Lawrence chimes in with this report:

In Vol.7 No. 4 Issue of 'Creative Screenwriting', this article caught my eye. Figured I'd share it with you...

THE FINAL WORD ON THE PHANTOM MENACE: At one of the many Hollywood parties the editorial staff of 'Creative Screenwriting routinely attends (Ha!), an interesting rumor purporting to be "the real story" of Frank Darabont's involvement with 'The Phantom Menace' was making the rounds. The rumor had the necessary specifics to lend it a bit of credibility, so I passed it on to Mr. Darabont for his response. Here is that rumor and response:

THE RUMOR: "George Lucas asked Frank Darabont to write and direct 'The Phantom Menace', the only hitch being that it had to be a non-DGA, non-WGA deal. Darabont agreed, but his agent decided that any negotiations for this deal needed to be conducted outside of the US. Thus, William Morris London and ultimately a private British attorney began negotiations. Ultimately, however, Darabont's side decided that he was too high-profile, that the guilds would certainly go after him, and that they would win in court because the "produced-outside-of-the-US" argument wouldn't hold up. This would mean court costs and costly settlements, so Darabont's side asked Lucas to indemnify him against these expenses...... for a total writing/directing fee of between $7-$8 million. Lucas/(producer)Rick McCallum balked and there was no deal."

FRANK DARABONT RESPONDS: Thanks for bringing this rumor to my attention and allowing me a forum to respond. The thing about this rumor that disturbs me, aside from its many inaccuracies, is that whatever kernels of truth it contains have been rearranged and twisted to cast me in the worst possible light. What horrifies me most is the suggestion that I ever "agreed" to take a non-guild job. That's a lie. Here's the truth: George Lucas approached me with the idea of my performing writing services on 'Phantom Menace.' (Please note that I'm being very specific and accurate when I say 'writing' services. At no time was there any discussion of my directing, because George was 'always' going to be the director of the film.) My agent, Robert Stein, contacted a British attorney representing George to see if a deal for my writing services could be negotiated. It was during this round of phone conversations that George's attorney made us aware that Lucasfilm did not intend to become a WGA signatory on the project. In other words, it was a non-guild job.

After realizing that George was not going to budge on this issue, my agent and I regretfully broke off further negotiations. I called George personally to explain my reasons. He, in turn, explained his. It is no secret that George has a long-standing enmity with both the WGA and DGA, which is why he renounced his membership in those guilds years ago, and why he now doesn't wish to become a signatory. I told him I understood that his feelings were deeply rooted, but that he couldn't expect me to take sides against my own guild for the sake of a writing assignment. He understood my position, we agreed my involvment on 'Phantom Menace' was not meant to be, and we parted friends. It's that simple. I don't know where your anonymous rumormonger dreamed up a "fee of between $7-$8 million"dollars, but it's a total fabrication, just as my being offered the directing position is a total fabrication. Our discussions with Lucasfilm never went far enough to even 'begin' talking money, because the guild issue was an unbreachable obstacle. As for "indemnifying" me against legal action, I can't vouch for what may or may not have been said amongst lawyers during at least a dozen overseas phone conversations, but proceeding on that basis would never have been an option for me.

When I joined the Writers Guild, I made a promise never to accept non-guild work, and I take that promise seriously. What bothers me most about the rumor is that it implies that I would consider breaching my trust with the WGA as long as the lawyers could figure out a way to cover my ass in court. That implication is false. Thanks again for allowing me to go on record with this. Perhaps you'll also be kind enough to fax a copy of this letter to the s***head running around town trying to soil my reputation by distorting these facts.

Sincerely yours,
Frank Darabont