Theseperps were entrusted with the management of minerals located on US government land. Members of this agency had sex with oil company employees.
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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.
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, Shell, Hess Corp. 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.
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.
US Minerals Management Agency in Trouble
