Big Oil Companies Hide Billions from Government at Taxpayer Expense

[Demeter]

http://www.buzzflash.com/articles/analysis/213


Developing New Bush Scandal Helping Big Oil Companies Hide Billions from Government at Taxpayer Expense

Submitted by BuzzFlash on Wed, 05/23/2007 - 5:25pm. Analysis
A BUZZFLASH NEWS ANALYSIS


Corruption within the Department of Interior may have allowed oil companies to improperly save billions at the expense of the taxpayers. The Department’s Inspector General has already made at least two criminal referals to the FBI and the Justice Department, and Congressional Democrats have launched several investigations and introduced new legislation to fix the problem.

In a nutshell, oil companies leasing federal land to drill for oil are required to pay the government royalties based on a percentage of their sales. But under the Royalty-in-Kind program, the companies can pay in the form of oil and gas instead of cash. The problem is that oil prices have increased more than the value of the oil and gas royalty revenues being recieved, meaning that the oil companies are managing to withhold a growing amount of their profits from Uncle Sam.

As you might guess, Royalty-in-Kind was proposed and remains supported by the oil industry, and Bush implanted officials with deep ties to the oil industry in charge of the agency responsible for enforcing the program, the Minerals Management Service (MMS).

In light of the growing scandal, MMS Director Johnnie Burton has already announced that she will be retiring by the end of May. Burton started an oil exploration business before becoming a staunch Republican politician in Wyoming, where she developed ties with Dick Cheney. Greg Smith became the new head of MMS, but he just announced his own sudden retirement Tuesday.

"It appears this Administration uses retirement like some perverse witness protection program," said Rep. Nick Rahall. "Get them out of the spotlight and off the list of in-the-know folks who could provide damaging evidence. Instead of Watergate's 'follow the money,' the Bush Administration has "follow the retirements.' "

READ ON AT LINK--IT GETS WORSE

[peacetalksforall]

1. More on Johnnie Burton

http://www.doi.gov/news/07_News_Releases/070508.html

"WASHINGTON – Secretary of the Interior Dirk Kempthorne today announced the retirement of Minerals Management Service Director Johnnie Burton effective at the end of May and offered his gratitude for her years of service.

In his formal letter accepting her resignation, Secretary Kempthorne praised Ms. Burton, saying, “Over the past five years, you have led a vital part of the Department of the Interior. You confronted challenges head on with great purpose to do what was right. You always conducted yourself with the utmost grace and style. I respect your decision to return to your family and to the West we both love. You will be missed.”

“I have served this President and the Secretary of the Interior for over five years,” Burton said in submitting her resignation. “This has been the most rewarding, and often challenging, position of my career. It has been an honor to serve this country and contribute to the orderly production of hydrocarbon energy for the Outer Continental Shelf.”

Burton, appointed Director in March 2002, led the Minerals Management Service (MMS) through 16 offshore sales, which greatly expanded national domestic energy production and generated more than $3 billion in bonus bids alone; increased the effectiveness and eliminated delays of the royalty compliance program, resulting in improved accounting and oversight of royalty payments; and recently completed a new Five – Year Outer Continental Shelf Oil and Gas Leasing Program, which will result in further energy independence and economic stimulation for the country."

Sounds innocent:
. expanded national domestic energy production
. generated more than $3 billion in bonus bids alone
. eliminated delays of the royalty compliance program, resulting in improved accounting and oversight of royalty payments
. recently completed a new Five – Year Outer Continental Shelf Oil and Gas Leasing Program, which will result in further energy independence and economic stimulation for the country

Foolers fooling the fooled.

[peacetalksforall]

2. Another article on Greg Smith

http://www.rigzone.com/news/article.asp?a_id=45546

Resigned abruptly....

[underpants]

3. It doesn't defy logic

they are crooks with their hands in the till throwing it out to their cronies. This has been going on from day one.

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