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by Jason Leopold
Ray Hunt, the Texas oil man who landed a controversial oil production
deal with Iraq’s Kurdistan regional government, has enjoyed close
political and business ties with Vice President Dick Cheney dating back
a decade – and to the Bush family since the 1970s.
Despite those longstanding connections – and Hunt’s work for George W.
Bush as a member of the President’s Foreign Intelligence Advisory Board
– the Bush administration expressed surprise when Hunt Oil signed the
agreement last September.
At that time, administration officials said Hunt Oil’s deal with the
Kurds jeopardized delicate negotiations among competing Iraqi sects and
regions for sharing oil revenues, talks seen as vital for achieving
national reconciliation.
“I know nothing about the deal,” President Bush said. “To the extent
that it does undermine the ability for the government to come up with
an oil revenue sharing plan that unifies the country, obviously if it
undermines it I’m concerned.”
However, on July 2, the House Oversight and Government Reform Committee
released documents showing that senior administration officials were
aware that Hunt was negotiating with the Kurdistan government and even
offered him encouragement.
Hunt also personally alerted Bush’s PFIAB about his oil company’s confidential contacts with Kurdish representatives.
In a letter to Secretary of State Condoleezza Rice, Rep. Henry Waxman,
D-California, committee chairman, complained that the administration’s
comments last year were “misleading.”
“Documents obtained by the Committee indicate that contrary to the
denials of Administration officials, advisors to the President and
officials in the State and Commerce Departments knew about Hunt Oil’s
interest in the Kurdish region months before the contract was
executed,” Waxman wrote.
Waxman said the Hunt-Kurdish case also raised questions about the
veracity of similar administration denials about its role in arranging
more recent contracts between Iraq and major U.S. and multinational oil
companies, including Exxon Mobil, Shell, BP and Chevron.
Plus, there’s the longstanding suspicion that oil was a principal,
though unstated, motive behind the Bush administration’s invasion of
Iraq, which sits on the world’s second-largest oil reserves.
Administration officials – and much of the mainstream U.S. media – have ridiculed the oil motive charge as a conspiracy theory.
Oil Deals
But many of the oil companies now stepping forward to benefit from
Iraqi oil were instrumental in both supporting Bush’s political career
and giving advice to Cheney’s secretive energy task force in 2001.
For instance, Ray Hunt’s personal relationship with the Bush family
dates back to the 1970s as Hunt, the chief of Dallas-based Hunt Oil,
helped build the Texas Republican Party as it served as a power base
for the Bushes rise to national prominence.
The Hunt family donated more than $500,000 to Republican campaigns in
Texas, while Hunt Oil employees and their spouses gave more than $1
million to Republican causes since 1995, according to the Center for
Responsive Politics.
Ray Hunt also had strong ties to Dick Cheney during his years at the
helm of Halliburton, the Houston-based oil-services giant. In 1998,
Cheney tapped Hunt to serve on Halliburton’s board of directors, where
Hunt became a compensation committee member setting Cheney’s salary and
stock options.
In 1999, when Texas Gov. George W. Bush was running for the Republican
presidential nomination, Bush turned to Hunt to help fund his
presidential campaign efforts in Iowa, according to Robert Bryce’s
book, Cronies: Oil, The Bushes, And The Rise Of Texas, America's
Superstate.
“By the summer of 1999, Bush had already raised $37 million but he
wanted to conserve his campaign cash so he turned to a Texas crony, Ray
Hunt, to help fund the Iowa effort,” Bryce wrote. “In July of 1999,
Hunt was among a handful of Bush supporters who each donated $10,000 to
the Iowa Republican party.”
In May 2000, Bush appointed Hunt finance chairman of the Republican
National Committee. Hunt also donated $5,000 to the Florida recount
battle and spent $100,000 on Bush’s inaugural party.
Bush Presidency
When Bush became President in 2001, Hunt emerged as an advisor to
Cheney’s energy task force, according to highly placed executives at
Hunt Oil whom I have been in contact with over the past seven years.
Bush also appointed Hunt to the Federal Reserve Bank of Dallas and to
the PFIAB, giving him access to highly classified information.
Hunt’s son, Hunter, a vice president at Hunt Oil, became another top
energy advisor to the new administration, the company’s Web site said.
One of the topics before Cheney’s task force was the hoped-for
opportunity for American oil companies to regain access to Iraq’s
underdeveloped oil fields as a way to meet increasing U.S. energy
demands.
That opportunity opened up after the U.S.-led invasion and conquest of
Iraq in March and April of 2003, although a stubborn insurgency and
political disarray slowed efforts to modernize the Iraqi oil industry.
Further bolstering Hunt Oil’s influence in the region in November 2003,
Bush named James Oberwetter, a Hunt Oil vice president, to be U.S.
Ambassador to Saudi Arabia.
Hunt Oil finally nailed down a major oil agreement with the
semi-autonomous Kurdish region on Sept. 7, 2007. But the deal outraged
many Iraqi officials because it was enacted before a national law could
be adopted on the distribution of oil revenues. Bush administration
officials also criticized the deal.
At the time, Rep. Dennis Kucinich, D-Ohio, questioned whether Ray Hunt
benefited from inside information from Bush, Cheney and/or other White
House officials about Iraq’s stalled national oil law.
"As I have said for five years, this war is about oil,” Kucinich said.
“The Bush administration desires private control of Iraqi oil, but we
have no right to force Iraq to give up their oil. … The constitution of
Iraq designates that the oil of Iraq is the property of all Iraqi
people."
Amazon Pipeline
The production-sharing agreement Hunt Oil signed with the Kurds is not
the company’s first controversial energy project. Nor is it the first
time the company has received help from the Bush administration for its
work overseas, as documents obtained by Waxman’s investigators show.
In August 2003, the Bush administration threw its support behind the
Camisea gas-pipeline project in the Amazon jungle in Peru that drew
international criticism because it threatened to destroy a pristine
stretch of rainforest and jeopardized the lives of indigenous people.
The London Independent reported that the beneficiaries of the project
“would be two Texas energy companies with close ties to the White
House, Hunt Oil and Kellogg Brown & Root, a subsidiary of Vice
President Dick Cheney's old company, Halliburton.” [Independent, Aug.
4, 2003]
When the pipeline deal went through, Hunt hired Halliburton to conduct
the engineering work on the project as well as to build a $1 billion
export terminal on the coast.
“Bush Pioneer Jose Fourquet played a pivotal role in the financing of a
massive Peruvian natural gas project that benefited Hunt Oil Co., whose
chairman, Ray L. Hunt, signed up to be a Pioneer and is a longtime ally
of the president,” the Washington Post reported on May 17, 2004.
“Fourquet, the Treasury Department's U.S. representative to the
Inter-American Development Bank, rebuffed the official written and oral
recommendation from other U.S. officials to vote ‘no’ on the project.
“Instead, he abstained on $135 million in financing for the project,
allowing it to proceed. Opposition from the United States, a primary
funder of the IDB bank, would have jeopardized the deal,” the
Washington Post reported.
Wink and Nod
Now, the new evidence suggests that Hunt Oil at least benefited from
the administration’s wink and nod in striking the Kurdish oil deal.
In a July 12, 2007, letter to PFIAB, Hunt disclosed that Hunt Oil was
“approached a month or so ago by representatives of a private group in
Kurdistan as to the possibility of our becoming interested in that
region.”
Hunt described a visit of a Hunt Oil survey team and stated, “we were
encouraged by what we saw. We have a larger team going back to
Kurdistan this week.”
In a second letter to PFIAB, dated Aug. 30, 2007, Hunt revealed that he
would travel to Kurdistan in early September for meetings with the
Kurdistan regional government, including its president, prime minister
and oil minister.
Those meetings led to the oil agreement between Hunt Oil and the
Kurdish leaders -- and now have raised questions about Bush’s denial
that he had any advanced knowledge about the deal.
“State Department officials similarly disavowed involvement in the
contract,” Waxman said in the letter to Rice. “Department officials
claimed that to the extent they were aware of any negotiations, they
actively warned Hunt Oil not to enter into a contract because it was
contrary to U.S. national security interests.
“Documents obtained by the Committee indicate that contrary to the
denials of Administration officials, advisors to the President and
officials in the State and Commerce Departments knew about Hunt Oil’s
interest in the Kurdish region months before the contract was executed.”
Waxman asked Rice to cooperate with the committee’s investigation. Hunt
Oil declined to comment on Ray Hunt’s relationship with Bush or his
administration.

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