Republican Leaders Urge Resumption of Interior Department Oversight Responsibilities

Press Release

Republican Leaders Urge Resumption of Interior Department Oversight Responsibilities

Ranking Member Tom Davis (R-Va.) and Rep. Darrell Issa (R-Calif.) today called on House Oversight and Government Reform Committee Chairman Henry Waxman (D-Calif.) and Subcommittee on Domestic Policy Chairman Dennis Kucinich (D-Ohio) to resume the committee's investigation of mismanagement and ethical lapses involving flawed 1998 and 1999 oil and natural gas deepwater leases issued during the Clinton administration.

"We are now five months into the 110th Congress and have not had a single hearing despite a number of significant developments," wrote Davis, Republican leader of the full committee, and Issa, ranking member on the Domestic Policy Subcommittee. "We are concerned that the interruption of this oversight work may negate opportunities for reform and recovery of owed royalties."

In 2006, the full committee and the Subcommittee on Energy and Resources held five hearings on the Interior Department's Minerals and Management Service (MMS). Since the last hearing in September, the inspector general of the Department of Interior has delivered reports detailing a dysfunctional MMS, the director of MMS, Johnnie Burton, has resigned, and the Government Accountability Office (GAO) has confirmed that the U.S. Government already has lost $1 billion and may lose as much as $9.8 billion over the life of the leases. The letter asks for a resumption of the investigation that exposed the culture of mismanagement and ethical lapses that led to the faulty leases.

"In the 109th Congress, this investigation was conducted in a non-partisan manner with bipartisan support," Davis and Issa wrote. "We urge a resumption of this oversight and, specifically, a hearing to address pertinent questions following the resignation of Director Burton and the conclusions of the Inspector General."

The text of the letter follows below:

May 16, 2007

The Honorable Henry A. Waxman
Chairman
Oversight and Government Reform Committee
2157 Rayburn House Office Building
Washington, D.C. 20515

The Honorable Dennis J. Kucinich
Chairman
Subcommittee on Domestic Policy
2445 Rayburn House Office Building
Washington, D.C. 20515

Dear Chairman Waxman and Chairman Kucinich:

In the 109th Congress, the Interior Department's Minerals and Management Service (MMS) was the subject of five investigative hearings by the Full Government Reform Committee and the Subcommittee on Energy and Resources focusing on flawed 1998 and 1999 oil and natural gas deepwater leases issued during the Clinton Administration.

These hearings exposed a culture of mismanagement, ethical lapses, and a cover-up at MMS under both the Clinton and Bush Administrations that will cost the Federal government billions of dollars in lost revenues. We are now five months into the 110th Congress and have not had a single hearing despite a number of significant developments. We are concerned that the interruption of this oversight work may negate opportunities for reform and recovery of owed royalties.

In response to a request made by a number of Members of Congress and Senators the Government Accountability Office (GAO) on April 12, 2007, confirmed that the U.S. Government has already lost $1 billion and may lose as much as $9.8 billion or more over the life of the leases.

Last week, the Department of the Interior announced the resignation of Minerals and Management Service Director Johnnie Burton - an official whose sworn testimony in front of the Subcommittee on Energy and Resources was contradicted by subsequent investigations. The Department of the Interior, however, stated that Ms. Burton's departure was not related to the debacle involving flawed deepwater leases.

While the Government Accountability Office has initiated a top to bottom review of MMS following a request from us, we continue to be concerned about the immediate direction of MMS and the reform recommendations that have already been made by the Inspector General.

Questions of particular importance include:

What is being done and what progress has been made in recovering revenues uncollected due to flaws in 1998 and 1999 deepwater leases?

What reforms in MMS have been put in place following the recommendations of the Department of the Interior Inspector General?

Responding to the allegation made by the Department's own Inspector General that, "short of a crime, anything goes at the highest levels of the Department of the Interior," who has since been held accountable for mistakes and ethical lapses at MMS?

In the 109th Congress, this investigation was conducted in a non-partisan manner with bipartisan support. We urge a resumption of this oversight and, specifically, a hearing to address pertinent questions following the resignation of Director Burton and the conclusions of the Inspector General.

Sincerely,

Tom Davis
Ranking Member
Oversight and Government Reform Committee

Darrell Issa
Ranking Member
Subcommittee on Domestic Policy

Source