Bush Family and Its Inner Circle Play Central Role in Lawsuits Against Denton, Texas Fracking Ban

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On November 4, Denton, Texas, became the first city in the state to ban the process of hydraulic fracturing (โ€œfrackingโ€) when 59 percent of voters cast ballots in favor of the initiative. It did so in the heart of the Barnett Shale basin, where George Mitchellย โ€” the โ€œfather of frackingโ€ย โ€” drilled the first sample wells for his company Mitchell Energy.

As promised by the oil and gas industry and by Texas Railroad Commission commissioner David Porter, the vote was met with immediate legal backlash. Bothย the Texas General Land Officeย and theย Texas Oil and Gas Associationย (TXOGA)ย filed lawsuits in Texas courts within roughly 12 hours of the vote taking place, the latest actions in the aggressive months-long campaign by the industry and the Texas state government to fend off the ban.

The Land Office andย TXOGAย lawsuits, besides making similar legal arguments about state law preempting local law under the Texas Constitution, share something else in common: ties to former President George W. Bush and the Bush family atย large.

In the Land Office legal case, though current land commissioner Jerry Patterson signed off on the lawsuit, he will soon depart from office.ย And George Prescott Bushย โ€” son of former Florida Governor and prospective 2016 Republican Party presidential nominee Jeb Bush and nephew of former President George W. Bushย โ€”ย will take hisย place.

George P. Bush won his land commissioner race in a landslide, gaining 61 percent of the vote. Given the cumbersome and lengthy nature of litigation in the U.S., it appears the Land Office case will have only just begun by the time Bush assumes theย office.

The TXOGA legal complaint was filed by a powerful team of attorneys working at the firm Baker Botts, the international law firm named after the familialย descendantsย of James A. Baker III, a partner at the firm.

Baker III served as chief-of-staff under both President Ronald Reagan and President George H.W. Bush,ย Secretary of State under George H.W. Bush and as a close advisor to President George W. Bush on the U.S. occupation of Iraq. He gave George P. Bush a $10,000 donation for his campaign for his race for landย commissioner.

James A. Baker III Campaign Contribution George P. Bush

Photo Credit: Texas Landย Commission

The Energy Policy Act of 2005,ย which exempts the oil and gas industry from the Safe Drinking Water Act, the Clean Water Act and the National Environmental Policy Act for fracking,ย is seen by critics as the legacy of ashes left behind by the George W. Bushย Administration.

Yet almost a decade later, the two lawsuits filed against Denton show the Bush oil and gas legacy clearly lives on and stretches from the state where the fracking industry was born all the way to Iraq and backย again.ย 

Jeb and George P. Bush: Frackingย Investors

Besides sharing blood as father and son, Jeb Bush and George P. Bush also operate inside the world of frackingย finance.

Jeb works at the firmย Britton Hill Holdings LLC, while George Prescott works at St. Augustine Capital Partnersย and served a short-lived stint on the board of directors of the Midland, Texas-based fracking exploration and production company, Arbella Exploration from February through September.

โ€œIts first investments have been tied to the exploitation of shale oil and gas in the U.S.,โ€ explained an article in Bloomberg. โ€œBritton Hill raised more than $40 million for its first fund in May 2013, according to a private placement notice filed with the SEC at theย time.โ€

Jeb Bush; Photo Credit: Wikimediaย Commons

Britton Hill has investments in a company fracking in the Marcellus Shale basin and another that owns a fleet of gas carriers seeking to export U.S. propane to Asia. Mitch Jones, common resources director for Food and Water Watch, wrote a blog postย critical ofย Jeb Bush and Britton Hill the day the Bloomberg article cameย out.

โ€œThese relationships, where politicians move between Washington and Wall Street, between government and finance and resource exploitation, is another reason why we need to get money out of politics,โ€ wrote Jones. โ€œItโ€™s these sorts of relationships that corrupt our system and provide the permanent political-business elite with their hold on ourย government.โ€

The critique promulgated by Jones about Jeb Bush could just as easily apply to his son, who recently said his father is โ€œmore than likelyโ€ to run for president in 2016.

According to multiple press accounts and an independent DeSmogBlog review of Texas campaign finance data, George P. Bush took hundreds of thousands of dollars from the oil and gas industry in his land commissioner electoral race. He also received the endorsement of the Texas Oil and Gas Association’s political action committee, the plaintiff for the other lawsuit.

โ€œGeorge P. Bush fully appreciates the role a strong domestic energy industry plays in ensuring our state and our nationโ€™s prosperity and security,โ€ Robert L. Looney, president of the Texas Oil and Gas PAC stated in endorsing him. โ€œMr. Bush is committed to advancing public policy that ensures Texas oil and gas producers can power our state forward and create good-payingย jobs.โ€

Photo Credit: George P. Bush forย Texas

Like Britton Hill Holdings, St. Augustine Capital Partners also invests in fracking, according to its website.ย 

โ€œSt. Augustine has participated in partnerships with seasoned operators to develop drilling programs in the Marcellus and Permian Basins, in addition to offering financial advisory services for those opportunities,โ€ St. Augustine explains.

โ€œSt. Augustine provides business development for dynamic middle-market service companies ranging from liquid storage construction to logistical operations,โ€ the firm further details. โ€œAdditionally, St. Augustine has participated as a general partner for numerous oil and gas exploration and production related projects in a variety of geologicalย formations.โ€

The firm also โ€œhas worked closely withโ€ the Texas Railroad Commission, according to itsย website.

Commissioner David Porter; Photo Credit:ย Texas Railroadย Commission

In the months leading up to the Denton vote, the Railroad Commission situated itself as the industry’s go-to spin machine in the attempt to discredit activists fighting for a fracking ban. Railroad commissioner David Porter, who formerly worked as an oil and gas industry accountant, was also one of the first entities out of the block to say an affirmative ban vote in Denton would receive ruthless contestationย by the Texasย government.

Serving as land commissioner in Texas is often a resume padder before running for governor, an article about George P. Bush published in GreenWire explained.

โ€œ[The] Texas land commissioner [is] a powerful post that controls the state’s oil and gas contracts,โ€ the article explains. โ€œEvery land commissioner in the past three decades has gone on to run for lieutenant governor orย governor.โ€

Baker Botts: From Texas to Iraq andย Back

One of the co-counsel for Baker Botts in its lawsuit against the City of Denton is Evan Young, part of a powerful legal cadre that includes former Texas Supreme Court Justice Thomas Phillips. Phillipsย testified in front of the Denton City Council in July in opposition to the Denton fracking ban proposal on behalf of TXOGA.

Phillipsย also concurrently works on the legal defense team for former Texas Republican Governor Rick Perryย โ€” 2012 Republican Party presidential nominee and former chair of the powerful Interstate Oil and Gas Compact Commissionย โ€”ย who faces state-level felony charges in Travis County for abuse of power.ย 

According to his Baker Botts biography, Young formerly clerked for the conservative U.S. Supreme Courtย Justice Antonin Scalia and worked as legal counsel in the Office of the Attorney General under Attorneys General Alberto R. Gonzales and Michael B. Mukasey from 2006 through the end of the presidency of George W.ย Bush.

โ€œWhile on the Attorney Generalโ€™s staff, he accepted a detail to the U.S. Embassy in Baghdad, Iraq,โ€ explains his Baker Botts biographical sketch, โ€œwhere he was the Deputy Rule of Law Coordinator. In that position he worked to assist the Iraqi government in its efforts to strengthen its legalย regime.โ€

Among the legal regimes Baker Botts helped create while Young was still working for the U.S. Department of Justice wasย one helping oil flow out of the ground in occupied Iraq and into the U.S. As of 2012, the U.S. is one of the world’s biggest importers of Iraqi crude, according to the U.S. Energy Information Agency (EIA).

Table Credit: U.S. Energy Informationย Agency

An article published by American Lawyer in 2007 explains that Baker Botts helped cut a controversial legal deal between Hunt Oil and the Kurdish Regional Government (KRG).

That deal gaveย Hunt the right to explore oil in Kurdistan, the first U.S. company given the green light to do so. The Iraqi Constitution that the U.S. helped write says making such a move isย illegal.ย 

โ€œNot only was the deal made in a war zone, but Iraq is still working on oil resources legislation,โ€ wrote American Lawyer. โ€œUnder the October 2005 Iraqi Constitution, local oil is owned by ‘the Iraqi people.’ย โ€œ

Ray Hunt, CEO of Hunt Oil Company, gave George P. Bush $25,000 for his campaign according to Texas campaign finance data. And the Baker Botts Amicus Fund gave him $2,000 worth of donations, with Young and Phillips each donating $500 to get George P. Bushย elected.

Ray Hunt Hunt Oil Campaign Contribution George P. Bush

Image Credit: Texas Ethics Commissionย 

In late July, Iraq’s Oil Ministry launched a lawsuit against the Kurdish Regional Government in a U.S. District Court in Houston for what it says is a million barrels of illegally stolen oilย exported out of Kurdistan โ€” which is still sitting on a tanker called the Unitedย Kalyvryta 60 miles off the coast of Texas in Galvestonย Bay.

The Oil Ministry pointedย to the Iraqi Constitution in its lawsuit as the legal precedent.

In March 2014, just months before the Iraqi government brought the lawsuit, Baker Botts published a legal memo on the legal and geopolitical ramifications of Kurdish oil exports.

Image Credit:ย VesselFinder

Constitutional, โ€œBig Governmentโ€ Doubleย Standards?

Though Baker Botts cited the Texas Constitution in its lawsuit against the City of Denton, the Iraqi Constitution was disposable for the firm and its client Hunt Oil when it came to procuring oil exploration and exportation rights inย Kurdistan.ย 

Baker Botts’ counsel also seems to have brushed aside concerns by both the U.S. and Iraqi government that the extra legal maneuveringย for oil exploration and production rights in the area would create regional instability, the blowback of which is now visible in the form of the ascendant and lethal Islamic State.

Further, Sharon Wilson, an organizer for Earthworksย โ€” an environmental groupย that campaigned for the fracking ban in Dentonย โ€”ย pointed to a quote from George P. Bush back in October. โ€œEnoughโ€ฆbig government solutions to our problems,โ€ George P. Bush said at an October event his father Jeb Bush also spokeย at.ย 

โ€œDenton residents, not politicians, directly spoke in overwhelming numbers that they donโ€™t want fracking in their city,โ€ Wilson told DeSmogBlog. โ€œOverturning the will of the people by government fiat is the very definition of big government. George P. is going to have to put his money where his mouth is or decide if his mouth is where his money comesย from.โ€

Photo Credit: Wikimediaย Commons

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Steve Horn is the owner of the consultancy Horn Communications & Research Services, which provides public relations, content writing, and investigative research work products to a wide range of nonprofit and for-profit clients across the world. He is an investigative reporter on the climate beat for over a decade and former Research Fellow for DeSmog.

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