Reply #22: REPORTS Jan 2007 - Interior Department 2005 Cover-Up of Oil and Gas Lease Problems

[L. Coyote]

Interior Dept. Cover-Up of lease scandal
Steve Kretzmann - Jan 15th, 2007 -
http://priceofoil.org/2007/01/15/interior-dept-cover-up-of-lease-scandal/


Apparently there are no lengths to which Bush Administration officials will not go in defense of Big Oil. According to Congressional Quarterly (http://public.cq.com/public/20070113_homeland.html), the Interior Department’s Inspector General will shortly issue a report revealing that Department officials, after learning in 2000 of mistakes in leases that could cost the American people $10 billion, proceeded to cover it up. And apparently Minerals Management Service Director Johnnie Burton lied to Congress about it last year. Ooops.

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Report to Allege Interior Department Cover-Up of Oil and Gas Lease Problems
By Jeff Tollefson, CQ Staff - http://public.cq.com/public/20070113_homeland.html


A much-anticipated report to Congress will allege that Interior Department officials covered up a problem with oil and gas leases after it was discovered in 2000, according to congressional aides.

The Interior Department inspector general (IG) also has been investigating whether Johnnie Burton, head of the agency that collects royalties, might have been told about the problem earlier than she said in congressional testimony last fall.

“I had to provide them with her testimony because there were questions about its veracity on the issue of when she found out about the flawed leases,” said Larry Brady, Republican staff director for a House subcommittee that has been investigating the issue.

In September, Burton testified before the House Government Reform Committee that she had learned of the problem in 2006. However, the Interior Department issued a statement late Jan. 12 acknowledging that Burton had actually learned of the issue in late 2005 — but did not realize its “significance” until 2006, the department said. Interior officials have not seen the IG report.

Earl E. Devaney, the Interior Department’s inspector general, is scheduled to present his findings Jan. 18 to the Senate Energy and Natural Resources Committee.

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