Federal officials in Colo. accused of drug use, sex with oil execs

Sex, drug scandal in fed oil office

By Gargi Chakrabarty, Rocky Mountain News (Contact), Roger Fillion, Rocky Mountain News (Contact)

Published September 10, 2008 at 12:54 p.m.

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Federal officials in Lakewood used illicit drugs, had inappropriate sex, and took ski and golf vacations from oil and gas executives who paid billions in royalties to the government office, an investigator said Wednesday.

Earl E. Devaney, the Interior Department's inspector general, detailed in three reports released Wednesday how 13 former and current employees worked in a party-like atmosphere inside the Lakewood headquarters of the department's Minerals Management Service.

The employees rigged contracts, worked part time as private oil consultants, accepted trips and dinners from oil and gas executives in addition to having sexual relationships with them, the reports allege.

Between 2002 and 2006, nearly a third of the 55-person MMS staff in the office received gifts and gratuities from oil and gas companies, including Chevron Corp., Shell, Hess Corp. and Denver-based Gary-Williams Energy Corp., the investigator found.

The investigation was prompted by a 2006 phone call from an MMS employee in the Lakewood office who reported ethical lapses.

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 Devaney, whose office spent more than two years and $5.3 million on the investigation.

"Sexual relationships with prohibited sources cannot, by definition, be arm's-length," Devaney said.

The federal agency will consider terminating the jobs of the cited employees, depending on the extent of their ethical misconduct, said MMS spokesman David Smith.

"Termination is a step we are willing to take if we determine that is appropriate," he said.

MMS director Randall Luthi, who was appointed by President Bush in July 2007, said Wednesday he will take actions before the end of this administration and "not leave it for the next director."

The 13 MMS employees named in the reports worked for the Royalty-in-Kind program, which markets oil and natural gas that energy companies barter to the government in lieu of cash royalty payments for drilling on federal lands and waters.

The oil and gas is then resold to energy companies or put in the nation's emergency stockpile. The government received $4.3 billion in such royalty-in-kind payments last year.

A major focus of the investigation was the former head of the program, Gregory W. Smith.

The reports accuse him of improperly accepting gifts from the oil and gas industry, engaging in sex with two subordinates and using cocaine that he purchased from his secretary or her boyfriend several times a year between 2002 and 2005. Smith also steered government contracts to a consulting business that paid him $30,000 for his work from April 2002 through June 2003, the reports said.

Smith's attorney, Steve Peters, called the investigation's claims "sheer fantasy."

"Greg Smith was a loyal, dedicated employee of the federal government for more than 28 years," Peters said Wednesday. "His efforts in running the Royalty- in-Kind program resulted in one of the most profitable government programs in American history."

Smith retired from the office in May 2007.

Two MMS oil marketers, charged with reselling oil that the government collects in lieu of cash, received gifts and gratuities on at least 135 occasions. One employee admitted having a one-night stand with a Shell employee.

That individual allegedly passed out business cards for her sex toy business Passion Parties Inc. at work, bragging that her income from that business exceeded her salary at the Interior Department, the reports said.

Two employees who had to spend the night after a daytime industry function because they were too drunk to drive home were commonly referred to by energy traders as the "MMS chicks."

"During the course of our investigation, we learned that some (MMS) employees frequently consumed alcohol at industry functions, had used cocaine and marijuana, and had sexual relationships with oil and gas company representatives," the reports said.

Of the cited employees, three have retired - including Lucy Q. Denett, the former MMS associate director who retired earlier this year.

Former employee Jimmy Mayberry has pleaded guilty to conflict of interest and faces a potential sentence of up to five years in prison and a $250,000 fine. The conflict of interest law sets a $20-per-gift limit or $50-a-year thresholds on outside gifts.

The Justice Department has declined to prosecute Denett and Smith, who worked in Lakewood and reported to Denett in Washington, D.C.

Devaney said the investigations took so long because Chevron refused to cooperate. A federal official said Chevron would not allow investigators to interview its employees.

Don Campbell, a Chevron spokesman, said the company has "cooperated with the government investigation and produced all of the documents that the government requested months ago."

Shell spokeswoman Darci Sinclair said, "Shell has been aware of the inspector general's investigation regarding alleged improper conduct by certain MMS employees and cooperated fully with that investigation."

Sally Allen of Gary-Williams Energy said the company cooperated with the investigation.

Maripat Sexton, a spokeswoman for Hess Corp., said the company's investigations "indicated no wrongdoing on our employees' part."

The findings are the latest sign of trouble at the Minerals Management Service, which already has 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 Congress and both presidential candidates debate whether to open up more federal offshore waters to oil and natural gas drilling.

"It is shocking and the issues raised are certainly significant," said Steve Wymer, spokesman for Sen. Wayne Allard, R-Colo., on Wednesday.

"Senator Allard expects that steps will be taken in response to this report, including potential congressional hearings and/or an investigation by the Department of Justice."

"This is a disgraceful breach of public trust," said Sen. Ken Salazar, D-Colo.

"The conduct detailed in this report shows a culture of corruption at a government agency that should be serving the public interest."

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."

Singled out

Following are eight local U.S. Interior Department employees identified in one of three reports issued by the department's inspector general.

* Stacy Leyshon: Employed by MMS since 1986. Between 2002 and 2007, worked as a supervisory minerals revenue specialist in the Royalty In Kind division.

* Crystel Edler: Employed by MMS since 1989. Was a RIK oil-marketing specialist from about 2001 until 2007, when reassigned to a new position within Minerals Revenue Management.

* Richard Fantel: Employed by MMS since 1997. Was an RIK oil-marketing specialist from 2002 through December 2006, when assigned to a new job within MMS. While in the RIK program, reported directly to Stacy Leyshon.

* Gary Peterson: Minerals revenue specialist. Has been employed by MMS since 1997. From 1989 until 1996, worked for the Bureau of Mines.

* Allen Vigil: RIK oil-marketing specialist. Has been employed by MMS since about 1992. Has been working in the RIK division since October 2000.

* Donna Hogan: RIK oil-marketing specialist. Employed by MMS since 1989. Has worked in the RIK division since 2003.

* Lawrence Cobb: RIK division's credit manager. Employed by MMS since 1983. Has been assigned to the RIK division since 2000.

* Karen Krock: Former RIK oil marketing specialist. Has been employed by MMS since 2000. Worked as an RIK oil-marketing specialist from 2002 through 2004, then moved to MMS' Offshore Minerals Management office in New Orleans as a management analyst.

Accounts of drugs, sex

Excerpts from two of three reports issued by the U.S. Interior Department's inspector general.

* Drugs and sex involving Gregory Smith, a program director in the department's Royalty in Kind program.

"According to the (confidential source), Smith engaged in sex and drug use with (Royalty In Kind) subordinates.

"When we interviewed the RIK employee, she stated that Smith often asked her for cocaine, and she provided it to him three to four times per year between 2002 and 2005. The RIK employee stated that either she or her boyfriend delivered the drugs directly to Smith at the MMS office, at a restaurant located near the office, or at a restaurant in a nearby town.

"According to the RIK employee, on more than one occasion, Smith directed her to purchase cocaine for him during normal MMS business hours, and Smith used the term 'office supplies' when discussing cocaine while at work.

"The RIK employee recalled that on one occasion in late 2004, Smith telephoned her repeatedly asking for drugs. She said she provided cocaine to him early that evening, but he continued to call her.

"Eventually, she said, Smith traveled to her house and wanted her to have sex with him. She said he also asked her if she had more cocaine . . .

"We interviewed yet another RIK employee who stated that in approximately 2005, Smith 'insisted' that she ride in his car from one business establishment to another, and she agreed.

" 'He wanted to have sex; I said no,' she recalled. Smith then asked if she would have oral sex with him, but she told him she did not want to.

"She said Smith then 'basically forced [her] head into his lap,' and she performed oral sex on him while he drove the car slowly."

* Ethical failures in the Oil Marketing Group

"In e-mails we retrieved from RIK employees' computer hard drives and network servers, we found numerous indications that many of the events that RIK employees attended with industry officials were purely social. For instance, one e-mail from Shell Pipeline Company representative to RIK employee Crystal Edler, regarding attending 'tailgating festivities' at a Houston Texans game, stated, 'You're invited . . . have you and the girls meet at my place at 6 a.m. for bubble baths and final prep. Just kidding. . . . '

"The Shell Pipeline Company representative's previous e-mail inviting people to the event was laden with sexual innuendo. "

* Improper personal conduct in the Oil Marketing Group

"During the course of our investigation, we learned that some RIK employees frequently consumed alcohol at industry functions, had used cocaine and marijuana, and had sexual relations with oil and gas company representatives."

* Individual employees within the Oil Marketing Group

"Leyshon recalled that she and Edler had not originally planned to spend the night in lodging provided by Shell but had planned to stay at a hotel room she and Edler had reserved. She explained that after she and Edler consumed 'some alcohol,' a Shell employee suggested that it would be unsafe for them to drive to their hotel. Leyshon said they then stayed at Shell's lodging.

"Leyshon also told investigators that she had intimate relationships with two oil company representatives.

"She also admitted to having a 'one-night stand' with a Shell employee.

"In her earlier sworn statement, Leyshon wrote, 'I do not have any inappropriate relationships or personal relationships with any of the representatives from the various companies.'

"When asked about the discrepancy between her sworn statement and statements made during her later interview, Leyshon explained that she did not think her relationships with these employees were inappropriate and she did not consider a 'one-night stand' to be a personal relationship."

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Comments

September 10, 2008

1 p.m.

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BRM writes:

Who's surprised???
September 10, 2008

1:06 p.m.

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BigSky182 writes:

Politicians in bed with big oil... this is news?
September 10, 2008

1:10 p.m.

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Hayduke1 writes:

This is not the first time the MMS employees have pulled these types of shenanigans. Some years back there was the 'Royalty Rangers'. Hell those guys were even flying in hookers to their parties in Tulsa and elsewhere.

Surprised the News researchers didn't pick up on that. On second thought I'm not. Investigative reporting has gone the way of the Dodo bird in this part of the country.
September 10, 2008

1:15 p.m.

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farsidefan writes:

Nothing new here. I've been getting screwed by big oil for sometime now.
September 10, 2008

1:23 p.m.

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Ashley writes:

Ugly. Probably just the tip of the iceberg, too.
September 10, 2008

1:24 p.m.

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DifferentPerspective writes:

Wow, literally in bed. Well the solution to every problem in the last 20 year has been bigger govt. bigger govt just leaves more unattended agencies and more room for corruption.

Contract rigging, brides, drugs, conflicts of interest are all clearly illegal, but is sex now illegal too. Probably. No wonder the feds have been shutting down all the massage joints. They dont need them. They are getting thier sex from oil company pandering.
September 10, 2008

1:27 p.m.

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davies writes:

Many of us support more drilling, but this isn't quite what we meant.
September 10, 2008

1:29 p.m.

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COGrownFarmBoy writes:

Hey...big oil has been President for the last 8 years and have gotten their nominee accepted as Vice-President this year. They have the money and power to do what they want. I think the most interesting article of the day is that oil prices didn't almost reach $150 a day because of a lack of supply. It wasn't a lack of drilling that caused it but speculation...and which party is it that doesn't want to place limitations on speculation...the one that is run by big oil. A vote for Bob Schaeffer or John McCain is a vote for big oil, large corporations, and the wealthy. I don't agree with a lot of things that Obama is proposing but he is by far the lesser evil in this campaign.
September 10, 2008

1:31 p.m.

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RightDownTheMiddle writes:

Vote WcCain for some more of the same......hooray for corruption and incompetence....it's the GOP way!
September 10, 2008

1:35 p.m.

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hikingartist writes:

funny stuff davies!
why doesn't the GOP weigh in on this at all? The only comment comes from Sen. Bill Nelson, D-Fla...?
Yesterday I read of Democrats questioning the 24 million dollar bonuses that 2 CEOs from Fannie Mae & Freddie Mac were due to receive, despite the taxpayer having to bail them out...?
This November, forget the speeches and promises....look at who is selling out the taxpayers & who is trying to keep the ship afloat.
September 10, 2008

1:36 p.m.

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davies writes:

CoFarmer: The effect that speculation has had on the price of oil has been purposefully exaggerated. Investors have to actually buy the oil at the price they 'speculatively' bid, you know.

I'd rather speculate on what the illegal sex was.
September 10, 2008

1:44 p.m.

Suggest removal

Scott writes:

"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."

What "government ethical standards"? Also, from what I read in this article these snivel serpents (government employees) are amateurs compared to the scum that infests the hall of congress.

Scott
September 10, 2008

1:54 p.m.

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HSTOWEL writes:

Yeah RightDownTheMiddle and the democrats are soooo squeaky clean. Greed and corruption don't have a thing to do with political affiliation and everything to do with individual morals. Oblabba is from Chicago and funneled money to his associates there and who knows what his real story is with Rezko. I'd put my money on McCain over Obama when comes to ethics anytime.
September 10, 2008

1:59 p.m.

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davies writes:

"This all shows the oil industry holds shocking sway over the administration and even key federal employees," said Sen. Bill Nelson, D-Fla.

I see no such evidence with regard to the administration. Only the very highest executive branch employees are political appointees who serve at the pleasure of the administration. The vast majority of government employees are hired as civil servants without regard to political opinions or affiliations. They enjoy the protection of due process for their positions, and they cannot be arbitrarily fired or promoted whenever a new administration takes over. So these promiscuous drug addled public servants could just as well be Democrats as Republicans.
September 10, 2008

2 p.m.

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dakar writes:

I think its very apparent the person that would put a stop to this and other types of corruption in government - PALIN. And she doesn't care if their repub or dem, she'll go after them.
September 10, 2008

2:03 p.m.

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DeimosJB writes:

Feds "probed" about sex gifts? Seriously, don't you guys even look at what you write?
Thought is as absent in the reporting as it is in the comments.
Sigh...
I also can't help but note that the first instinct is Bush/Republican bashing even though most of the perpetrators in the article are from the Denver office (Denver, as you may recall has a Democrat for mayor and Colorado also has a Democrat for governor).
September 10, 2008

2:07 p.m.

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Scott writes:

RickyLee writes: "Wow, I'm so surprised [sic].... Anyone think this scum will be held accountable?"

RickyLee, I hope your question about accountability was rhetorical. Of course snivel serpents are not held accountable for their unethical/immoral behavior. The Snivel Serpent rules make it damn near impossible to fire them regardless of what "indiscretion" they have committed.

Scott
September 10, 2008

2:09 p.m.

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blacksho89 writes:

COFarmBoy: The Co-Op is a "speculator", as they write a contact for x gallons of diesel at a set price.
September 10, 2008

2:20 p.m.

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ltcolafret writes:

I know a lot of people who work at the Federal Center. Most of them are Democrats. Don't know what the percentage of Democrat vs. Republican is.
September 10, 2008

2:21 p.m.

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dwood writes:

It's not new or news, it's just the timing that's applauded. Just weeks before an election, gas prices, big oil, corruption.....and this is published. I don't care if they are Dem. or Rep. give us some names and see how long they last on the outside. Big money arrogance, how about some street justice for these thieving bastards! People are having to make choices between school supplies for their kids and paying for gasoline to get to work and these bastards are literally screwing everyone they can. As RickyLee writes, will this scum be held accountable? Accountability by CEO's, government officials, etc... Are you kidding, they all know a lawyer or judge that can screw the litttle guy out of justice. Let 'em rot in hell!
September 10, 2008

2:23 p.m.

Suggest removal

davies writes:

"Please stop being stupid."
"Singed,
The World"

Too funny. I guess the World has only been "singed" by our stupidity, as opposed to being outright burned ;-)

Signed, davies

(But I agree that all the partisan nonsense is inane.)
September 10, 2008

2:24 p.m.

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sawzallartist writes:

"I also can't help but note that the first instinct is Bush/Republican bashing even though most of the perpetrators in the article are from the Denver office (Denver, as you may recall has a Democrat for mayor and Colorado also has a Democrat for governor)."

You chide the rmn for not being careful in what they write and this drool rolls out of your mouth?

From article:
"The alleged transgressions involve 13 Interior Department employees in Denver and Washington"

Interior Department is federal.

Yikes
September 10, 2008

2:25 p.m.

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jbowen43 writes:

They are Bushies so it goes without saying that they are corrupt. What will happen next is that they will lie and the media will accept those lies because facts don't matter to americans and fact checking uses energy that the media won't use. That is why Sarah Palin and John McSame can repeat the same lies over and over and over on the stump and no one cares. Americans love liars and bullies and Palin/McSame fit the bill to a tee.
Quote" We knew that it was our job to not obey the law." from a former Norton deputy living in Northern Colorado.
September 10, 2008

2:28 p.m.

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WALTRAY writes:

Hey, when did J.R. Ewing move to Colorado
September 10, 2008

2:35 p.m.

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freedomfighter1 writes:

Disgusting.

Yeah, I trust my government. I trust that they are lying to and stealing from me, invading on my liberties and freedoms, and policing the globe for the benefits of those in power.

No new news here.
September 10, 2008

2:39 p.m.

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davies writes:

Thank you jbowen43, for the benefit of your carefully deliberated opinions. But if all the Interior Department employees are Bushies and therefore corrupt, then what about the Justice Department and the federal investigators? Are they corrupt Bushies too? Why would they release the embarrassing reports on this investigation then?

Oh I know, they must be idiot Bushies.
September 10, 2008

2:42 p.m.

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sawzallartist writes:

davies said

"Oh I know, they must be idiot Bushies."

Please...stop being redundant.
September 10, 2008

2:50 p.m.

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mytwosense writes:

DeimosJB writes: "I also can't help but note that the first instinct is Bush/Republican bashing even though most of the perpetrators in the article are from the Denver office (Denver, as you may recall has a Democrat for mayor and Colorado also has a Democrat for governor)."

The article specifically cites these activities took place between 2002-2006. Do you understand what that means? It means Bill Owens was the governor then - not Ritter.

Governor Ritter was elected November 2006, and in fact, is likely driving this investigation. He's restored oversight to the Governor's office - and has had to clean up one mess after another that occurred during Owens' tenure.

I don't think the mayor would have anything to do with this particular office, but I could be wrong.
September 10, 2008

2:53 p.m.

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mytwosense writes:

My bad, the investigation is being overseen by the Interior Department.
September 10, 2008

2:54 p.m.

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GeeTee writes:

RMN -- I think you just blew my mind!
September 10, 2008

2:57 p.m.

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buffsblg writes:

marine, have you been keeping track of this administration? The Attorney General admits that the justice department was illegally packed with "bushies" hired specifically for their loyalty: the Fish and Wildlife service put a logging lobbyist in charge of endangered species decisions where she illegally overruled the scientists to help her once and future clients: incompetent and unqualified people were hired for the Iraq reconstruction based solely on their "bushie" credentials and on and on and on. I do not know for sure that these officials are Republican political appointees, but the evidence to date points that way.

And a note to Deimosb. The mayor and governor have NO say over these federal jobs. If you do not even understand the basics of the federal/state/ local government, maybe you should read a 5th grade civics book before you post your opinions.
September 10, 2008

2:58 p.m.

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youngman writes:

Ooooh..big BAD OIL....the boogie man....ooooh I am scared.....did you see how many Hookers were here for the Democratic National Convention.......those big BAD DEMOCRATS were doing the same thing......Politicians.......Hmmmmmm

But then again were they little boys or girls???? Where is the National Enquirer when you need it..
September 10, 2008

3:02 p.m.

Suggest removal

patchsl writes:

That government is best which governs least - we got the government we deserve, because we don't hold our elected representatives accountable for the people they appoint to positions of responsibility. And guess what? The people taking advantage of their position are - ready for this? - US. Neither you or any government official can prevent me from doing bad things. So, now what? It needs to start at the top - we need a President we can trust to set the example of service above self to our nation. Community organizer from Chicago, or decorated veteran and POW? You choose.
September 10, 2008

3:06 p.m.

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kirbysfriend22 writes:

Come on folks, this is not limited to one party or another. And neither of these jokers is going to clean up Washington. We, the people, need to really start stepping up and taking all of this into our own hands....and out of the pockets of big business. All those fools will keep abusing the power as long as we're willing to give it to them.
September 10, 2008

3:18 p.m.

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angryrepublican writes:

This is a horrible symptom of our society and goes back a long way. John McCain stole millions of dollars from the American Tax Payers when he helped his friends in the collapse of our savings and loans. Everyone needs to remmember that the "maverick" is nothing more than a thief and deemed so by his colleagues when he was accurately attached as a member of the KEATING FIVE.
September 10, 2008

3:22 p.m.

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davies writes:

buffsblg writes:

"I do not know for sure that these officials are Republican political appointees, but the evidence to date points that way."

What evidence is that? Alleged incompetence of appointed officials in completely unrelated cases? How does that constitute evidence that any of these particular (story quote) "13 former and current Interior Department employees" were Republican political appointees?
September 10, 2008

3:25 p.m.

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PaleoConservative writes:

This sounds like fun, and it's lucrative to boot. Is the Denver Minerals Management Service office taking applications?
September 10, 2008

3:26 p.m.

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mytwosense writes:

patchsl writes: "That government is best which governs least - we got the government we deserve, because we don't hold our elected representatives accountable for the people they appoint to positions of responsibility. And guess what? The people taking advantage of their position are - ready for this? - US. Neither you or any government official can prevent me from doing bad things. So, now what? It needs to start at the top - we need a President we can trust to set the example of service above self to our nation. Community organizer from Chicago, or decorated veteran and POW? You choose."

Great post about We the People until the end when you mocked grassroots efforts by We The People.

By the way, the only way we ever learn about these things is through the press. It may not be the best press in the world, but neither you or I would have learned about this without the Rocky Mountain News and other outlets reporting it. So, it's hard to take action against government fraud and crimes if we don't know about it.

And which candidate and his supporters are vilifying the press on a daily basis? Hint: It's not the "Community Organizer."
September 10, 2008

3:28 p.m.

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Cowboy63 writes:

COGrownFarmBoy writes: "Hey...big oil has been President for the last 8 years and have gotten their nominee accepted as Vice-President this year."

Didn't this investigation happen under the "President for the last 8 years"?

Didn't Palin impose a windfall profits tax on Big Oil and give every citizen of AK a $1200 check?

I'm sure if we looked into the investment portfolio of Harry Reid there would be NO oil company stock there.
September 10, 2008

3:30 p.m.

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davies writes:

angryrepublican: Can you tell me who the other four of the Keating Five were?
September 10, 2008

3:39 p.m.

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Scott writes:

davies writes: "angryrepublican: Can you tell me who the other four of the Keating Five were?"

I just hopped onto Al Gore's invention and found the Wikipedia site about the Keating Five. I LMAO! Let's see if angryrepublican answers you ;-)

Scott
September 10, 2008

3:46 p.m.

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davies writes:

Not nearly good enough, Big_D.

Show me any evidence that you have that any of these particular 13 former and current Interior Department employees are political appointees of the Bush Administration.

We are talking about misconduct by 13 specific people here, not about what you think of the Bush administration in general.

I'm so tired of this inane partisan bickering, generalizing, guilt by association, and leaps to conclusions that are unwarranted. If Obama is elected, do you really think we should automatically blame him for every act of misconduct for every one of the millions and millions of federal employees, just because he has made what, dozens or even hundreds of political appointments?

Oh, why am I trying to have a rational conversation with you Big_D anyway? I haven't seen an objective political comment from you in God only knows how many posts.
September 10, 2008

3:46 p.m.

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NeilT writes:

Cowboy-"Didn't Palin impose a windfall profits tax on Big Oil and give every citizen of AK a $1200 check?"

Yeah, it's cool if Palin does it, but if a Dem wants to do it you scream about all the taxes oil already pays. All the good they already do.

Ritter wants Colorado to stop paying oil and gas to drill here and you freak. Palin slaps oil and gas and pays the people and you're okay with it.

Partisan hypocrites, every last one of you!
September 10, 2008

3:56 p.m.

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Willy writes:

"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, "

Civil Service employees - not appointees of either party. Probably about equal number of each.
September 10, 2008

4:17 p.m.

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NeilT writes:

I'm a long-term bush user...
September 10, 2008

4:21 p.m.

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wyhammertime writes:

It looks like this place is just about corrupt as a third world country HHHHHMMMMMMMM
September 10, 2008

4:23 p.m.

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Sensible writes:

This is sooo wrong....

But it's ok to get head in the Ovary Office at the White House...
September 10, 2008

4:34 p.m.

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Willy writes:

Big d - Civil Service System was created for the purpose of protecting us from the political patronage you describe
September 10, 2008

4:42 p.m.

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buffsblg writes:

First of all Davies,none of what I contended is "alleged": it is all proven either by internal investigations of those very agencies or in the case of the Fish and Wildlife Service, in a ruling by a federal judge. I did not even include the head of the GAO asking what her agency could do to get GWB re-elected. It is simply undisputed that this administration has packed agencies with political supporters, even in areas where they were supposedly prohibited from doing so. It is possible that the current morons at Interior are just corrupt civil servants, but do not act offended when someone points out that this administration has used political fealty as a hiring standard and those people have in return used those positions to help private industry. Those are just facts.

Is blaming the Republicans in this case jumping to conclusions, perhaps. But it is relevant to consider the history of the administration in making conclusions. And you criticizing others for being partisan is truly amusing.
September 10, 2008

4:59 p.m.

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davies writes:

So buffsblg, "it is relevant to consider the history of the administration in making conclusions". This is your statement, as an attorney, when you are directly responding to my challenge as to what "evidence" (your word) you have that any one of 13 specific persons said to be under investigation in this story, is a Republican political appointee.

That's your evidence. Thank you so much. I have read previous posts of yours, and I expected better. So I will not profess to be amused, just disappointed.
September 10, 2008

5:03 p.m.

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timflh401 writes:

Wow. This is awful. How can I get invited to these MMS functions?
September 10, 2008

5:15 p.m.

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solar_satellite writes:

The stupid vote doesn't care about just about any sort of criminal conduct by corporate America and their Rethuglican running-dogs. If we want to pick it up, we'd better hope that Sarah Palin is caught sacrificing babies at a Black Mass. She is a persistent liar though, like any good Rethuglican. How many times is she going to say she refused the "Bridge to Nowhere" after she took all the money for that outrageous boondoggle and spent it?
September 10, 2008

5:15 p.m.

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redwhiteandBLUE writes:

All that money P*** away..what a waste . That money could have
been used to seal the border.
September 10, 2008

6:05 p.m.

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davies writes:

Big_D: Thanks, but again, not my point. I'm not afraid of the results either, and it may well be that one or more of these yahoos was a "Republican political appointee". My point is that there was no evidence of such in the story, at least when it started, and all the usual Bush-blamers like you come out with simplistic, partisan stuff like "Bush is an oil man, this involves oil industry oversight, so it's directly attributable to Bush."

LOOK AT THE FACTS, not your assumptions! This is about misconduct of government employees which may have absolutely nothing to do with politics. They may be low to mid-level bureaucrats who come and go regardless of whose administration it is. The so-called 'MMS chicks' just sound like a couple of gals who like to get drunk at office parties.

Look at the most serious allegation in the story now, and who does it concern? Surprise, surprise: an "employee of the federal government for more than 28 years". Gee, I guess he maybe started a little before W's time huh?

You post simplistic assumptions that fit your partisan views, with no regard for the truth.
September 10, 2008

7:18 p.m.

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freedomfighter1 writes:

Now that we all have agreed that there are problems with these two parties, on voting day...Vote Libertarian!

So I understand, the Rep. say that if big business does well it will trickle down and the Dems say that the wealthy need to take more of the finacial burden. The R say that morality should be dictated and the D say we should let people have more choices when it comes to their lives. These problems wouldn't have exsisted if we had stayed true to our Libertarian roots. I am not saying that the country has ever identified as Libertarian, but they defintely started with their principles. We can at least start to reverse the effects of our previous gov adminstrations by voting Libertarian.
September 10, 2008

8:54 p.m.

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seebox writes:

I just have one question..............How do I get a job with this company??????????
September 10, 2008

9:19 p.m.

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HopiMedicineMan writes:

Bush again. Republicans refuse to separate from this guy. It's hard to take.
September 10, 2008

10:57 p.m.

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maw writes:

sounds alot like what went on in the clinton white house.
September 10, 2008

10:59 p.m.

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Highcountry writes:

More details about the sex and drugs please. What kind of drugs? What kind of sex?
September 11, 2008

12:32 a.m.

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60s4ever writes:

No wonder the repubs were hollering at their convention, "Drill Baby, Drill".
September 11, 2008

6:50 a.m.

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gregu710 writes:

"HSTOWEL writes:
I'd put my money on McCain over Obama when comes to ethics anytime"

OH, so you'd put your money on Mexico getting our jobs over your fellow Americans? I have to assume so, since John McCain has stated that he'd like MORE NAFTA treaties. Way to sell out your country men for profits and then talk about ethics! Country first my #$$!
September 11, 2008

6:59 a.m.

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gregu710 writes:

"solar_satellite writes:

How many times is she going to say she refused the "Bridge to Nowhere" after she took all the money for that outrageous boondoggle and spent it?"

Solar, apparently she's going to keep on for a while. Watching some Republican Senator from TN last night on the Frog (Larry King), and she BOLD FACED DENIED that Palin campaigned on the theme of building that bridge, DESPITE the video that has been on YouTube and all the major news outlets for over a week! WOW, when you can stare a FACT straight in the face and claim it doesn't exist, you have superhuman powers of lying. Is this a class that I can take, maybe the GOP offers it to new politicians. I could sure use those powers myself on my next job interview! "Yes Mr. Johnson, I CAN save you $20,000,000 on that $500,000 project, and hey, I even parted the Red Sea at my last Position!"
Sadly, there is a large number of people that are stupid enough to hear the lies, ignore them, and continue undeterred in their support of Palin. My Mom used to ask me if something she'd said had gone in one ear and out the other, now we know that this is physically possible!!!

We will get what we deserve come November I'm afraid!
September 11, 2008

7:44 a.m.

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danirobi writes:

Considering that some of the things that were going on were with employees out of the Denver office. It's most likely some career employees. If you read the statement released by Secretary Kempthorne and the IG, it states that 99.9% of the employees at Interior at ethical, hard working individuals. It's sad that a small group of people make the majority of the people look bad.

I used to work at Main Interior in DOI and I have to agree, there are good, hard working individuals. Those who abused their position should face the consequences of their actions.
September 11, 2008

7:49 a.m.

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ptorres writes:

We all know who appointments the head of the Mineral Management Department
President “Bush”. The buck in this case did stop at his to management director office .If you haven’t figured out who made money with a Republican president then you deserve another four years of high gas prices, along with family values. I wonder if Rush is saying the Buck stops her. Think as you vote for another four years with an Alaskan oil family as VP.
September 11, 2008

7:59 a.m.

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Oliver2 writes:

The RIK program was established during Gale Norton's stint at Interior (yes, she was directly appointed by Bush) and has already resulted in one prison term for J.Steven Griles (another appointee). When you put the fox in the hen house, as Bush/Cheney have done, this is the result. Predictably enough, Bush's DOJ is not pressing any criminal charges as their underlines rape the U.S. Treasury and screw the U.S. taxpayer to further enrich their true masters, Big Oil.
September 11, 2008

8 a.m.

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LOUIE writes:

Oh yeaaaaah, give us the graphic, sorid details of thier lusty acts of sexual debauchery; anyone take a cigar up the wazoo or get a stain on thier dress we should know about? Damn, why is it I can't get a job in one of these liberated government entities? Sounds better than shower time in the joint. Bet they wore thier boxers backwards with the slit in the back. Big oil, you rule; you know what it takes to "grease" the wheels of government. Where can I find the articulated investigation report, so I know just how "terrible" things truly had gotten; my intrest is purely clinical as a taxpayer.
September 11, 2008

8:11 a.m.

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danirobi writes:

Oliver-

They're not pressing criminal charges on 2 people.

and might I add that the IG at Interior is also a former appointee, under the Clinton Administration...
September 11, 2008

8:17 a.m.

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Oliver2 writes:

The IG did his/her job. Now it's up to the federal prosecutors to do theirs. And yet the two people most culpable were able to resign and go through the revolving door to work for industry.

How about some accountability? Or is graft OK when it benefits Big Oil?
September 11, 2008

8:28 a.m.

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Willy writes:

big d - I am in no way defending the current administration, but if you look at the named individuals all were hired prior to 2000. Anyone can create rumor and lies on the internet.
September 11, 2008

8:50 a.m.

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fntsymtn writes:

I think this is the best news article I've ever read at RMN. Sex, drugs, scandal, politics and lots and lots of money. I keep waiting to see the update to the story that says that this is actually an article announcing the next TV series from "award winning" producer Steven Bochco.
September 11, 2008

9:05 a.m.

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davies writes:

danirobi: Nice to hear from you on this. You are helping to make the point that I was trying to get people to at least consider yesterday; that this is not necessarily a political issue. For example, Mr. Smith (the coke-head) is a career employee of 28 years, not a Bush appointee.

Also, have I missed something in the article that says there was any determination or allegation that the oil companies actually benefitted financially in some way from all these shenanigans? Certainly people behaved unethically, betrayed the public's trust, and compromised their ability to do their jobs objectivity, but I don't see any allegations that the Payment In Kind oil was overvalued or resold for less that what the oil companies were given credit for.

This was a two-year, $5 million investigation, and it uncovered a lot of hanky panky for which people should be fired, but was there actual financial damage to the government, or financial benefit to the oil companies? Because that's what so many people seem to be reading into this article.
September 11, 2008

9:31 a.m.

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windskull writes:

RICO ACT demand it by name...
September 11, 2008

9:45 a.m.

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DifferentPerspective writes:

Pretty ironic considering how much effort the Bush administration has expended tasking federal authorities to chasing prostitutes and raid massage joints. Now we find thier own are trading sex for money and favors. And I'll bet none of these will be prosecuted either since big oil is involved. How blatent does the corruption have to get for some poeple to finally believe it?
September 11, 2008

10:02 a.m.

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DenverTea writes:

I bet the higher ups are only saying that they will "take action before the end of the administration" so that they can do some intensive cleaning of their own stuff. lol
September 11, 2008

10:18 a.m.

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gratefulweb writes:

umm. where do i send it my resume!!??

Big Oil & The GOP: screwing us literally & figuratively
September 11, 2008

10:26 a.m.

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davies writes:

Different Perspective writes: "How blatent does the corruption have to get for some poeple to finally believe it?"

I see gifts and gratuities to government employees. I see illegal drug use by government employees. I see likely (I say likely because I don't know the rules) ethical violations by government employees, concerning socializing and sex with employees of oil companies which the government employees regulate/oversee.

I believe. Fire 'em.

But I don't see any corruption in the sense that the oil companies profited or the government lost money due to these activities. This was a two year, $5 million investigation. How much more investigation do you need in order to finally believe there apparently wasn't any more to this than what it says - misconduct by career bureaucrats?

Maybe the 'MMS girls' just wanted to have fun ;-)
September 11, 2008

1:26 p.m.

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LOUIE writes:

RickyLee, I would agree, except the government employee is nothing more than a reflection of our society as a whole; corruption is rampant everywhere you look. Think for a minute Ricky, can anybody here name a country or government on the face of this earth that isn't corrupt? All are I believe, it's a matter to what degree and do we have good checks and balances to catch it? I'll be honest on another point, sometimes corruption brings about an end result that can actually be benificial to society. Point in case, we secretly have prisons throughout the world, evil sometimes needs to be confronted with evil. I have no problem with intense interrogation and inflicting pain if it saves American lives. I would like to think we always take the high road, however in today's world the makeup of America's enemies has changed. As long as it's clandestine and unseen, and truly in the best intrest of the security of America, I can keep my mouth shut. This kind of corruption is much different however, it's internal and is a cancer within. But never rule out the silent soldiers of America who go unknown, thier evil prevents a much greater evil from befalling our nation. Just a thought.
September 11, 2008

1:30 p.m.

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sunshinestate writes:

What is it about 'minerals' & 'oil' that attract this certain type?(That Lip Stick woman from 'the richest state' included)
So much for the 'values' Party and Administration. "Reduced Government" indeed!
The conservative interior west outdoor interests/hunters should by now have begun to figure out a few things. See the Obama website and "Sportsmen For Obabma"- there are comments directed to you,for the good of quality outdoor rec and Colorado.Get over it-vote "D" and join the NRA if you must.
September 11, 2008

2:02 p.m.

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horsinaround writes:

Reminds me of two folks by the name of Clinton and Lewinsky. Oh, wait, my bad, he did NOT have sex with that woman.
September 11, 2008

2:04 p.m.

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junglegymco writes:

Oil companies and government in bed again. Or rather, still.
September 11, 2008

3:14 p.m.

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opinionatedcolo writes:

Davies, if you read in other sources, the harm to the citizens is that some companies were allowed to change their bids for the oil downward after the bids were accepted and then pay less for oil than they would have in a open market. This cost the taxpayers money. The cozy relationship between the agency and the oil companies made the oversight needed non-existent. By the way, if the oil companies did not think they did anything wrong, why did they refuse to let their employees talk to the investigator?
September 11, 2008

3:19 p.m.

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justinco writes:

This story is worthless without pictures ... of the MMS chicks.
September 11, 2008

3:59 p.m.

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NotReady08 writes:

Look at the employment dates for the MMS employees -- I would be very surprised if these individuals were Republican (or any) political appointees. If they were political (and appointed by B. Clinton) -- President Bush would have removed them in 2001. Whether Democrats or Republicans, this is a prime example of how government needs to be reformed and overhauled.
September 11, 2008

4:46 p.m.

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FatTony writes:

"We interviewed yet another RIK employee who stated that in approximately 2005, Smith 'insisted' that she ride in his car from one business establishment to another, and she agreed.

" 'He wanted to have sex; I said no,' she recalled. Smith then asked if she would have oral sex with him, but she told him she did not want to.

"She said Smith then 'basically forced [her] head into his lap,' and she performed oral sex on him while he drove the car slowly.
___________________________
"Will you have sex with me?"

No.

"Will you give me oral sex?"

No.

"Will you give me oral sex now?"

OK.
_____________________

Persistence pays off!!!!!!!

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Home › Business › Energy

Federal officials in Colo. accused of drug use, sex with oil execs

Sex, drug scandal in fed oil office

By Gargi Chakrabarty, Rocky Mountain News (Contact), Roger Fillion, Rocky Mountain News (Contact)

Published September 10, 2008 at 12:54 p.m.

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