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What Kind of MMS Did Obama Inherit?

Just listen to the Obama/Salazar narrative & don't pay attention to the facts....

President Obama and Interior Secretary Salazar have done their best to shift the blame of the Deepwater Horizon disaster to the Bush Administration and the supposed ‘cozy relationship’ it fostered between the Minerals Management Service and the oil and gas companies it regulates.

The public consciousness perceives a corrupt and incompetent agency, turning a blind eye to the shenanigans of their industry buddies.

In reality:

  • Statistical measures of offshore safety performance improved significantly throughout the Bush years.
  • Ditto the drilling well blowout incident rate.
  • Bush-era internal investigations led to significant improvement in ethics throughout the organization.
  • The Bush Administration increased royalty rates on new leases for the first time in recent memory.

Don’t take my word for it; here are the MMS documents.

Offshore Safety Performance 1996-2008

Offshore Well Blowout Rate 1996-2008

Here’s the source of these two charts.

Ethics Investigations

The Denver Royalty-in-Kind office was a failure of management that did not reflect on either the agency’s regulatory stance or its relationship with the offshore lessees. I blogged about it here, in 2008 when the story broke, and here, just last month. Regardless, this was a Bush-era investigation.

Another Bush-era investigation led to the 2008 convictions of two MMS officials, Jimmy Mayberry and Milton Dial, who colluded to land Mayberry a lucrative consulting arrangement with MMS upon his retirement. Again, this corrupt activity involved revenue collection out of the Denver office, not the offshore regulatory function. The list of Federal agencies which are immune to such insider nest-building is quite short.

A third Bush-era ethics probe is germane to the issue of MMS’s regulatory oversight. An insider tip fingered the head man at the MMS Gulf of Mexico Region in New Orleans.

This investigation was initiated in 2006 based on allegations made by Chris Oynes… . Oynes alleged that Donald C. Howard, Regional Supervisor, GOMR, had attended one or more hunting trips with officials of offshore oil and gas companies. …

On February 3, 2009, Howard was sentenced to one year of probation. He was also ordered to pay a $3,000 fine and a $100 special assessment. In addition, he was ordered to perform 100 hours of community service…

Does the name Chris Oynes, the informant, ring a bell? It should: he’s the guy who was excoriated just a couple of weeks ago when he announced his resignation from MMS. Chris was the associate director of Offshore Energy and Minerals Management who many blamed for the deepwater royalty relief foul-up. The Deepwater Horizon incident was the last straw.

But, but, but…. I thought Oynes and the organization tolerated corruption!?

[Sound effect of heads exploding.]

Actually, the Howard investigation plays a role in the latest MMS ethics scandal to hit the wires, involving several inspectors in the Lake Charles, LA district office.

The investigation follows a report citing workers from the MMS accepting gifts, viewing pornography and possibly allowing oil workers to fill out their own inspection reports.

The report found it was commonplace before 2007 for MMS employees at a Lake Charles, Louisiana office to receive gifts including sporting event tickets and hunting trips from energy companies, Reuters reported.[emphasis added]

Before 2007? Maybe the Inspector General’s Report, rushed to press to bolster the Administration’s case against the MMS, will shed some light on the significance of that timing:

…[A]cceptance of gifts from oil and gas companies were widespread throughout that office, but appeared to have declined after the investigation and termination of Don Howard in January 2007 for his acceptance of a gift from one of these companies.

…[W]hen MMS supervisor Don Howard, of the New Orleans office, was investigated and later terminated in January 2007 for his gift acceptance, this behavior appears to have drastically declined.

You can read the report and decide just how egregious the ethical lapses were, but the fact remains that a Bush-era investigation ended the improper acceptance of meals, gifts, and invitations to sporting events. And what is the outcome of the case under President Obama, after all this huffing and puffing?

On October 15, 2009, the U.S. Attorney’s Office for the Western District of Louisiana declined this case for prosecution. This case is being referred to the Director of the Minerals Management Service for any action deemed appropriate.

I’ve heard that one inspector is on administrative leave.

During the Bush era, offshore safety and well control statistics markedly improved. That’s either a sign of regulatory success or of an industry that’s serious about making improvement. Ethics investigations rooted out corruption in the management ranks, and the lower echelons of the organization quickly got the message that their (mostly) petty gifts and gratuities would no longer be tolerated.

You are reading this here, and not in the mainstream media, because it is much easier for “professional journalist” to be force-fed the Administration’s narrative than to do a little basic fact-checking.

Cross-posted at VladEnBlog.

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COMMENTS

  • Deskpilot

    might ANY member of the dead tree or state run media ever bother to fact check data, correlate to a time line of ACTUAL history and then even consider the possibility that the regime was feeding them a bunch of bad data.
    I just couldn’t conceive of such a weakness in the Fourth Estate.

  • http://thesandsinstitute.org Vassar Bushmills

    …on this “case”.

    I recall that most of Bush’s failings in Katrina were out-and-out lies, beginning with the fact that Brownie would have had to break the law in order to do the things it was concluded he should have done.
    Still, Bush and Katrine were inextricably tied together as a sordid evil and a joke line that will live at least as long as Guy Fawkes.

    It seems BP has been tied to this oil spill as well. My question, which you can answer, is just how much culpability does BP et al bear for all this, after-explosion response, assuming 1) that they are strictly liable in the legal sense for the actual explosion and 2) recent information coming to light that this latest cap,now in place was the first thing they requested, and refuse by MMI, WH, EPA, Coast Guard, whoever) and they were forced to do those other failed efforts first and second?

    In other words, assuming they’ll be carrying the same 100-year tag as Bush-Katrina, how much of that do they deserve?

    Finally, the question you can’t answer and don’t have to respond to…what are the mechanics of actually stopping these lies from becoming a part of the cultural narrative.? I don’t care how bad BP is, I don’t like hanging innocent people.

    • http://vladenblog.tumblr.com Vladimir

      BP is culpable for the well design and operational errors that led up to the explosion.

      My opinion is that they were “safe” to the extent that my mom would be safe driving 35 mph on the interstate.

      The owner of our company always reminds us of Hale’s Law: “There is no limit on how bad things can get.” Just as on 9/11/01, the human brain’s imagination has built in resistance to acknowledging the reality of a situation when it is two (or more) orders of magnitude beyond what our rational mind has told us is the “worst case”.

      No one was able to imagine this happening because it had been done safely so many times before. The Deepwater Horizon was just coming off a world record- depth well. Six executives were on board to celebrate its seven year record of no incidents.

      Right after the blowout, achance asked me how it could happen. I stand by response then: “Two words. Apollo 13.” Apollo 11 was a remarkable achievement. Apollo 12 made it routine in all of our minds.

      I had not heard before about this cap being BP’s preferred method. I know that there must have been some political resistance to it due to the concerns about increasing the flow rate.

      All I can say is, if politics enter into operational decision making, it’s not a good thing.

      • http://thesandsinstitute.org Vassar Bushmills

        was BP’s first choice, but it was nixxed. I can’t give a timeline as to when that happened. You were on this days before the White House seemed to be. I assume BP went to “critical damage control” right away, assembling crisis teams for ocean clean-up, retarding, shore protection clean-up, community relations, and of course, claims. But it was the feds overall jurisdiction. I’m still not sure where legal liability will lie…with the general contractor or any of the subs…
        …a time line on all this is really going to be useful if we are going to make sure the right people are hung for the right offenses.

        Cheers

        • http://vladenblog.tumblr.com Vladimir

          Any spill incident is reported within the first hour & a joint industry/USCG Incident Command system is initiated.

          All operators are required to conduct annual drills. The MMS also conducts unannounced drills to test a company’s emergency response.

          And nearly all companies belong to a consortium which owns equipment which is ready to be deployed on a moment’s notice.

  • itrytobenice

    I swear it makes me want to put heads on pikes when I see the way the media lies and spins to cover up for their boy president.

    I don’t care how bad they bash GWB, he’s always going to be 1,000 times the man their little narcissistic panty waist is.

    • http://vladenblog.tumblr.com Vladimir
  • qixlqatl

    since nobody else seem to have made it either :)

    Thanks for the “inside baseball” perspective, Vlad

    • http://www.hakubi.us/ Neil Stevens
      • qixlqatl

        because I think I all ready should have known that. You told me that before, I believe. :(

        I generally don’t have time for reading here until late afternoon or early evening, so I miss out on recommending lots of diaries I would like to. Not much I can do here but say “thank you” often, fwiw.

        I also know there is lots of good stuff here I just don’t have the time to get to at all, which also distresses me.

        • http://www.hakubi.us/ Neil Stevens

          So if you don’t see a rec button, it’s generally because a front page poster put it up.

          Now, we do try to promote, but we don’t always manage to get it done.

    • qixlqatl