Royalty Collectors Misconduct
September 10, 2008
03:59 PM
Investigators today released a report detailing a number of questionable activities, including unethical and potentially criminal conduct, by Federal employees responsible for collecting royalties from companies that produce oil and gas from public lands. The three-part Inspector General’s report is part of ongoing inquiries into problems with the way the Department of the Interior manages its royalty collection programs.
At the center of the IG’s investigation are concerns about the adequacy and integrity of conflict of interest and ethics rules as they pertain to the Minerals Management Service (MMS) — the agency responsible for ensuring that American taxpayers get their fair share of the revenues for existing and any expanding drilling on Federal lands and the Outer Continental Shelf. Given the recent history of ethical controversies at the Department of the Interior, Chairman Bingaman and Subcommittee Chairman Ron Wyden last year asked the Inspector General to look into precisely these issues, specifically with respect to royalty programs.
Sen. Bingaman: “The improper activities detailed in this report are extremely troubling. From my vantage point, this investigation raises very serious questions about management and organization at the Interior Department. American taxpayers deserve to have confidence that their interests are being protected when it comes to collecting royalties from the production of public oil and gas resources, especially given the potential for expanded domestic drilling. Unfortunately, that confidence has been eroded by the activities exposed by the IG, widely-reported whistleblower claims and the findings of the Government Accountability Office — where additional reviews of the Federal royalty program are ongoing.
“Congress needs to ensure the Department has the right tools at its disposal to facilitate the accurate collection of royalties, and I will continue to push for some basic reforms in any drilling bill that’s considered. But meanwhile, as we continue to assess more fully the future of the Royalty-in-Kind program, the Secretary should take immediate steps to implement the IG’s recommendations for enhanced ethics reform.”
Sen. Wyden: “The Inspector General makes it very clear that drastic action needs to be taken. This isn’t about a few renegade individuals. It’s about a government agency fostering a culture of disrespect for both the public’s resources and trust. It’s time to clean house at the Minerals Management Service. We also need to bring back the process of rigorous audits and establish a level of accountability for employees that makes it crystal clear that the federal government will no longer employ anyone serving any interest other than the public’s.”
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