The reports gave new ammunition to opponents of lifting long-standing drilling bans in some federal waters just as public support seemed to be pushing lawmakers in that direction.
House Democratic leaders were discussing with their rank and file a new energy bill that would allow new drilling within 50 miles of a state's coast, if the state approves, and 100 miles offshore regardless -- moves that would give the same troubled Minerals Management Service billions of dollars' worth of additional leases to award and manage.
Lawmakers immediately condemned the "hanky panky" at the agency. "Royalty collectors gone wild" was the subject of an e-mail sent out by the Democratic staff of the Senate Energy and Natural Resources Committee.
"I warned publicly that we could not trust the oil companies that want to drill in the waters off our most protected coastlines, nor the federal watchdogs charged with keeping a watchful eye over them," Sen. Bill Nelson (D-Fla.) said on the Senate floor. "Now, we have proof."
Drilling advocates Tom Davis (R-Va.), ranking Republican on the House oversight committee, and California's Darrell Issa (R-Vista), ranking Republican on the House domestic policy subcommittee, sent a letter to Waxman that criticized the committee's "failure to hold accountable" the Minerals Management Service for ethical lapses and mismanagement, "all of which reveal an unacceptable closeness to the oil industry. . . . Taxpayers must get every cent that is owed them, especially if drilling is expanded and royalties increase."
In a separate statement, Issa said that despite the agency's failings, "the more the public hears that new domestic drilling will both lower gas prices and make substantial royalty payments to the Treasury, the more they will embrace it."
Devaney singled out Chevron Corp. as the one major oil company that refused to cooperate with the investigation. The report identifies Chevron, Shell, Gary Williams Energy Corp. and Hess Corp. as providing gifts to Royalty in Kind employees with whom they had a business relationship.
Chevron disputed Devaney's characterization. "We have cooperated with the government investigation and produced all of the documents that the government requested months ago," said Don Campbell, spokesman for the San Ramon, Calif.-based oil company.
Environmental groups said the reports raise questions about whether Congress should allow more offshore drilling.
"Is this the agency we want in charge of our coasts?" said Richard Charter, a consultant to Defenders of Wildlife Action Fund.
--
elizabeth.douglass@latimes.com
richard.simon@latimes.com
Simon reported from Washington and Douglass from San Diego.
