Environment: Alaska, Bush, local politicians and oil companies.

The trial of Bill Allen, chief executive officer of VECO has begun and ended with a guilty plea. It's a story that has gained little attention outside Alaska - and by definition that means outside the relatively small town of Anchorage. But it's a story that has an impact right across the USA and - arguably - the world as the battle for control of the Alaskan wilderness continues.

President Bush came to power off the back of a major crisis: US cities - particularly in California - were having brownouts (low power) several hours each day and often total blackouts. The reason? There was simply not enough electricity to power the Californian lifestyle and as the air conditioners kicked in, the power supply kicked out.

Bush promised to fix it. It is that promise that is, at least in part, at the root of his refusal to comply with Kyoto - he knows that power generation and supply was one of the most powerful issues that won him the White House and he is not going to mess with that, especially given the weakness of the economy and the problems he has suffered as a result of Iraq.

Bush had one principle strategy in relation to power supply: get more oil. And he had friends who knew how and where to get it. Huge deposits sit beneath the Alaskan tundra.

But the Alaskan tundra is protected land. And environmentalists who fought to have it protected are not giving up that protection without a fight.

There are valid arguments for saying that Bush's foreign policy has been driven by his plans to bring uncertainty to the oil industry: after all, if the US cannot rely on foreign oil supplies at reasonable cost, then surely the right thing to do - hand on heart and waving the flag - is to exploit domestic reserves and God Bless America.

So a pattern has emerged: Bush has disrupted Middle East supplies and caused huge increases in the price of oil; he has disrupted South American supplies, too, all in the name of foreign policy. His supporters claim that at least some of the actions are to secure oil supplies: that is an argument that was rarely credible and is increasingly unsustainable.

The case against the executives of Veco does not directly relate to Bush's actions. It relates to corruption in the state legislature. And it involves politicians of both major political parties - and demonstrates both the dangers of the so called "revolving door," of employment of part-time politicians and of conflicts of interest. But it also demonstrates just how blatant people can be when corruption is involved.

For it was not just Allen that was involved: the company's Vice President Rick Smith has also pleaded guilty. He was allegedly approached by a state senator (Republican Pete Kott) with financial problems who said, in effect "I need a job." Smith's response was words to the effect "I'll give you a job - you get us a pipeline." Later, Kott voted for lower oil tax figures. He allegedly tells Allen and Smith that he had to "cheat, steal, beg, borrow and lie" to get the decision pushed through. Allen's response was, according to court papers, "I own your arse." Later still, Kott told Allen that he was planning for his retirement from state politics and that he wanted to be a lobbyist. Allen reportedly said "you will be." Evidence has been put before the Court that Allen transferred from his personal account a sum exceeding USD7,000 to Kott's flooring business to meet a vastly inflated invoice in a transaction that was designed to be free from suspicion.

A plan to change the basis of oil company taxation from production (in effect a duty) to profits (in effect corporation tax) is tabled. Republican Senator Vic Kohring supports Veco's opposition to the plan which, it turns out, is part of a publicly disclosed state / producer deal with major producers Exxon Mobil, BP and Conoco Phillips who plan to fund and build a new pipeline. Kohring - now under indictment and due to stand trial next month - allegedly takes USD600 in cash - and asks the company to give him a job or a loan to help him pay off a credit card bill of some USD17,000.

Another Republican Bruce Weyhrauch approached Veco saying he wanted to discuss oil taxes. Shortly afterwards, and as the State Senate prepared to vote on oil taxes, Weyhrauch sent his CV to Veco. Six months later, he bluntly tells Allen and Smith that he is not doing well financially and asks for a job, and a discussion ensues.

Prosecutors have covered all the bases with the charges against Kott, Kohring and Weyhrauch who have been indicted for conspiracy to commit extortion and bribery.

The argument is that either they were approached and offered benefits in order to vote a particular way (bribery) or that they made approaches suggesting that, unless payments were made they would vote against the wishes of Veco. If the case does indeed go to trial next month, perhaps the truth will come out. Until then, one thing is clear: the admissions of guilt by Allen and Smith have demonstrated that politics is a dirty game in Alaska - and that it doesn't take much to buy influence amongst the very important.