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Scientists warn of unseen deepwater oil disaster

Posted by Admin on June 1, 2010

By MATTHEW BROWN | Posted: Monday, May 31, 2010 4:11 pm

Independent scientists and government officials say there’s a disaster we can’t see in the Gulf of Mexico’s mysterious depths, the ruin of a world inhabited by enormous sperm whales and tiny, invisible plankton.

Researchers have said they have found at least two massive underwater plumes of what appears to be oil, each hundreds of feet deep and stretching for miles. Yet the chief executive of BP PLC _ which has for weeks downplayed everything from the amount of oil spewing into the Gulf to the environmental impact _ said there is “no evidence” that huge amounts of oil are suspended undersea.

BP CEO Tony Hayward said the oil naturally gravitates to the surface _ and any oil below was just making its way up. However, researchers say the disaster in waters where light doesn’t shine through could ripple across the food chain.

“Every fish and invertebrate contacting the oil is probably dying. I have no doubt about that,” said Prosanta Chakrabarty, a Louisiana State University fish biologist.

On the surface, a 24-hour camera fixed on the spewing, blown-out well and the images of dead, oil-soaked birds have been evidence of the calamity. At least 20 million gallons of oil and possibly 43 million gallons have spilled since the Deepwater Horizon drilling rig exploded and sank in April.

That has far eclipsed the 11 million gallons released during the Exxon Valdez spill off Alaska’s coast in 1989. But there is no camera to capture what happens in the rest of the vast Gulf, which sprawls across 600,000 square miles and reaches more than 14,000 feet at its deepest point.

Every night, the denizens of the deep make forays to shallower depths to eat _ and be eaten by _ other fish, according to marine scientists who describe it as the largest migration on earth.

In turn, several species closest to the surface _ including red snapper, shrimp and menhaden _ help drive the Gulf Coast fishing industry. Others such as marlin, cobia and yellowfin tuna sit atop the food chain and are chased by the Gulf’s charter fishing fleet.

Many of those species are now in their annual spawning seasons. Eggs exposed to oil would quickly perish. Those that survived to hatch could starve if the plankton at the base of the food chain suffer. Larger fish are more resilient, but not immune to the toxic effects of oil.

The Gulf’s largest spill was in 1979, when the Ixtoc I platform off Mexico’s Yucatan peninsula blew up and released 140 million gallons of oil. But that was in relatively shallow waters _ about 160 feet deep _ and much of the oil stayed on the surface where it broke down and became less toxic by the time it reached the Texas coast.

But last week, a team from the University of South Florida reported a plume was headed toward the continental shelf off the Alabama coastline, waters thick with fish and other marine life.

The researchers said oil in the plumes had dissolved into the water, possibly a result of chemical dispersants used to break up the spill. That makes it more dangerous to fish larvae and creatures that are filter feeders.

Responding to Hayward’s assertion, one researcher noted that scientists from several different universities have come to similar conclusions about the plumes after doing separate testing.

No major fish kills have been reported, but federal officials said the impacts could take years to unfold.

“This is just a giant experiment going on and we’re trying to understand scientifically what this means,” said Roger Helm, a senior official with the U.S. Fish and Wildlife Service.

In 2009, LSU’s Chakrabarty discovered two new species of bottom-dwelling pancake batfish about 30 miles off the Louisiana coastline _ right in line with the pathway of the spill caused when the Deepwater Horizon burned and sank April 24.

By the time an article in the Journal of Fish Biology detailing the discovery appears in the August edition, Chakrabarty said, the two species _ which pull themselves along the seafloor with feet-like fins _ could be gone or in serious decline.

“There are species out there that haven’t been described, and they’re going to disappear,” he said.

Recent discoveries of endangered sea turtles soaked in oil and 22 dolphins found dead in the spill zone only hint at the scope of a potential calamity that could last years and unravel the Gulf’s food web.

Concerns about damage to the fishery already is turning away potential customers for charter boat captains such as Troy Wetzel of Venice. To get to waters unaffected by the spill, Wetzel said he would have to take his boat 100 miles or more into the Gulf _ jacking up his fuel costs to where only the wealthiest clients could afford to go fishing.

Significant amounts of crude oil seep naturally from thousands of small rifts in the Gulf’s floor _ as much as two Exxon Valdez spills every year, according to a 2000 report from government and academic researchers. Microbes that live in the water break down the oil.

The number of microbes that grow in response to the more concentrated BP spill could tip that system out of balance, LSU oceanographer Mark Benfield said.

Too many microbes in the sea could suck oxygen from the water, creating an uninhabitable hypoxic area, or “dead zone.”

Preliminary evidence of increased hypoxia in the Gulf was seen during an early May cruise aboard the R/V Pelican, carrying researchers from the University of Georgia, the University of Mississippi and the University of Southern Mississippi.

An estimated 910,000 gallons of dispersants _ enough to fill more than 100 tanker trucks _ are contributing a new toxin to the mix. Containing petroleum distillates and propylene glycol, the dispersants’ effects on marine life are still unknown.

What is known is that by breaking down oil into smaller droplets, dispersants reduce the oil’s buoyancy, slowing or stalling the crude’s rise to the surface and making it harder to track the spill.

Dispersing the oil lower into the water column protects beaches, but also keeps it in cooler waters where oil does not break down as fast. That could prolong the oil’s potential to poison fish, said Larry McKinney, director of the Harte Research Institute at Texas A&M University-Corpus Christi.

“There’s a school of thought that says we’ve made it worse because of the dispersants,” he said.

___

Associated Press writer Jason Dearen contributed to this report from San Francisco.

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There Was 'Nobody in Charge'

Posted by Admin on May 29, 2010

[horizon_fire]Associated Press

In this aerial photo taken in the Gulf of Mexico more than 50 miles southeast of Venice on Louisiana’s tip, the Deepwater Horizon oil rig burned on April 21.

In the minutes after a cascade of gas explosions crippled the Deepwater Horizon on April 20, confusion reigned on the drilling platform. Flames were spreading rapidly, power was out, and terrified workers were leaping into the dark, oil-coated sea. Capt. Curt Kuchta, the vessel’s commander, huddled on the bridge with about 10 other managers and crew members.

Andrea Fleytas, a 23-year-old worker who helped operate the rig’s sophisticated navigation machinery, suddenly noticed a glaring oversight: No one had issued a distress signal to the outside world, she recalls in an interview. Ms. Fleytas grabbed the radio and began calling over a signal monitored by the Coast Guard and other vessels.

[OilCrisisLogo]

“Mayday, Mayday. This is Deepwater Horizon. We have an uncontrollable fire.”

When Capt. Kuchta realized what she had done, he reprimanded her, she says.

“I didn’t give you authority to do that,” he said, according to Ms. Fleytas, who says she responded: “I’m sorry.”

Part Two of a Journal investigation finds the doomed oil rig was unprepared for disaster, hobbled by a complex chain of command and a balky decision-making structure.

Part One: BP Decisions Set Stage for Disaster

An examination by The Wall Street Journal of what happened aboard the Deepwater Horizon just before and after the explosions suggests the rig was unprepared for the kind of disaster that struck and was overwhelmed when it occurred. The events on the bridge raise questions about whether the rig’s leaders were prepared for handling such a fast-moving emergency and for evacuating the rig—and, more broadly, whether the U.S. has sufficient safety rules for such complex drilling operations in very deep water.

The chain of command broke down at times during the crisis, according to many crew members. They report that there was disarray on the bridge and pandemonium in the lifeboat area, where some people jumped overboard and others called for boats to be launched only partially filled.

The vessel’s written safety procedures appear to have made it difficult to respond swiftly to a disaster that escalated at the speed of the events on April 20. For example, the guidelines require that a rig worker attempting to contain a gas emergency had to call two senior rig officials before deciding what to do. One of them was in the shower during the critical minutes, according to several crew members.

Editors’ Deep Dive: Fines, New Rules Loom for Oil Firms

The written procedures required multiple people to jointly make decisions about how to respond to “dangerous” levels of gas—a term that wasn’t precisely defined—and some members of the crew were unclear about who had authority to initiate an emergency shutdown of the well.

This account of what happened aboard the rig at the time of the explosions, which killed 11, is based on interviews with survivors, their written accounts, testimony to the Coast Guard and internal documents of rig operator Transocean Ltd. and well owner BP PLC.

In written responses to the Journal, Transocean said that the time between the first sign of trouble and the catastrophic explosion was too short for the crew to have done anything to effectively prevent or minimize the disaster. The company also said the rig’s chain of command was in place and “did not hinder response time or activity.”

At a Coast Guard hearing on Thursday, Jimmy Wayne Harrell, the top Transocean executive on the rig, acknowledged under questioning that a split chain of command on the platform could lead to “confusion” but it didn’t hinder emergency response. At the same hearing, Capt. Kuchta said that communications had not been a problem.

Under pressure to step up his response to the Gulf of Mexico oil disaster, President Obama vowed tougher regulations for the oil industry. Joe White, Evan Newmark and Dennis Berman discuss. Also, a discussion on why ‘Bluedog’ Democrats caused a new jobs bill to falter.

BP declined to comment on anything that happened April 20.

In the minutes before the Deepwater Horizon exploded, almost no one on board realized that serious trouble was brewing, other than a few men on the drilling floor—the uppermost of three levels on the massive structure. The sea was as still as glass. A cool wind blew faintly from the north. Capt. Kuchta was hosting two BP executives on board for a ceremony honoring the rig for seven years without a serious accident.

Nearly 20 men, many of them close friends, were operating the drilling apparatus, which already had bored through more than 13,000 feet of rock about 5,000 feet deep in the Gulf of Mexico. No alarms had sounded that day signaling gas on the platform.

At about 9:47 p.m., workers all over the rig heard a sudden hiss of methane gas. Methane is often present in the ground in and near reservoirs of crude oil, and managing the threat is a regular part of drilling.

Within two minutes, pressure caused by gas in the well pipe had spiked dramatically, drilling records indicate. A torrent of methane gas struck the rig. Power failed throughout the vessel. “Everything started jumping up and down and rocking us,” said Kevin Senegal, 45, a tank cleaner, in an interview.

The Final Moments

See a 3-D diagram of the rig as the explosion happened. Plus, read more about the Deepwater Horizon Victims .

Out on the water, 40 feet away, a 260-foot supply ship called the Damon B. Bankston was tethered to the rig by a hose. That ship’s captain said in an interview that he saw drilling “mud,” which is used as a counterweight to gas in the well, flying out of the drilling derrick like a “volcano.” He radioed the bridge of the Deepwater Horizon. He was told there was “trouble with the well” and the Bankston should move 150 meters back. Then the channel went silent.

Micah Sandell, a 40-year-old with a wife and three children, watched with alarm from the rig’s gantry crane, a massive device that moved across the main deck on a track. He radioed his crew to move away from the derrick.

Down on the deck, Heber Morales, 33, a former Marine from Texas, turned to the worker beside him. “Oh, man. That’s not good,” he said. The two moved away from the derrick.

Up in the crane, Mr. Sandell saw another worker on the deck, assistant driller Donald Clark, a 48-year-old former soybean farmer from Newellton, La., bolt for a set of stairs leading for the area where workers were fighting to control the well.

Daryl Peveto/LUCEO for The Wall Street Journal

Andrea Fleytas

Ms. Fleytas, one of only three female workers in the 126-member crew, was on the bridge monitoring the rig’s exact location and stability. Briefly, all the equipment went black, then a backup battery kicked on. She and her coworkers checked their monitors, which indicated no engines or thrusters were operational. Multiple gas alarms were sounding. One of the six huge engines that kept the floating platform stable was revving wildly.

No methane had been detected on the Deepwater Horizon before the massive gas jolt. So no “Level 1” gas emergency—according to Transocean safety regulations, when “dangerous” levels of gas are detected in the well—had been declared, according to crew members. That meant the crew had gotten no general alert to prepare for trouble and no order to shut down anything that might ignite the gas.

The rig’s regulations state that in the event of such an emergency, the two top managers—on April 20 they were BP’s senior person on the rig, Donald Vidrine, and Transocean’s installation manager, Mr. Harrell—were to go to the drilling floor and evaluate the situation jointly. But once the gas hit, neither was able to get to the area.

Transocean says the rig’s chain of command and safety standards were followed and worked effectively under the circumstances. Mr. Harrell didn’t return phone calls. BP said Mr. Vidine was unavailable to comment.

When the pressure in the well spiked suddenly, the drilling crew had limited options and little time to act. Jason Anderson, a 35-year-old “toolpusher” who was supervising the crew on the oil platform’s drilling floor, tried to divert gas away from the rig by closing the “bag,” a thick membrane that surrounds a key part of the drill mechanism. That didn’t work.

Four emergency calls were made from the rig floor to senior crew members in the moments before the blast, according to a BP document reviewed by the Journal. One went to Mr. Vidrine, according to notes about a statement he gave the Coast Guard that were reviewed by the Journal. The rig worker, who isn’t identified in the notes, told him the drilling crew was “getting mud back,” a sign that gas was flooding into the well. At that point, Mr. Vidrine rushed for the drilling floor, but already “mud was everywhere,” he told the Coast Guard.

At about 9:50 p.m., Stephen Curtis, the 40-year-old assistant driller working with Mr. Anderson, called the rig’s senior toolpusher, Randy Ezell, who was in his sleeping quarters, according to a statement given by Mr. Ezell to the Coast Guard. Mr. Curtis said that methane was surging into the well and workers were on the verge of losing control.

Two rig workers who later discussed the matter with Mr. Ezell said he was told that Mr. Anderson was going to trigger the blowout preventer, a 450-ton device designed to slice the drill pipe at the ocean floor and seal the well in less than a minute. If triggered in time, it might have been enough to prevent the explosions, or at least limit the scale of the disaster, say some drilling experts. Mr. Ezell prepared to go to the drilling floor, according to his statement.

Seconds later, the methane ignited, possibly triggered by the revving engine. That set off an explosion that blew away critical sections of the Deepwater Horizon, sheared off at least one engine, set large parts of the rig on fire and allowed oil to begin spewing into the sea.

Mr. Curtis, an ex-military man who enjoyed turkey hunting, and Mr. Anderson, a father of two who was planning to leave the Deepwater Horizon for good at the end of his 21-day rotation, almost certainly were killed instantly, according to other workers. So was veteran driller Dewey Revette, 48, from State Line, Miss. Six men working nearby also died. They included 22-year-old Shane Roshto and Karl Kleppinger, Jr., 38, from Natchez, Miss., and Mr. Clark, the assistant driller who had rushed to the stairs to help out.

Andre Damon/World Socialist Web Site

Tracy and Aaron Kleppinger, widow and son of worker Karl Kleppinger, at his funeral in Natchez, Miss., May 3.

Dale Burkeen, a 37-year-old Mississippian who operated the rig’s tall starboard crane, had been trying to get out of harm’s way when the blast hit. It blew him off a catwalk, other workers say, and he fell more than 50 feet to the deck, where he died.

A series of detonations followed. The motor room was wrecked. Steel doors were blown off their hinges. The wheel on one door flew off and struck a worker. Crew members were hurled across rooms, leaving many with broken bones, gashes and serious burns.

When he heard the first explosion, toolpusher Wyman Wheeler, who was scheduled to go home the next day, was in his bunk. He got up to investigate. The second blast blew the door off his quarters, breaking his shoulder and right leg in five places, according to family members. Other workers scooped him up and carried him toward the lifeboat deck on a stretcher.

The explosions knocked gantry-crane operator Mr. Sandell out of his seat and across the cab. As he fled down a spiral staircase to the deck, another explosion sent him into the air. He fell more than 10 feet, then got up to run. “Around me all over the deck, I couldn’t see nothing but fire,” he said in an interview. “There was no smoke, only flames.” He ran for the lifeboat deck.

From the bridge, Chief Mate David Young ran outside to investigate and to suit up for firefighting. After he encountered only one other crew member in gear, he returned to the bridge. Crew members say no significant firefighting efforts were undertaken. “We had no fire pumps. There was nothing to do but abandon ship,” said Capt. Kuchta, in testimony at a Coast Guard inquiry on Thursday.

As workers poured out of their quarters, many found their routes to open decks blocked. Ceiling tiles and insulation were blown everywhere. In some areas, fire-suppression systems were discharging carbon dioxide. Stairways were gone.

According to many workers, most crew members didn’t get clear direction from the bridge about what to do for several minutes. Finally, the public-address system began to blare: “Fire. Fire. Fire. Fire on the rig floor. This is not a drill.”

Many crew members couldn’t reach their designated assembly areas. Scores scrambled instead toward the only two accessible lifeboats, which hung by cables 75 feet above the water on one side of the rig. Each enclosed and motorized boat could hold about 75 passengers.

“The scene was very chaotic,” said worker Carlos Ramos in an interview. “People were in a state of panic.” Flames were shooting out of the well hole to a height of 250 feet or more. Debris was falling. One crane boom on the rig melted from the heat and folded over.

Injured workers were scattered around the deck. Others were yelling that the rig was going to blow up. “There was no chain of command. Nobody in charge,” Mr. Ramos said.

“People were just coming out of nowhere and just trying to get on the lifeboats,” said Darin Rupinski, one of the operators of the rig’s positioning system, in an interview. “One guy was actually hanging off the railing…. People were saying that we needed to get out of there.”

At one point, a Transocean executive was standing partly in the lifeboat, helping injured workers off the rig and telling Mr. Rupinski not to lower the boat yet. Rig workers piling in were shouting for him to get the boat down. “There had to be at least 50 people in the boat, yelling, screaming at you to lower the boat,” Mr. Rupinski recalled. “And you have a person outside saying, ‘We have to wait.'”

Terrified workers began jumping directly into the sea—a 75-foot leap into the darkness. Mr. Rupinski radioed the bridge that workers were going overboard.

A Transocean spokesman said the company hasn’t yet been able to determine exactly what happened in the lifeboat loading area.

Capt. Kuchta and about 10 other executives and crew members, including Ms. Fleytas, were gathered on the bridge, which was not yet threatened by fire. When word reached the bridge that workers were jumping, Ms. Fleytas’s supervisor issued a “man overboard” call.

The Bankston, now positioned hundreds of feet from the burning rig, picked up the call. Officers on that vessel had seen what appeared to be shiny objects—the reflective life vests on rig workers—tumbling from the platform into the water. The Bankston put a small boat into the water and began a rescue operation.

Messrs. Vidrine and Harrell, the two highest ranking executives, appeared on the bridge. Mr. Vidrine later told the Coast Guard that a panel on the bridge showed that the drilling crew, all of whom were dead by then, had already closed the “bag,” the thick rubber membrane around a section of the well.

But the emergency disconnect, which would sever the drilling pipe and shut down the well, had not been successfully triggered. Some crew members on the bridge said the disconnect needed to be hit, and a higher-ranking manager said to do so, according to an account given to the Coast Guard. Then another crew member said the cutoff couldn’t be hit without permission from Mr. Harrell, who then gave the OK. At 9:56 p.m., the button finally was pushed, with no apparent effect, according to an internal BP document.

Mr. Young, the chief mate who had left the bridge to survey the fire, told Capt. Kuchta that the fire was “uncontrollable,” and that everyone needed to abandon the rig immediately, according to two workers on the bridge. Under Transocean safety regulations, the decision to evacuate was to be made by Capt. Kuchta and Mr. Harrell.

Capt. Kuchta didn’t immediately issue the order, even though at least one lifeboat had already pushed away, according to several people on the bridge. At the Coast Guard hearing Thursday, several crew members said they weren’t certain who issued the abandon ship order or whether one was ever given. Capt. Kuchta didn’t return calls seeking comment, but in his testimony said it was obvious to all by that time that the crew should evacuate.

Alarmed at the situation, Ms. Fleytas recalled in the interview, she turned on the public-address system and said: “We are abandoning the rig.”

Capt. Kuchta told everyone who remained on the bridge to head for the lifeboats, according one person who was there.

One boat was long gone. When they reached the boarding area, the second was motoring away, according to several witnesses. Ten people were left on the rig, including Mr. Wheeler, the injured toolpusher, who was lying on a gurney.

The deck pulsed with heat. The air was thick with smoke, and the surface of the water beneath the rig—covered with oil and gas—was burning. Crew members attached a 25-foot life raft to a winch, swung it over a railing and inflated it. Mr. Wheeler was lifted in and several others climbed in with him. As the raft began descending, Ms. Fleytas jumped in. The remaining people on the rig, including Capt. Kuchta, leapt into the Gulf.

Once the life raft reached the ocean, it didn’t move, even as fire spread across the water. Some hanging on to its sides thought the heat of the rig was creating a draft sucking the craft back in. Terrified, Ms. Fleytas rolled out of the raft into the oil-drenched water.

“All I saw was smoke and fire,” she recalled. “I swam away from the rig for my life.”

Minutes later, the rescue boat from the Bankston plucked Ms. Fleytas and several others from the water. The crew of the small boat saw that a line attached to the life raft was still connected to the burning rig.

“Cut the line,” yelled one Bankston crew member. Another passed over a knife, the raft was cut free, and the last survivors were towed away from the fire. All told, the Bankston rescued 115, including 16 who were seriously injured. A Transocean spokesman says that the fact that so many survived “is a testament to the leadership, training, and heroic actions” of crew members.

The crew of the Deepwater Horizon watched from the deck of the Bankston as the drilling platform burned through the night. More than 24 hours later, it sank in 5,000 feet of water.

—Jason Womack, Ben Casselman, Russell Gold, Jennifer Levitz, Miguel Bustillo and Jeffrey Ball contributed to this article.

Write to Douglas Blackmon at douglas.blackmon@wsj.com, Vanessa O’Connell atvanessa.o’connell@wsj.com, Alexandra Berzon at alexandra.berzon@wsj.com and Ana Campoy at ana.campoy@dowjones.com

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5 weeks of gushing oil: 'Top kill' plug readied

Posted by Admin on May 26, 2010

5 weeks of gushing oil: \'Top kill\' plug readied

By MATTHEW DALY | Posted: Tuesday, May 25, 2010 11:09 pm

Marking five disastrous weeks, BP readied yet another attempt to slow the oil gushing into the Gulf on Tuesday as a federal report alleged drilling regulators have been so close to oil and gas companies they’ve been accepting gifts and even negotiating to go work for them.

President Barack Obama prepared to head to the Gulf on Friday to review efforts to halt the millions of gallons of contaminating crude, while scientists said underwater video of the leak showed the plume growing significantly darker, suggesting heavier, more-polluting oil is spewing out.

Ahead of his trip to the Gulf, Obama planned to address an Interior Department review of offshore drilling that’s expected to recommend tougher safety protocols and inspections for the industry, according to an administration official. The official spoke on condition of anonymity ahead of the public release Thursday of the findings of the 30-day review Obama ordered after the spill.

BP’s next effort to stop the damaged oil well, perhaps Wednesday, will be to force-feed heavy drilling mud and cement into the well to plug it up. The tactic, called a “top kill,” has never been tried a mile beneath the sea, and company executives estimate its chances of success at 60 to 70 percent.

Also on Tuesday, in Jackson, Miss., 11 men who died in the April 20 rig explosion were honored at a somber memorial service with tributes from country music stars and drilling company executives.

“This is the one of the most difficult days for many of us here. But for the families of our 11 lost colleagues, this is just another of many difficult days,” said Steven Newman, CEO of Transocean Ltd., the Swiss-based owner of the Deepwater Horizon rig.

In Washington, Interior Secretary Ken Salazar said he has been laboring to root out problems at the agency that regulates offshore drilling. And the Justice Department said it will take all appropriate steps to ensure that those responsible for the disastrous blowout and oil spill are held accountable.

On Capitol Hill, lawmakers continued feuding over a law that caps oil spill liability at $75 million for economic damages beyond direct cleanup costs. Democrats have tried to pass a bill raising the limit to $10 billion but have been blocked by Republicans.

A new report from the Interior Department’s acting inspector general found that an inspector for the Minerals Management Service, which oversees drilling, admitted using crystal methamphetamine and said he might have been under the influence of the drug at work.

The report cited a variety of violations of federal regulations and ethics rules at the agency’s Louisiana office. Previous inspector general investigations have focused on inappropriate behavior by the royalty-collection staff in the agency’s Denver office.

The report adds to the climate of frustration and criticism facing the Obama administration, although it covers actions before the spill. Millions of gallons of oil are gushing into the Gulf, endangering wildlife and the livelihoods of fishermen, as scrutiny intensifies on a lax regulatory climate.

In a letter to Sen. Barbara Boxer, D-Calif., Assistant Attorney General Ronald Weich said he could not confirm or deny a criminal investigation was under way, but he said a team of investigators has been in the Gulf for three weeks. Justice lawyers have been meeting state officials and federal prosecutors to assure a coordinated effort, Weich said.

The Interior Department’s acting inspector general, Mary Kendall, said her report began as a routine investigation.

“Unfortunately, given the events of April 20 of this year, this report had become anything but routine, and I feel compelled to release it now,” she said.

Her biggest concern is the ease with which minerals agency employees move between industry and government, Kendall said. While no specifics were included in the report, “we discovered that the individuals involved in the fraternizing and gift exchange _ both government and industry _ have often known one another since childhood,” Kendall said.

Relationships took precedence over their jobs, Kendall said.

The report follows a 2008 report by then-Inspector General Earl Devaney that decried a “culture of ethical failure” and conflicts of interest at the minerals agency, which is part of the Interior Department.

Salazar called the latest report “deeply disturbing” and said it highlights the need for changes he has proposed, including a plan to abolish the minerals agency and replace it with three new entities.

The report “is further evidence of the cozy relationship between some elements of MMS and the oil and gas industry,” Salazar said. Several employees cited in the report have resigned, were fired or were referred for prosecution, he said, and actions may be taken against others as warranted.

The report covers activities between 2000 and 2008. Salazar said he has asked Kendall to expand her investigation to look into agency actions since he took office in January 2009.

Members of Congress and President Obama have criticized what they call the cozy relationship between regulators and oil companies and have vowed to reform MMS, which both regulates the industry and collects billions in royalties from it.

The report said that employees from the Lake Charles, La., MMS office had repeatedly accepted gifts, including hunting and fishing trips from the Island Operating Company, an oil and gas company working on oil platforms regulated by the Interior Department.

Taking such gifts “appears to have been a generally accepted practice,” the report said.

Two employees at the Lake Charles office admitted using illegal drugs, and many inspectors had e-mails that contained inappropriate humor and pornography on their government computers, the report said.

Kendall recommended a series of steps to improve ethical standards, including a two-year waiting period for agency employees to join the oil or gas industry.

One MMS inspector conducted four inspections of Island Operating platforms while negotiating and later accepting employment with the company, the report said.

A spokeswoman for Island Operating Company could not be reached for comment. The Louisiana-based company says on it website that it has “an impeccable safety record” and cites Safety Awards for Excellence from the MMS in 1999 and 2002. The company was a finalist in other years.

“Island knows how to get the job done safely and compliantly,” the website says.

Sen. Dianne Feinstein, D-Calif., called the report “yet another black eye for the Minerals Management Service. Once again, MMS employees have been found culpable of performing shoddy oversight of offshore drilling. The report reveals an overly cozy culture between MMS regulators and the oil industry.”

Feinstein, who chairs a Senate Appropriations subcommittee that oversees the Interior Department, said she will hold a hearing next month on Salazar’s plan to restructure the agency.

The oil industry and its allies say a higher liability limit would make it difficult for them to get insured and would especially hinder smaller independent drillers. But Democrats said such companies should be capable of paying for whatever damages they cause or taxpayers will get stuck with the tab.

“An independent is not a mom and pop. We are talking about major size corporations,” said Sen. Bill Nelson, D-Fla. “If they cause the damage, why should they not be responsible?”

___

Associated Press writers Ben Evans, Ben Feller and Erica Werner in Washington, Holbrook Mohr in Jackson, Miss., and Greg Bluestein in Covington, La., contributed to this story.

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Feds: Government can't push BP aside on oil spill

Posted by Admin on May 25, 2010

Feds: Government can\'t push BP aside on oil spill

By GREG BLUESTEIN and ERICA WERNER | Posted: Monday, May 24, 2010 11:28 pm

The Obama administration’s point man on the oil spill rejected the notion of removing BP and taking over the crisis Monday, saying the government has neither the company’s expertise nor its deep-sea equipment.

“To push BP out of the way would raise a question, to replace them with what?” Coast Guard Commandant Thad Allen, who is heading the federal response to the spill, said at a White House briefing.

The White House is facing increasing questions about why the government can’t assert more control over the handling of the catastrophe, which unfolded after a BP offshore drilling rig blew up April 20.

All of BP’s attempts to stop the leak have failed, despite the oil giant’s use of joystick-operated submarine robots that can operate at depths no human could withstand. Millions of gallons of brown crude are now coating birds and other wildlife and fouling the Louisiana marshes.

BP is pinning its hopes of stopping the gusher on yet another technique never tested 5,000 feet underwater: a “top kill,” in which heavy mud and cement would be shot into the blown-out well to plug it up. The top kill could begin as early as Wednesday, with BP CEO Tony Hayward giving it a 60 to 70 percent chance of success.

Allen said federal law dictated that BP had to operate the cleanup, with the government overseeing its efforts.

“They’re exhausting every technical means possible to deal with that leak,” he said. “I am satisfied with the coordination that’s going on.”

Interior Secretary Ken Salazar suggested over the weekend that the government could intervene aggressively if BP wasn’t delivering. “If we find that they’re not doing what they’re supposed to be doing, we’ll push them out of the way appropriately,” he said.

But asked about that comment Monday, Allen said: “That’s more of a metaphor.”

Allen said BP and the government are working closely together, with the government holding veto power and adopting an “inquisitorial” stand toward the company’s ideas. The commandant also said the government has the authority to tell BP what to do, and such orders carry the force of law.

Homeland Security Secretary Janet Napolitano also took a more measured tone at a news conference Monday in Galliano, La., with Salazar and six U.S. senators who had flown over the coast to see the damage. “We continue to hold BP responsible as the responsible party, but we are on them, watching them,” she said.

BP said it is doing all it can to stop the leak. Its chief operating officer, Doug Suttles, made the rounds of network morning news shows to say that the company understands people are frustrated.

“Clearly Secretary Salazar is telling us that we need to do this as expediently as we can,” Suttles said. “And of course we are.”

Hayward, BP’s chief executive, walked along oil-soaked Fourchon Beach and said he had underestimated the possible environmental effects.

“I’m as devastated as you are by what I’ve seen here today,” Hayward told reporters after he spoke with cleanup workers in white overalls and yellow boots, some shoveling oily sand into garbage cans. “We are going to do everything in our power to prevent any more oil from coming ashore, and we will clean every last drop up and we will remediate all of the environmental damage.”

Mark Kellstrom, an analyst with Summit, N.J.-based Strategic Energy Research, said time might be running out for BP to continue calling the shots. “The rhetoric is growing up in Washington for the politicians to kick out BP and let the government take over,” Kellstrom said, though he added that it would be a mistake.

BP had hoped to try a top kill earlier but needed more time to get equipment into place and test it. A top kill has worked on aboveground oil wells in Kuwait and Iraq but has never before been attempted so far underwater.

Suttles said the biggest technical challenge is that the fluid must be pumped in very quickly, and engineers need to make sure it goes into the well, not out through the leaking pipe, which could make the leak worse.

A containment device is on the seafloor, ready to be put in place if the top kill fails or makes the leak worse. It is a smaller version of a 100-ton box that BP lowered several weeks ago in hopes of capturing much of the oil. But it got clogged with icy crystals, and BP was forced to abandon it.

Engineers are working on several other backup plans in case the top kill doesn’t work, including injecting assorted junk into the well to clog it up, and lowering a new blowout preventer on top of the one that failed.

The only certain permanent solution is a pair of relief wells crews have already started drilling, but the task could take at least two months.

In another source of tension between BP and the government, the company was still using a certain chemical dispersant Monday to fight the oil despite orders from the Environmental Protection Agency to employ something less toxic.

“If we can find an alternative that is less toxic and available, we will switch to that product,” Suttles said. “To date, we’ve struggled to find an alternative either that had less risk to the environment or that was readily available.”

EPA Administrator Lisa Jackson called BP’s response “insufficient.”

Others have blamed the administration for not doing enough, including former Alaska Gov. Sarah Palin, who said Sunday on Fox News that Obama was being lax in his response to the spill.

White House spokesman Robert Gibbs called the criticism ill-informed and suggested Palin needed a blowout preventer, the technical term for the device intended to prevent an oil spill from becoming a full-scale catastrophe. The phrase has entered the political vernacular since the one on the Gulf well failed.

“You’ve got to have a license to drive a car in this country, but regrettably you can get on a TV show and say virtually anything,” Gibbs said.

___

Werner reported from Washington. Associated Press Writers Kevin McGill and Alan Sayre in Louisiana and Matthew Daly in Washington contributed to this report.

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