Gould has also increased the auditing staff substantially. The number of audits performed by ONRR declined initially compared to the Bush years at MMS, from 339 in 2008 to 162 in 2010. But last year the team nearly doubled the number of audits, bringing the number back up to 311. The total amount of dollars recovered from compliance efforts, while rising, still lags behind the $176 million averaged annually during the Clinton administration.
The ONRR director believes that could be due to several factors, including the agency's willingness to impose substantial civil penalties on transgressors. Last summer, for example, Chevron was hit with a $1.1 million fine for claiming improper transportation deductions on offshore leases. "The companies are getting in line," Gould says. "If companies are complying up front, you're not going to see as much recovered in audits. Our goal is to collect every dollar due — no more, no less."
Mark Manger
White hat: In January 2009 Secretary of the Interior Ken Salazar declared an end to "business as usual" at MMS, flanked by ethics czar Tom Strickland (left) and DOI Inspector General Earl Devaney.
John Johnston
Reduction in force: Days after auditor Bobby Maxwell's lawsuit against Kerr-McGee was unsealed, he lost his job at MMS.
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Randy Little is a bit too cynical to accept on face value the claim that energy companies that do business with the government are starting to follow the rules. He'd like to look at the books first. Nothing beats a detailed audit for catching fraud.
"They can make those numbers come out any way they want to," Little says of the government's statistics. "The companies know what the regulations are. They know they're wrong, and they still do what they do."