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Salazar says no sex, drugs, scandals: 'There's a new sheriff in town'

Published January 29, 2009 at 7:32 p.m.
Updated January 30, 2009 at 8:29 a.m.

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Interior Secretary Ken Salazar on Thursday used a scandal involving sex and drugs at the Minerals Management Service in Lakewood to kick off a nationwide ethics overhaul of the department.

Salazar directed Tom Strickland, the former U.S. Attorney for Colorado and his new chief of staff, to review the disciplinary actions taken against certain employees at MMS, an arm of the Interior Department. Those employees were cited in a federal probe last year alleging the lurid scandal.

"A few rotten apples created a blemish on not just MMS but the entire Interior Department," said Salazar, the former Colorado senator, standing outside the MMS Lakewood office, where the scandal unfolded last year.

"We will move forward with review of personnel actions that were taken against individuals involved to determine whether the sanctions were appropriate, or if additional sanctions are needed."

Earl E. Devaney, the Interior Department's Inspector General, detailed in three reports in September how 13 former and current employees worked in a fraternity party-like atmosphere inside MMS' Lakewood office.

Devaney's two-year, $5.3 million investigation found that MMS employees "frequently consumed alcohol at industry functions, had used cocaine and marijuana, and had sexual relationships with oil and gas company representatives" who paid billions in royalties to MMS.

In 2008, MMS collected $23 billion in oil and gas royalties. Salazar said various government reports couldn't conclude whether American taxpayers lost royalties because of the conduct of the MMS employees.

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 alleged.

"There's a new sheriff in town," Salazar said, adding that Strickland will co-ordinate with the U.S. Justice Department to re-examine whether criminal determinations made earlier were correct.

"We will be working closely with the (U.S. Attorney General) to take a look at it," Salazar said. "I am confident they will at least take a look at it ... and see whether appropriate steps need to be taken."

Former Interior Secretary Dirk Kempthorne in November announced disciplinary actions that ranged from demotion to termination. MMS did not name those punished, confirm how many employees were fired or how many were demoted, citing privacy concerns.

The Justice Department has declined to prosecute Lucy Q. Denett and Gregory W. Smith, two former high-ranking MMS employees cited in the reports.

The reports accuse Smith 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 alleged. Smith retired from his Lakewood office in May 2007.

Denett, the former MMS associate director who worked in Washington, D.C., retired in early 2008.

The employees 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 in 2007 received $4.3 billion in such royalty-in-kind payments.

Earlier on Thursday, Salazar met with more than 150 MMS employees in Lakewood to announce a "Code of Conduct" that applies to all employees in MMS. He also said he would restructure the MMS royalty program and look at whether the royalty-in-kind program should be scrapped.

"Some people have over-reacted to what ostensibly was a personnels scandal," said John Harpole, president of Mercator Energy, a Denver company. "It would be intellectually dishonest to attribute that internal bad behavior with somehow it was triggered by oil and gas companies.

"I hope it does not provide an excuse to administration officials to eliminate a very successful program."

Comments

  • January 29, 2009

    7:58 p.m.

    Suggest removal

    Oh_Wise_One writes:

    Excellent! Let's start with the Democratics and let them lead by example. Frog march the Dem crooks off to the slammer. wooo hoo for the Sheriff.

  • January 29, 2009

    8:07 p.m.

    Suggest removal

    gopbodybagz writes:

    love ya Ken, always have, but we need to see some action my friend, enough press until indictments, terminations and grand jury are in the text of your remarks.
    the right man is on the job. just remember these miscreants, scofflaws, neer-do-well and freaks partied while their fellow citizens
    experienced torture and pain at the gas pump.
    we're waiting sheriff!

  • January 29, 2009

    8:10 p.m.

    Suggest removal

    Hstowell writes:

    Salazar was a clown as Colorado's Attorney General, he was a clown as a US Senator, and he'll be a clown in his most current post under the Clown Prince Obama.

  • January 29, 2009

    8:33 p.m.

    Suggest removal

    spyder writes:

    Marshall Dillon has been dead for a long time.
    The Stock Show only lasts about 10 days ..and it is over.
    Grow up Salazar. If you're on your ranch, herdin' your cows or pitchin' hay...ye-haw..wear that hat.
    Most of Colorado is trying to lose the 'cow-town' image, for good or bad, to get some new industries in.
    With that hat on everywhere, in my opinion, your IQ drops about 80 points, which gets you right about the IQ equivalent of breathing in and out...with que cards.

  • January 29, 2009

    8:35 p.m.

    Suggest removal

    gr8fun4me writes:

    Ken Salazar was an excellent Senator. It was Allard who was voted the worst in 2006. Salazar will do an excellent job for the US Interior! Go Ken!

  • January 29, 2009

    8:52 p.m.

    Suggest removal

    jrhino writes:

    i will continue to fight Salazar on illegal immigration.
    But I applaud this proactive move

  • January 29, 2009

    9:11 p.m.

    Suggest removal

    bagwan writes:

    Just to be clear, that is not a cowboy hat, that is a farm hand hat. Spyder says that his IQ drops by 80, an exaggeration of course, but it is definitely not a good look.

  • January 29, 2009

    9:32 p.m.

    Suggest removal

    ruraldeb writes:

    Have you ever noticed his mouth is ALWAYS open???? Tells me that he listens to noone but himself...........

  • January 29, 2009

    9:33 p.m.

    Suggest removal

    leavemealone writes:

    I think that hat is hiding something!!!

  • January 29, 2009

    9:55 p.m.

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    mytwosense writes:

    "A few rotten apples"? It may have been a small number of employees, but they had incredible influence and reach over this state's dealings with the energy industry.

  • January 29, 2009

    10 p.m.

    Suggest removal

    tim4me2 writes:

    My experience with Salazar as a senator was spotty at best. Many communications to him on various issues went unanswered, or the response did not relate to my inquiry. It is hard to understand how he's the "new sheriff" in town, when his record in terms of representing his constituents while senator was marginal at best.

  • January 29, 2009

    10:28 p.m.

    Suggest removal

    ruraldeb writes:

    check out the Salazar family (SLV)....a kin of his who worked for colorado koolaid (coors), drove drunk, killed two children, let out of jail to go to Mexico for vacation while being jailed........and all of this was covered up...salazar........not in my opinion! not good............look into background........

  • January 29, 2009

    10:42 p.m.

    Suggest removal

    mytwosense writes:

    FRN4U writes: "salad czar and his bro john are very liberal---very little or no response when asking for help with a public problem/private property problem from their wdc offices."

    Well, I'm "very liberal" and he seemed to vote the opposite of what I wanted too many times for comfort. I've actually been somewhat disappointed with him. He didn't turn out to be nearly as liberal as his campaign indicated he would be.

  • January 30, 2009

    4:08 a.m.

    Suggest removal

    44roger writes:

    we will see if his alligator mouth overloads his hummingbird butt-all talk and no action so far, another typical politician.

  • January 30, 2009

    6:16 a.m.

    Suggest removal

    JamesTaylorSucks writes:

    why is he plowing old ground? oh, it's the "farm hand hat". go back to Washington with the rest of your crowd.

  • January 30, 2009

    6:31 a.m.

    Suggest removal

    VeryOpinionated writes:

    Headline in today's Rocky - "Crackdown starts here." I hope Salazar is successful (hat on or hat off). However, can I trust the Rocky and the Post to provide us with factual and investigative reporting of how he's doing, or will they just be a cheerleader for him, like they've been so far?

  • January 30, 2009

    6:35 a.m.

    Suggest removal

    danirobi writes:

    Again, the New fails to report that these employees were CAREER employees and were fired by former Secretary Kempthorne.

  • January 30, 2009

    7:18 a.m.

    Suggest removal

    MrWright writes:

    Salazar will do an excellent job with the resources he is provided to make real changes in a very corrupt system, back log from da' Bush era...following the guidelines of the law is not being liberal, it is evident that the GOP has made ANY money making scheme legal...sorry boys the law even applies to you now, and Salazar will indite anyone despite political affiliation...it is called integrity, look it up, I know it has been awhile for you fellas!!

  • January 30, 2009

    7:29 a.m.

    Suggest removal

    VeryOpinionated writes:

    MrWrong, thanks for the blanket name calling. Back at ya. However, I do hope you're right - that Salazar will remove any corrupt/law-breaking person from the Department, regardless of political affiliation. BYW, I'll bet that there are many Department of the Interior employees that joined during the Clinton, Bush (41) and even the Carter era. Certainly, some positions were political employees of Bush (43), but not all joined within the last 8 years.

  • January 30, 2009

    8:19 a.m.

    Suggest removal

    Dick_Tater writes:

    Just wish I could have gotten in before they cancelled the hooker parties. Sounds like it was a good time.

  • January 30, 2009

    8:37 a.m.

    Suggest removal

    wyhammertime writes:

    I bet this comes to a close when his pocket's get full and all will go on as it was before !!

  • January 30, 2009

    8:37 a.m.

    Suggest removal

    pak writes:

    Running to the cameras to show he is closing the barn door after all the animals are gone! This is posturing for the news media after the offenders have already been punished. But this is what Demcrats do: style over substance!

  • January 30, 2009

    8:44 a.m.

    Suggest removal

    primafacie writes:

    Spyder, James Arness (aka Matt Dillon) is alive and well.

    But, in that photo on the main page, Ken Salazar is looking kinda funny at Tom Strickland. You sure the party at MMS is over?

  • January 30, 2009

    8:53 a.m.

    Suggest removal

    save_liberty writes:

    He voted for the bailout just like hill & obama. The begining of the downfall of the dollar and the American way. Looking forward to see the "America" Our kids will have to deal with considering they are going to be the ones paying for our incompetence's. Wake up Americans, dont be a product of the media.

  • January 30, 2009

    9:12 a.m.

    Suggest removal

    blacksho89 writes:

    There's a new sheriff in town," Salazar said

    Didn't Pelosi promise the same thing?

    Different sheriff, same corruption.

  • January 30, 2009

    9:35 a.m.

    Suggest removal

    sunshinestate writes:

    It is good to have a government again.

    Hints as to this appointment could be found during the campaign....the Field & Stream magazine Obama/McCain interview.

    Obama clearly "won' the interview debate...and so did the country.

    The hat thing: Coloradians are too fixed on their supposed 'wild west' image....such hats are seen throughout the nation.

  • January 30, 2009

    9:37 a.m.

    Suggest removal

    ClintEastwood writes:

    Salazar looks right at home on Brokeback Mountain!!!

  • January 30, 2009

    9:49 a.m.

    Suggest removal

    MileHighPatriot writes:

    I thought sex drugs and scandals were the epitome of political life and liberal lifestyle? Who are you, Salazar, to tell people what they can and cannot do???

  • January 30, 2009

    10:02 a.m.

    Suggest removal

    opinionatedcolo writes:

    As disgusting as some of the scandals have been at DOI, I am now officially tired of hearing about them. DOI has a great number of very important responsibilities in Colorado and the West. That department will have alot to say about energy land use and endangered species, among a number of other issues. Lets start hearing about those.

  • January 30, 2009

    10:31 a.m.

    Suggest removal

    TheOracle writes:

    At first blush, seeing Tom Strickland's name and the word "ethics" in the same sentence had me thinking YGTB(F)K.

    But come to think of it, anyone who has stretched ethics as far as Strickland did as a lobbyist, and in advocating for some of his law clients, I do suppose his is an expert. Somehow it just seems like appointing Charles Manson to a murder investigation, though.

  • January 30, 2009

    10:35 a.m.

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    Who_Me writes:

    Look at me, I am a cowboy sheriff with my hat and pop gun.

  • January 30, 2009

    10:35 a.m.

    Suggest removal

    davies writes:

    Oh heck Ken, what's so bad about a little intra-agency sex, or a little sex and dope with some of the oil and gas company representatives? The oil and gas industry is very high pressure and fast-paced. If you don't have sex with each other, how are you supposed to demonstrate the firmness of your resolve in overseeing them? After all, one has to prove one's ability to keep up with all the stiff competition out there.

  • January 30, 2009

    10:44 a.m.

    Suggest removal

    danirobi writes:

    Hey Opinionatedcolo- That sex for oil scandal like I mentioned above involved career employees at MMS not the political appointees at DOI.

  • January 30, 2009

    11:31 a.m.

    Suggest removal

    theairdog writes:

    Illegal Immigrants are welcome, however.

  • January 30, 2009

    12:03 p.m.

    Suggest removal

    opinionatedcolo writes:

    I know danrobi: you have told everyone on this board that about a dozen times. And the story says that. This is why I stated that it was time to get past the "new sheriff stuff and move to the future."

  • January 30, 2009

    1 p.m.

    Suggest removal

    BetterEducated writes:

    Ken, you were not an effective Sheriff in Colorado during your time as AG so you will have to do a LOT to impress me in your new post.
    Also, I own horses. I train horses. I love horses.
    Cowboy hats cause men to look like horses with friendly ears up. Now read this next part carefully: People are not horses. Take off the hat.

  • January 30, 2009

    1:11 p.m.

    Suggest removal

    vendari01 writes:

    No sex, drugs, or scandals. Sounds like Saturady night at BYU- boring. And I'm sorry, Spyder, but I like the Western wear thing; there're enough clones out there. I'm tired of all the faceless cities and faceless people. That's one reason I live here.

  • January 30, 2009

    1:23 p.m.

    Suggest removal

    ou8one2 writes:

    There's a new sheriff in town, and his name is Ken "Barney Fife" Salazar. I hope he got a free bowl of soup with that stupid hat.

    No more sex, no wonder Bill Clinton did not want to work in the new administration.

  • January 30, 2009

    1:25 p.m.

    Suggest removal

    davies writes:

    Ditto vendario01's comments on the hat - lay off you hat bigots!

    Besides, I think the President might look real nice wearing one of those babies too, pulled down a little bit over his ears ;-)