Mr. Palin goes back to Prudhoe
by Mike Ross
ktuu.com
Tuesday, Aug. 21, 2007
ANCHORAGE, Alaska -- A decision by Alaska's first family is raising concerns about a possible conflict of interest involving Gov. Sarah Palin and the oil industry.
The governor's husband, Todd Palin, is back on BP's payroll. Gov. Palin says his return will not influence her decisions involving the oil industry, but one former lawmaker who wrote an ethics guideline for the administration believes it's a bad move at the wrong time.
A few weeks after Gov. Palin was elected, Todd Palin took an unpaid leave of absence from his job as a North Slope oil field production operator.
But, the state's first husband recently returned to BP's payroll.
"You know, we've never hidden the fact that Todd had a job and he's created to work," said the governor. "He wants to keep working and after seven months of not working he is ready to go back."
Todd Palin said the family needs the extra income.
"I mean, we're still fairly young and we've got kids going into college. Some governors and their spouses, I'm sure, are independently wealthy, but we're not one of those couples. So we have to watch out for our kids' future," Mr. Palin said.
The governor has called a special session of the Legislature to possibly rewrite the Petroleum Profits Tax. Her proposals could have a multi-million dollar impact on her husband's employer. BP could also become a major player in the natural gas line project.
Former state Rep. Ethan Berkowitz co-authored the "Ethics White Paper" with former U.S. Attorney Wev Shea at the request of the governor shortly after she took office. He doesn't agree with Mr. Palin's decision to go back to work.
"It's bad timing. It's a tough situation for the family, but I think the interests of the state have to come first," Berkowitz said. "In the interest of the state, you need to make sure you're above the appearance of impropriety."
He said Todd Palin's employment with a major North Slope producer could raise questions and problems.
"The short version is, I think this adds an unnecessary, complicating variable to a very complex situation. Going through a revision of the oil and gas tax is going to be difficult enough as it is and you want as few distractions as possible. This will amount to a distraction," Berkowitz said.
But the governor and her husband strongly believe there's no conflict of interest.
"A conflict could be perceived if my spouse's position was in a management position with an oil company. But, because it's a blue-collar, in-the-field type job, working in a facility as a production operator, separating the oil, the gas and water; it's not a management position where decision are being made for the future of investment with this oil company in Alaska. So, it hasn't been perceived, on our part anyway, as a conflict of interest," Gov. Palin said.
Mr. Palin agreed that his position with BP makes a difference in the ethical debate.
"Like Sarah said, I'm not in management and I'm not making decisions for the company," Todd Palin said.
The first couple points out that Mr. Palin has worked on the North Slope since 1989, even during the years prior to Palin's election, when she served as chairman of the Alaska Oil & Gas Conservation Commission for former Gov. Frank Murkowski.
"If I thought there would be a conflict of interest, where I was going to be doing any favors for one company because my spouse happened to be a union hand, blue-collar for that company, I would be the first to say, 'This isn't right, I don't like it and it's not going to happen,'" stated the governor.
Berkowitz contends it's all about perception.
"There's at least a perception of a conflict of interest when you have a family member working in the industry and you're reviewing the oil and gas taxes. So, just the perception of a conflict is somewhat complicating," Berkowitz said.
Rep. Les Gara, one of the leading supporters of the governor's Alaska Gasline Inducement Act, doesn't see a conflict with Mr. Palin's job.
"The big problem is when people start voting the way the people giving them money tell them to vote, right? That's why the FBI is in town. I don't see this as that problem," said Gara, D-Anchorage.
But even the governor's supporters concede that her husband's decision to go back to work for a major oil company will put her actions under closer public scrutiny.
Steve Rinehart, a spokesman for BP, said the company feels Mr. Palin is a skilled worker and is glad to have him back, but would not comment on whether his employment creates a conflict of interest for the governor.
Contact Mike Ross at mross@ktuu.com |
