| 00:00:00 | DANIELLE BRIAN. |
| 00:00:03 | >> THANK YOU VERY MUCH. |
| 00:00:04 | THANK YOU VERY MUCH, CHAIRMAN. |
| 00:00:06 | THANK YOU VERY MUCH FOR INVITING ME TO TESTIFY TODAY. |
| 00:00:09 | I WANT TO COMPLIMENT THE COMMITTEE FOR HAVING STRUCTURING THE HEARING. |
| 00:00:15 | THAT'S A REALLY IMPORTANT ELEMENT OF OVERSIGHT AND SOMETHING OTHER COMMITTEES SHOULD BE FOLLOWING IN YOUR EXAMPLE. |
| 00:00:20 | SINCE 1995, POGO HAS ISSUED FIVE REPORTS ABOUT MMS'S FAILURE TO DO ITS JOB. |
| 00:00:28 | AND THE DEEP WATER HORIZON DISASTER IS A DIRECT RESULT OF THAT FAILURE. |
| 00:00:32 | SPLITTING UP MMS IS AN IMPORTANT STEP. |
| 00:00:34 | BUT REDUCING THESE STRUCTURAL CONFLICTS WILL NOT FIX TWO PRIMARY DYSFUNCTIONS. |
| 00:00:43 | THE REVOLVEING DOOR BETWEEN INDUSTRY AND MMS -- AND THE REVOLVEING DOOR HAS BEEN SWINGING WILDLIMENT AN EGREGIOUS EXAMPLE IS THE LAST DIRECTOR OF MMS WHO RECENTLY CAME BEFORE YOUR SUBCOMMITTEE AS THE PRESIDENT OF AN OFFSHORE DRILLERS TRADE ASSOCIATION, THE NATIONAL OCEANS INDUSTRY OH. |
| 00:01:06 | AS A DISTURBING SIDE NOTE, HIS PREDECESSOR AT THAT ASSOCIATION, TOM FREY WAS ALSO A FORMER MMS DIRECTOR. |
| 00:01:15 | THESE TWO CASES ARE EMBLEMATIC OF WHAT IS WRONG WITH MMS. |
| 00:01:19 | WHEN THE DIRECTOR JOINS THE TRADE ASSOCIATION WHOSE EXPLICIT MISSION IS TO SECURE A FAVORABLE REGULATORY ENVIRONMENT FOR OFFSHORE DRILLERS, TAXPAYERS HAVE TO QUESTION WHOSE INTERESTS WERE ACTUALLY BEING SERVED WHEN HE WAS AT MMF. |
| 00:01:34 | IN THE CASE OF MR. |
| 00:01:35 | LUCY WHO JOINED THE TRADE ASSOCIATION ONLY 14 MONTHS AFTER LEAVING MMS, IN OTHER WORDS JUST AFTER HIS COOLING OFF PERIOD, IT'S UNCLEAR WHETHER HE WAS ALWAYS IDEOLOGICALLY OPPOSED TO MMF'S MISSION. |
| 00:01:52 | AS WE'VE BEEN DISCUSSING ALL DAY, THEY HAVE SUFFERED FROM A CONFLICT IN ITS MISSION. |
| 00:01:59 | OVERSIGHT AND PROMOTION OF INSTRUCTION SHOULD NEVER BE COMBINED IN ONE AGENCY. |
| 00:02:04 | THE CLEAR ACT TACKLES THIS BY SEPARATING OUT THE AUDITING AND REGULATORY FUNCTIONS AND GIVING IT TO THE I. |
| 00:02:12 | G. SECRETARY SALAZAR'S PROPOSAL WOULD HELP IMPROVE THE AGENCY BY SEPARATING INTO THREE SEPARATE ORGANIZATIONS. |
| 00:02:20 | BUT THIS PLAN'S SUCCESS DEPENDS ON ADEQUATE FUNDING, STAFFING, AND EXPERTISE. |
| 00:02:24 | AND WE ARE CONCERNED THAT THERE'S A PROBLEM PERHAPS IN LETTING THE REGULATORY FUNCTIONS SINK DEEPER INTO THE BUREAUCRACY. |
| 00:02:32 | REALLY BELIEVES THAT PARTICULARLY THE AUDITING FUNCTION THAT IS RESPONSIBLE FOR COLLECTION OF ROYALTIES SHOULD BE MOVED OUT OF INTERIOR ENTIRELY AND MADE PART OF AN INDEPENDENT FEDERAL CONTRACT AUDITING AGENCY. |
| 00:02:44 | WE ALSO BELIEVE IT'S ESSENTIAL TO REBUILD THE GOVERNMENT'S TECHNICAL CAPACITY TO CHALLENGE INDUSTRY WITHIN THE DEPARTMENT OF INTERIOR. |
| 00:02:51 | WE HEARD MEMBERS OF CONGRESS, I BELIEVE IT WAS RANKING MEMBER WHO WAS TALKING ABOUT THE GROUP THINK. |
| 00:02:56 | AND ALSO CONGRESSMAN SARBANES WHO WAS TALKING ABOUT THE KEYS OF THE KINGDOM BEING TURNED OVER TO INDUSTRY. |
| 00:03:05 | THOSE ARE GOING TO BE RESOLVED. |
| 00:03:07 | WE BELIEVE WE CAN REBUILD TECHNICAL CAPACITY SO THEY CAN CHALLENGE INDUSTRY AND HAVE THE INTELLECTUAL SECURITY TO FIGHT BACK WHEN THERE ARE QUESTIONS. |
| 00:03:16 | THE WAY TO DO THIS ALSO IS TO BE ENSURING THAT THERE ARE ENOUGH INSPECTORS AND AUDITORS, CONSIDERING INCREASING THE PAY AND GS SCALE FOR INSPECTORS WHO ARE CRITICAL TO RIG SAFETY. |
| 00:03:26 | AND ALSO DETERMINING WHETHER SOME OF THE FUNCTIONS OF BLM SHOULD BE INCORPORATED INTO THE REORGANIZATION AS THE CLEAR ACT ALSO PRESCRIBES. |
| 00:03:33 | BY BRINGING ALL OF THE INSPECTORS OF BOTH ONSHORE AND OFFSHORE MIGHT HELP TO FOCUS THAT MISSION. |
| 00:03:40 | ALSO VERY PLEASED THAT PRESIDENT OBAMA'S RECENTLY ANNOUNCED NOMINATION OF MICHAEL BROMWICH BECAUSE OF HIS REPUTATION AND THE FACT HE'S NOT FROM THE CULTURE OF THE DEPARTMENT OF INTERIOR AND ALSO HIS LACK OF TIES TO THE OIL AND GAS INDUSTRY COULD BE A TREMENDOUS ASSET IN CHANGING THE CULTURE OF COZINESS WITH INDUSTRY. |
| 00:04:02 | ANOTHER FACTOR WE THINK IS IMPORTANT IN TERMS OF CHANGING THE CULTURE IS THAT MMS SHOULD BE MAKING BETTER USE OF PARTNERS LIKE STATE AND TRIBE AUDITORS. |
| 00:04:13 | AN INCIDENT THAT HAPPENED BEFORE THE COMMITTEE A COUPLE OF YEARS AGO THAT I THINK IS WORTH NOTING. |
| 00:04:19 | WHEN A NORTH DAKOTA STATE AUDITOR TOLD THE SUBCOMMITTEE THAT A HIGH-RANKING MMS OFFICIAL HAD ADVISED HIM AND OTHER MEMBERS OF THE STATE AND TRIBAL ROYALTY COMMITTEE NOT TO TESTIFY BEFORE CONGRESS BECAUSE IT WAS BEST TO KEEP ANY PROBLEMS WITH MMF IN-HOUSE. |
| 00:04:32 | AND THOSE WERE EXACTLY THE KINDS OF PEOPLE THAT SHOULD BE SEEING AS PARTNERS RATHER THAN SILENCED OUTSIDERS. |
| 00:04:40 | ADDITIONALLY, THERE MUST BE RIGOROUS ENFORCEMENT OF EXISTING RULES AND REGULATIONS. |
| 00:04:44 | AND WHEN IT COMES TO ETHICS ENFORCEMENT, THERE IS ONE PIECE OF GOOD NEWS THAT CAME FROM THE MOST RECENT I. |
| 00:04:50 | G. INVESTIGATION. INTO THE CULTURE OF ACCEPTING GIFTS FROM THE OIL AND GAS INDUSTRY APPEARS TO BE ON A DECLINE AFTER ONE REGIONAL SUPERVISOR WAS INVESTIGATED AND TERMINATED AFTER ACCEPTING GIFTS FROM AN OFFSHORE DRILLING CONTRACTOR. |
| 00:05:01 | THIS EXAMPLE SHOWS THAT A CULTURE CAN CHANGE WHEN PEOPLE ARE HELD ACCOUNTABLE FOR MISCONDUCT. |
| 00:05:08 | THE CLEAR ACT LANGUAGE TO INCREASE FINES AND PENALTIES COULD PROVIDE EFFECTIVE TOOLS FOR IMPROVING ROYALTY MANAGEMENT. |
| 00:05:14 | IT'S ALSO IMPORTANT TO NOTE THAT AS THIS HAS BEEN GOING ON FOR YEARS WITH PEOPLE FROM WITHIN MMS, PARTICULARLY ON THE ROYALTY SIDE AND AUDITORS COMING FORWARD AS WHISTLEBLOWERS, THEY HAVE SUFFERED RETALIATION. |
| 00:05:31 | AND THE BIPARTISAN WHISTLEBLOWER PROTECTION ACT WOULD REMEDY THIS GAPING HOLE IN GOVERNMENT ACCOUNTABILITY TOOLS. |
| 00:05:38 | LASTLY, IN MATTER WHAT REFORMS ARE PUT IN PLACE, THEY MUST BE ACCOMPANIED BY INCREASED TRANSPARENCY ABOUT MMS'S OPERATION. |
| 00:05:47 | INTERIOR SHOULD BE PROVIDING TO THE PUBLIC AND CONGRESS EASY ACCESS TO INFORMATION REGARDING LEASES, VOLUMES OF PRODUCTION, PRODUCTION COSTS, AUDIT, ENVIRONMENTAL IMPACT STATEMENTS, AND SAFETY ASSESSMENTS. |
| 00:05:58 | IT'S NOTABLE THAT AFTER THE PRESIDENT'S OPEN GOVERNMENT DIRECTIVE REQUIRED ALL AGENCIES TO PUT THREE HIGH-VALUE DATA SETS ONLINE THAT INTERIOR GAVE NO INFORMATION ABOUT OIL AND GAS LEASING BUT INSTEAD PUT UP A DATA BASE OF NATIONAL TREASURES WHICH HAD ALREADY BEEN ONLINE ANYWAY. |
| 00:06:15 | THANK YOU AGAIN TO THE COMMITTEE FOR YOUR OVERSIGHT OF MMS WHICH HAS BEEN GOING ON FOR MANY YEARS. |
| 00:06:22 | I LOOK FORWARD TO ANSWERING ANY QUESTIONS YOU MAY HAVE AND CONTINUING TO WORK WITH THE COMMITTEE. |
| 00:06:26 | >> THANK YOU. |
| 00:06:27 | WE'LL GET TO THAT IN A MOMENT. |
| 00:06:28 | OUR LAST WITNESS FOR THIS PANEL. |
| 00:06:30 | THE LAST PANEL, |
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