Houston Chronicle

Questions remain on condo use

Lobbying firm in Pruitt controvers­y has long helped oil industry with EPA, but agency says rate for apartment didn’t violate ethics rules

- By James Osborne

WASHINGTON — The lobbying firm at the center of the controvers­y surroundin­g EPA Administra­tor Scott Pruitt’s $50 a night Washington apartment is well known to oil and gas companies in Texas and beyond seeking to navigate the agency’s environmen­tal regulation­s.

Williams & Jensen last year lobbied on behalf of Midlandbas­ed Concho Resources on EPA regulation­s related to oil and gas production, according to federal lobbying records. The firm also lobbied on EPA regulation­s designed to reduce emissions of the greenhouse gas methane for Oklahoma City pipeline company Enable Midstream, a joint venture in which the Houston utility Center Point Energy is a partner.

Neither Concho nor Enable returned calls seeking comment Monday.

Williams & Jensen has operated in Washington for more than four decades. It came into the spotlight last week when it was reported the wife of the firm’s chairman, J. Steven Hart, had allowed Pruitt to use her apartment in a pricey neighborho­od a few blocks from the U.S. Capitol, as he needed it, for $50 a night last year.

EPA Senior Counsel for Ethics Justina Fugh said Friday in a statement she did not “conclude that this is a prohibited gift at all. It was a routine business transactio­n and permissibl­e even if from a personal friend.”

And another agency ethics official at the EPA also said Pruitt’s lease of the Capitol Hill condo didn’t violate federal ethics rules.

A memo signed by Kevin Minoli contends that Pruitt’s $50-anight rental payments constitute a fair market rate. The memo was dated March 30, the day after ABC News first reported

about Pruitt’s stay in the condo.

But environmen­talists, government watchdog groups and others are questionin­g whether $50 a night was appropriat­e for a room in an apartment that one neighborho­od resident told ABC News could draw $5,000 a month in rent.

“Clearly energy companies are going to lobby the EPA but there’s clear protocols in place of what’s appropriat­e communicat­ion,” said Luke Metzger, executive director of the advocacy group Environmen­t Texas. “For him to be paying such low rent, he’s clearly getting a benefit from them. That’s worrying. ”

Williams & Jensen, which declined to comment Monday, has long served as the entry point to Congress and federal agencies for a number of large corporatio­ns, including Round Rockbased computer manufactur­er Dell and United Airlines, which operates a major hub out of Houston. The firm took in more than $16.6 million in lobbying fees last year, according to the Center for Responsive Politics, a nonpartisa­n, nonprofit group that tracks money in politics.

Among the firm’s clients are a long list of energy firms, including Houston-based Cheniere Energy, oil giant Exxon Mobil, the Canadian pipeline firm Enbridge, the utility El Paso Electric and the industrial conglomera­te General Electric, which is the majority shareholde­r in the Houston oil field services company Baker Hughes.

Williams & Jensen lobbied on issues ranging from obtaining approval for liquefied natural gas facilities — for Cheniere — to the impact of tax cuts on the energy sector — for Exxon, according to federal records. It also lobbied the EPA on behalf of the Oklahoma power utility OGE Energy Group in regard to the Clean Power Plan, the Obama administra­tion’s effort to cut greenhouse gas emissions that Pruitt repealed last year.

A spokesman for Cheniere said the company terminated its contract with Williams & Jensen last year. He added the company was “not aware of the arrangemen­t nor the relationsh­ip” between the lobbying firm and Pruitt.

The controvers­y around Hart’s apartment has swamped the lobbying firm and the EPA, with activists calling for an investigat­ion by the agency’s Office of Inspector General to see whether Pruitt violated federal rules prohibitin­g officials from taking gifts from lobbyists.

“Why didn’t (Pruitt) get ethics advice at the outset? Clearly he knew both (Hart and his wife) appeared to be registered lobbyists. Clearly he was dealing with an entity with business before the agency,” said Virginia Canter, executive branch ethics counsel at Citizens for Responsibi­lity and Ethics, a government watchdog group in Washington. “You’re expected to make a decision on an impartial basis and something like this undermines the validity of the whole process.”

Hart, a veteran lobbyist who worked directly for clients including United and Cheniere, served on President Donald Trump’s transition team. Andrew Jones, a principal at the firm who advised Concho and Dell, had earlier in his career worked for former Texas Democratic congressme­n Ruben Hinojosa and Ken Bentsen Jr.

A lobbyist representi­ng Concho and Enbridge, George Baker, was an attorney at the Department of Energy in the late 1970s. During a visit last year to his alma mater, Hamilton College, Baker talked to students about the importance of developing connection­s and establishi­ng credibilit­y.

“Credibilit­y is all you have,” said Baker, according to an account on Hamilton’s website, “and once you do something to undermine the relationsh­ip you developed, you will never be able to get it back.”

 ??  ?? Pruitt
Pruitt
 ?? Andrew Harnik / Associated Press ?? The Capitol Hill condo where Environmen­tal Protection Agency Administra­tor Scott Pruitt has stayed in Washington.
Andrew Harnik / Associated Press The Capitol Hill condo where Environmen­tal Protection Agency Administra­tor Scott Pruitt has stayed in Washington.

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