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Pagan
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Sex, drugs and oil
Government officials handling billions of dollars in oil royalties are accused of receiving improper gifts and having sex with employees.


Last Updated: September 10, 2008: 4:27 PM EDT
WASHINGTON (AP) -- Government officials handling billions of dollars in oil royalties improperly engaged in sex with employees of energy companies they were dealing with and received numerous gifts from them, federal investigators said Wednesday.

The alleged transgressions involve 13 former and current Interior Department employees in Denver and Washington. Their alleged improprieties include rigging contracts, working part-time as private oil consultants, and having sexual relationships with -- and accepting golf and ski trips and dinners from -- oil company employees, according to three reports released Wednesday by the Interior Department's inspector general.

The investigations reveal a "culture of substance abuse and promiscuity" by a small group of individuals "wholly lacking in acceptance of or adherence to government ethical standards," wrote Inspector General Earl E. Devaney. Devaney's office spent more than two years and $5.3 million on the investigations.

The reports describe a fraternity house atmosphere inside the Denver Minerals Management Service office responsible for marketing the oil and gas that energy companies barter to the government instead of making cash royalty payments for drilling on federal lands. The government received $4.3 billion in such royalty-in-kind payments last year. The oil is then resold to energy companies or put in the nation's emergency stockpile.

Big Oil's Influence

Between 2002 and 2006, nearly a third of the 55-person staff in the Denver office received gifts and gratuities from oil and gas companies, including Chevron (CVX, Fortune 500), Shell (RDS.A), Hess Corp (HES, Fortune 500). and Denver-based Gary-Williams Energy Corp. the investigators found. Two oil marketers who received gifts and gratuities on at least 135 occasions displayed no remorse when confronted with their activities, Devaney said. He singled out Chevron as refusing to cooperate with the investigation.

Don Campbell, a Chevron spokesman, said Wednesday that the company "produced all of the documents that the government requested months ago."

The reports also said former head of the Denver Royalty-in-Kind office, Gregory W. Smith, used cocaine and had sex with subordinates. The report said Smith also steered government contracts to a consulting business that was employing him part-time.

Smith, contacted by e-mail by The Associated Press, said he had not seen the report and could not respond. He and nine other employees in the Denver office are mentioned in the reports.

MMS Director Randall Luthi, in an interview with the AP, said the agency was taking the report "extremely seriously" and would review the allegations and weigh taking appropriate action in coming months. The Inspector General is recommending that current employees implicated be fired and be barred for life from working within the royalty program.

House Natural Resources Chairman Nick Rahall, D-W.Va., said "this whole IG report reads like a script from a television miniseries and one that cannot air during family viewing time. It is no wonder that the office was doing such a lousy job of overseeing the RIK program; clearly the employees had 'other' priorities in that office."

One of the employees named in the investigation, Jimmy Mayberry, has already pleaded guilty in U.S. District Court in Washington to violations of conflict-of-interest laws. The Justice Department declined to prosecute Smith and former Associate Director of the Minerals Revenue Management program Lucy Querques Denett, who the report says manipulated contracts to ensure they were awarded to former Interior employees.

The findings are the latest sign of trouble at the Minerals Management Service, which has already been accused of mismanaging the collection of fees from oil companies and writing faulty contracts for drilling on government land and offshore. The charges also come as lawmakers and both presidential candidates weigh giving oil companies more access to federal lands, which would bring in more money to the federal government.

"This all shows the oil industry holds shocking sway over the administration and even key federal employees," said Sen. Bill Nelson, D-Fla. "This is why we must not allow Big Oil's agenda to be jammed through Congress."

While most government royalties for drilling on federal lands are paid in cash, the government in recent years has been receiving a greater share of its oil and gas royalties in the actual product. More of that oil is also being sold on the open market, versus being deposited in the Strategic Petroleum Reserve, the nation's emergency oil stockpile. Congress earlier this year passed a law halting deposits of oil to the reserve to alleviate high gasoline prices.

Interior Secretary Dirk Kempthorne, who was asked about the reports earlier in the day before they were given to him and congressional offices, said the investigation was prompted by a 2006 phone call from an employee who said there were ethical lapses in the Denver office.

"I look forward to having the opportunity to review the inspector general's findings so we can take the appropriate actions," Kempthorne said.

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It is impossible to make anything foolproof because fools are so ingenious.

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cottonjim
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Yes please.... oh, it wasn't a question, OK. Well, now you know where I stand anyways [Smile]

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If ignorance is bliss, why aren't more people happy?

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CashCowMoo
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Yeah..down with oil. I am sure this never happens in any other industry ever. Not saying its right, but sure is convenient to dig this up now over other industries.

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It isn't so much that liberals are ignorant. It's just that they know so many things that aren't so.

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The Bigfoot
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If they'd stop putting out misinformation and acting like they had something to hide I'd be a bit more understanding.

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No longer eligible for government service due to lack of tax issues.

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Lockman
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As the saying goes "It's always about MONEY".

War is about money, Peace is about money, Climate change is about money. It's always about the money, it makes the world go around.

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Let's Go METS!!!

Posts: 3317 | From: CT | Registered: Dec 2006  |  IP: Logged | Report this post to a Moderator
bond006
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Hi,Republicans lets give the oil companies more tax breaks and let them drill off shore.

Warmer world great for you beach goers.

And if your lucky maybe you can join in an orgy one day

Posts: 6008 | From: phoenix az | Registered: Mar 2005  |  IP: Logged | Report this post to a Moderator
Lockman
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quote:
Originally posted by bond006:
Hi,Republicans lets give the oil companies more tax breaks and let them drill off shore.

Warmer world great for you beach goers.

And if your lucky maybe you can join in an orgy one day

When you have to sit in a line to fill your gas tank you'll be for any means necessary to get it.
Or maybe you could hire some illegals to push you around. I hear American's don't want those jobs.

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Let's Go METS!!!

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bdgee
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Lockman,

The scare tactic sh-t that you talk to the exclusion of anythings that has even a hope of honesty and integrity is way overdone.

Hyped up crap like, "When you have to sit in a line to fill your gas tank you'll be for any means necessary to get it." is sick and crude.

The hell, I will "be for any means necessary to get it"! You are way out of line. Just because republicans are eager and willing to destroy the Constitution for the sake of gaining a one party fascist state DOES NOT mean Americans are "for any means necessary" to bring this nation to utter shame and destruction.

I don't object to you offering an opinion, however lopsided it is, but this constant scare sh-t that is based on and packed with nothing but lies is worse than disgusting and needs to be cleaned up.

"I hear American's don't want those jobs.", ya say?

From whom?

What you hear is any lie you think you can use to scare some other "ignorant by choice" or bigoted political ne'er-do well into pulling the republican lever, so you can hurry us into "party before country" fascism, like you are, even faster.

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bond006
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Lockman I have sat in a line to fill up.

So what are you saying I say screw the oil companies.

Or woul you prefer that I say lets all go to war kill a lot of people take the oil and I won't have to wait in a line.

Is that what you mean is that your only rational

Posts: 6008 | From: phoenix az | Registered: Mar 2005  |  IP: Logged | Report this post to a Moderator
Lockman
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quote:
Originally posted by bond006:
Lockman I have sat in a line to fill up.

So what are you saying I say screw the oil companies.

Or woul you prefer that I say lets all go to war kill a lot of people take the oil and I won't have to wait in a line.

Is that what you mean is that your only rational

What exactly do you think is going to happen if we no longer can get our fix of gas. The USA is addicted to oil and will react just as any other addict will.

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Let's Go METS!!!

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bond006
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If we wanted to in 10 years we could be off most oil related energy.

If we would have followed Carters energy policy in 1979 we would not be in this mess right now.

Thank your criminal Ronald Raegen who did away with Carters plan and let corpoate oil co's handle our energy policy

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bond006
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Our addiction to oil was made when gas was under a dollar a gallon.

We are using much less gas now and the numbers are declinning. I don't see riots.

As a matter of fact I think the American people are turning into sheep,they won't do anything maybe a little belly aching

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glassman
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In an interview with the Washington Times, McCain's top economic adviser Phil Gramm tells America to suck it up and stop complaining about the economy:

"You've heard of mental depression; this is a mental recession," he said, noting that growth has held up at about 1 percent despite all the publicity over losing jobs to India, China, illegal immigration, housing and credit problems and record oil prices. "We may have a recession; we haven't had one yet."


"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said.


From McCain's campaign:

"Phil Gramm's comments are not representative of John McCain's views. John McCain travels the country every day talking to Americans who are hurting, feeling pain at the pump and worrying about how they'll pay their mortgage. That's why he has a realistic plan to deliver immediate relief at the gas pump, grow our economy and put Americans back to work."


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Don't envy the happiness of those who live in a fool's paradise.

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glassman
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every so often in our nation's capital, we relearn this lesson when the excesses of traders and speculators, and the poor planning of politicians, catches up with them, and the troubles spread far beyond Wall Street and Washington. This has happened in recent months, at great cost to workers, small businesses, families, and homeowners across our nation. And calling these serious problems a "correction" in the market, or a "cycle" of the economy, doesn't make their situation any better, their jobs and homes any safer, their lives any easier.

Meanwhile, the people we expect to be most sober and level-headed in their economic decisions -- bankers and other home lenders -- forgot some of the basic standards of their own profession. Hard-working homeowners are learning for the first time about the endlessly complicated borrowing, bundling, and betting that has been going on in our capital markets. Americans worry about a system that allows 4 million bad loans to affect 51 million good ones. They wonder how assets can so quickly become liabilities, and why the high-risk schemes of a few were permitted to inflict such grievous harm on our entire financial system.

Americans are also right to be offended when the extravagant salaries and severance deals of CEO's -- in some cases, the very same CEO's who helped to bring on these market troubles -- bear no relation to the success of the company or the wishes of shareholders. Something is seriously wrong when the American people are left to bear the consequences of reckless corporate conduct, while Mr. Cayne of Bear Stearns, Mr. Mozilo of Countrywide, and others are packed off with another forty- or fifty million for the road.


http://www.johnmccain.com/informing/news/Speeches/9bb4e69a-36cc-4ca3-b40d-0cdd41 a1b812.htm

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Don't envy the happiness of those who live in a fool's paradise.

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glassman
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In the same way, many in Congress think Americans are under-taxed. They speak as if letting you keep your own earnings were an act of charity, and now they have decided you've had enough. By allowing many of the current low tax rates to expire, they would impose -- overnight -- the single largest tax increase since the Second World War. Among supporters of a tax increase are Senators Obama and Clinton. Both promise big "change." And a trillion dollars in new taxes over the next decade would certainly fit that description.

Of course, they would like you to think that only the very wealthy will pay more in taxes, but the reality is quite different. Under my opponents' various tax plans, Americans of every background would see their taxes rise -- seniors, parents, small business owners, and just about everyone who has even a modest investment in the market. All these tax increases are the fine print under the slogan of "hope": They're going to raise your taxes by thousands of dollars per year -- and they have the audacity to hope you don't mind.

They and others argue that the tax increase is necessary in part to finance Social Security and Medicare. Unfortunately, this claim only serves to remind us of Congress' consistent failure to repair both of these programs even under the best of circumstances. For years, Congress has been buying time, and leaving the great challenge of entitlement reform for others to deal with. And now the two contenders in the other party have even proposed enormous new federal commitments before the old commitments have been kept -- trusting that others, somewhere down the road, will handle the financing and make all the numbers come out right.

But there will come a day when the road dead-ends, and the old excuses seem even more hollow. And it won't be the politicians who bear the consequences. It will be American workers and their children who are left with worthless promises and trillion-dollar debts. We cannot let that happen. And you have my pledge: as president I will work with every member of Congress -- Republican, Democrat, and Independent -- who shares my commitment to reforming and protecting Medicare and Social Security.


http://www.johnmccain.com/informing/news/Speeches/9bb4e69a-36cc-4ca3-b40d-0cdd41 a1b812.htm

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Don't envy the happiness of those who live in a fool's paradise.

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glassman
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McCain said in this speech he wants to cut the corporate tax rate from 35% to 25%...

that's fine if he closes some loopholes that allow alot of co's to pay nothing at all...

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Don't envy the happiness of those who live in a fool's paradise.

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wallymac
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That's why he has a realistic plan to deliver immediate relief at the gas pump, grow our economy and put Americans back to work."

HOW??????????

But there will come a day when the road dead-ends, and the old excuses seem even more hollow. And it won't be the politicians who bear the consequences. It will be American workers and their children who are left with worthless promises and trillion-dollar debts. We cannot let that happen. And you have my pledge: as president I will work with every member of Congress -- Republican, Democrat, and Independent -- who shares my commitment to reforming and protecting Medicare and Social Security.

Once again the question is HOW? especially with his promise to cut taxes.

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Highwaychild
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And this is just what's being reported... the fall guys.
now they can corrupt the rest of the politicians!

Posts: 2634 | From: The highway | Registered: Feb 2004  |  IP: Logged | Report this post to a Moderator
   

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