U.S. Rep. Harry Teague (Photo by Heath Haussamen)
10th wealthiest member of Congress giving up a large chunk of his personal fortune ‘to focus on serving his constituents’
U.S. Rep. Harry Teague is divesting himself of all interests in three oil companies that have helped make him the 10th wealthiest member of Congress.
Teague, a Democrat who represents New Mexico’s 2nd Congressional District, is divesting himself of interests in Teaco Drilling, Eunice Well Servicing Co. and ABC Tool Rental Co., according to a news release from the new company under which those businesses will be formed, Cavaloz Energy Inc.
The companies will be taken over by Teague’s son, Troy Teague, according to a news release from Cavaloz.
The three companies currently exist under the parent corporation Teaco Energy Services. On an annual financial disclosure form he filed earlier this year, Teague listed the value of his interests in that corporation as being almost $40 million.
Teague spokeswoman Sara Schreiber didn’t say what percentage of that $40 million Teague is giving up, but did say he has other assets and is “keeping an interest in other companies.” America Supply LLC is another company listed in Teaco Energy’s Web site as being part of the corporation, and it’s a company in which Teague is giving up his interests.
Did cap-and-trade vote play a role?
Teague’s companies all serve the oil and gas industry, and many in that industry have been angry at the congressman since he played an instrumental role earlier this year in the House’s passage of cap-and-trade legislation.
Schreiber didn’t directly answer a question about whether that anger over Teague’s vote has harmed his businesses. She instead responded with this statement:
“As you know, over the past few years our nation’s economy has suffered some of the hardest times since the Great Depression. During that time, many businesses throughout the nation have suffered, including some businesses in southeast New Mexico — in fact I know at least one oil and gas service company in the area had to shut their doors. As a small businessman in the oil and gas industry for the past 38 years, Congressman Teague is familiar with the economic ups and downs of the industry. “
Teague is being challenged next year by his predecessor in office, Steve Pearce, a Republican and, like Teague, and oilman from Hobbs. Pearce’s campaign declined to comment, but Joanna Burgos, spokeswoman for the National Republican Congressional Campaign Committee, questioned whether there’s a correlation between Teague’s cap-and-trade vote and his move to divest himself of interests in the businesses.
“Why change the name of the company?” Burgos asked. “Since the Teague name has become a bad word in New Mexico, is Teague’s abysmal voting record having such a drastically negative effect on his business that he feels compelled to separate his name from the company’s?”
Teague also recently voted to extend the inheritance tax and cancel a one-year repeal, and Burgos questioned whether “he was hypocritically avoiding the inheritance tax that he… voted to impose upon all Americans.”
The news release from Cavaloz states that Teague’s motive is “to focus on serving his constituents.”
Teague not ruling out self-financing for re-election bid
The race between Teague and Pearce is one of the hottest in the nation. Many expect both men to self-finance their campaigns. Teague spent $1.5 million of his own money when running for office in 2008.
Schreiber said divesting himself of the business interests won’t affect Teague’s ability to compete.
“Congressman Teague has not wasted any time fundraising for his reelection bid. In fact, according to a recent Congress Daily edition, he had the most cash on hand of any Democratic toss-up contender, with $757,377 cash on hand,” she said.
What about contributing his own funds to his re-election campaign?
“He is not ruling anything out,” Schreiber said.