Anchorage (Platts)--26Sep2007

A federal jury in Alaska found an ex-state legislator guilty on three
counts of bribery and corruption Tuesday in a case involving illegal influence
on oil tax legislation by senior executives of Veco Corp., a major oil
services company in the state. 

     Pete Kott, a former speaker of the Alaska House of Representatives, is to
be sentenced December 7. Two other former legislators are to be tried later
this fall. 

     Former Veco CEO Bill Allen and Rick Smith, formerly the company's public
affairs vice president, pleaded guilty this summer to bribery and corruption
charges. The two testified for the government against Kott in the trial.

     Several investigations of Alaska politicians continue in connection with
the activities of Allen and Smith. Longtime Alaska US Senator Ted Stevens and
his son, Ben, a former president of the state Senate, are part of the
investigations.

     Alaska Governor Sarah Palin said she was "shocked" by some of the
revelations that came out in the trial. "I can understand why many Alaskans
feel betrayed," Palin said in a statement. "But I am confident that this
conviction is also a step forward to restoring the public's trust."

     The legislation Allen tried to influence involved changes in the state
oil and gas production tax enacted by the state legislature in 2006. Palin has
called the legislature into special session October 18 to review the tax,
partly because she felt the 2006 vote was tainted by corruption.

		--Tim Bradner, newsdesk@platts.com