Kansas attorney general Derek Schmidt, a GOP gubernatorial candidate, didn’t condemn gas companies under investigation. He might have a conflict of interest.

One year ago this week, winter storm Uri hit parts of the central and southern United States. Millions lost power during the record-setting cold, natural gas prices skyrocketed and 30 people died in Texas alone.

The astronomical heating bills prompted a flurry of condemnation from attorneys general throughout the region. That is, except Kansas AG Derek Schmidt, who himself makes money from natural gas drilling royalties.

The Kansas AG never condemned the gas companies outright. His first press release regarding the price spikes came five months after, in July 2021, when he petitioned to intervene in hearings with Kansas Corporation Commission on behalf of consumers.

The release mentioned, briefly, that his office had opened an investigation on Feb. 19, immediately after the storm, into “potential illegal acts,” by the gas companies.

Meanwhile, Arkansas AG Leslie Rutledge, a Republican, said her state’s consumers “must not face exorbitant utilities bills when the service provider resorted to purchasing energy at excessive prices in spot markets,” as she called on the Arkansas Public Safety Commission to investigate the utility companies.

Texas’ Republican AG Ken Paxton said he was using the “full scope” of his constitutional power to investigate the entities “that grossly mishandled this week’s extreme weather” and left Texans without power.

And Mike Hunter, the Republican AG from Oklahoma, said there was ”evidence that there’s been market manipulation.” He said his office would hold responsible those entities that “have taken advantage of the suffering of Oklahomans,” The Frontier reported.

During winter storm Uri, Kansas Gov. Laura Kelly issued a state of emergency. Among other measures, the state of emergency triggers Kansas’ anti-profiteering law, which prohibits price increases by more than 25% on necessary goods, according to the Kansas Reflector.

During the storm, natural gas prices increased by as much as 200 times their normal level, or 800 times the 25% cap.

In September, Schmidt issued another press release, saying he was seeking to “retain a law firm with expertise in the natural gas marketplace.” And that the price increases “appear to violate Kansas law.”

The Reflector later reported in December that, according to AG office spokesperson John Milburn, no law firms had responded to Schmidt’s request for proposals.

C.J. Grover, spokesperson for Schmidt’s gubernatorial campaign, directed a request for comment to John Milburn. Milburn did not responded to a request for comment by press time.

Schmidt may have a conflict of interest in this investigation.

In the same article from December, the Reflector said Schmidt owns 240 acres of land in eastern Kansas, along with a natural gas lease. Under Kansas law, property owners like Schmidt are entitled to royalties from drilling. That amount is usually between 12.5% and 25% of the amount the gas is sold for, depending on the contract.

The Reflector estimates Schmidt earns an average of $330 to $630 monthly, minus transport charges. That would have increased substantially, the paper said, but by how much is hard to estimate.

Emma O’Brien, spokesperson for the Kansas Democratic Party, said in an emailed statement that Schmidt had so far failed to deliver results or relief for Kansans impacted by last year’s price gouging.

“Considering his financial stake in the natural gas industry, it’s not hard to see why,” O’Brien said. “His shameful inaction will cost Kansans millions of dollars over the next decade — and he must recuse himself from this investigation immediately.”

(2/18: A previous version of this article cited Schmidt’s gubernatorial campaign manager as “C.J. Miller.” His name is C.J. Grover. The article has been edited to fix this mistake.)

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