Smith Prods Lungren to Return Oil Money

Democrat Arlo Smith called Friday on his Republican foe for state attorney general, Dan Lungren, to return $8,600 in campaign contributions and any legal fees he has received from major oil companies to avoid potential conflicts of interest on environmental issues if elected in November.

“There is nothing wrong with representing oil companies,” said San Francisco Dist. Atty. Smith at a press conference outside the gates of the Chevron U.S.A. oil refinery in El Segundo. “(But) I think that it creates a conflict if in fact you are attorney general.”

Lungren replied later that he has no intention of returning the contributions he has received from Chevron, Atlantic Richfield, Texaco, Union and Shell during the last two years.

“I’m not going to return any monies from anybody who is in good standing in California and can lawfully give money as part of the political process,” the former congressman said in a telephone interview.

Lungren added that he has not personally represented any oil companies since joining a Sacramento law firm in early 1989. Smith should have known that, he said, because Smith had already raised the question last week at a Contra Costa County press conference.

Moreover, Lungren said, Smith has no business talking about potential conflicts because campaign finance reports show that Smith has been a longtime shareholder in oil firms including Atlantic Richfield, Mesa, Rock and Amerada Hess.

Smith, who said he sold the stocks early this year, also attacked Lungren for his support of offshore oil-drilling projects. Drilling will remain an issue in the campaign, Smith said at his noontime press conference, despite the recent decision by President Bush to prohibit drilling off the coast of California in coming years.

“Tomorrow the President can say there will be offshore drilling,” Smith said. “It’s not a law. . . . After the election, it can be changed.”