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AP: Salazar urges splitting energy agency

WASHINGTON — The Obama administration is proposing to split up an Interior Department agency that oversees offshore drilling, as part of its response to the Gulf Coast oil spill, The Associated Press has learned.

An administration official who asked not to be identified because the plan is not yet public said Interior Secretary Ken Salazar will urge that Congress approve splitting the Minerals Management Service in two. One agency would be charged with inspecting oil rigs, investigating oil companies and enforcing safety regulations, while the other would oversee leases for drilling and collection of billions of dollars in royalties.

Currently, the Minerals Management Service, an arm of the Interior Department, is responsible for collecting more than $10 billion a year from oil and gas drilling and with enforcing laws and regulations that apply to drilling operations.

Some critics have said the two roles are in conflict and are one reason the agency has long been accused of being too cozy with the oil and natural gas industry.

An internal investigation in 2008 described a “culture of substance abuse and promiscuity” by workers at the agency. The investigation by Interior’s inspector general found workers at the MMS royalty collection office in Denver partied, had sex with and used drugs with energy company representatives. Workers also accepted gifts, ski trips and golf outings, the report by Inspector General Earl E. Devaney said.

Devaney decried “a culture of ethical failure” and an agency rife with conflicts of interest.

Read the full article here

Bloomberg: Oil-Spill Agency Fetches $13 Billion Amid ‘Cozy’ Ties

New York Times: Sex & Drugs & the Spill

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