Several people in Washington, DC, believe the oil and gas industry should pay more taxes and royalties. In one case, however, the industry may have trouble simply giving its money away.
As first reported Nov. 3 in the Washington Post, two regents at the Smithsonian Institution have questioned whether it would be appropriate for the national museum to accept $5 million the American Petroleum Institute has offered to become a major underwriter of the Ocean Initiative.
The program would include a $49 million Ocean Hall in the Museum of American History and a web site devoted to marine research.
Roger W. Sant, a cofounder of AES Corp. and a former chairman of the World Wildlife Fund, raised the point at a Sept. 17 regents meeting and was joined by another regent, US Sen. Patrick J. Leahey (D-Vt.). They objected to the donation and requested more information, which was delivered in time for a conference call on Oct. 15.
At that time, the Post article continued, US Supreme Court Chief Justice John G. Roberts, who also is the Smithsonian’s chancellor and presides at regents meetings, requested a motion on the donation. When he did not receive one, the matter was tabled until the next meeting on Nov. 19.
$10 million donor
A Smithsonian spokeswoman verified the information. She told me that Sant, who is chairman of the natural history museum, and his wife have donated $10 million to the Ocean Initiative and that Sant has recused himself from the Nov. 19 regents’ vote.
“The oil and natural gas industry has unparalleled experience working in the world’s oceans, and we are looking forward to becoming a partner with the Smithsonian in this worthwhile project. The gift is offered in the spirit of encouraging education,” API spokeswoman Karen Matusik said.
There’s at least one irony in all this. AES, Sant’s former company, has constructed several major electric power projects overseas but currently faces opposition to LNG terminals it wants to build near Baltimore and in New England. It’s also a member of API.
Active in projects
Sant, online sources show, has been interested in the ocean environment for some time. The Summit Foundation, which he founded in 1991 and continues to chair, works in reef preservation and other projects.
The Post article indicated that while he thinks oil and gas industry support may not be appropriate in this case, it would be worthwhile in other Smithsonian programs. It also suggested that his concern may arise more from oil tanker spills than from offshore exploration and production.
Coincidentally, 2 weeks after the Smithsonian regents delayed their vote, the US Supreme Court, which Roberts heads, agreed to hear ExxonMobil Corp.’s appeal of the $2.5 billion punitive damages award stemming from the 1989 grounding of the tanker Exxon Valdez and subsequent spill in Alaska’s Prince William Sound.