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Senators Seek “Thorough and Independent Investigation” of Judge’s Refusal to Recuse Himself in Drilling Moratorium Case

Washington, D.C. – As questions continue to be raised about
the ruling to overturn the Administration’s six-month moratorium on deepwater
drilling in the Gulf of Mexico, six U.S. senators asked Senate Judiciary
Committee Chairman Senator Patrick Leahy (D-Vt.) to investigate U.S. District
Court Judge Martin Feldman’s failure to recuse himself from the case despite
his financial interests in companies affected by the spill. The senators, led
by Senator Ron Wyden (D-Ore.), are asking for assurance that the judge’s
financial investments did not influence his decision, a finding that could have
implications on future cases regarding the BP oil spill. U.S. Senators Byron
Dorgan (D-N.D.), Jeanne Shaheen (D-N.H.), Patty Murray (D-Wash.), Russ Feingold
(D-Wisc.) and Jeff Merkley (D-Ore.) cosigned Wyden’s letter to Chairman Leahy.

Judge
Feldman also sold his stock in Exxon Mobil just hours before ruling on the
moratorium, an action that seems to indicate he recognized the potential
conflicts his financial holdings posed – yet he still did not step away from
this case…,” wrote the senators. “While the toll of devastation on the Gulf’s
wildlife, communities and businesses has yet to be calculated, the country
cannot afford to allow the validity of any court rulings to be cast in doubt
because of the personal financial interests of judges involved in legal
proceedings related to this disaster. Only a thorough and independent
investigation by the committee could guarantee that outcome.

The
senators’ letter follows reports by the Associated Press that 37 of 64 senior
judges in Gulf Coast districts have links to energy companies or holdings in
energy stocks, including in companies directly involved in the oil spill.

The text
of today’s letter
follows:

July 15,
2010

The Honorable Patrick J. Leahy
Chairman
U.S. Senate Committee on the Judiciary
224 Dirksen Senate Office Building
Washington, DC 20510 

Dear
Chairman Leahy:

As the
crisis caused by the explosion of the Deepwater Horizon oil rig in the Gulf of Mexico
continues to spread, we are concerned about potential conflicts of interest
among the judges who will oversee the many cases that will determine the legal
and financial responsibilities of energy companies doing business in the
Gulf.  In particular, we are concerned by reports that the judge who issued a preliminary injunction vacating the Interior Department’s six
month moratorium on deep-water drilling, Martin Feldman, holds a number of
stocks in energy companies that would be affected by the moratorium.

Judge
Feldman, a U.S. District Court Judge for the Eastern District of Louisiana,
showed a high level of support for offshore drilling in his decision,
suggesting that oil and gas drilling was “simply elemental” to Gulf
communities.  We are concerned, however, that his ruling may have been
influenced by his extensive stock holdings in energy and oil companies that
would be financially impacted by the moratorium.  Judge Feldman also sold
his stock in Exxon Mobil just hours before ruling on the moratorium, an action
that seems to indicate he recognized the potential conflicts his financial
holdings posed – yet he still did not step away from this case.   We
are troubled by the fact that he was trading shares of a company the same day
that he was ruling on an issue that might affect the value of those
shares.  Given this apparent financial conflict of interest, we are very
interested in understanding why Judge Feldman did not recuse himself in this
case, and are hopeful that the committee will investigate whether or not he
should have.  We do not bring up this potential impropriety lightly, but
given the gravity of the situation and the evidence available, we believe that
this specific case merits investigation by the committee.  

Unfortunately,
this is not the only case of judicial conflict of interest with energy
companies.  The Associated Press reported on June 6:

“Thirty-seven of the 64 active or senior judges in key
Gulf Coast districts in Louisiana, Texas, Alabama, Mississippi and Florida have
links to oil, gas and related energy industries, including some who own stocks
or bonds in BP PLC, Halliburton or Transocean — and others who regularly list
receiving royalties from oil and gas production wells, according to the reports
judges must file each year.”

We
believe that the Judiciary Committee should address this widespread potential
conflict of interest before further important rulings are made that will impact
the response to the crisis in the Gulf of Mexico.  Judges who derive
income from companies that benefit from offshore drilling should not decide
cases that will affect the future of offshore drilling.  We urge you to
investigate both whether Judge Feldman should have recused himself in the
moratorium case as well as the implications of the larger question of judicial
conflicts of interest in cases involving the legal issues raised by the Gulf
oil spill.   While the toll of devastation on the Gulf’s wildlife,
communities and businesses has yet to be calculated, the country cannot afford
to allow the validity of any court rulings to be cast in doubt because of the
personal financial interests of judges involved in legal proceedings related to
this disaster.  Only a thorough and independent investigation by the
committee could guarantee that outcome.

We look
forward to working with you to find solutions to these issues.

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