DENVER—Gov. Bill Ritter said reaction to the sex and graft scandal at a federal agency that collects oil royalties might be used to promote a Colorado ballot proposal that would end a property tax credit for the oil and gas industry.
Ritter said Friday that the initiative’s proponents are looking at what effects the allegations about the Minerals Management Service might have on the campaign for Amendment 58.
The initiative, which Ritter supports, would end deductions that allow the industry to take a credit of up to 87.5 percent of the prior year’s property tax liability from their severance taxes. He said besides promoting ending the credit, the pro-58 amendment campaign might refer to allegations that some federal employees in Denver and Washington had sex with energy company employees, accepted gifts and rigged contracts.
“That really is a black eye on the federal regulators but also on the industry,” Ritter said. “People paying attention to this have to be very disturbed that there was this kind of activity on the part of industry and the receipt of those kinds of gifts on the part of government.”
Democratic members of Congress want hearings on allegations aired last week about 13 former and current Interior Department employees responsible for collecting billions of dollars in federal oil royalties. Reports by the department’s inspector general allege the employees influenced contracts, worked part-time as private oil consultants, had sexual relationships with oil company employees and accepted lavish gifts.
Dan Hopkins, spokesman for Coloradans for a Stable Economy, which opposes Amendment 58, said the scandal would be a red herring that voters won’t fall for.
“If the governor and proponents do sink to that level, I think it would show they’re somewhat desperate in trying to get their message across,” Hopkins said.
