Questioned pact threatens merger, ONEOK chief says
Thursday, Oct. 14, 1999 | 11:45 a.m.
ONEOK Inc. fired a volley at the Oklahoma Corporation Commission Wednesday, saying that a "constant stream of rumors, false allegations and innuendo" regarding a 1993 gas purchase contract is jeopardizing its plans to merge with Southwest Gas Corp.
"These stories have grown so outrageous and so ugly and so untruthful that they must be challenged," said ONEOK Chairman and CEO Larry Brummett. "For the sake of the decent men and women who work for our company, for those who believe in our future and invest with us, and for the sake of the business climate in the state we're proud to call home, the myth must die."
ONEOK issued a new release referring to the renewed attention being devoted to a 1993 gas purchase contract between a ONEOK subsidiary and Dynamic Energy Resources, a Tulsa, Okla.-based company owned by Democratic fundraisers Eugene and Nora Lum. The Lums later pleaded guilty to campaign finance violations.
The contract awarded to Dynamic was contingent on Dynamic's purchase of Gage Corp., a company that had been pursuing a lawsuit against ONEOK, and the dropping of this lawsuit.
"Unsupported allegations charge the Lums were merely acting as a straw buyer for (ONEOK), providing (ONEOK) a way to eliminate the lawsuit without admitting responsibility," a 1993 FBI report stated. The report is in a file maintained by OCC Chairman Bob Anthony.
The Arizona Corporation Commission has requested all documents relating to the Dynamic contract. Arizona regulators must approve the merger between Southwest and ONEOK. In 1996, an investigation by the OCC's staff found no evidence of wrongdoing.
"It is no secret that (the Southwest) merger -- a $1.8 billion transaction -- may be jeopardized by the continuing campaign to distort the Dynamic contract," Brummett said Wednesday. "It is my hope that this Commission will do everything within its authority to bring resolution to these unfounded accusations, and bring this shameful campaign to an end."
Brummett also issued a thinly veiled warning that continued talk about the Dynamic contract could eventually spell the end of an independent ONEOK.
"We can't continue to grow if this campaign of deceit is allowed to succeed," Brummett said. "We can't guarantee this will always be an Oklahoma company that provides jobs and millions of dollars for the economy of this state. This is not intended in any way as a threat: it is simply the harsh reality."
ONEOK spokesman Don Sherry clarified Brummett's statement, saying that if ONEOK could not grow through acquisition, "that could threaten the future viability of ONEOK" and force it to merge with an out-of-state company.
archive
- Most Read
- Discussed
- Most E-mailed
- Hearing set for ex-NBA star with $822,500 gambling debt
- Trial delayed for man accused of shooting 3 officers
- Kruger hoping his team will play with grit
- Ten minutes with Chelsea Handler is better than no minutes with Chelsea Handler
- Pricing out wagers on the Pacquiao-Cotto fight
- RTC bus driver fired, arrested after allegedly attacking woman
- Two second-graders involved in shooting at bus stop
- CityCenter Realtors hit with cut in commissions
- Privé owner files for bankruptcy protection in Florida
- Shanghai’s maglev: Flying with both feet on the ground
Blogs
The Greene Room
Predicting this weekend's Mountain West football slate
Top Chef: Las Vegas
Top Chef Episode 11: Child's play
Miech Again
UNLV prez Smatresk is ready for some basketball (5 Comments)
Politics: The Early Line
Harry Reid's fourth TV ad begins running today
The Greene Room
Chad Ochocinco vs. Anderson Silva? That would be a sight ... (4 Comments)
Top Chef: Las Vegas
The Jet Stream: The three stages of chefdom
Miech Again
Rebels rookie Lopez says redshirting is his best move (12 Comments)
Calendar »
- 14 Sat
- 15 Sun
- 16 Mon
- 17 Tue
- 18 Wed
-
Pacquiao vs. Cotto at the MGM Grand Garden Arena
MGM Grand Garden Arena | 6 p.m. to 11 p.m.
-
Friends of India Diwali Celebration at Cashman Field with Dan Nainan
Cashman Field | 7:30 p.m. to 10 p.m.
-
Norm MacDonald at the House of Blues
House of Blues
-
Boulder City Art Guild Winter Fest Fine Art Show
Boulder City Parks & Recreation
-
John Fogerty at the Star of the Desert Arena
Star of the Desert Arena | 8 p.m. to 11 p.m.
-
Emeril Lagasse Foundation’s 5th annual Carnivale du Vin
The Venetian Resort Hotel Casino | 6 p.m. to 10 p.m.
The Sun
Locally owned and independent for more than 50 years.
Technorati








