Senator To Interior Secretary: Fire Those Tied To Scandal

Media General

September 11, 2008

By Billy House

Democratic Sen. Bill Nelson is calling on Interior Secretary Dirk Kempthorne to force the resignation of an official who oversees the office accused by federal investigators of having illicit ties to the oil industry, and to fire others involved in the scandal.

The official, Randall Luthi, is director of the Interior Department’s Minerals Management Service. At MMS, Luthi oversees an office that handles billions of dollars a year in royalties that oil companies pay for leasing federally owned lands.

On Wednesday, investigators with the Interior Department’s inspector general released a report accusing employees in the royalty office of having sex with energy company employees, accepting lavish gifts and rigging contracts to favored firms.

“Besides being a sad commentary on the failures of certain public servants, this case shows us how the oil industry can also do business improperly,” wrote Nelson, in a letter to Kempthorne today. “In fact, it raises lots of questions about the extent of the influence the oil and gas industry holds over our government.”

“I ask that you immediately terminate all employees identified in the above-mentioned report. I also ask that you request the resignation of MMS senior leadership, including Director Randall Luthi, and undertake a complete reorganization of MMS and its operations,” wrote Nelson.

The report was released just as Congress is readying for debate on expansion of drilling in coastal waters. Votes could come as early as next week. Nelson argues that 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 what he calls “all such illicit ties with big oil.”

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