Chapter Thirteen

Companies involved in the HAARP project are both interesting and mysterious. The evolution of the HAARP contract is a story within this story.

Atlantic Richfield Company (ARCO) created a subsidiary called ARCO Power Technologies Incorporated (APTI) which was based in Washington, D.C. The company had reported annual sates of $5 million and had 25 employees as late as 1992.134 ARCO, the parent company, is the second largest private employer in Alaska, primarily involved in the North Slope oil fields where it controls trillions of cubic feet of natural gas and billions of barrels of oil.


The natural gas on the North Slope has been reinjected into the earth rather than "flared" off or produced for use as it is in most other parts of the world. The gas has been reinjected in order to maintain oil field pressure for enhanced production while pumping up to two million barrels of crude oil a day out of the ground. No market for this natural gas currently exists, although a $20 billion pipeline remains on the drawing boards.


Finding a market for the gas is in the interests of ARCO. The site where the HAARP project has been built is close to an already granted right-of-way for a future TransAlaska Gas Pipeline. All of the significant regulatory hurdles have been passed for constructing the gas line should markets be found.

HAARP at its present stage does not represent a high energy consumer in terms of input power. The first two phases of the project might not consume more than one to ten megawatts of power. In the future, however if the project continues to grow the way that project planners want it to or expands to involve other facilities, power demands would sharply increase. ARCO originally hoped to find a large consumer for their presently unmarketable natural gas. It was this market search which brought Dr. Eastlund together with ARCO in the mid 1980's, and his inventive genius gave birth to APTI.

Eventually ARCO was able to cluster twelve patents that would provide the basis for new markets for their North Slope natural gas. The possibility of not even having to transport the gas far from the source was an even more promising possibility - a possibility which would put ARCO in the Star Wars business.

How does a small subsidiary company like APTI get a military contract for such a project?


The contract with APTI was more than five times the organization's projected annual sales 135. We believe that the only way a virtually unknown company, in the military contracting environment, could get a contract like this is if they possessed proprietary information of use in the project (i.e., the twelve APTI patents).


This fact was recently confirmed by Dr. Eastlund who was interviewed by Jeane Manning. He said APTI was formed a year after he made his discovery while under contract to ARCO to find a use for their gas. The company was formed to develop his patent by encouraging the military to test and eventually build the system.


134 America's Corporate Families. 1993, Volume I, page 156.
135 Ibid.

The military has continued to deny the connection between Eastlund, APTI and HAARP throughout the project. However, the three Eastlund patents were all assigned to APTI. 136 The other nine patents, according to the Patent Office records, were also assigned to APTI by their inventors. This begins to unravel the disinformation spin of the HAARP planners.


APTI won the contract to build HAARP, while bidding against an experienced government contractor with a strong success record - Raytheon. Raytheon was number 52 on the Fortune 500 list for 1993 and is one of the biggest defense contractors in the world. In the bid rating process with the military the only thing that APTI had going for it was a set of twelve compelling patents.

APTI's twelve patents are discussed in another chapter. These patents were used in the HAARP project and some of their inventors were listed as "key personnel" in the HAARP contract with APTI. Also, according to the contract if APTI switched any of the key personnel they could lose the entire project.

After the contract was awarded, APTI was sold to E-Systems of Dallas, Texas. The June 10, 1994 sale was transacted under undisclosed terms, APTI had shown no net income since it opened in the late 1980's, which made the sale particularly interesting. 137 It was reported that APTI was involved in research financed by government grants. E-Systems changed the name of the company to Advanced Power Technologies Incorporated, and assumed control of the patents and the HAARP project. 138


E-Systems reported annual sales of $1,9 billion a year, had 18,662 employees 139 (1992) and is one of the largest intelligence contractors in the United States. So why would E-Systems buy a company with no net income and no major assets except for the twelve patents and an unfunded second phase of a construction contract? The only real value was the contract, and the technology in the package of patents.

E-Systems was the subject of a lengthy article in the Washington Post by staff writer John Mintz. He disclosed that E-Systems' technologies were "part of the central nervous system for the nation's intelligence community." $1.8 billion of their $2.1 billion in sales was for classified projects. A large part of the projects came from the National Security Agency (NSA) and Central Intelligence Agency (CIA) and other intelligence organizations.


Many of the company employees are former personnel from the NSA, CIA and military retirees. People with highly technical backgrounds and a history of working in government intelligence circles are hired by the company almost automatically, according to the Washington Post article. Retired Navy Admiral William Raborn, CIA director under Lyndon B. Johnson, for years served on the board of directors, 140

E-Systems was one of the featured stories in a CBS, 60 Minutes segment was aired February 26, 1995, The report echoed the assertions which were made in the Washington Post article.


136 United States Patent Numbers 4686605; 4712155; 5038664.
137 "E-Systems Buys ARCO Power Technologies", The New York Times, June 30, 1994.
138 Ibid.

139 America's Corporate Families. 1993, Volume I, page 552.

140 The Secret's Out; Covert E-Systems Inc. Covets Commercial Sales", by John Mintz, Washington Post, October 24,1994, pg, A1, A10.

The company was described as an organization operating in the "black world" - an area so secret that employees are not permitted by law to discuss anything about their work except with those individuals who have an official "need to know" classification. Of the company's annual sales, 85 percent was for classified work, with an estimated $800 million involved in projects so sensitive that the government denies that the projects even exist. The story went on to paint a picture of an organization which thrives on contracts issued by the CIA, NSA and military intelligence organizations.141

In the CBS, 60 Minutes segment, the secret relationship with the United States government was illustrated by describing one of E-Systems more public law suits. In the course of the law suit, a court order was issued which forbad the disclosure of E-Systems' classified relationship to the United States government.


The most unusual part of the order was that none of the parties to the suit could even disclose that the order existed or that the government had even sought such an order. Even more revealing about this shadowy organization was that no one was allowed to have a copy of the document. They could only view it for a few moments in the United States Attorney's office. They were not allowed to take notes or in any way record their comments about the order, and they were forbidden from even talking about the existence of the document, under threat of incarceration.


The order was so secret that even the judge could not have a copy of it, and could only view it upon special request. The secrecy of the document was appealed all the way to the United States Supreme Court where a ruling was issued which allowed the parties to talk about the order. Even now, nobody can get a copy of the document itself. 142

According to the E-Systems 1994 annual report to stockholders, their business mission is clear.

"Our core business activities continue to be focused on intelligence, reconnaissance and surveillance."

In the report they describe a number of their most promising prospects for increases in profits. They also describe the purchase of APTI from ARCO, although they do not indicate the amount paid. 143

The technologies that E-Systems developed are awesome. They include systems for law enforcement which can intercept faxed messages, telephone calls, modem transfers, and video transmissions on a single system in eavesdropping by the government.


Their Global Positioning System (GPS) technologies (satellite based) can locate objects anywhere in the world within one foot of the object's actual location. The refitting of aircraft for border monitoring and defense purposes are also disclosed in the report. The company's operations are mostly hidden, and the annual reports seem to be one of the few sources for information on the organization. 144

As this book was in its final days of writing, another twist to the corporate tangle occurred. Raytheon Corporation bought out E-Systems for $2.3 billion. 145

141 "E-Systems", 60 Minutes, CBS News, N.Y, N.Y,, February 26,1995.
142 Ibid.
143 "E-Systems, Inc. Nineteen ninety-four Annual Report to Stockholders"; March 10,1995.
144 Ibid.
145 "Raytheon to Acquire E-Systems for $64 a Share, or $2.3 Billion; Offer is 41% Premium Over Friday's Close; Rival Bid is Unlikely" by Steven Lipin and Jeff Cote, The Wall Street Journal, April 3, 1995, pges A1, A3 and A16.

The entire E-Systems' board of directors were kept as advisors for five years with full pay. The article went on to describe the company's main activities as super secret projects operated out of the Pentagon. Raytheon's profits mostly came from their government contracts, according to the same article.

So who is Raytheon, and why would they acquire E-Systems?


They are a $10 billion a year organization, ranked number 52 among the Fortune 500 with more than 60,000 employees. They were also one of the original bidders on the HAARP project, and now they have the patents and the Phase-Two contract on the project. Buying E-Systems will give Raytheon a significant increase in annual sales and cut competition in an environment of shrinking defense budgets.


The combination of these two organizations' resources will create one of the most powerful intelligence contractors in the world. The systems that these companies can now develop, as a single organization, will make those old Jules Verne stories look like Mother Goose. Those little grains of information on E-Systems appearing in their annual reports will cease to exist, as their existence is buried in the depths of their new owner's corporate identity.

APT1, when it was owned by ARCO, was relatively easy to keep track of because it was small. The patent records and the data surrounding ownership could be traced. Its purchase by E-Systems raised eyebrows and began to mask the assets behind a clouded corporate structure. With the takeover, it seemed that the HAARP project would go into the black world of hidden programs. HAARP was now at the bottom of the sea of the corporate structure of one of the largest private companies in the world.

Besides their newly acquired HAARP contract, E-Systems had developed a number of other technologies. They have developed clustered computer networks called EMASS systems which can store five trillion pages of text - a file pile that would reach a hundred and fifty miles high - from the surface of the Earth right into the ionosphere.


Their computer can sort data at lightning speed, and has applications in the oil industry for storing and sorting seismic information. 146 They also control once secret remote sensing equipment capable of mapping the Earth's underground formations. 147


These technologies, coupled with what APT1 brought together in their patents, formed an incredible technology package for one of the most profound weapon systems yet conceived. Could the marriage of technologies in these companies create the possibility of those types of uses contemplated in intelligence circles as necessary for the ultimate control of mankind through bloodless warfare and manipulation of mental functioning? E-Systems had amassed huge capabilities for the most secret organizations in the country, and had gained control of the HAARP technologies.

Now that it controls E-Systems and APT1 assets, Raytheon can develop even the most bizarre ideas of the military and intelligence communities. The integration of the patents, resources and capabilities into this huge organization can now produce even the most machiavellian dreams of "national security" thinkers...

146 "The Secret's Out: Covert E-Systems inc. Covets Commercial Sales", by John Mintz, Washington Post, October 24,1994, pg. A1, A10.

147 Ibid.


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