Environment, Governor Roy Cooper, Legislature

Private firm to investigate Gov. Cooper’s Atlantic Coast Pipeline deal: “We have no political agenda”

A private firm formed by three former federal agents will investigate Gov. Roy Cooper’s controversial memorandum of understanding with Dominion Energy over the Atlantic Coast Pipeline.

At a subcommittee meeting today, lawmakers announced they had hired Eagle Intel, based in Wilmington, to conduct the investigation. The firm, composed of Frank Brostrom, Tom Beers and Kevin Greene, incorporated last year. Brostrom worked for the FBI, and Beers and Greene for the Internal Revenue Service. Their areas of expertise focused on tax evasion and financial and political corruption, as well as organized crime and terrorism cases.

This is not a criminal probe, but a civil one, prompted by legislative oversight, said Sen. Harry Brown, a Republican from Onslow County.

The firm charges $100 an hour for its services, but until the investigation is under way, it’s unknown what the final cost will be.

Under the non-binding MOU signed by Cooper and Dominion nearly a year ago, the Virginia-based utility and Duke Energy, co-owners of ACP, LLC, would pay $57.8 million for economic development and renewable energy projects along the 160-mile route through eastern North Carolina. The announcement of the MOU coincided by just hours with the Department of Environmental Quality’s granting of a key water quality permit for the project.

Republican lawmakers then introduced and passed House Bill 90, which funneled the money away from its original purpose and toward public schools in the affected counties. However, no money has been disbursed yet. The Federal Energy Regulatory Commission has not issued its final construction permits for part of the route in North Carolina, which would trigger half of the amount to be due.

The other half of the money would be payable when the ACP is completed. That could take years. Last week, a federal appeals court halted all construction on the 600-mile pipeline over US Fish and Wildlife’s questionable assessment of the project’s potential damage to endangered species.

DEQ and the governor’s office have denied working in tandem on the timing of the permit and the MOU. But Republican lawmakers want Eagle Intel to determine if the MOU involved “pay-to-play” — that the voluntary monetary contribution smoothed the way for the water quality permit.

Lawmakers, led by a Republican majoriy, informally requested documents from the governor’s office and DEQ about the MOU, but never received them, despite multiple inquiries. They filed a formal public records request last month. (Environmental advocates and the media, including Policy Watch, likewise filed records requests from the governor and received no documents of significance; the requests have yet to be completely fulfilled.)

Sen. Floyd McKissick, a Durham Democrat on the panel that hired Eagle Intel, said the governor’s office and DEQ are expected to provide documents by Dec. 20. “I think it’s premature to investigate,” McKissick said.

But the governor’s office, as if to say, “touche’,” filed its own records request with lawmakers. In a document dated today, Dec. 12, Kristi Jones, the governor’s chief of staff, formally asked for voluminous information that could reveal whether Republican lawmakers’ concerns are legitimate or merely a power play. Among the governor’s request is communications among legislators, staff and any third parties, including the state Republican Party, executive director Dallas Woodhouse and chairman Robin Hayes.

The agents, who were present at today’s subcommittee meeting, emphasized that they have “no political agenda, no dog in the fight.”

“We will follow where the facts lead us,” Brostrom said.

According to voter registration records, Brostrom and Greene are registered Republicans; Beers is unaffiliated.

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