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From:lora.sullivan@enron.com
To:richard.shapiro@enron.com, mark.palmer@enron.com, linda.robertson@enron.com,john.shelk@enron.com, carin.nersesian@enron.com, cindy.derecskey@enron.com
Subject:Washington Post 5/17/01 -- Enron mention
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Date:Thu, 17 May 2001 02:11:00 -0700 (PDT)

Cheney's Role Offers Strengths And Liabilities
By Mike Allen and Dana Milbank
Washington Post Staff Writers
Thursday, May 17, 2001; Page A01
The key to the energy proposal President Bush unveils today can be found on a
wall in the three-room suite that houses his National Energy Policy
Development Group, next door to the White House in the Eisenhower Executive
Office Building.
On the wall hangs a huge erasable board that serves as a giant checklist to
guide the preparation of the administration's eight-chapter energy policy,
which Bush formally unveils in Minnesota today. For each chapter, there's a
check mark for two rough drafts, a peer review, a final draft, two more
rounds of recommendations on the drafts, then graphics and photos. Toward the
end of the checklist is an all-important box to check: "Concurrence of the
OVP."
The OVP -- Office of the Vice President -- has driven every aspect of the
energy report. No proposed recommendation has survived without the consent of
one man: Vice President Cheney, the administration's indispensable man -- and
chair of the energy task force.
The release of the energy report shines a new spotlight on Cheney, a quiet
conservative from Wyoming who has been given credit for running the show
without annoying or upstaging his boss. The handling of the energy task force
so far reflects Cheney's personality near perfectly: It is a closely held
process with a high regard for the concerns of industry. This close
involvement of Cheney is partially a strength, because the effort has been
efficient and well-managed.
But Cheney's strong role is also potentially the report's weakness. He is
about to undergo a blast of unwanted scrutiny as critics seize on his
finances and oil industry ties in an effort to discredit the policy.
Democrats and environmental groups are charging that his judgment on energy
matters is suspect because of his chairmanship until August of Halliburton
Co., a Dallas-based energy services firm that is expected to benefit from
several parts of President Bush's policy. Cheney, 60, made $36 million last
year, most it in compensation from Halliburton, including salary and his
exercise of stock options and sale of restricted stock.
"He is seeing the problem entirely from the side of the energy producing
industry that made him a millionaire, not from a consumer struggling to make
ends meet," said Philip E. Clapp, president of the National Environmental
Trust.
An official close to Cheney called such suggestions "an outrage," and said
his expertise in the industry and knowledge of its technology were crucial to
"trying to solve a problem of this magnitude."
Although the plan has extensive recommendations about using technology to
conserve energy and produce power more cleanly, the heart of the report is
its conclusion that the United States needs hundreds more power plants,
natural gas pipelines, oil wells and nuclear reactors.
Several administration officials acknowledged that Cheney had handed
ammunition to his critics by declaring in a speech in Toronto on April 30
that conservation "may be a sign of personal virtue," but is not a sound
basis for a comprehensive energy policy.
"Given his background, he should've been real careful," said Sen. Charles E.
Schumer (D-N.Y.), who has offered an alternative energy plan that he says
focuses equally on supply and demand. "I think they've had some real
stumbles."
Sen. Craig Thomas (R), who succeeded Cheney as Wyoming's lone House member in
1989, said he does not expect such criticism to rattle the circumspect
Cheney. "He'll just say, 'All right. That's the way it is, folks. I'm doing
my job. Here's my plan,' " Thomas said.
As always when questions are asked about Cheney's influence, White House
officials argue vigorously that the energy plan is Bush's plan. An official
close to Bush said Cheney and other task force members had updated the
president often since beginning their work on Jan. 29. "At several critical
decision points, the group has come to the president to ask him to make
judgments and decisions," the official said.
Cheney's directions are carried out by the task force's executive director,
Andrew Lundquist, his deputy, Karen Knudsen, and four other staff members.
Cheney also chairs the task force itself, which includes the secretaries of
energy, interior, treasury, agriculture, commerce and transportation and the
head of the Environmental Protection Agency.
Aides say Cheney met with only half a dozen of the interest groups seeking
input into the policy, including Enron Corp., the Houston energy conglomerate
that is a large and longtime Bush contributor, and the Edison Electric
Institute, an energy trade group. Vance Meyer, a spokesman for Enron, said
the firm's chairman, Kenneth Lay, and another executive had a 30-minute
meeting with Cheney. Edison assembled 15 or 20 chief executives to meet with
Cheney.
But Lundquist and Knudsen, representing Cheney, met with half of the 400 or
so groups -- industry, environmental, regulatory and academic -- that
requested access. Exactly which groups the Cheney advisers met with is being
kept secret by the White House.
The task force's stealthy operation reflects Cheney's distaste for publicity.
Following news reports about the private nature of the energy deliberations,
Democrats on the House Energy and Commerce Committee and Government Reform
Committee requested information about the groups the task force met with.
Cheney's counsel, David S. Addington, rebuffed the members of Congress,
arguing that there was no legal requirement to comply with the request.
In a seven-page response to the request, Lundquist wrote that the meetings
"were simply forums to collect individual views rather than to bring a
collective judgment to bear." White House officials have declined to disclose
the list of meetings or attendees. Aides said representatives at the meetings
included 118 energy industry or corporate groups, 40 renewable energy
providers, 22 unions, 13 environmental groups, five academics, 63
governmental groups, six energy efficiency proponents and a consumer group.
Environmentalists complain that the meetings reflected Cheney's
predispositions. The vice president met with industry leaders, while
dispatching aides to speak to environmentalists, several of which were
grouped into one meeting. The meetings of 22 labor representatives, who
gathered in groups, were publicized by the White House, but sessions with
industry were not.
Cheney, who declined to be interviewed for this article, told the Associated
Press that he hasn't consulted with any officials from Halliburton and
rejected the notion that the task force's work is compromised by his private
meetings with industry officials who give money to the Republican Party.
"Just because somebody makes a campaign contribution doesn't mean that they
should be denied the opportunity to express their views to government
officials," he said.
Cheney chaired nine meetings of the Cabinet-level task force, mostly in his
ceremonial office. Each of the meetings, attended by the task force members
and aides, lasted 90 minutes, with Environmental Protection Agency
Administrator Christine Todd Whitman, Energy Secretary Spencer Abraham and
Bush economic adviser Lawrence B. Lindsey often reflecting different
interests.
For 20 minutes at the end of each session, Cheney told staffers to leave the
room so the top officials could settle differences privately, without risk of
the differences being leaked to the news media. In only a few cases did Bush
have to resolve disputes among advisers, participants said. In most cases,
Cheney was able discreetly to broker agreement among the Cabinet members.
, 2001 The Washington Post Company