Sex for Oil, Gas, Fuel, Drugs: Energy Surplus by Department of Interior Officials

Officials charged with ensuring that American taxpayers receive their share of revenue from oil and gas companies drilling on federal lands reportedly engaged in a "culture of ethical failure," one plagued by sexual relationships with oil industry employees and improper acceptance of dinners, gifts and travel, according to a series of Interior Department inspector general reports released today.

Investigators from the Interior Department's inspector general's office said more than a dozen employees, including the former director of the oil royalty program, took meals, ski trips, sports tickets and golf outings from industry representatives. The report alleges that the former director, Gregory W. Smith, also netted more than $30,000 from improper outside work.

The report from Inspector General Earl E. Devaney contains fresh allegations about the practices at the beleaguered royalty-in-kind program of Interior's Minerals Management Service, which last year collected more than $4 billion worth of oil and natural gas from companies given contracts to tap energy on federal and Indian lands and offshore. The revelations come as Congress is set to consider opening the Arctic National Wildlife Refuge and areas off the coast of Florida for drilling.

The report also identifies four companies that had provided gifts to RIK employees while maintaining a business relationship: Chevron, Shell, Gary Williams Energy Corporation and Hess Corporation (nyse: HES - news - people ). Chevron and Shell conducted business as producers on leases where the Minerals Management Service collects royalties and also buys oil from the RIK program. Hess also operates MMS leases, and Gary Williams Energy purchases RIK products.

For Shell, Chevron, and Gary Williams Energy, the report details several thousand dollars of gifts from employees of each company that Department of Interior employees should not have accepted, including meals, hotel rooms, ski lodge stays, and golf and paintball outings. Spokesmen for Shell and Chevron said they had not yet seen or had time to review the reports. Gary Williams Energy did not immediately respond to a request for comment.