Anchorage (Platts)--7May2007

The chief executive of an Alaska-based oil service company pleaded guilty
to federal charges of paying bribes to state legislators in a federal court in
Anchorage Monday.

     Bill Allen, chief executive of Veco Corp., pleaded guilty to two felony
counts of conspiracy and one felony count of bribery. The charges were in
connection with Allen's efforts to influence state oil and gas tax legislation
in 2006. One state legislator and two former legislators were arrested by the
Federal Bureau of Investigation in Juneau on Friday, and charged with
improperly receiving payments or offers of employment with Veco in connection
with votes on the legislation.

     Veco provides maintenance support and construction services to North
Slope producers and is also active on many overseas projects, including in
Russia. Veco is also one of Alaska's largest employers.

     A second Veco executive, public affairs Vice President Rick Smith, is
also expected to make a plea on charges similar to those facing Allen.

     US District Court Judge John Sedwick said Allen has been cooperating with
the government in the case and the government may ask for a lesser sentence
based on the cooperation. Sedwick also said Allen can be released on a $10,000
bond.

     The legislation involved was the Legislature's consideration in 2006 of a
new state oil and gas production tax, the Petroleum Profits Tax. The new tax
was approved by the Legislature and its now in effect.

		--Tim Bradner, newsdesk@platts.com