H5556 CONGRESSIONAL RECORD — HOUSE May 22, 2007 section 546 in two critical respects. First, it ef- tigation, which they surmised may have led to Mr. CONYERS. Mr. Speaker, I yield fectively removed district court judges from the their forced resignations. back the balance of my time. interim appointment process and vested the Mr. Speaker, the USA Reau- The SPEAKER pro tempore (Mr. PAS- Attorney General with the sole power to ap- thorization provision on interim United States TOR). The question is on the motion of- point interim United States Attorneys. Second, Attorneys should be repealed for two reasons. fered by the gentleman from Michigan the Act eliminated the 120-day limit on the First, Members of Congress did not get an op- (Mr. CONYERS) that the House suspend term of an interim United States Attorney ap- portunity to vet or debate the provision that is the rules and pass the Senate bill, S. pointed by the Attorney General. As a result, current law. Rather, the Republican leadership 214. judicial input in the interim appointment proc- of the 109th Congress slipped the provision The question was taken. ess was eliminated. Even more problematic, it into the Conference Report at the request of The SPEAKER pro tempore. In the created a possible loophole that permit United the Department of Justice. Not even Senate opinion of the Chair, two-thirds being States Attorneys appointed on an interim basis Judiciary Chairman , whose in the affirmative, the ayes have it. to serve indefinitely without ever being sub- chief of staff was responsible for inserting the Mr. CONYERS. Mr. Speaker, on that jected to Senate confirmation process, which provision, knew about its existence. I demand the yeas and nays. is plainly a result not contemplated by the Second, it is now clear that the manifest in- The yeas and nays were ordered. Framers. tention of the provision was to allow interim The SPEAKER pro tempore. Pursu- Mr. Speaker, excluding changes in adminis- appointees to serve indefinitely and to cir- ant to clause 8 of rule XX and the tration, it is rare for a United States Attorney cumvent Senate confirmation. We know now, Chair’s prior announcement, further to not complete his or her 4-year term of ap- for example, that in a September 13, 2006 e- proceedings on this question will be pointment. According to the Congressional Re- mail to former , Harriet postponed. Miers, Attorney General Chief of Staff, Kyle search Service, only 54 United States Attor- f neys between 1981 and 2006 did not com- Sampson wrote: plete their 4-year terms. Of these, 30 obtained I strongly recommend that, as a matter of NO OIL PRODUCING AND Administration policy, we utilize the new EXPORTING CARTELS ACT OF 2007 other public sector positions or sought elective statutory provisions that authorize the At- office, 15 entered or returned to private prac- torney General to make U.S. Attorney ap- Mr. CONYERS. Mr. Speaker, I move tice, and one died. Of the remaining eight pointments. to suspend the rules and pass the bill United States Attorneys, two were apparently Mr. Sampson further said that by using the (H.R. 2264) to amend the Sherman Act dismissed by the President, and three appar- new provision, DOJ could ‘‘give far less def- to make oil-producing and exporting ently resigned after news reports indicated erence to home-State Senators and thereby cartels illegal, as amended. they had engaged in questionable personal get (1) our preferred person appointed and (2) The Clerk read the title of the bill. actions. do it far faster and more efficiently, at less po- The text of the bill is as follows: Mr. Speaker, in the past few months dis- litical cost to the White House.’’ H.R. 2264 turbing stories appeared in the news media re- Regarding the interim appointment of Tim Be it enacted by the Senate and House of Rep- porting that several United States Attorneys Griffin at the request of and Harriet resentatives of the United States of America in had been asked to resign by the Justice De- Miers, Mr. Sampson wrote to Monica Good- Congress assembled, partment. It has now been confirmed that at ling, Senior Counsel to the White House and SECTION 1. SHORT TITLE. least seven United States Attorneys were Liaison to the White House on December 19, This Act may be cited as the ‘‘No Oil Pro- asked to resign on December 7, 2006. An 2006 the following: ducing and Exporting Cartels Act of 2007’’ or eighth United States Attorney was subse- I think we should gum this to death: ask ‘‘NOPEC’’. quently asked to resign. And we learned on the Senators to give Tim a chance, meet SEC. 2. SHERMAN ACT. May 10, the day the Attorney General testified with him, give him some time in office to see The Sherman Act (15 U.S.C. 1 et seq.) is before the House Judiciary Committee, we how he performs, etc. If they ultimately say, amended by adding after section 7 the following: ‘no never’ (and the longer we can forestall learned that a ninth United States Attorney ‘‘SEC. 7A. (a) It shall be illegal and a violation that, the better), then we can tell them we’ll of this Act for any foreign state, or any instru- had been asked to resign as part of the purge. look for other candidates, and otherwise run mentality or agent of any foreign state, to act The names of the fired United States Attor- out the clock. All of this should be done in collectively or in combination with any other neys are as follows: ‘good faith,’ of course. foreign state, any instrumentality or agent of H.E. (‘‘Bud’’) Cummins, III, U.S. Attorney Finally, we now know that after gaining this any other foreign state, or any other person, (E.D. Ark.); John McKay, U.S. Attorney (W.D. increased authority to appoint interim United whether by cartel or any other association or Wash.); David Iglesias, U.S. Attorney (D. States Attorneys indefinitely, the administration form of cooperation or joint action— N.M.); Paul K. Charlton, U.S. Attorney (D. has exploited the provision to fire United ‘‘(1) to limit the production or distribution of oil, natural gas, or any other petroleum prod- Ariz.); , U.S. Attorney (S.D. Calif.); States Attorneys for political reasons. A mass Daniel Bogden, U.S. Attorney (D. Nev.); Kevin uct; purge of this sort is unprecedented in recent ‘‘(2) to set or maintain the price of oil, natural Ryan, U.S. Attorney (N.D. Calif.); Margaret history. The Department of Justice and the gas, or any petroleum product; or Chiara, U.S. Attorney (W.D. Mich.); and Todd White House coordinated this purge. Accord- ‘‘(3) to otherwise take any action in restraint P. Graves, U.S. Attorney (W.D. Mo.). ing to an administration ‘‘hit list’’ released in of trade for oil, natural gas, or any petroleum Mr. Speaker, on March 6, 2007, the Judici- March of this year, United States Attorneys product; ary Committee’s Subcommittee on Commer- were targets for the purge based on their when such action, combination, or collective ac- cial and Administrative Law held a hearing en- rankings. The ranking relied in large part on tion has a direct, substantial, and reasonably titled, ‘‘Restoring Checks and Balances in the whether the United States Attorneys foreseeable effect on the market, supply, price, Confirmation Process of United States Attor- ‘‘exhibit[ed] loyalty to the President and Attor- or distribution of oil, natural gas, or other pe- neys.’’ Witnesses at the hearing included six ney General.’’ troleum product in the United States. of the eight former United States Attorneys Mr. Speaker, until exposed by this unfortu- ‘‘(b) A foreign state engaged in conduct in and William Moschella, Principal Associate violation of subsection (a) shall not be immune nate episode, United States Attorneys were under the doctrine of sovereign immunity from Deputy Attorney General, among other wit- expected to, and in fact did exercise, wide dis- the jurisdiction or judgments of the courts of the nesses. cretion in the use of resources to further the United States in any action brought to enforce Six of the eight former United States Attor- priorities of their districts. Largely a result of its this section. neys testified at the hearing and each testified origins as a distinct prosecutorial branch of the ‘‘(c) No court of the United States shall de- that he or she was not told in advance why he Federal Government, the office of the United cline, based on the act of state doctrine, to make or she was being asked to resign. Upon fur- States Attorney traditionally operated with an a determination on the merits in an action ther inquiry, however, Messrs. Charlton and unusual level of independence from the Jus- brought under this section. Bogden were advised by the then Acting As- tice Department in a broad range of daily ac- ‘‘(d) The Attorney General of the United States may bring an action to enforce this sec- sistant Attorney General William Mercer that tivities. That practice served the Nation well tion in any district court of the United States as they were terminated essentially to make way for more than 200 years. The practice that has provided under the antitrust laws.’’. for other Republicans to enhance their creden- been in place for less than 2 years has served SEC. 3. SOVEREIGN IMMUNITY. tial and pad their resumes. In addition, the Nation poorly. It needs to end. That is why Section 1605(a) of title 28, United States Code, Messrs. Iglesias and McKay testified about in- I vote to report H.R. 580 favorably to the is amended— appropriate inquiries they received from Mem- House. That is why I will vote for S. 214. I (1) in paragraph (6), by striking ‘‘or’’ after the bers of Congress concerning pending inves- urge all Members to do likewise. semicolon;

VerDate Aug 31 2005 06:24 Jul 28, 2007 Jkt 059060 PO 00000 Frm 00022 Fmt 7634 Sfmt 6333 J:\CRONLINE\2007BA~3\2007NE~2\H22MY7.REC H22MY7 mmaher on PROD1PC70 with CONG-REC-ONLINE May 22, 2007 CONGRESSIONAL RECORD — HOUSE H5557 (2) in paragraph (7), by striking the period conspiracy, has unfairly driven up the which I serve, held a hearing on prices and inserting ‘‘; or’’; and price and cost of imported crude oil to at the pump, market failure, and the (3) by adding at the end the following: ‘‘(8) in which the action is brought under sec- satisfy the greed of oil exporters. We oil industry. The experts at this hear- tion 7A of the Sherman Act.’’. have long decried OPEC, but, sadly, the ing, including the Connecticut attor- The SPEAKER pro tempore. Pursu- administration has done little or noth- ney general, Mr. Blumenthal, insisted ant to the rule, the gentleman from ing to stop this. we do something about the OPEC car- So now the time has come. It is time tel. Michigan (Mr. CONYERS) and the gen- for us to do something to point them in The price of gasoline at the pump tleman from Florida (Mr. KELLER) each closely tracks the price of a barrel of will control 20 minutes. the right direction. We have got to get The Chair recognizes the gentleman ahold of this economic crisis. The cries oil on the world oil market. That is be- from Michigan. are rising up in every congressional cause the price of crude oil comprises district in the Nation, so your Com- 56 percent of the cost of a gallon of gas- GENERAL LEAVE Mr. CONYERS. Mr. Speaker, I ask mittee on the Judiciary has produced oline. American refineries, which im- unanimous consent that all Members H.R. 2264, with the help of Mr. CHABOT port over 60 percent of their oil from have 5 legislative days within which to and Mr. KELLER and other Members, to foreign countries, compete for those oil revise and extend their remarks and in- make clear that the oil cartel nations resources with China and India. De- clude extraneous material on the bill that are colluding to limit crude oil mand for oil in those two countries has now under consideration. production as a means of fixing its dramatically increased in recent years. The SPEAKER pro tempore. Is there price is illegal under United States As the demand has increased at home objection to the request of the gen- law, just as it would be for any com- and abroad, supplies have not kept up tleman from Michigan? pany engaging in the same conduct. and the price of oil has gone up. Complicating this problem is the fact There was no objection. b 1230 Mr. CONYERS. Mr. Speaker, I yield that we haven’t built a refinery in this myself such time as I may consume. It clarifies and reaffirms the law in country in 30 years. And recent, unex- Mr. Speaker, gas prices have now several critical respects: pected refinery shutdowns have con- reached an all-time record high, top- First, it exempts OPEC and other na- stricted supply. Of course, there are ping even the 1981 spike in price that tions from the provisions of the For- also anticompetitive forces in play had stood as the record high for 26 eign Sovereign Immunities Act to the that manipulate the law of supply and years. According to the Energy Infor- extent those governments are engaged demand to their selfish benefit and our mation Administration, the nationwide in price fixing and other anticompeti- detriment. price of unleaded regular gas hit $3.22 a tive activities. For example, the world oil price is gallon, 11.5 cents higher than last Second, H.R. 2264 makes clear that dictated mainly by the quantity of oil week’s price. In Michigan, it is even the so-called ‘‘act of state’’ doctrine that the Organization of Petroleum Ex- higher than that. does not in any way prevent courts porting Countries, or OPEC, is willing Today’s record-breaking price, one in from ruling on antitrust charges to supply. The 11 current OPEC mem- an unending series of continuous price brought against foreign governments, bers account for 40 percent of the world hikes over the past month, is hurting and that foreign governments are ‘‘per- oil production and about two-thirds of Americans in their pocketbooks, and sons’’ subject to suit under the anti- the world’s proven oil reserves. Most we have got to do something about it. trust laws. would argue that the presence of this Retailers across the Nation are saying Third, it explicitly authorizes the De- cartel, controlled in large part by to- that soaring gas prices are prompting partment of Justice to bring lawsuits talitarian or hostile regimes like Iran consumers to cut back on their shop- in Federal court against oil cartel and Venezuela, is not helpful. ping trips and their purchases. members. The question is: What can Congress We are told this won’t be the end of Ladies and gentlemen, we, on behalf do about it? NOPEC is one possible so- these skyrocketing price hikes either. of the American people, have had lution to this problem. Because of the The AAA forecasts that more record enough. These price rises are not some- ‘‘act of state’’ doctrine and the concept prices are probably on the way, espe- thing that we have to merely humbly of sovereign immunity, Americans are cially as the summer begins, which is drive into the gas station and look at precluded from suing the cartel that usually the busiest driving season of the new, increased cost. We don’t have controls a good portion of the world’s the year. to stand by and watch OPEC dictate oil supply. This bill would change that. In Michigan, gas prices have reached the price of our gas without any re- Under this NOPEC legislation, the their highest levels ever at $3.27 a gal- course whatsoever. We can do some- U.S. Attorney General would be al- lon. Michigan is now the third most ex- thing about it to combat this blatantly lowed to bring an antitrust lawsuit pensive State for gasoline in the coun- anticompetitive, anticonsumer behav- against the oil cartel members for col- try, behind California and the State of ior, and we are. lusion, price fixing, and other anti- Illinois. I urge Members to carefully consider competitive activities designed to Last week, in an effort to help ad- the legislation that is now being de- gouge American consumers. dress this crisis, the House Judiciary bated on the House floor. I want to thank the gentleman from Committee’s Antitrust Task Force ex- Mr. Speaker, I reserve the balance of Ohio (Mr. CHABOT), the gentleman from amined the OPEC cartel and its impact my time. Michigan (Mr. CONYERS) and the gen- on the price of gas. OPEC accounts for Mr. KELLER of Florida. Mr. Speak- tlewoman from California (Ms. ZOE two-thirds of the world’s oil reserves er, I yield myself such time as I may LOFGREN) for their leadership on this and more than 40 percent of the world’s consume. NOPEC legislation. oil production, but, even more signifi- Mr. Speaker, it is painfully obvious I would point out, in the interest of cantly, OPEC oil exports represent 70 to the American people that the price straight talk, that the White House percent of all the oil traded inter- of gasoline is going up. The nationwide this morning issued a statement saying nationally. average for regular, unleaded gas is at that the President will veto the You know what that means. This af- a record $3.20 a gallon, according to NOPEC legislation. I would point out fords OPEC, obviously, considerable AAA, up almost 34 cents from a month that they misspelled the word ‘‘Presi- control over the global market. Its net ago, and the peak summer driving sea- dent’’ in this release; President is oil export revenues should reach nearly son hasn’t even started yet. The Amer- spelled P-R-E-S-E-N-T. Apparently, the $395 billion in this year alone, and its ican people are mad as heck, and they White House cares even less about influence on the oil market is domi- don’t want to take it anymore. spell-check than they do about OPEC nant, especially when it decides to in- To heck with OPEC. How about with regard to this matter. crease or reduce the levels of produc- NOPEC? That’s what this legislation is I would urge my colleagues on both tion. all about. sides of the aisle to do something about For years now, OPEC’s price-fixing Last week, the Antitrust Task Force OPEC’s price fixing misbehavior and conspiracy, and that is what I call it, a of the House Judiciary Committee, on vote ‘‘yes’’ on H.R. 2264.

VerDate Aug 31 2005 06:24 Jul 28, 2007 Jkt 059060 PO 00000 Frm 00023 Fmt 7634 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\H22MY7.REC H22MY7 mmaher on PROD1PC70 with CONG-REC-ONLINE H5558 CONGRESSIONAL RECORD — HOUSE May 22, 2007 Mr. Speaker, I reserve the balance of So long as it is possible for OPEC to ting hard and it is something that we my time. manipulate rapidly the price of crude, need to deal with in this Congress. Mr. CONYERS. Mr. Speaker, I yield they have it within their power to real- I am very disappointed in the Presi- such time as she may consume to the ly destroy markets for alternative en- dent that this message indicates, gentlewoman from California (Ms. ZOE ergy, and therefore, make it even hard- whether or not they know how to spell LOFGREN) whose State has been most er for us to escape from the oily grasp the word ‘‘President,’’ that they are affected by the subject matter we are of OPEC. going to veto this bill if it is passed. I here on the floor considering. We need to make sure that these mis- think we ought to send it to the Presi- Ms. ZOE LOFGREN of California. Mr. deeds are prevented by adopting this dent and let the chips fall where they Speaker, I am pleased to be a cosponsor legislation. This is a good bill for con- may. This is long overdue legislation. I of this important bill and believe it is sumers, for people in California that urge its passage. sound legislation that the House are complaining about the cost of gas. The other issue, by the way, which should adopt today. It is a good bill for those who want to was of great interest to my constitu- If private actors collusively con- move away from oil to alternative en- ents last night in the tele-town hall trolled supply and prices in the manner ergies and who need to avoid the ma- meeting was, not surprisingly, the im- that OPEC member nations do, there is nipulation of the market by OPEC that migration issue. We heard the Senate no question that their conduct would for many years has kept us from that reached an agreement just recently on, be illegal as a per se violation of the goal. in my view, an extremely flawed agree- Sherman Act, and they would be sub- I hope that this bill, which is an im- ment which is going to be debated over ject to criminal and civil liability. portant first step, will not be vetoed by there and then debated over here. Typically, however, foreign states are the President. I think it would be a Those are the two principal issues my immune from suit in Federal court. shame if he were to prevent this relief people back in Cincinnati are con- Section 1604 of title 28 of the United for the traveling public, and also this cerned about. States Code provides that a foreign hope for those of us who want to fight These continued price hikes take their toll on consumers directly at the state shall be immune from the juris- global climate change through the use gas pump, as well as impacting their diction of the courts of the United and development of alternative energy everyday lives and raising the cost of States and of the States, with some sources. specific exceptions. One exception is I thank the gentleman for recog- things like going to the grocery store or going to work or even planning a va- where the suit is based upon a commer- nizing me. cial activity carried on in the United Mr. KELLER of Florida. Mr. Speak- cation. I mean, this is the time when States by the foreign state, or upon an er, I yield such time as he may con- people are deciding whether they are going to take the kids to King’s Island act performed in the United States in sume to the gentleman from Ohio (Mr. up the road from my district in Cin- connection with a commercial activity CHABOT) who is the lead Republican co- cinnati, or if they are going to go to of the foreign state elsewhere, or upon sponsor of NOPEC and has worked hard Disney World down in Florida in Mr. an act outside of the territory of the on this legislation for 3 years. KELLER’s area. But when you have gas United States in connection with a Mr. CHABOT. I thank the gentleman prices at $3.20-plus per gallon, this is commercial activity of the foreign for yielding. not only going to put a damper on va- state elsewhere and that causes a di- Mr. Speaker, I rise in strong support cation and disappointing our kids, but rect effect in the United States. of H.R. 2264, the No Oil Producing and it is significantly going to weigh down I think it is quite clear that the Exporting Cartels Act of 2007. First, I would like to thank the dis- this economy. OPEC collusion falls within the current I think there is no question that if tinguished gentleman from Michigan, exception. gas prices remain this high, it is going So why is this bill, this law, nec- Chairman CONYERS, for his hard work to have a significant impact on the and his leadership on this bill. We have essary? A district court has held other- economy. Jobs and other things are at worked together in previous Congresses wise, and it is important that the Con- risk. gress reaffirm that the antitrust laws to move this bill, and I am very pleased Passing H.R. 2264 would be a positive do indeed apply to OPEC nations in to see it moving on the floor here first step to allaying concerns that the their role as commercial actors engag- today. American public has expressed about ing in such collusion where such con- I also want to thank the gentle- these uncontrollable price surges. Over duct impacts the United States. woman from California (Ms. ZOE the last decade, it has become alarm- Another obstacle to antitrust law- LOFGREN) and the gentleman from ingly clear that America is far too de- suits against OPEC is the so-called Florida (Mr. KELLER) for their leader- pendent on foreign oil to meet our en- ‘‘act of state’’ doctrine which has been ship in supporting the passage of this ergy needs. Disturbingly, we import, as used by the Ninth Circuit in affirming legislation as well. some of my colleagues have mentioned, the dismissal of the case that was Since last week when we first consid- more than two-thirds of the oil we con- wrongly decided. ered this bill, gas prices have increased sume, much of it from OPEC, and much H.R. 2264 minimizes any ‘‘act of another 10 cents to a record level in of it from some of the more unstable state’’ doctrine concerns by making this country of over $3.27 a gallon. Be- areas of the world—Iran, Iraq, Saudi sure and entrusting to the executive fore heading to the airport to come Arabia, Kuwait, the United Arab Emir- branch the discretion whether to bring back here from my district in Cin- ates, and of course we get some from charges under this provision. A court’s cinnati, just yesterday, I filled up in Nigeria and Venezuela. As Mr. KELLER concern about any insinuation of itself my 1993 Buick and it was $3.19 in Cin- mentioned, we have down there Mr. into matters properly within the baili- cinnati by the University of Cin- Chavez who seems to be following in wick of the political branches is miti- cinnati, $32. And my constituents back the footsteps of Fidel Castro. Those are gated when Congress, by this legisla- home in Cincinnati are very concerned, the types of countries that we are de- tion, and the executive branch, by and rightly so, particularly as we enter pending on for our oil, and that has to bringing the action, explicitly author- the peak summer driving season, which change. ize judicial involvement. begins this weekend. At the same time the number of re- Much has been said about the price of I happen to have a tele-town hall fineries operating in the United States gas today. It is high, and I think we all meeting where hundreds and hundreds, has decreased from over 300, 324 to be hear from our constituents about it. probably thousands of people in my dis- exact back in 1981, to fewer than 150, But there is another reason why ma- trict were on the line and we were talk- 148 to be exact. So we have cut the nipulation of the market is bad for ing about a range of issues, this issue, number of refineries available in half America. We know that for our long- high gas prices in my district. And as over that period of time, and we term future we have to develop energy Chairman CONYERS mentioned, the haven’t built another oil refinery since alternatives. We cannot continue to State of Michigan has the highest in 1976, over 30 years ago now. drill and continue to be dependent the whole country. People are really There is no doubt that we need to upon the Middle East for oil. concerned about this; this is really hit- focus on both short-term and long-term

VerDate Aug 31 2005 06:24 Jul 28, 2007 Jkt 059060 PO 00000 Frm 00024 Fmt 7634 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\H22MY7.REC H22MY7 mmaher on PROD1PC70 with CONG-REC-ONLINE May 22, 2007 CONGRESSIONAL RECORD — HOUSE H5559 strategies to address these issues. We stopped in the airport by airport work- OPEC has substantial influences over need increased domestic production ers, individuals who are hourly wages, the price of oil. OPEC member nations and refining capabilities, and we need and they simply say, we can’t take it have extensive oil reserves and there- to put a stronger emphasis on alter- anymore. As I got on the plane, their fore can readily increase supply and native energy and conservation efforts. last word was, can you do something lower prices.’’ That means the OPEC b 1245 about the gasoline prices? Today in can act for the greater good if they de- America, gasoline prices are over $3.20 sire to do so. But this strategy to make us less oil- a gallon—enough is enough! I think that’s simple enough to un- dependent and to put us on more sound As we enter into the summer, we are derstand. They can increase supply, footing also has to include breaking up being told that it’s going to get worse, they can lower prices, but they’re not the cartels that play a primary role in higher and higher and higher. The dis- doing it. manipulating, and I emphasize manipu- tinguished Speaker said the gentle- So I would ask my colleagues from lating, the market. We talk about sup- woman from Texas. I represent what is all parts of the country to be sympa- ply and demand and all that, but OPEC known as the energy capital of the thetic to vacationers, people trying to countries are manipulating the supply world, and what I would encourage the get to hospitals, mothers and fathers of oil in the world. particular companies that I have the taking children to various places, el- For decades, OPEC nations have con- privilege of representing, and I have in derly trying to get to the places of wor- spired, and again I emphasize that, essence probably voted differently from ship, where they go. Just the sheer op- conspired to limit supplies and to drive many in this House in supporting the eration of America is dependent on up prices of imported crude oil, Energy Policy Act and a number of ini- what we do here today. I can’t go gouging American consumers, in viola- tiatives that were supposed to help us home, and I imagine none of you can, tion of our Nation’s antitrust laws. diversify or help enhance the capacity without saying we tried to do some- OPEC accounts for more than two- of our particular companies. They were thing. thirds of the global oil production and supposed to help build refinery capac- I close simply by an oral letter to my exports more than 65 percent of the oil ity, which I will tell you is an issue. I constituents. You might think that traded internationally. Thus, it’s abun- was supposed to applaud offshore devel- you can ride this out, those of you who dantly clear that OPEC’s influence in opment in certain areas if it was envi- are the named and successful operators the market dominates. ronmentally safe. We’ve tried to do ev- of our energy industry in the United H.R. 2264, as some of my colleagues erything in order to ensure that we States. We encourage you, you are have already mentioned, attempts to have a strong industry, but that we American, you have jobs, you are the break up this cartel and subject these provide for those who are in need. engine of the economy. We’re not your colluders and their anticompetitive This legislation simply gives the At- enemy. We are your supporters, but we practices to the antitrust scrutiny that torney General the authority to find have to work for the consumers. Come they so richly deserve. Specifically, out about an organization. Many of us out in the open. Encourage a round- this bill would amend the Sherman Act have friends that happen to be from table of discussion. Let the CEOs of the to make it illegal for foreign countries these particular nations. We are sup- major companies sit in a roundtable to collude, to restrain output or fix portive of the engagement of these par- discussion and discuss with the Amer- prices of oil, gas or any petroleum ticular nations in the Mideast. We ican people why we have this increas- product. In addition, this bill gives the work with them. We’ve traveled there. ing and burdensome cost of gasoline. Attorney General the authority to en- We encourage engagement on the State Look closely at the legislation that force the antitrust provisions against Department level. We want to be is before us and recognize that it is a these nations. friends, but there has to be a question valuable piece of legislation that gives Importantly, the bill also anticipates of whether or not OPEC provides itself authority just for the thoughtful re- any protected nation defense or immu- insulated against antitrust violations view of how we can do better. nity that OPEC nations may proffer, such that they can gouge or raise I ask my colleagues to support this specifically exempting them from the prices without any recrimination. particular legislation, H.R. 2264, that, Foreign Sovereignty Immunities Act if This is a thoughtful legislative ini- in fact, is an answer to this constant they are engaged in price fixing, which tiative that gives the Attorney General question, what are we going to do they clearly are, or other anticompeti- of the United States the ability to re- about gasoline prices? As Members of tive activities with regard to pricing or view whether or not this entity vio- the United States Congress, it is imper- production or distribution. lates the antitrust laws. ative that we act. We have to do more. This bill is a necessary and appro- You must understand that when the This is a thoughtful piece of legislation priate response to deal with those who oil comes to the United States, even that frames the question whether or are not willing to deal fairly with the though we may be operators in those not a sovereign nation is protected American consumer. I urge my col- foreign countries, some of the named against antitrust violations that im- leagues to support competition and companies that you know, some of the pact negatively on the consumer in the consumers by supporting H.R. 2264. ones that you pull up to the station, United States of America. We have to And I want to again thank Mr. CON- the OPEC sets the prices, and there- do this, and we have to do more. YERS for his leadership in this area. It’s fore, they look at the marketplace to I thank the gentleman from Detroit, far overdue that we pass this act. determine how much money they can from Michigan, the distinguished Mr. CONYERS. Mr. Speaker, I yield get out of a suffering Nation or suf- chairman of the Judiciary Committee, such time as she may consume to the fering world. for yielding to this grounded represent- distinguished Judiciary member from As you well know, one of our trade ative of the energy industry in Hous- Texas (Ms. JACKSON-LEE). deficit partners, China, is consuming ton, Texas, who wants to work collec- Ms. JACKSON-LEE of Texas. Mr. more oil than one might imagine. That tively to get something done for the Speaker, first of all, I want to thank bumps the price up. And who is the vic- people of the United States. Chairman CONYERS for doing some- tim? The hardworking citizens in this Mr. KELLER of Florida. Mr. Speak- thing and looking at this from a per- country, whether they live in Houston, er, I reserve the balance of my time. spective that is thoughtful, that is em- Detroit or New York, or whether they Mr. CONYERS. How much time re- bracing and that recognizes the large- are simply trying to get little ones to mains, Mr. Speaker? ness of this issue. soccer teams, to after-school programs The SPEAKER pro tempore (Mr. Might I just recount for my col- or to their religious institution. No- BERMAN). The gentleman from Michi- leagues that this is a bipartisan bill. body can get anywhere because of the gan has 31⁄2 minutes remaining. Many people have come to the floor of price. Mr. CONYERS. Mr. Speaker, I yield the House or in the Judiciary Com- So I simply, as I draw to a close, 11⁄2 minutes to the gentleman from New mittee, some are on Science, some are want to be able to cite from the report York (Mr. BISHOP). on Energy and Commerce, but all of language of this bill: ‘‘With control of Mr. BISHOP of New York. Mr. Speak- them have faced what I face, being 40 percent of the world’s production, er, I thank the chairman for yielding.

VerDate Aug 31 2005 06:24 Jul 28, 2007 Jkt 059060 PO 00000 Frm 00025 Fmt 7634 Sfmt 0634 J:\CRONLINE\2007BA~3\2007NE~2\H22MY7.REC H22MY7 mmaher on PROD1PC70 with CONG-REC-ONLINE H5560 CONGRESSIONAL RECORD — HOUSE May 22, 2007 I rise in support of H.R. 2264. As I munity protection according to pre- firmed, could not be prosecuted under the drive around eastern Long Island, an vailing legal doctrines, and so what we Sherman Act due to the foreign sovereign area that is heavily dependent on its do in this measure is that we don’t immunity protection it claimed for its mem- ber states. economic stability on travel and tour- start a lawsuit against OPEC. We That decision was wrong. Government- ism, it is all too common to see gas merely authorize for the first time by owned companies that engage in purely busi- prices as high as $3.30 a gallon. I’m re- law the Department of Justice to, when ness activities do not warrant sovereign im- minded of how few influences beyond in their good judgment they choose to munity protection according to prevailing our shores affect our economic pros- be able to do that. legal doctrines. perity as much as the supply of oil. These high prices facilitated by High oil prices, which OPEC facilitates, The disappointment we share after OPEC serve to transfer wealth from serve to transfer wealth from Western con- sumers to petroleum producers. This wealth 1 6 ⁄2 years of failed foreign and energy Western consumers to petroleum pro- transfer funds terrorism through individual policies is matched by our frustration ducers, and I have this on the very con- oil wealth and government-controlled ‘‘non- that price gouging by oil and gas com- servative words of the Heritage Foun- profit’’ foundations. It also permits hundreds panies, as well as collusion among for- dation itself. I will insert this in the of millions of dollars to be spent on radical eign governments to restrict the flow RECORD at this point. Islamist education in madrassahs (Islamic of oil to the United States, continue [From The Heritage Foundation, May 21, religious academies). Furthermore, the oil-cash glut in the Gulf 2007] unchecked. states and elsewhere empowers resistance to As Thomas Friedman has written in TIME FOR CONGRESS TO LIFT OPEC’S much-needed economic reform in oil-pro- the New York Times, we can’t have an IMMUNITY ducing countries. State subsidies for every- effective, forward-looking foreign pol- (By Ariel Cohen) thing from health care to industry to bloated icy toward the Middle East without a This week, the House is likely to pass the bureaucracy continue unabated, funded by serious energy policy to reduce our de- No Oil Producing and Exporting Cartels Act Western consumers. pendence on foreign oil. This bill, of 2007 (NOPEC, H.R. 2264). This bill, spon- Congress Gets Into Action. Growing con- sored by Representatives (D– cerns over energy prices have prompted Con- which empowers the U.S. to legally gress to examine the legal hurdles that pre- challenge foreign collusion resulting in MI) and Steve Chabot (R–OH), would allow the federal government to sue the Organiza- vent the United States from defending its price spikes, is a good first step to- tion for Petroleum Exporting States (OPEC) economic and national security interests. wards that goal. for antitrust violations. Similar legislation In the early part of 2005, a group of sen- One of the first resolutions I intro- (S. 879) is pending in the Senate, sponsored ators led by Senator Mike DeWine (R–OH) in- duced called on the President to de- by Senators Herb Kohl (D–WI) and Arlen troduced the ‘‘No Oil Producing and Export- mand OPEC boost oil production, Spector (R–PA). At a time when oil prices ing Cartels Act’’ (S. 555), known as NOPEC, to amend the Sherman Act to make oil-pro- which was also included in the Demo- are climbing to ever-higher levels, fighting OPEC’s anticompetitive practices would be a ducing and exporting cartels illegal. cratic substitute I was proud to offer to The bill has now returned the Senate cal- welcome first step towards reestablishing the Energy Policy Act of 2005. Despite endar. The House and Senate now have a the free market in this strategically impor- a wave of record gas prices that sum- unique opportunity to: tant sector. This is long overdue and points mer, President Bush and the then-ma- Join forces in defending American busi- the way toward a second step: allowing pri- nesses and consumers. NOPEC would send a jority ignored that call. vate antitrust suits against OPEC. Consequently, the surging price of strong and long-overdue signal to OPEC oil The Intolerable Status Quo. Since its in- barons that they must stop limiting produc- gas continues to hit middle-class fami- ception in 1960, OPEC, which is dominated by tion and investment access. lies hard while we wait for the adminis- Persian Gulf producers, has successfully re- Allow private suits against OPEC. If OPEC tration to produce a foreign and energy stricted its member states’ petroleum pro- is to be reined in, individuals and companies policy that finally shrinks our reliance duction, artificially distorting the world’s that it has damaged must also be allowed to oil supply to line its members’ pockets. on foreign oil and vulnerability to the bring suits against the cartel. As the Inter- Member states’ production quotas are deter- national Association of Machinists (IAM) v. whims of oil cartels. mined at semi-annual meetings of members’ Mr. KELLER of Florida. Mr. Speak- OPEC made clear, Congress must amend the petroleum ministers and are at times Sherman Act to allow these suits. Reform er, I’m prepared to close. changed through telephone consultations. should not begin and with the DeWine-Kohl Let me just say this. Gas prices are Several times, this supply-fixing strategy legislation. at a record high, and Hugo Chavez is has brought devastation to the U.S. and Conclusion. The No Oil Producing and Ex- laughing all the way to the bank. Cod- global economies: porting Cartels Act of 2007 would place much dling and jawboning leaders like Mr. In 1973, OPEC’s actions in response to U.S. needed pressure on OPEC. It is time for the Chavez of Venezuela has not worked. If support for Israel, which was attacked in the cartel to cease its monopolistic practices. Yom Kippur War, resulted in a worldwide Otherwise the American People can expect you are serious about doing something economic recession that lasted from 1974 to about OPEC’s price-fixing misbehavior, more of the same from OPEC—insufficient 1980. production and higher energy bills. then please vote ‘‘yes’’ on NOPEC and In 1980, OPEC’s failure to increase produc- Mr. Speaker, I yield back the balance allow us to bring antitrust lawsuits tion in the face of the Iranian revolution re- against these oil cartel members for sulted in historically high oil prices of $81 of my time. The SPEAKER pro tempore. The collusion, price fixing and other anti- per barrel (in 2005 dollars). question is on the motion offered by competitive activities that continue to In 1990, OPEC refused to increase produc- tion sufficiently to keep prices stable as Sad- the gentleman from Michigan (Mr. gouge American consumers. dam Hussein occupied Kuwait. CONYERS) that the House suspend the Mr. Speaker, I urge my colleagues to Lately, OPEC’s resistance to add produc- rules and pass the bill, H.R. 2264, as vote ‘‘yes’’ on NOPEC. tive capacity has sent oil prices to $70 a bar- Mr. Speaker, I yield back the balance amended. rel, once again endangering economic growth The question was taken. of my time. worldwide. The SPEAKER pro tempore. In the Mr. CONYERS. Mr. Speaker, may I The cartel’s operations ensure that its members’ oil and gas economies remain insu- opinion of the Chair, two-thirds being close with this observation. It was in in the affirmative, the ayes have it. 1978 that the International Association lated from foreign investment flows. Mem- bers of OPEC have not worked to enhance Mr. CONYERS. Mr. Speaker, on that of Machinists and Aerospace Workers the rule of law and property rights and have I demand the yeas and nays. sued OPEC under the Sherman Anti- imposed severe restrictions to prevent for- The yeas and nays were ordered. trust Act, but the case was rejected be- eign investors from owning upstream produc- The SPEAKER pro tempore. Pursu- cause the Court said that OPEC could tion assets (oil fields and pipelines). This is ant to clause 8 of rule XX and the not be prosecuted under the Sherman a testament to the cartel’s de facto monop- Chair’s prior announcement, further Act due to the foreign sovereign immu- oly over the petroleum market. Indeed, the proceedings on this question will be nity protection clause it claimed for only serious challenge to the organization postponed. came in 1978 when a U.S. non-profit labor as- its member states. f I’m here to announce on the floor, as sociation, the International Association of Machinists and Aerospace Workers (IAM), modestly as I can, that that decision FEDERAL HOUSING FINANCE sued OPEC under the Sherman Antitrust REFORM ACT OF 2007 was in error. Government-owned com- Act, in IAM v. OPEC. But the case was re- panies that engage in purely business jected in 1981 by the U.S. Court of Appeals The SPEAKER pro tempore. Pursu- activities do not warrant sovereign im- for the Ninth Circuit. OPEC, the court af- ant to House Resolution 404 and rule

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