Sex, Drugs and Rock 'n Roll in the Department of the Interior

Here is part of an interesting editorial in The New York Times…

In three extraordinary reports delivered to Congress this week, Mr. Devaney, the department’s inspector general, found that officials at the Minerals Management Service — the division responsible for granting offshore oil leases and collecting royalties — accepted gifts, steered contracts to favored clients and engaged in drugs and sex with oil company employees as part of what he described as a broader “culture of substance abuse and promiscuity.”

At the center of the scandal is the royalty-in-kind program, under which the service takes delivery of oil and gas in lieu of cash payments from energy companies, then sells it to refiners. The program is vulnerable to manipulation at either end of the transaction, by overvaluing the oil and gas when it is received or undervaluing it when it is sold.