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During the 75-year period between 1930 and 2005, more than 1.2 million acres of Louisiana’s coastal wetlands disappear. From 1932 to 1956, Louisiana loses 9,600 acres (15 sq. miles) of wetlands per year. The rate peaks between the years 1956 and 1978 at 26,000 acres (41 sq. miles) per year and then declines, falling to 20,000 acres (31 sq. miles) per year during the 1978-1983 period, and 16,000 acres (25 sq. miles) per year between 1983 and 1990. [Wicker, 1980 pdf file; Dunbar, Britsch, and Kemp, 1992; Barras, Bourgeois, and Handle, 1/1994; Barras et al., 2004 pdf file] After state and federal governments initiate a coastal restoration program in 1990 (see November 29, 1990) at a total cost of more than $400 million, the rate decreases to about 15,300 acres (24 sq. miles) per year. [Barras et al., 2004 pdf file] The decades of wetlands loss brings the Gulf Coast 30 miles closer to New Orleans; so by 2005, only about 20 miles remain between the below-sea-level city and the Gulf waters. [Houston Business Journal, 7/11/2003] Studies have projected that Louisiana’s coast will continue to lose land at a rate of about 6,600 acres per year (10 sq. miles) over the next 50 years, [Barras et al., 2004 pdf file] resulting in another 1000 square miles of wetlands being lost, an area almost equivalent in size to the state of Rhode Island. [Louisiana Coastal Wetlands Conservation and Restoration Task Force and Wetlands Conservation and Restoration Authority, 1998] The net loss of Louisiana’s coastal wetlands has been attributed to several factors, including the maintenance of shipping lanes, the dredging of canals, construction of flood control levees, and the withdrawal of oil and gas. [Environmental Protection Agency and Louisiana Geological Survey, 4/1987 pdf file; National Wetlands Research Center, 9/20/2005] The US Corps of Engineer’s flood control system of levees and dams is considered to be a major cause of wetlands destruction, as it prevents the Mississippi River from depositing sediment that is needed to sustain the wetlands. The oil and gas industry is also responsible for the net loss of wetlands. Thousands of canals for pipelines and drilling rigs are plowed during this period, often by the US Army Corps of Engineers, creating a scarred landscape and eroding the marshlands year after year. [Environmental Protection Agency and Louisiana Geological Survey, 4/1987 pdf file; Times-Picayune, 7/26/2002; Houston Business Journal, 7/11/2003] A study in 1982 estimated that as much as 90 percent of Louisiana’s land loss can be attributed to canals. [Turner, Costanza, and Scaife, 1982 pdf file] Furthermore, the extraction of oil and gas from beneath the Louisiana coast is believed (see 2002) to have increased the rate of subsidence, a term used to describe the phenomena whereby land slowly sinks. [Gulf Coast Association of Geological Societies, 2002 pdf file] Other causes of wetland destruction include wave erosion, land reclamation, and rising sea levels. [Environmental Protection Agency and Louisiana Geological Survey, 4/1987 pdf file] Louisiana’s coast is a vitally important ecosystem and natural feature. It makes up about 40 percent of all US coastal wetlands and provides over-wintering habitat for 70 percent of the migratory birds that come down the Central and Mississippi flyways. [Environmental Protection Agency and Louisiana Geological Survey, 4/1987 pdf file; Louisiana Coastal Wetlands Conservation and Restoration Task Force and Wetlands Conservation and Restoration Authority, 1998; US Army Corp of Engineers, 11/8/2004] The wetlands and barrier islands (some 80 percent of these islands are lost during this period) serve as a natural protective barrier against hurricanes by reducing the size of storm surges. [Environmental Protection Agency and Louisiana Geological Survey, 4/1987 pdf file; Houston Business Journal, 7/11/2003; van Heerden, 2004] The region is also of vital importance to the US economy. By the late 1990s, the region contributes 30 percent by weight of the total commercial fisheries harvest in the continental US; 18 percent of US oil production; and 24 percent of US gas production. Louisiana’s ports outrank all other US ports in total shipping tonnage. [Louisiana Coastal Wetlands Conservation and Restoration Task Force and Wetlands Conservation and Restoration Authority, 1998; US Army Corp of Engineers, 11/8/2004]

Timeline Tags: Hurricane Katrina

Congress passes the Breaux Act, formally called The Coast Wetlands Planning, Protection, and Restoration Act (CWPPRA), establishing a task force charged with planning and prioritizing wetland restoration projects that would then be sent to Congress to be included as part of the president’s annual budget submission. CWPPRA specifies that 70 percent of its authorized funds must go to Louisiana restoration projects; 15 percent to the Coastal Wetlands Conservation Grant Program, a program that provides federal funds to restoration projects in other coastal states; and 15 percent to North American Wetlands Conservation Act projects. All projects funded under the terms of this act will require non-federal matching contributions. [US Code Vol. 16, secs. 3952-3956] Louisiana will generate its portion of funding for projects though taxes on fishing equipment, small engine, and motorboat fuels, as well as import duties. The act is set to expire in 2009 [National Wetlands Research Center, 9/20/2005] , but will be renewed at least until 2019. [ESA Policy News Update, 10/15/2004] By 2004, some $400 million will have been spent on coastal restoration projects as part of the program [van Heerden, 2004] , resulting in at least 52,000 acres being created, restored, or protected. [Louisiana Coastal Area Study, 7/2004 pdf file]

Entity Tags: US Congress, The Coast Wetlands Planning, Protection, and Restoration Act of 1990

Timeline Tags: Hurricane Katrina

A NASA satellite photo of King Khalid Military City.A NASA satellite photo of King Khalid Military City. [Source: NASA / Public domain]Czech and French units stationed near the Iraq-Saudi border report seven detections of chemical weapons—nerve and blister agents—in the vicinities of Hafar al Batin and King Khalid Military City (KKMC) in Saudi Arabia. [Illnesses, 7/29/1998] (KKMC is more of a military base than a city, built by the US Army Corps of Engineers in the 1970s and 1980s to house US and Saudi troops. It is one of the central hubs of US air strikes into Iraq.) [NationMaster, 2005] None of the detections are reported as life-threatening, and none can be independently verified, though both the US Defense Department and CIA will later find the reports to be valid. [Illnesses, 7/29/1998; Office of the Special Assistant for Gulf War Illnesses, 1/20/2008]

Entity Tags: Central Intelligence Agency, US Department of Defense

Timeline Tags: Events Leading to Iraq Invasion

The US Army Corps of Engineers works on the Southeast Louisiana Urban Flood Control Project (SELA) spending $430 million to shore up the levee system in the greater New Orleans area and build pumping stations. Local governments contribute $50 million, or about 12 percent. [Editor & Publisher, 8/31/2005]

Entity Tags: US Army Corps of Engineers, Southeast Louisiana Urban Flood Control Project

Timeline Tags: Hurricane Katrina

The State of Louisiana, the US Army Corps of Engineers, federal agencies, local governments, academics, and local community groups work together to develop a comprehensive restoration plan aimed at rebuilding Louisiana’s coastal wetlands. The plan, named “Coast 2050: Toward a Sustainable Coast,” outlines more than 80 restoration concepts that will serve as the basis for the more technical “Louisiana Coastal Area (LCA) Comprehensive Coastwide Study” that will eventually be submitted to the White House in 2004 (see October 2003). The Coast 2050 plan is a direct outgrowth of lessons learned from implementation of restoration projects under the Breaux Act (see November 29, 1990) and reflects a growing recognition that a more comprehensive systemic approach is needed. It is estimated that the Coast 2050 plan would cost $14 billion over the next 30 years to implement and require an annual budget of $470 million. It would restore natural drainage along Louisiana’s coast and direct the movement of sediment from the Mississippi to rebuild marshes. One of the plan’s strategies would be to install sediment traps at key locations in the river, from where sediment would be pumped through 100-mile long pipelines to rebuild wetlands and barrier islands. [Louisiana Coastal Wetlands Conservation and Restoration Task Force and Wetlands Conservation and Restoration Authority, 1998; Louisiana Coastal Area Study, 1/2003 pdf file; Civil Engineering, 6/2003; Louisiana Coastal Area Study, 7/2004 pdf file; Civil Engineering, 7/2004; USA Today, 8/30/2005] The Coast 2050 plan is endorsed by all 20 Louisiana coastal parishes, the federal Breaux Act (CWPPRA) Task Force, the State Wetlands Authority, and various environmental organizations, including the Coalition to Save Coastal Louisiana. “This approval is unprecedented,” says the Louisiana Coastal Area website. [National Wetlands Research Center, 9/20/2005]

Entity Tags: Louisiana State Wetlands Authority, CWPPRA Task Force, Coast 2050: Toward a Sustainable Coast, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

Between 2001 and 2005, the US Army Corps of Engineers requests $496 million to strengthen the 300-mile levee system protecting the low-elevation greater New Orleans area from the waters of the Mississippi River and Lake Pontchartrain. The Bush administration responds to these requests by proposing a $166 million budget. Congress approves a $250 million budget. [Reuters, 9/1/2005; Los Angeles Times, 9/4/2005]

Entity Tags: US Army Corps of Engineers, Bush administration (43)

Timeline Tags: Hurricane Katrina

Governor Mike Foster (R-LA) endorses the Coast 2050 plan (see December 1998) to spend $14 billion over a 20 to 30-year period to rebuild Louisiana’s coastal wetlands as a means of protecting the mainland from the full destructive force of a major hurricane. [Chronicle of Higher Education, 4/26/2002]

Entity Tags: Coast 2050: Toward a Sustainable Coast, Ivor Van Heerden

Timeline Tags: Hurricane Katrina

Former petroleum geologist Bob Morton, now with the US Geological Survey, concludes in a paper that the oil and gas industry’s extraction of millions of barrels of oil, trillions of cubic feet of natural gas, and tens of millions of barrels of saline formation water lying with the petroleum deposits has caused a reduction in subsurface pressure causing underground faults to slip and the land above to subside. “Subsidence rates in coastal Louisiana associated with natural compaction and dewatering of Holocene deltaic sediments should decrease with time; therefore historical rates of delta plain subsidence that accelerate and typically exceed geological subsidence rates are most likely influenced by anthropogenic activities, such as subsurface fluid extraction.” [Gulf Coast Association of Geological Societies, 2002 pdf file; National Geographic, 10/2004] The oil industry and its consultants dispute Morton’s theory, but fail to disprove it. If Morton is correct, any restoration efforts in the area could fail as they would be unable to offset the high rates of subsidence. [National Geographic, 10/2004]

Entity Tags: Bob Morton

Timeline Tags: Hurricane Katrina

The Bush administration proposes to reduce the US Army Corps of Engineers’ fiscal year 2003 budget by 10 percent, from $4.6 to $4.175 billion. (The Corps requested more than $6 billion.) [Clarion Ledger, 3/7/2002]

Entity Tags: Bush administration (43), US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

Scientists, environmental groups, and the US Army Corps of Engineers work together on a comprehensive technical plan to rebuild Louisiana’s disappearing coastal wetlands. The plan aims to “provide a sustainable coastal ecosystem with the essential functions, assets, and values of the natural ecosystem.”The Louisiana Coastal Area (LCA) Comprehensive Ecosystem Restoration Study, as it is called, incorporates the restoration concepts outlined in the 1998 Coast 2050 plan (see December 1998). The LCA study, unlike the Coast 2050 plan, provides the scientific and technical analyses and engineering details that Congress will use to decide if the project meets congressional requirements necessary to secure WRDA authorization. WRDA, or the Water Resources Development Act, provides federal authorization for water resources projects. The team hopes to submit a Chief’s Report by June 2004 so that the plan can be included as a funded action item in the WRDA legislation currently pending in Congress. [Louisiana Coastal Area Study, 1/2003 pdf file; Associated Press, 1/29/2004; Associated Press, 2/3/2004; Louisiana Coastal Area Study, 4/2004 pdf file; Louisiana Coastal Area Study, 7/2004 pdf file; National Geographic, 10/2004]

Entity Tags: US Army Corps of Engineers, Louisiana Coastal Area (LCA) Ecosystem Restoration Study

Timeline Tags: Hurricane Katrina

Shabbir Khan, an executive for the Saudi conglomerate Tamimi Global Co, throws a lavish birthday party for KBR procurement manager Stephen Seamans at a Tamimi “party house” near Camp Arifjan, a Kuwaiti base near the border. Khan gives Seamans the use of a prostitute as one of his birthday presents. Driving Seamans back home, Khan offers Seamans $130,000 in kickbacks. Five days after the party, with Seamans and Khan driving the deal, KBR awards Tamimi a $14.4 million mess hall subcontract for the upcoming invasion of Iraq. This and other information about KBR war profiteering in Iraq comes from a federal investigation that will begin in late 2007 (see October 2006 and Beyond). [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: Kellogg, Brown and Root, Stephen Seamans, Tamimi Global Co, Shabbir Khan

Timeline Tags: Iraq under US Occupation

The New York Times reports that the official Pentagon study assessing the structural effect of the 9/11 attack on the Pentagon was completed in July 2002 but has not been released, and may never be released. The study, conducted by the Army Corps of Engineers, “was specifically intended to consider Pentagon security in the light of new terrorist threats… Some, confused over what could be considered sensitive in the report, have expressed outrage that the lessons it may hold for other buildings could be squandered.” Engineers outside the investigation say the implications are considerable, since the design of the Pentagon is much more similar to other major buildings elsewhere than the design of the WTC. If the report were released, it is likely building codes would be changed and many lives saved in the long term. [New York Times, 11/5/2002]

Entity Tags: US Army Corps of Engineers, US Department of Defense, Pentagon

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

The Bush administration’s proposed fiscal year 2004 budget includes $297 million for civil works projects in the US Army Corps of Engineers’ New Orleans district. (Congress will later allocate an additional $40 million.) [New Orleans CityBusiness, 2/16/2004] Only $3 million of this amount is slated for New Orleans’ East Bank Hurricane Levee project. According to Al Naomi, the US Army Corps of Engineers’ project manager, $11 million is needed. (Congress ultimately approves $5.5 million.) [Times-Picayune, 6/8/2004] As a result of the project’s reduced budget, work on the levee system wil halt for the first time in 37 years in June 2004 (see (June 2004)).

Entity Tags: Al Naomi, Bush administration (43), US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The Bush administration announces a policy directive and proposed rulemaking that would significantly restrict the scope of the Clean Water Act, removing as much as 20 percent, or 20 million acres, of the country’s wetlands from federal jurisdiction. Officials claim the measures are necessary in order to comply with a 2001 Supreme Court decision that the US Army Corps of Engineers does not have the authority to regulate intrastate, isolated, non-navigable ponds solely on the basis that they are used by migratory birds. But the proposed rule and policy directive ignores a decision by the Department of Justice that the court’s ruling does not necessitate modifying the scope of the Clean Water Act. The administration’s directive and proposed rule interpret the 2001 decision to mean that all “isolated” intrastate, non-navigable waters are outside the jurisdiction of the Clean Water Act. [Environmental Protection Agency, 1/10/2003; New York Times, 1/10/2003 pdf file; Natural Resources Defense Council, 1/10/2003; Environmental Protection Agency, 2/28/2003 pdf file; Natural Resources Defense Council, 7/11/2003; Natural Resource Defense Council et al., 8/12/2004 pdf file] Whereas the proposed rule must go through a lengthy federal process before going into effect, the policy directive is enacted immediately. The directive instructs regional offices of the EPA and the Army Corps of Engineers to halt protection of wetlands unless (1) the waterway lies adjacent to navigable rivers, streams and their tributaries or (2) the EPA’s headquarters in Washington has granted explicit approval to exercise regulatory authority. No approval however is required for the commencement of activities that could potentially pollute these waters. As a result of this directive, thousands of acres of wetlands, small streams, and other waters instantly lose federal protection. [New York Times, 1/10/2003 pdf file; Natural Resources Defense Council, 7/11/2003; Natural Resource Defense Council et al., 8/12/2004 pdf file] The proposed rule will generate an immense public outcry. Ninety-nine percent of the 135,000 comments submitted to the EPA and Army Corps on this proposal will be opposed to it. Comments supporting the proposed rule will come from the National Mining Association, the Independent Petroleum Association of America, National Association of Home Builders, and other industry groups. Additionally, environmental and natural resource government agencies from 39 states, including 17 with Republican governors, will oppose the plan, while agencies from only three states will support it. Numerous local government entities, scientific groups, as well as a bi-partisan group of 219 representatives and twenty-six senators, will also come out against the proposal. [Natural Resources Defense Council, 7/11/2003; Natural Resource Defense Council et al., 8/12/2004 pdf file]

Entity Tags: US Army Corps of Engineers, Environmental Protection Agency, Bush administration (43)

Timeline Tags: Hurricane Katrina, US Environmental Record

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The US Army Corps of Engineers awards Halliburton subsidiary, Kellogg, Brown & Root (KBR), a sole-source monopoly contract to repair and operate Iraq’s oil infrastructure. The contract is awarded in secrecy without any competing bids from other qualified companies. Halliburton will eventually charge the government $2.4 billion for its work. The Defense Contract Audit Agency will find that about $263 million of these costs are either questionable or unsupported. Despite this, the US Army will pay Halliburton all but $10.1 million, or 3.8 percent, of the disputed costs. [New York Times, 2/27/2006; US Congress, 3/28/2006, pp. 3-4 pdf file]

Entity Tags: Defense Contract Audit Agency, Halliburton, Inc., US Army Corps of Engineers

Timeline Tags: Iraq under US Occupation

Halliburton issues a press release declaring that it has won a contract from the US Army Corps of Engineers to extinguish oil well fires and do emergency repairs to Iraq’s oil infrastructure in post-invasion Iraq. The firefighting work will be subcontracted to Houston-based companies Boots & Coots International Well Control, Inc. and Wild Well Control, Inc. [Halliburton, 3/24/2003]

Entity Tags: Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

KBR procurement manager Stephen Seamans gives his crony Shabbir Khan (see October 2002), of the Saudi conglomerate Tamimi Global Co, inside information that allows Tamimi to secure a $2 million KBR subcontract to establish a mess hall at a Baghdad palace. Seamans subsequently puts through change orders that inflate the subcontract to $4.7 million. This and other information about KBR war profiteering in Iraq comes from a federal investigation that will begin in late 2007 (see October 2006 and Beyond). [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: Kellogg, Brown and Root, Stephen Seamans, Tamimi Global Co, Shabbir Khan

Timeline Tags: Iraq under US Occupation

KBR procurement managers Stephen Seamans and Jeff Mazon, who have between them already executed logistics subcontracts for the US military in Iraq worth $321 million, put together yet another deal for their business crony Shabbir Khan, of the Saudi conglomerate Tamimi Global Co (see October 2005, October 2002, and April 2003). However, this deal puts US soldiers at risk. According to KBR’s enormous LOGCAP contract with the Army, KBR is required to medically screen the thousands of kitchen workers subcontractors such as Tamimi import from poor villages in countries like Nepal, Pakistan, India, and Bangladesh. Instead of performing the required medical screenings, Khan gives falsified files on 550 Tamimi kitchen workers to the US Defense Department. KBR retests those 550 workers at a Kuwait City clinic and finds that 172 test positive for exposure to the hepatitis A virus. Khan tries to suppress the test results, telling the clinic that Tamimi would do no more business with his clinic if it informs KBR about the results. Further retests show that none of the 172 have contagious hepatitis A, and Khan’s attorneys will claim during a subsequent investigation (see October 2006 and Beyond) that no soldiers caught any diseases from any of Tamimi’s workers. Other firms besides Tamimi show similar problems, causing KBR to begin vaccinating the employees for a variety of diseases at the job sites. [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: Shabbir Khan, Jeff Mazon, Kellogg, Brown and Root, US Department of the Army, US Department of Defense, Tamimi Global Co, Stephen Seamans

Timeline Tags: Iraq under US Occupation

The US Corps of Engineers submits a draft report package and a Programmatic Environmental Impact Statement (PEIS) on the proposed Louisiana Coastal Area (LCA) wetlands restoration study (see March 2002-October 2003) to the White House’s Office of Management and Budget (OMB) and the Council on Environmental Quality (CEQ). The Corps is hoping that the report will be released this month, so it can be used to request congressional authorization in fall 2004 for the plan’s basic framework. But its release is held up by questions from the OMB and CEQ. In February 2004 (see February 2, 2004), the Bush administration will provide formal comments about the plan to the Corps in its 2005 proposed budget, directing the Corps to develop a less costly plan that focuses on narrower, shorter term objectives. [Associated Press, 1/29/2004; Associated Press, 2/3/2004; Louisiana Coastal Area Study, 4/2004 pdf file; Louisiana Coastal Area Study, 7/2004 pdf file]

Entity Tags: Council on Environmental Quality, Office of Management and Budget, Louisiana Coastal Area (LCA) Ecosystem Restoration Study, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The Pentagon’s Defense Contract Audit Agency sends a draft audit report to Halliburton subsidiary Kellogg, Brown, & Root (KBR) claiming that the firm overcharged the US military as much as $61 million for fuel deliveries into Iraq. The report says that KBR charged an average of $2.64 per gallon, more than twice the price others were paying. The DCAA also says the company has been slow to provide cost estimates for its projects in Iraq. KBR has given the US government estimates for only 12 orders. As of this date, 69 are overdue. [New York Times, 12/12/2003]

Entity Tags: Defense Contract Audit Agency, Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

The US Army Corps of Engineers (US ACE) issues a waiver relieving Halliburton of the obligation to provide the government with “cost and pricing data” for the fuel it sells to the US military. The company was recently accused of overcharging the military as much as $61 million for fuel deliveries into Iraq (see December 5, 2003). The waiver will make it difficult for auditors to determine whether Halliburton or its Kuwaiti subcontractor overcharged the US government. [US Congress, 1/6/2004 pdf file]

Entity Tags: Halliburton, Inc., US Army Corps of Engineers

Timeline Tags: Iraq under US Occupation

During President Bush’s visit to Louisiana, Governor Kathleen Blanco asks the president in a private conversation to include $50 million in his budget to begin construction work on the Louisiana Coastal Area (LCA) wetlands restoration project. She follows up with a formal letter outlining her request. [Associated Press, 2/3/2004]

Entity Tags: George W. Bush, Louisiana Coastal Area (LCA) Ecosystem Restoration Study, Kathleen Babineaux Blanco

Timeline Tags: Hurricane Katrina

The Bush administration’s proposed fiscal year 2005 budget sets aside $325 million for civil works projects in the US Army Corps of Engineers’ New Orleans district—slightly less than the $337 million approved by Congress the year before. According to Marcia Demma, chief of the Corps’ programs management branch, the Corps will need $425 million for 2005. “We have a backlog of contracts, and it’s just been for the past few years that… we haven’t been funded at our full capability,” Marcia Demma, chief of the Corps’ programs management branch, tells New Orleans CItyBusiness. Of the $325 million proposed in the Bush budget, the Southeast Louisiana Urban Flood Control Project (SELA) would receive $30 million, far short of the $42 million the Corps says it needs, and $4 million less than fiscal year 2004’s actual budget. According to Stan Green, SELA project manager, the $30 million would probably allow the Corps to continue its current work on 12 projects in Jefferson and Orleans parishes. But if it were fully funded, he says, it could award contracts for an additional 14 projects. [New Orleans CityBusiness, 2/16/2004] (Congress ultimately approves $36.5 million for SELA. [Los Angeles Times, 9/4/2005] ) The administration’s proposed budget includes only $3.9 million for the New Orleans’ East Bank Hurricane Levee Project, a mere fraction of the $27.1 million requested by the Corps. According to Al Naomi, who manages this project, the budgeted allotment would not even cover the $4.5 million required for unpaid fiscal year 2004 work. (The sum ultimately approved by Congress for the east bank project is $5.7 million.) [New Orleans CityBusiness, 2/16/2004; Times-Picayune, 6/8/2004; Knight Ridder, 9/1/2005; Knight Ridder, 9/1/2005; Washington Post, 9/8/2005, pp. A01] Additionally, the president’s budget rejects a draft plan, submitted in October 2003 (see October 2003) by the Army Corp of Engineers, to begin a $14 billion dollar project to restore Louisiana’s coastal wetlands. Instead, the president directs the Corps to refocus its ongoing restoration study to produce a single, prioritized list of projects that can be completed in 10 years. Additionally, the corps is directed to include in its study several other larger restoration projects that are not part of the Louisiana Coastal Area study, and determine whether the mouth of the Mississippi can be altered to let sediment create new areas of wetlands to its east and west quickly, while still allowing shipping to reach port facilities in New Orleans and elsewhere along the river. Eight million dollars is allocated to the effort, only a fraction of the $50 million that was requested by Louisiana’s Governor (see January 2004). In the budget’s narrative, the White House acknowledges for the first time that Louisiana’s disappearing wetlands are partly the result of the US Army Corps of Engineers’ channeling of the Mississippi River for shipping and the construction of flood-control levees along the river to protect New Orleans. It also says that canals built by the oil and gas industry, natural subsidence, and rising sea levels are contributing factors to Louisiana’s net loss of coastal wetlands. [Associated Press, 2/3/2004; Times-Picayune, 2/3/2004; Louisiana Coastal Area Study, 4/2004 pdf file]

Entity Tags: Stan Green, Marcia Demma, Louisiana Coastal Area (LCA) Ecosystem Restoration Study, Bush administration (43), Al Naomi, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The US Army Corps of Engineers relaxes water quality and stream protections for mountaintop removal mining without consulting the Environmental Protection Agency (EPA). According to internal agency “guidance” obtained by Inside EPA, the Corps has recommended its staff to approve proposed clean water projects that would allow sewers and constructed ditches—rather than newly created streams, wetlands or water habitat—to qualify as mitigation projects replacing streams buried by mining operations. [Inside EPA, 5/2004; Natural Resources Defense Council, 12/31/2005] Commenting on the policy, Natural Resources Defense Council attorney Daniel Rosenberg says, “As if letting coal companies get away with destructive mountaintop removal mining isn’t bad enough; the Bush administration says it’s a fair trade to replace buried pristine natural streams with sewers and ditches.” [Natural Resources Defense Council, 12/31/2005]

Entity Tags: Bush administration (43), Environmental Protection Agency, US Army Corps of Engineers

Timeline Tags: US Environmental Record

Al Naomi, the US Army Corps of Engineers’ project manager, “begs” the East Jefferson Levee Authority for $2 million to fund necessary levee repairs that Washington has refused to fund. “The system is in great shape, but the levees are sinking. Everything is sinking, and if we don’t get the money fast enough to raise them, then we can’t stay ahead of the settlement,” he says. “The problem that we have isn’t that the levee is low, but that the federal funds have dried up so that we can’t raise them.” The authority agrees to fund the repairs. [Editor & Publisher, 8/31/2005; Guardian, 9/1/2005]

Entity Tags: East Jefferson Levee Authority, Al Naomi

Timeline Tags: Hurricane Katrina

The East Jefferson Levee Authority provides the US Army Corps of Engineers with another $250,000 after learning that portions of the levee in Metairie have sunk by four feet. The extra work is funded with increased property taxes in Jefferson Parish. [Editor & Publisher, 8/31/2005]

Entity Tags: East Jefferson Levee Authority, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

In accordance with the Bush administration’s request (see February 2, 2004) to narrow the focus of the Louisiana Coastal Restoration Plan, the US Army Corps of Engineers submits a $2.0 billion restoration plan for Louisiana’s coastal wetlands to the EPA. The plan, downsized from the orginal $14 billion plan and referred to at this point as the Tentatively Selected Plan (TSP), calls for the accelerated implementation of up to five restoration projects that could begin as early as 2006. The projects would cost a total of $786 million. Other projects, such as a 10-year science and technology program, a demonstration program, a beneficial use of dredged material program, and a modification of existing structures program, would also be accelerated and cost about $385 million. The plan also calls for a large scale studies program costing $60 million, and identifies another 10 projects that would be subject to case-by-case authorization by Congress. [Louisiana Coastal Area Study, 7/2004 pdf file; Environmental News Service, 7/7/2004; National Wetlands Research Center, 12/15/2004]

Entity Tags: Environmental Protection Agency, US Army Corps of Engineers, Louisiana Coastal Area (LCA) Ecosystem Restoration Study

Timeline Tags: Hurricane Katrina

In a six-page letter to the congressional conference-committee charged with combining the House (see April 21, 2005) and Senate (see June 28, 2005) versions of the 2005 Energy Policy Act (HR 6), Energy Secretary Samuel W. Bodman expresses the Bush administration’s strong opposition to a provision that would grant coastal oil-producing states like Louisiana a share of the royalties from offshore oil and gas operations. Historically, the royalties have been paid exclusively to the federal government. [Houma Today, 7/21/2005; Houma Today, 7/23/2005; Salon, 9/1/2005] Bodman writes in his letter that “The administration strongly opposes” the new funding. “These provisions are inconsistent with the president’s 2006 budget and would have a significant impact on the budget deficit.” [Salon, 9/1/2005] The statement also says, “The administration recognizes that coastal Louisiana is an environmental resource of national significance and has worked closely with the state of Louisiana to produce a near-term coastal wetlands restoration plan to guide how the next phase of restoration projects in Louisiana will be identified, prioritized, and sequenced.” [Houma Today, 7/21/2005] Craig Stevens, the press secretary for the Department of Energy, later explains to Salon: “We didn’t object to the idea in principle. [Rather, we objected to] part of the way it was crafted.” [Salon, 9/1/2005] Bodman also takes issue with the House’s WRDA bill (see April 13, 2005). WRDA, or the Water Resources Development Act, provides federal authorization for water resources projects. The House bill would require the federal government to pay 65 percent of the cost of the Louisiana Coastal Area (LCA) restoration project, leaving the remaining 35 percent for state and local governments to pay. “The cost-share paid by the general taxpayer for the Everglades restoration effort is 50 percent, and this should likewise be the maximum federal contribution for the Upper Mississippi River and Illinois Waterway and coastal Louisiana restoration efforts.” If the Fed’s portion of the bill were 65 percent, the letter argues, it would “create expectations for future appropriations that cannot be met given competing spending priorities within the overall need for spending restraint, including deficit reduction.” Adam Sharp, spokesman for Senator Mary Landrieu (D-LA), notes however that the 50-50 cost-share formula for the Everglades is an exception to the Corps’ practice, not the rule. Indeed, in January (see January 2005), the Corps recommended the 65-35 cost share formula in its report on the coastal plan to Congress saying that such a split would be “consistent with existing law and Corps policy.” [Houma Today, 7/21/2005]

Entity Tags: Louisiana Coastal Area (LCA) Ecosystem Restoration Study, Craig Stevens, Samuel W. Bodman

Timeline Tags: Hurricane Katrina

The US Army Corp of Engineers publishes a schedule for local hearings on the revised Louisiana Coastal Area Restoration Plan, Draft Programmatic Environmental Impact Statement (DPEIS). Hearings will be held in Texas, Louisiana, Mississippi, and Tennessee. [US Army Corp of Engineers, 7/24/2004 pdf file]

Entity Tags: US Army Corps of Engineers, Louisiana Coastal Area (LCA) Ecosystem Restoration Study

Timeline Tags: Hurricane Katrina

In the southwest Louisiana parish of Cameron, the US Army Corps of Engineers presents its recently downsized Louisiana Coastal Area (LCA) Restoration Plan (see July 2, 2004) to about 25 local residents, scientists, and environmental activists. People attending the meeting are angered that not one of the 15 major projects included in the revised plan are in southwest Louisiana. Apparently, several proposed projects that were included in the first draft of the LCA plan (see October 2003), including a plan to build major navigational locks at the mouths of the Sabine and Calcasieu rivers to prevent saltwater from seeping into freshwater marshland, are absent in the current plan. In this part of the state, saltwater intrusion has eaten away at the delicate marsh grass, both a key hurricane buffer and marine life breeding ground. [Associated Press, 7/29/2004]

Entity Tags: Louisiana Coastal Area (LCA) Ecosystem Restoration Study, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The US Army Corps of Engineers releases its final report and programmatic environmental impact statement on the Louisiana Coastal Area (LCA) Ecosystem Restoration Study. The plan would cost $1.9 billion and take ten years to implement. The Corps recommends a 65-35 federal-state cost-sharing formula, with the federal government contributing $1.28 billion, and the Louisiana Department of Natural Resources paying the rest. The comment period will end on December 6, after which point a Chief of Engineers report will be completed and provided to the Secretary of the Army for review and submission to Congress. [Philadelphia Inquirer, 10/8/2004; US Army Corp of Engineers, 11/8/2004; Louisiana Coastal Area Study, 11/8/2004] The LCA ecosystem restoration plan contains several components:
Near-Term Critical Restoration Features - “The recommended plan includes a number of critical restoration projects, five of which are recommended for near-term continued study, design, and implementation. These five projects address the most critical ecological needs of the coastal area and address a range of effects essential for success in restoring the coast. The five near-term critical restoration features are (1) Mississippi River Gulf Outlet Environmental Restoration Features; (2) Small Diversion at Hope Canal; (3) Barataria Basin Barrier Shoreline Restoration, Caminada Headland, Shell Island; (4) Small Bayou Lafourche Reintroduction; and (5) Medium Diversion at Myrtle Grove with Dedicated Dredging.” In addition to these five projects, an additional ten near-term critical restoration features are recommended for study and future congressional authorization. The strategies that the Corps intends to implement in these projects include “(1) Freshwater and sediment re-introductions by diverting some Mississippi River flows into hydrologic basins; (2) Barrier island restoration through placement of sand from offshore sources or the Mississippi River to sustain key geomorphic structures; (3) This would help protect the ecology of estuarine bays and marshes by reducing gulf influences as well as protect nationally important water bird nesting areas; (4) Hydrologic modifications to help restore salinity and marsh inundation patterns and provide fishery access in previously unavailable habitats; and (5) Creating a marsh platform for habitat in areas near existing navigation channels through the beneficial use of maintenance dredging material.” [US Army Corp of Engineers, 11/8/2004; Louisiana Coastal Area Study, 11/8/2004; National Wetlands Research Center, 12/15/2004]
Science and Technology Program - “The major goal of the program would be to decrease scientific and engineering uncertainties of restoration efforts and to optimize restoration opportunities.” [National Wetlands Research Center, 12/15/2004]
Science and Technology Program Demonstration Projects - “The recommended plan includes funding over a 10-year period for demonstration projects to be developed by the Science and Technology Program. These projects will cost a maximum of $25 million each.” [National Wetlands Research Center, 12/15/2004]
Beneficial Use of Dredged Material Program - This program intends to use “dredged material to restore, protect, and create aquatic and wetland habitats in connection with construction or maintenance dredging of an authorized project.” [US Army Corp of Engineers, 11/8/2004; Louisiana Coastal Area Study, 11/8/2004]
Modifications Program - The Corps will investigate how existing structures or their operation management plans can be modified to improve environmental performance. [US Army Corp of Engineers, 11/8/2004; Louisiana Coastal Area Study, 11/8/2004]
Large-Scale and Long-Term Concepts Requiring Detailed Study - This study will “determine their potential for achieving restoration objectives beyond the critical needs, near-term focus of other LCA Plan components.” [US Army Corp of Engineers, 11/8/2004; Louisiana Coastal Area Study, 11/8/2004]

Entity Tags: Louisiana Coastal Area (LCA) Ecosystem Restoration Study, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

the US Army Corps of Engineers submits the final draft of the Louisiana Coastal Area (LCA) Ecosystem Restoration Study to Congress for WRDA authorization. WRDA, or the Water Resources Development Act, provides federal authorization for water resources projects. The Corps recommends that Congress approve a federal-state cost sharing ration of 65 percent federal, 35 percent state. A 65-35 split would be “consistent with existing law and Corps policy,” the Corps says. [Houma Today, 7/21/2005]

Entity Tags: Louisiana Coastal Area (LCA) Ecosystem Restoration Study, US Army Corps of Engineers, US Congress

Timeline Tags: Hurricane Katrina

The Senate Environment and Public Works Committee approves the Water Resources Development Act (WRDA) of 2005 (S.728), which includes authorization (but not appropriation of funds) for the $1.9 billion Louisiana Coastal Area (LCA) Ecosystem Restoration Study. The federal contribution to the project would be 65 percent, with the State of Louisiana, paying the remainder. “This legislation is a major breakthrough toward ensuring the future of our unique way of life in coastal Louisiana,” Rep. David Vitter, (R-LA), says in a statement. “It is critical for this authorization to be included in WRDA so that Congress can aggressively appropriate federal funds to restore Louisiana’s coast.” [Advocate (Baton Rouge), 4/17/2005]

Entity Tags: Louisiana Coastal Area (LCA) Ecosystem Restoration Study, US Congress, David Vitter

Timeline Tags: Hurricane Katrina

The House passes its version of the 2005 Energy Policy Act (HR 6). One provision, secured by Louisiana Congressman Bobby Jindal, (R-Kenner), would provide Louisiana with up to $1 billion in offshore oil and gas royalties every year beginning in 2016. Louisiana and its coastal parishes would use the money to fund coastal wetland restoration efforts. Historically, offshore gas and oil royalties have been paid exclusively to the federal government, since these operations are conducted on federal territory. But Louisiana has long argued that a portion of this money should be used to help fund efforts aimed at restoring Louisiana’s coastal wetlands, the disappearance of which has been partly attributed to Gulf Coast oil and gas operations. A similar provision is included in the Senate version of the bill (see June 28, 2005). [Advocate (Baton Rouge), 4/17/2005]

Entity Tags: Bobby Jindal, US Congress

Timeline Tags: Hurricane Katrina

A US Army Corps of Engineers memo warns that funding levels for fiscal years 2005 and 2006 will not be enough to finance new construction on the levees protecting New Orleans. [Reuters, 9/1/2005]

Entity Tags: US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The New Orleans district of the US Army Corps of Engineers formally notifies Washington that if a major hurricane scores a direct hit on the city, two of New Orleans’ biggest pumping stations could be disabled. These pumping stations are needed—even under normal conditions—to keep the city dry. In the event of an overtopped or breached levee and heavy rains, the city would be submerged. [Los Angeles Times, 9/4/2005]

Entity Tags: US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The House of Representatives proposes the steepest reduction in hurricane and flood-control funding for New Orleans in history—$71.2 million, or 21 percent. The Bush administration had earlier proposed a $52.8 million reduction for the New Orleans district’s fiscal year 2006 budget. The cut would be the largest single-year spending cut ever incurred by the district. As a result of the expected cut, the local Corps office postpones a study seeking to determine ways to protect the region from a Category 5 hurricane. Additionally, it imposes a hiring freeze and is unable to start any new jobs or award any new contracts. “I’ve been here over 30 years and I’ve never seen this level of reduction,” said Al Naomi, project manager for the New Orleans district. “I think part of the problem is it’s not so much the reduction, it’s the drastic reduction in one fiscal year. It’s the immediacy of the reduction that I think is the hardest thing to adapt to.” One of the hardest hit projects is the Southeast Louisiana Urban Flood Control Project (SELA). Its budget is being slashed to $10.4 million, down from $36.5 million. The amount is a sixth of what local officials say they need. Funding for levee repairs and other work on Lake Pontchartrain is scheduled to be cut from $5.7 million (see February 2, 2004) this year to $2.9 million in 2006. “We’ll do some design work. We’ll design the contracts and get them ready to go if we get the money. But we don’t have the money to put the work in the field, and that’s the problem,” Naomi says. [New Orleans CityBusiness, 6/6/2005; Editor & Publisher, 8/31/2005; Chicago Tribune, 9/1/2005]

Entity Tags: Al Naomi, Southeast Louisiana Urban Flood Control Project, Bush administration (43)

Timeline Tags: Hurricane Katrina

Bunnatine H. Greenhouse, the highest ranking contracting official at the US Army Corps of Engineers (USACE), testifies before the Democratic Policy Committee. She criticizes how the Restore Iraqi Oil (RIO) contract was awarded to Halliburton subsidiary Kellogg, Browning, & Root (KBR). “I can unequivocally state that the abuse related to contracts awarded to KBR represents the most blatant and improper contract abuse I have witnessed during the course of my professional career.” She notes that there were several irregularities in the USACE’s contract with KBR to restore Iraqi oil:
bullet The independence of the USACE contracting process was severely compromised. The Office of the Secretary of Defense (OSD) controlled “every aspect of the RIO contract,” even after responsibility for the contract was delegated to the US Army.
bullet She questioned why the Defense Department had delegated executive agency authority for the RIO contract to the Corps when it has no competencies related to oil production. Such work was outside the scope of its congressionally-mandated mission.
bullet The Defense Department paid KBR to prepare for oil production restoration work before the RIO contract was even awarded. The payments were made under the already operational Logistics Civil Augmentation Program (LOGCAP), the scope of which did not include such work. Greenhouse said that the US government should have signed a new contract with KBR for this work. When she questioned the legality of these payments, she was incorrectly told that a new contract was being issued. [Democratic Policy Committee, 6/27/2005 pdf file]

Entity Tags: Bunnatine H. Greenhouse, Democratic Policy Committee, US Army Corps of Engineers, Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

The Senate passes its version of the 2005 Energy Policy Act (HR 6). Like the House version of the bill (see April 21, 2005), it includes a provision that would divert a portion of offshore oil and gas royalties to coastal energy producing states like Louisiana. But unlike the House version, which would give Louisiana $1 billion in royalties every year beginning in 2016, the Senate version would only provide Louisiana with $540 million over a four-year period beginning in fiscal year 2007. Louisiana would use the money to fund projects aimed at restoring the state’s coastal wetlands. The bill is referred to a conference committee (see July 29, 2005) charged with resolving the differences between the House and Senate versions. [New Orleans CityBusiness, 6/23/2005]

Entity Tags: US Congress

Timeline Tags: Hurricane Katrina

Several prominent former Louisiana politicians sign a letter urging President Bush to support the 2005 Energy Policy Act (HR 6)‘s provisions for revenue sharing (see April 21, 2005) (see June 28, 2005). Endorsed by former Governors Mike Foster (R-LA), Buddy Roemer (R-LA), David Treen (R-LA) and former Senators John Breaux (D-LA) and J. Bennett Johnston (D-LA), the letter states: “Louisiana puts an average of $5 billion each year into the Federal treasury from revenues produced off its shore. Energy Bill provisions that would give a meaningful share of those revenues through direct payments to Louisiana and other coastal states that host so much of the nation’s energy production are critical.” [Associated Press, 7/22/2005; Louisiana, 7/22/2005]

Entity Tags: Buddy Roemer, J. Bennett Johnston, Mike Foster, David Treen, George W. Bush, John Breaux

Timeline Tags: Hurricane Katrina

In a letter to President Bush, Louisiana Governor Kathleen Blanco urges the president and his energy secretary, Samuel W. Bodman, to visit the Louisiana coast and see first-hand the deteriorating condition of the state’s coastal wetlands. She wants the administration to reconsider its objection (see July 15, 2004) to a provision in the House (see April 21, 2005) and Senate (see June 28, 2005) versions of the 2005 Energy Policy Act (HR 6) that would channel oil and gas royalties from offshore operations to coastal states for coastal wetland restoration. In her letter, she emphasizes how Louisiana’s disappearing wetlands is making the oil and gas industry’s vast network of pipelines increasingly vulnerable to damage. She also stresses that coastal wetlands have historically protected the coast from the full fury of hurricanes and, without this barrier, a major hurricane could devastate low-elevation coastal communities like New Orleans. “Let me show you the fragile wetlands that are the only protection for the thousands of miles of pipelines that connect this nation to 80 percent of its offshore energy supply and to a full third of all its oil and gas, both foreign and domestic. The vulnerability of those protective wetlands is all the more apparent to our two million coastal zone residents during this active hurricane season.” [Louisiana, 7/20/2005; Houma Today, 7/21/2005]

Entity Tags: Kathleen Babineaux Blanco, George W. Bush, Samuel W. Bodman

Timeline Tags: Hurricane Katrina

A House and Senate conference committee working to consolidate conflicting House and Senate versions of the 2005 Energy Policy Act (HR 6) agree on a final draft. One conflict between the two versions was a provision that would require the federal government to share royalties from offshore oil and gas operations with coastal oil-producing states. The committee decides in favor of the Senate version (see June 28, 2005), which would provide coastal states with about $1 billion dollars over a period of four years. Most of the money, $540 million, would go to Louisiana. The House version (see April 21, 2005) of the bill would have provided $1 billion in oil and gas royalties annually to Louisiana, but not until 2016. That version was rejected as was a proposal put forth by the Bush administration (see July 22, 2005) that would have reduced Louisiana’s share to only $54 million. Bush signs the bill into law on August 8. [Advocate (Baton Rouge), 7/26/2005; Boston Globe, 9/1/2005]

Entity Tags: Louisiana Coastal Area (LCA) Ecosystem Restoration Study, US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

The Mississippi Valley Division of the US Army Corps of Engineers, based in Vicksburg, Mississippi, begins preparations today to support hurricane response operations in Louisiana and Mississippi, according to an undated Army Corps news release. This same release notes that “[w]ith an estimated 500 Corps personnel still deployed in support of the Global War on Terror, it will require an even larger contingent of Corps personnel to support emergency operations if Katrina comes ashore in our area of responsibility as a Category 4 or 5 hurricane. Anticipating potential requirements to pump water out of New Orleans, the Corps has begun discussions with partners to preposition assets to conduct un-watering operations should Katrina strike the southern Louisiana and New Orleans area.” [US Army Corps of Engineers, 8/29/2005]

Entity Tags: US Army Corps of Engineers

Timeline Tags: Hurricane Katrina

Bunnatine H. Greenhouse, who earlier criticized the US Army Corps of Engineers’ sole-source contract with Halliburton at a public hearing (see June 27, 2005), is demoted from her position as Principal Assistant Responsible for Contracting (PARC). Greenhouse, who was known for her steadfast adherence to regulations enforcing fair competition, received high performance ratings at the beginning of her tenure, which began in 1997. But after she began objecting to the contracts being awarded to Halliburton subsidiary Kellogg, Brown, & Root (KBR), her reviews became negative. [New York Times, 8/29/2005; Democratic Policy Committee, 9/16/2005, pp. 8-9 pdf file]

Entity Tags: US Army Corps of Engineers, Bunnatine H. Greenhouse, Halliburton, Inc.

Timeline Tags: Iraq under US Occupation

Three war contractors for KBR, the firm supplying logistical support for US troops in Iraq and Kuwait, meet in a quiet lounge in London’s Cumberland Hotel. The three men are unaware that federal agents are tailing them. They spend the afternoon drinking and discussing the various bribes they have accepted as kickbacks as a routine part of doing business. KBR procurement manager Stephen Seamans, who, unbeknownst to his colleagues, is wearing a wire for the FBI, wonders whether or not he should return $65,000 in bribes his two fellows, executives from the Saudi conglomerate Tamimi Global Co, gave him. One of the two executives, Tamimi operations director Shabbir Khan, tells him to conceal the money by falsifying business records. “Just do the paperwork,” Khan advises. This and other information about KBR war profiteering in Iraq comes from a federal investigation that will begin in late 2007 (see October 2006 and Beyond). [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: Kellogg, Brown and Root, Stephen Seamans, Tamimi Global Co, Shabbir Khan

Timeline Tags: Iraq under US Occupation

KBR subcontractor Stephen Seamans and his business crony, Shabbir Khan of the Saudi Arabian conglomerate Tamimi Global Co, are arrested as part of the ongoing investigation into war profiteering by KBR and its subcontractors (see October 2006 and Beyond). Khan is convicted of lying to federal agents about the kickbacks he provided Seamans (see February 20, 2008, October 2005, October 2002, April 2003, and June 2003), and will serve 51 months in prison. Seamans pleads guilty to charges stemming from the same business deals, and serves a year and a day in prison. Seamans, an Air Force veteran, once taught ethics to junior KBR employees. In December, during his sentencing hearing, he says he is sorry for taking the bribes, “It is not the way that Americans do business.” [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: Kellogg, Brown and Root, Stephen Seamans, Tamimi Global Co, Shabbir Khan

Timeline Tags: Iraq under US Occupation

Federal prosecutors attempt to determine just how much corruption, fraud, and theft has occurred among government contracts handed out to corporations for their work in Iraq. The preliminary answer: a great deal. The US Justice Department chooses to center its probe into war profiteering in the small town of Rock Island, Illinois, because high-ranking Army officials at the arsenal there administer KBR’s LOGCAP III contract to feed, shelter, and support US soldiers, and to rebuild Iraq’s oil infrastructure. KBR, formerly Kellogg, Brown, & Root, is a subsidiary of oil-construction giant Halliburton. The reported violations are rampant (see February 20, 2008, October 2005, October 2002, April 2003, June 2003, and September 21, 2007). [Chicago Tribune, 2/20/2008] The investigation is under the aegis of the National Procurement Fraud Task Force, formed by the Justice Department to detect, identify, prevent, and prosecute procurement fraud by firms such as KBR. The Task Force includes the FBI, the US Inspectors General community, the Executive Office for United States Attorneys, and others. [PR Newswire, 7/13/2007]
Multiple Prosecutions Underway - The Justice Department prosecutes four former supervisors for KBR, the large defense firm responsible for most of the military logistics and troop supply operations in Iraq. The government also prosecutes five executives from KBR subcontractors; an Army officer, Pete Peleti, has been found guilty of taking bribes (see February 20, 2008). Two KBR employees have already pleaded guilty in another trial, and about twenty more people face charges in the ever-widening corruption scandal. According to recently unsealed court documents, kickbacks, corruption, and fraud were rampant in contractual dealings months before the first US combat soldier arrived in Iraq. Not only did KBR contractors receive handsome, and illicit, payoffs, but the corruption and fraud endangered the health and safety of US troops stationed in Iraq and Kuwait. One freight-shipping subcontractor has already confessed to bribing five KBR employees to receive preferential treatment; five more were named by Peleti as accepting bribes. Prosecutors have identified three senior KBR executives as having approved deliberately inflated bids. None of these people have yet been charged. Other related charges have been made, from KBR’s refusal to protect employees sexually assaulted by co-workers to findings that the corporation charged $45 for a can of soda.
Pentagon Slashed Oversight - The overarching reason why such rampant fraud was, and is, taking place, prosecutors and observers believe, is that the Department of Defense outsourced critical troop support jobs while simultaneously slashing the amount of government oversight (see 2003 and Beyond).
Lack of Cooperation - Kuwait refuses to extradite two Middle Eastern businessmen accused of LOGCAP fraud. And KBR refuses to provide some internal documents detailing some of its managers’ business dealings. KBR says it “has not undertaken an exhaustive search of its millions of pages of procurement documents” to determine whether other problems exist. [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: US Department of the Army, National Procurement Fraud Task Force, Kellogg, Brown and Root, Federal Bureau of Investigation, Defense Contract Audit Agency, Pete Peleti, US Department of Defense, US Department of Justice

Timeline Tags: Iraq under US Occupation

Former KBR subcontract administrator Anthony J. Martin pleads guilty to violating the Anti-Kickback Act. Martin admits to taking bribes from a Kuwaiti company in 2003 in return for granting a $4.67 million contract to the firm. Although the Justice Department does not identify the Kuwaiti firm, other court documents subsequently name the firm as First Kuwaiti General Trading & Contracting (see September 21, 2007). Martin worked from February 2003 through February 2004 in Kuwait, where he solicited bids from prospective subcontractors under KBR’s largest contract with the US Army, the Logistics Civil Augmentation Program (LOGCAP III). Martin’s conviction is part of a much larger investigation mounted by the Justice Department in Rock Island, Illinois, investigating corporate fraud in the provision of logistics to the US military deployed in Iraq and Afghanistan (see October 2006 and Beyond). Martin has admitted to accepting $10,000 from the managing partner of First Kuwaiti, Lebanese businessman Wadih Al Absi. He was to receive almost $200,000 more, but testified in his plea bargain agreement that he felt guilty about taking the $10,000 and subsequently refused to take any more. Martin faces up to ten years in prison and possible restitution. [PR Newswire, 7/13/2007; Associated Press, 9/21/2007]

Entity Tags: First Kuwaiti General Trading & Contracting, Anthony J. Martin, US Department of Justice, Wadih Al Absi, Kellogg, Brown and Root, US Department of the Army

Timeline Tags: Iraq under US Occupation

Randy Papadopoulos, Nancy Berlage, and Diane Putney, three of the authors of <i>Pentagon 9/11</i>.Randy Papadopoulos, Nancy Berlage, and Diane Putney, three of the authors of Pentagon 9/11. [Source: Samantha L. Quigley / US Department of Defense]Defense Department historians release a book chronicling the September 11 attack on the Pentagon. The 250-page book includes the accounts of survivors, rescuers, and emergency responders, and includes previously unpublished photos of the wreckage, aircraft parts, and rescue efforts. [Fayetteville Observer, 9/13/2007; Washington Post, 9/27/2007] Titled Pentagon 9/11, it is published by the Historical Office of the Office of the Secretary of Defense, in collaboration with the Naval Historical Center, and with the assistance of the Army, Air Force, and Marine Corps historical offices. [US Department of Defense, 9/10/2007] More than 1,300 interviews were collected for it (see October 2001-September 11, 2002), of which the authors used more than 300 in putting together their account. [Washington Post, 9/27/2007] Randy Papadopoulos, a historian with the Naval Historical Center who co-authored Pentagon 9/11, calls it “the first scholarly study of what happened at the Pentagon on 11 September 2001.” [American Forces Press Service, 9/7/2007] Reportedly, one reason for writing the book was to counter skepticism and alternative theories that suggest the US government was behind the attack, and a missile rather than a hijacked aircraft hit the Pentagon (see Early March 2002). [Washington Post, 9/27/2007] Diane Putney, one of the book’s authors says, “I have no doubt it was American Airlines Flight 77 [that hit the building].” Her conclusion is reportedly based on a piece of the plane that was discovered, which bore the American Airlines logo. [American Forces Press Service, 9/7/2007]

Entity Tags: Military History Detachment, Pentagon, Randy Papadopoulos, US Department of Defense, Diane Putney

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

First Kuwaiti General Trading & Contracting, the Kuwaiti firm building the US embassy in Baghdad, is accused of agreeing to pay $200,000 in kickbacks in return for two unrelated Army contracts in Iraq. According to now-sealed court documents, First Kuwaiti worked with a manager for KBR, the US contracting firm that handles logistics for the US military in Iraq and Afghanistan. The document is based on grand jury testimony from the former KBR manager, Anthony J. Martin, who pled guilty in July to taking bribes from First Kuwaiti in 2003 (see July 13, 2007). The US government has tried to keep First Kuwaiti’s name out of public records related to Martin’s case. Martin told the grand jury that he took part in a bribery scheme with Lebanese businessman Wadih Al Absi, the controlling official of First Kuwaiti. That firm has done a large amount of work for US government entities, including the Army Corps of Engineers and the US Marine Corps. It is under investigation by Congress for its allegedly illegal labor practices, and the Justice Department is investigating the firm for alleged contract fraud on the embassy project. J. Scott Arthur, one of Martin’s defense lawyers, says the US government is improperly withholding evidence about Martin and his relationship with Al Absi and First Kuwaiti. Martin has said that he took kickbacks in return for his awarding a $4.6 million contract to First Kuwaiti to supply 50 semi-tractors and 50 refrigeration trailers for six months. A month later, Martin awarded First Kuwaiti an additional $8.8 million subcontract to supply 150 more semi-tractors for six months. In return, First Kuwaiti agreed to pay him $200,000. Martin says he took $10,000, then refused to take any more money. Martin will testify in the trial of former KBR procurement manager Jeff Mazon (see June 2003). First Kuwaiti denies any wrongdoing, and KBR says through a spokesperson that it “in no way condones or tolerates unethical behavior,” adding, “We have fully cooperated with the Department of Justice.” [Associated Press, 9/21/2007]

Entity Tags: J. Scott Arthur, Anthony J. Martin, First Kuwaiti General Trading & Contracting, US Department of the Marines, US Army Corps of Engineers, Kellogg, Brown and Root, Jeff Mazon, Wadih Al Absi

Timeline Tags: Iraq under US Occupation

Chief Warrant Officer Pete Peleti, formerly the military’s top food adviser in the Middle East, is sentenced to 28 months in prison for taking bribes from US contractors operating fraudulent war-profiteering schemes in Iraq and Kuwait. Peleti took bribes from Saudi conglomerate Tamimi Global Co, US firm Public Warehousing Co, and others between 2003 and 2006. Among the bribes Peleti accepted was a trip to the 2006 Super Bowl. Peleti also accepted bribes from Tamimi executive Shabbir Khan to influence military contracts. In 2006, Peleti was arrested as he re-entered the US at Dover Air Force Base; he was carrying a duffel bag stuffed with watches and jewelry, and had $40,000 hidden inside his clothes. Peleti is now cooperating with prosecutors. This and other information about KBR war profiteering in Iraq comes from a federal investigation that will begin in late 2007 (see October 2006 and Beyond). [Chicago Tribune, 2/20/2008; Chicago Tribune, 2/21/2008]

Entity Tags: Kellogg, Brown and Root, Public Warehousing Co, Tamimi Global Co, Pete Peleti, Shabbir Khan

Timeline Tags: Iraq under US Occupation

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