WASHINGTON ( CNN ) -- U.S. government employees received improper gifts from energy industry representatives , and engaged with them in illegal drug use and inappropriate sexual relations , according to a report issued Wednesday . A report says government officials accepted gifts from oil and gas company employees . The report was issued by the Interior Department 's inspector general after a $ 5.3 million investigation `` uncovered recreational marijuana and cocaine use '' by `` a handful '' of Interior Department staff , and found two federal employees `` engaged in brief sexual relationships with representatives from companies doing business '' with the department . Two Interior Department employees `` received combined gifts and gratuities on at least 135 occasions from four major oil and gas companies with whom they were doing business -- a textbook example of improperly receiving gifts from prohibited sources , '' Inspector General Earl Devaney says in a letter to Interior Secretary Dirk Kempthorne accompanying the report . Randall Luthi , head of the Minerals Management Service at the Interior Department , said the public had not suffered financial losses as a result of the employees ' behavior . Some of the government employees tried to hide their close association with the industry they were supposed to be regulating , the report says . The investigation turned up e-mails in which MMS employees `` preparing to attend industry events used such language as 'this trip is to be kept quiet , ' or were asked to RSVP 'in private ' by their supervisor , '' the report says . `` When we asked one of these employees why they needed to avoid discussing their social activities with industry , he responded with a slight chuckle , 'They might have , you know , contacted the [ inspector general ] , ' `` the report says . The investigation appears to have been prompted by an internal whistle-blower 's report in 2006 , and concerns activity from 2002 to 2006 by the department responsible for selling the oil and gas the government collects as rent from companies drilling on federal lands . The report alleges inappropriate behavior by 19 members of the Royalty in Kind program -- about one-third of the department . Some have since left the department , making it unclear what kind of disciplinary action they could be subject to . The Department of Justice declined to prosecute two former employees named in the report , the inspector general said , without saying why . Another pleaded guilty to a criminal charge . Department of Justice spokeswoman Laura Sweeney said the department did receive `` one or more referrals related to matters referenced in the Department of Interior inspector general reports , '' but she declined to comment further . MMS head Luthi said only `` six or seven '' employees named in the report still work for the department . He vowed appropriate action by the time he leaves office in January . Democrats used the report to accuse President Bush 's administration of being too close to the oil industry . `` The Bush administration put an 'America for Sale ' sign on the White House lawn from day one and has been courting Big Oil ever since , '' Rep. Louise Slaughter , D-New York and chairwoman of the House Rules Committee , said in a written statement . `` Democrats have been saying it for some time , but this proves it . This administration is literally in bed with Big Oil . Little did we know they were such a cheap date . '' Sen. Bill Nelson , a Florida Democrat , said the report should make Congress reconsider plans to expand offshore drilling . `` The rest of the United States government does n't need to jump in bed with '' the oil industry , he said . `` Offshore drilling will not solve our energy crisis nor will it bring down prices at the pump , '' Nelson said . `` Instead , it will enrich the oil companies and reward the culture of corruption that has been fostered , funded and now exposed by the inspector general . '' House Speaker Nancy Pelosi , D-California , said in a statement : . `` This report documents the 'pervasive culture of exclusivity ' that has cheated the American taxpayer out of the billions of dollars owed them by the oil companies , '' Pelosi said . Sen. Dianne Feinstein , D-California , called the allegations in the report `` unacceptable . '' House Minority Leader John Boehner , a Republican from Ohio and an advocate of easing drilling rules , said that in 2006 , `` our members on the Government Reform Committee were investigating this problem in the department . '' `` Our members of the last two years ... have been pushing [ current ] Chairman [ Rep. Henry ] Waxman to continue this investigation and to have hearings and he 's refused to do it , '' Boehner said . Waxman is a Democrat from California . Two oil companies mentioned in the report , Shell and Chevron , declined to comment , saying they still needed to review it . A third , Hess , said in a statement : `` We do not believe we are the focus of the investigation and we will cooperate with any further requests from the inspector general 's office that may arise . '' CNN 's Karina Frayter and Carol Cratty contributed to this report .
Democrats : Report shows Bush administration too close to oil industry . Interior Department inspector general found evidence of unethical activity . Officials had sex with , accepted gift from oil and gas employees , IG found . Department says taxpayers did not suffer any financial losses due to relationships .