfer to Occidental in February 1998, Elk Hills alone generated $17.1 billion in revenue for the U.S. Treasury, against expenses of $3.3 billion.

1985-1994: In every year but one, the White House’s Office of Management and Budget proposes the sale or lease of Elk Hills under the Reagan, Bush and Clinton administrations, but each time, the Democrat-controlled Congress shoots the proposal down.

July 1993: The Senate Armed Services Committee requests that the Department of Energy utilize the National Academy of Public Administration to study management alternatives for the Naval Petroleum and Oil Shale Reserves, including the concept of corporatization, or turning the property over to a government corporation.

May 1994: The NAPA report recommends turning Elk Hills and the other Reserve properties into a wholly owned, for-profit government corporation.

November 23, 1994: A memo appears on the desk of Energy Secretary Hazel O’Leary asking her concurrence to have Elk Hills, by far the most lucrative Naval Reserve, run by a public corporation. All assistant secretaries have signed off on the proposal.

December 2, 1994: Assistant Secretary for Fossil Energy Patricia Godley meets with Deputy Secretary Bill White, Deputy Assistant Secretary for the Reserves Captain Ernest Hunter and OMB Associate Director T.J. Glauthier to discuss corporatization. DOE memos indicate that “OMB continues to favor immediate privatization of the Reserves as the preferred option.”

December 19, 1994: At a news conference with President Clinton and Vice President Gore on the “Middle Class Bill of Rights” and “Reinventing Government,” Deputy Energy Secretary White announces the administration’s intent to sell Elk Hills.

September 7, 1995: On the second anniversary of “Reinventing Government,” Vice President Al Gore presents a report by the National Performance Review, an interagency task force that made recommendations for more than 180 specific cuts in government. President Clinton says these cuts will save more than $70 billion in the next five years. One of the recommendations is to sell Elk Hills.

February 10, 1996: The Defense Authorization Act of 1996, which spells out the procedure for selling Elk Hills within two years, is signed into law.

October 1, 1997: The deadline for all bids on Elk Hills to be submitted, at noon in Houston.

October 6, 1997: DOE announces Occidental Petroleum Corp. is the high bidder on Elk Hills, at $3.65 billion. DOE does not divulge, to this day, the other bidders’ names or offer amounts.

February 10, 1998: Occidental takes over control of Elk Hills from the U.S. government.

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Mark Sullivan
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Mark Sullivan

Trump needs to conduct these activities because the entire MSM media, excluding Fox, is campaigning against him 24/7/365.

Didn’t Monica’s boyfriend’s wife and various criminal enterprises outspend Trump by almost 2-1?

CapitalistRoader
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CapitalistRoader

Why wouldn’t he get an early start on fund raising? Hillary outspent him two-to-one in 2016. The Dem’s are the party of big money. The President knows this and is attempting to get a jump on it. Of course the Dem candidate will outspend him in 2020 so it’s only rational that he starts fund raising now.

George Young
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George Young

Oh brother. We just 8 years of the Campaigner – in – Chief. Where was this journalistic rectal thermometer then. Just another article about 2000 words too long that merely takes another slap at Trump for something he far from initiated.

j stevenson
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j stevenson

The big difference between Trump and all the rest is his refusing to accept funds from lobbyists, so they don’t have the White House access they are used to. These are the donors who buy the presidency and are as pixxed off that he won the election as are the media and the Dems. Lobbyists have never been shut out of the WH and Trump has told them he is not for sale.

Anonymous
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Anonymous

Trump needs to be impeached and tossed in prison. Then have the key thrown away so he will never be free. Then he can see how it feels not to have freedom.

Mark Sullivan
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Mark Sullivan

Thank you for the usual insightful leftist low IQ Snowflake response.

barney
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hes not imprisoning them hes sending them back to their country chill tf out

SOUTH JERSEY
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SOUTH JERSEY

WHY DONT YOU HAVE FREEDOM?

Tom Larkin
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Tom Larkin

First, something positive. I was happy to learn of empirical information in article. BUT, the article was so slanted against President Trump as to be deemed fake news (“Perhaps Trump just lied.” (Two different issues)). The article mentions that President Trump raised over $67 million, but ended 2018 with $19 million. President Trump spent over $40 million 2016 and 2017. President Trump conducted 57 political rallies. The article notes the hats and T-shirts sold, but NEVER MENTIONS THE INCREASE IN THE NUMBER OF REPUBLICAN SENATORS during a mid-term election that lost the House and the number of political rallies in… Read more »

Ted Sirois
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Ted Sirois

At least Trump is getting donations from willing donors. Fresh from his first election, Obama used billions of our children’s tax dollars to save thousands of union jobs in the car industry and bailed out the banks and many Wall Street businesses. This secured his source of reelection funds for his reelection four years later.

South Jersey
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South Jersey

TRUMP 2020; IS AN AMAZINGLY SMART MAN! VERY ORIGINAL & CREATIVE. I AM HAPPY TO HAVE HIS AS POTUS.

SOUTH JERSEY
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SOUTH JERSEY

THIS ARTICLE WAS OBVIOUSLY WRITTEN BY, A TRUMP-HATE-GROUP. THAT FEELS; IT IS NOT NORMAL TO BE SUCCESSFUL WITH YOUR OWN BRAND NAME. WHEN, IF FACT, IT IS NORMAL! >>>>> THIS IS >>> FAKE NEWS!!! <<<< ie: A PACK-OF-LIES; SPUN INTO; DEFAMATION OF CHARACTER. FOR A SINISTER-AGENDA OF; FASCIST DEMOCRATIC SOCIALIST, COUP D'ETAT

David
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David

Are you on some kind of drugs? Writing in caps makes me think that you are grumpy old fart or a uneducated hillbilly.