Senators Ask Congress to End Oil Industry Sway Over Government Officials

Press Release

U.S. Sens. Bill Nelson of Florida and Robert Menendez of New Jersey have offered up a new plan to keep oil companies at arms length from government officials whose job it is to oversee the industry.

The legislation detailing appropriate conduct for government officials dealing with oil companies, comes on the heels of recent reports of major ethics violations by those in the Interior Department who oversee offshore drilling revenues. The bill is expected to be introduced as early as tomorrow.

"If we need to put on the books - don't take money and drugs from the oil industry - that's what we'll have to do to stop the influence peddling," said Nelson, who also has called for congressional hearings. "The whole sordid affair just shows how much sway big oil holds over the government."

"With two oil men in the White House for the past eight years, parts of the federal government have become wholly-owned subsidiaries of Big Oil," said Menendez. "American families are struggling every day with sky high gas prices while the federal government has been engaged in a wink-wink, hanky-panky relationship with oil companies. As oil companies cheerlead the drill, drill, drill calls, they need to know that their intimate relationship with the federal government is over. With these reforms, we intend to break up the cozy bond that has been allowed to develop for far too long, costing American taxpayers untold amounts of revenue."

Recent reports by the Interior Department's Inspector General cited improper and unethical behavior by some officials in the office that oversees offshore drilling - and the collection of billions of dollars of in-kind royalties from companies that lease federally owned offshore lands for drilling. Included were accusations of employees in the royalty office having sex with energy company employees, accepting lavish gifts and rigging contracts to favored firms.

On Monday, Milton Dial, the former deputy associate director of Minerals Revenue Management, became the second ex-employee to plead guilty to conflict of interest charges as a result of the IG's investigations. Dial faces up to five years in prison for using his job to arrange a contract for a former colleague. Last week, Nelson called for the firing of the employees accused of participating in the scandal, including the head of the Minerals Management Service who oversaw the employees in question.

The scandal erupted just as Congress is readying for debate on expansion of oil drilling in taxpayer-owned and protected coastal waters. But Nelson said the recent corruption revelations are reason enough not to lift the congressional ban on offshore drilling, and certainly not before a new administration takes office and breaks all such illicit ties with big oil.

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