JUNEAU - The four Veco Corp. executives named in an FBI warrant used to raid six Alaska legislators' offices have long been top Republican donors, but the money really started rolling in when natural gas pipeline talks heated up.
Combined, Chief Executive Bill Allen, President Peter Leathard, Executive Vice President Roger Chan and Vice President Rick Smith have given more than $570,000 to state candidates over the past decade, according to the Institute on Money in State Politics.
The four have also contributed more than $384,000 to presidential and congressional races in Alaska and other states since 1997, according to the Federal Election Commission.
Since Gov. Frank Murkowski and the state's three largest oil producers began negotiations to build a $25 billion natural gas pipeline to Canada about two years ago, the four executives have bumped up the giving.
The four have spent $231,273 on state candidates in 2004 and through this year's primary elections.
This year alone, the executives have spent $84,800 on individual legislative races, all to Republican incumbents, challengers or the state's Republican Party.
Aside from cash contributions, Senate President Ben Stevens, R-Anchorage, has received $252,000 since 2001 for consulting work from the company, according to disclosure statements filed with the Alaska Public Offices Committee. Little is known about what Stevens did for that money, as he is not required to report details of the work.
One of the 20 warrants executed in raids last week across Alaska gave federal agents the authority to seize any documents, letters, records, electronic mail or any other form of communication with Veco, Allen, Smith, Leathard and Chan. The warrant calls for seizing proof of payments, contracts, employment, gifts or fundraisers by the executives to the legislators.
The warrant specifically looks for "any and all documents concerning, reflecting or relating to proposed legislation in the state of Alaska involving either the creation of a natural gas pipeline or the petroleum production tax."
The Legislature passed the petroleum production tax last month, a major rewrite of the state's oil tax laws that will base production taxes on the net profits of each oil company's Alaska operations.
Offices raided in Juneau, Anchorage and the Matanuska-Susitna Borough included those of Stevens; Sen. John Cowdery, R-Anchorage; Rep. Pete Kott, R-Eagle River; Rep. Vic Kohring, R-Wasilla; Rep Bruce Weyhrauch, R-Juneau; and Sen. Donald Olson, D-Nome.
Little is known about the purpose of the investigation. But the raids, which may be the first in state history, have soured plans for a special session Murkowski wanted to call for Sept. 19 to again consider his pipeline deal with BP PLC, ConocoPhillips and Exxon Mobil Corp.
Murkowski spokesman John Manly said the governor's staff is still discussing the possibilities for a session with legislators.
"We haven't given up completely. Strike that, we haven't given up," Manly said.
The ripple effect of the FBI investigation also is starting to be felt outside Alaska. The campaign of Republican Senate hopeful Mike McGavick in Washington state said Tuesday he returned $14,000 in contributions from VECO executives.
Former Gov. Tony Knowles, who is the Democratic nominee again this year, is one of the few Democrats who has received contributions from VECO, and only when he was running for re-election in 1998. Knowles received $10,975 from company executives that year, according to his campaign. His running mate, House Minority Leader Ethan Berkowitz, received $8,000 from Veco officials in 2000.
Neither plans to return the money from those past campaigns, spokeswoman Patty Ginsburg said.
Knowles made the FBI investigation of Veco a focus of a five-point ethics plan he described Tuesday.
"I think the figures show that they were a dominant influence in numerous elections of legislators and generously gave to statewide elected officials," Knowles said of Veco.
He said it is important for more Alaskans to donate money to campaigns or else "the proportionality of that assistance gets way out of kilter."
"The only ones truly affecting a campaign are the privileged few," Knowles said.
The Republican nominee, Sarah Palin, did not immediately return a call for comment Tuesday.
Amy Menard, an Anchorage attorney representing the company, said some Veco employees have a strong interest in politics, which is their right.
"Veco has always worked hard to promote a pro-business and pro-economic development climate in those places where it does business," she said.
Menard added the company is now in a "very intense fact-gathering process" and does not have enough information to elaborate on questions of the executives' political ties.
Allen, Leathard and Chan themselves elaborated on their political interests in an October 2004 newsletter to Veco employees. The three co-authored an article in which they called that election critical to the company's future.
Alaska represents more than 50 percent of the company's business volume worldwide and an even higher percentage of its net income, they wrote.
"The right people in the White House, the U.S. Capitol and the Alaska State Legislature make a huge impact on oil and gas resource development and on the economy of Alaska," they wrote.
Earlier that year, in March, Allen wrote a separate article setting the stage for the elections. He placed at the top of the Alaska agenda opening the Arctic National Wildlife Refuge, oil taxes and the gas pipeline.
The major Democratic presidential candidates, he wrote at the time, are backed by environmental groups and are firmly against drilling in ANWR, and for the pipeline, "they have so far done nothing to move that project ahead."
"Closer to home, the Democratic minority in the Alaska Legislature is calling for a review of taxes paid by the major producers, repeating the statements of past years that the state deserves a bigger share of the pie," Allen wrote.
