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==Environmental and safety record== ==Environmental and safety record==


Koch Industries' subsidiaries are regulated by many local, state and federal agencies around the globe.
⚫ In March 1999, a Koch subsidiary pleaded guilty to charges that it had negligently allowed ] to leak into waters near the Mississippi River from its refinery in Rosemount, Minnesota, and that it had illegally dumped a million gallons of high-] wastewater onto the ground and into the ].<ref>http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/eae2020401d0bf098525689d00713ea5!OpenDocument</ref>


===Environmental awards===
⚫ In January 2000, Koch Industries subsidiary, Koch Pipeline, agreed to a $35 million settlement with the ] and the ]. This settlement, including a $30 million ], was incurred for the firm's multiple oil spills in Texas and five other states going back to 1990.<ref>http://www.safetyonline.com/article.mvc/Koch-Agrees-to-35-million-Settlement-in-Two-E-0001?VNETCOOKIE=NO “Koch Agrees to $35 Million Settlement,” SafetyOnline.com, Jan 17 2000</ref> The oil spills resulted in more than three million gallons of crude oil leaking into ponds, lakes, streams and coastal waters.<ref>http://yosemite.epa.gov/opa/admpress.nsf/016bcfb1deb9fecd85256aca005d74df/981d17e5ab07246f8525686500621079</ref>


In 2005, Koch's Flint Hills Resources refinery was recognized by the EPA's Clean Air Awards program for reducing air emissions by 50 percent while expanding operations.<ref>{{cite news |title=Flint Hills is coming out of murky waters |author=Jessica Harper |newspaper=Dakota County Tribune |date=18 November 2009 |url=http://www.thisweeklive.com/2009/11/18/flint-hills-is-coming-out-of-murky-waters/ }}</ref> Koch Industries' headquarters in Wichita has been certified for meeting the ] standards for superior energy efficiency and environmental protection. {{As of|2010}} it is the only Wichita office building to be so recognized.<ref>{{cite press release |title=Koch Industries Inc., Earns Prestigious Energy Star for Efficiencies at Wichita Complex |url=http://www.kochind.com/newsroom/news_releases_details.aspx?id=994 |publisher=Koch Industries |date=17 June 2008 |accessdate=2010-05-31}}</ref><ref>{{cite web |url=http://www.energystar.gov/index.cfm?fuseaction=labeled_buildings.showMap&SEARCH_OWNER_ID=&S_CODE=KS&PROFILES=&YEAR=&BUILDING_TYPE_ID=700&SEARCH_SPP_ID=&CITY=&ZIP=&SEARCH_PROP_MANAGER_ID=&FILTER_B_ID=# |title=ENERGY STAR Labeled Offices in Kansas |author= |date= |work=energystar.gov |publisher=U.S. Environmental Protection Agency |accessdate=30 May 2010}}</ref> A Tulsa, Oklahoma site of the Koch-owned John Zink Company site was part of the EPA's National Environmental Performance Track program from 2003 until 2009 when the program was suspended.<ref>{{cite web |url=http://kochenergy.com/EHS/processandpollutioncontrol.aspx |title=Process and Pollution Control |author= |date= |work=kochenergy.com |publisher=Koch Industries |accessdate=30 May 2010}}</ref><ref>{{cite web |url=http://www.epa.gov/performancetrack/downloads/PT_ProgRprt_2009_web.pdf |title=Performance Track Final Progress Report |author= |date=May 2009 |work=epa.gov |publisher=U.S. Environmental Protection Agency |accessdate=30 May 2010}}</ref>
In September 2000, the company was charged with covering up the illegal releases of 91 tons of the known ] ] from its refinery in ]. Koch reached a $20 million settlement in exchange for a guilty plea for falsifying documents.<ref>http://www.justice.gov/opa/pr/2000/September/573enrd.htm</ref>


Koch's Matador Ranch in Texas earned the Lone Star Land Steward award for outstanding natural resource management in 2010.<ref>{{cite press release |title=Lone Star Land Steward Awards Winners Announced |url=http://archive.tpwd.state.tx.us/newsmedia/releases/text.phtml?req=20100506 |publisher=Texas Parks & Wildlife |date=6 May 2010 |accessdate=2010-06-14}}</ref> The Montana ranch has earned several environmental stewardship awards, including the EPA Regional Administrator's award. <ref>{{cite press release |title=EPA Honors Koch Ranch for Environmental Excellence; Award is Ranch's Fourth Major Environmental Honor in 1999 |url=http://findarticles.com/p/articles/mi_m0EIN/is_1999_June_7/ai_54811290/ |publisher=Koch Industries |date=7 June 1999 |accessdate=2010-06-14}}</ref>
In 2001, Koch Industries paid $25 million to the ] to settle a federal lawsuit that found the company had improperly taken more oil than it had paid for from federal and Indian land. The suit was initiated by ], one of the Koch brothers, who said that the company engaged in "]", and had made more than $230 million in profit from the stolen oil.<ref>http://www.cbsnews.com/stories/2000/11/27/60II/main252545.shtml CBS News “60 Minutes”, “Blood and Oil: An Environmental Negligence, Nov 27 2000</ref>


===Fines===
In 2009, the U.S. Justice Department and U.S. Environmental Protection Agency announced that Koch Industries' ] subsidiary would pay a $1.7 million penalty and spend $500 million to fix environmental violations at its facilities in seven states.<ref>http://wichita.bizjournals.com/wichita/stories/2009/04/13/daily13.html "Invista to Correct EPA Violations," Wichita Busienss Journal, April 13, 2009</ref><ref>http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/1e9d18f061b4da818525759700632926!OpenDocument US EPA Press Release, April 13, 2009</ref>

⚫ In March 1999, a Koch subsidiary pleaded guilty to charges that it had negligently allowed ] to leak into waters near the Mississippi River from its refinery in Rosemount, Minnesota, and that it had illegally dumped a million gallons of high-] wastewater onto the ground and into the ].<ref>{{cite press release |title=Koch Petroleum Group Sentenced for Minnesota Pollution |url=http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/eae2020401d0bf098525689d00713ea5!OpenDocument |publisher=Environmnetal Protection Agency |date=9 March 2000 |accessdate=2010-06-14}}</ref>

⚫ In January 2000, Koch Industries subsidiary, Koch Pipeline, agreed to a $35 million settlement with the ] and the ]. This settlement, including a $30 million ], was incurred for the firm's multiple oil spills in Texas and five other states going back to 1990.<ref>{{cite news |title=Koch Agrees to $35 Million Settlement in Two Environmental Cases |author= |work=Safety Online |date=17 January 2000 |url=http://www.safetyonline.com/article.mvc/Koch-Agrees-to-35-million-Settlement-in-Two-E-0001?VNETCOOKIE=NO }}</ref> The spills resulted in more than three million gallons of crude oil leaking into ponds, lakes, streams and coastal waters.<ref>{{cite press release |title=Koch Industries to Pay Record Fine for Oil Spills in Six States |url=http://yosemite.epa.gov/opa/admpress.nsf/016bcfb1deb9fecd85256aca005d74df/981d17e5ab07246f8525686500621079 |publisher=Environmnetal Protection Agency |date=13 January 2000 |accessdate=2010-06-14}}</ref>

In 2001, the company reached two settlements with the government. In April, the company reached a $20 million settlement in exchange for admitting to covering up environmental violations at its refinery in ].<ref>{{cite web |url=http://www.justice.gov/opa/pr/2001/April/153enrd.htm |title=Koch Pleads Guilty to Covering up Environmental Violations at Texas Oil Refinery |author= |date=9 April 2001 |work=justice.gov |publisher=U.S. Department of Justice |accessdate=30 May 2010}}</ref><ref>{{cite news |title=DOJ Reduces Indictments Against Koch Industries |author=Don Richards |newspaper=ICIS |date=22 January 2001 |url=http://www.icis.com/Articles/2001/01/22/130888/doj-reduces-indictments-against-koch-industries.html }}</ref> That May, Koch Industries paid $25 million to the federal government to settle a federal lawsuit that found the company had improperly taken more oil than it had paid for from federal and Indian land.<ref>{{cite news |title=Blood and Oil |author=CBS |work=60 Minutes |date=27 November 2000 |url=http://www.cbsnews.com/stories/2000/11/27/60II/main252545.shtml }}</ref><ref>{{cite news |title=Tribe Likely to Get Piece of Settlement in Osage County, Okla., Oil Squabble |author=Russell Ray |newspaper=Tulsa World |date=20 June 2001 |url= }}</ref>

In 2009, Koch subsidiary Invista agreed to pay a $1.7 million civil penalty and spend up to $500 million to correct self-reported environmental violations at its facilities in seven states.<ref>{{cite press release |title=United States Announces Largest Settlement Under Environmental Protection Agency's Audit Policy |url=http://www.justice.gov/opa/pr/2009/April/09-enrd-339.html |publisher=U.S. Department of Justice |date=9 April 2009 |accessdate=2010-05-31}}</ref><ref>{{cite press release |title=United States Announces Largest Settlement Under Environmental Protection Agency's Audit Policy |url=http://yosemite.epa.gov/opa/admpress.nsf/d0cf6618525a9efb85257359003fb69d/1e9d18f061b4da818525759700632926!OpenDocument |publisher=U.S. Environmental Protection Agency |date=13 April 2009 |accessdate=2010-05-31}}</ref>
Prior to the settlement, the company had disclosed to the EPA more than 680 violations after auditing 12 facilities acquired from DuPont in 2004.<ref>{{cite news |title=Invista to correct EPA violations |author=Levi Wolters |newspaper=Wichita Business Journal |date=13 April 2009 |url=http://wichita.bizjournals.com/wichita/stories/2009/04/13/daily13.html }}</ref><ref>{{cite press release |title=Invista, Agencies File Agreement |url=http://www.invista.com/news_releases/2009/pr_april_13_09_release.shtml |publisher=Invista |date=13 April 2009 |accessdate=2010-05-31}}</ref>


==Political activity== ==Political activity==

Revision as of 13:55, 12 July 2010

Koch, Inc.
File:Koch Industries logo.png
Company typePrivate
IndustryConglomerate
Founded1940
HeadquartersWichita, Kansas, USA
Area servedWorldwide
Key peopleCharles G. Koch (Chairman, CEO, & 42% owner)
David H. Koch (Executive VP, & 42% owner)
ProductsPetroleum
Chemicals
Energy
Asphalt
Natural gas
Plastics
Fibers
Minerals
Fertilizers
Ranching
Pulp and paper
Finance
Commodities trading
RevenueIncreaseUS$98 billion (2009)
Number of employees70,000 (2009)
WebsiteKochind.com

Koch Industries, Inc. (pronounced /ˈkoʊk/) is an American private conglomerate based in Wichita, Kansas, with subsidiaries involved in manufacturing, trading and investments. Koch also owns Invista and Georgia-Pacific

Koch companies are involved in core industries such as manufacturing, refining and distribution of petroleum, chemicals, energy, fiber, intermediates and polymers, minerals, fertilizers, pulp and paper, chemical technology equipment, ranching, finance, commodities trading, as well as other ventures and investments. In 2008, Forbes called it the second largest privately held company in the United States (after Cargill) with an annual revenue of about $98 billion. If it were a public company in 2007, it would rank about sixteenth in the Fortune 500.

Fred C. Koch, for whom Koch Industries, Inc. is named, co-founded the company in 1940 and developed an innovative crude oil refining process. His sons, Charles G. Koch, chairman of the board and chief executive officer, and David H. Koch, executive vice president, are principal owners of the company. Charles and David Koch each own 42% of Koch Industries, and Charles has stated that the company will publicly offer shares "literally over my dead body".

Koch Industries with its focus on heavy industry, also is well known for its long-time sponsorship of free-market foundations and causes.

Corporate history

Predecessor companies

In 1925, Fred C. Koch joined an MIT classmate at an engineering firm in Wichita, Kansas, which was renamed the Winkler-Koch Engineering Company. In 1927 he developed a more efficient thermal cracking process for turning crude oil into gasoline. This process threatened the competitive advantage of established oil companies, which sued for patent infringement. Temporarily forced out of business in the United States, Koch turned to other markets, including the Soviet Union, where Winkler-Koch built 15 cracking units between 1929 and 1932. During this time, Koch came to despise communism and Josef Stalin's regime. In his 1960 book, A Business Man Looks at Communism, Koch wrote that he found the Soviet Union to be "a land of hunger, misery, and terror." According to Charles Koch, "Virtually every engineer he worked with was purged."

In 1940, Koch joined new partners to create a new firm, the Wood River Oil and Refining Company, which is today known as Koch Industries. In 1946 the firm acquired the Rock Island refinery and crude oil gathering system near Duncan, Oklahoma. Wood River was later renamed the Rock Island Oil & Refining Company. Charles Koch joined Rock Island in 1961, having started his career at the management consulting firm Arthur D. Little. He became president in 1966 and chairman at age 32, upon his father's death the following year.

Koch Industries

The company was renamed Koch Industries in honor of Fred Koch, the year after his death. At that time, it was primarily an engineering firm with part interest in a Minnesota refinery, a crude oil-gathering system in Oklahoma, and some cattle ranches. In 1968 and 1969, Charles tried to buy Union Oil's share of the Great Northern Oil Company and its Pine Bend Refinery, but Union Oil was unwilling to sell. When J. Howard Marshall II threw his lot in with Koch, they together acquired a majority interest in the company. Ownership of Pine Bend refinery led to several new businesses and capabilities, including chemicals, fibers, polymers, asphalt and other commodities such as petroleum coke and sulfur. These were followed by global commodity trading, gas liquids processing, real estate, pulp and paper, risk management and finance.

In 1970, Charles was joined at the family firm by his brother David Koch. Having started as a technical services manager, David became president of Koch Engineering in 1979.

Environmental and safety record

Koch Industries' subsidiaries are regulated by many local, state and federal agencies around the globe.

Environmental awards

In 2005, Koch's Flint Hills Resources refinery was recognized by the EPA's Clean Air Awards program for reducing air emissions by 50 percent while expanding operations. Koch Industries' headquarters in Wichita has been certified for meeting the Energy Star standards for superior energy efficiency and environmental protection. As of 2010 it is the only Wichita office building to be so recognized. A Tulsa, Oklahoma site of the Koch-owned John Zink Company site was part of the EPA's National Environmental Performance Track program from 2003 until 2009 when the program was suspended.

Koch's Matador Ranch in Texas earned the Lone Star Land Steward award for outstanding natural resource management in 2010. The Montana ranch has earned several environmental stewardship awards, including the EPA Regional Administrator's award.

Fines

In March 1999, a Koch subsidiary pleaded guilty to charges that it had negligently allowed aviation fuel to leak into waters near the Mississippi River from its refinery in Rosemount, Minnesota, and that it had illegally dumped a million gallons of high-ammonia wastewater onto the ground and into the Mississippi River.

In January 2000, Koch Industries subsidiary, Koch Pipeline, agreed to a $35 million settlement with the U.S. Justice Department and the State of Texas. This settlement, including a $30 million civil fine, was incurred for the firm's multiple oil spills in Texas and five other states going back to 1990. The spills resulted in more than three million gallons of crude oil leaking into ponds, lakes, streams and coastal waters.

In 2001, the company reached two settlements with the government. In April, the company reached a $20 million settlement in exchange for admitting to covering up environmental violations at its refinery in Corpus Christi, Texas. That May, Koch Industries paid $25 million to the federal government to settle a federal lawsuit that found the company had improperly taken more oil than it had paid for from federal and Indian land.

In 2009, Koch subsidiary Invista agreed to pay a $1.7 million civil penalty and spend up to $500 million to correct self-reported environmental violations at its facilities in seven states. Prior to the settlement, the company had disclosed to the EPA more than 680 violations after auditing 12 facilities acquired from DuPont in 2004.

Political activity

The Koch brothers operate the Koch Family Foundations, a major source of funding for libertarian and sometimes conservative political causes in the United States, including think tanks such as the Cato Institute.

From 2005 to 2008, Koch industries donated $5.7 million on political campaigns and $37 million on direct lobbying to support fossil fuel industries. Between 1997 and 2008, Koch Industries donated a total of nearly $48 million to climate opposition groups. According to Greenpeace, Koch Industries is the major source of funds of what they call "climate denial". Koch Industries and its subsidiaries spent more than $20 million on lobbying in 2008 and $5.6 million in 2009, according to the Center for Responsive Politics, a nonpartisan research group.

Koch Industries founded Americans for Prosperity, formed as a successor to Citizens for a Sound Economy. Fred Koch co-founded the John Birch Society, though neither of his sons is a member or supporter of the organization. His sons, Charles and David, did not follow in their father's arch-conservative views but instead converted to libertarianism under the influence of Robert LeFevre. In the mid-1970s the Kochs started to fund a network of libertarian organizations including the United States Libertarian Party, for which David ran as the vice presidential nominee in 1980. The Kochs withdrew their financial support of the Libertarian Party after an acrimonious 1983 convention, but continue to support libertarian institutions independent of the party such as the Cato Institute, and in more recent years some groups with an orientation toward the Republican Party.

Rich Fink, a Koch executive vice president, is a member of the board of directors of Americans for Prosperity. Previously he served as president of Citizens for a Sound Economy. Rich Fink also founded the Mercatus Center.

References

  1. ^
  2. http://www.kochind.com/IndustryAreas/default.asp
  3. ^ Fisher, Daniel (Mar. 13, 2006). "Mr. Big", pp. 24–26. Forbes. Online summary for calendar year 2005 at .
  4. Forbes - America's Largest Private Companies
  5. http://www.forbes.com/2009/10/28/largest-private-companies-business-private-companies-09_land.html Forbes rankings for 2009
  6. "The Principled Entrepreneur". The American. July–August 2007. Retrieved 23 February 2010.{{cite news}}: CS1 maint: date format (link)
  7. "Summary of Koch Industries History". sec.gov. U.S. Securities and Exchange Commission. 14 November 2005. Retrieved 18 February 2010.
  8. "Advancing Market-Based Public Policy". kochind.com. Koch Industries. Retrieved 18 February 2010.
  9. ^ Koch, Charles C. (2007). The Science of Success: How Market-Based Management Built the World's Largest Private Company. John Wiley & Sons, Inc. p. 6. ISBN 978-0-470-13988-2. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
  10. ^ Daniel Fisher (13 March 2006). "Mr. Big". Forbes.
  11. Koch, Fred C. (1960). A Business Man Looks at Communism. Wichita, Kansas. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)CS1 maint: location missing publisher (link)
  12. ^ J. Howard, Marshall II (1994). Done in Oil: An Autobiography. College Station: Texas A&M University Press. ISBN 0890965331. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
  13. Bruce Upbin; Brandon Copple (14 December 1998). "Creative destruction 101". Forbes.
  14. "Summary of Koch Industries History". sec.gov. U.S. Securities and Exchange Commission. 14 November 2005. Retrieved 18 February 2010.
  15. John, Lincoln (1989). Rich Grass and Sweet Water. College Station: Texas A&M University Press. ISBN 0-89096-387-8.
  16. Jessica Harper (18 November 2009). "Flint Hills is coming out of murky waters". Dakota County Tribune.
  17. "Koch Industries Inc., Earns Prestigious Energy Star for Efficiencies at Wichita Complex" (Press release). Koch Industries. 17 June 2008. Retrieved 2010-05-31.
  18. "ENERGY STAR Labeled Offices in Kansas". energystar.gov. U.S. Environmental Protection Agency. Retrieved 30 May 2010.
  19. "Process and Pollution Control". kochenergy.com. Koch Industries. Retrieved 30 May 2010.
  20. "Performance Track Final Progress Report" (PDF). epa.gov. U.S. Environmental Protection Agency. May 2009. Retrieved 30 May 2010.
  21. "Lone Star Land Steward Awards Winners Announced" (Press release). Texas Parks & Wildlife. 6 May 2010. Retrieved 2010-06-14.
  22. "EPA Honors Koch Ranch for Environmental Excellence; Award is Ranch's Fourth Major Environmental Honor in 1999" (Press release). Koch Industries. 7 June 1999. Retrieved 2010-06-14.
  23. "Koch Petroleum Group Sentenced for Minnesota Pollution" (Press release). Environmnetal Protection Agency. 9 March 2000. Retrieved 2010-06-14.
  24. "Koch Agrees to $35 Million Settlement in Two Environmental Cases". Safety Online. 17 January 2000.
  25. "Koch Industries to Pay Record Fine for Oil Spills in Six States" (Press release). Environmnetal Protection Agency. 13 January 2000. Retrieved 2010-06-14.
  26. "Koch Pleads Guilty to Covering up Environmental Violations at Texas Oil Refinery". justice.gov. U.S. Department of Justice. 9 April 2001. Retrieved 30 May 2010.
  27. Don Richards (22 January 2001). "DOJ Reduces Indictments Against Koch Industries". ICIS.
  28. CBS (27 November 2000). "Blood and Oil". 60 Minutes.
  29. Russell Ray (20 June 2001). "Tribe Likely to Get Piece of Settlement in Osage County, Okla., Oil Squabble". Tulsa World.
  30. "United States Announces Largest Settlement Under Environmental Protection Agency's Audit Policy" (Press release). U.S. Department of Justice. 9 April 2009. Retrieved 2010-05-31.
  31. "United States Announces Largest Settlement Under Environmental Protection Agency's Audit Policy" (Press release). U.S. Environmental Protection Agency. 13 April 2009. Retrieved 2010-05-31.
  32. Levi Wolters (13 April 2009). "Invista to correct EPA violations". Wichita Business Journal.
  33. "Invista, Agencies File Agreement" (Press release). Invista. 13 April 2009. Retrieved 2010-05-31.
  34. http://www.guardian.co.uk/environment/2010/mar/30/us-oil-donated-millions-climate-sceptics
  35. "Secretly Funding the Climate Denial Machine". Global Warming. Washington: Greenpeace. 2010-03-29. Retrieved 2010-04-01.
  36. DeMelle, Brendan (2010-03-30). "Greenpeace Unmasks Koch Industries' Funding of Climate Denial Industry". Los Angeles: Huffington Post.
  37. Grandia, Kevin (2009-07-30). "Koch Industries Funding Anti-Climate Agenda". DeSmogBlog. Hoggan & Associates. Retrieved 2010-03-30.
  38. http://www.opensecrets.org/lobby/clientsum.php?year=2008&lname=Koch+Industries&id= Center For Responsive Politics, www.opensecrets.org
  39. http://www.opensecrets.org/lobby/clientsum.php?year=2009&lname=Koch+Industries&id= Center For Responsive Politics, www.opensecrets.org
  40. Paul, Mark. "Seducing the Left: The Third Party That Wants YOU". Mother Jones, May 1980.
  41. Doherty, Brian. Radicals for Capitalism: A Freewheeling History of the Modern American Libertarian Movement, pp. 316, 407-410. PublicAffairs, 2007.
  42. Doherty, p. 421

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