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"The fundamental problem here is lax regulation by the Mineral Management Service. This is a case where a notice was sent to all the lessees in the Gulf of Mexico saying most of them didn't have to comply with the controlling rules." (Bloomberg)

That's an environmental lawyer talking about why he's suing the Mineral Management Service, the federal agency in charge of regulating off-shore drilling in the Gulf of Mexico.  In the wake of the British Petroleum disaster, a new bombshell: The Interior Department says, the MMS regulators were on the take, accepting gifts, drugs and more from the same oil companies they were supposed to be regulating.

We're getting reaction from the Wall Street Journal, CBS News, The Wall Street Pit and CNN.

First to the allegations, that MMS regulators allowed company officials to fill out inspection forms, which the safety officials then signed. Here's the Wall Street Journal with more.

"Employees... accepted sporting-event tickets, meals and other gifts from oil and natural-gas companies and used government computers to view pornography.  MMS employees attended a number of events funded by various off-shore companies, including hunting and fishing trips and golf tournaments."

On CBS Evening News, reporter Sheryl Atkisson says, many of these cozy relationships were the result of lifelong friendships.

"The cozy ties included workers who've moved between industry and government jobs with ease.  Friends who've often known each other since childhood.  MMS staffers accepted gifts from their oil industry friends.  Trips to the Peach Bowl, invitations to skeet shooting, crawfish boils, hunting and fishing vacations.  One employee inspected a company four times, while negotiating a job there."

Wall Street Pit says, it answers the questions everyone has been asking since the BP Oil Disaster began: What regulation?

"Where were the regulators? What’s a little incest without throwing in a healthy dose of sex, drugs, and football as well. Oil Regulation or ‘Sex, Drugs, and Football’. Wow. Think there were kickbacks going on here as well?"

Even largely regulating itself, BP had warning signs.  On CNN, a report shows BP had three indications of trouble aboard the doomed drill rig Deepwater Horizon in the hour before the April 20 explosion.

"Witnesses reported the well was spurting liquid and pressure tests indicated 'a very large abnormality' was occurring aboard the rig."

The Inspector General will testify about the report's findings at a Congressional oversight hearing on the oil spill.

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WRITER: Newsy Staff

PRODUCER: Newsy Staff