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a. Mr. CapouillezwashiredtoprovidethePGCwithincreasedknowledgeandexperienceregardinggeology—specificallyasitrelatestomineral, oil, andnaturalgasissues. Additionally, hewashiredtobuildaPGCstaffwiththecapabilitytoprovidemaximumprotectiontotheconservationofstatelands
a. Mr. Capouillez’sclassificationasaHydrogeologist1wasreviewedandupgradedtoaHydrogeologist2effectiveMarch9, 1998.
b. Mr. Capouillez’spositionasaHydrogeologist2wasreclassifiedtoLicensedProfessionalGeologisteffectiveJanuary15, 2000.
c. Mr. CapouillezwaspromotedtoEnvironmentalPlanningManagereffectiveMay25, 2002. AstheEnvironmentalPlanningManager, Mr. CapouillezwastheChiefofthePGCEnvironmentalPlanningandHabitatProtectionDivision.
7. EffectiveDecember2, 2006, Mr. CapouillezwasappointedastheDirectoroftheBureauofLandManagement (currentlytheBWHM).
8. AsaHydrogeologist1, andsubsequentlyasaHydrogeologist2, Mr. Capouillezhadmultipledutiesandresponsibilities, whichincluded, amongothers, oil, gas, andmineralrecovery/leasing.
9. AsaLicensedProfessionalGeologist, Mr. Capouillezhadnospecificwrittenjobdescription.
c. Ifnocorrections/changesarerequired, thePGCCommissionersareformallynotifiedofthepotentialbidandforwardedacopyoftheleasemapandsitespecificdrillingorminingrestrictions.
d. IftheCommissionersapprovemovingforwardwiththeprocess, theOGMSectionpreparespublicnoticeofthepotentialbidareatobeadvertisedinatleasttwolocalnewspapersforthreeconsecutiveweekswithallrequests, commentsorconcerns, tobefullyaddressed.
e. TheOGMSectionsubsequentlysendspersonalwrittenbidinvitationsandbidpackagestoprobablebidders.
f. InterestedbiddersprepareandsubmitbidswhichareopenedbyrepresentativesofOGMSectionwiththehighestbidderrecommendedforawardofthelease.
g. TheOGMSectionpreparesthecommentaryregardingthepotentialleaseasanagendaitemwhichisthenscheduledforreviewandapprovaloftheExecutiveOffice, tobeplacedinthefinalagendaforameetingofthePGCBoardofCommissioners, whichentityalonehastheauthoritytoapproveorrejectanyleaseofGameLands.
i. PGCHarrisburgpersonnelandregionalpersonnelmustconductameetingwiththeoil/gasorminingcompanytoreviewallleasetermsandconditionswithfullyexecutedleasecopiestobegiventoallappropriatepartiestoinclude: lessee, PGCregionalpersonnel, andPGCHarrisburgpersonnel.
j. PeriodicfieldreviewsareconductedbyPGCpersonnelandDepartmentofEnvironmentalProtectionpersonnel (BureauofOilandGasorMining) toensurecompliancewithallapplicablestateandfederalregulationsgoverningoil/gasorminingoperations.
a. PGCsectionoftheEnvironmentalPlanningandHabitatProtectionDivisioncalculatesandnegotiatesleaselanguage, terms, fees, andbonding.
b. IftheapplicantagreeswiththetermsaspresentedbytheOGMSection, theleaseispresentedtotheBWHMDirectorforreview.
c. IftheformoftheleaseisfoundappropriatebytheBWHMDirector, theOGMSectionpreparesandsendsaconditionedcommitmentlettertotheapplicantforsignature.
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d. Uponreceiptofthesignedcommitmentletterfromtheapplicant, theOGMSectionpreparestheleasecommentaryasanagendaitemwhichisthenscheduledforreviewandapprovaloftheExecutiveOffice, tobeplacedinthefinalagendaforameetingofthePGCBoardofCommissionersforfundapproval.
f. OnceapprovedforlegalitybythePGC’sChiefCounselandsignedbytheExecutiveDirector, theleasetermsandconditionsaretobeapprovedforlegalitybytheOfficeofAttorneyGeneral.
g. PGCHarrisburgpersonnelandregionalpersonnelaretoconductameetingwiththeoil/gasorminingcompanytoreviewallleasetermsandconditionswithfullyexecutedleasecopiestobegiventoallappropriatepartiestoinclude: lessee, PGCregionalpersonnel, andPGCHarrisburgpersonnel.
h. PeriodicfieldreviewsaretobeconductedbyPGCpersonnelandDepartmentofEnvironmentalProtectionpersonnel (BureauofOilandGasorMining) toensurecompliancewithallapplicablestateandfederalregulationsgoverningoil/gasorminingoperations.
18. Mr. Capouillez’spositionasBWHMDirectorincludedresponsibilitiesandauthorityintheleasingprocesses, specifically:
a. Inthepublicbidprocess, theBWHMDirectorisresponsiblefordeterminingifOGMstandardoperatingproceduresandOGMpolicyhavebeenmetorifcorrectionstothebidpackagearerequired.
b. Inthesolesourceprocess, theBWHMDirectorisresponsiblefordeterminingifOGMstandardoperatingproceduresandOGMpolicyhavebeenmet, ifthepotentialleaseshouldbeconsideredforfurtherprocessing, orifthetermsoftheleaseshouldbemodifiedthroughthePGCchainofcommand.
a. Mr. Capouillezinteractedwithoilandnaturalgasexplorationand/orproductioncompaniesandtheirrepresentativesthroughhisPGCemployment.
b. Mr. CapouillezhasbeeninvolvedintheleasingprocessofSGLtovaryingextentsthroughouthistenurewiththePGC.
c. AsDirectorofBWHM, Mr. CapouillezhadtheauthoritytoreviewleasingactionswithintheBureauastotheircompliancewithOGMstandardoperatingproceduresandOGMpolicyandmakerecommendationstothePGCchainofcommandregardingwhethertoapprove, modify, orterminatetheOGMleaseprocess, althoughMr. Capouillezwasnotthefinalauthority.
d. EvenifapprovedbyPGCstaff, allleaseprocessesweresubjecttoformalapprovalbyPGCChiefCounsel, PGCDeputyExecutiveDirector, PGCExecutiveDirector, PGCBoardofCommissioners, andreviewedbytheCommonwealth’sOfficeofAttorneyGeneral.
e. FinalapprovalofleasesmadebyPGCchainofcommandaboveCapouillezreliedprimarilyonrecommendationsmadebyCapouillezandhisstaff.
a. Onceanareaisidentified, companiesmayattempttoconsolidateleaseacreageviasolicitationofpropertyownerswithinthedesiredarearegardinginterestinleasingtheproperty’ssubsurfaceoiland/ornaturalgasrights.
a. Mr. Capouillezattimesprovidedmarketingmaterialatseminarsand/orconferencesintheformofaself-createddocumentoutlininghisqualificationsandexperience, hispotentialfeesandbusinessmodel, andhisleasingstrategy/services. ThematerialexplainedMr. Capouillez’spotentialfeeandbusinessmodelasfollows:
34. Oncehavingsecuredgroupsofpropertyownersasclientsandbidsfrominterestedoil/naturalgascompanies, Mr. Capouillezorganizedmeetingswiththegroupstodiscussbidsreceivedandtoawardaleasetothesuccessfulbidder.
c. CapouillezdocumentedontheSupplementalEmploymentRequestthatallofthedutieswerederivedfromhisdirectinvolvementinleasingofPGCownedoil/gas & minerals, andonoccasionrecommendingactionsonpreviouslyawardedleasecompliance.
d. Capouillezdocumentedthetypeofbusinessasself-employmentconsultingasalicensedgeologistinrelationtohispotentialsupplementaryemployment.
e. Capouillezidentifiedhisdutiesasageologyconsultanttoincludeactingasaconsultant/advisortoprivatepropertyownersastopotentialliabilityfromexisting/probablehydrologicimpactsfromconstructionanddevelopmentandadvisingpotentialrealestateownersastopotentialoil/gasandmineraldevelopmentoflands.
a. ThesupplementalemploymentwouldnotinterferewithregularworkhoursorjobperformanceorviolatetheprovisionsoftheGovernor’sCodeofConductortheEthicsAct.
b. Mr. CapouillezcouldnotutilizeCommonwealthequipment, supplies, property, information, ideas, ordataderivedfromhisCommonwealthemploymentinthecourseofhissupplementalemployment.
c. Mr. CapouillezcouldnotparticipatethroughthesupplementalemploymentinanymatterthatpresentedaconflictwithhisresponsibilitiesasanemployeeofthePGC.
d. Mr. CapouillezcouldnotparticipatethroughthesupplementalemploymentinanytransactioninwhichtheCommonwealthhadadirectandsubstantialinterest.
e. Mr. CapouillezcouldnotusehispositionasanemployeeofthePGCoranyconfidentialinformationgainedthroughhispositionasHydrogeologistintheBureauofLandManagementinthecourseofhissupplementalemployment.
43. OnoraboutMay14, 2001, Mr. CapouillezsubmittedaSupplementaryEmploymentRequestseekingaPGClegalopinionandpotentialapprovalregardingaspecificpotentialGALclient: theWashingtonCountyPlanningCommission.
a. Intherequest, Mr. Capouillezidentifiedpossibleand/orapparentconflictswithhisdepartmentaldutiesatthePGC.
b. Mr. Capouillezexplainedthathehadbeenconsultingandrepresentingprivatelandownerswhosepropertieswereadjacenttothisparticulararea. ThePlanningCommissionrequestedthatherepresenttheirinterests, since
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hehadindirectlyinfluencedthesolicitationofoil/gasinterestintheparkarea. Mr. Capouilleznotedthattheinformationhewouldutilizeand/ordevelopthroughtherepresentationofthePlanningCommissionwaseitherpublicorinformationhegatheredbyrepresentingprivateinterestsnearthepark.
c. OnJune13, 2001, afterhearingtheresultsofthePGClegalopinion, Mr. Capouillezwithdrewthissupplementalemploymentrequestbecauseitwasapparentthatapotentialforaconflictofinterestexisted. UponrequestofChiefCounselPouss, Mr. CapouillezsentthefollowingemailtoChiefCounselPoussandHarryBenion:
a. Farmersandotherpropertyownerswereroutinelysolicitedbyrepresentativesofand/orcontractorsonbehalfofthecompaniesregardingoilandgasleasing.
b. Limitedoutsideresourcesexistedatthattimetoassistpropertyownersinrelationtodecidingtoleaseornot, negotiationwithprivateindustry, leasetermsandrestrictions, etc.
a. Duringhisportionoftheprogram, Capouillezpresentedinformationregardinglandownerdeeds, miningleases, oil/gasleases, andexistingregulationsandprotectionstandards.
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b. Capouillezdidnotspecificallyidentifyormarkethisprivateconsultingbusinessduringhispresentation.
c. ChrisSweger, whowastheWashingtonCountyFarmBureauPresidentatthetime, waspresentatthepresentationandapproachedCapouillezduringthelunchportionoftheeventtoaskifCapouillezknewofanyonewhocouldhelpagroupoflandownersfromWashingtonCountyinnegotiatingaleasewithprivateindustry.
d. CapouillezinformedSwegerthathedidprivateconsultingrelatingtooilandnaturalgasleasing.
47. Subsequenttothatprogram, Mr. CapouillezsolicitedbidsfrommultipleoilandnaturalgascompaniesonbehalfofclientsoftheWashingtonCounty, HopewellTownshipgroup. ThebidfortheWashingtonCounty, HopewellTownshipgroupwasultimatelyawardedtoGreatLakesEnergyPartners, LLC (nowRangeResources).
53. Insummary, Mr. Capouillez’s/GAL’srepresentationoflandownergroupsinleasenegotiationswithoilandnaturalgasentitiesremainedconsistentfrom2001through2013andgenerallyincludedsolicitationofinterestfromoilandnaturalgascompaniesregardingacreageavailableforleasinginspecificareas. Followingtheacceptanceofabid, thelandownersauthorizedMr. Capouilleztoprovidecompanyrepresentativeswithinformationregardingpropertylocations, ownershipinformation, surrenderdocuments, etc. Mr. Capouillezwouldnotifythelandownersoftheschedulingofleasesigningsbetweenthelandownersgroupsandtheleasingoilandnaturalgasentities
56. Mr. CapouillezwasincontactwithvariousEXCOand/orEXCOPArepresentativesregardingSGLleasingduringhisemploymentwiththePGC. Forexample:
a. WhileemployedastheDirectoroftheBWHM, Mr. CapouillezattendedvariousmeetingswithEXCOPArepresentativesandotherPGCemployeesinrelationtotheleasingofSGL.
b. WhileemployedastheDirectoroftheBWHM, Mr. CapouillezwascourtesycopiedbyEXCOPArepresentativesonvariousemailstoPGCrepresentativesregardingleasingofSGL.
c. WhileemployedastheDirectoroftheBWHM, Mr. CapouillezwascourtesycopiedonvariouscorrespondencesfromthePGCtoEXCOPAinrelationtotheleasingofSGL.
a. DiMatteoalsobegancommunicatingwithRotundaonoraboutFebruary4, 2011, inrelationtoEXCO’sinterestinacreagewithinSGL #114.
b. Mr. CapouillezwasMr. DiMatteo’simmediateSupervisoratthePGCatthattimeandwasultimatelyresponsibleforMr. DiMatteo’sactivitiesinrelationtoanyleasingofPGClands.
c. Mr. DiMatteoroutinelyinformedMr. Capouillezofanentity’sinterestinleasingSGLoncenegotiationshadbecomeestablishedtoasignificantextent.
63. OnedayafterthePGC’spublicleaseapprovalforSGL114B-11, Mr. CapouillezemailedRotundatofollow-uponEXCOPA’spotentialinterestintheGALclientacreageidentifiedinDecember2010.
a. Mr. Capouillezadvisedthathewasfinishingupthecompetitivebidprocess, andrequestedaresponseassoonaspossibleifEXCOPAhadaninterestinenteringacompetitivebid.
b. Mr. CapouillezprovidedRotundawithanupdatedclientregister.
d. Mr. Capouillezrespondedviaemailthatsameday (April14, 2011) andresubmittedtheavailableacreageaswellasacopyoftheLycomingCountybidprospectussuppliedtointerestedentities. TheprospectusidentifiedthatbidsweretohavebeenreceivedbyMarch9, 2011, 5:00p.m. EasternTime.
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e. Mr. CapouillezinformedRotundathathewasmeetingwiththegroupduringthenextweek (April21, 2011). Mr. CapouillezinstructedRotundatoinformhim “ASAP” ifEXCOPAwasinterestedinanyorallofthetracts.
f. Mr. CapouillezrepeatedhisinquiryinaprivateemailtoRotundadatedApril20, 2011. Mr. Capouillezdirectlyquestioned, inpart, asfollows:
Frank . . . isExcointerested. Iammeetingtomorrownightwiththegroupandwillbepresentedalloffersandrequests. Doyouneedmoretime?
g. RotundarepliedtoMr. CapouillezviaprivateemaildatedApril21, 2011, andindicatedthatEXCOPAneededmoretime. RotundaindicatedthatEXCOPA “obviously” wasinterestedintheareaasEXCOPA’sdrillingfocusatthattimewasLycomingCounty.
h. InmultipleprivateemailtransmissionsbetweenRotundaandMr. Capouillez, spanningfromMay6, 2011, throughJune23, 2011, RotundaexpressedinterestinpursuitofthemajorityoftheavailableacreagepresentedbyMr. CapouillezwhichwaslocatedintheGambleandLewisTownshipareaofLycomingCounty.
i. InaprivateemailtoRotundadatedJune16, 2011, Mr. CapouillezidentifiedameetingtobeheldwithhisclientsonJune18, 2011, andquestionedRotundaaboutwhichspecifictractsEXCOPAwasinterestedinleasing. RotundaspecificallyidentifiedleasesthatEXCOPAwasinterestedinobtaininginanemailandattachmentdatedJune17, 2011, senttoT. Capouillez’semailaddress. Intheemail, RotundadocumentedEXCOPA’sofferof18% royaltyand $3,500.00pernetacreregardingroyaltyandbonusconsiderationrespectivelyforafiveyearpaiduptermlease.
j. PrivateemailcommunicationbetweenMr. CapouillezandEXCOPArepresentativesregardingleasereview, potentialadditionalacreageavailable, andleasefinalizationcontinuedintoAugust2011.
k. OnAugust17, 2011, Mr. CapouillezsentaprivateemailtoRotundathatidentifiedtheneedtogettherevisedleasedown “asap” sothatMr. CapouillezcouldreconvenewiththelandownergroupmembersinvolvedandpresentEXCOPA’sofferforconsideration.
l. Mr. CapouillezsenttheprivateemailtoRotundathedayafterreceivingaprivate emailfromKarenBrowninformingMr. CapouillezthatRiceEnergyhadofferedanareapropertyowner $5,000.00peracre. BrownsuppliedtheinformationtoMr. CapouillezspeculatingthatMr. Capouillezmaywanttoknowand/orcontactRiceEnergy.
m. EricBuddenbohnbecameinvolvedintheleasenegotiationsbetweenEXCOandMr. Capouillez/GALonoraboutAugust19, 2011. BuddenbohnprovidedMr. Capouillezwithaleaseformforreviewviaprivateemailonthisdate.
n. Mr. CapouillezrespondedtoBuddenbohnonAugust23, 2011, andpresentedhisbeliefthatthepartieswerecloseinregardtotheactualleaseform. Mr. Capouillezexpressedsurpriseregardingadjustmentsmadetotheroyaltyandbonusconsiderationofferedtoprivatelandowners.
p. TheroyaltypercentageandbonusconsiderationweresubsequentlychangedbacktotheoriginalamountsofferedbyRotunda.
64. Throughthecompetitivebidprocessandwiththeapprovalofhislandownerclients, Mr. Capouillez’scommunicationswithEXCOPArepresentativesinrelationtoleaseacreageavailableinLycomingCountyultimatelyresultedintheexecutionofeighteenleasesbetweenMr. Capouillez/GALclientsandEXCOPA.
a. Mr. Capouillez, asarepresentativeofGAL, signedalleighteenoftheleasesexecutedbetweentheprivatelandownersandEXCOPA.
b. SteveArea, EXCOVicePresidentofLand & BusinessDevelopment, alsosignedtheleasesonbehalfofEXCOPA.
c. Pertheexecutedleasetermsandconditions, Mr. Capouillez/GALwasduecompensationintheamountof $20.00peracreinbonusconsiderationand0.75% ofallroyaltiesforeachlease. TheportionsofwhichweredirectlyrelatedtoMr. Capouillez’sprivatelandownercontracts \[sic\].
a. EXCOhashadexistingleaseinterestsineffectforSGLTracts100A-00, 100A-01, and100B-01duringthetimeperiodofNovember2, 2004, throughthepresent.
b. EXCOPAexecutedaleaseforSGLTract114B-11onJuly7, 2011, andwasnegotiatingwiththePGCregardingthisleaseasearlyasJanuary2011.
66. Mr. Capouillezparticipatedinand/orwasresponsiblefordirectionandoversightofthestatewidelandacquisitionandleasingprogramduringthetimeframesnotedabove.
67. WhileservingastheBWHMDirectorforthePGC, Mr. CapouillezrepresentedGALclientsinthecompetitivebidprocessbynegotiatingandexecutingleaseswithEXCO, atatimeconcurrentwithPGCleasenegotiationswithEXCOPAonSGLproperties, whichledtoafinancialgaintoMr. Capouillez/GALof $31,358.70.
72. BetweenFebruary2010andJanuary2011, Mr. Capouillez, throughGAL, inquiredandcommunicatedwithEMErepresentativesregardingacquiringprivateleaseswithGALclientsinClintonCountyatthesametimethatEMEexpressedinterestinleasingSGLinTiogaCounty.
73. Mr. Capouillez’sinquiriesandnegotiationswithEMErepresentativesultimatelyresultedintheexecutionofapproximatelysixty-fiveleasesbetweenGALclientsandEME.
a. Mr. CapouillezsignedtheleasesexecutedbetweenGALclientsandEME.
b. TheleaseswerealsosignedbyBrianKaufman, ChiefOperatingOfficer, orCarolKaufman, EMERegionalLandManager, asrepresentativesofEME.
c. PerthetermsandconditionsoftheprivatelandownercontractswithGAL, Mr. Capouillez/GALwasduecompensationintheamountof $50.00peracreinbonusconsiderationand1.75% ofallroyaltiesforeachlease.
d. AlloftheleaseswerelocatedinClintonCounty, nonewereinTiogaCounty.
74. WhileservingasBWHMDirectorforthePGC, Mr. CapouillezrepresentedGALclientsinnegotiatingandexecutingleasesinClintonCounty, atatimewhenEMEhadexpressedinterestinand/orwasactivelyinvolvedinnegotiationswiththePGCfortheleasingofSGLinTiogaCounty.
a. TherespectivelandandleaseswerenotsufficientlycloseintimeorgeographicproximitytoenabletheInvestigativeDivisiontorecommendthatanyuseofauthorityofofficebyCapouillezwasinviolationofSection1103(a) oftheEthicsAct. SeeThuy, Order1588, pg. 37.
a. CapouillezinteractedwithrepresentativesofTalismaninassociationwithhispositionwiththePGCastheBWHMDirectorresponsibleforoversightofthePGCstatewideleasingprogram.
a. WhileemployedastheDirectoroftheBWHM, CapouillezparticipatedinvariousmeetingswithTalismanrepresentativesinrelationtotheleasingofSGL, wasdirectlyaddressedorcopiedbyTalismanrepresentativesonemailtoPGCrepresentativesregardingleasingofSGL, andwascourtesycopiedonemailfromPGCrepresentativestoTalismaninrelationtotheleasingofSGL.
a. TalismanhadexistingleaseinterestsineffectforSGLTract123A-03duringthetimeperiodofAugust2009untilatleastApril2014.
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b. TalismanwaspursuingitsinterestinthepotentialleasingofSGL66, 140, and/or219viacommunicationwithmultiplePGCrepresentatives, includingCapouillezin2010.
a. Capouillez, asarepresentativeofGAL, signedallseventy-threeoftheleasesexecutedbetweentheprivatelandownersandTalisman.
b. TheleasessigneddirectlywithTalismanweresignedbyDarinZanovich, AttorneyinFact, onbehalfofTalisman.
c. Pertheexecutedleasetermsandconditions, Capouillez/GALwasduecompensationinanamountrangeof $50.00peracreinbonusconsiderationand1.75% ofallroyaltiesforeachlease.
a. CapouillezwasresponsiblefordirectionandoversightofthePGCstatewidelandacquisitionandleasingprogramatalltimesduringthenegotiationsbetweenTalismanandthePGCforSGLTract219A-13and140A-13andduringthenegotiationsbetweenTalismanandprivatelandownersrepresentedbyCapouillez/GAL.
a. InoraboutDecember2009, EQTenteredintoajointventurewithEMEforthepurposeofsecuringoilandgasleasesinnortheasternPennsylvania, includingprivateaswellasSGLleases.
a. Specifically, astheDirectoroftheBWHM, CapouillezattendedmeetingswithEQTrepresentativesinrelationtothepotentialleasingofSGLduringtheweekofApril26, 2010.
b. AstheDirectoroftheBWHM, CapouillezauthoredcorrespondencedatedMay26, 2010, toTimothyMatthews, SeniorVicePresidentofAmericanExplorationCompany, regardingtheassignmentofSGLLease014A-01toEQTandthePGC’sintenttoapprovetheassignmenttoEQTwaspre- conditionedonAmericanExplorationCompanyfullycomplyingwiththetermsandconditionssetforthinCapouillez’sandMatthews’smostrecenttelephoneconversation.
c. Capouillez, astheDirectoroftheBWHM, wasthespecificaddresseerelatingtocorrespondenceauthoredbyHodgesdatedJune4, 2010, regardingpotentialleaseamendmentsuponassignmentoftheleaseforSGL014A-01fromAmericanExplorationCompanytoEQT, whichreferenceddiscussionthathadoccurredthemorningofJune4, 2010, betweenCapouillezandHodges, includingthepotentialleaseamendments.
d. In2010, astheDirectoroftheBWHM, CapouillezwasalsocopiedonallcorrespondencefromthePGCtoEQTinrelationtotheleasingofSGL.
a. Theemailconversationwasinitiatedasaresultofa2008newspaperarticlewhichoutlinedCapouillez’ssimultaneousserviceasDirectoroftheBWHMandhisoutsidebusinessinterestswithGAL.
b. EQTofficialshadconcernsofapotentialconflictofinterestforCapouillezattheCommonwealth, ifCapouillezwouldgetcitedfor “moonlighting” andthatalthoughCapouillezhadbeenhelpfultoEQT, hemaynotbeabletodosointhefuture.
a. Oftheforty-oneleasesoriginallyexecutedwithRange, onewasexecutedin2002, twowereexecutedin2003, andthirty-eightwereexecutedinApril/June2008.
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b. TenoftheleasesoriginallyexecutedwithRangewerelaterassignedtoTalisman.
98. Mr. CapouillezhadnospecificnegotiationwithEOGrepresentativesinrelationtotheassignmentoftheseleases, butMr. CapouillezwasincontactwithEOGrepresentativesin2007and2008atatimewhenEOGwasengagedinactiveleasingofSGLwiththePGC.
99. Mr. Capouillezdidnot, eitherasanindividualand/orasarepresentativeofGAL, playanyroleintheassignmenttoEOGofpreviouslyexecutedcontractsbetweenclientsofGALandRange/Talisman. BecauseRangelostanumberoforiginalleases, itsrecordsregardingtheseassignmentsandrelatedleaseslackdetailsoftimeandspecificleaseidentification.
100. Mr. Capouillez’ssimultaneouscontactwithEOGand/oritsrepresentatives/affiliatesasarepresentativeofGALandasDirectoroftheBWHMdidnotresultinadditionalpecuniarybenefitbeyondthatcontainedwithintheoriginal/assignedcontractsnegotiatedbetween2003and2008.
a. AnyactionsofCapouillezresultinginaprivatepecuniarybenefitoccurredpriortoJanuary10, 2009, andperpriorconsistentrulingsoftheStateEthicsCommission, areoutsideoftheapplicableStatuteofLimitationsasdelineatedwithin65Pa.C.S. § 1108(m). SeeThuyOrder1588; SeropianOrder1547.
102. InAprilandMay2010, Mr. CapouillezinquiredofConsolregardingConsol’sinterestinleasingpropertyfromGALclients. However, Consoldidnotexecuteanyleasesasaresultofthisinquiry.
103. Mr. CapouillezalsohadexposuretoConsolthroughGALasaresultofapartialassignmentofoneleasefromRangeResourcestoConsolinDecember2011, butwasnotspecificallyinvolvedinthenegotiationsofthispartialassignment.
a. ConsoldidmakepaymentstoCapouilleztotaling $643.88duringtherelevanttimeperiodasaresultofaleaseassignmentfromRangetoConsol.
106. XTOEnergy, Inc. (hereinafter “XTO”) isanaturalgasandoilentitythathasenteredintonolessthanthree (3) contracts/agreementsfortheleasingofoil, naturalgas, andmineralrightsunderSGLfromMay2008throughthepresent.
107. Mr. Capouillezwasawareofand/orgainedknowledgeofXTO’sinterestinSGLleasingaroundMay2008asaresultoftheassignmentofexistingSGLleasesfromLinnEnergytoXTO.
a. CapouillezdidnotplayanyroleintheassignmentofGALleasesfromRangetoXTO.
109. Mr. Capouillez’ssimultaneouscontactwithXTOand/oritsrepresentatives/affiliatesasarepresentativeofGALandasDirectoroftheBWHMdidnotresultinadditionalpecuniarybenefitbeyondthatcontainedwithintheoriginal/assignedcontracts.
a. AnyactionsofCapouillezresultinginaprivatepecuniarybenefitoccurredpriortoJanuary10, 2009, andperpriorconsistentrulingsoftheStateEthicsCommission, forthepurposesofthisConsentAgreement, areoutsideoftheapplicableStatuteofLimitationsasdelineatedwithin65Pa.C.S. § 1108(m). SeeThuyOrder1588; SeropianOrder1547.
112. Mr. Capouillez’sinteractionwithrepresentativesfromAnadarkowhilerepresentingGALclientsresultedintheexecutionofatleasttenleasesbetweencalendaryears2006and2008.
117. Mr. CapouillezhadknowledgeofChesapeake’spotentialinterestinleasingSGLasearlyasAugust2007, asaresultofanemailreceivedfromChesapeake’slandmanonoraboutAugust13, 2007.
118. BetweenMay2007andJuly2010, Mr. Capouillez, inhisprivatecapacitythroughGAL, inquiredofChesapeakerepresentativesinrelationtoChesapeake’spotentialinterestinacquiringGALclientleasescontemporaneoustotimeswhenChesapeakewasnegotiatingforand/oractivelyinvolvedinleasingofSGLwiththePGC.
119. Mr. Capouillez’sinquiriesandnegotiationswithChesapeakerepresentativesultimatelyresultedintheexecutionofthirtyleasesbetweenGALclientsandChesapeake, between2007and2008.
a. AnyactionsofCapouillezresultinginaprivatepecuniarybenefitoccurredpriortoJanuary10, 2009, andperpriorconsistentrulingsoftheStateEthicsCommission, forthepurposesofthisConsentAgreement, areoutsideoftheapplicableStatuteofLimitationsasdelineatedwithin65Pa.C.S. § 1108(m). SeeThuyOrder1588; SeropianOrder1547.
a. CapouillezservedasaconsultantthroughGALfornineleasesinitiallyexecutedbetweenGALclientsandRangein2006-2007, whichwereultimatelyassignedtoPGEonOctober13, 2009.
b. Capouillez/GALservedasaconsultantforoneleaseinitiallyexecutedbetweenprivatelandownersandAnadarkoin2007, whichwasultimatelyassignedtoPGEonJuly9, 2013.
123. BetweenNovember2002andMay2011, Mr. CapouillezinquiredofPGEinrelationtoPGE’spotentialinterestinobtainingGALclientacreageduringthetimeframethatPGEhadanactiveleaserelationshipwiththePGCforSGL049A-01. TheseinquiriesdidnotleadtoanycontractsbetweenPGEandGALclients.
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124. Mr. Capouillezdidnot, eitherasanindividualand/orasarepresentativeofGAL, playanyroleintheassignmenttoPGEofpreviouslyexecutedcontractsbetweenclientsofGALandRange/Anadarko.
125. Mr. Capouillez’ssimultaneouscontactwithPGEand/oritsrepresentatives/affiliatesasarepresentativeofGALandasDirectoroftheBWHMdidnotresultinprivateleasesforGALclientsnorinadditionalpecuniarybenefittothemorMr. Capouillezbeyondthat containedwithintheoriginal/assignedcontracts.
a. AnyactionsofCapouillezresultinginaprivatepecuniarybenefitoccurredpriortoJanuary10, 2009, andperpriorconsistentrulingsoftheStateEthicsCommission, forthepurposesofthisConsentAgreement, areoutsideoftheapplicableStatuteofLimitationsasdelineatedwithin65Pa.C.S. § 1108(m). SeeThuyOrder1588; SeropianOrder1547.
a. CapouillezidentifiedhisdutiesasaGeologyConsultant, whichwouldincludeactingasaconsultant/advisortopropertyownersastopotentialliabilityfromexisting/probablehydrologicimpactsfromconstructionanddevelopmentandadvisingpotentialrealestateownersastopotentialoil/gasandmineraldevelopmentoflands.
a. Mr. CapouillezworkedintheprivatesectorpriortohisCommonwealthemployment. Mr. CapouillezperformedconsultingservicesforpropertyownersrelatedtooilandnaturalgaspriortohisemploymentwiththeCommonwealth, althoughnotunderanactualfictitiousnameuntilthemid- 1990s. Mr. Capouillezobtainedhisclientsprimarilythroughwordofmouth, hisexposuretootherconsultantswhileemployedwithMineTech, hismilitarycontacts, andhisFreeMasoncontacts.
b. Mr. CapouillezwasinitiallysolicitedbyPGCrepresentativestoworkforthePGCinanewlycreatedHydrogeologistposition.
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c. Mr. Capouillezbecameinvolvedintheleasingaspectofoil, gas, andmineralrightsunderSGLshortlyafterbeinghiredbythePGC.
d. Mr. CapouillezdevelopedtheconceptofpubliclybiddingtheSGLOGMleasesthroughacompetitivebidprocess. Noformalleasingprogramexistedpriortohisinvolvement.
e. Priorto2002, whileemployedastheSectionChiefofOGMDevelopment, Mr. CapouillezwasresponsibleforthefacilitationofbidsfortheleasingofSGL, processingofsaidbids, obtainingrequiredapprovalsthroughthechainofcommand, andcoordinationeffortsbetweentheHarrisburgofficeandregionaloffices.
f. Between2002and2006, whileemployedastheDivisionChiefoftheEPHPD, Mr. CapouillezwascognizantofleasingSGLforOGMdevelopment; however, hewasnotinvolvedtothesamedegreeaswhenhewastheSectionChiefofOGMDevelopment.
g. From2006to2014, Mr. CapouillezhadnoresponsibilityinhispositionasDirectoroftheBWHMregardingtheleasingofSGLforoilandnaturalgas; rather, hisinvolvementwaslimitedtothatofamanagementperspective.
h. Mr. CapouillezsubmittedhisGALsupplementaryemploymentrequestinordertoobtainsupervisoryexperiencetoqualifyforpotentialpromotiontoDivisionChief.
i. Mr. Capouillez’s/GAL’sclient basefrommid-1996untilearly2001wasdwindling/limited. In2001Mr. Capouillez’sclientbasethroughGALgrewandsignificantlyincreasedoverthenextseveralyears.
j. Mr. Capouillezhadnotrepresentedanylargelandownergroups (morethantwotothreepeople) priortoworkingwiththeHopewellTownshipgroup.
k. Mr. CapouillezmadenospecificreferencetohispositionwiththePGCduringanypresentationsbeforeprivatelandownersuntilthelandownerswerereadytosignthelandownercontractwithMr. Capouillez/GAL. Priortoenteringintothecontractwiththelandowners, Mr. CapouillezdisclosedhisemploymentwiththeCommonwealth, avoidingidentificationofhisspecificposition, andinformedthelandownersthathecouldnottakeormakeprivatebusinesscallsduringtheday, thathecouldnottraveltomeetingsinaCommonwealthvehicle, etc.
l. Mr. Capouillez’slandownercontractidentifiedconstraintshehadtofollow, andcontainedaclausethatindicatedthathewouldrefuseanycompensationhewasdueasaresultofprivateleasesthatwereaffectedinanywaybyactivityonneighboringSGL. TheportionoffundspotentiallyduetoMr. Capouillezwouldrevertbacktotheprivatelandowner.
m. Mr. Capouillezhadnospecificknowledgeorrecollectionofsolicitinganyprivateentity/entitiesatthesametimethattheentity/entitieswerealsoattemptingtoleaseSGL.
n. Mr. Capouillezunderstoodtheconcernsraisedandcouldseetheappearanceofaproblemwithhisdualpositions.
Duringtherelevanttimeperiod, inhisprivatecapacitywithGAL, CapouillezsolicitedinterestfromEXCOPAonmultipleoccasionsinrelationtoGALclientsandthepotentialleaseacreageavailablethroughhisclients. See, FactFinding57.
InAprilandMay2010, CapouillezinquiredofConsolregardingConsol’sinterestinleasingpropertyfromGALclients. However, Consoldidnotexecuteanyleasesasaresultofthisinquiry.
b. TheInvestigativeDivisionhasconductedacomprehensiveinvestigationandreviewoftheallegationsascontainedaboveinparagraphtwo (2) \[oftheConsentAgreement\]. Aftersaidinvestigationandreview, anduponacarefulreviewofitsinvestigativefiles, theparties, bothInvestigativeDivisionandRespondent, haveagreedtosubmittheinstantConsentAgreementandStipulationofFindingsinsettlementofthematter.
4. Infullandfinalsettlementofthe allegedviolations, Mr. Capouillezagreestomakepaymentinthetotalsumof75,000.00 (the “SettlementAmount”) asprovidedinthis
paragraph.
a. $ 75,000.00payabletotheCommonwealthofPennsylvaniaandforwardedtothePennsylvaniaStateEthicsCommissionwithinthirty (30) daysoftheissuanceofthefinaladjudicationinthismatter. FollowingtheissuanceofaFinalOrder, anduponpaymentoftheSettlementAmount, Mr. CapouillezshallhavenofurtherfinancialobligationsunderthisConsentAgreementorotherwisearisingoutoftheallegedviolations.
5. TheInvestigativeDivisionshallrecommendthatthePennsylvaniaStateEthicsCommissiontakenofurtheractioninthismatterandshallmakenoreferralorrecommendationstoanylawenforcementorotherauthoritytotakeactionregardingtheAllegationsassetforthintheInvestigativeComplaint/FindingsReport. However, nothingshallprohibit