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Interior Department disciplines employees in Denver


Associated Press Writer
Article Last Updated; Saturday, November 22, 2008  7:17AM
WASHINGTON - The Interior Department has taken disciplinary action against more than half a dozen workers in Denver who accepted lavish gifts, partied and, in some cases, had sex with employees from the energy companies they regulated.

The actions announced Friday can be as small as a warning letter or as strict as termination. The Interior Department would not confirm how many employees were fired, citing privacy.

The eight employees worked in a Denver Minerals Management Service office in charge of collecting billions of dollars in federal oil royalties.

An Interior Department Inspector General investigation issued in September referred to a "culture of substance abuse and promiscuity" in the office from 2002 through 2006. During that time, the report found some employees were getting drunk and having sex with oil company personnel. The report also highlights instances where co-workers in the office used cocaine and marijuana.

Minerals Management Service Director Randall Luthi said in a statement Friday that "the behavior of some MMS employees prior to 2007 was clearly inappropriate and warranted strong administrative action."

Eight of those workers were still employed with the agency when the scandal broke. At least three of the employees are still working there, based on calls made to the Denver office.

One of those employees, Donna Hogan, said disciplinary action was based on the severity of the charges and whether the person was in a supervisory position. Hogan - who the report said accepted 13 meals valued at $249 and a ticket to a Toby Keith concert - said she received a warning letter.

She directed further questions to the agency's public affairs office in Washington.

But in an interview with investigators that was described in the Inspector General report, Hogan said she never exceeded gift limits and would pay for her share of the meals.

"I don't feel like I have gone out blatantly and been (lavished) by companies," she told investigators.

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