http://www.nytimes.com/2008/09/11/washington/11royalty.html?_r=1&partner=rssnyt&emc=rss&oref=slogin To bad the law had to get involved Wide-Ranging Ethics Scandal Emerges at Interior Dept. By CHARLIE SAVAGE Published: September 10, 2008 WASHINGTON As Congress prepares to debate expansion of drilling in taxpayer-owned coastal waters, the Interior Department agency that collects oil and gas royalties has been caught up in a wide-ranging ethics scandal including allegations of financial self-dealing, accepting gifts from energy companies, cocaine use and sexual misconduct. In three reports delivered to Congress on Wednesday, the departments inspector general, Earl E. Devaney, found wrongdoing by a dozen current and former employees of the Minerals Management Service, which collects about $10 billion in royalties annually and is one of the governments largest sources of revenue other than taxes. A culture of ethical failure besets the agency, Mr. Devaney wrote in a cover memo. The reports portray a dysfunctional organization that has been riddled with conflicts of interest, unprofessional behavior and a free-for-all atmosphere for much of the Bush administrations watch.