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October 17th, 2012
Grijalva Requests DOI Inspector General Report on Scope of Potentially Financially Improper Murray Energy Projects on Federal Land

Tucson, Ariz. – Rep. Raúl M. Grijalva, the ranking member of the House Subcommittee on National Parks, Forests and Public Lands, sent a letter to Department of the Interior Inspector General Mary Kendall this morning requesting a report on Murray Energy Corporation, whose CEO Robert Murray is suspected of pressuring employees to make political donations to Mitt Romney and other Republican political candidates. The letter is available at http://1.usa.gov/QX00Lr and Rep. Grijalva’s Letters and Oversight page – the text is included below.

As Grijalva writes, “Murray Energy does not seem to foster a corporate culture that respects legal or ethical boundaries, and I am greatly concerned that the public trust is being abused by Murray’s continued operation on public land.” Grijalva requests a report by Dec. 17 on five points:

–          Which mines operated by Murray Energy Company or its subsidiaries are permitted, wholly or in part, on federal land?

–          What safeguards does the Department of the Interior have to ensure mining operators with federal leases do not pressure employees to make political contributions?

–          What consideration, if any, is given to a company’s legal and ethical history when considering a mining permit application?

–          What legal or civil recourse is available to taxpayers if it is established that Murray indeed pressured its employees to donate money to Republican candidates that was earned, directly or indirectly, from federally permitted mining operations? Could some or all of this money be recovered?

–          What existing rules cover corporate governance and conduct regarding federally permitted mining operations? Are there any pending rules, or is DOI contemplating any regulatory changes, that could strengthen this oversight?

The request is in line with Grijalva’s request earlier this year for a Government Accountability Office study of commercial extraction activities on public land and what benefits taxpayers may be missing out on because of outdated mining and extraction policies. The letter requesting that study, co-signed by Sen. Tom Udall (D-N.M.), is reviewable at http://1.usa.gov/R4NGuK. The study is expected to be released later this year.

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October 17, 2012

The Hon. Mary Kendall
Acting Inspector General, U.S. Department of the Interior
1849 C Street NW – Mail Stop 4428
Washington, D.C. 20240

Dear Ms. Kendall,

I write today regarding the recent reports of corporate officers at Murray Energy Corporation, the nation’s largest privately owned coal mining company, pressuring employees to make substantial contributions to multiple Republican campaigns. Murray operates certain projects through federal leases, and I am concerned that taxpayer resources are subsidizing partisan politics.

As The New Republic reported in an Oct. 4 online story headlined “Coal Miner’s Donor,” the company’s Ohio CEO, Robert Murray,

is one of the most important GOP players in one of the most important battleground states in the country. In May, he hosted a $1.7 million fund-raiser for Romney. Employees have given the nominee more than $120,000. [. . .] Murray, it turns out, has for years pressured salaried employees to give to the Murray Energy political action committee and to Republican candidates chosen by the company. Internal documents show that company officials track who is and is not giving.

This comes on the heels of the Department of Labor’s landmark $1.15 million settlement with Murray subsidiaries Genwal Resources and Andalex Resources, which acknowledged responsibility for the eight deaths that occurred due to the Crandall Canyon mine collapse in 2007. That Sept. 27 settlement included the mine operators’ agreement to classify their violations of three safety standards as “flagrant,” the most egregious class of violation under the Federal Mine Safety and Health Act. The permit area for Crandall Canyon includes federal leases.

Murray Energy does not seem to foster a corporate culture that respects legal or ethical boundaries, and I am greatly concerned that the public trust is being abused by Murray’s continued operation on public land. I respectfully request an Office of Inspector General report no later than December 17, 2012, responding to the following questions:

1)      Which mines operated by Murray Energy Company or its subsidiaries are permitted, wholly or in part, on federal land?

2)      What safeguards does the Department of the Interior have to ensure mining operators with federal leases do not pressure employees to make political contributions?

3)      What consideration, if any, is given to a company’s legal and ethical history when considering a mining permit application?

4)      What legal or civil recourse is available to taxpayers if it is established that Murray indeed pressured its employees to donate money to Republican candidates that was earned, directly or indirectly, from federally permitted mining operations? Could some or all of this money be recovered?

5)      What existing rules cover corporate governance and conduct regarding federally permitted mining operations? Are there any pending rules, or is DOI contemplating any regulatory changes, that could strengthen this oversight?

I thank you for your consideration of this timely request. This is of clear public interest, especially because of the sums of money involved and the blatant nature of Murray’s apparent violations.

Very sincerely,

 

Rep. Raúl M. Grijalva
Ranking Member, House Subcommittee on National Parks, Forests and Public Lands

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