The ongoing saga of Koch Industries

October 1, 2014

No surprise that the Koch Brothers and Koch Industries have gone on the defensive following the publication of Tim Dickinson’s lead story in the September 24 issue of Rolling Stone (“Inside the Koch Brothers’ Toxic Empire”).

The full text of the original article, the response, and various links to source documents is located here:

http://www.rollingstone.com/politics/news/koch-industries-responds-to-rolling-stone-and-we-answer-back-20140929

Below is an excerpt from the Koch Industries response related to the original article:
10. North Pole refinery shutdown. Response:

“In February 2014, Flint Hills Resources (FHR) made the difficult decision to shut down its refining operations and convert its North Pole, Alaska refinery to a terminal. While some employees unfortunately were laid off, FHR retained approximately 40 employees at the site and offered to find the other employees roles in other Koch companies. This resulted in several of the former FHR Alaska employees receiving job opportunities at other Koch facilities in the US. Federal, state and local authorities acknowledged the regulatory and competitive issues that drove FHR’s difficult decision. For example, Senator Begich recognized the “competitive challenges” facing FHR in a letter to Alaska Governor Parnell. Senator Begich later noted the issues concerning the environmental contamination that existed long before FHR’s ownership and the appropriate regulatory standards concerning the remediation also needed to be resolved in order to encourage another owner to operate the refinery. The City of North Pole likewise expressed its frustration concerning the competitive and regulatory challenges that drove FHR’s decision.
There is no question that the off-site contamination existed long before FHR bought the refinery in 2004 – contamination that was not disclosed to FHR by the prior owner. No one had done anything about the situation until FHR discovered it and quickly and voluntarily began providing alternative water to the community. During the time since it discovered the issues, FHR has tried to work cooperatively with the state of Alaska and the prior owner to remediate these issues, while ensuring our neighbors were not adversely affected. As part of this process, FHR raised an administrative challenge to the cleanup level set by ADEC personnel. The Commissioner of ADEC agreed with FHR that the agency had not adequately supported the cleanup level and the agency is now studying the matter further. FHR remains committed to doing the right thing, while also ensuring that the prior owner lives up to its contractual obligations to FHR and its obligations to the community.”


No one could effectively deny that the Kochs – and their legal and PR teams – possess great imaginations, and are blessed with amazing creativity. It’s almost as though Lewis Carroll has returned to write more poems for us to ponder!

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