Oil and Gas Royalty Abuse Allegations

Representative Nick Rahall talked about the activities of an Interior Department agency’s conduct while collecting royalties from oil and gas companies and marketing oil and gas -- practices that led to an Inspector General’s report last week saying that Interior’s Minerals Management Service broke rules and created a “culture of ethical failure.” Representative Rahall, who is Natural Resources Committee Chairman, holds a hearing today on the report, with Inspector General Earl Devaney and Interior Secretary Dirk Kempthorne as witnesses. The report charges that some 13 agency officials steered contracts to favored clients, accepted expensive gifts, used drugs, and engaged in sex with some oil company executives. Representative Rahall also talked about energy legislation being discussed in Congress and responded to telephone calls and electronic mail. close