Summary

House Energy and Commerce Subcommittee holdsa a hearing with Rex Tillerson, Chairman and CEO of ExxonMobil; John Watson, Chairman and CEO of Chevron; James Mulva, Chairman and CEO of ConocoPhillips; Marvin Odum, President of Shell; and Lamar McKay of BP 09:33:02 MARKEY: 57 DAYS AGO IN THE DEAD OF 09:35:30 NIGHT, THE WORST ENVIRONMENTAL NIGHTMARE IN U.S. HISTORY BEGAN. 09:35:35 ON A SCREEN HERE, AND IN HOMES ACROSS THE COUNTRY, WE NOW SEE 09:35:42 THE LIVE VIDEO OF TENS OF THOUSANDS OF BARRELS OF OIL 09:35:48 BILLOWING INTO THE GULF OF MEXICO EVERY DAY. 09:35:52 FOR YEARS THE OIL INDUSTRY SWORE THIS COULD NEVER HAPPEN. 09:35:56 WE WERE TOLD THE TECHNOLOGY HAD ADVANCED, THAT OFFSHORE DRILLING 09:36:01 WAS SAFE. BP SAID THEY DIDN'T THINK THE 09:36:05 RIG WOULD SINK. IT DID. 09:36:07 THEY SAID THEY COULD HANDLE AN EXXON VALDEZ SPILL EVERY DAY. 09:36:14 THEY COULDN'T. BP SAID THE SPILL WAS 1,000 09:36:18 BARRELS PER DAY. IT WASN'T. 09:36:20 AND THEY KNEW IT. NOW THE OTHER COMPANIES HERE 09:36:24 TODAY WILL CONTINUE THE END THAT THIS WAS AN ISOLATED INCIDENT. 09:36:28 THEY WILL SAY A SIMILAR DISASTER COULD NEVER HAPPEN TO THEM. 09:36:34 AND, YET, IT IS THIS KIND OF BLIND FAITH, WHICH IS IRONICALLY 09:36:40 THE NAME OF AN ACTUAL RIG IN THE GULF THAT HAS LED TO THIS KIND 09:36:45 OF DISASTER. IN PREPARATION FOR THIS HEARING, 09:36:48 THE COMMITTEE REVIEWED THE OIL SPILL SAFETY RESPONSE PLANS FOR 09:36:53 ALL OF THE COMPANIES HERE TODAY. WHAT WE FOUND WAS THAT THESE 09:36:59 FIVE COMPANIES HAVE RESPONSE PLANS THAT ARE VIRTUALLY 09:37:04 IDENTICAL. THE PLANS CITE IDENTICAL 09:37:06 RESPONSE CAPABILITIES AND TOUT INEFFECTIVE EQUIPMENT. 09:37:14 IN SOME CASES THEY USE THE EXACT SAME WORD. 09:37:17 WE FOUND ALL OF THESE COMPANIES NOT JUST BP MADE THE EXACT SAME 09:37:24 ASSURANCES. THE COVERS OF THE FIVE RESPONSE 09:37:27 PLANS ARE DIFFERENT COLORS, BUT THE CONTENT IS 90% IDENTICAL. 09:37:34 LIKE BP, THREE OTHER COMPANIES INCLUDE REFERENCES TO PROTECTING 09:37:46 WALRUSSE WHICH HAVE NOT CALLED THE GULF OF MEXICO FOR 3 MILLION 09:37:50 YEARS. TWO OTHERS ARE SUCH DEAD RINGERS 09:37:54 FOR BP THAT THEY LIST THE SAME PHONE NUMBER FOR A LONG DEAD 09:37:58 EXPERT. THE AMERICAN PEOPLE DESERVE OIL 09:38:01 SAFETY PLANS THAT ARE IRON CLAD AND NOT BOILERPLATE. 09:38:05 WE NOW KNOW THE OIL INDUSTRY AND THE GOVERNMENT AGENCY TASKED 09:38:09 REGULATING WITH THEM DETERMINE THAT THERE WAS A ZERO CHANCE 09:38:13 THAT THIS KIND OF UNDER SEA DISASTER COULD EVER HAPPEN. 09:38:17 WHEN YOU BELIEVE THAT THERE IS ZERO CHANCE OF A DISASTER 09:38:22 HAPPENING, YOU DO ZERO DISASTER PLANNING. 09:38:26 AND THE OIL INDUSTRY HAS INVESTED NEARLY ZERO TIME AND 09:38:30 MONEY INTO DEVELOPING SAFETY AND RESPONSE EFFORTS. 09:38:35 THE OIL COMPANIES BEFORE US TODAY AMASSED NEARLY $289 09:38:42 BILLION IN PROFITS OVER THE LAST THREE YEARS. 09:38:48 THEY SPENT $39 BILLION TO EXPLORE FOR NEW OIL AND GAS. 09:38:53 YET, THE AVERAGE INVESTMENT IN RESEARCH AND DEVELOPMENT FOR 09:38:58 SAFETY ACCIDENT PREVENTION AND SPILL RESPONSE WAS A PALTRY $20 09:39:05 MILLION PER YEAR, LESS THAN ONE TENTH OF 1% OF THEIR PROFITS. 09:39:10 THE OIL COMPANIES MAY THINK IT'S FINE TO PRODUCE CARBON COPIES OF 09:39:14 THEIR SAFETY PLANS, BUT THE AMERICAN PEOPLE EXPECT AND 09:39:18 DESERVE MORE. IT IS TIME TO EXPECT MORE FROM 09:39:22 THE OIL INDUSTRY AND THAT NEEDS TO START TODAY. 09:39:28 FIRST, CONGRESS MUST ENSURE THAT THERE IS UNLIMITED LIABILITY FOR 09:39:32 OIL SPILLS BY OIL COMPANIES. WHILE WE TRY TO CAP THIS WELL, 09:39:37 WE MUST LIFT THE CAP ON OIL INDUSTRY LIABILITY. 09:39:43 SECOND, CONGRESS MUST ALSO ENACT WIDE RANGING OF SAFETY REFORMS 09:39:47 FOR OFFSHORE DRILLING. IF OIL COMPANIES ARE GOING TO 09:39:51 PURSUE ULTRADEEP DRILLING, WE MUST ENSURE THAT IT IS 09:39:57 ULTRASAFE, AND THAT COMPANIES CAN RESPOND ULTRAFAST. 09:40:02 THIRD, THE FREE RIDE IS OVER. OIL COMPANIES NEED TO PAY THEIR 09:40:08 FAIR SHARE TO DRILL ON PUBLIC LAND. 09:40:10 RIGHT NOW EVERY SINGLE ONE OF THE COMPANIES HERE TODAY AND 09:40:14 DOZENS OF OTHERS ARE DRILLING FOR FREE IN THE GULF OF MEXICO 09:40:18 ON LEASES THAT WILL COST AMERICAN TAXPAYERS MORE THAN $50 09:40:25 BILLION IN LOST ROYALTIES. AND FOURTH, WE MUST ENSURE THAT 09:40:29 NEW TECHNOLOGIES ARE DEVELOPED FOR CAPPING WELLS, BOOSTING 09:40:34 SAFETY AND CLEANING UP SPILLS. I WILL SOON INTRODUCE THE OIL 09:40:39 SOS ACT TO ASSURE WE HAVE 21st CENTURY TECHNOLOGIES IN PLACE 09:40:44 FOR 21st CENTURY DRILLING RISKS. AND FINALLY, AMERICA MUST MOVE 09:40:48 TO A SAFER, CLEAN ENERGY FUTURE SO THAT WE DON'T HAVE TO RELY AS 09:40:54 MUCH ON OIL TO POWER OUR CARS AND OUR ECONOMY. 09:40:59 THE AMERICAN PEOPLE DESERVE ANSWERS FROM THE OIL INDUSTRY 09:41:02 AND I LOOK FORWARD TO THE TESTIMONY OF OUR WITNESSES. 09:41:06 ILL LIKE NOW TO RECOGNIZE MY DISTINGUISHED COLLEAGUE FROM 09:41:10 MICHIGAN, THE RANKING MEMBER OF THE SUBCOMMITTEE, THE GENTLEMAN, 09:41:15 AGAIN FROM MICHIGAN. THANK YOU, MR. CHAIRMAN. 09:41:18 I THANK YOU FOR CALLING THIS VERY IMPORTANT HEARING. 09:41:22 WHAT HAPPENED ON THE DEEP WATER HORIZON RIG WAS TRULY A NATIONAL 09:41:28 TRAGEDY. THE LOSS OF LIFE WAS 09:41:30 HEARTBREAKING, THE ENVIRONMENTAL AND ECONOMIC DAMAGE THAT WORSENS 09:41:33 BY THE DAY IS GUT WRENCHING. AS I'VE SAID MANY TIMES BEFORE 09:41:38 IT NEED BE MADE CRYSTAL CLEAR TO ALL INVOLVED THAT THE POLLUTER 09:41:43 WILL PAY. THE AMERICAN TAXPAYER SHOULD NOT 09:41:45 AND WILL NOT BE ON THE HOOK FOR THE COST OF THIS ACCIDENT. 09:41:50 BOTH ECONOMIC AND ENVIRONMENTAL. NOR SHOULD CONSUMERS BE PUNISHED 09:41:54 WITH TAX INCREASES PASSED IN THE NAME OF THE BP SPILL. 09:42:02 IT WILL ONLY FURTHER WEAKEN OUR ECONOMY. 09:42:05 WE NOW HAVE THE OPPORTUNITY TO LOOK BP AMERICA IN THE EYE AND 09:42:10 DEMAND THEY FULFILL THEIR RESPONSIBILITY FOR THE DISASTER 09:42:12 IN THE GULF AND AN IMPORTANT STEP IS THE CREATION OF AN 09:42:16 ESCROW ACCOUNT THAT WILL ENSURE AMERICAN TAXPAYERS ARE NOT LEFT 09:42:20 HOLDING THE TAB. IN THE WAKE OF THIS TRAGEDY, WE 09:42:23 MUST WORK TOGETHER TO FIND SOLUTIONS THAT WILL PROTECT 09:42:28 CONSUMERS, TAXPAYERS AND OUR NATIONAL SECURITY. 09:42:31 THE CLEAN UP HAS BEEN TOO SLOW, WAY TOO SLOW AND TOO INDECISIVE. 09:42:37 WE WANT ANSWERS AND WE WANT THEM ALL. 09:42:39 WE HAVE TO WORK TO ASSURE A DISASTER LIKE THIS NEVER HAPPENS 09:42:44 AGAIN. WHEN THAT RIG EXPLODED AND AS 09:42:50 MILLIONS OF GALLON OF OIL LEAKED INTO THE GULF OUR SECURITY 09:42:54 POSTURE HAS WEAKENED. I'M AWARE EACH WITNESS TODAY WAS 09:43:00 GIVEN A LENGTHY LIST OF QUESTIONS TO ANSWER IN ADVANCE. 09:43:03 THEY RELATE TO FRONTAL BOUNDARY AT HAND. 09:43:05 QUESTIONS ABOUT RIG SAFETY, ABOUT WORSE CASE SCENARIOS IF 09:43:09 THERE'S ANOTHER RIG EXPLOSION AND QUESTIONS ABOUT CHEMICAL 09:43:14 DISPERSANTS. LEGITIMATE AND CONSTRUCTIVE 09:43:16 QUESTIONS THAT WILL HELP US FORGE A SOLUTION ORIENTED 09:43:19 POLICY. I AM, HOWEVER, DISHEARTENED TO 09:43:22 LEARN A FEW OF THE QUESTIONS HAVE NOTHING TO DO WITH THE 09:43:27 DISASTER THAT WE'RE TRYING TO SOLVE AND SERVE THE POLITICAL 09:43:32 POINTS THAT WILL RAISE TAXES, ELIMINATE AMERICAN JOBS AND 09:43:35 LEAVE CONSUMERS ALREADY STRUGGLING IN THIS DOWN ECONOMY 09:43:39 WITH HIGH ENERGY COSTS. SOME OF THOSE QUESTIONS ARE HOW 09:43:43 MUCH IS YOUR COMPANY INVESTED IN THE DEPLOYMENT OF RENEWABLE 09:43:49 ALTERNATIVE ENERGY? WHAT STEPS DO YOU BELIEVE THAT 09:43:50 THE U.S. GOVERNMENT AND PRIVATE INDUSTRY SHOULD TAKE TO REDUCE 09:43:55 THE THREAT BY CLIMATE CHANGE. DOES YOUR COMPANY SUPPORT A CAP 09:44:00 ON GREENHOUSE EMISSIONS THAT INCLUDE TRANSPORTATION FUELS. 09:44:03 WOULD YOUR COMPANY BE ABLE TO PASS ANY OF THE COSTS OF 09:44:08 PURCHASING EMISSION ALLOWANCES THROUGH ITS CUSTOMERS. 09:44:11 FRANKLY, I WOULD PREFER TO BRING UP THE CAP AND TRADE BILL ON THE 09:44:15 HOUSE FLOOR BECAUSE I'M CONVINCED THIS YEAR IT WOULD 09:44:18 FAIL RATHER THAN PASS BY THE SEVEN VOTE MARGIN THAT IT DID 09:44:22 LAST SUMMER. BUT THAT'S NOT THE ISSUE AT 09:44:24 HAND. INSTEAD OF TAKING TIME TO TALK 09:44:26 ABOUT CAP AND TAX OR CAP AND TRADE, LET'S FIGURE OUT HOW TO 09:44:31 CAP THE WELL. WE'RE NOT HERE TO DISCUSS 09:44:35 CLIMATE CHANGE BUT RATHER WHAT EACH OF OUR WITNESSES THINK WENT 09:44:39 WRONG ON THE HORIZON RIG AND WHAT POLICY CHANGE COULD BE MADE 09:44:43 TO ENSURE IT NEVER HAPPENS AGAIN. 09:44:46 LEAPT US NOT FORGET WHAT'S ON THE LINE HERE. 09:44:48 JOBS, THE ENVIRONMENT, OUR ECONOMY AND NATIONAL SECURITY. 09:44:53 THREE YEARS AGO WHEN BP WAS CAUGHT INCREASING THE DISCHARGE 09:44:57 INTO LAKE MICHIGAN, I JOINED WITH THE GREAT LAKES CAUCUS AND 09:45:01 OTHER COLLEAGUES ON BOTH SIDES OF THE AISLE, ACROSS THE GREAT 09:45:04 LAKES TO BEAT BACK THE ATTEMPT TO INCREASE POLLUTION IN OUR 09:45:09 LAKE. WE DIDN'T TAKE A PARTISAN 09:45:12 POSTURE, WE WORKED TOGETHER TO SOLVE THE PROBLEM. 09:45:15 WE NEED SIMILAR BIPARTISANSHIP HERE TODAY. 09:45:17 THE GULF OF MEXICO ACCOUNTS FOR ALMOST A THIRD OF U.S. OIL 09:45:21 PRODUCTION. IF WE ELIMINATE THAT SUPPLY AND 09:45:24 OUR DEPENDENCY -- IF WE ELIMINATE THAT SUPPLY, 09:45:28 DEPENDENCY IN FOREIGN OIL WILL, INDEED GO UP. 09:45:32 SAUDI ARABIA WILL BE HAPPY. HUGO CHAVEZ, MAHMOUD 09:45:36 AHMADINEJAD, THEY WILL BE POPPING CHAMPAGNE. 09:45:38 BUT THE AMERICAN CONSUMER WILL BE REMEMBERING THE GOOD OLD DAYS 09:45:41 WHEN GAS WAS ONLY $4 A GALLON. THE TEAM OF ENGINEERS TAPPED BY 09:45:47 SECRETARY SALAZAR TO FIND OUT WHAT WENT WRONG ON THE RIG 09:45:53 RECENTLY I WROTE, WE BELIEVE THE BLOW-OUT WAS BY A COMPLEX CHAIN 09:45:57 OF HUMAN ERRORS COUPLED WITH SEVERAL EQUIPMENT FAILURES AND 09:46:01 WAS PREVENTABLE. THE PETROLEUM INDUSTRY WILL 09:46:04 LEARN FROM THIS. IT CAN AND WILL DO BETTER. 09:46:07 WE SHOULD NOT BE SATISFIED -- WAIT FOR A SECOND. 09:46:16 WE SHOULD NOT BE SATISFIED UNTIL THERE ARE NO DEATHS AND NO 09:46:21 ENVIRONMENTAL IMPACTS OFFSHORE EVER. 09:46:24 HOWEVER, WE MUST UNDERSTAND THAT AS WITH ANY HUMAN ENDEAVOR THERE 09:46:28 WILL ALWAYS BE RISKS, END QUOTE. LET'S LEARN FROM THIS AWFUL 09:46:33 MISTAKE. FIX THE PROBLEM. 09:46:34 CLEAN UP THE GULF. AND MOVE FORWARD TO FIXING OUR 09:46:38 AILING ECONOMY AND CREATE PRIVATE-SECTOR JOBS. 09:46:40 YIELD BACK MY TIME. THANK THE GENTLEMAN. 09:46:43 CHAIR RECOGNIZES THE CHAIRMAN OF THE FULL COMMITTEE, THE 09:46:47 GENTLEMAN FROM CALIFORNIA, MR. WAXMAN. 09:46:50 CHAIRMAN MARKEY, THANK YOU FOR HOLDING THIS HEARING AND 09:46:54 YOUR WORK ON THISH. YOU HAVE BEEN A TRUE CHAMPION 09:46:58 FOR TRANSPARENTSCY AND ACCOUNTABILITY AND YOUR EFFORTS 09:47:02 HAVE KEPT THE CONGRESS AND ADMINISTRATION AND AMERICAN 09:47:04 PEOPLE INFORMED ABOUT ENVIRONMENTAL DISASTER UNFOLDING 09:47:07 IN THE GULF. YESTERDAY, CHAIRMAN STUPAK AND I 09:47:11 RELEASED A LETTER DESCRIBING A SERIES OF QUESTIONABLE DECISIONS 09:47:15 MADE BY BP IN THE DAYS BEFORE THE BLOW-OUT. 09:47:18 TIME AFTER TIME, BP APPEARS TO HAVE TAKEN SHORT CUTS THAT 09:47:23 INCREASE THE RISKS OF CATASTROPHIC BLOW-OUT. 09:47:27 ONE OF THE ESSENTIAL QUESTIONS FOR TODAY'S HEARING IS WHETHER 09:47:31 THE OTHER OIL COMPANIES ARE ANY BETTER PREPARED THAN BP. 09:47:36 LAST WEEK AFTER RECEIVING A REQUEST FROM REPRESENTATIVE 09:47:41 WEHNER, THE COMMITTEE ASKED EACH OF THE FIVE MAJOR OIL COMPANIES 09:47:45 FOR THEIR OIL SPILL RESPONSE PLANS. 09:47:48 ON PAPER THEY ARE VERY IMPRESSIVE. 09:47:52 EACH DOCUMENT HAS MORE THAN 500 PAGES LONG AND IF I MIGHT I'LL 09:47:56 HOLD UP THE DOCUMENT THAT IS THE CONTINGENCY PLAN. 09:48:02 BUT WHAT THEY SHOW IS THAT EXXONMOBIL, CHEVRON, 09:48:07 CONOCOPHILLIPS, SHELL ARE NO BETTER PREPARED TO DEAL WITH THE 09:48:11 MAJOR OIL SPILL THAN BP. THE SAME COMPANY, THE RESPONSE 09:48:17 GROUP, WROTE THE FIVE PLANS AND DESCRIBED THEM AS COOKIE CUTTER 09:48:22 PLANS. MUCH OF THE TEXT IS IDENTICAL. 09:48:24 FOUR OF THE PLANS DISCUSS HOW TO PROTECT WALRUSES BUT THERE ARE 09:48:29 NO WALRUSES IN THE GULF OF MEXICO. 09:48:33 WE ANALYZED TWO KEY PARTS OF THE PLANS. 09:48:35 THE PROVISIONS FOR STOPPING A SUB SEA BLOW-OUT LIKE THE ONE 09:48:41 THAT IS SPEWING OIL ACROSS THE GULF AND THEIR WORST CASE 09:48:45 SCENARIOS. WE FOUND NONE OF THE FIVE OIL 09:48:48 COMPANIES HAS AN ADEQUATE RESPONSE PLAN. 09:48:51 IT'S INSTRUCTIVE TO COMPARE EXXONMOBIL'S PLAN FOR 09:48:55 CONTROLLING THE SUB SEA BLOW-OUT WITH BP'S PLAN. 09:48:59 HERE'S WHAT BP SAYS IN ITS PLAN. IN THE EVENT THE SPILL SOURCE 09:49:04 CANNOT BE CONTROLLED, BY THE FACILITY OPERATOR OR REMOTELY 09:49:09 WITH A SAFETY SYSTEM, BP WILL ACTIVATE THE OIL SPILL RESPONSE 09:49:16 PLAN AND ASSEMBLE A TEAM OF EXPERTS TO RESPOND TO THE 09:49:20 SITUATION. HERE'S WHAT EXXONMOBIL SAYS. 09:49:22 YOU CAN SEE THE TEXT ON THE SCREEN. 09:49:25 IN THE EVENT THE SPILL SOURCE CANNOT BE CONTROLLED BY THE 09:49:30 FACILITY OPERATOR OR RELOTLY WITH A SAFETY SYSTEM, EXXONMOBIL 09:49:34 WILL ACTIVATE THE OIL SPILL RESPONSE AND ASSEMBLE A TEAM OF 09:49:40 TECHNICAL EXPERTS TO RESPOND TO THE SITUATION. 09:49:43 THE PLANS ARE IDENTICAL. AND SO ARE THE PLANS FOR CHEVRON 09:49:48 AND CONOCOPHILLIPS. SHELL DID NOT GIVE US A WELL 09:49:51 CONTROLLED CONTINGENCY PLAN BUT IT SAYS SHELL WOULD USE THE SAME 09:49:56 STRATEGIES OF TOP KILLS AND JUMP SHOTS THAT HAVE ALREADY FAILED. 09:50:02 EACH OF THE FIVE OIL SPILL RESPONSE PLANS ALSO INCLUDE A T 09:50:06 CASE SCENARIO INVOLVING AN OFFSHORE EXPLORATORY WELL. 09:50:12 ON PAPER THESE PLANS LOOK REASSURING. 09:50:15 BP'S PLAN SAYS IT CAN HANDLE A SPILL OF 250,000 BARRELS PER 09:50:21 DAY. BOTH CHEVRON AND SHELL SAY THEY 09:50:23 CAN HANDLE OVER 200,000 BARRELS PER DAY AND EXXON SAYS IT CAN 09:50:28 HANDLE OVER 150,000 BARRELS PER DAY. 09:50:31 THAT IS FAR MORE OIL THAN IS CURRENTLY LEAKING INTO THE GULF 09:50:36 FROM BP'S WELL. BUT WHEN YOU LOOK AT THE 09:50:39 DETAILS, IT BECOMES EVIDENT THESE PLANS ARE JUST PAPER 09:50:45 EXERCISES. BP FAILED MISERABLY WHEN 09:50:48 CONFRONTED WITH A REAL LEAK AND ONE CAN ONLY WONDER WHETHER 09:50:52 EXXONMOBIL AND THE OTHER COMPANIES WOULD DO ANY BETTER. 09:50:56 BP'S PLAN SAYS IT CONTRACTED WITH THE MARINE SPILL RESPONSE 09:51:01 CORPORATION TO PROVIDE EQUIPMENT FOR A SPILL RESPONSE. 09:51:04 ALL THE OTHER COMPANIES RELY ON THE SAME CONTRACTOR. 09:51:09 BP'S PLAN SAYS ANOTHER CONTRACTOR WILL OKAYIZE ITS OIL 09:51:14 SPILL REMOVAL. CHEVRON, SHELL, EXXONMOBIL USE 09:51:19 THE SAME CONTRACTOR. BP'S PLAN RELIES ON 22,000 09:51:25 GALLONS OF DISPERSANT STORED IN KILN, MISSISSIPPI, WELL, SO DO 09:51:30 EXXONMOBIL AND THE OTHER COMPANIES. 09:51:32 I COULD GO ON BUT I THINK YOU CAN GET MY POINT. 09:51:35 THESE ARE COOKIE CUTTER PLANS. EXXONMOBIL, CHEVRON, 09:51:40 CONOCOPHILLIPS AND SHELL ARE AS UNPREPARED AS BP WAS AND THAT'S 09:51:45 A SERIOUS PROBLEM. IN THEIR TESTIMONY AND RESPONSES 09:51:49 TO QUESTIONS, THE COMPANIES SAY THEY ARE DIFFERENT THAN BP. 09:51:53 BUT WHEN YOU EXAMINE THEIR ACTUAL OIL SPILL RESPONSE PLANS 09:51:57 AND COMPARE THEM TO BP, IT'S HARD TO SHARE THEIR CONFIDENCE. 09:52:02 AT THIS HEARING, CONGRESS NEEDS TO PASS -- CONGRESS NEEDS TO 09:52:08 REVIEW THE EVIDENCE AND PASS NEW LAWS THAT PUT TEETH INTO OUR 09:52:11 REGULATORY SYSTEM BUT WE CANNOT STOP THERE. 09:52:14 OUR NATIONAL ENERGY POLICY IS BROKEN. 09:52:17 WE'RE ADDICTED TO OIL, AND THIS ADDICTION IS FOULING OUR 09:52:21 BEACHES, POLLUTING OUR ATMOSPHERE AND UNDERMINING OUR 09:52:24 NATIONAL SECURITY. THANK YOU, MR. CHAIRMAN. 09:52:28 WE THANK THE CHAIRMAN. THE CHAIR RECOGNIZES THE RANKING 09:52:31 MEMBER OF THE FULL COMMITTEE, THE GENTLEMAN FROM TEXAS, 09:52:33 MR. BARTON. THANK YOU, CHAIRMAN MARKEY, 09:52:37 AND I APPRECIATE YOU AND CHAIRMAN WAXMAN HOLDING THIS 09:52:41 HEARING TO BRING OUR MAJOR OIL COMPANY EXECUTIVES BEFORE US AND 09:52:45 IN DOING SO, BEFORE THE AMERICAN PEOPLE. 09:52:47 I HAVE A PREPARED STATEMENT I'LL GIVE TO THE RECORD. 09:52:53 I'VE LISTENED WITH INTEREST TO THE OPENING STATEMENT OF 09:52:58 CHAIRMAN MARKEY AND CHAIRMAN WAXMAN. 09:53:00 I WANT TO SAY IN TERMS OF DOING THE INVESTIGATION, I COMMEND THE 09:53:04 MAJORITY STAFF, ESPECIALLY ON THE OVERSIGHT AND INVESTIGATION 09:53:07 SUBCOMMITTEE THAT MR. STUPAK HOLDS. 09:53:11 WE ARE GETTING THE FACTS ASSEMBLED AND PUTTING THEM OUT 09:53:14 IN AN OPEN AND TRANSPARENT FASHION SO THE AMERICAN PEOPLE 09:53:17 CAN UNDERSTAND TO THE EXTENT IT'S POSSIBLE TO UNDERSTAND 09:53:19 EXACTLY WHAT HAPPENED. IT'S NO QUESTION THAT THE 09:53:25 BRITISH PETROLEUM OIL COMPANY, WHO'S THE OWNER IN CHIEF 09:53:30 OPERATOR OF THE RIG THAT HAD THE ACCIDENT IS RESPONSIBLE FOR THE 09:53:36 ACCIDENT. IT'S ALSO AS MR. WAXMAN HAS 09:53:41 POINTED OUT THE RESPONSIBILITY OF OUR MAJOR OIL COMPANIES TO 09:53:43 HAVE ADEQUATE CONTINGENCY PLANS WHEN THINGS GO WRONG. 09:53:48 SO I'M NOT TRYING TO WHITEWASH THE PRIVATE SECTOR IN TERMS OF 09:53:53 THEIR RESPONSIBILITY FOR CAUSING THIS PROBLEM, BUT I WANT TO 09:53:56 POINT OUT SOMETHING THAT HASN'T YET BEEN POINTED OUT. 09:53:59 THE FIVE PEOPLE MOST CONCERNED ABOUT SOLVING THE PROBLEM ARE 09:54:03 PROBABLY SITTING BEFORE US TODAY. 09:54:06 EXXONMOBIL, CHEVRON, CONOCOPHILLIPS, SHELL OIL AND BP 09:54:11 AMERICA HAVE HUGE INTERESTS IN GETTING IT RIGHT AND PREVENTING 09:54:15 IT FROM EVER BEING WRONG AGAIN. IF YOU ADD THE MARKET CAPS OF 09:54:21 THOSE FIVE COMPANY, THEY WOULD NOT EQUAL THE MARKET CAP OF SOME 09:54:26 OF THE OIL COMPANIES THAT ARE OWNED BY SOVEREIGN NATIONS SUCH 09:54:31 AS SAUDI ARABIA, VENEZUELA, REPUBLIC OF MEXICO, SO I WOULD 09:54:37 STIPULATE, MR. CHAIRMAN, THAT WHILE OUR MAJOR OIL COMPANIES 09:54:42 HAVE CAUSED THIS -- AT LEAST BRITISH PETROLEUM IS THE CAUSE 09:54:46 OF THIS PARTICULAR PROBLEM, I WILL ALSO STIPULATE THAT THE 09:54:50 GENTLEMAN BEFORE US ARE A BIG PART OF THE SOLUTION. 09:54:53 WITH THE PRESIDENT OF THE UNITED STATES HAS GOT A BETTER IDEA OF 09:54:56 HOW TO SOLVE THIS PROBLEM RIGHT NOW, HE CAN PICK UP THE PHONE 09:54:59 AND TELL BP EXACTLY WHAT TO DO. IT IS A FEDERAL ISSUE IN TERMS 09:55:05 OF THE MITIGATION PLAN, IN TERMS OF THE CLEANUP PLAN AND IF 09:55:08 THERE'S ANYBODY FROM PRESIDENT OBAMA ON DOWN WHO REALLY KNOWS 09:55:13 THE SOLUTION, IT CAN STOP THAT OIL FROM SPILLING RIGHT NOW, BY 09:55:19 GOLLY, ALL THEY HAVE TO DO IS PICK UP THE PHONE AND TELL THEM 09:55:22 WHAT TO DO. THE FACT THEY'RE NOT IS SIMPLY 09:55:24 BECAUSE THE LAWS OF NATURE AND THE LAWS OF PHYSICAL SICK DON'T 09:55:27 RESPOND TO 30-SECOND SOUND BITES. 09:55:30 YOU'VE GOT TO KNOW EXACTLY WHAT TO DO, AND YOU'VE GOT TO HAVE 09:55:34 THE INC. NEARING AND TECHNOLOGY AVAILABLE TO DO IT. 09:55:36 AMERICA NEEDS THE ENERGY THAT'S BENEATH THE GULF OF MEXICO AND 09:55:39 IN THE OUTER CONTINENTAL SHELF. 30% OF OUR OIL AND GAS IS COMING 09:55:45 FROM THE OCS RIGHT NOW AND 80% OF THAT IS COMING FROM WHAT ARE 09:55:50 CALLED DEEP RIGS. WE HAVE A DEPLETION RATE OF 09:55:53 EXISTING PRODUCTION IN THIS COUNTRY, MR. CHAIRMAN, OF 30% TO 09:55:57 40%. THAT MEANS OF THE 8 MILLION 09:56:01 BARRELS OF OIL AND GAS WE'RE PRODUCING PER DAY, NEXT YEAR 09:56:04 WE'RE ONLY GOING TO BE ABLE TO PROVIDE 5.5 OR 6 MANAGER. 09:56:08 YOU HAVE TO REPLACE THAT ENERGY, AND SINCE WE HAVE DRILLED 09:56:11 MILLIONS OF WELLS ON SHORE SINCE 1896 OR SINCE 1870s IN 09:56:19 PENNSYLVANIA, THE FACT OF THE MATTER IS IF YOU'RE GOING TO 09:56:21 FIND SIGNIFICANT OIL RESERVES IN THE CONTINENTAL UNITED STATES, 09:56:25 THEY'RE GOING TO BE IN THE OUTER CONTINENTAL SHELF, SO WE NEED 09:56:29 THAT ENERGY. NOW, I AGREE WITH CHAIRMAN 09:56:31 WAXMAN THAT HAVING A 500-PAGE DOCUMENT THAT'S A COOKIE CUTTER 09:56:35 APPROACH TO WHAT TO DO WHEN YOU HAVE A PROBLEM IS NOT AN ANSWER. 09:56:40 IT'S NOT AN ANSWER. YOU CAN'T HAVE A CONTINGENCY 09:56:43 PLAN THAT SAYS CROSS YOUR FINGERS AND HOPE THE BLOW-OUT 09:56:47 PREVENTER WORK AND THAT WAS THE CONTINGENCY PLAN. 09:56:50 WE HAVEN'T HAD A MAJOR ACCIDENT IN THE OCS IN 50 YEARS. 09:56:54 EVERYBODY HAD DECIDED THAT THESE BLOW-OUT PREVENTERS WERE SO GOOD 09:57:02 ALL YOU HAD TO DO IS PUSH THE MAGIC BUTTON AND IT WOULD WORK. 09:57:07 WELL, THEY PUSHED THE MAGIC BUTTON ON THE BP RIG, AND IT 09:57:10 DIDN'T WORK SO CHAIRMAN WAXMAN IS RIGHT, WE NEED MORE THAN A 09:57:15 COOKIE CUTTER CONTINGENCY PLAN. BUT WHERE I DISAGREE OR I THINK 09:57:18 I DISAGREE WITH CHAIRMAN WAXMAN AND CHAIRMAN MARKEY IS THAT THE 09:57:23 GENTLEMEN BEFORE US HAVE THE WHEREWITHAL AND THE EXPERTISE 09:57:27 AND CERTAINLY HAVE THE INCENTIVE TO PUT THAT PLAN TOGETHER. 09:57:30 NOW, I DON'T KNOW WHAT THE ANSWERS ARE. 09:57:33 MAYBE WE NEED A FULL-TIME SAFETY INSPECTOR ON THESE RIGS. 09:57:36 MAYBE WE NEED A REALTIME DATA CENTER SOMEWHERE THAT ALL THE 09:57:42 DRILLING INFORMATION GOES TO A CENTRAL DATA POINT WHERE THERE'S 09:57:45 SOMEBODY IN CHARGE OF SAFETY THAT LOOKS AT IT. 09:57:48 IT DOES APPEAR THAT IF PEOPLE HAD BEEN LOOKING FOR THE PROBLEM 09:57:52 THAT WE NOW KNOW HAPPENED, THE DATA WAS THERE TO TELL THEM WHAT 09:57:55 TO DO. BUT THEY WEREN'T LOOKING FOR 09:57:58 THAT. THIS RIG WAS 40 DAYS BEHIND 09:58:01 SCHEDULE AND MILLIONS OF DOLLARS OVER SCHEDULE AND THERE WAS A 09:58:04 LOT OF PRESSURE TO FINISH THE JOB AND THERE WAS NOBODY ON THAT 09:58:09 RIG WHOSE JOB WAS TO MAKE SURE THAT THEY MADE THE SAFE 09:58:14 DECISION, AND SO WHEN YOU START MAKING DECISION AFTER DECISION 09:58:19 AFTER DECISION THAT IS NOT IN AND OF ITSELF A BAD DECISION BUT 09:58:25 CUMULATIVELY MINIMIZE SAFETY EVENTUALLY YOU REACH A WITT CAL 09:58:30 MASS AND YOU HAVE AN ACCIDENT THAT HAPPENED. 09:58:34 SO OUR JOB, MR. CHAIRMAN, IS THE WATCHDOGS FOR THE AMERICAN 09:58:38 PEOPLE ARE, ONE, GET THE FACTS ON THE TABLE, TWO, LISTEN TO 09:58:42 PEOPLE WHO HAVE POSSIBLE SOLUTIONS, THREE, IF THERE'S A 09:58:46 FEDERAL ISSUE AND A FEDERAL ROLE, LET'S DO IT. 09:58:50 BUT WHEN YOU TAKE A PATIENT TO THE EMERGENCY ROOM, THE SOLUTION 09:58:53 IS NOT NORMALLY TO KILL THE PATIENT. 09:58:57 THE SOLUTION IS TO STABILIZE THE PATIENT, DETERMINE WHAT NEEDS TO 09:59:01 BE DONE TO SAVE THE PATIENT AND THEN IMPLEMENT 10:00:00 10:00:00 BUT, UNFORTUNATELY, THEY APPEAR TO HAVE PLENTY OF COMPANY. 10:00:04 EXXON AND OTHER OIL COMPANIES ARE JUST AS UNPREPARED TO 10:00:06 RESPOND TO A MAJOR OIL SPILL IN THE GULF AS BP. 10:00:11 I'VE BEEN EXAMINING THE OIL SPILL RESPONSE PLAN OF 10:00:15 EXXONMOBIL, THE LARGEST OIL COMPANY IN THE UNITED STATES. 10:00:18 THIS DOCUMENT AS MR. WAXMAN SHOWED US IS OVER 500 PAGES 10:00:22 LONG. IN MANY RESPECTS IT IS VIRTUALLY 10:00:25 INDISTINGUISHABLE FROM BP'S RESPONSE PLAN AND RESPONSE PLANS 10:00:27 OF THE OTHER MAJOR OIL COMPANIES. 10:00:30 AT THIS TIME, MR. CHAIRMAN, I'D ASK UNANIMOUS CONSENT THAT THE 10:00:33 RESPONSE PLANS OF THE MAJOR OIL COMPANIES BE MADE PART OF THE 10:00:36 RECORD. WITHOUT OBJECTION, SO 10:00:38 ORDERED. THANK YOU. 10:00:39 THERE IS ONE MAJOR DIFFERENCE BETWEEN EXXONMOBIL'S PLAN AND 10:00:42 THE OTHER RESPONSE PLAN. THE SECTION DEALING WITH THE 10:00:47 MEDIUM. BP, SHELL, CONOCOPHILLIPS AND 10:00:49 CHEVRON HAVE PLANS WITH SHORT MEDIA RELATION SECTIONS. 10:00:53 EXXONMOBIL HAS AN ENTIRE 0-PAGE APPENDIX DEVOTED TO HOW TO 10:00:58 RESPOND TO THE PRESS. THE MEDIA SECTION IN THE 10:01:01 EXXONMOBIL PLAN DIRECTS PUBLIC AFFAIRS PERSONNEL TO AS YOU CAN 10:01:05 SEE ON DISPLAY MAINTAIN ON CAMERA SKILL PROFICIENCY. 10:01:09 IT ALSO EXPLAINS THAT COMMUNICATIONS WHICH CONVEY CARE 10:01:14 AND CONCERN FOR THE SITUATION AND PROVIDE RELEVANT FACTUAL 10:01:19 INFORMATION ARE AN INTEGRAL PART OF EXXONMOBIL'S RESPONSE. 10:01:23 IT SETS UP A FOUR-TIERED SYSTEM WHO CAN RESPOND TO MEDIA 10:01:26 INQUIRIES. THE HIGHEST LEVEL CATEGORY "D" 10:01:32 DICTATE SPECIAL TREATMENT ABOUT QUESTIONS ABOUT GLOBAL WARMING 10:01:36 AND THE "EXXON VALDEZ" AND CONTAINS 13 PREDRAFTED PRESS 10:01:41 RELEASES FOR ALMOST ANY OCCASION. 10:01:54 THERE IS A FULLY DRAFTED PRESS RELEASE FOR AN ACCIDENT 10:01:59 INVOLVING EXXONMOBIL FACILITY. IF THE INJURY OCCURS OFF-SITE, 10:02:02 THERE IS A SEPARATE PRESS RELEASE FOR THAT. 10:02:04 SIX OF THE STOCKPILED PRESS RELEASES ARE READY TO EXPRESS 10:02:08 THEY DEEPLY REGRET AN OUTCOME WHILE TWO OR MORE PRESS RELEASES 10:02:13 STAND READY TO EXPRESSION THAT EXXONMOBIL IS DEEPLY SADDENED. 10:02:17 THE MEDIA SECTION CONTAINS A TOPIC GUIDE WITH TALKING POINTS 10:02:21 ON OVER 65 ISSUES. AND FIVE DIFFERENT PLACES THE 10:02:24 PLAN DIRECTS THE PUBLIC AFFAIRS AGENTS IS TOY "WE COMPLY WITH 10:02:30 ALL APPLICABLE LAWS AND REGULATIONS AND APPLY REASONABLE 10:02:33 STANDARDS WHERE LAWS AND REGULATIONS DO NOT EXIST." 10:02:36 IF A PUBLIC AFFAIRS OFFICER IS ASKED ABOUT CRIMINAL CHARGES, 10:02:39 THE PLAN INSTRUCTIONS THEM TO SAY "WE BELIEVE THAT THERE ARE 10:02:42 NO GROUNDS FOR SUCH CHARGES. THIS WAS CLEARLY AN ACCIDENT AND 10:02:46 WE ARE WORKING TO RESPOND TO THE IMMEDIATE NEEDS OF THE 10:02:50 INCIDENT." THAT TALKING POINT IS READY TO 10:02:52 GO BEFORE A HYPOTHETICAL INCIDENT EVEN OCCURS, BEFORE 10:02:56 EXXONMOBIL COULD HAVE ANY IDEA OF WHETHER IT WAS ACTUALLY AN 10:02:59 ACCIDENT OR IF THERE ARE ANY GROUNDS FOR CRIMINAL CHARGES. 10:03:02 IN SHORT, EXXONMOBIL HAS METICULOUSLY ANTICIPATED L 10:03:07 VIRTUALLY EVERY CONVERSATION THAT THE COMPANY MIGHT NEED TO 10:03:10 HAVE WITH THE MEDIA IN THE DAYS FOLLOWING AN OIL SPILL IN THE 10:03:12 GULF OF MEXICO. MY PROBLEM IS, THAT EXXONMOBIL 10:03:17 HAS GIVEN FAR LESS ATTENTION TO ACTUALLY CONTROLLING THE SPILL. 10:03:22 WHILE EXXONMOBIL HAS 40 PAGES ON ITS MEDIA RESPONSE STRATEGY, ITS 10:03:26 PLAN FOR RESOURCE PROTECTION IS ONLY 5 PAGES LONG AND ITS PLAN 10:03:30 FOR OIL REMOVAL IS JUST 9 PAGES LONG. 10:03:34 WE'VE ALL SEEN THE HORRIBLE IMAGES OF PELICANS AND OTHER 10:03:39 WILDLIFE COATED IN OIL FROM THE SPILL. 10:03:42 EXXONMOBIL'S PLAN IS MORE WORRIED ABOUT PUBLIC PERCEPTION 10:03:46 THAN WILDLIFE GIVEN THE MEDIA PLAN IS FIVE TIMES LONGER THAN 10:03:49 THE PLAN FOR PROTECTING WILDLIFE AND THE CANNED PREDRAFTED DEEPLY 10:03:54 SADDENED PRESS RELEASE RINGS HOLLOW WITH THE LOSS OF THE 11 10:03:57 PEOPLE WHO DIED ON THE DEEPWATER HORIZON RIG. 10:04:01 EXXONMOBIL'S PLAN IS A PERFECT METAPHOR FOR WHAT'S GOING WRONG 10:04:05 IN THE GULF TODAY. THE OIL COMPANY RESPONSE PLANKS 10:04:07 ARE GREAT FOR PUBLIC RELATIONS. THEY ALLOW THE OIL COMPANY TO 10:04:11 SAY WE HAVE A 500-PAGE PLAN TO SHOWS THEY'RE PREPARED FOR ANY 10:04:17 CONTINGENCY BUT THESE PLANS ARE VIRTUALLY WORTHLESS WHEN A SPILL 10:04:20 ACTUALLY OCCURS AND THAT'S EXACTLY THE KIND OF MISPLACED 10:04:24 PRIORITIES THAT HAS LED TO THIS DISASTER. 10:04:26 I YIELD BACK THE BALANCE OF MY TIME. 10:04:29 WE THANK THE GENTLEMAN. THE CHAIR NOW RECOGNIZES THE 10:04:32 RANKING MEMBER OF THE OVERSIGHT AND INVESTIGATION SUBCOMMITTEE, 10:04:37 THE GENTLEMAN FROM TEXAS, MR. BURGESS. 10:04:39 I THANK THE CHAIRMAN AND I DO HAVE TO WONDER WHAT ANY OF US 10:04:44 EXPECT TO ACHIEVE WITH THIS HEARING TODAY. 10:04:46 I KNOW THAT THE FOLKS AT HOME ARE SAYING AND THINKING THEY 10:04:55 WANT IT TO STOP TODAY BUT IT CONTINUES TO LEAK BUT I DON'T 10:04:58 THINK ANYONE BEHIND THE DAIS WILL TELL US HOW TO TURN THAT 10:05:03 FLOW OFF TODAY. YOU KNOW, THE MAJORITY DID NOT 10:05:05 CALL THIS HEARING TO TALK ABOUT MEANINGFUL SOLUTIONS TO SHUTTING 10:05:10 OFF THAT FLOW IN THE GULF TODAY BECAUSE THIS SITUATION REALLY 10:05:15 PRESENTS ITSELF TOO GREAT AN OPPORTUNITY TO GIVE SOME MEMBERS 10:05:18 OF THIS COMMITTEE THE IMPETUS FOR PASSING EVEN MORE 10:05:23 REGULATIONS. AND LIKELY THERE WILL ALSO BE 10:05:25 THE OPPORTUNITY TO INCREASE ENERGY TAXES THAT AMERICANS WILL 10:05:29 PAY INTO THE FORESEEABLE FUTURE UNDER THE GUISE OF CLEAN ENERGY 10:05:33 OR CLIMATE CHANGE LEGISLATION. THE PRESIDENT'S CHIEF OF STAFF, 10:05:36 RAHM EMANUEL, SPELLED OUT THE DEMOCRATIC STRATEGY FOR NATIONAL 10:05:39 FRG POLICY BEST WHEN HE ANNOUNCED YOU NEVER WANT TO LET 10:05:42 A SERIOUS CRISIS GO TO WASTE AND THIS IS A SERIOUS CRISIS. 10:05:47 BUT IN SOME WAYS, MR. CHAIRMAN, THIS COMMITTEE UNDERMINES ITS 10:05:52 OWN BELIEF, 11 LIVES WERE LOST WHEN WE CAPITALIZE ON A TRAGEDY 10:05:58 TO PUSH FORWARD A POLITICAL AGENDA. 10:06:01 NOW, I HOPE THE MAJORITY MEMBERS PROVE ME WRONG AND I HOPE THAT 10:06:05 DURING THIS HEARING THE MEMBERS OF THIS COMMITTEE WILL HAVE A 10:06:08 LASERLIKE FOCUS ON TRYING TO DISCERN OW WE STOP THIS LEAK. 10:06:11 BECAUSE THAT'S REALLY ALL THAT MATTERS RIGHT NOW. 10:06:14 THAT'S ALL THAT MATTERS TO THE FISHERMEN, TO THE SHRIMPERS AND 10:06:18 INDIVIDUALS WHOSE FAMILIES AND LIVELIHOODS HAVE BEEN PUT ON OIL 10:06:21 WHILE THE WELL CONTINUES TO SPILL INTO THE GULF OF MEXICO, 10:06:24 NOT HOW MUCH WE SPEND IN THE FUTURE ON SOLAR AND WIND 10:06:27 TECHNOLOGY, BOTH OF WHICH I SUPPORT, NOT HOW MUCH WE INVEST 10:06:30 IN NUCLEAR TECHNOLOGY AS CLEAN AS THAT MAY BE AND CERTAINLY HOW 10:06:35 MUCH THIS CONGRESS INTENDS TO CRIPPLE THE AMERICAN ECONOMY 10:06:38 EVEN FURTHER THAN IT ALREADY HAS WITH JOB-KILLING LEGISLATION. 10:06:42 WE'VE HAD THOSE DEBATES. WE'RE GOING TO HAVE THOSE 10:06:45 DEBATES IN THE FUTURE, BUT TODAY, TODAY LET'S KEEP THE 10:06:48 FOCUS WHERE IT BELONGS, AND IT'S PRETTY SIMPLE. 10:06:51 PLUG THE WELL, STOP THE SPILL, CLEAN THE GULF. 10:06:56 SO, MR. CHAIRMAN, I'M GOING TO RESPECTFULLY REQUEST, I KNOW YOU 10:07:00 SUBMITTED A LIST OF QUESTIONS THAT YOU WANT THE WITNESSES TO 10:07:03 ANSWER. I'M GOING TO ASK THEM TO INCLUDE 10:07:05 IN THEIR OPENING REMARKS HOW -- WHAT IDEAS THEY HAVE THAT WILL 10:07:09 STOP THE LEAK BECAUSE THAT'S REALLY THE QUESTION WE WANT 10:07:11 ANSWERED TODAY. IF THIS HEARING IS NOT ABOUT 10:07:14 STOPPING THE LEAK THEN WHY ARE WE HERE? 10:07:17 IN THE ALTERNATIVE IF THE WITNESSES TODAY REALLY DON'T 10:07:20 HAVE AN ANSWER TO THAT QUESTION, THEN RESPECTFULLY ONE MIGHT 10:07:22 SUGGEST THAT THIS COMMITTEE POSTPONE THE HEARING UNTIL WE 10:07:25 HAVE THE WITNESSES IN FRONT OF US WHO CAN ANSWER THAT QUESTION. 10:07:29 FINALLY, I BELIEVE THE MAJORITY IS LOOKING AT CRAFTING 10:07:32 LEGISLATION IN RESPONSE TO THE SPILL AND I'M CONCERNED THAT 10:07:34 THIS TRAGEDY WILL LEAVE CONGRESS TO DO WHAT IT SO OFTEN DOES AND 10:07:39 RUSH INTO WRITING LEGISLATION AND WITH REALLY NO THOUGHT TO 10:07:43 WHAT THE CONSEQUENCES DOWN THE ROAD WILL BE. 10:07:47 A WEEK AGO THE COMMITTEE ON OVERSIGHT AND INVESTIGATIONS HAD 10:07:51 A SUBCOMMITTEE FIELD HEARING IN LOUISIANA. 10:07:53 AND WE HEARD TESTIMONY AND IT WAS PRETTY TOUGH TESTIMONY FROM 10:07:57 TWO OF THE WIDOWS OF -- TWO WOMEN WHO HAD LOST HUSBANDS ON 10:08:02 THE DEEPWATER HORIZON. BOTH WIDOWS STATED UNEQUIVOCALLY 10:08:07 THEY BELIEVE THE CURRENT REGULATORY REQUIREMENTS FOR 10:08:09 OFFSHORE DRILLING ARE MORE THAN SUFFICIENT TO KEEP THE MEN AND 10:08:12 WOMEN WORKING ON THOSE OFFSHORE RIGS SAFE. 10:08:15 THE QUESTION THEN BECOMES IN WHETHER THE REGULATIONS ARE 10:08:19 BEING PROPERLY ENFORCED. MRS. NATALIE RASHTO TOLD OUR 10:08:23 COMMITTEE "AFTER ALL OF THE SAFETY SCHOOLS, MEETINGS, FIRE 10:08:27 DRILLS AND SAFETY REGULATIONS, I JUST KNEW HE WAS SAFE. 10:08:32 WE NEED TO FOCUS ON MAKING SAFETY THE MOST IMPORTANT 10:08:37 PRIORITY, TO THE TO FOCUS ON MAKING MORE SAFETY REGULATIONS, 10:08:40 BUT ON WAYS TO EFFECTIVELY IMPLEMENT AND USE THE ONES 10:08:43 ALREADY IN PLACE." MISS COURTNEY KEMP FOLLOWED WITH 10:08:50 HER STATEMENT, "I'M NOT HERE TODAY TO SUGGEST THAT CONGRESS 10:08:54 IMPLEMENT MORE SAFETY REGULATIONS, BUT RATHER TO 10:08:57 ENCOURAGE YOU TO HOLD COMPANIES ACCOUNTABLE FOR SAFETY 10:09:01 REGULATIONS THAT ARE ALREADY IN PLACE AND MERELY NEGLECTED." 10:09:07 AND MISS KEMP WENT ON TO SAY OFFICE ACCOUNTS FOR 75% TO 80% 10:09:11 OF ALL OF THE JOBS IN HER LITTLE TOWN IN LOUISIANA. 10:09:15 SHE SAID THAT LESS OFFSHORE DRILLING WOULD DEVASTATE THE 10:09:18 LOCAL ECONOMIES OF NOT ONLY COASTAL LOUISIANA BUT ALSO THE 10:09:22 ECONOMIES OF OTHER GULF COAST COMMUNITIES WHO RELY ON OFFSHORE 10:09:26 DRILLING AND OIL RIG JOBS. EVERY JOB ON THE RIG IS TON FOR 10:09:31 FOUR TO FIVE JOBS ONSHORE. WHEN ALL OF THIS IS SAID AND 10:09:34 DONE WE NEED TO FIND OUT WHY THE AGENCY, WHY OUR FEDERAL AGENCIES 10:09:39 CHARGED WITH ENFORCING SAFETY REGULATIONS APPEARED TO FEEL AS 10:09:43 IF THAT JOB WAS UNIMPORTANT. WE NEED TO FIND OUT WHY THEY 10:09:48 WERE ASLEEP AT THE SWITCH AND CERTAINLY WE NEED TO HOLD ANY 10:09:52 PARTY ACCOUNTABLE AT THE FEDERAL LEVEL THAT SKIRTED SAFETY 10:09:56 MEASURES. BUT FIRST WE MUST STOP THE LEAK. 10:10:00 MR. CHAIRMAN, I'LL YIELD BACK THE BALANCE OF MY TIME. 10:10:02 WE THANK THE CHAIRMAN. THE CHAIR RECOGNIZES THE 10:10:05 CHAIRMAN EMERITUS OF THE COMMITTEE, THE GENTLEMAN FROM 10:10:09 MICHIGAN, MR. DINGELL. THANK YOU FOR HOLDING THIS 10:10:16 HEARING. I HAVE A SPLENDID STATEMENT 10:10:18 WHICH I'M SURE EVERYONE WILL ENJOY READING AND IN ORDER TO 10:10:22 SAVE THE TIME OF THE COMMITTEE, I ASK UNANIMOUS CONSENT TO 10:10:27 INSERT IT INTO THE RECORD. WITHOUT OBJECTION, SO 10:10:29 ORDERED. ALL RIGHT. 10:10:39 THE GENTLEMAN'S TIME IS EXPIRED. THE CARE RECOGNIZES THE 10:10:43 GENTLEMAN FROM PENNSYLVANIA, MR. DOYLE. 10:10:44 MR. CHAIRMAN, THANK YOU FOR CONVENING THIS HEARING TODAY TO 10:10:47 EXAMINE THE IMPACTS OF OUR NATION'S DEPENDENCE ON OIL AND 10:10:51 THE SAFETY OF DRILLING OPERATIONS. 10:10:53 WE'RE 57 DAYS INTO THIS ENVIRONMENTAL AND ECONOMIC 10:10:57 TRAGEDY AND THE RESPONSE EFFORT IS ONGOING. 10:10:59 WE'VE LEARNED THAT THIS GULF OIL SPILL IS, IN FACT, THE LARGEST 10:11:03 IN U.S. HISTORY, NEW ESTIMATES SHOW THAT UNLIKE BP'S PREVIOUS 10:11:07 CLAIM OF 5,000 BARRELS LEAKING INTO THE GULF EACH DAY, IT'S 10:11:11 MORE LIKELY ABOUT 40,000 BARELIES ARE LEAKING INTO THE 10:11:14 GULF EACH DAY, BUT NO ONE REALLY KNOWS. 10:11:17 AS SUCH, PRESIDENT OBAMA HAS ISSUED A MORATORIUM ON ALL 33 OF 10:11:21 THE DEEPWATER DRILLING RIGS IN THE GULF OF MEXICO FOR SIX 10:11:25 MONTHS OR UNTIL THE COMPLETION OF THE PRESIDENTIAL COMMISSION 10:11:29 INVESTIGATING THE SPILL. THE NATIONAL OCEANIC AND 10:11:33 ATMOSPHERIC ADMINISTRATION HAS TOLD US ABOUT THE INABILITY OF 10:11:35 THE ADMINISTRATION TO HANDLE AN ADDITIONAL CONCURRENT OIL SPILL 10:11:38 AT THIS TIME AND AS HURRICANE SEASON BEGINS WITH CONDITIONS 10:11:43 RIFE WITH POTENTIAL FOR DISASTROUS STORMS I BELIEVE THE 10:11:47 ADMINISTRATION IS TAKING THE PROPER STEPS TO AVOID AN EVEN 10:11:49 MORE CATASTROPHIC EVENT. IN FACT, RECENT EVENTS ALL OVER 10:11:54 THE COUNTRY MERIT THE NEED FOR A SERIOUS REVIEW OF SAFETY 10:11:57 PRACTICES IN THE ENTIRE OIL AND GAS INDUSTRY. 10:12:00 JUST THIS WEEKEND, CHEVRON SPILLED AS MUCH AS 500 BARRELS 10:12:04 OF OIL INTO A STREAM IN UTAH AND THEN THE LAST FEW WEEKS, THE 10:12:10 MARSELLUS SHELL SAW TWO DIFFERENT BLOW-OUTS OF NATURAL 10:12:12 GAS WELLS ONE IN WEST VIRGINIA AND ONE IN MY HOME STATE OF 10:12:15 PENNSYLVANIA. IN THE BLOW-OUT IN PENNSYLVANIA, 10:12:18 THE BLOW-OUT PREVENTER FAILED ALLOWING NATURAL GAS AND 10:12:24 FRACKING FLUID TO GUSH FOR 16 HOURS WHILE THE CREW WITH THE 10:12:27 SKILLS TO CAP IT HAD TO BE KNOWN IN FROM TEXAS. 10:12:30 ONCE THEY ARRIVED IT ONLY TOOK THEM AN HOUR TO CAP THE WELL. 10:12:33 IN WEST VIRGINIA, THE GAS EXPLOSION CAUSED SEVEN WORKERS 10:12:36 TO BE INJURED AND FLAMES BURNED FOR DAYS BEFORE IT WAS BROUGHT 10:12:39 UNDER CONTROL. OUR GROWING ENERGY DEMANDS 10:12:43 REQUIRE THAT WE WILL CONTINUE TO USE NATURAL RESOURCES UNDER OUR 10:12:46 LAND AND SEA. BUT THERE IS SIMPLY NO REASON WE 10:12:49 SHOULD CONTINUE TO EXTRACT OUR NATURAL RESOURCES IN A 10:12:55 HEDGEMONIC AND VORACIOUS STYLE. THE OIL RESERVOIRS AREN'T GOING 10:12:59 ANYWHERE. THE NATURAL GAS IN THE MARSELLUS 10:13:02 SHELF ISN'T GOING ANYWHERE. I THINK IT'S TIME WE TAKE A STEP 10:13:06 BACK TO LEARN HOW TO DO IT BETTER AND SAFER AND FOR 10:13:10 SUFFICIENTLY. WITH THAT I YIELD BACK MY TIME. 10:13:12 THE CHAIR RECOGNIZES THE GENTLEMAN FROM ILLINOIS, 10:13:19 MR. SHIMKUS. WILL WE GET THE ADDITIONAL 10:13:23 MINUTES FOR QUESTIONS IF WE WAIVE OUR OPENING STATEMENT. 10:13:25 THAT IS CORRECT. I WAIVE MY OPENING STATEMENT. 10:13:29 THE CHAIR RECOGNIZES MR. SHADDOCK. 10:13:35 I SIMILARLY WILL WAIVE MY OPENING STATEMENT. 10:13:38 THE GENTLEMAN WAIVES HIS STATEMENT. 10:13:41 WE RECOGNIZE THE GENTLEMAN FROM MISSOURI, MR. WLUNTS. 10:13:46 WE RECOGNIZE MR. SULLIVAN. I WAIVE MY OPENING STATEMENT 10:13:50 TOO. THE CHAIR RECOGNIZES THE 10:13:52 GENTLEMAN FROM ALABAMA, MR. GRIFFITH. 10:13:55 I'D LIKE TO THANK THE CHAIRMAN AND RANKING MEMBER FOR 10:13:58 CALLING THIS IMPORTANT HEARING TODAY AND THE WITNESSES FOR 10:14:00 TAKING TIME TO COME BEFORE OUR SUBCOMMITTEE TO DISCUSS DRILLING 10:14:04 IN OUR CURRENT AND FUTURE ENERGY PORTFOLIO. 10:14:07 OUR NUMBER ONE PRIORITY MUST BE STOPPING THE FLOW OF OIL. 10:14:10 THAT'S CERTAINLY OBVIOUS. IT'S THE JOB OF THIS CONGRESS TO 10:14:12 DO WHATEVER WE CAN TO AID THE UNIFIED COMMAND IN REACHING THIS 10:14:16 GOAL. THIS IS A TIME OF ENGINEERING 10:14:18 AND ACTION. IT'S NOT A TIME TO HASTILY PUT 10:14:21 TOGETHER KNEE-JERK ENERGY POLICIES THAT WILL JEOPARDIZE 10:14:24 OUR ENERGY AND ECONOMIC SECURITY IN THE FUTURE. 10:14:26 IT IS IMPERATIVE THAT THIS COMMITTEE REMEMBER THAT THE 10:14:29 UNITED STATES IS PART OF THE GLOBAL ENERGY ECONOMY AND, 10:14:32 THEREFORE, ALL POLICIES DISCUSSED MUST TAKE INTO 10:14:35 CONSIDERATION THAT WE ARE ONLY 4% OF THE WORLD'S POPULATION. 10:14:40 IF WE ENACT POLICIES THAT DRIVE DRILLING OUT OF U.S. WATERS 10:14:43 THESE COMPANIES WILL NOT CEASE TO DRILL. 10:14:45 BUT WE WILL CEASE TO BE ABLE TO ENSURE THAT OIL AND GAS 10:14:48 PRODUCTION IS DONE IN A SAFE AND IN AN ENVIRONMENTALLY FRIENDLY 10:14:52 MANNER. AS WE AWAIT THE OUTCOME OF THE 10:14:54 MANY INVESTIGATIONS TAKING PLACE, IT IS VITAL WE LEARN 10:14:58 LESSONS FROM THIS INCIDENT SO THAT WE CAN KEEP OUR WORKERS AND 10:15:01 ENVIRONMENT SAFE WHILE CONTINUING TO PRODUCE OUR 10:15:04 VALUABLE OIL AND GAS RESOURCES. THE MORATORIUM PUT IN PLACE BY 10:15:09 THIS ADMINISTRATION DOES NOT REFLECT THE PRESIDENT'S PREVIEW 10:15:13 AND THIS KNEE-JERK REACTION TO CREATE A MORATORIUM IS SIMPLY A 10:15:17 POLITICAL EXPRESSION EMBRYONIC IN NATURE WHICH HAS NO PLACE IN 10:15:21 A SITUATION THIS SERIOUS. THERE'S STILL MANY QUESTIONS TO 10:15:25 BE ANSWERED ABOUT WHAT HAPPENED ON DEEPWATER HORIZON. 10:15:28 HOWEVER, I THINK WE MUST ALSO QUESTION THE FEDERAL RESPONSE. 10:15:31 GOVERNMENT CANNOT FACILITATE A QUICK, EFFECTIVE RESPONSE AND 10:15:35 THIS EVENT HAS BEEN YET ANOTHER EXAMPLE OF THAT. 10:15:38 TO ECHO SOME OF MY COLLEAGUES, I THINK WE MUST TAKE A LONG, HARD 10:15:42 LOOK AT THE FEDERAL RESPONSE WHILE ALSO LOOKING AT THE 10:15:45 RESPONSE OF BP. THIS DISJOINTED EFFORT HAS NOT 10:15:50 AIDED IN HELPING TO CONTAIN AND END THE SPILL. 10:15:54 THANK YOU. THANK YOU FOR COMING TODAY AND I 10:15:57 LOOK FORWARD TO YOUR TESTIMONY. I YIELD BACK, MR. CHAIRMAN. 10:16:00 GREAT. THE GENTLEMAN'S TIME IS EXPIRED. 10:16:03 THE CHAIR RECOGNIZES THE GENTLEMAN FROM WASHINGTON STATE. 10:16:09 THANK YOU, MR. CHAIR. TODAY'S HEARING IS ENTICELED 10:16:13 DRILLING DOWN ON AMERICA'S DRILLING FUTURE AND SAFETY AND 10:16:16 SECURITY AND WE HAVE THE FIVE LEADERS OF THIS INDUSTRY AND I'M 10:16:20 INTERESTED IN WHAT THEY'RE SAYING IN THREE RESPECTS. 10:16:22 ONE I THINK WE NEED TO ASK IS THE INDUSTRY REALLY SHOWN 10:16:26 ACCOUNTABILITY TO MAKE SURE THAT THE LEADERS ARE ACCOUNTABLE FOR 10:16:30 SAFETY? SO I WILL BE INTERESTED IN 10:16:32 FINDING OUT HOW MANY PEOPLE AT BRITISH PETROLEUM HAVE LOST 10:16:35 THEIR JOBS TO DATE AS A RESULT OF THE MOST HORRIFIC T 10:16:39 ENVIRONMENTAL CATASTROPHE IN AMERICAN HISTORY. 10:16:41 I'LL BE INTERESTED IN THAT NUMBER. 10:16:42 NUMBER TWO, I WILL BE INTERESTED IN THE NUMBERS FROM THE LEADERS 10:16:44 OF THE INDUSTRY WHAT THEY ARE INVESTING IN AN EFFORT TO 10:16:49 DEVELOP TECHNOLOGIES THAT CAN REDUCE THE RISK OF OFFSHORE 10:16:52 DRILLING. THE NUMBERS WE HAVE SEEN IN OUR 10:16:54 QUESTIONS TO THE WITNESSES SO FAR ARE REALLY QUITE ASTOUNDING 10:16:59 IN HOW SMALL THEY ARE. THEY ALL ARE LESS THAN 0.1% OF 10:17:04 THEIR PROFITS HAVE BEEN INVESTED IN CLEANER TECHNOLOGY TO TRY 10:17:09 THOUGH REDUCE THE RISK OF THIS TYPE OF DISASTER. 10:17:12 THAT'S LESS THAN 0.01% OF THEIR GROSS REVENUES. 10:17:16 IT'S STUNNING TO ME IF THAT IS THE FACTS BUT WOULD LIKE TO ASK 10:17:19 THE LEADERS IF THAT'S THE CASE WHY THEY HAVE EXPOSED THIS 10:17:23 COUNTRY TO THIS TYPE OF RISK WITH SUCH REDUCED INVESTMENT. 10:17:26 AND, THIRD, IT IS APPROPRIATE TO ASK ABOUT THE INVESTMENT OF THE 10:17:29 INDUSTRY IN CLEAN ENERGY. IN THE REASON, IN ALL OF THE 10:17:34 LEADERS TODAY WILL ADMIT THIS, EVERY SINGLE OIL WELL WE HAVE 10:17:38 EVER DRILLED IS AN INVISIBLE OIL SPILL. 10:17:42 BECAUSE EVERY SINGLE WELL WE DRILL RESULTS IN PUTTING CARBON 10:17:46 DIOXIDE IN THE AIR WHICH GOES INTO THE ATMOSPHERE WHICH GOES 10:17:49 INTO SOLUTION IN THE OCEANS AND HAVE MADE THE OCEANS 30% MORE 10:17:52 ACIDIC THAN THEY ARE TODAY. THEY WILL BE SO ACIDIC BY THE 10:17:55 TIME MY GRANDCHILD LEAVES THE PLANET WE WON'T HAVE CORAL REEFS 10:18:00 ANYWHERE ON THE PLANET. EVERY SINGLE OIL WELL IS AN OIL 10:18:04 SPILL SO WE WILL BE INTERESTED IN KNOWING WHAT THESE LEADERS 10:18:06 ARE BRINGING TO THE TABLE IN AN EFFORT TO REDUCE OUR DEPENDENCE 10:18:09 ON FOSSIL FUELS IN AN EFFORT TO FIND CLEAN ENERGY AND PREVENT 10:18:13 THIS TYPE OF ENVIRONMENTAL DISASTER. 10:18:15 UNFORTUNATELY, IT WON'T BE THE NUMBERS WE'RE LOOKING FOR, BUT 10:18:17 HOPEFULLY WE'LL INSPIRE SOME CHANGES. 10:18:18 THANK YOU. GREAT, GENTLEMAN'S TIME HAS 10:18:22 EXPIRED. THE CHAIR RECOGNIZES THE 10:18:24 GENTLEMAN FROM KENTUCKY, MR. WHITFIELD. 10:18:27 MR. CHAIRMAN, I WILL WAIVE MY OPENING STATEMENT. 10:18:30 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. HALL. 10:18:35 MR. CHAIRMAN, I CAN LOOK BACK A LOT BETTER THAN I CAN LOOK 10:18:40 FORWARD AND WHEN I LOOK BACK, I LOOKED AT TWO ENTITIES THAT 10:18:43 OUGHT TO BE LOOKED TO THE -- THERE HAVE BEEN SUGGESTIONS THAT 10:18:46 THE FEDERAL GOVERNMENT OUGHT TO PAY A MORE PROMINENT ROLE IN 10:18:49 DISASTERS SUCH AS TAKING OVER THE PROCESS OF CAPPING THE WELL. 10:18:53 WELL, THERE'S TWO THINGS YOU'D LOOK AT THERE AND ONE IS THE 10:18:57 FINANCIAL STATEMENTS OF THE TWO ENTITIES, THE UNITED STATES OF 10:19:00 AMERICA OR BRITISH PETROLEUM AND I FIND BRITISH PETROLEUM IN A 10:19:03 LOT BETTER SHAPE THAN THE UNITED STATES OF AMERICA. 10:19:06 IT'S THEIRS -- I THINK IT INITIALLY WE SHOULD HAVE TURNED 10:19:10 IT OVER TO BRITISH -- TO CAP THEIR WELL AND AFTER THEY CAPPED 10:19:14 THEIR WELL WE'LL TELL THEM HOW MUCH THEY OWE EVERYBODY ELSE AND 10:19:18 I DON'T THINK THIS PRESIDENT KNOWS ANY MORE ABOUT CAPPING A 10:19:21 WELL OR GOING OUT AND COUNTING THOSE BIRDS OR PICKING UP LITTLE 10:19:26 PARTS OF THE WASTE THAN HE KNEW ABOUT THE OLYMPICS AND I RESENT 10:19:31 THE FACT HE'S TRYING TO BLAME SOME OF THIS ON BUSH WHEN BUSH 10:19:34 ON 9/11 I DON'T RECOLLECT HIM EVER ACCUSING CLINTON. 10:19:37 I YIELD BACK MY TIME. THE GENTLEMAN'S TIME HAS 10:19:40 EXPIRED. WE RECOGNIZE THE GENTLE LADY 10:19:45 FROM CALIFORNIA, MISS MATSUI. THANKS FOR CALLING TODAY'S 10:19:48 HEARING. I'D ALSO LIKE TO THANK THE 10:19:53 WITNESSES. THE FAMILIES OF THOSE WHO LOST 10:19:54 THEIR LIVES OR HAD THEIR LIVELIHOODS SEVERELY IMPACTED BY 10:19:58 THE DISASTER OF UNPRECEDENTED PROPORTIONS DESERVE OUR SUPPORT. 10:20:03 NOW AS WE CONTINUE TO SEEK ANSWERS FROM BP AND OTHERS ABOUT 10:20:05 THE CAUSE OF THE ACCIDENT, WE MUST HOLD THOSE RESPONSIBLE 10:20:10 ACCOUNTABLE. THE FIRST PRIORITY OF BP MUST BE 10:20:12 TO STOP THE LEAK FROM CONTINUING TO SPREAD AND TO ENSURE THE 10:20:16 CLEANUP EFFORTS ARE CARRIED OUT TO PROTECT OUR COASTAL 10:20:20 COMMUNITIES AND THE FAMILIES WHOSE LIVELIHOODS DEPEND ON IT 10:20:24 AND IT IS INCUMBENT ON ALL OF US TO MAKE CERTAIN THIS NEVER 10:20:28 HAPPENS AGAIN. THE UNFORTUNATE PART IS WE HAVE 10:20:33 BEEN HERE BEFORE. I REMEMBER MORE THAN 40 YEARS 10:20:37 AGO WHEN UNION OIL'S PLATFORM "A" EXPLODED OFF THE COAST OF MY 10:20:41 HOME STATE. MY CONCERN IS THAT TODAY COULD 10:20:44 BE LIKE 1969 ALL OVER AGAIN. AND THAT WE ARE SETTING 10:20:48 OURSELVES UP FOR ANOTHER FOUR DECADES OF MORE OF THE SAME. 10:20:52 SO THE QUESTION I HAVE TODAY IS, WHAT HAS CHANGED? 10:20:56 WHAT CAN THE OIL COMPANIES TELL US TODAY TO ASSURE US THAT THIS 10:21:00 STORY IS NOT SIMPLY REPEATING ITSELF? 10:21:03 BECAUSE WHAT THE GULF REGION AND THE AMERICAN PEOPLE DO NOT WANT 10:21:07 TO HEAR NOW ARE THE SAME EXCUSES THAT WERE EMPLOYED DECADES AGO 10:21:13 ABOUT OIL BEING OUR LARGEST AND MOST RELIABLE ENERGY OPTION. 10:21:17 IN FACT, THE BP OIL SPILL U 10:21:24 UNDERSCORES THE NEED TO LOOK FOR CLEANER ALTERNATIVES THAT WILL 10:21:26 SAVE OUR ENVIRONMENT FROM HARM. IF WE HAVE LEARNED ANYTHING FROM 10:21:30 THE DISASTER, IT IS THAT WE MUST CONTINUE TO EXPLORE CLEAN TECH 10:21:35 ALTERNATIVES TO BIG OIL. TODAY'S HEARING IS A STEP IN 10:21:38 THAT DIRECTION. THANK YOU, MR. CHAIRMAN. 10:21:40 AND I YIELD BACK THE BALANCE OF MY TIME. 10:21:42 GREAT. GENTLE LADY'S TIME HAS EXPIRED. 10:21:46 WE RECOGNIZE THE GENTLE LADY FROM CALIFORNIA, MISS BONO MACK. 10:21:50 THANK YOU, MR. CHAIRMAN. I THANK YOU FOR YIELDING ME THIS 10:21:52 TIME. I WELCOME THE OPPORTUNITY TO 10:21:54 HEAR FROM THE WITNESSES TODAY ABOUT OUR ENERGY SECURITY AND 10:21:57 THE ONGOING OIL SPILL, OPERATIONS IN THE GULF. 10:21:59 THE COMPANIES REPRESENTED BY THE WITNESSES AT THE TABLE ARE AT 10:22:02 THE FOREFRONT OF ENERGY RESOURCES DEVELOPMENT AND GROWTH 10:22:06 AND YOUR INSIGHTS WILL BE VERY IMPORTANT FOR HOW TO ENSURE A 10:22:08 SPILL OF THE CURRENT MAGNITUDE NEVER HAPPENS AGAIN. 10:22:12 AS WE JUST HEARD FROM MY OTHER COLLEAGUE IN CALIFORNIA MANY OF 10:22:15 US IN CALIFORNIA AND SOUTHERN CALIFORNIA CERTAINLY STILL 10:22:18 RECALL THE OIL SPILL IN SANTA BARBARA FROM 1969. 10:22:21 TO GET A SENSE OF THE MAGNITUDE OF WHAT WE'RE FACING 10:22:24 ADMINISTRATION SCIENTISTS AS OF YESTERDAY WERE ESTIMATING THAT 10:22:27 BP'S WELL COULD BE SPEWING AS MUCH AS FOUR TIMES THAT OIL 10:22:31 EVERY DAY AS WE SPILLED DURING THE ENTIRE SANTA BARBARA 10:22:34 DISASTER. AMERICAN LIVES HAVE ALREADY BEEN 10:22:36 TRAGICALLY LOST AND WE'VE YET TO FULLY UNDERSTAND THE 10:22:39 ENVIRONMENTAL AND ECONOMIC IMPACTS SO THERE IS SIGNIFICANT 10:22:41 WORK AHEAD. OUR PRIORITY FOR OUT AND FOR THE 10:22:44 DAYS AHEAD AS WE'VE ALL SAID MUST BE TO COMPLETELY STOP THE 10:22:48 LEAK. I HOPE OUR WITNESSES ARE WILLING 10:22:50 TO OFFER WHATEVER ASSISTANCE THEY CAN TO ENSURE THAT THAT IS 10:22:53 OUR FOCUS. I'M FAIRLY CERTAIN IT IS WHAT 10:22:55 THE AMERICAN PEOPLE WANT. AS WE SIT HERE TODAY NEARLY TWO 10:22:59 MONTHS HAVE PASSED SINCE THE ORIGINAL DEEPWATER HORIZON 10:23:02 EXPLOSION. WHAT HAVE WE SEEN IN THE 10:23:04 INTERIM? A NUMBER OF CHARGES AGAINST BP 10:23:06 THAT STILL DESERVE ANSWERS, NEW GOVERNMENT COMMITTEES SET UP 10:23:10 ACROSS AGENCIES THAT ARE SLOW IN CRUCIAL DECISIONMAKING AND MOST 10:23:14 IMPORTANTLY THE LIVELIHOODS OF SO MANY GULF RESIDENTS ARE BEING 10:23:18 SEVERELY THREATENED. I WILL BE INTERESTED TO LEARN 10:23:20 ABOUT THE TECHNOLOGIES THAT THESE COMPANIES HAVE INVESTED IN 10:23:23 TO HELP PROTECT AGAINST ANY FUTURE SPILL. 10:23:25 MR. CHAIRMAN, WE AS A FACE OUGHT TO BE DEVOTING ALL OF OUR 10:23:29 RESOURCES TO THIS DISASTER. AS THE ECHOES OF THE SANTA 10:23:32 BARBARA SPILL STILL HAUNT US DECADES LATER AND AS YEARS OF 10:23:36 FAILED ENERGY POLICIES DO AS WELL HOW THIS CRISIS IS MANAGED 10:23:39 OR MISMANAGED MATTERS. WE DO NOT KNOW THE LONG-TERM 10:23:42 CONSEQUENCES YET FROM THE SPILL BUT THE DEVASTATION TO THE 10:23:45 ENVIRONMENT AND THE ECONOMY WILL BE LONG-LASTING AND HAVE 10:23:47 NATIONAL IMPLICATIONS. I APPRECIATE OUR WITNESSES BEING 10:23:50 HERE TODAY AND I YIELD BACK MY TIME. 10:23:52 THANK YOU. WE THANK THE GENTLE LADY. 10:23:54 THE CHAIR RECOGNIZES THE GENTLEMAN FROM CALIFORNIA, 10:23:58 MR. McNERNEY. THANK YOU, MR. CHAIRMAN. 10:24:03 FOR TODAY'S HEARING, I WANT TO WELCOME THE PANELISTS HERE THIS 10:24:07 MORNING. THE EXPLOSION OF THE DEEPWATER 10:24:09 HORIZON AND RESULTING OIL GUSH IS A TRAGEDY WITH TERRIBLE HUMAN 10:24:15 CONSEQUENCES. OUR THOUGHTS AND PRAYERS ARE 10:24:16 WITH THE FAMILIES OF THE VICTIMS AND THE HARD-WORKING AMERICANS 10:24:22 WHO WHOSE WAYS OF LIVES ARE THREATENED. 10:24:24 AMERICANS ARE SHOCKED AND SADDENED BY WHAT OCCURRED BUT 10:24:27 THEY'RE OUTRAGED IS BECAUSE THERE IS NO REAL PLAN TO RESPOND 10:24:31 TO A CRISIS OF THIS MAGNITUDE. THE TECHNOLOGY THAT WAS SUPPOSED 10:24:35 TO FAIL-SAFE FAILED BADLY. HOW COULD COMPANIES LIKE BP HAVE 10:24:41 INVESTED SO MANY MILLIONS OF DOLLARS THIS TECHNOLOGY FOR DEEP 10:24:44 WATER DRILLING BUT FAILED TO DEVELOP EFFECTIVE TECHNOLOGIES 10:24:47 TO PREVENT THIS KIND OF GUSH? I WANT TO KNOW TODAY WHAT STEPS 10:24:52 THE INDUSTRY IS TAKING TO ENSURE THAT THE TECHNOLOGIES DESIGNED 10:24:56 TO BE FAILSAFE WORK AS PROMISED AND WHAT INVESTMENTS THE 10:25:00 INDUSTRY IS MAKING IN TECHNOLOGIES THAT WOULD ALLOW 10:25:03 FOR A FAR MORE EFFECTIVE RESPONSE TO THE DISASTER. 10:25:08 HOWEVER, THE REAL SOLUTION IS TO DELIBERATELY REDUCE OUR 10:25:13 CONSUMPTION OF PETROLEUM FUELS SO THE DEMAND FOR OIL IS 10:25:17 TECHNICALLY MANAGEABLE. I BELIEVE THAT THIS CAN BE DONE 10:25:20 IN A WAY THAT IMPROVES OUR NATIONAL ECONOMY AND I WANT TO 10:25:24 KNOW WHAT THE EXECUTIVES SITTING HERE IN FRONT OF ME TODAY ARE 10:25:28 GOING TO DO TO ACHIEVE THIS GOAL. 10:25:30 THANK YOU, MR. CHAIRMAN, AND I YIELD BACK. 10:25:32 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:25:35 GENTLEMAN FROM FLORIDA, MR. STEARNS. 10:25:38 GOOD MORNING AN THANK YOU, MR. CHAIRMAN AND THANK YOU FOR 10:25:40 HAVING THIS HEARING TOGETHER WITH THE RANKING MEMBER UPTON. 10:25:44 THE TITLE OF THE HEARING IS DRILLING DOWN ON AMERICA'S 10:25:47 ENERGY FUTURE SAFETY SECURITY AND CLEAN ENERGY. 10:25:50 I'M NOT SURE THE TITLE REALLY IS APPROPRIATE AS WELL AS LISTENING 10:25:56 TO SOME OF THESE OPENING STATEMENTS. 10:25:58 THE BOTTOM LINE IS ALL OF US ARE FRUSTRATED HERE AND CONGRESS, AS 10:26:02 WELL AS OBVIOUSLY THE GULF COAST RESIDENTS. 10:26:05 WE DON'T UNDERSTAND WHY BP DIDN'T ACT MORE QUICKLY. 10:26:10 I ASK CEO LAMAR McKAY THE QUESTION IS HOW MANY BARRELS ARE 10:26:14 MANY COULD GO OUT PER DAY. HE SAID 5,000 THEN I READ TO HIM 10:26:17 FROM HIS OWN REPORT THAT HE COULD HANDLE UP TO 300,000 10:26:21 BARRELS A DAY TEN MILES OFF THE SHORE SO THE QUESTION TO HIM IS 10:26:24 WHY CAN'T YOU HANDLE 5,000? WELL, OBVIOUSLY THE 5,000 WASN'T 10:26:28 CORRECT AT LEAST MANY OF US DON'T THINK IT WAS CORRECT. 10:26:31 WE NOW HAVE AN OIL SPILL THAT'S SEVEN TIMES THE "EXXON VALDEZ" 10:26:36 AND YET THERE'S NO END IN SIGHT AT THIS POINT. 10:26:39 SO REALLY THE PURPOSE OF THIS HEARING IS TO ASK THESE 10:26:42 EXECUTIVES, THESE ARE PEOPLE THAT ARE MAKING THE TOP SALARIES 10:26:46 IN THE WORLD TO GET TO THEIR SPOT THEY HAVE UNUSUAL ACUMEN, 10:26:53 FORESIGHT, ENERGY, BUSINESS AWARENESS AND OBVIOUSLY HAVE A 10:26:57 LOT OF CORPORATE POLITICAL SAVVY TO GET WHERE THEY ARE. 10:27:00 THEY WOULDN'T BE HERE TODAY, MR. CHAIRMAN. 10:27:02 SO THE QUESTION IS, CAN EACH ONE OF YOU IN YOUR HEART OF HEARTS 10:27:05 SAY TO US THAT AMERICA IS PROTECTED WITH ALL THE OIL RIGS 10:27:09 YOU HAVE OUT THERE? WE HAVE ALMOST 3,800 IN THE 10:27:12 GULF. CAN YOU TELL US TODAY THAT WE'LL 10:27:15 BE SAFE, THAT AMERICA WILL BE SAFE AND YOU HAVE BACKUP WORST 10:27:19 CASE SCENARIOS? MR. McKAY SAID HE DID BUT HE 10:27:23 DIDN'T. HE DIDN'T EVEN TELL US THE RIGHT 10:27:25 5,000 BARRELS A DAY. OBVIOUSLY IT WAS NOT THAT SO WE 10:27:27 FEED TO HEAR FROM YOU UNDER OATH THAT YOU CAN IN A WORST CASE 10:27:31 SCENARIO PROTECT AMERICA'S SHORES. 10:27:33 THANK YOU, MR. CHAIRMAN. ALL RIGHT. 10:27:35 THE GENTLEMAN'S TIME HAS EXPIRED. 10:27:37 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. GREEN. 10:27:43 THANK YOU, MR. CHAIRMAN FOR HOLDING THE HEARING AND I WANT 10:27:47 TO WELCOME OUR PANELISTS TODAY. STATES ALONG THE GULF COAST ARE 10:27:51 IN THE MIDST OF DEALING WITH THIS TRAGEDY AND MY THOUGHTS AND 10:27:54 PRAYERS GO OUT TO THE FAMILIES AND COMMUNITIES AFFECTED BY THIS 10:27:58 ACCIDENT. FOR THOSE OF US WHO REPRESENT 10:27:59 ENERGY PRODUCING AREAS IT'S LIKE A LOSS IN THE FAMILY AND I THINK 10:28:03 WE NEED TO REMEMBER THAT. WHILE WE ANXIOUSLY AWAIT A 10:28:07 POSITIVE OUTCOME ON EFFORTS TO CONTAIN IT WE ARE BEGINNING THE 10:28:10 PROCESS OF THOROUGHLY EVALUATING ANSWERS ON WHAT WENT WRONG AND 10:28:16 HOLD RESPONSIBLE PARTIES ACCOUNTABLE. 10:28:17 AS WE CONSIDER HOW TO APPROACH THE ISSUES LEGISLATIVE IT'S 10:28:21 CRITICAL WE ALLOW THE FACTS TO COME TO LIGHT AND ALLOW FOR 10:28:24 THOUGHTFUL DELIBERATION FOR MAKING PERMANENT 10:28:26 STATUTORY-SWEEPING CHANGES THAT WOULD END UP TAKING US FURTHER 10:28:29 FROM OUR GOALS OF SAFE, RESPONSIBLE DEVELOPMENT OF OUR 10:28:32 NATURAL RESOURCES. QUICKLY MOVING FORWARD WITH THE 10:28:35 LEGISLATIVE PROPOSALS WOULD HAVE A PROFOUND EFFECT AND POSSIBLY 10:28:38 NEGATIVE CONSEQUENCES FOR AMERICA'S PRODUCTION POTENTIAL 10:28:41 IS NOT THE PATH THAT CONGRESS SHOULD TAKE TO RUSH TO DO 10:28:44 ANYTHING JUST TO BE DOING SOMETHING. 10:28:47 WHILE UNDERSTANDING THERE'S PUBLIC LEARINESS THAT THE DEEP 10:28:51 WATER PRODUCTION I WANT TO NOTE THERE IS STILL A MAJORITY OF THE 10:28:54 AMERICAN PEOPLE WOULD SUPPORT OUTER CONTINENTAL SHELF 10:28:57 DRILLING. I ENCOURAGE ADMINISTRATION 10:28:59 QUICKLY TO DEVELOP AND IMPLEMENT NECESSARY CHANGES IN THE SAFETY 10:29:03 AND PROCEDURAL STANDARDS FOR DEEP WATER AND SHALLOW WATER 10:29:07 DRILLING BECAUSE OF THE LOSS OF JOBS AND DOMESTIC PRODUCTION WE 10:29:10 WILL SEE IF THIS FULL SIX-MONTH DEEP WATER DRILLING MORATORIUM 10:29:15 IS LAST THING -- IT CONTINUES. THAT'S THE LAST THING OUR 10:29:19 RECOVERING ECONOMY NEEDS OR OUR NATION'S ENERGY NEEDS. 10:29:23 I IT'S ALSO ESTIMATED 120,000 JOBS COULD BE LOST AS A RESULT 10:29:26 OF THIS MORATORIUM. FINALLY I LOOK FORWARD TO 10:29:29 HEARING WHAT OUR PANEL PLANS TO DO TO RESTORE AMERICA'S PUBLIC'S 10:29:34 TRUST IN THE OIL AND GAS INDUSTRY. 10:29:35 THERE IS A GREAT RECORD IN THE GULF OF MEXICO, IT'S BEEN SAID 10:29:39 THE LAST TIME I CAN REMEMBER WAS THE WELL IN THE GULF OF MEXICO 10:29:44 WAS ACTUALLY IN THE BAY OF CAMPECHE IN 1979 SO WE HAVE A 10:29:48 GOOD RECORD. WE NEED TO FIND OUT WHY IT 10:29:51 DIDN'T WORK AND ALMOST EVERYTHING WENT WRONG WITH 10:29:54 HORIZON AND WHY IT IS WORKING IN LOTS OF OTHER WELLS THAT ARE 10:29:58 BEING DRILLED. OUR COUNTRY NEEDS A STRONG 10:30:01 STEADY DOMESTIC SUPPLY OF OIL AND GAS AND NATURAL GAS AND AS 10:30:06 WE TRANSITION TO ALTERNATIVE ENERGY SUPPLIES WE MUST NOT 10:30:10 FORGET THAT WE LEGISLATE THE RESPONSE TO THE ACCIDENT AND 10:30:12 LOOK FORWARD TO THE TESTIMONY. MR. CHAIRMAN, I YIELD BACK PIE 10:30:15 TIME. WE THANK THE GENTLEMAN. 10:30:17 WE RECOGNIZE THE GENTLEMAN FROM MR. MISSOURI, MR. BLUNT. 10:30:20 THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HOLDING THIS 10:30:23 HEARING. I HAVE A PREPARED STATEMENT I'LL 10:30:25 PUT IN THE RECORD. LET ME SUMMARIZE THAT A LITTLE 10:30:27 BIT AND FIRST BY SAYING I'M GLAD TO HAVE THESE FIVE INDIVIDUALS 10:30:32 HERE WHO AS MR. BARTON SAID HAVE SO MUCH AT STAKE AND SO MUCH 10:30:36 POTENTIAL TO BE PART OF THIS SOLUTION. 10:30:38 I'M HOPEFUL WE CAN USE THIS HEARING TODAY TO UNDERSTAND 10:30:41 BETTER WHY OUR GOVERNMENT AND BRITISH PETROLEUM COULD HAVE 10:30:45 POSSIBLY BEEN SO POORLY PREPARED FOR THIS DISASTER. 10:30:49 CERTAINLY PEOPLE IN THE FISHING INDUSTRY, THE TOURISM INDUSTRY 10:30:52 WANT ANSWERS TO THIS PROBLEM AND THERE'S PLENTY OF BLAME TO GO 10:30:56 AROUND. I DON'T THINK THE ADMINISTRATION 10:30:59 OR THE GOVERNMENT AGENCY HEADS HAVE DONE EVERYTHING THEY SHOULD 10:31:02 HAVE DONE FROM BEING PREPARED TO PREVENTION TO THE RESPONSE. 10:31:08 INCREDIBLY SEVEN WEEKS AFTER THE DEEPWATER HORIZON EXPLOSION 10:31:11 WE'RE STILL LACKING RESOURCES AND CONTAINMENT, THE BOOMS, THE 10:31:16 SKIMMERS, THE THINGS THAT SHOULD HAVE BEEN READILY AVAILABLE ARE 10:31:19 STILL NOT APPARENTLY THERE IN THE WAYS WE NEED THEM TO GO. 10:31:24 WEEKS AGO I INTRODUCED AND WEEKS NOW INTRODUCED LEGISLATION THAT 10:31:27 WOULD REQUIRE READY ACCESS TO THE THINGS NECESSARY TO CONTAIN 10:31:32 A PROBLEM IF A PROBLEM DEVELOPED IN THE GULF. 10:31:35 WE'RE LEARNING MORE AND MORE EVERY DAY ABOUT THE FAILINGS OF 10:31:40 THE INDUSTRY AND GOVERNMENT AND THE REGULATORS LEADING UP TO THE 10:31:43 INCIDENT, HOWEVER, OUR MAIN FOCUS TODAY AND IN THE NEXT FEW 10:31:47 WEEKS NEEDS TO BE TO STOP -- DO WHAT WE CAN TO STOP THIS PROBLEM 10:31:51 AND THEN TO STUDY THE PROBLEM AND SEE IT DOESN'T OCCUR AGAIN. 10:31:56 I'M CONVINCED THAT WE CAN PROTECT BOTH OUR ENVIRONMENT AND 10:32:00 OUR ECONOIMENT AS WE CONTINUE IN OUR PURSUIT OF MORE 10:32:03 INDEPENDENCE FROM FOREIGN OIL, CONGRESS AND THE ADMINISTRATION 10:32:06 SHOULD WORK TO ENSURE THAT WE CAN PRODUCE DOMESTIC OIL AND GAS 10:32:10 IN AN ENVIRONMENTALLY SOUND MANNER. 10:32:12 I'M AFRAID THAT THE MORATORIUM THAT THE ADMINISTRATION 10:32:15 ANNOUNCED AGAINST THE WISHES OF SECRETARY SALAZAR'S OWN 10:32:19 TECHNICAL ADVISERS WILL COST THOUSANDS OF JOBS AND ULTIMATELY 10:32:24 HARM CONSUMERS. IT'S OBVIOUS WE NEED TO HEAR 10:32:26 FROM THE PANELISTS TODAY. I'M GRATEFUL THEY'RE HERE. 10:32:30 IT'S ALSO OBVIOUS MEMBERS OF THIS COMMITTEE WANT TO SPEAK AND 10:32:32 ARE SPEAKING AND ARE CONCERNED THAT THIS NOT HAPPEN AGAIN AND 10:32:36 WE BE BETTER PREPARED TO TAKE ADVANTAGE OF OUR RESOURCES, NOT 10:32:39 BECOME THE VICTIM OF OUR RESOURCES. 10:32:41 AND I YIELD BACK. WE THANK THE GENTLEMAN. 10:32:43 THE CHAIR RECOGNIZES THE GENTLE LADY FROM CALIFORNIA, MISS 10:32:50 KAPPES. I LOOK FORWARD TO THE 10:32:51 TESTIMONY OF OUR WITNESSES TODAY. 10:32:54 BP'S DEEPWATER HORIZON OIL SPILL IN THE GULF IS AN ENVIRONMENTAL 10:32:58 DISASTER THAT HAS ALREADY CREATED AND TILL THREATENS 10:33:02 PROFOUND HUMAN AND ECONOMIC HARM. 10:33:04 WE ALL MUST DO EVERYTHING POSSIBLE TO CLEAN UP THE DAMAGE 10:33:06 FROM THIS INCIDENT AND PREVENT FUTURE ONES LIKE IT. 10:33:10 THIS MORNING OUR SUBCOMMITTEE NEEDS TO HEAR FROM BP, HOW THE 10:33:13 SPILL OCCURRED AND HOW IT'S GOING TO MAKE THE PEOPLE OF THE 10:33:16 GULF WHOLE. AND MORE BROADLY WE NEED TO HEAR 10:33:19 FROM THE OIL COMPANIES IN GENERAL ABOUT HOW THEY'RE GOING 10:33:22 TO PREVENT SPILLS IN THE FUTURE. UNFORTUNATELY, WE CAN'T STOP 10:33:26 DRILLING OVERNIGHT. AND THESE COMPANIES HAVE THE 10:33:29 RESPONSIBILITY TO DO EVERYTHING IN THEIR POWER TO PREVENT FUTURE 10:33:34 TRAGEDIES. HAVING SEEN THE 1969 OIL SPILL 10:33:37 FIRSTHAND, I CAN TELL YOU THAT SPILL RESPONSE TECHNOLOGY HAS 10:33:42 HARDLY ADVANCED IN THE PAST 40 YEARS. 10:33:45 FINALLY WE NEED TO HEAR FROM EACH WITNESS AND THEIR COMPANIES 10:33:48 WHETHER OR NOT THEY ARE GOING TO PLAY A CONSTRUCTIVE ROLE IN TRAN 10:33:52 SIGNIFICANTING OUR ECONOMY AWAY FROM DRILLING AND ONTO CLEAN 10:33:55 ENERGY SOURCES. THE RECORD TO DATE IS NOT 10:33:59 IMPRESSIVE. THEY NEED TO TRANSITION AWAY 10:34:00 FROM FOSSIL FUELS FOR THE SAKE OF OUR NATIONAL SECURITY, OUR 10:34:04 ECONOMY AND THE ENVIRONMENT. THIS COULD NOT BE MORE APPARENT 10:34:08 THAN IT IS TODAY. PASSING COMPREHENSIVE ENERGY AND 10:34:12 CLIMATE LEGISLATION IS JUST WHAT AMERICA NEEDS TO DO TO HELP GROW 10:34:16 OUR ECONOMY AND TO CREATE JOBS. TAXPAYERS DON'T NEED STATUS QUO 10:34:21 ENERGY POLICIES THAT SEND BILLIONS OVERSEAS TO HOSTILE 10:34:23 GOVERNMENTS. WE FEED A SAFER, A CLEANER AND A 10:34:26 MORE ECONOMICAL APPROACH TO ENERGY DEVELOPMENT. 10:34:28 ONE THAT SHIFTS US AWAY FROM OIL EVENTUALLY AND TOWARD RENEWABLE 10:34:33 SOURCES THAT CAN'T DESTROY OUR COASTLINES. 10:34:36 EVERY DAY WE DELAY OUR ECONOMY GROWS WEAKER. 10:34:39 OUR ENEMIES GROW STRONGER. AND THE PLANET BECOMES MORE 10:34:43 POLLUTED. IT'S TIME FOR REAL SOLUTIONS 10:34:45 THAT PROTECT RATHER THAN ENDANGER OUR COASTAL 10:34:48 COMMUNITIES, OUR LIVELIHOODS, OUR WAY OF LIFE. 10:34:51 I HOPE WE CAN ENACT BIPARTISAN CLIMB AND ENERGY LEGISLATION 10:34:54 THIS YEAR, MR. CHAIRMAN. I PLEDGE TO WORK WITH YOU TO 10:34:58 ACHIEVE THIS VERY IMPORTANT GOAL AND I YIELD BACK. 10:35:00 GREAT. THE GENTLE LADY'S TIME EXPIRED. 10:35:04 THE CHAIR RECOGNIZES THE GENTLEMAN FROM PENNSYLVANIA, 10:35:09 MR. PITTS. THANK YOU FOR HOLING THIS 10:35:12 HEARING. THE BP OIL SPILL IS A TRAGIC 10:35:14 EVENT IN THE HISTORY OF OUR COUNTRY. 10:35:17 NOT ONLY HAVE LIVES BEEN LOST, BUT AN UNKNOWN AMOUNT OF OIL HAS 10:35:22 BEEN LEAKED INTO THE OCEAN CAUSING HORRIBLE EFFECTS. 10:35:25 SOME OF WHICH WE KNOW NOW, SOME OF WHICH WILL TAKE YEARS TO 10:35:30 DISCOVER. FIRST AND FOREMOST, THE LEAKAGE 10:35:32 OF OIL MUST BE STOPPED. I THINK WE ALL KNOW THIS, BUT IT 10:35:35 BEARS REPEATING AND I HOPE OUR WITNESSES WILL TELL US WHAT THEY 10:35:39 THINK MUST BE DONE TO STOP THE LEAK. 10:35:42 ONCE THIS IS DONE, IT IS IMPERATIVE THAT WE THOROUGHLY 10:35:45 UNDERSTAND WHAT HAPPENED ABOARD DEEPWATER HORIZON BEFORE, DURING 10:35:50 AND AFTER THE EXPLOSION. WE MUST KNOW WHAT CAUSED THIS 10:35:53 HORRIFIC EVENT SO THAT IT NEVER HAPPENS AGAIN. 10:35:56 IN THE WAKE OF THIS EVENT, QUESTIONS HAVE NOT ONLY ARISEN 10:36:00 REGARDING THE CAUSE OF THE EXPLOSION AND THE LEAK BUT ALSO 10:36:04 REGARDING THE APPROPRIATENESS OF RESPONSE FROM BP AND THE 10:36:09 ADMINISTRATION. I FIND IT UNFATHOMABLE THAT THE 10:36:12 PRESIDENT IS JUST NOW MEETING WITH TOP BP EXECUTIVES. 10:36:15 IN ADDITION, IT SEEMS TO ME THAT THE ENTIRE FEDERAL RESPONSE HAS 10:36:19 BEEN NOT ONLY DISJOINTED, BUT CONFUSING AND FRUSTRATING FOR 10:36:24 THOSE ON THE GROUND TRYING TO BRING RELIEF. 10:36:27 THE MORATORIUM ANNOUNCED LAST WEEK IS JUST ANOTHER EXAMPLE OF 10:36:30 POOR JUDGMENT WITHOUT REGARD TO THE ECONOMIC LIVELIHOOD OF THE 10:36:35 GULF COAST REGION AND MILLIONS OF AMERICANS WHO BUY GAS EVERY 10:36:37 DAY FOR THEIR VEHICLES. AS I'VE SAID, THIS IS A TRAGIC 10:36:42 EVENT. WE NEED TO MAKE SURE DUE 10:36:44 DILIGENCE IS DONE IN INVESTIGATING THE CAUSES AND THE 10:36:46 APPROPRIATENESS OF RESPONSE IN THE AFTERMATH. 10:36:49 HOWEVER, WE NEED TO MAKE SURE THE RESPONSE OF THIS BODY AND 10:36:53 THE ADMINISTRATION IS PRUDENT, ONE THAT STILL ENCOURAGES OUR 10:36:57 COUNTRY'S ENERGY SECURITY AND INDEPENDENCE. 10:36:59 I LOOK FORWARD TO HEARING FROM OUR WITNESSES TODAY AND I NIELD 10:37:02 BACK. GREAT. 10:37:03 >THE GENTLEMAN'S TIME HAS EXPIRED. 10:37:05 WE RECOGNIZE THE GENTLE LADY FROM CALIFORNIA, HIS HARMAN. 10:37:10 WELCOME TO OUR WITNESSES. I HAVE LONG ARGUED AND SO HAVE 10:37:14 OTHERS THAT WE MUST MOVE AWAY FROM DEPENDENCE ON FOREIGN OIL. 10:37:18 WE KNOW THE NATIONAL SECURITY PITFALLS OF THAT DEPENDENCE. 10:37:23 WE SEE THAT PLAYED OUT EVERY SINGLE DAY IN WHAT'S GOING ON IN 10:37:27 THE MIDDLE EAST, BUT WE ALSO NOW CLEARLY SEE THAT THERE ARE 10:37:30 ENVIRONMENTAL AND ECONOMIC PITFALLS WITH OUR ONGOING 10:37:34 DEPENDENCE ON DOMESTIC OIL. MANY OF THE CALIFORNIANS ON THIS 10:37:37 PANEL INCLUDING ME STAUNCHLY OPPOSE DRILLING OFFSHORE 10:37:42 CALIFORNIA AND I WANT TO APPLAUD OUR PRESIDENT FOR MAKING CLEAR 10:37:46 THAT THAT WILL NOT HAPPEN. BUT IT IS ALSO CLEAR AS OUR 10:37:51 WITNESSES KNOW THAT CALIFORNIA HAS AN ADDICTION TO ONE DRIVER 10:37:55 PER CAR AND THAT, THEREFORE ARE MANY REFINERIES LOCATED 10:38:01 THROUGHOUT THE STATE FOUR OR FIVE IN MY DISTRICT ALONE, EL 10:38:05 SEGUNDO, FOR EXAMPLE, IS NAMED FOR THE SECOND CHEVRON REFINERY 10:38:09 IN THE STATE AND SO ALL OF YOU SITTING HERE LOOKING AT US ARE 10:38:12 SAYING, WELL, HEY, IF YOU'RE NOT FIXING THIS PROBLEM, WHY ARE YOU 10:38:16 BLAMING IT ALL ON US? I JUST WANT TO POINT OUT THE 10:38:19 OBVIOUS THAT SOME OTHER MEMBERS HAVE ALSO ADDRESSED, WHICH IS 10:38:24 THAT ALL THE COMPANIES BEFORE US HAVE IN 2009 YEARLY PROFITS 10:38:29 AMOUNTING TO MORE THAN $64 BILLION. 10:38:34 YOU PAID $37 BILLION IN DIVIDENDS TO YOUR SHAREHOLDERS. 10:38:37 YOU INVESTED MORE THAN $9.5 BILLION IN EXPLORATION, BUT YOU 10:38:42 INVESTED FAR LESS IN RENEWABLE AND ALTERNATIVE ENERGY. 10:38:46 YOU ARE ENERGY COMPANIES AND SO MY URGING WOULD BE WHY NOT 10:38:51 INVEST IN ENERGY PRODUCTS AND ENERGY TECHNOLOGIES THAT ARE FAR 10:38:55 SAFER THAT WILL WEAN US FROM OUR DEPENDENCE ON OIL AND KEEP YOUR 10:39:00 PROFIT LEVEL UP FOR YOUR SHAREHOLDERS BUT THAT OBVIOUSLY 10:39:03 WILL MAKE AMERICA SAFER AND FINALLY LET ME MENTION OUR 10:39:06 CONSTITUENTS ARE VERY SMART. ONE OF THEM APPROACHED ME THE 10:39:09 OTHER DAY AND SAID, "WHY DON'T WE REQUIRE ENERGY COMPANIES THAT 10:39:13 ARE DRILLING ESPECIALLY DEEP WELLS TO DRILL A RELIEF WELL 10:39:17 ALONGSIDE THE ORIGINAL WELL. IF IT WAS DRILLED AT THE SAME 10:39:20 TIME IT WOULD BE THERE IF A CATASTROPHE HAPPENED." 10:39:23 THANK YOU, MR. CHAIRMAN. WE THANK THE GENTLE LADY. 10:39:26 THE CHAIR RECOGNIZES THE GENTLEMAN FROM LOUISIANA, 10:39:29 MR. SCALISE. THANK YOU, MR. CHAIRMAN. 10:39:32 I SPENT LAST FRIDAY ON GRAND ISLE ASSESSING THE DAMAGE AND 10:39:36 TALKING TO LOCAL LEADERS WHO SAY THEY ARE STILL SPENDING MORE 10:39:38 TIME FIGHTING THE FEDERAL GOVERNMENT AND BP THAN THEY ARE 10:39:41 FIGHTING THE OIL. THAT IS UNACCEPTABLE. 10:39:44 YET INDICATIVE OF A SERIOUS LACK OF LEADERSHIP AND COORDINATION 10:39:47 COMING FROM BP AND THE OBAMA ADMINISTRATION. 10:39:51 FIRST AND FOREPOSE OUR FOCUS, BP'S FOCUS AND THE PRESIDENT'S 10:39:54 FOCUS NEEDS TO BE ON PLUGGING THE WELL AND USING EVERY 10:39:57 RESOURCE AVAILABLE TO PROTECT OUR FRAGILE MARSH AND SEAFOOD 10:40:03 BEDS. BP IS THE RESPONSIBLE PARTY AND 10:40:05 NEEDS TO BE HELD ACCOUNTABLE AND I INTEND TO DO EVERYTHING IN NYE 10:40:08 POWER TO MAKE SURE THEY PAY FOR THE FULL COST OF THIS DISASTER. 10:40:10 BUT IN ORDER TO IMPROVE THE INADEQUATE FEDERAL RESPONSE, WE 10:40:13 NEED A CLEAR CHAIN OF COMMAND THAT HOLDS PEOPLE ACCOUNTABLE. 10:40:16 THE OIL POLLUTION ACT OF 1990 STATES THE PRESIDENT SHALL 10:40:20 ENSURE EFFECTIVE AND IMMEDIATE REMOVAL OF A DISCHARGE. 10:40:23 ON NUMEROUS OCCASIONS THE PRESIDENT HAS SAID THAT FROM DAY 10:40:25 ONE HE'S BEEN OTT GROUND AND IN CHARGE BUT IF THAT'S THE CASE, 10:40:28 WHERE WAS THE PRESIDENT WHEN STATE AND LOCAL OFFICIALS WAITED 10:40:31 NEARLY A MONTH FOR APPROVAL ON A PLAN TO CONSTRUCT SAND BERMS TO 10:40:34 PROTECT OUR VALUABLE MARSH AND PREVENT AT LEAST A DOZEN 10:40:38 PELICANS FROM DYING? AND WHY DO BOATS CONTINUE TO SIT 10:40:40 IDLE AT THE DOCKS WHEN FISHERMEN CONSTANTLY HAVING TO SEEK BP'S 10:40:44 APPROVAL TO GET BOOM OR CLEAN UP OUR BEACHES? 10:40:46 THE DELAY OF THE BERM PLAN IS A PRIME EXAMPLE OF THE INCOMPETENT 10:40:50 RESPONSE TO THIS DISASTER. WHILE THE ADMINISTRATION DRAGS 10:40:52 THEIR FEET IN WASHINGTON, MILLIONS OF BARRELS OF OIL 10:40:55 INVADE OUR WETLANDS KILLING SCORES OF WILDLIFE AND 10:40:57 DEVASTATING LOUISIANA'S FISHERIES. 10:40:59 QUICK ACTION AND LEADERSHIP COULD HAVE EFFECTIVELY LIMITED 10:41:01 THE SCOPE OF THIS DISASTER. INSTEAD, THE PRESIDENT RESPONDED 10:41:04 BY MAKING EXCUSES AND SHIFTING BLAME. 10:41:07 FRANKLY, I AND PEOPLE THROUGHOUT LOUISIANA HAVE HAD ENOUGH AND 10:41:10 ARE SICK AND TIRED OF THE EXCUSES WE CONTINUE TO BE GIVEN 10:41:13 BY THE PRESIDENT AND BP. INSTEAD OF LEADING LIKE THE 10:41:16 COMMANDER IN CHIEF, THE PRESIDENT CONTINUES TO AGO LIKE 10:41:18 A SPECTATOR IN THE STANDS. TO ADD INSULT TO INJURY, THE 10:41:21 PRESIDENT'S NOW IMPOSED A SIX-MONTH BAN ON DEEP WATER 10:41:25 DRILLING. MAKE NO MISTAKE IMPLEMENTING 10:41:27 THIS IS LIKE TAKING A JACK HAMMER TO THE BEDROCK OF THE 10:41:30 LOUISIANA ECONOMY. THIS DEVASTATING BAN WILL COST 10:41:32 MY STATE ALONE AT LEAST 40,000 JOBS AND WILL LEAVE OUR NATION 10:41:35 MORE DEPENDENT ON MIDDLE EASTERN OIL COUNTRIES THAT DON'T LIKE 10:41:39 US. WE MUST FIGURE OUT WHAT WENT 10:41:40 WRONG TO PREVENT THIS TYPE OF DISASTER FROM HAPPENING AGAIN IN 10:41:43 THE FUTURE BUT THE PRESIDENT IS NOW EXPLOITING OUR DISASTER AS A 10:41:46 POLITICAL OPPORTUNITY TO ADVANCE HIS RADICAL AGENDA THAT WILL 10:41:50 KILL MORE AMERICAN JOBS. WE NEED ANSWERS AND WE NEED 10:41:52 LEADERSHIP BY THE PRESIDENT, UNFORTUNATELY, WE HAVE NEITHER 10:41:55 AND LOUISIANA'S PEOPLE AND WILDLIFE ARE PAYING THE PRICE. 10:41:57 THANK YOU, MR. CHAIRMAN AND I YIELD BACK. 10:42:00 GREAT. THE GENTLEMAN'S TIME HAS 10:42:02 EXPIRED. THE CHAIR RECOGNIZES THE GENTLE 10:42:05 LADY FROM WISCONSIN, MISS BALDWIN. 10:42:07 THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HOLDING THIS 10:42:10 HEARING TODAY AND CALLING THIS PANEL OF WITNESSES BEFORE US. 10:42:14 THE CATASTROPHE IN THE GULF HAS SHED NEW LIGHT ON THE OPERATIONS 10:42:17 OF THE OIL INDUSTRY. THE SAFETY AND SECURITY MEASURES 10:42:21 THAT THEY HAVE IN PLACE, THE DISASTER PLANS THEY MAINTAIN AND 10:42:24 THEIR EFFORTS TO MOVE US AWAY FROM OUR DEPENDENCE UPON OIL AND 10:42:29 TOWARDS DEVELOPING AND PROMOTING THE USE OF RENEWABLE ENERGY 10:42:32 SOURCES. AS HAS BEEN NOTED, THE COMPANIES 10:42:35 REPRESENTED BEFORE US TODAY HAVE PRODUCED RECORD PROFITS IN 10:42:38 RECENT YEARS. LAST YEAR'S AGGREGATE PROFITS 10:42:41 FOR THE FIVE COMPANIES REPRESENTED HERE TODAY AMOUNT TO 10:42:46 $64 BILLION. UNFORTUNATELY, WHAT APPEARS TO 10:42:50 BE MISSING AMONGST THE DOLLAR SIGNS IS CORPORATE 10:42:54 RESPONSIBILITY. AN OBLIGATION TO OPERATE IN AN 10:42:57 E ENVIRONMENTALLY AND SOCIALLY 10:42:59 RESPONSIBLE MANNER TO PROVIDE SAFE WORKING ENVIRONMENTS, TO BE 10:43:02 GOOD NEIGHBORS AND TO REDUCE ENVIRONMENTAL IMPACTS. 10:43:06 GENERALLY COMPANIES CLAIM THAT STEWARDSHIP IS PART OF THEIR 10:43:10 PHILOSOPHY. I THINK EACH OF THE COMPANIES 10:43:13 REPRESENTED HERE TODAY HAVE MADE THAT REPRESENTATION. 10:43:16 YET, WHAT WE ARE BEGINNING TO FIND AS THIS COMMITTEE AND ITS 10:43:19 OTHER SUBCOMMITTEES INVESTIGATE THIS DISASTER IS THAT RATHER 10:43:23 THAN CORPORATE RESPONSIBILITY, WE MAY HAVE BEFORE US A CULTURE 10:43:26 OF CORPORATE IRRESPONSIBILITY. WE KNOW THAT THE RESULTS OF 10:43:31 LETTING COMPANIES OPERATE UNDER WEAK REGULATION, THEY BEGIN TO 10:43:36 BELIEVE THAT THEY ARE ABOVE THE LAW, THEY IGNORE WARNING SIGNS, 10:43:40 THEY SHORTCUT PROPER PROCEDURES. THEY FAIL TO PROPERLY PAN FOR A 10:43:44 DISASTER AND THEY PUT PROFITS ABOVE ALL ELSE. 10:43:47 YOU KNOW, A LOT OF WHAT I'M OBSERVING IN THIS SECTOR COULD 10:43:51 JUST AS WELL HAVE BEEN SAID ABOUT WHAT WE SAW ON WALL STREET 10:43:54 WITH THE FINANCIAL COLLAPSE IN THE LAST COUPLE OF YEARS. 10:43:58 MR. CHAIRMAN, GOVERNMENT AND INDUSTRY ALL HAVE A ROLE TO PLAY 10:44:02 IN PREVENTING FUTURE ENVIRONMENTAL AND ECONOMIC 10:44:06 DISASTERS AND AS LAWMAKERS, WE HAVE A RESPONSIBILITY TO OUR 10:44:10 CONSTITUENTS, OUR NATION, TO THOSE WHO HAVE LOST JOBS, 10:44:13 PENSIONS AND HEALTH CARE, THOSE WHO HAVE LOST THEIR LIVES TO PUT 10:44:16 AN END TO THIS RECKLESSNESS AND TO HOLD BAD ARCS ACCOUNTABLE. 10:44:19 I LOOK FORWARD TO HEARING FROM OUR WITNESSES ABOUT THE ROLES 10:44:23 THEY SEE THEIR COMPANIES AND THE GOVERNMENT PLAYING IN ENSURING 10:44:26 FUTURE DISASTERS ARE PREVENTED. I YIELD BACK THE BALANCE OF PIE 10:44:30 TIME. WE THANK THE GENTLE LADY. 10:44:32 THE CHAIR RECOGNIZES THE GENTLEMAN FROM ARKANSAS, 10:44:36 MR. ROSS. THANK YOU, MR. CHAIRMAN, FOR 10:44:44 HOLDING TODAY'S HEARING TO DISCUSS THE SAFETY AND SECURITY 10:44:48 OF CURRENT OFFSHORE DRILLING PRACTICES AND THE FUTURE OF 10:44:52 ENERGY PRODUCTION IN OUR NATION. IN THE WAKE OF THE WORST OIL 10:44:57 SPILL IN OUR NATION'S HISTORY, WE MUST NOW LEARN FROM THIS 10:45:01 DISASTER AND RE-EVALUATE OUR OPERATING METHODS AND EXAMINE 10:45:04 HOW OIL WILL BE A PART OF AMERICA'S FUTURE ENERGY POLICY. 10:45:09 AS OIL PRICES AND OIL COMPANY PROFITS HAVE INCREASED 10:45:13 DRAMATICALLY OVER THE LAST DECADE, SO HAS OUR NATION'S 10:45:17 DEPENDENCE ON FOREIGN OIL WITH THE U.S. IMPORTING APPROXIMATELY 10:45:22 52% OF THE OIL IT CONSUMED LAST YEAR. 10:45:25 WHILE I BELIEVE THAT OUR POLICIES MUST BE BROAD ENOUGH TO 10:45:28 CREATE ENERGY FROM A VARIETY OF DOMESTIC SOURCES INCLUDING 10:45:33 DOMESTIC OIL AND NATURAL GAS, I ALSO RECOGNIZE THE IMPORTANCE OF 10:45:36 THOUGHTFUL INVESTMENTS IN BIOFUELS, NUCLEAR, HYDRO POWER, 10:45:40 WIND, SOLAR AND CLEAN COAL TECHNOLOGY. 10:45:44 ON DAY 57 OF THIS DISASTER WITH NO END IN SIGHT, I AM HOPEFUL 10:45:49 THAT THE FIVE COMPANIES TESTIFYING TODAY CAN INFORM US 10:45:53 OF WHAT WENT WRONG, HOW THIS TRAGEDY COULD HAVE BEEN 10:45:57 PREVENTED AND HOW THE AMERICAN PEOPLE CAN HAVE ASSURANCE THAT 10:46:02 THIS WILL NEVER HAPPEN AGAIN. I BELIEVE THE ADMINISTRATION AND 10:46:07 OUR GOVERNMENT MUST DO MORE TO HOLD THESE COMPANIES ACCOUNTABLE 10:46:11 FOR THEIR DRILLING PRACTICES AND ENSURE THE MOST ADVANCED 10:46:15 TECHNOLOGIES AND SAFETY PROCEDURES ARE IN PLACE. 10:46:19 ONCE AGAIN, MR. CHAIRMAN, THANK YOU FOR HOLDING THIS HEARING AND 10:46:22 I LOOK FORWARD TO TODAY'S DISCUSSION. 10:46:24 GREAT. WE THANK THE GENTLEMAN. 10:46:26 THE CHAIR RECOGNIZES THE GENTLEMAN FROM VERMONT, 10:46:29 MR. WELSH. IT'S ABSOLUTELY OUTRAGEOUS 10:46:34 THAT WE ARE HERE TODAY. WHAT HAPPENED IN THE GULF WAS 10:46:38 SOMETHING THAT BP ASSURED US WOULD NEVER EVER HAPPEN, THAT IT 10:46:42 DID HAPPEN, IN FACT, WAS FORESEEABLE AND INEVITABLE AND 10:46:45 WHY WAS THAT? BECAUSE AT EVERY TURN, RECKLESS 10:46:49 DISREGARD OF SAFETY PROCEDURES, CORNER-CUTTING AND DECISIONS 10:46:52 THAT WERE MADE FOR MONEY, NOT SAFETY. 10:46:56 MR. CHAIRMAN, I WANT TO TAKE THIS OPPORTUNITY TO ADDRESS THE 10:46:59 CURRENT CRISIS. AS BP DEBATES WHETHER TO ISSUE A 10:47:02 SECOND QUARTER DIVIDEND ON THEIR ANNUAL $10 BILLION DIVIDEND, WE 10:47:07 HAVE PEOPLE IN THE GULF COAST WHO NEED COMPENSATION. 10:47:12 RESPONSIBLE COMPANIES PAY THEIR OBLIGATIONS THEN THEY PAY 10:47:16 DIVIDENDS. MANY IN CONGRESS HAVE JOINED ME 10:47:19 IN MY CALL ON BP TO DIRECT DIVIDEND FUNDS TO AN ESCROW 10:47:24 ACCOUNT TO BE AVAILABLE TO DEAL WITH THE HEARTACHE AND THE 10:47:27 DESTRUCTION OF LIVELIHOODS IN THE GULF COAST. 10:47:30 BP HAS AFFIRMED ITS INTENTION TO MAKE GOOD ON ITS OBLIGATIONS. 10:47:36 NOW WE ASK THAT BP TAKE FINANCIAL STEPS CONSISTENT WITH 10:47:40 ITS ASSURANCES. PRESIDENT OBAMA AND 54 MEMBERS 10:47:44 OF THE U.S. STAT HAVE CALLED ON THE ESTABLISHMENT OF AN 10:47:47 INDEPENDENTLY ADMINISTERED $20 BILLION ESCROW FUND. 10:47:51 THAT WOULD BE AVAILABLE TO COVER CLEANUP COSTS. 10:47:54 MR. McKAY, I FURTHER CALL ON BP TO DEPOSIT DIVIDEND FUNDS INTO 10:48:00 THIS ESCROW ACCOUNT SO THAT THE CITIZENS OF THE GULF AND THE 10:48:04 TAXPAYERS OF THIS COUNTRY CAN BE ASSURED THAT YOUR COMPANY WILL 10:48:07 MEET ITS OBL GATHS. I YIELD BACK THE BALANCE OF MY 10:48:09 TIME. WE THANK THE GENTLEMAN, THE 10:48:14 CHAIR RECOGNIZES THE GENTLEMAN FROM UTAH, MR. MATH THINKSON. 10:48:20 ALL RIGHT. THANK YOU, MR. CHAIRMAN. 10:48:23 FOR HOLDING THIS HEARING. I KNOW THE -- YOUR TESTIMONY 10:48:27 HIGHLIGHTS THE WAY IN WHICH YOUR COMPANY DOES BUSINESS AND HOW -- 10:48:32 ALSO WE'LL HEAR FROM BP HOW IT CONDUCTED ITSELF IN THE EVENTS 10:48:36 LEADING UP TO THE DEEPWATER HORIZON EXPLOSION. 10:48:39 YOU EACH WILL DISCUSS YOUR SAFETY RECORD AND LESSONS 10:48:42 LEARNED FROM PAST DISASTERS. I THINK IT'S FAIR TO SAY NONE OF 10:48:45 YOUR COMPANIES ARE IMMUNE FROM CRITICISM AND ACCIDENTS CAN 10:48:48 STRIKE ANY PLACE ANY TIME DESPITE THE SAFETY MEASURES YOU 10:48:51 WILL BE TOUTING TODAY. AS MENTIONED FRIDAY NIGHT THE 10:48:55 CHEVRON PIPELINE BEGAN LEAKING IN SALT LAKE CITY AND 10:48:58 BEFORE BEING SHUT OFF LEAKED SOMEWHERE AROUND 33,000 GALLONS 10:49:03 OFOIL IN NORTHERN SALT LAKE CITY WHICH LEADS INTO THE JORDAN 10:49:06 RIVER WHICH EMPTIES INTO THE GREAT SALT LAKE. 10:49:09 THE DATE SALT LAKE IS ONE OF THE MOST IMPORTANT ESTUARIES FOR 10:49:13 MIGRATING BIRDS IN THE WEST. FORTUNATELY CURRENT INFORMATION 10:49:15 INDICATES THAT OIL HAS NOT HIT THE GREAT SALT LAKE AND FURTHER 10:49:18 IT'S FORTUNATE THAT THE DRINKING WATER SUPPLY IS PROTECTED BY 10:49:21 MOST ACCOUNTS THE OIL HAS BEEN CON TAPED. 10:49:24 NOW, 33,000 GALLONS IS A PITTANCE WHEN COMPARED TO THE 10:49:31 IMPACT ON MY CITY'S ECONOMY WILL NOT BE ANYWHERE NEAR WHAT IT IS 10:49:34 FOR THE GULF COAST RESIDENTS. IT FURTHER HIGHLIGHTS THE 10:49:38 IMPORTANT OF FEDERAL GOVERNMENT OVERSIGHT OF OUR ENERGY 10:49:40 INFRASTRUCTURE. THIS PARTICULAR CHEVRON PIPELINE 10:49:44 WAS LAST INSPECTED IN 2008. WE NEED TO FIND OUT WHAT THE 10:49:47 RESULTS WERE OF THAT INSPECTION AND IF ANYTHING IN THAT 10:49:51 INSPECTION GAVE ANY INDICATION OF THE POTENTIAL OF THIS PROBLEM 10:49:53 THAT OCCURRED THIS PAST WEEKEND. RIGHT NOW THE PURPORTED CAUSE OF 10:49:58 THE SPILL IS A BRANCH FELL DURING A HEAVY WINDSTORM AND 10:50:01 CREATED AN ELECTRIC ARC WHICH DROVE A FENCE TO THE JUST INCHEM 10:50:07 THE PIPELINE. IT RAISES QUESTIONS, WHY WAS THE 10:50:10 FENCE POST WITHIN INCHES OF THE PIPELINE. 10:50:12 WHEN THE ELECTRICITY ARCED THROUGH THE FENCE POST, IT 10:50:15 BURNED A HOLE THROUGH THE PIPELINE. 10:50:17 THAT IS THE LATEST EXPLANATION FOR WHAT HAPPENED. 10:50:19 WE NEED ANSWERS TO THAT THE LAST THING WE NEED ANSWERS TO IS 10:50:22 APPARENTLY THE MONITORING EQUIPMENT ON THE PIPELINE FAILED 10:50:25 TO INDICATE THERE WAS A LEAK AND THE FIRST TIME CHEVRON WAS AWARE 10:50:29 OF THE LEAK IS WHETHER THE SALT LAKE CITY FIRE DEPARTMENT CALLED 10:50:31 THEM THE NEXT DAY. SO NUMBER ONE, WHAT WAS THE 10:50:33 RESULT OF THE INSPECTION OF 2008. 10:50:35 MUST BE TWO, WHY WAS A FENCE POST DRILLED WITH INCHES OF 10:50:38 PIPELINE. NUMBER THREE, WHY DID THE 10:50:41 MONITORING EQUIPMENT FAIL IN TERMS OF WHY THE LEAK HAPPENED? 10:50:43 I'M PLANNING OP WORKING WITH THE DEPARTMENT OF TRANSPORTATION, 10:50:47 THE EPA, LOOKING AT THESE ISSUES TO FIND OUT WHY THIS HAND LASTLY 10:50:51 HOW WE DEFINE WHAT CLEAN IS IN TERMS OF THE CLEANUP. 10:50:54 I WILL ACKNOWLEDGE CHEVRON HAS TAKEN RESPONSIBILITY AND WILL 10:50:58 PAY FOR THE CLEANUP IN SALT LAKE. 10:50:59 I APPRECIATE THAT AGGRESSIVE POSITION THEY'VE TAKEN TO REACH 10:51:02 OUT TO THE RESIDENTS OF SALT LAKE CITY. 10:51:05 MR. CHAIRMAN, I'M GLAD YOU BEAR WITH ME, I THOUGHT THIS INCIDENT 10:51:08 OF THE PAST WEEKEND WAS WORTH MENTIONING IN THIS HEARING TO 10:51:12 SHOW THAT ISSUES CAN TOUCH ANYWHERE ALONG THE SUPPLY CHAIN. 10:51:14 IT'S IMPORTANT THAT WE NEED THAT IN MIND, I YIELD BACK. 10:51:19 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:51:26 GENTLEMAN FROM NORTH CAROLINA, MR. BUTTERFIELD. 10:51:28 THANK YOU VERY MUCH, MR. CHAIRMAN. 10:51:30 WE'RE ALL SAYING THE SAME THING, HOW IS HAVE DONE MORE TO PREVENT 10:51:33 THIS UNTHINKABLE DISASTER. EVEN THOUGH SOME SAY SUGGEST 10:51:38 THAT MY HOME STATE OF NORTH CAROLINA IS NOT IN HARM'S WAY, 10:51:42 THE FACT IS WE MAY BE. WE ARE NOT ONLY ANGRY ABOUT THIS 10:51:46 BILL BUT WE ARE SCARED TO DEATH THAT OUR COASTAL AREA WILL BE 10:51:50 AFFECTED. OVER THE PAST 30 YEAR, THE OIL 10:51:52 INDUSTRY HAS USED SOME OF THE WORLD'S MOST ADVANCED 10:51:56 TECHNOLOGIES TO DRILL IN DEEPER WATERS. 10:52:00 THE BROAD INGENUITY THAT ALLOWED THEM TO DRILL MILES UNDER THE 10:52:04 OCEAN'S FLOOR HAS OUTPACED COMMITMENT TO SAFETY AND THAT IS 10:52:08 UNACCEPTABLE. BP IGNORED A VERY SIMPLE RULE. 10:52:10 IF YOU CAN'T PLUG THE HOLE DON'T DRILL THE WELL. 10:52:14 WHAT CONCERNS ME, MR. CHAIRMAN SRNGS WHETHER BP'S MISTAKES ARE 10:52:18 UNIQUE TO THEM OR ARE INDICATIVE OF INDUSTRY-WIDE PRACTICES. 10:52:23 REGARDLESS, WE MUST NOW ENSURE THAT ADEQUATE SAFETY PRACTICES 10:52:26 AND CLEANUP PLANS ARE FIRMLY IN PLACE. 10:52:29 IT WAS ASSUMED THAT THE THIS TYPE OF DISASTER WOULD NEVER 10:52:33 HAPPEN BUT IT DID. I HOPE THIS TRAGIC EVENT 10:52:35 ILLUSTRATES THE NEED FOR ACTION. MANY OF US ON THIS SIDE OF THE 10:52:39 AISLE HAVE ADVOCATED A FUNDAMENTAL OVERHAUL TO OUR 10:52:43 ENERGY STRESSING A BROAD PORTFOLIO OF ENERGY SOURCES AND 10:52:47 ENERGY FISH SICHLT THIS OVERHAUL CAN BE MARKET DRIF FN WE APPLY A 10:52:51 REAL COST TO CARBON AND ITS EFFECTS ON OUR ECONOMY, OUR 10:52:55 QUALITY OF LIFE AND OUR ENVIRONMENT. 10:52:58 THIS DISASTER DEMONSTRATES THAT WE CANNOT DELAY ENACTING 10:53:02 COMPREHENSIVE ENERGY AND CLIMATE CHANGE LEGISLATION TO DIMINISH 10:53:05 OUR DEPENDENCE ON OIL BOTH FOREIGN AND DOMESTIC. 10:53:10 TODAY'S HEARING WILL PROVIDE UNAM BIGGOUS ANSWERS, I HOPE, ON 10:53:15 WHAT TO EXPECT IN THE DAYS, WEEKS AND YEARS TO COME. 10:53:18 FOR MILLIONS OF PEOPLE WHO FACE THIS NIGHTMARE, WE MUST DEMAND 10:53:24 TRANSPARENCY AND A CLEAR ASSESSMENT OF THE FUTURE. 10:53:27 I THANK THE WITNESSES FOR BEING WITH US TODAY AND LET ME JOIN MY 10:53:32 GOOD MR. MR. WELCH IN REQUESTING BP TO CONSENT TO AN ESCROW FUND 10:53:37 TO PROVIDE A MODEST REMEDY FOR THOSE WHO HAVE BEEN HARMED. 10:53:42 I SAY TO THE WITNESSES TODAY, PUT IT ON THE TABLE. 10:53:44 WE MUST KNOW IT OFF. THANK YOU, I YIELD BACK. 10:53:46 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:53:51 GENTLEMAN FROM TEXAS, MR. GONZALES. 10:53:54 THANK YOU VERY MUCH, MR. CHAIRMAN. 10:53:56 I'LL BE VERY BRECHLT I USUALLY DON'T MAKE OPENING STATEMENTS 10:53:58 BUT I THINK I CAN READ THE MINDS OF THE WITNESSES, THEY'RE SAYING 10:54:03 ALL THESE WITNESS ARE STATING THE OBVIOUS IN THE POLITICAL AND 10:54:06 YOU'RE ABSOLUTELY RIGHT AND WHEN WE GET INTO THE QUESTIONING, IT 10:54:10 WILL BE A WHOLE DIFFERENT WORLD. AS FAR AS THE POLITICAL, TO BE 10:54:12 HONEST WITH YOU, ALL THOSE WHO ARE CLAIMING THE PRESIDENT FOR 10:54:16 NOT PETING WITH THE BP CEO IMMEDIATELY. 10:54:20 HAD THE PRESIDENT DONE THAT, TODAY'S STATEMENT WOULD BE WHAT 10:54:26 WAS THE PRESIDENT WITHOUT FIRST VISITING THE AREAS AND MEETING 10:54:29 WITH THE COAST GUARD AND FIRST SPOERNSD. 10:54:31 THAT'S WHAT WOULD HAVE HAPPENED. WHAT I'M HOPING WE'RE GOING TO 10:54:35 ACHIEVE TODAY IS TO HEAR FROM THESE WITNESS, WHAT ARE THE 10:54:38 ENERGY NEEDS OF AMERICA? HOW ARE TRANSPORTATION FUELS 10:54:41 OBVIOUSLY BASED ON OIL? AND WHAT WE'RE GOING DO TO 10:54:45 MOVING FORWARD. THE DIFFERENCE BETWEEN DEEP AND 10:54:48 SHALLOW WATER EXPLORATION AND DRILLING AND HOW WE MEET THE 10:54:51 NEED NEEDS OF OUR PUBLIC, OUR CONSTITUENTS, STENSON OF THIS 10:54:56 COUNTRY AND THE FACTS THAT MEETING THOSE NEEDS IN THE 10:54:59 INTERIM AS WE TRANSITION TO SOMETHING DIFFERENT CAN BE DONE 10:55:04 A IN A POSSIBLE FASHION. WE CAN MEET THE NEED RESPONSIBLY 10:55:06 AND THEY'RE NOT FUTURELY EXCLUSIVE. 10:55:09 THANK YOU VERY MUCH, I YIELD BACK. 10:55:11 WE THANK THE GENTLEMAN FROM TEXAS AND THAT COMPLETES THE 10:55:16 PERIOD FOR OPENING STATEMENTS FROM ALL OF THE MEMBERS OF THE 10:55:24 SUBCOMMITTEE. THE CHAIR DOES NOT SEE ANY OTHER 10:55:28 MEMBERS. I WILL FIRST MAKES -- BEFORE WE 10:55:31 GO TO THE WITNESSES, I WILL FIRST MAKE A UNANIMOUS CONSENT 10:55:36 THAT CHAIRMAN STUPAK AND REPRESENTATIVES BLACKBURN, 10:55:42 CASTOR, WIENER AND JACKSON LEE