From staff and wire reports

LEWISTON – Pastor Paul McLaughlin was nearly speechless.

“Wow,” he said. “My soul. That is a blessing.”

McLaughlin directs the Hope Haven mission on Lincoln Street here. He just learned that the homeless shelter is in line to get about 3,000 gallons of heating oil, courtesy of Citgo Petroleum Corp. and the nation of Venezuela.

Citgo will donate 120,000 gallons of heating oil to 40 homeless shelters in Maine. That’s in addition to helping Indian tribes and the state’s poor heat their homes, state officials said Tuesday.

Citgo will sell 8 million gallons on the open market and donate $5.5 million – tantamount to a 40 percent discount – that will be used to provide an additional $100 benefit to Low Income Home Energy Assistance Program recipients in Maine.

In confirming the deal’s details, the Baldacci administration made no apologies for accepting aid from a country whose leader called President Bush “a madman.”

“The cost of heating oil has risen dramatically and the federal government has failed to provide the resources needed to help Maine citizens. We are grateful to Citgo and the Venezuelan government for their generosity,” Gov. John Baldacci said Tuesday.

Under the agreement, the discount from the sale of 8 million gallons of heating oil will be converted into a cash donation to the Maine State Housing Authority, which administers LIHEAP, Beth Nagusky, the governor’s top aide on energy matters, said Tuesday.

Citgo’s $5.5 million, combined with $5 million approved by state lawmakers last week, will bring LIHEAP funding to last year’s levels, Nagusky said.

Furthermore, Citgo is giving 120,000 gallons of heating oil free of charge to homeless shelters, Nagusky said. This oil will be delivered to more than 40 homeless shelters in Maine by their heating oil suppliers.

McLaughlin said the value of the oil – more than $6,000 at today’s prices – will go a long way toward alleviating a $24,000 shortfall projected for Hope Haven’s operations this year.

Multiple tragedies around the world last year led people who normally donate to Hope Haven to spread their donations around more. That in turn left the local homeless shelter hurting for funds, McLaughlin explained.

Besides shelters and the poor, Maine’s Native Americans also stand to benefit from Citgo’s generosity.

In a separate deal, Citgo will provide discounted heating oil directly to 912 households on or near reservations of the Passamaquoddy, Penobscot, Micmac and Maliseet Indians. That deal is worth $543,000 in savings, tribal officials said.

Critics contend Venezuelan President Hugo Chavez is simply trying to embarrass Bush by offering aid to Maine, Massachusetts and New York City. Separate deals are also in the works in Rhode Island and Vermont, officials say.

In a statement, Bernardo Alvarez, Venezuela’s ambassador to the U.S., said the offer of heating assistance is genuine.

“This Maine heating oil program represents the goodwill between the people of Venezuela and the United States. Help for those who need it most is a cornerstone of the new Venezuelan economy under President Chavez,” he said.

Citgo is a wholly owned subsidiary of Venezuela’s state oil company. Citgo has more than 160 gas stations across Maine.

One LIHEAP participant, Richard F. Smith, 75, of Auburn, said he has no serious qualms about accepting help from Venezuela.

The combined LIHEAP benefit from the Citgo and from the state adds up to $10.5 million, which equates roughly to 100 gallons of heating oil at the current average price of $2.36 per gallon. That’s enough to heat a home for several weeks, Nagusky said.

Even with the extra help, Smith expects to eat into his savings to keep his house warm this winter. “Every little bit helps,” he said.

(Sun Journal staff writer Doug Fletcher contributed to this report.)