Louisiana and other energy-producing states have tried for more than 50 years to get an equitable share of revenues produced from oil and gas production in the Gulf of Mexico. Even though the Gulf of Mexico produces 30 percent of U.S. domestic oil generating up to $7 billion in oil and gas revenues every year, the state received less than 1 percent of that money, or about $32 million in 2005.

Jindal’s bill gives states the discretion to decide whether to open their coast to drilling and whether to allow drilling for natural gas, oil, or both. The bill places a permanent moratorium on drilling for oil and gas up to 50 miles offshore unless a state Legislature passes legislation to remove itself from the moratorium and allow exploration. From 50 to 100 miles, states must decide within one year whether to drill for natural gas, and have until June 30, 2009, to decide whether to drill for oil in the area. Waters outside 100 miles would be opened for oil and gas drilling.

The bill also includes price thresholds in Outer Continental Shelf leases that lost billions in state royalty revenue. The bill gives the U.S. Secretary of Interior the authority to renegotiate contracts or levy a fee on each unit of production of oil and gas. This could produce an additional $1 billion in royalties each year, helping offset the cost of the bill. Jindal’s bill mandates that all future leases include price thresholds to avoid any oversight again in the future.

Anchorage Daily News (AK) - July 13, 2007….. Until this year, Bill Bobrick was the busiest lobbyist in the city….. Begich was the best man at Bobrick’s wedding in 1998 and the two have known each other for decades. Thursday, Begich said he never pushed anyone to hire Bobrick. In fact, people don’t really need a lobbyist to do business with the city, he said……Bobrick’s conspiracy conviction involved passing bribes….

In March of 2005, I placed the bribery of Ben Stevens and Veco under a spotlight that was impossible to ignore until the FBI raided their offices eighteen months later. In that time between my initial accusations and the FBI’s raids, I was accused of making frivolous accusations by numerous politicians and newspaper editors.

Today Mark Begich accuses me of making frivolous accusations again, as I spotlight the fact that he and Ted Stevens, both concealed large gifts from supporters while using their elected offices to deliver multi-million dollar favors at taxpayer expense… to those who gave them their gifts. The biggest single difference between what Ted has done and what Mark has done is that Ted Stevens has been indicted for his actions and Mark Begich has not.

When Jon Rubini gave Mark Begich an interest in two midtown office buildings, Mark Begich concealed that gift for four years. When Ted Stevens received a free remodel of his Girdwood home, he concealed that gift for six years and that is what he has been indicted for. When Ted Stevens was asked about his gifts from Veco, he lied about them. When Mark Begich was asked by Anchorage Daily News reporter Kyle Hopkins why Jon Rubini gave him an interest in two mid town office buildings, Begich also lied.  

Begich lied when he told Kyle Hopkins that he had “negotiated down” to make the deal happen, taking a smaller than normal commission, saying he had only received $22,500, on a large sale. Attached is a copy of the page from the closing statement showing the commission. By viewing the attached you will see that Realty Executives, the company Begich worked for, received a $50,000 commission. You will also find the quotes of Begich telling the Daily News he compromised his commission to $22,500.

Begich later said Rubini gave him an interest in the two buildings to make up for the small real estate commission he had earned four months prior.

I am a commercial real estate broker. I have reviewed the closing documents of the transaction to which Begich attributed his gift. There is no mention of the interest in the office buildings or additional commissions due in the closing statements, which makes his explanation highly unlikely.

Begich’s $50,000 commission was for the sale of the north half of the city block, between 5^th and 6^th where, after the sale, the National Park Service Building was built by Jon Rubini. At that time both Mark Begich and Ted Stevens were business partners with Jon Rubini.

A different agent sold the south half of the block that is now used as a parking lot and that agent also got a $50,000 commission which was paid at closing. His commission is shown on a separate closing statement that deals with the south half of the block.

Bond Stevens and Johnston listed the property and received a listing commission for both the north and the south half equaling approximately the same as the two selling agents were paid. There is nothing about the commissions paid in this transaction that was compromised to, as Make Begich has said, “to make the deal happen.”

John Rubini has a track record of giving politicians sweet deals on real estate and then buying them back out of the same deals as he collects multi-million dollar favors at taxpayer expense. Rubini let Stevens buy into a real property development for $50,000 and then bought him out for a million and fifty thousand dollars a few years later. He gave Mark Begich an interest in two properties free of charge and then bought him out four years later for $52,000.

In the meantime Begich helped Rubini secure a four million dollar per year tax break on real property he owns and helped him double his money on a piece of property he picked up for $1,500,000 and sold to the federal government one year later for $3,500,000.

At first Mark hid the gift Rubini gave him. When he got caught hiding it he lied about its amount, and has yet to comply with his promised open book policy by producing the records necessary to answer the question of whether he reported it to the IRS as a gift, or a commission as he now claims it was. He has also failed to ask his former broker to produce the paper trail that has to exist, if it were in fact a commission.

Attached is proof that Begich has lied to the Daily News about some of the facts surrounding his gift from Rubini. I have been a commercial real estate broker for 34 years. Begich’s explanation of the remaining parts are so far removed from how things work in real estate, the entire explanation defies believability. (http://citizens4ethics.com/docs/Begich_Bobrick_Weimar_3-Peas.pdf)

Without subpoenas or reporters curious enough to inquire why Begich lied to the Daily News, all I can do is weigh a preponderance of the best evidence available. From it I conclude that Begich concocted a not so clever scheme to mask a bribe as a commission. Whether he is elected or not, I intend to pursue this matter with the same vigor I pursued Ben Stevens, Veco, and the bribery of our Legislature.

The only thing more embarrassing for Alaska than watching Ted and Don go to jail, would be to watch an elected Mark Begich go to jail right behind them.

Most Sincerely,

Ray Metcalfe

This distribution was paid for by the Ray Metcalfe for Ethical Government Committee, PO Box 233809, Anchorage Alaska, 99523.

• Sen. John Cowdery (R- Anchorage), Senate Rules Committee Chair: $24,550.
• Rep. Pete Kott (R- Eagle River), former speaker of the House: $21,300.
• Rep. Norman Rokeberg (R-Anchorage), House Rules Committee Chair: $18,000.
• Rep. Vic kohring (R- Wasilla), House Oil and Gas Committee Chair : $14,708.
• Gov. Frank Murkowski: $6,500 (excluding donations to past U.S. Senate races)
• Rep. Kevin Meyer (R-Anchorage), House Finance Committee Co-Chair: $12,300.
• Rep. Mike Chenault (R- Nikiski), House Finance Committee Co-Chair: $12,000.
• Rep. Lesil McGuire (R-Anchorage), House Judiciary Committee Chair: $12,000.
• Sen. Con Bunde (R-Anchorage), Senate Labor and Commerce Committee Chair: $11,500.
• Sen. Lyda Green (R-Wasilla), Senate Finance Committee Co-Chair: $9,000.
• Rep. Mike Hawker (R-Anchorage): $8,050.
• Rep. Tom Anderson (R-Anchorage), House Labor and Commerce Chair: $8,000.

THE CENTER FOR RESPONSIVE POLITICS

Microsoft PAC & Individual
Contributions to the Senate, 1995-00*
Frank H. Murkowski (R-Alaska) $1,000

Ted Stevens (R-Alaska)$2,000

Microsoft PAC & Individual
Contributions to the House, 1999-00*

Don Young (R-Alaska)$2,000

The first time I met Bob Penny, November 1978, he showed up out of nowhere with the maximum contribution to assist me in retiring my campaign debt and told me how brilliant my campaign had been. He then invited me to a party at his house where I grazed on ice cold shrimp plucked from the first ice sculpture I had ever seen.

The next time I saw Bob Penny he was standing in the hallway in Juneau with his hand out asking me to help fill it with State money.

RM

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