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To: cirrus who wrote (80516)5/27/2010 12:03:18 AM
From: stockman_scott  Respond to of 89467
 
Obama under fire for spill response

dyn.politico.com

By Glenn Thrush and Josh Gerstein and Manu Raju
Politico
May 26, 2010

President Barack Obama is on the defensive over his presidential multitasking, for refusing to scrub his schedule of events that seem peripheral — even trivial — compared with the unfolding catastrophe in the Gulf of Mexico.

As oozing oil fouls Louisiana’s marshes, Obama has committed to maintaining the semblance of a regular schedule, adhering to his walk-and-chew-gum style of crisis management even as criticism of his administration mounts.

That includes a sit-down to talk hoops with Marv Albert, events touting the stimulus and Duke’s basketball team, a Memorial Day appearance in Illinois and a pair of fundraisers in California that roughly overlapped with a memorial service for 11 workers killed in the April 20 explosion on the Deepwater Horizon platform.

The White House is unapologetic and says the criticism is deeply unfair. Aides say Obama is focused on the oil spill, to the point of being obsessed. Having the president personally involved in every public event on the spill would be distracting and “wouldn’t move the ball forward,” said a White House official.

And despite Obama’s commitment to keep prior scheduling commitments, he’s carved out time for a day trip to the Louisiana Gulf Coast on Friday and a Q & A with the White House press corps to answer questions about the disaster — in addition to a constant stream of briefings on BP’s progress.

That hasn’t kept allies and enemies alike from questioning why Obama isn’t projecting more of a sense of urgency and outrage.

“This is one of the great lost political opportunities I’ve ever seen,” says former Clinton adviser James Carville, a Louisiana native sharply critical of the Obama administration’s response to the spill.

Obama earned high marks — and perhaps the presidency — for keeping his cool during the 2008 financial crisis, but that same determination to maintain an even keel during the Gulf disaster may be backfiring, with even allies saying he’s coming off as cold and uncharacteristically tone-deaf.

“There are times and places where his cool, technocratic mastery is a great blessing. ... But, ideology aside, what do you think [President Ronald] Reagan would have done in this situation? He’d be down there. Look at [Louisiana Gov. Bobby] Jindal. ... It is puzzling, the detachment,” said one veteran Democratic strategist, a frequent defender of Obama.

“I just cringe at the specter of the president doing a political fundraiser in San Francisco during the memorial service instead of going to the memorial service,” the person added. “He was sure there for the coal miners in West Virginia; he spoke at their funerals. That juxtaposition can’t be good.”

Republicans — smarting over criticism that President George W. Bush delegated his response to Hurricane Katrina to incompetent subordinates — are seizing on the fiddle-while-Rome-burns theme with relish.

Sean Hannity, speaking on his Fox News show, encapsulated a new GOP talking point Tuesday night when he said, “Throughout this catastrophe, let’s see, President Obama has found time to play golf, political fundraisers, state dinners.”

The National Republican Senatorial Committee e-mail blasted a press release — “President Delays Gulf Coast Spill Recovery Efforts for San Francisco Fundraiser With Oil Heirs” — on the eve of Obama’s West Coast fundraisers, which netted $1.7 million.

Even without the Gulf crisis, Obama’s plate was overflowing. Obama has spent much of his time focusing on a sequence of major crises: a knife’s edge military confrontation on the Korean peninsula, continuing concerns about the sovereign debt crisis in Europe, a tricky compromise on repeal of the “don’t ask, don’t tell” policy and high-stakes final negotiations over the financial regulatory bill.

Obama spoke repeatedly about the Gulf during his West Coast events Tuesday and Wednesday, which included a tour of a plant that produces components of solar panels — and a pair of fundraisers for the party and Sen. Barbara Boxer (D-Calif.).

“This situation in the Gulf is heartbreaking,” Obama declared at his first fundraisers Tuesday. “And the day that it was reported to me that this riser and the drilling situation had blown, I said to my team, ‘We’ve got to put every bit of energy, time, all the resources we’ve got, to make sure that we deal with this.’ And we’ve now got over a 1,000 people from the federal government deployed down there. We are doing everything we can to contain the damage.”

For the moment, the gripes are coming mostly from the GOP. “The president has remained disengaged,” said California Rep. Darrell Issa, the ranking minority member of the House Oversight Committee and a frequent Obama critic. “For 35 days, he hasn’t used the full force of our government.”

Former Bush press secretary Dana Perino — who has expressed sympathy with Obama’s plight — sees a double standard in the media coverage of Obama and her old boss. Bush was pilloried by Democrats — including then-Sen.Obama — for his handling of Hurricane Katrina.

“I call it the battered press syndrome,” she e-mailed POLITICO. “They keep trying to win his favor, but it’s not returned.”

Environmental organizations and liberal groups, who routinely attacked Bush and Vice President Dick Cheney for their ties to the oil industry, have yet to show similar vigor in criticizing Obama for being too deferential to BP.

At the fundraisers Tuesday night in San Francisco — the birthplace of the environmental movement — Obama faced dozens of protesters, but only a few were there to criticize the government’s response to the spill. A video posted online by the San Francisco Chronicle shows tea party members, a Save-the-Whales contingent, a group promoting solar energy and immigration activists. Just a handful of people from a socialist group, ANSWER, carried a sign saying, “Make Big Oil Pay” and “Seize BP.”

The San Francisco events, where Obama joined Boxer, who chairs the Senate Environment and Public Works Committee, raised $1.7 million for Boxer and the Democratic Senate Campaign Committee.

A spokesman for Greenpeace said he was unaware of any oil-spill-related protest in connection with Obama’s fundraiser but that the group has protested in recent days in New Orleans and on Capitol Hill.

“We’re doing everything we can to draw the public’s attention to the fact that not enough is being done and, in fact, the president’s policies in support of offshore drilling increases the chances of another disaster like this one,” said the spokesman, Daniel Kessler. “We haven’t been shy at Greenpeace about calling out President Obama.”

Democrats, for the most part, have stuck with Obama.

“There’s going to be a concerted effort to [criticize Obama],” said Michigan Sen. Debbie Stabenow. “It’s really not about Bush vs. Obama. To me, it’s about a philosophy that says deregulate, step back and let Wall Street do whatever they want; step back and let the oil companies control everything.”

Boxer on Wednesday defended Obama’s action, noting that his visit to the solar-panel plant highlights the need to move the nation away from fossil fuels — and the risk of such underwater catastrophes.

“They would criticize the president no matter what he did. And I guess the question is, should the president just not go anywhere until this well is capped? I mean, I think he needs to have a schedule,” Boxer said. “I think he’s going there on Friday, and he’ll go there as many times as he feels he should go there because he knows he’s dispatched 1,000 people. And I think he’s doing every single thing that he can.”



To: cirrus who wrote (80516)5/27/2010 1:28:20 AM
From: stockman_scott  Respond to of 89467
 
Judge Refuses to Delay Oil Spill Lawsuit Against BP (Update2)

By Laurel Brubaker Calkins

May 26 (Bloomberg) -- An Alabama federal judge denied BP Plc’s request to stay one of more than 130 lawsuits brought by fishermen, property owners and coastal businesses harmed by the Gulf of Mexico oil spill until a judicial panel decides whether to combine the cases into a single multidistrict proceeding.

In an order handed down late yesterday, Chief U.S. District Judge William H. Steele of Alabama called BP’s request to halt the litigation “premature.”

“There is no reason why this action cannot move forward with preliminary steps” before the judicial panel acts on BP’s request to combine all oil spill litigation into one massive case at a hearing in July, Steele said.

“Entering a stay at this juncture and under these circumstances would not rescue defendants from material hardship or the risk of inconsistent adjudications, after all, they must answer the complaint anyway,” Steele ruled.

BP has filed motions in courts across five Gulf Coast states seeking to stay litigation resulting from the growing oil spill, caused by the explosion and sinking of the Deepwater Horizon off the coast of Louisiana last month. BP, as owner of the offshore lease where the damaged well is located, has primary responsibility for claims from people and businesses harmed by the drifting oil.

Gushing Oil

“Judge Steele apparently didn’t want BP to get a free, three-month delay before it had to answer these complaints,” lawyer George R. Irvine III of Daphne, Alabama, said in a phone interview today. “Judge Steele didn’t believe that it was fair for BP to do nothing while the oil continues to gush.”

Steele ordered BP to answer the Alabama lawsuit, a proposed class action by a seafood processor, by July 2. Once BP responds to the lawsuit and the parties hold a status conference, Irvine said he plans to begin gathering evidence from BP immediately.

“I can start discovery as soon as that conference occurs and we establish a schedule,” Irvine said. “I believe this is the only case so far where BP’s stay has been denied flat out. I suspect there will be others coming along. Hopefully other judges across the Gulf Coast will think this opinion is well- reasoned and follow it.”

Irving said he expects the judge to deny BP’s stay request in the other cases within short order.

Also named as a defendant in most of the oil spill cases are: Transocean Ltd., which owned the rig; Halliburton Energy Services Inc., which provided cementing services; and Cameron International Corp., which supplied blowout prevention equipment.

Neither Scott Dean nor Mark Salt, BP spokesmen, immediately responded to a request for comment on the judge’s order. Mike Geczi, Transocean’s spokesman, declined to comment.

The case is Billy’s Seafood Inc. v. Transocean et al, 1:10- cv-00215, U.S. District Court, Southern District of Alabama.

To contact the reporter on this story: Laurel Brubaker Calkins in Houston at laurel@calkins.us.com.

Last Updated: May 26, 2010 12:30 EDT



To: cirrus who wrote (80516)5/27/2010 1:38:23 AM
From: stockman_scott  Respond to of 89467
 
Count Crimes Committed in Oily Gulf of Mexico:

Commentary by Ann Woolner

May 26 (Bloomberg) -- At least one federal crime had indisputably been committed when oil started spewing into the Gulf of Mexico and approached land. Another criminal act became clear when the first oil-covered sea bird died.

Even if everyone involved in the Deepwater Horizon disaster did precisely what they were supposed to do, if every crew member, each manager and all suppliers followed every regulation diligently, the oil globs reaching shore and the deadly crude covering pelicans signal crimes just as clearly as would a body with a dagger through the heart.

“Someone’s going to be criminally prosecuted for this,” says David M. Uhlmann, who for 17 years worked as a prosecutor for the Justice Department’s environmental crimes section, including seven years as the unit’s chief.

The questions are: who, and for what crimes?

BP Plc tops the list of suspects because the company leased the rig, owns the oil and to some degree oversaw the operation. But Transocean Ltd., which owns the rig and supplied most of the staff, no doubt has its lawyers working defensively right about now. And then there’s Halliburton Co., which cemented the well.

As for laws that were clearly broken, there are two that let prosecutors slam-dunk convictions with no evidence of negligence or intentional wrongdoing. Many a white-collar case has floundered on the problem of proving criminal intent. These environmental laws make that unnecessary.

Environmental Statutes

The 1918 Migratory Bird Treaty Act protects fowl. The Refuse Act, part of the 1899 Rivers and Harbors Act, outlaws industrial discharge in navigable waters.

OK, they are both misdemeanors punishable by minor fines, but stay with me here.

Even a misdemeanor conviction would remove the $75 million cap on damages that the Oil Pollution Act sets. BP says it will pay all legitimate damages from the spill, regardless of the cap, but fisherman still suffering from the Exxon Valdez spill 20 years ago would urge caution in believing such promises.

Bumping it up a notch by showing negligence, prosecutors can win a conviction under the Clean Water Act, and there’s every reason to believe that can be shown here. Negligence means an absence of due care, say in keeping the blowout preventer working to, um, prevent a catastrophic blowout, for example.

All right, a negligence conviction would be a misdemeanor, too, but it carries a fine that could decimate any company charged in this catastrophe: up to twice the damages the spill caused. And an individual charged could spend a year in jail, which would seem a lot for an oil-company manager.

Proving Felonies

To get into felony territory is trickier. For that, prosecutors need to show that companies or people acted “knowingly.”

Surely no one knew they would be wreaking ecological devastation on the Gulf of Mexico, ruining a coastal fishing industry, crippling tourism or trashing beachfront property values when they were operating the Deepwater Horizon, even if they took a shortcut or two.

That kind of knowledge doesn’t have to be proven to make a felony case. A BP subsidiary admitted felonious guilt in a deadly 2005 explosion at a Texas City, Texas, refinery and when another BP operation spilled 200,000 barrels of oil into Prudhoe Bay in Alaska.

Uhlmann, who now teaches law at the University of Michigan, says that if sufficient evidence emerges, the government could win felony convictions under the Clean Water Act by proving those in charge knew the operation had serious problems and continued to run it anyway.

Eyewitness Account

That seems the case laid out in a CBS “60 Minutes” interview with Mike Williams, chief electronics technician on the Deepwater Horizon.

He said that before the explosion, the rig’s blowout preventer coughed up broken pieces of a crucial rubber seal. A supervisor said it was no big deal.

And when a crew member’s error broke part of the blowout device’s emergency backup system, no one much cared about that, either, Williams told “60 Minutes.”

Then, when it came time to close the new well in preparation for pumping, a BP manager demanded the crew use a quicker, riskier way than the standard process the Transocean manager had planned, according to Williams.

It could turn out that Williams’ account is flawed, or that none of those problems led to the explosion, or that BP and Transocean did everything they reasonably could to prevent the 11 deaths and thousands of barrels of still-spewing oil that’s now coating wildlife and washing ashore on beaches and wetlands.

Legal Thresholds

But if someone filed a false report, manipulated a test result or showed any attempt at deceit, that would ratchet up a Clean Water case to a felony. It could also trigger prosecution for fraud, obstructing justice or filing a false statement against the individuals involved, as well as their employer.

In this case prosecutors will be driven to be as aggressive as possible, says Uhlmann, given the gravity of what’s occurred and previous convictions by BP subsidiaries, all of them accompanied by promises to do better.

And yet, even the misdemeanor crimes we know were committed led to a calamitous result. They could also lead to ruinous penalties to those responsible.

(Ann Woolner is a Bloomberg News columnist. The opinions expressed are her own.)

To contact the writer of this column: Ann Woolner in Atlanta at awoolner@bloomberg.net

Last Updated: May 25, 2010 21:00 EDT



To: cirrus who wrote (80516)5/27/2010 7:59:01 AM
From: stockman_scott  Respond to of 89467
 
Obama Outraged Over BP Spill & Federal Oil Regulators (Update1)

By Edwin Chen and Julianna Goldman

May 27 (Bloomberg) -- President Barack Obama’s outrage over the Gulf of Mexico oil spill has reached “the upper scale” and is directed at both BP Plc and federal regulators, senior White House adviser David Axelrod said.

“His anger and frustration about those things, and his anger and frustration about any attempt to obfuscate the amount of damage that’s been done by the company is great,” Axelrod said in an interview yesterday on the eve of the release of a report on the spill by Interior Secretary Ken Salazar.

Obama today will extend to six months a moratorium on deepwater offshore drilling, announce news standards to strengthen oversight of the industry and enhance safety, cancel a lease sale off the coast of Virginia and delay oil exploration off the coast of Alaska, a White House aide said.

Obama is scheduled to make his announcement at the White House at 12:45 p.m. today

The Gulf well, about 40 miles off Louisiana’s coast, began pouring crude after an explosion and fire on the Deepwater Horizon drilling rig. BP, based in London, leased the rig from Geneva-based Transocean Ltd., the largest deepwater driller. BP yesterday began its most ambitious attempt to plug the spill.

Obama, in planned remarks today, will speak about the Salazar report and “lay out some new thoughts on how to proceed on drilling,” White House spokesman Bill Burton said. Tomorrow, the president will visit the gulf region for the second time since the oil rig caught fire.

Salazar told members of the House Natural Resources Committee that his report will “address some of the measures that can be taken to increase safety.”

Other Approaches

BP is pumping mud-like drilling fluid into the well in an effort, dubbed “top kill,” to stop the flow, which has poured millions of gallons of oil into the gulf and soiled at least 70 miles (113 kilometers) of coastline.

“If it’s successful -- and there are no guarantees -- it should greatly reduce or eliminate the flow of oil now streaming into the gulf from the seafloor,” Obama said yesterday during an appearance in Fremont, California. “And if it’s not, there are other approaches that may be viable.”

Lack of Candor

Axelrod said the president’s outrage was “pretty great” when he learned of some of the “shortcomings” at the Minerals Management Service and its “coziness” with an industry it’s supposed to regulate.

The president’s chief political adviser declined to quote Obama’s words, saying: “Knowing that Bloomberg is a family news service, I can’t share with you what he said.”

Axelrod accused the MMS of “appalling” conduct and said the agency itself “needs a top kill of its own.”

Salazar said on May 19 he plans to replace the MMS with three agencies, separating energy development, enforcement and revenue collection. The reorganization will take 30 days to complete, he said.

As for BP, Axelrod said, the company hasn’t been “particularly candid” about the amount of oil that was flowing, and that proved “problematical.”

He said Obama intends to hold BP “fully accountable for this, and fully accountable for the damage that they have done, fully accountable for their role in the accident.”

The spill has cost BP a total of $760 million, or about $22 million a day, the company said May 24. Average daily profit last year was $45 million a day, according to data compiled by Bloomberg News.

BP said in an e-mailed statement yesterday that it has paid more than $36 million in damage claims and will appoint an independent mediator to review and assist claims.

Tom Kenworthy and Brad Johnson, both staff members of the Center for American Progress, a research organization close to the White House, urged Obama to put the federal government in charge of the disaster response.

To contact the reporter on this story: Edwin Chen in Washington at EChen32@bloomberg.net; Julianna Goldman in Washington at jgoldman6@bloomberg.net;

Last Updated: May 27, 2010 07:20 EDT



To: cirrus who wrote (80516)5/27/2010 2:57:23 PM
From: stockman_scott  Respond to of 89467
 
Transocean's Insurers Are Suing BP

dailykos.com



To: cirrus who wrote (80516)5/28/2010 9:45:59 AM
From: stockman_scott  Respond to of 89467
 
BP Pressured Rig Worker to Hurry Before Disaster, Father Says

bloomberg.com

By Joe Carroll and Laurel Brubaker Calkins

May 28 (Bloomberg) -- The highest-ranking crew member to perish aboard the Deepwater Horizon drilling rig warned his family that BP Plc was pressuring him to sacrifice safety for the sake of time and money, his father said.

Jason Anderson, one of 11 rig workers presumed dead after an April 20 explosion and fire sank the Deepwater Horizon and triggered the worst oil spill in U.S. history, told relatives in February and March that BP was urging him to accelerate work on the Macondo well off the Louisiana coast, said his father, Billy Anderson.

On previous wells drilled with the same rig, Jason Anderson, a 35-year-old employee of vessel owner Transocean Ltd., had been able to convince BP representatives to eschew shortcuts that he believed would compromise safety, his father said. But in the eight weeks preceding the disaster, BP stepped up the pressure and overruled safety objections, Billy Anderson, 66, said.

“My Jason told me he had argued BP down a few times on previous wells when they wanted him to speed things up and make changes that were unsafe,” Billy Anderson said yesterday in an interview at his home near Blessing, Texas, about 110 miles southwest of Houston. “But the last two times he was home he said they were putting more and more pressure on him and he was worried.”

The Anderson family has retained Texas attorney Ernest Cannon to represent their interests.

The Explosion

Billy Anderson said surviving crew members have told him that on the night of the disaster, his son was on a part of the rig called the drilling floor, directing eight other Transocean workers in an effort to control a surge of pressure flowing up from the well head about 5,000 feet (1,524 meters) below the sea surface.

All nine were within a few feet of the pipe connecting the rig to the sea floor when it erupted, killing them and two workers employed by M-I Swaco, a joint venture of Smith International Inc. and Schlumberger Ltd., Billy Anderson said.

BP Chief Executive Officer Tony Hayward told the CNN television network on May 26 that “a whole series of failures” preceded the disaster.

“Safe, reliable operations are our number one,” Jon Pack, a spokesman for London-based BP, said today in a telephone interview. “It’s been Tony’s number one since he got here, and we obviously would not comment on things under investigation, under several investigations.”

22.8 Million Gallons

BP, the largest oil producer in the U.S. Gulf of Mexico, yesterday began trying to stanch the flow of millions of gallons of crude by forcing fluids heavier than oil into its damaged well. A government panel estimates the leaks may have spewed 542,000 barrels, or 22.8 million gallons, of crude into the sea, more than twice the amount spilled by the Exxon Valdez tanker in 1989.

Jason Anderson talked of his concerns about BP putting rising pressure on the crew to bypass safety precautions during the seven-day shore visits he was allowed between three-week stints aboard the Deepwater Horizon, said Billy Anderson, who’s been involved in the oilfield-services equipment industry for 35 years.

In a statement, Transocean said its workers have the right to stop work any time they perceive an unsafe situation. “So critical is safety at Transocean that every crewmember has stop work authority,” the company said in the statement. This authority gives them the ability to halt work should an employee suspect an unsafe situation.

Saved Lives

In discussions with some of the 115 rig workers who were rescued after the blast, Billy Anderson said he learned that his son’s efforts during the final minutes to control the pressure surge saved scores of lives.

“My boy was cremated,” Billy Anderson said. “But the actions he and those other 10 heroes took are what made it possible for more than 100 other people to escape with their lives.”

Jason Anderson was a toolpusher, an offshore drilling job akin to foreman on a construction site, which gave him responsibility for overseeing the workers involved in the nuts- and-bolts of drilling and finishing wells.

Anderson had worked aboard the Deepwater Horizon since it was launched from a South Korean shipyard in 2001, his father said. Once the vessel arrived in the Gulf of Mexico, he worked alongside exploration specialists from BP, which had the rig under lease for all of its existence. Prior to that, he was assigned to the Cajun Express, another of Geneva-based Transocean’s most sophisticated rigs.

Father of Two

Shortly before last month’s disaster, Anderson had been promoted to senior toolpusher and was scheduled to transfer to his new post aboard another rig, the Discoverer Spirit, by helicopter at 7 a.m. on April 21. The Deepwater Horizon exploded nine hours before his flight was due to lift off.

Anderson, a father of two and a former high school football middle linebacker, started working aboard offshore rigs in 1995, scraping paint from below the water line, the lowest-ranking job on a rig.

His father thought the grueling labor would convince his son to study harder after two lackluster years of junior college. Instead, Jason Anderson decided he enjoyed being offshore and began working his way up to jobs of increasing responsibility, his father said.

“He loved his work and thought of his crewmates as family,” said Billy Anderson. “He was the kind of son a man wants and loves and hopes his son will be.”

To contact the reporter on this story: Joe Carroll in Blessing, Texas, at jcarroll8@bloomberg.net; Laurel Brubaker Calkins in Houston at laurel@calkins.us.com.

Last Updated: May 27, 2010 21:29 EDT