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Udall campaign reacts to oil story; more on the original article
Seizing upon a recent story discussing Republican U.S. Senate candidate Bob Schaffer’s involvement in securing an Kurdish oil contract, the Mark Udall campaign rolled out two national security experts Friday afternoon to lambaste the GOP candidate.
The campaign’s two experts — Rand Beers, former senior member of National Security Council staff under three recent Republican presidents and Larry Korb, former assistant secretary of defense under President Ronald Reagan — criticized Schaffer for his work in Iraq.
Pressed by Denver Post reporter Michael Riley, who has called Aspect Energy’s dealings with the State Department “unclear,” the duo said Schaffer and his former employer should have known better — even with the mixed signals the State Department may or may not have been sending to companies involved in the region.
“The policy of our government is not being helped by people doing things like this,” Korb said.
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In defense of the article itself, which Riley’s questions tacitly attacked, Aspect Energy itself declined to comment on its private correspondence (if there ever was any) with the State Department in Washington or in Iraq. And, at the time the article was written, the State Department, via a Washington-based spokesman who took 24 hours to study our inquiry, maintained it had told all companies doing business in Iraq to deal with the federal government.
From State Department spokesman John Fleming’s e-mail to us the afternoon of July 9: “We have always advised (and continue to advise) companies that they incur significant political and legal risk by signing any contracts with any party (including the KRG) before national laws governing oil and gas are passed by the Iraqi parliament.
“The United States’ position is that it is in the interest of all Iraqi parties to enact a set of national laws to govern the oil and gas industry, and to develop an equitable revenue sharing system. Passage of national laws will contribute to promoting Iraqi national unity, a key goal of the U.S. and the international community.
“This legislation will improve the prospects for Iraq ’s economic development and will increase incentives for all parties to work together to support Iraq ’s development.”
The documents released earlier this month by the House Oversight and Government Reform Committee might show a mixed approach to one Dallas-based energy firm, but there is no evidence out now that proves or even hints that a similar approach was taken with Aspect Energy.
Indeed, even Riley notes in his own blog: “Alex Cranberg said in an e-mail that he wouldn’t comment about any communications between his company and the State Department over the issue. And officials with the U.S. Embassy in Baghdad would only confirm that no one working on the oil issue there talked directly to either Aspect or Schaffer. Cranberg might do Schaffer a favor by clarifying what communication they had with the State Department or other U.S. officials — and if they were of a similar tone to those with Hunt.” (emphasis added)
Political Notebook, too, has sought clarification on Aspect Energy’s private communication with the State Department. However, until something new comes out, Aspect Energy’s dealings with the Kurdistan Regional Government to obtain an oil contract seem to run contrary to the State Department’s position in 2007 and the president’s position on the issue.
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UPDATE: The Rocky Mountain News confirmed on its Web site this evening what we were told this week. According to the newspaper’s story, Cranberg said there was no communication between Aspect Energy and the State Department:
“‘We were not asked by the State Department not to do this deal,’ (Cranberg) said in an e-mail. ‘Of course we are aware of the general State Department warnings about contract legality and accordingly took extensive measures to assure ourselves that the contract is, in fact, in perfect accordance with the Iraqi Constitution.’” (This full quote appeared in the article’s 5:22 p.m. version of the story.)
(Here’s a copy of the legal opinion Aspect Energy used to back its oil deal with the Kurds.)
Hence — by Cranberg’s own admission — the Hunt Oil situation (and the mixed messaging that occurred) is not akin to Aspect Energy’s situation. It seems there was no encouragement of the deal alongside the agency’s public, official discouragement.
We have asked that Aspect Energy pass along any e-mails, memos or other correspondence that shows such encouragement or mixed messaging. To date, nothing has been sent along. We’ll update you if anything becomes available.
*Schaffer photo from the Associated Press.
Comments
By Aobexup
July 29, 2008 10:55 AM | Link to this
The site’s very professional! Keep up the good work!