Oil well plug readied as spill marks 5 weeks; probe cites cronyism between companies, agency

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5 weeks of gushing oil: ‘Top kill’ plug readied

WASHINGTON — Marking five disastrous weeks, BP readied yet another attempt to slow the oil gushing into the Gulf on Tuesday as a federal report alleged drilling regulators have been so close to oil and gas companies they’ve been accepting gifts and even negotiating to go work for them.

President Barack Obama prepared to head to the Gulf on Friday to review efforts to halt the millions of gallons of contaminating crude, while scientists said underwater video of the leak showed the plume growing significantly darker, suggesting heavier, more-polluting oil is spewing out.

BP’s next effort to stop the damaged oil well, perhaps Wednesday, will be to force-feed heavy drilling mud and cement into the well to plug it up. The tactic, called a “top kill,” has never been tried a mile beneath the sea, and company executives estimate its chances of success at 60 to 70 percent.

Also on Tuesday, in Jackson, Miss., 11 men who died in the April 20 rig explosion were honored at a somber memorial service with tributes from country music stars and drilling company executives.

“This is the one of the most difficult days for many of us here. But for the families of our 11 lost colleagues, this is just another of many difficult days,” said Steven Newman, CEO of Transocean Ltd., the Swiss-based owner of the Deepwater Horizon rig.

In Washington, Interior Secretary Ken Salazar said he has been laboring to root out problems at the agency that regulates offshore drilling. And the Justice Department said it will take all appropriate steps to ensure that those responsible for the disastrous blowout and oil spill are held accountable.

On Capitol Hill, lawmakers continued feuding over a law that caps oil spill liability at $75 million for economic damages beyond direct cleanup costs. Democrats have tried to pass a bill raising the limit to $10 billion but have been blocked by Republicans.

A new report from the Interior Department’s acting inspector general found that an inspector for the Minerals Management Service, which oversees drilling, admitted using crystal methamphetamine and said he might have been under the influence of the drug at work.

The report cited a variety of violations of federal regulations and ethics rules at the agency’s Louisiana office. Previous inspector general investigations have focused on inappropriate behavior by the royalty-collection staff in the agency’s Denver office.

The report adds to the climate of frustration and criticism facing the Obama administration, although it covers actions before the spill. Millions of gallons of oil are gushing into the Gulf, endangering wildlife and the livelihoods of fishermen, as scrutiny intensifies on a lax regulatory climate.

In a letter to Sen. Barbara Boxer, D-Calif., Assistant Attorney General Ronald Welch said he could not confirm or deny a criminal investigation was under way, but he said a team of investigators has been in the Gulf for three weeks. Justice lawyers have been meeting state officials and federal prosecutors to assure a coordinated effort, Welch said.

The Interior Department’s acting inspector general, Mary Kendall, said her report began as a routine investigation.

“Unfortunately, given the events of April 20 of this year, this report had become anything but routine, and I feel compelled to release it now,” she said.

Her biggest concern is the ease with which minerals agency employees move between industry and government, Kendall said. While no specifics were included in the report, “we discovered that the individuals involved in the fraternizing and gift exchange — both government and industry — have often known one another since childhood,” Kendall said.

Relationships took precedence over their jobs, Kendall said.

The report follows a 2008 report by then-Inspector General Earl Devaney that decried a “culture of ethical failure” and conflicts of interest at the minerals agency, which is part of the Interior Department.

Salazar called the latest report “deeply disturbing” and said it highlights the need for changes he has proposed, including a plan to abolish the minerals agency and replace it with three new entities.

The report “is further evidence of the cozy relationship between some elements of MMS and the oil and gas industry,” Salazar said. Several employees cited in the report have resigned, were fired or were referred for prosecution, he said, and actions may be taken against others as warranted.

The report covers activities between 2000 and 2008. Salazar said he has asked Kendall to expand her investigation to look into agency actions since he took office in January 2009.

Members of Congress and President Obama have criticized what they call the cozy relationship between regulators and oil companies and have vowed to reform MMS, which both regulates the industry and collects billions in royalties from it.

The report said that employees from the Lake Charles, La., MMS office had repeatedly accepted gifts, including hunting and fishing trips from the Island Operating Company, an oil and gas company working on oil platforms regulated by the Interior Department.

Taking such gifts “appears to have been a generally accepted practice,” the report said.

Two employees at the Lake Charles office admitted using illegal drugs, and many inspectors had e-mails that contained inappropriate humor and pornography on their government computers, the report said.

Kendall recommended a series of steps to improve ethical standards, including a two-year waiting period for agency employees to join the oil or gas industry.

One MMS inspector conducted four inspections of Island Operating platforms while negotiating and later accepting employment with the company, the report said.

A spokeswoman for Island Operating Company could not be reached for comment. The Louisiana-based company says on it website that it has “an impeccable safety record” and cites Safety Awards for Excellence from the MMS in 1999 and 2002. The company was a finalist in other years.

“Island knows how to get the job done safely and compliantly,” the website says.

Sen. Dianne Feinstein, D-Calif., called the report “yet another black eye for the Minerals Management Service. Once again, MMS employees have been found culpable of performing shoddy oversight of offshore drilling. The report reveals an overly cozy culture between MMS regulators and the oil industry.”

Feinstein, who chairs a Senate Appropriations subcommittee that oversees the Interior Department, said she will hold a hearing next month on Salazar’s plan to restructure the agency.

The oil industry and its allies say a higher liability limit would make it difficult for them to get insured and would especially hinder smaller independent drillers. But Democrats said such companies should be capable of paying for whatever damages they cause or taxpayers will get stuck with the tab.

“An independent is not a mom and pop. We are talking about major size corporations,” said Sen. Bill Nelson, D-Fla. “If they cause the damage, why should they not be responsible?”

Associated Press Writers Ben Evans and Ben Feller in Washington, Holbrook Mohr in Jackson, Miss., and Greg Bluestein in Covington, La., contributed to this story.