Oil brokers sex scandal may affect drilling debate

By H. JOSEF HEBERT, Associated Press Writer 1 hour, 27 minutes ago

WASHINGTON - A scandal involving sex, drugs and — uh, offshore oil
drilling. It's a strange mix, and it couldn't have come at a worse time
for those in Congress pressing to expand oil and gas development off
America's beaches while trying to stave off an election-year rush by
Democrats to impose new taxes and royalties on the oil industry.

An Interior Department investigation describing a "culture of substance
abuse and promiscuity" by workers at the agency that issues offshore
drilling leases and collects royalties hit lawmakers Wednesday just as
they prepared for votes next week on expanding offshore drilling.

"On the eve of Congress starting this big debate you've got a horror
story of mismanagement and misconduct in programs that are going to be a
key part of the discussion," Sen. Ron Wyden, D-Ore., said in an
interview, adding that it can't help but influence the debate.

The two-year, $5.3 million investigation by Interior's inspector general
found workers at the Minerals Management Service's royalty collection
office in Denver partying, having sex, using drugs and accepting gifts
and ski trips and golf outings from energy company representatives with
whom they did government business.

The investigations exposed "a culture of ethical failure" and an agency
rife with conflicts of interest, Inspector General Earl E. Devaney said.

Between 2002 and 2006, 19 oil marketers — nearly a third of the Denver
office staff — received gifts and gratuities from oil and gas companies,
including Chevron Corp., Shell, Hess Corp. and Denver-based
Gary-Williams Energy Corp., the investigators found.

"Employees frequently consumed alcohol at industry functions, had used
cocaine and marijuana, and had sexual relationships with oil and natural
gas company representatives" who referred to some of the government
workers as the "MMS Chicks."

The director of the royalty program had a consulting job on the side for
a company that paid him $30,000 for marketing its services to various
oil and gas companies, the report said.

MMS Director Randall Luthi said in an interview the agency was taking
the report "extremely seriously" and would weigh taking appropriate
action in coming months.

But the impact in Congress, where lawmakers are debating an expansion of
the offshore oil and gas leasing program by allowing drilling in areas
long off limits, was immediate.

"This is why we must not allow Big Oil's agenda to be jammed through
Congress," said Sen. Bill Nelson, D-Fla., who strongly opposes any
expansion of offshore drilling, especially closer to Florida. He said
the report "shows the oil industry holds shocking sway over the
administration and even key federal employees."

"This IG report has it all — sex, drugs and the Bush administration
officials once again in cahoots with Big Oil," said Sen. Charles
Schumer, D-N.Y., whose Joint Economic Committee released a report last
year claiming the Minerals Management Service has failed to collect
millions of dollars in oil royalties.

Republicans and Democrats promised further scrutiny of the Interior
Department agency which last year handled $4.3 billion in
royalty-in-kind payments from energy companies drilling on federal
lands. Under the program oil companies give the government oil in lieu
of cash and the MMS office in turn sells the oil on the open market.

Sen. Jeff Bingaman, D-N.M., chairman of the Senate Energy and Natural
Resources Committee, said the IG report "raises very serious questions"
about the royalty collection process, something especially troublesome
"given the potential for expanded domestic drilling." He said some basic
reforms in the royalty-in-kind program should be included in drilling
legislation.

Wyden said the program should be suspended to "clean house" at the
federal agency and "bring back the process of rigorous audits and
accountability."

Rep. Henry Waxman, D-Calif., chairman of the House Oversight and
Government Reform Committee, planned a hearing on the investigation next
week. Two of the committee's key Republicans — Reps. Tom Davis of
Virginia and Darrell Issa of California — criticized Waxman for not
pursuing an investigation into the royalty program earlier.

But Republicans rejected suggestions that the scandal makes the need for
more offshore oil and gas any less urgent.

House Democrats on Wednesday offered a broader drilling proposal than
they had floated previously. It would lift all moratoria on drilling 100
miles from shore and allow energy development beyond 50 miles from the
coast if a state agrees. Waters closer than 50 miles would continue to
be protected.

The drilling measure is part of a broader energy package that also would
roll back tax breaks for the largest oil companies and require them to
pay additional royalties, with the money to be used to spur renewable
energy programs and conservation.

House Majority Leader Steny Hoyer, D-Md., called it "a strong bill that
will increase responsible drilling and invest in renewable energy" and
said those criticizing it would "rather have a political issue."

But House Republican leader John Boehner, R-Ohio, accused the Democrats
of "trying to pull a hoax on the American people." He said the plan
would result "in little or no new American energy production" because
states would share no royalties and have little financial incentives to
allow drilling.

The Senate, meanwhile, is expected next week to take up several drilling
proposals, including one that would open waters off the Atlantic from
Virginia to Georgia and the eastern Gulf off Florida to drilling but
keep the bans in place elsewhere. That plan also would allow for a
50-mile coastal buffer.

___

"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate


damn, why did i choose the post office?.

Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate


damn, why did i choose the post office?.



You worked for the USPS?

On Sep 11, 7:21*pm, hk wrote:
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate

damn, why did i choose the post office?.

You worked for the USPS?

Whatever you do, do NOT get him mad.

Matt

"hk" wrote in message
. ..
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate


damn, why did i choose the post office?.

You worked for the USPS

yes

"Matt" wrote in message
...
On Sep 11, 7:21 pm, hk wrote:
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate

damn, why did i choose the post office?.

You worked for the USPS?

Whatever you do, do NOT get him mad.

Matt

-----------------------------------------------------------------------------

the USPS motto."we only kill our own"

whats it mean when the post office flag is at half mas?t.
we're hiring.

Raymond O'Hara wrote:
"hk" wrote in message
. ..
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate

damn, why did i choose the post office?.
You worked for the USPS

yes




I have a bit of history (positive) with several of the national unions
representing postal employees, many many years ago.

whats it mean when the post office flag is at half mas?t.
we're hiring.

ROFLOL!

--Mike

"Raymond O'Hara" wrote in message
...

"Matt" wrote in message
...
On Sep 11, 7:21 pm, hk wrote:
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate

damn, why did i choose the post office?.

You worked for the USPS?

Whatever you do, do NOT get him mad.

Matt

-----------------------------------------------------------------------------

the USPS motto."we only kill our own"

whats it mean when the post office flag is at half mas?t.
we're hiring.

Crap... my bad. I didn't realize it was a crosspost 'till after I hit send.
I'll do better....

--Mike

"Mike" wrote in message
...
whats it mean when the post office flag is at half mas?t.
we're hiring.

ROFLOL!

--Mike

"Raymond O'Hara" wrote in message
...

"Matt" wrote in message
...
On Sep 11, 7:21 pm, hk wrote:
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate

damn, why did i choose the post office?.

You worked for the USPS?

Whatever you do, do NOT get him mad.

Matt

-----------------------------------------------------------------------------

the USPS motto."we only kill our own"

whats it mean when the post office flag is at half mas?t.
we're hiring.

On Sep 12, 12:25 am, "Mike" wrote:
Crap... my bad. I didn't realize it was a crosspost 'till after I hit send.
I'll do better....

--Mike

"Mike" wrote in message

...

whats it mean when the post office flag is at half mas?t.
we're hiring.

ROFLOL!

--Mike

"Raymond O'Hara" wrote in message
.. .

"Matt" wrote in message
...
On Sep 11, 7:21 pm, hk wrote:
Raymond O'Hara wrote:
"HK" wrote in message
...
Oil brokers sex scandal may affect drilling debate

damn, why did i choose the post office?.

You worked for the USPS?

Whatever you do, do NOT get him mad.

Matt

-----------------------------------------------------------------------------

the USPS motto."we only kill our own"

whats it mean when the post office flag is at half mas?t.
we're hiring.

Gifts in the oil business, I am truly SHOCKED. Actually, I am
offended that the gifts were to Govt employees but lavish gifts
between oil companies and contractor have been the norm for years.
When I was a drill stem tester, we were encouraged to buy gifts for
drilling company and oil company reps. Expensive booze was expected.
We were supposed to get to know the company reps even better and offer
them ski trips to our company condo. Once we bought an expensive
shotgun for a company rep who liked quail hunting. On Thanksgiving,
our company bought smoked turkeys by the hundreds and passed them out
to people on rigs. One of my friends who was single met three female
geologists from G*&f (unnamed oil company) and invited them to the
company condo at Breckenridge for a week of fun.