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Project on Government Oversight

POGO Disgusted by DOI’s ‘Honor System’ for Big Oil Companies

Related Content: Oil & Gas Royalty Revenue
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January 18, 2007

The Inspector General for the U.S. Department of Interior (DOI) today confirmed that a lax audit system has allowed large oil companies to avoid paying royalties they owe the federal government.

In a hearing before the U.S. Senate Committee on Energy and Natural Resources DOI Inspector General Earl Devaney said the current process of collecting oil and gas royalties "is more or less of an honor system."

"It's a little hard to know who is the fox and who is the hen in this scenario since they both seem to be wearing the same outfit" said POGO Executive Director Danielle Brian .  "There really is no innocent party here.  The oil companies have been withholding money they owe American taxpayers but the government keeps giving them a 'bill paid' notice.  It is unfair and must stop immediately."

Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO’s investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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