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Sunday, July 31, 2005

REPOST!! With Passage of Broad Energy Legislation Comes News that New Energy Secretary Was One Of Texas' Worst Polluters


By Jason Leopold

© 2005 Jason Leopold

In the bizarro world that President Bush lives in, it pays—literally—to be a miserable failure, a criminal and a corporate con man. Those are just some of the characteristics of the dastardly men and women who were tapped to fill the vacancies in Bush’s second-term cabinet.

But one of the President’s most outrageous decisions has got to be choosing 66 year-old Sam Bodman to serve as Secretary of Energy. This is a guy who for a dozen years ran a Texas-based chemical company that spent years on the top five lists of the country’s worst polluters.

It’s not just a few clouds of smoke emanating from an oil refinery or a power plant that got Bodman’s old company, Boston-based Cabot Corporation, those accolades. It was the 54,000 tons of toxic emissions that his company’s refineries released into the air in the Lone Star state in 1997 alone that made Cabot the fourth largest source of toxic emissions in Texas. Cabot is the world’s largest producer of industrial carbon black, a byproduct of the oil refinery process.

In 2000, the year Bodman left Cabot to join the Bush administration as Deputy Commerce Secretary, Cabot accounted for 60,000 of the more than half-a-million tons of toxic emissions released into the Texas air, according to report by the Texas State Summary of Emissions.

A loophole created in the 1972 Texas Clean Air Act exempted or “grandfathered” industrial plants built before 1971 from new, stricter pollution control rules. But in the mid-1990s companies such as Cabot were supposed to curb the pollution coming from its refineries. Environmentalists demanded that then Gov. Bush rein in the polluters and close the so-called grandfather loophole as the air in Texas became smoggier.

Instead, in 1997, then Gov. Bush asked two oil company executives to outline a voluntary program that allowed the grandfathered polluters to decide on their own exactly how much to cut the pollution at their plants. The oil execs summoned a meeting of two dozen industry reps at Exxon offices in Houston and presented them with the program.

In a memo obtained under the Freedom of Information Act, one executive wrote that "clearly the insiders from oil and gas believe that the Governor's office will 'persuade' the (Texas Natural Resource Conservation Commission) to accept what program is developed between the industry group and the Governor's Office."

“And they did. And two years later this joke of a program was enacted into law by a bill written by the general counsel for the Texas Chemical Council who also lobbies for energy and utility companies. The bill was denounced by newspapers across the state,” according to a March 5, 2000 report in The Fort Worth Star-Telegram.

According to people familiar with the legislation, Sam Bodman was part of the original working group that drafted legislation that then Gov. Bush signed into law that basically permitted Cabot and other companies to continue to emit the same level—and in some cases more—toxic emissions as they had been years earlier without so much as receiving a slap-on-the-wrist by then Gov. Bush.

Bodman personally contributed $1,000 to Bush's presidential campaign and $20,000 to Republican committees in the 1999-2000 election. Bodman is the wealthiest member of the Bush administration. His net worth is estimated to be between $42 million and $164 million, the bulk of it in Cabot stock, deferred compensation and other benefits.

Bodman shoddy environmental record aside, he may also be complicit in one of Africa’s deadliest wars.

In October 2002, Bodman’s former company came under fire when a United Nations Panel of Experts produced a report accusing the company, along with several other US corporations, of helping to fuel the wars in the Democratic Republic of the Congo (DRC) while he ran Cabot by purchasing coltan from Congo during the conflict and illegally plundering the country’s vast natural resources.

Cabot has publicly denied the allegations in the UN report, but a report by the Belgian Senate states that Eagle Wings Resources International had a long?term contract to supply Cabot with coltan, which it too purchased from Congo during the war. Eagle Wings was also identified in the UN report as contributing to the war.

In response, environmental Friend of the Earth United States (FOE) and the UK-based human rights group Rights and Accountability in Development (RAID) filed a complaint with the US State Department last August against Cabot and several other western corporations for its role in aiding the rebels in the Democratic Republic of Congo by conducting business there, essentially inadvertently aiding a violent conflict that contributed to widespread human rights abuses.

RAID an FOE filed a complaint with the U.S. State Department last August claiming Cabot and other western corporations having violated the Organization for Economic Cooperation and Development’s (OECD) “Guidelines for Multinational Enterprises,” a set of international standards for responsible corporate behavior.

The UN panel said in its report that a “three-year investigation found that sophisticated “elite networks” of high?level political, military and businesspersons, in collaboration with various rebel groups, intentionally fueled the conflict in order to retain control over the country’s vast natural resources. The Panel implicated many Western companies for directly or indirectly helping to fuel the war.”

The State Department is the agency in charge of deciding whether US companies breach the OECD guidelines. Despite the allegations included in the UN report and the complaint filed by the two activist groups, the State Department has refused to launch an independent investigation into whether Cabot, under Bodman’s leadership, and the other US companies might have contributed to the war in the Democratic Republic of Congo.

According to the UN report, an increase in the export of columbo tantalite, otherwise known as coltan from which the metal tantalum is extracted, in 1999 and 2000 resulted in “a sharp increase in the world prices of tantalum…leading to a large increase in coltan production in eastern DRC…While the processors of coltan and other Congolese minerals in Asia, Europe and North America may not have been aware of what was happening in the DRC, the Panel’s investigations uncovered such serious concerns that it was decided to raise the international business community’s awareness…”

Cabot is the world’s largest refiner of coltan. The other US corporations identified in the UN report, Kemet and Vishay, both purchase processed tantalum from Cabot. Under Bodman’s leadership an unknown amount of the coltan Cabot Corporation was purchasing could have originated from the DRC. Cabot Corporation has stated publicly that “to the best of its knowledge none [of its coltan came] from environmentally sensitive areas in Africa, but it can’t be sure.”

Jason Leopold is the author of the explosive memoir, News Junkie, to be released in the spring of 2006 by Process/Feral House Books. Visit Leopold's website at www.jasonleopold.com for updates.

Friday, July 29, 2005

REPOST: IN LIGHT OF PASSAGE OF ENERGY BILL: Energy Adviser Who Solicited Enron to Help Write Nat’l Energy Policy Named Chair of FERC


By Jason Leopold
© 2005 Jason Leopold

The audacity inside the Bush administration never ceases to amaze.

The latest example of chutzpah from Bush and co. was the announcement by the White House last month that Joseph Kelliher, a former policy adviser with the Department of Energy who served as a commissioner on the Federal Energy Regulatory Commission, the agency that controls the country's natural gas industry, hydroelectric projects, electric utilities, and oil pipelines and has played a critical role in the deregulation of those industries, will be the new chair of FERC.

President Bush had previously picked Rebecca Klein, the former Republican head of the Texas Public Utilities Commission and a close friend of the president, to chair FERC but red flags were raised during a routine FBI background check on Klein which forced the president to choose a new chairman at the last minute. The White House would not comment on the FBI’s probe on Klein. Klein did not return numerous calls for comment.

Still, news of Kelliher’s appointment to chair FERC came late Wednesday as a welcome surprise to many industry lobbyists and energy executives who view him as a staunch supporter of the free-market principles of deregulation and an advocate for eliminating regulatory restrictions that interferes with the free-market, despite the fact those rules are in place to protect consumers from energy price gouging and market manipulation that took place prior to the Enron scandal four years ago and, to some extent, is still somewhat routine in various parts of the country.

However, what’s most troubling about Kelliher’s appointment to head FERC, a role in which his main priority will now be to protect consumers from the manipulative tactics of the very industry he enjoys a cozy relationship with, is the relentless lobbying of bigwigs in the energy industry in early 2001, as a member of Vice President Dick Cheney’s energy task force, to help write President Bush’s National Energy Policy in such a way that would be financially beneficial to energy corporations—at the expense of consumers.

The extent to which Kelliher’s went to solicit key players in the energy industry to help write the National Energy Policy became apparent in 2003 when Judicial Watch, a bipartisan watchdog group that sued Vice President Dick Cheney to gain access to Cheney’s list of industry insiders who participated in secret meetings with Cheney’s energy task force, won a legal battle that forced the White House to release several hundred pages of task force related documents.

One such document, a March 10, 2001 email to energy lobbyist Dana Contratto, was damning in that Kelliher asked Contratto if he was “King” or “Il Duce” “what would you include in a national energy policy, especially with respect to natural gas issues?"

Contratto responded with a three-page list of ideas, many of which were included in the final version of the energy policy.

“Kelliher’s inappropriate relationship and communications with corporate lobbyists not only tainted the administration’s National Energy Policy, but raise questions about the ability of Mr. Kelliher to be an impartial voice at FERC,” Public Citizen Director Joan Claybrook said in a Feb. 11, 2003 letter sent to the Senate Committee on Energy and Natural Resources, in response to Bush’s announcement that Kelliher would fill one of the vacant seats on the FERC.

“FERC is weathering a storm of criticism for its deficient handling of the west coast energy crisis, the Commission’s failure to maintain any effective enforcement of dozens of corrupt energy corporations, the deteriorating relations between FERC and nearly half of the state utility regulators who continue to be mistrustful of the Commission’s jurisdictional intentions, and the Commission’s poor track record protecting consumers,” Claybrook said.

On another occasion, Kelliher sought out Stephen Craig Sayle, an Enron Corp. lobbyist, to make similar recommendations. Sayle, former counsel for the House Commerce Committee, sent Kelliher Enron’s "dream list," including a recommendation that the administration commit to market-based emissions trading, which was also used in administration’s National Energy Policy.

Sayle wrote Kelliher that the energy policy should also include “a multi-pollutant regulatory strategy should be estimated for the power generation sector including: Gradually phased in [mercury, nitrogen oxides and sulfur dioxide emissions] reductions; Reform/replacement of NSR; Use of market-based/emission trading programs; Inclusion of both existing and new plants and equal treatment for both. The last bullet is the critical one to ensure that: a) we encourage the new generation that is required b) we ensure that the new technologies developed through DOE programs can come into the market.

“Obviously, this is a dream list,” Sayle said in the March 23, 2001 email he sent to Kelliher. “Not all will be done. But perhaps some of these ideas could be floated and adopted.”

Sayle also provided Kelliher with a PowerPoint presentation on behalf of his other energy clients in the so-called Clean Power Group, a consortium made up of a handful of the country’s biggest energy companies, including NiSource Inc., Calpine Corp., Trigen Energy Corp., and El Paso Corp, whose mission, according to the group’s website, is to “streamline requirements under the Clean Air Act for electric generating facilities while at the same time making major reductions in air emissions.”

The PowerPoint presentation, A Comprehensive Multi-Pollutant Emission Control Strategy for Power Generation, summarized the Clean Power Group’s support of a “cap and trade” method in addressing emissions of mercury, nitrogen oxides and sulfur dioxide from power plants, but included a proposal for a voluntary cap on carbon dioxide. The Clean Power Group stood to benefit from the initiative it urged Kelliher to get the White House to adopt in that the companies could release more emissions under its proposed plan than under the more restrictive rules the Clinton administration had put in place.

After receiving Sayle’s email and supporting material, Kelliher recommended that President Bush “direct the Administrator of the Environmental Protection Agency (EPA) to propose multi-pollutant legislation that would establish a flexible, market-based program to significantly reduce and cap emissions provide regulatory certainty to allow utilities to make modifications to their plants without fear of new litigation; provide market based incentives, such as emissions-trading credits to help achieve the required reductions,” all of which the president approved and was eventually incorporated into the National Energy Policy.

In fact, President Bush’s “Clear Skies” initiative consists of many of the bullet points laid out months earlier in Sayle’s email to Kelliher.

In addition to Kelliher correspondence with Sayle, he also met with oil and gas industry lobbyists who helped write executive orders that Kelliher passed on directly to the White House. Two months later, the president issued executive orders nearly identical to those Kelliher received from the lobbyists months earlier.

Jason Leopold is the author of the explosive memoir, News Junkie, to be released in the spring of 2006 by Process/Feral House Books. Visit Leopold's website at www.jasonleopold.com for updates.

Thursday, July 14, 2005

Karl Rove May Have Lied to Federal Agents, a Crime, During Oct 2003 Testimony Into CIA Agent Leak



By Jason Leopold
(c) 2005 Jason Leopold

Looks like Karl Rove did break the law, the same federal law that got Martha Stewart sentenced to six months in prison.

It now appears that Rove, President Bush’s deputy chief of staff, may have lied to the FBI in October 2003—a federal crime—when he was questioned by federal agents who were investigating the source responsible for leaking the true identity of an undercover CIA operative to the media.

During questioning by the FBI about his role in the Valerie Plame affair, Rove told federal agents that he first started sharing information about Plame's undercover status to reporters and White House officials after conservative columnist Robert Novak identified her as a covert spy in his column on July 14, 2003.

But Rove wasn’t truthful with the FBI what with the recent disclosure of Time magazine reporter Matthew Cooper’s emails, which reveal that Rove spoke to Cooper about Plame nearly a week before Novak's column was published. Rove, we now know, was the source for Cooper’s own July 2003 story identifying Plame as a CIA operative. Cooper's email correspondence with his editor proves as much. In addition, according to previously published news reports, Rove spoke to a half-dozen other reporters about Plame as early as June 2003.

“It was, KR said, (former Ambassador Joseph) wilson's wife, who apparently works at the agency on wmd [weapons of mass destruction] issues who authorized (Wilson’s) trip," Cooper’s July 11, 2003, email to his editor, obtained by Newsweek, says. “Wilson's wife is Plame, then an undercover agent working as an analyst in the CIA's Directorate of Operations counterproliferation division. (Cooper later included the essence of what Rove told him in an online story.) The e-mail characterizing the conversation continues: "not only the genesis of the trip is flawed an[d] suspect but so is the report. he [Rove] implied strongly there's still plenty to implicate iraqi interest in acquiring uranium fro[m] Niger ... "

Moreover, evidence suggests that President Bush was aware as early as October 2003 that Rove and I. Lewis “Scooter” Libby, Vice President Dick Cheney’s chief of staff, were the sources who leaked Plame’s undercover CIA status to reporters and after the president was briefed about the issue the president said publicly that the source of the leak will never be found.

Furthermore, a few aides to Condoleeza Rice, then head of the National Security Council, may have played a role as well by being the first officials to learn about Plame’s role as a CIA operative and then gave that information to Rove, Libby and other senior administration officials who used it to undermine former Ambassador Joseph Wilson's credibility.

Wilson, an outspoken critic of the Iraq war had alleged that President Bush misspoke when he said in his January 2003 State of the Union address that Iraq had tried to acquire yellow-cake uranium from Niger.

Wilson knew the statement was false because was recommended by Plame, his wife, to travel to Niger more than a year earlier to investigate the yellow-cake claims. Rove, Libby and other administration officials sought to discredit Wilson because they claimed that Wilson had said publicly that he was sent to Niger at the request of Cheney's office. Cheney did in fact contact the CIA at first to arrange the mission but Plame ultimately recommended Wilson. Still, in February 2002, Wilson traveled to Niger and reported back to the CIA that intelligence reports saying Iraq attempted to purchase uranium from Niger were false.

Here’s the fullest account yet of how the events leading up to the disclosure of Plame's identity unfolded, and how it all leads back to Rove. But first let’s get to the real story behind the leak, the catalyst behind this issue.

Bush and senior administration officials mislead Congress and the public into supporting a war predicated on the fact that Iraq was concealing weapons of mass destruction that threatened its neighbors in the Middle East and posed a grave threat to the United States.

In his State of the Union address in January 2003, two months prior to the Iraq war, Bush said Iraq tried to buy yellow-cake uranium, the key component used to build a nuclear bomb, from Niger. The uranium claim was the silver bullet in getting Congress to support military action two months later. To date, no weapons of mass destruction have been found in Iraq and the country barely had a functional weapons program, according to a report from the Iraq Survey Group.

Like other officials who were attacked for speaking out against Bush's rationale for war, including former Treasury Secretary Paul O’Neill and counterterrorism expert Richard Clarke, both of whom provided evidence that Bush and senior members of his administration of being obsessed with attacking Iraq shortly after 9/11 and manipulating intelligence reports as a way to get Congress and the public to back the war, the White House launched a full-scale attack against Wilson beginning in June 2003, when Wilson was quoted anonymously in various news reports as saying that the 16 words in Bush State of the Union address alleging that Iraq sought yellow-cake uranium from Niger was totally untrue.

On July 14, 2003, Novak first disclosed Plame by name in his column as well as her undercover CIA status, citing two “senior administration officials.” Novak said Wilson wasn’t trustworthy because his wife recommended him for the trip to Niger.

According to a preliminary FBI investigation, White House officials, including Rove and Libby, first learned of Plame’s name and CIA status in June 2003 when questions surrounding Wilson’s Niger trip were first brought to the attention of Cheney’s aides by reporters, according to an Oct 13, 2003 report in the Washington Post.

“One reason investigators are looking back (to June 2003) is that even before Novak's column appeared, government officials had been trying for more than a month to convince journalists that Wilson's mission wasn't as important as it was being portrayed,” the Post reported.

Several CIA officers assigned to the White House and working mainly on the National Security staff may have been the first individuals to have learned that Plame was an undercover operative and that Wilson was her husband. According to Oct. 13, 2003 story in the Post, a “former NSC staff member said one or more of those officers may have been aware of the Plame-Wilson relationship” and briefed Cheney and Rove about her status, that she was married to Wilson and that she recommended him for the fact-finding trip to Niger.

A May 6, 2003, column by Nicholas Kristoff in the New York Times was the first public mention of Wilson's trip to Niger but Kristoff’s column did not identify Wilson by name. Kristoff had been on a panel with Wilson four days earlier and said that Wilson told him that intelligence documents that proved Iraq attempted to buy uranium from Niger were forged and the White House should have known that before allowing Bush to include it in his State of the Union speech.

Wilson told Kristoff he could write about his trip and the forged documents but asked the columnist not to print Wilson’s name as the source behind those statements. The column also mentioned for the first time the alleged role Cheney’s office played in sending Wilson to Niger.

“That was when Cheney aides became aware of Wilson's mission and they began asking questions about him within the government,” the Post reported, citing an unnamed administration official.

Shortly after Kristoff’s column appeared in the Times, a handful of reporters started searching for Kristoff’s anonymous source.

At this time Wilson spoke to two congressional committees that were investigating why Bush had mentioned the uranium allegation in his State of the Union address. Also in early June, Wilson told his story to The Washington Post on the condition that he not be named. On June 12, 2003, the Post published a detailed account of Wilson’s trip and the fact that there was no truth to the claims that Iraq had tried to purchase yellow-cake uranium from Niger.

Beginning that week, officials in the White House, Cheney's office, the CIA and the State Department repeatedly played down the importance of Wilson's trip in interviews with several reporters, and his oral report to the CIA, which was turned into a one-page CIA intelligence memo for the White House and the National Security Council. By tradition, Wilson’s identity as the source, even though he traveled to Niger on behalf of the CIA, was not disclosed.

As soon as the Post’s story was published a number of officials in the Bush administration became concerned and started questioning who Wilson was and why he was criticizing the president, a senior administration official told the Post.

By Wilson’s own account, he said he ratcheted up the pressure on the White House to come clean about its error in giving credence to the Niger uranium claims by calling some present and former senior administration officials who knew then National Security adviser Condoleezza Rice, asking his colleagues to tell Rice she was flat wrong in saying on NBC's "Meet the Press" on June 8 that there may be some intelligence "in the bowels of the agency" but that there was no doubt the uranium story was true.

Wilson said Rice told him through intermediaries that she was uninterested in what he had to say and urged Wilson to tell his story publicly if he wanted to state his case. So he did.

On July 6, 2003 Wilson was interviewed for a story that appeared in the Washington Post and accused the White House of "misrepresenting the facts on an issue that was a fundamental justification for going to war." That same day he wrote an op-ed in the New York Times which said that "some of the intelligence related to Iraq's nuclear weapons program was twisted to exaggerate the Iraqi threat."

The very next day, July 7, 2003, the White House admitted it had erred in including the references about uranium in Bush's State of the Union speech. Two days later, two top White House officials disclosed Plame's identity to at least six Washington journalists, an administration official told The Post in an article published Sept. 28, 2003.

Those two officials were Karl Rove and Lewis Libby.

“The source elaborated on the conversations last week, saying that officials brought up Plame as part of their broader case against Wilson,” the Post reported in the Sept. 28, 2003 story.

On July 12, 2003, two days before Novak wrote his column, a Washington Post reporter was told by an administration official that the White House had not paid attention to the former ambassador's CIA-sponsored trip to Niger because it was set up as a boondoggle by his wife, an analyst with the agency working on weapons of mass destruction. Plame's name was never mentioned and the purpose of the disclosure did not appear to be to generate an article, but rather to undermine Wilson's report.

That source was Karl Rove and the unidentified reporter was Walter Pincus who covers the White House for the Washington Post.

Time magazine reporter Matthew Cooper’s emails show that Rove gave Cooper the same exact information about Plame that he gave to the Post. Moreover, Rove called several other reporters that week in July 2003 and reportedly said that Wilson’s wife was “fair game” because Novak had already blown her undercover status by identifying her in his column.

A day earlier, on July 11, 2003, the day Rove spoke with Cooper about Plame on what Cooper referred to as "double secret super background," Cooper also interviewed Libby on the record about Wilson's trip to Niger.

Libby told TIME: "The Vice President heard about the possibility of Iraq trying to acquire uranium from Niger in February 2002. As part of his regular intelligence briefing, the Vice President asked a question about the implication of the report. During the course of a year, the Vice President asked many such questions and the agency responded within a day or two saying that they had reporting suggesting the possibility of such a transaction. But the agency noted that the reporting lacked detail. The agency pointed out that Iraq already had 500 tons of uranium, portions of which came from Niger, according to the International Atomic Energy Administration (IAEA). The Vice President was unaware of the trip by Ambassador Wilson and didn't know about it until this year when it became public in the last month or so. "

A few months later, on Oct. 7, 2003, President Bush and his spokesman, Scott McClellan, said during a press conference that the White House ruled out three administration officials—Rove, Libby and Elliot Abrams, a senior official on the National Security Council, as sources of the leak—a day before the FBI questioned the three of them—based on questions McClellan said he asked the men.

A day later Rove told FBI investigators that he spoke to journalists about Plame for the first time after Novak’s column was published—a lie, it appears—based on Time reporter Matthew Cooper’s emails, the contents of which were reported by Newsweek earlier this month.

That same day in October 2003, in an unusual move, Bush said he doubted that a Justice Department investigation would ever turn up the source of the leak, suggesting that it was a waste of time for lawmakers to question the administration and for reporters to follow up on the story.

"I mean this is a town full of people who like to leak information," Bush told reporters following a meeting with Cabinet members on Oct. 7, 2003. "And I don't know if we're going to find out the senior administration official. Now, this is a large administration, and there's lots of senior officials. I don't have any idea.”

Sen. Frank Lautenberg, Democrat of New Jersey, responded to the president’s statement in an Oct. 10, 2003, interview with the New York Times.

“If the president says, 'I don't know if we're going to find this person,' what kind of a statement is that for the president of the United States to make?'' Lautenberg asked. “Would he say that about a bank-robbery investigation?”

During this time the White House was facing a deadline on turning over documents, emails and phone logs to Justice Department officials probing whether or not the leak came from the White House. Bush said that the White House could invoke executive privilege and withhold some “sensitive” documents related to the leak case leading many Democrats to believe that the White House had something to hide.

At the same time, the White House first started to lay the groundwork for a defense, specifically related to the role Rove played in the leak and whether he or anyone else in the administration knew Plame was covert CIA operative and intentionally blew her cover in order to undercut Wilson’s credibility.

On Oct. 6, 2003, McClellan, in response to questions about whether Rove was Novak’s source, tried to explain the difference between unauthorized disclosure of classified information and "setting the record straight" about Wilson’s public criticism of the administrations handling of intelligence on Iraq.

“There is a difference between setting the record straight and doing something to punish someone for speaking out,” McClellan said. "There were some statements made (by Wilson) and those statements were not based on facts," McClellan said. "And we pointed out that it was not the vice president's office that sent Mr. Wilson to Niger. (CIA Director George) Tenet made it very clear in his statement that it was people in the counter proliferation area that made that decision on their own initiative."

The difference is crucial in that knowingly making an unauthorized leak of classified information is a federal crime. But repeating the leak when it has already been reported may not be considered a serious offense.

Still, when the Justice Department failed to convict Martha Stewart on insider trading charges, prosecutors had enough evidence to convince a jury that the style maven lied to federal investigators and obstructed justice. She wound up with a felony conviction and six months in jail.

Now that the evidence shows that Karl Rove and others White House officials lied to federal investigators about what they knew and when they knew it maybe they too will meet the same fate.

Jason Leopold is the author of the explosive memoir, News Junkie, to be released in the spring of 2006 by Process/Feral House Books. Visit Leopold's website at www.jasonleopold.com for updates.