Issa Blasts Democrats on MMS Failings


House Oversight and Government Reform Committee Abandoned Oversight of Troubled Agency


September 10, 2008

Washington, DC – Darrell Issa today blasted House Speaker Nancy Pelosi and Oversight and Government and Oversight Reform Committee Chairman Henry Waxman for terminating a Republican initiated Congressional investigation into failings at the Department of the Interior’s Minerals Management Service (MMS).  Three reports issued today by the Inspector General of the Department of the Interior detailed ongoing criminal, ethical, and managerial mismanagement at MMS. 

“Democrats knew billions were being lost through mismanagement and wrongdoing yet did nothing.  Looking into and fixing these problems would have meant highlighting the enormous revenues that domestic oil and natural gas production contributes to our treasury.  This just didn’t fit into their anti-drilling campaign.”

During the 109th Congress the full Government Reform Committee and the Subcommittee on Energy and Resources held five investigative hearings that uncovered billions of dollars in revenue lost due to the systemic corruption and mismanagement which permeated MMS during both the Clinton and Bush Administrations.  During the investigation, real questions arose over the accuracy of oil and natural gas production reports from the oil and gas companies and royalties paid by those companies.  Issa blasted Pelosi and Waxman for neglecting efforts to reform MMS and hold it accountable for the lapses and cover-ups that cost taxpayers. 

“We repeatedly asked Chairman Waxman to continue the investigation into why American taxpayers were not being paid billions in energy royalties they are rightfully owed,” Issa said.  “Pelosi, Waxman and the Democrats generally love to bash big oil, but their reluctance to publicly address these multi-billion dollar losses, which date back to the Clinton Administration, is troubling.” 

“Oil and gas royalties are one of the largest sources of non-tax revenues for the federal government,” added Issa.  “I expect the more the public hears that new domestic drilling will both lower gas prices and make substantial royalty payments to the Treasury, the more they will embrace it.  This Congress has failed to make certain the American people are getting every cent of royalties due from oil and gas companies.”

A letter from Rep. Darrell Issa and Oversight and Government Reform Committee Ranking Member Tom Davis to Chairman Henry Waxman and the DOI IG's report is attached.
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