Lawmaker drops energy regulation bill amid conflict concerns

INDIANAPOLIS (AP) - The chairman of Indiana's House Energy Committee on Wednesday dropped legislation barring local governments from regulating gas and oil drilling amid concerns that his personal investments in the industry posed a conflict of interest.

Rep. Eric Koch, R-Bedford, asked House Natural Resources Chairman Sean Eberhart to let the bill die in committee, The Indianapolis Star reported (http://indy.st/1y6RWfs ). A spokeswoman for Koch said the bill had become a "distraction."

Koch's decision came after the newspaper reported that he has membership in at least 28 oil and gas companies, some with operations in Indiana. He had contended that any personal financial benefits from the legislation would be "very indirect, unsubstantial and not unique."

That's a play on wording found in an ethics bill approved Tuesday by the House Ethics Committee. The legislation, which now goes to the full House, bars lawmakers from authoring or voting on legislation that "could reasonably be expected to have a unique, direct and substantial" impact on their income or businesses. The rules also would require lawmakers to avoid the appearance of impropriety.

Republican and Democratic leaders are crafting a broader set of ethics changes as well, aiming to increase transparency about lawmakers' financial interests and address what many see as a revolving door among state officials and the industries they oversee.

The ethics issues have been a particular concern in the House after former Republican Rep. Eric Turner lobbied privately last session to kill legislation that could have cost his family's nursing home business millions. An investigation found no wrongdoing, but House Speaker Brian Bosma called for new ethics rules, and Turner resigned in November.

Ethics experts say Koch's ties to the gas and oil industry fell short of the new standard on avoiding the appearance of improprieties.

Koch's financial disclosure form shows he is a member of at least 28 gas and oil companies, some of which have interests in Indiana. He also owns stock or has stock options worth more than $10,000 in several energy companies.

His bill would have prevented local governments from regulating or prohibiting "oil and gas exploration, development, or production activities."

___

Information from: The Indianapolis Star, http://www.indystar.com