Editorial: Cleaning up the royalty mess at Interior

Tuesday, October 2, 2007  

"Randall Luthi has his work cut out for him.

Luthi, an attorney and former speaker of the Wyoming House of Representatives, had been deputy director of the U.S. Fish and Wildlife Service since February. But two months ago, he was named to head up the nation's Minerals Management Service, replacing another Wyomingite, Johnnie Burton, who retired in May. She had been drawing intense fire from Congress, watchdog groups and the Interior Department's inspector general because of problems with the agency's oil and gas leasing program.

This Interior Department service collects billions of dollars a year from oil and gas companies that drill on federal land. Burton took over the agency in 2002 and during her tenure faced heavy criticism from Congress over a royalty controversy involving faulty but legal Gulf of Mexico leases signed during the late 1990s that could cost the federal treasury billions in lost revenue. Critics said she didn't do enough to recover the money from these poorly conceived, Clinton-era deals that had been ignored.

Luthi has vowed to make changes in the agency, and it appears they are long overdue. An investigative report released last week gives him plenty of material to consider.

Poor communication. Cozy relationships with clients. Ethical lapses. Process failures. Billions of dollars lost.

This sounds like a federal agency in need of an extreme makeover. Good luck, Director Luthi."

Get the Story:
Gazette Opinion: Troubled agency needs makeover (The Billings Gazette 10/2)

Inspector General Report:
Minerals Management Service: False Claim Allegations (September 2006)

Another Inspector General Report:
Indian Trust Investigative Review (July 2007)

Relevant Links:
Indian Trust: Cobell v. Kempthorne - http://www.indiantrust.com

Related Stories:
Editorial: The royalty mess at the Interior Department (9/28)
Computer system a 'profound failure' at DOI (9/28)
No accounting of trust funds in Palm Springs (9/25)
Listening Lounge: House hearing on royalties (3/29)
Oil company owes million for underpaid royalties (01/25)
DOI official under investigation for ties to industry (1/2)
Editorial: Overhaul royalty collection at Interior (1/2)
Criminal inquiries into royalty collection at DOI (12/15)
Supreme Court rules for DOI in royalty collection case (12/12)
Editorial: Interior's long history of accounting failures (12/12)
Investigation finds major problems with royalties (12/7)
Fired DOI auditor recovered tribal royalties (12/4)
GAO to investigate royalty collection at DOI (11/02)
New Standard: Oil giant tries to cheat tribes of money (10/11)
Editorial: 'Anything goes' at Interior Department (9/18)
Interior comes under fire for royalty giveaway (9/15)
Norton shielded Griles despite ethics probe (9/15)
MMS reduces role of tribal-state royalty panel (9/12)
DOI accused of hindering probe into oil and gas royalties (08/04)
Accounting firm defends social relations with OST (7/27)
OST contract tied to favors to top officials (7/25)
OST officials awarded $6.6M contract to friends (7/24)
Tribes, states weigh lawsuits against oil companies (5/8)
Norton denies fraud or major problem with trust (3/29)
GAO report warns of billions in lost oil, gas royalties (3/29)
Tribes, states object to Interior's lack of audits (03/01)
Pombo starts investigation of DOI royalty program (2/16)
Bush, Democrats oppose $7B royalty giveaway (2/15)
Interior to give away $7B in oil and gas royalties (2/14)
Oil companies fall behind on royalty payments (2/10)
DOI allows underpayment of natural gas royalties (01/24)
Editorial: Interior's endless charade on Indian trust (06/10)
Navajo landowners question BIA agreement with company (10/21)
Retaliation alleged in firing of trust fund manager (09/18)
Court report finds undervaluation of Navajo lands (08/21)
Navajo trust fund manager targeted in internal probe (07/15)
DOI employees falsified Navajo trust data (06/11)
Navajo leaders criticize upheaval at trust fund office (05/09)