COVER FTG OF A PEMEX OIL SPILL OFF THE COAST OF MEXICO FROM 1979. 10:00:01:11 TRAVELLING SHOTS ALONG A BEACH. CU OF AN OIL SOAKED GLOB OF SAND. VS OF A BULLDOZER PLOWING INTO A MOUND OF SAND. 10:02:29:05 AERIALS OF A BURNING OIL SLICK IN THE GULF OF MEXICO. 10:04:25:13 BLANK TO END. CI: AIR VIEWS: OIL SLICK. DISASTERS: OIL SLICK.

PRESIDENT GEORGE BUSH REMARKS TO THE COMMUNITY OF SPRINGFIELD, MISSOURI.

<p></p>\n<p><b>--SUPERS</b>--</p>\n<p>BlackSky</p>\n<p></p>\n<p></p>\n<p></p>\n<p></p>\n<p><b>--VIDEO SHOWS</b>--</p>\n<p>Satellite image of ship on fire</p>\n<p></p>\n<p><b>--VO SCRIPT</b>--</p>\n<p>#NEWS: Greek vessel attacked by Houthis in Red Sea appears to be leaking oil, Pentagon warns</p>\n<p></p>\n<p>By Catherine Nicholls and Oren Liebermann, CNN</p>\n<p></p>\n<p>A Greek-flagged vessel attacked by Houthi rebels in the Red Sea appears to be leaking oil, according to a Pentagon spokesperson, who warned of a “potential environmental catastrophe” in one of the world’s busiest waterways.</p>\n<p></p>\n<p>The Sounion came under a barrage of projectiles last week, after the Iran-backed group targeted the crude oil tanker as part of a months-long campaign on ships along the maritime route.</p>\n<p></p>\n<p>The Houthis, who control Yemen’s most populous regions, say the attacks are in response to the Israeli offensive in Gaza – which has killed more than 40,000 Palestinians and laid waste to swathes of the strip.</p>\n<p></p>\n<p>The Israeli military launched its offensive after Hamas-led October 7 attacks on southern Israel left around 1,200 people killed and more than 250 abducted, according to Israeli authorities.</p>\n<p></p>\n<p>Images have emerged in recent days of bright orange balls of fire raging over the vessel. The Sounion is carrying about one million barrels of crude oil, Pentagon press secretary Maj. Gen. Patrick Ryder said on Tuesday.</p>\n<p></p>\n<p>The ship had been sailing from Iraq to Greece when it came under fire, according to Ryder. The entire crew of 23 Filipino and two Russian sailors have evacuated the carrier.</p>\n<p></p>\n<p>“The MV Delta Sounion now sits immobilized in the Red Sea where it is currently on fire and appears to be leaking oil, presenting both a navigational hazard and a potential environmental catastrophe,” said Ryder.</p>\n<p></p>\n<p>The damage to the vessel poses a “navigational risk and a serious and imminent threat of regional pollution,” according to Eunavfor Aspides, a European Union defensive maritime security operation aimed at protecting merchant and commercial vessels in the Red Sea, the Indian Ocean and the Gulf.</p>\n<p></p>\n<p>“There’s no oil spill, and the ship is still anchored and not drifting,” Eunavfor Aspides said in a post on X on Wednesday, adding that fires have been detected in several locations on the main deck.</p>\n<p></p>\n<p>Attacks by the Houthis have sunk at least two ships and killed three crew members in the Red Sea – which connects with the Suez Canal, a vital thoroughfare that accounts for 10-15% of world trade – according to Reuters.</p>\n<p></p>\n<p>The Houthis fired on the tanker because Delta Tankers breached its ban on “entry to the ports of occupied Palestine,” according to the group’s military spokesperson, Yahya Saree, Reuters reported.</p>\n<p></p>\n<p>The Iran-backed group will enact a “temporary truce” to allow rescue vessels to reach the area to extinguish the fire, the Iranian Permanent Mission to the United Nations told CNN in a statement on Wednesday.</p>\n<p></p>\n<p>But the mission warned that “as long as the war in Gaza persists,” the Houthis will “continue to target oil tankers bound for the Israeli regime in the Red Sea” – referring to the group also known as Ansar Allah (Supporters of God).</p>\n<p></p>\n<p>Earlier this year, leading shipping groups called on governments to put a stop to Houthi attacks in the Red Sea, which has sent costs soaring as companies resorted to alternative cargo routes with longer travel times.</p>\n<p></p>\n<p>The US State Department urged the Houthis to cease attacks along the bustling shipping route and called on other nations to “step forward to help avert this environmental disaster.”</p>\n<p></p>\n<p>The biggest oil spill from a ship was recorded in 1979, when approximately 287,000 metric tons of oil ran from the Atlantic Empress after it crashed with another carrier in the Caribbean Sea during a storm, according to the International Tanker Owners Pollution Federation.</p>\n<p></p>\n<p><b>-----END-----CNN.SCRIPT-----</b></p>\n<p></p>\n<p><b>--KEYWORD TAGS--</b></p>\n<p></p>\n<p><b>--MUSIC INFO---</b></p>\n<p></p>

MISC. HAWAII NEWS FOOTAGE

AP-APTN-0930: US Oil Saturday, 12 June 2010 STORY:US Oil- REPLAY New figures show leak may be twice as bad as previously thought LENGTH: 03:09 FIRST RUN: 0330 RESTRICTIONS: Pt No Access NAmerica/Internet TYPE: English/Nats SOURCE: AP TELEVISION/ABC/BP handout STORY NUMBER: 648152 DATELINE: Various, 11 June 2010 LENGTH: 03:09 ABC - NO ACCESS NORTH AMERICA/INTERNET AP TELEVISION - AP CLIENTS ONLY BP HANDOUT - AP CLIENTS ONLY SHOTLIST: ABC - NO ACCESS NORTH AMERICA/INTERNET Washington, DC 1. Wide of US Coast Guard Admiral Thad Allen walking to podium 2. SOUNDBITE: (English) Admiral Thad Allen, US Coast Guard: "First of all, I think we're still dealing with the flow estimate, and we're still trying to refine those numbers. One portion of the work, as we've just indicated, came up with the higher flow rate." 3. Allen at podium 4. SOUNDBITE: (English) Admiral Thad Allen, US Coast Guard: "Between the middle of June and the first week or so of July we're going to start incrementally building out a new mooring system, and then production vessels that will be linked to shuttle tankers that can accommodate a greater flow rate, and at that point, once we know we can do that, we will probably shift from a containment cap we have right now to a more hard cap, which will help us to capture more - if not all - of the oil that's coming out of the well head." ABC - NO ACCESS NORTH AMERICA/INTERNET Fort Jackson, Louisiana 5. Louisiana Governor Bobby Jindal at news conference 6. SOUNDBITE: (English) Bobby Jindal, Louisiana Governor: "They should absolutely make the data, the images, available to not only the world's and the country's best scientists and engineers, but also the American people. There has been a pattern here from the very beginning: they've not made the data available, they've not made the components of the sub-sea dispersants available, they've not allowed folks to have easy access to the images of oiled wildlife or marshlands or the coastline, and the reality is, this coastline doesn't belong to BP, it doesn't belong to me; it belongs to the people of Louisiana, it belongs to the people of America - they've got a right to see what's happening out there." 7. Jindal at podium AP TELEVISION - AP CLIENTS ONLY Venice, Louisiana 8. Wide of interior of restaurant 9. SOUNDBITE: (English) Vox pop, Mike Butler, business owner: "Being in the oil industry - and my father worked for it for 40 years and I worked for it for, well, put my way through college - it didn't take a rocket scientist to figure out a 21-inch (53.3-centimetre) pipe was going to put out more oil than they were saying." 10. Man sitting at counter in restaurant 11. SOUNDBITE: (English) Philippe Cousteau Junior, environmentalist: "So you're talking about a significant increase in how much oil is coming out - well over a (m) million gallons (3.78 (m) million litres) a day. That equates to about an Exxon Valdez a week. Now, Exxon Valdez, we know, was 11 (m) million gallons (41.6 (m) million litres) it was confined to the surface in Alaska, and caused considerable damage, and the Prince William Sound and the ecosystem and the animals in those regions and many of the communities and the people have not recovered 20 years later." ABC - NO ACCESS NORTH AMERICA/INTERNET Gulfport, Mississippi ++MUTE++ 12. Wide of woman cleaning turtle 13. Mid of turtle being cleaned, zoom in to close-up 14. Close-up of turtle being cleaned 15. Dead turtles on beach BP HANDOUT - AP CLIENTS ONLY Gulf of Mexico ++MUTE++ 16. Oil flowing from pipe 17. Robotic equipment close to pipe 18. Oil flowing from pipe STORYLINE: The oil leak in the Gulf of Mexico may be twice as big as previously thought, scientists said on Friday. Scientists now say the wrecked oil well could have been spewing up to two (m) million gallons (7.6 (m) million litres) a day of crude before a new cap started capturing some of the leak, meaning more than 100 (m) million gallons (380 (m) million litres) may have escaped into the sea. That is more than nine times the size of the 1989 Exxon Valdez disaster, previously the worst oil spill in US history. The larger estimates, while still preliminary and considered a worst-case scenario, could contribute to huge liabilities against BP. Penalties can be levied against the company under a variety of environmental protection laws, including fines of up to 1,100 US dollars under the Clean Water Act for each barrel of oil spilled. Based on the maximum amount of oil possibly spilled to date, that would translate to a potential civil fine for simple discharge alone of 2.8 (b) billion US dollars. If BP were found to have committed gross negligence or wilful misconduct, the civil fine could be up to 4,300 dollars per barrel, or up to 11.1 (b) billion dollars. The federal government's point man for the Gulf Coast oil spill on Friday acknowledged that reliable numbers on the severity of the crisis are hard to get. "I think we're still dealing with the flow estimate. We're still trying to refine those numbers," Coast Guard Admiral Thad Allen told reporters in Washington, DC. Allen said it will be at least July before BP has the tankers in place to capture the latest estimates for crude flowing from the blown well. Even if undersea efforts to direct the oil to the surface succeed, it will take weeks to get the proper equipment in place to hold it, he said. Allen sent a letter to BP's chairman, Carl-Henric Svanberg, on Thursday, summoning him and "any appropriate officials" from BP to meet with US President Barack Obama and others next Wednesday. The White House said on Friday that Svanberg would attend, and the company's CEO, Tony Hayward, is also assumed to be coming. Louisiana Governor Bobby Jindal blasted BP on Friday for not being more forthcoming about how much oil is really pouring into the Gulf of Mexico. At his daily news briefing, Jindal said that at the beginning BP told officials there was no oil leak at all, and after that had repeatedly given different figures for how much oil was escaping into the ocean. Jindal insisted that BP should make the real data available not only to scientists but to the American people. The new spill estimates are based on spill-cam video as well as such things as satellite, sonar and pressure readings. The lead scientist in the effort said the most credible range at the moment is between 840-thousand gallons (3,179,650 litres) and 1.68 (m) million gallons (6.4 (m) million litres) a day. Another part of the equation is how much more oil started to leak last week after the riser pipe was cut, a step that BP and government officials said could increase the flow by 20 percent. The pipe cut was necessary to install a cap over the well; the cap has captured an estimated 4 (m) million gallons (15 (m) million litres) so far. A larger spill also could lead to increased environmental hazards, with shrimp, crabs and fish such as marlin and swordfish especially hard hit. Environmentalist Philippe Cousteau Junior said the amount of oil leaking every week is roughly equivalent to the entire Exxon Valdez spill in Alaska in 1989. Much of the area affected by the Exxon Valdez spill still has not recovered, he said. At the highest estimated rate, in just over three weeks from now the spill will eclipse the worst oil spill in peacetime history, the 1979 Ixtoc disaster in Mexico, which took 10 months to belch out 140 (m) million gallons (530 (m) million litres) of oil into the Gulf. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 06-12-10 0530EDT

SNAP Tape Number: SN0022 Tape Title: The Seventies-Iconic Events Date Completed: 10/18/06 Disasters, Weather, Science, Technology, Law, Crime, Cities, Scenics, Business, Industry, Government, Politics Clip # Running TC Assign # TC In TC Out Run Time Date Description (or AVSreel #) 1 1:00:00 305370O 2:40 - 2:53 :13 3/30/1979 WS of Three Mile Island cooling towers at sunset from across river. 2 1:00:14 305368B 7:37 - 7:46 :09 3/28/1979 Aerial of Three Mile Island. 3 1:00:24 305368B 17:28 - 17:38 :10 3/28/1979 Zoom out to WS of Three Mile Island cooling towers during day. 4 1:00:35 305368B 18:55 - 19:11 :16 3/28/1979 MS then pan right of control panel inside Three Mile Island. 5 1:00:52 305369A 16:50 - 17:05 :14 3/29/1979 WS panning left of Three Mile Island facilities 6 1:01:07 305373H 3:32 - 3:41 :09 4/3/1979 Sequence shows WS entrance to Three Mile Island Observation Center then WS of Center with cooling towers in background. 7 1:01:16 B29908 (Ord #41924) 1:34:14 - 1:34:44 :30 7/14/1977 Aerial of fires in Harlem during NYC Blackout of '77. 8 1:01:46 B29908 1:35:32 - 1:36:00 :28 7/14/1977 WS panning right of dark NYC skyline during blackout. Zoom in to lower Manhattan ending on WTC towers. 9 1:02:14 204101A (Crime #57) 12:48:15 - 12:49:00 :45 7/14/1977 Tracking left of people walking along darkened sidewalks near Times Square during blackout. 10 1:02:47 B29927A 1:00:13 - 1:00:28 :15 7/14/1977 Pan right across darkened NYC skyline at dusk during blackout. 11 1:03:01 B29927A 1:00:47 - 1:00:57 :10 7/14/1977 Handheld camera through Grand Central showing people sitting in the dark. 12 1:03:11 A87359A 1:01:07 - 1:01:29 :22 6/13/1973 Sequence shows VS deserted gas stations, "closed" sign in window. 13 1:03:33 A87359B 1:03:05 - 1:03:35 :30 6/13/1973 Sequence shows zoom out from gallon counter to man pumping gas into can. Zoom in from pump to sign "closed due to gas shortage." 14 1:04:03 A87371B 1:03:53 - 1:04:03 :10 6/8/1973 Sequence shows long shot of oil derrick in wheat field then CU of sign on gas pump reading "out of gas." 15 1:04:13 NYTL3537V 0:54 - 1:24 :30 1/1/1973 Sequence shows man filling gas tank with can, VS at gas station, oil truck, "no gas" sign. VS aerials of gas line. 16 1:05:34 204926A 5:45 - 5:55 :10 8/6/1978 WS small house with chain-link fence and sign in front yard. Zoom in to sign "disaster area- city failed us." 17 1:05:52 204926A 7:30 - 7:43 :12 8/6/1978 WS small house then zoom in to sign on front lawn "Love Canal Recipe.sickness & death." 18 1:06:04 204926A 15:27 - 15:40 :13 8/6/1978 CU of toxic Love Canal site then zoom out to fence and sign "No Trespassing. Dangerous Area." 19 1:06:21 206777 1:11 - 1:21 :06 10/11/1978 CU then zoom out of toxic waste at Love Canal. 20 1:06:28 206777 1:25 - 1:31 :10 10/11/1978 CU of stick stirring toxic sludge then zoom out to reveal a toxic puddle at Love Canal. 21 1:06:40 012895I 3:07 - 3:15 :08 7/4/1976 CU then tilt up to President Ford cutting cake for Bicentennial aboard USS Nashville. 22 1:06:48 NYTL12013L 5:34 - 5:40 :06 7/4/1976 MS of President Ford ringing bell aboard the USS Nashville for the Bicentennial. 23 1:06:55 SPTA1614D 5:29 - 5:40 :11 7/4/1976 Sequence shows Bicentennial fireworks, sign "1776-1976." 24 1:07:06 SPTA1614D 13:06 - 13:15 :09 7/4/1976 Sequence shows CU Statue of Liberty, tall ships pass in front of Statue. 25 1:07:15 SPTA1614D 14:39 - 14:50 :11 7/4/1976 Aerial of tall ships in New York Harbor with Manhattan skyline in background for Bicentennial. 26 1:07:26 SPTA1614D 53:45:00 - 53:55:00 :10 7/4/1976 Dark aerial above Statue of Liberty as it is surrounded by fireworks for Bicentennial celebration. 27 1:07:37 DCBB40329C 19:59:56 - 20:00:03 :05 5/2/1970 Sequence shows CUs children holding Earth Day signs. 28 1:07:43 DCBB40329C 20:02:22 - 20:02:28 :04 5/2/1970 CU of billowing white Earth Day flag in front of Washington Monument façade. 29 1:07:48 DCBB40329C 20:03:20 - 20:03:40 :19 5/2/1970 WS then zoom in on Earth Day march through Union Square in NYC. 30 1:08:08 DCBB40329A 23:03:05 - 23:03:15 :10 5/2/1970 WS then pan left over large crowd at Earth Day rally in Washington DC. 31 1:08:18 DCBB40329A 23:15:33 - 23:15:42 :09 5/2/1970 CU then zoom out from man holding sign in crowd reading "RIP 1990 AD" with picture of Earth to WS of crowd. 32 1:08:27 A61600 1:04:24 - 1:04:31 :05 4/22/1970 WS down closed 5th Avenue in NYC full of people walking for Earth Day. 33 1:08:33 NYBU14024M 9:19:38 - 9:19:54 :16 3/8/1973 Zoom out from CU of sunset through transparent American flag to WS of Pine Ridge Indians in silhouette on hill at Wounded Knee. 34 1:08:50 NYBU14024O 15:02:37 - 15:02:47 :09 3/8/1973 WS panning right of Indians standing on hill with brush fire burning foreground. 35 1:09:00 NYBU14024O 15:03:29 - 15:03:44 :13 3/8/1973 MS follows federal agents with hands in air being led to building by armed Indians on Pine Ridge reservation. 36 1:09:14 NYBU14024O 15:05:53 - 15:06:10 :17 3/8/1973 Sequence shows MS of Indians standing then WS panning right of crowd listening to AIM activist Russell Means speaking through megaphone. 37 1:09:31 A72336 (Crime #65) 1:02:05 - 1:02:25 :20 9/12/1971 Sequence shows various exteriors of Attica Prison with emergency vehicles and personnel in front of prison walls. 38 1:09:52 A72336 1:02:26 - 1:02:35 :08 9/12/1971 CU sign on prison wall reads "Attica Correctional Facility" then zoom out to WS of law enforcement standing at prison entrance. 39 1:10:01 A72623B (Crime #65) 1:34:19 - 1:34:34 :15 9/12/1971 Zoom out from CU to WS of families waiting anxiously in the rain for news. 40 1:10:16 A72281 1:04:39 - 1:04:52 :17 9/15/1971 WS through prison window of prisoners walking in group through courtyard. 41 1:10:29 NYTC3011A 1:18 - 1:48 :27 Sep-71 Tracking shot shows armed troops in formation then marching into Attica through front entrance. 42 1:10:57 NYTC3011A 1:52 - 2:00 :08 Sep-71 WS tilt down from prison wall to troops standing in formation in front of Attica entrance. 43 1:11:06 NYTC3011A 2:45 - 3:00 :15 Sep-71 Aerial over Attica Correctional Facility showing prison grounds surrounded by large wall. 44 1:11:25 300920K 4:08 - 4:18 :09 6/18/1977 Low-level tracking shot from the air flying alongside the Alaska (Alyeska) Oil Pipeline 45 1:11:35 300920I 0:14 - 0:22 :08 6/18/1977 Zoom out from CU of control panel diagram of Alaska Pipeline pump station to WS of technician monitoring diagram. 46 1:11:44 300920H 7:20 - 7:26 :06 6/18/1977 MS of starting area of the Alaska Oil pipeline then zoom to sign reading "The Start: Trans Alaska Pipeline." 47 1:11:51 B01928 1:05:01 - 1:05:07 :06 3/28/1975 CU then zoom out to WS of first section of Alaska Pipeline under construction with Alaskan scenery in background. 48 1:11:58 B01928 1:05:08 - 1:05:25 :17 3/28/1975 Aerial shows construction underway on first section of Alaska Pipeline with mountains in background. 49 1:12:16 B08612 1:05:31 - 1:05:40 :09 11/26/1975 Sequence shows three MS of portion of Alaska Pipeline being laid by cranes with mountains in background at sunset. 50 1:12:26 A82108 1:05:50 - 1:05:58 :08 11/1/1972 Tilt up from sign reading "Sears Tower" to extreme low angle shot of Sear Tower under construction. 51 1:12:35 A82108 1:06:06 - 1:06:15 :09 11/1/1972 Zoom out from MS to WS of worker on steel beam of Sears Tower high above Chicago. 52 1:12:45 A68629A 1:06:23 - 1:06:32 :09 3/30/1971 Aerial above World Trade Center twin towers while under construction 53 1:12:55 A68629A 1:06:33 - 1:06:39 :06 3/30/1971 Sequence shows CU of worker high atop tower then WS of worker sitting on and surrounded by steel beams. 54 1:13:02 A68629A 1:06:40 - 1:06:44 :04 3/30/1971 Pan left and zoom out from WS of midtown Manhattan to worker in mask welding beams together atop tower. 55 1:13:07 A68629A 1:06:55 - 1:07:03 :08 3/30/1971 Wider aerial of twin towers of WTC under construction with Manhattan in background. 56 1:13:16 A68629B 1:07:39 - 1:07:46 :07 3/30/1971 Extreme low angle shot of WTC towers under construction with clouds in background. END 1:13:24 SNAP

SNAP Tape Number: SN0022 Tape Title: The Seventies-Iconic Events Date Completed: 10/18/06 Disasters, Weather, Science, Technology, Law, Crime, Cities, Scenics, Business, Industry, Government, Politics Clip # Running TC Assign # TC In TC Out Run Time Date Description (or AVSreel #) 1 1:00:00 305370O 2:40 - 2:53 :13 3/30/1979 WS of Three Mile Island cooling towers at sunset from across river. 2 1:00:14 305368B 7:37 - 7:46 :09 3/28/1979 Aerial of Three Mile Island. 3 1:00:24 305368B 17:28 - 17:38 :10 3/28/1979 Zoom out to WS of Three Mile Island cooling towers during day. 4 1:00:35 305368B 18:55 - 19:11 :16 3/28/1979 MS then pan right of control panel inside Three Mile Island. 5 1:00:52 305369A 16:50 - 17:05 :14 3/29/1979 WS panning left of Three Mile Island facilities 6 1:01:07 305373H 3:32 - 3:41 :09 4/3/1979 Sequence shows WS entrance to Three Mile Island Observation Center then WS of Center with cooling towers in background. 7 1:01:16 B29908 (Ord #41924) 1:34:14 - 1:34:44 :30 7/14/1977 Aerial of fires in Harlem during NYC Blackout of '77. 8 1:01:46 B29908 1:35:32 - 1:36:00 :28 7/14/1977 WS panning right of dark NYC skyline during blackout. Zoom in to lower Manhattan ending on WTC towers. 9 1:02:14 204101A (Crime #57) 12:48:15 - 12:49:00 :45 7/14/1977 Tracking left of people walking along darkened sidewalks near Times Square during blackout. 10 1:02:47 B29927A 1:00:13 - 1:00:28 :15 7/14/1977 Pan right across darkened NYC skyline at dusk during blackout. 11 1:03:01 B29927A 1:00:47 - 1:00:57 :10 7/14/1977 Handheld camera through Grand Central showing people sitting in the dark. 12 1:03:11 A87359A 1:01:07 - 1:01:29 :22 6/13/1973 Sequence shows VS deserted gas stations, "closed" sign in window. 13 1:03:33 A87359B 1:03:05 - 1:03:35 :30 6/13/1973 Sequence shows zoom out from gallon counter to man pumping gas into can. Zoom in from pump to sign "closed due to gas shortage." 14 1:04:03 A87371B 1:03:53 - 1:04:03 :10 6/8/1973 Sequence shows long shot of oil derrick in wheat field then CU of sign on gas pump reading "out of gas." 15 1:04:13 NYTL3537V 0:54 - 1:24 :30 1/1/1973 Sequence shows man filling gas tank with can, VS at gas station, oil truck, "no gas" sign. VS aerials of gas line. 16 1:05:34 204926A 5:45 - 5:55 :10 8/6/1978 WS small house with chain-link fence and sign in front yard. Zoom in to sign "disaster area- city failed us." 17 1:05:52 204926A 7:30 - 7:43 :12 8/6/1978 WS small house then zoom in to sign on front lawn "Love Canal Recipe.sickness & death." 18 1:06:04 204926A 15:27 - 15:40 :13 8/6/1978 CU of toxic Love Canal site then zoom out to fence and sign "No Trespassing. Dangerous Area." 19 1:06:21 206777 1:11 - 1:21 :06 10/11/1978 CU then zoom out of toxic waste at Love Canal. 20 1:06:28 206777 1:25 - 1:31 :10 10/11/1978 CU of stick stirring toxic sludge then zoom out to reveal a toxic puddle at Love Canal. 21 1:06:40 012895I 3:07 - 3:15 :08 7/4/1976 CU then tilt up to President Ford cutting cake for Bicentennial aboard USS Nashville. 22 1:06:48 NYTL12013L 5:34 - 5:40 :06 7/4/1976 MS of President Ford ringing bell aboard the USS Nashville for the Bicentennial. 23 1:06:55 SPTA1614D 5:29 - 5:40 :11 7/4/1976 Sequence shows Bicentennial fireworks, sign "1776-1976." 24 1:07:06 SPTA1614D 13:06 - 13:15 :09 7/4/1976 Sequence shows CU Statue of Liberty, tall ships pass in front of Statue. 25 1:07:15 SPTA1614D 14:39 - 14:50 :11 7/4/1976 Aerial of tall ships in New York Harbor with Manhattan skyline in background for Bicentennial. 26 1:07:26 SPTA1614D 53:45:00 - 53:55:00 :10 7/4/1976 Dark aerial above Statue of Liberty as it is surrounded by fireworks for Bicentennial celebration. 27 1:07:37 DCBB40329C 19:59:56 - 20:00:03 :05 5/2/1970 Sequence shows CUs children holding Earth Day signs. 28 1:07:43 DCBB40329C 20:02:22 - 20:02:28 :04 5/2/1970 CU of billowing white Earth Day flag in front of Washington Monument façade. 29 1:07:48 DCBB40329C 20:03:20 - 20:03:40 :19 5/2/1970 WS then zoom in on Earth Day march through Union Square in NYC. 30 1:08:08 DCBB40329A 23:03:05 - 23:03:15 :10 5/2/1970 WS then pan left over large crowd at Earth Day rally in Washington DC. 31 1:08:18 DCBB40329A 23:15:33 - 23:15:42 :09 5/2/1970 CU then zoom out from man holding sign in crowd reading "RIP 1990 AD" with picture of Earth to WS of crowd. 32 1:08:27 A61600 1:04:24 - 1:04:31 :05 4/22/1970 WS down closed 5th Avenue in NYC full of people walking for Earth Day. 33 1:08:33 NYBU14024M 9:19:38 - 9:19:54 :16 3/8/1973 Zoom out from CU of sunset through transparent American flag to WS of Pine Ridge Indians in silhouette on hill at Wounded Knee. 34 1:08:50 NYBU14024O 15:02:37 - 15:02:47 :09 3/8/1973 WS panning right of Indians standing on hill with brush fire burning foreground. 35 1:09:00 NYBU14024O 15:03:29 - 15:03:44 :13 3/8/1973 MS follows federal agents with hands in air being led to building by armed Indians on Pine Ridge reservation. 36 1:09:14 NYBU14024O 15:05:53 - 15:06:10 :17 3/8/1973 Sequence shows MS of Indians standing then WS panning right of crowd listening to AIM activist Russell Means speaking through megaphone. 37 1:09:31 A72336 (Crime #65) 1:02:05 - 1:02:25 :20 9/12/1971 Sequence shows various exteriors of Attica Prison with emergency vehicles and personnel in front of prison walls. 38 1:09:52 A72336 1:02:26 - 1:02:35 :08 9/12/1971 CU sign on prison wall reads "Attica Correctional Facility" then zoom out to WS of law enforcement standing at prison entrance. 39 1:10:01 A72623B (Crime #65) 1:34:19 - 1:34:34 :15 9/12/1971 Zoom out from CU to WS of families waiting anxiously in the rain for news. 40 1:10:16 A72281 1:04:39 - 1:04:52 :17 9/15/1971 WS through prison window of prisoners walking in group through courtyard. 41 1:10:29 NYTC3011A 1:18 - 1:48 :27 Sep-71 Tracking shot shows armed troops in formation then marching into Attica through front entrance. 42 1:10:57 NYTC3011A 1:52 - 2:00 :08 Sep-71 WS tilt down from prison wall to troops standing in formation in front of Attica entrance. 43 1:11:06 NYTC3011A 2:45 - 3:00 :15 Sep-71 Aerial over Attica Correctional Facility showing prison grounds surrounded by large wall. 44 1:11:25 300920K 4:08 - 4:18 :09 6/18/1977 Low-level tracking shot from the air flying alongside the Alaska (Alyeska) Oil Pipeline 45 1:11:35 300920I 0:14 - 0:22 :08 6/18/1977 Zoom out from CU of control panel diagram of Alaska Pipeline pump station to WS of technician monitoring diagram. 46 1:11:44 300920H 7:20 - 7:26 :06 6/18/1977 MS of starting area of the Alaska Oil pipeline then zoom to sign reading "The Start: Trans Alaska Pipeline." 47 1:11:51 B01928 1:05:01 - 1:05:07 :06 3/28/1975 CU then zoom out to WS of first section of Alaska Pipeline under construction with Alaskan scenery in background. 48 1:11:58 B01928 1:05:08 - 1:05:25 :17 3/28/1975 Aerial shows construction underway on first section of Alaska Pipeline with mountains in background. 49 1:12:16 B08612 1:05:31 - 1:05:40 :09 11/26/1975 Sequence shows three MS of portion of Alaska Pipeline being laid by cranes with mountains in background at sunset. 50 1:12:26 A82108 1:05:50 - 1:05:58 :08 11/1/1972 Tilt up from sign reading "Sears Tower" to extreme low angle shot of Sear Tower under construction. 51 1:12:35 A82108 1:06:06 - 1:06:15 :09 11/1/1972 Zoom out from MS to WS of worker on steel beam of Sears Tower high above Chicago. 52 1:12:45 A68629A 1:06:23 - 1:06:32 :09 3/30/1971 Aerial above World Trade Center twin towers while under construction 53 1:12:55 A68629A 1:06:33 - 1:06:39 :06 3/30/1971 Sequence shows CU of worker high atop tower then WS of worker sitting on and surrounded by steel beams. 54 1:13:02 A68629A 1:06:40 - 1:06:44 :04 3/30/1971 Pan left and zoom out from WS of midtown Manhattan to worker in mask welding beams together atop tower. 55 1:13:07 A68629A 1:06:55 - 1:07:03 :08 3/30/1971 Wider aerial of twin towers of WTC under construction with Manhattan in background. 56 1:13:16 A68629B 1:07:39 - 1:07:46 :07 3/30/1971 Extreme low angle shot of WTC towers under construction with clouds in background. END 1:13:24 SNAP

SNAP Tape Number: SN0022 Tape Title: The Seventies-Iconic Events Date Completed: 10/18/06 Disasters, Weather, Science, Technology, Law, Crime, Cities, Scenics, Business, Industry, Government, Politics Clip # Running TC Assign # TC In TC Out Run Time Date Description (or AVSreel #) 1 1:00:00 305370O 2:40 - 2:53 :13 3/30/1979 WS of Three Mile Island cooling towers at sunset from across river. 2 1:00:14 305368B 7:37 - 7:46 :09 3/28/1979 Aerial of Three Mile Island. 3 1:00:24 305368B 17:28 - 17:38 :10 3/28/1979 Zoom out to WS of Three Mile Island cooling towers during day. 4 1:00:35 305368B 18:55 - 19:11 :16 3/28/1979 MS then pan right of control panel inside Three Mile Island. 5 1:00:52 305369A 16:50 - 17:05 :14 3/29/1979 WS panning left of Three Mile Island facilities 6 1:01:07 305373H 3:32 - 3:41 :09 4/3/1979 Sequence shows WS entrance to Three Mile Island Observation Center then WS of Center with cooling towers in background. 7 1:01:16 B29908 (Ord #41924) 1:34:14 - 1:34:44 :30 7/14/1977 Aerial of fires in Harlem during NYC Blackout of '77. 8 1:01:46 B29908 1:35:32 - 1:36:00 :28 7/14/1977 WS panning right of dark NYC skyline during blackout. Zoom in to lower Manhattan ending on WTC towers. 9 1:02:14 204101A (Crime #57) 12:48:15 - 12:49:00 :45 7/14/1977 Tracking left of people walking along darkened sidewalks near Times Square during blackout. 10 1:02:47 B29927A 1:00:13 - 1:00:28 :15 7/14/1977 Pan right across darkened NYC skyline at dusk during blackout. 11 1:03:01 B29927A 1:00:47 - 1:00:57 :10 7/14/1977 Handheld camera through Grand Central showing people sitting in the dark. 12 1:03:11 A87359A 1:01:07 - 1:01:29 :22 6/13/1973 Sequence shows VS deserted gas stations, "closed" sign in window. 13 1:03:33 A87359B 1:03:05 - 1:03:35 :30 6/13/1973 Sequence shows zoom out from gallon counter to man pumping gas into can. Zoom in from pump to sign "closed due to gas shortage." 14 1:04:03 A87371B 1:03:53 - 1:04:03 :10 6/8/1973 Sequence shows long shot of oil derrick in wheat field then CU of sign on gas pump reading "out of gas." 15 1:04:13 NYTL3537V 0:54 - 1:24 :30 1/1/1973 Sequence shows man filling gas tank with can, VS at gas station, oil truck, "no gas" sign. VS aerials of gas line. 16 1:05:34 204926A 5:45 - 5:55 :10 8/6/1978 WS small house with chain-link fence and sign in front yard. Zoom in to sign "disaster area- city failed us." 17 1:05:52 204926A 7:30 - 7:43 :12 8/6/1978 WS small house then zoom in to sign on front lawn "Love Canal Recipe.sickness & death." 18 1:06:04 204926A 15:27 - 15:40 :13 8/6/1978 CU of toxic Love Canal site then zoom out to fence and sign "No Trespassing. Dangerous Area." 19 1:06:21 206777 1:11 - 1:21 :06 10/11/1978 CU then zoom out of toxic waste at Love Canal. 20 1:06:28 206777 1:25 - 1:31 :10 10/11/1978 CU of stick stirring toxic sludge then zoom out to reveal a toxic puddle at Love Canal. 21 1:06:40 012895I 3:07 - 3:15 :08 7/4/1976 CU then tilt up to President Ford cutting cake for Bicentennial aboard USS Nashville. 22 1:06:48 NYTL12013L 5:34 - 5:40 :06 7/4/1976 MS of President Ford ringing bell aboard the USS Nashville for the Bicentennial. 23 1:06:55 SPTA1614D 5:29 - 5:40 :11 7/4/1976 Sequence shows Bicentennial fireworks, sign "1776-1976." 24 1:07:06 SPTA1614D 13:06 - 13:15 :09 7/4/1976 Sequence shows CU Statue of Liberty, tall ships pass in front of Statue. 25 1:07:15 SPTA1614D 14:39 - 14:50 :11 7/4/1976 Aerial of tall ships in New York Harbor with Manhattan skyline in background for Bicentennial. 26 1:07:26 SPTA1614D 53:45:00 - 53:55:00 :10 7/4/1976 Dark aerial above Statue of Liberty as it is surrounded by fireworks for Bicentennial celebration. 27 1:07:37 DCBB40329C 19:59:56 - 20:00:03 :05 5/2/1970 Sequence shows CUs children holding Earth Day signs. 28 1:07:43 DCBB40329C 20:02:22 - 20:02:28 :04 5/2/1970 CU of billowing white Earth Day flag in front of Washington Monument façade. 29 1:07:48 DCBB40329C 20:03:20 - 20:03:40 :19 5/2/1970 WS then zoom in on Earth Day march through Union Square in NYC. 30 1:08:08 DCBB40329A 23:03:05 - 23:03:15 :10 5/2/1970 WS then pan left over large crowd at Earth Day rally in Washington DC. 31 1:08:18 DCBB40329A 23:15:33 - 23:15:42 :09 5/2/1970 CU then zoom out from man holding sign in crowd reading "RIP 1990 AD" with picture of Earth to WS of crowd. 32 1:08:27 A61600 1:04:24 - 1:04:31 :05 4/22/1970 WS down closed 5th Avenue in NYC full of people walking for Earth Day. 33 1:08:33 NYBU14024M 9:19:38 - 9:19:54 :16 3/8/1973 Zoom out from CU of sunset through transparent American flag to WS of Pine Ridge Indians in silhouette on hill at Wounded Knee. 34 1:08:50 NYBU14024O 15:02:37 - 15:02:47 :09 3/8/1973 WS panning right of Indians standing on hill with brush fire burning foreground. 35 1:09:00 NYBU14024O 15:03:29 - 15:03:44 :13 3/8/1973 MS follows federal agents with hands in air being led to building by armed Indians on Pine Ridge reservation. 36 1:09:14 NYBU14024O 15:05:53 - 15:06:10 :17 3/8/1973 Sequence shows MS of Indians standing then WS panning right of crowd listening to AIM activist Russell Means speaking through megaphone. 37 1:09:31 A72336 (Crime #65) 1:02:05 - 1:02:25 :20 9/12/1971 Sequence shows various exteriors of Attica Prison with emergency vehicles and personnel in front of prison walls. 38 1:09:52 A72336 1:02:26 - 1:02:35 :08 9/12/1971 CU sign on prison wall reads "Attica Correctional Facility" then zoom out to WS of law enforcement standing at prison entrance. 39 1:10:01 A72623B (Crime #65) 1:34:19 - 1:34:34 :15 9/12/1971 Zoom out from CU to WS of families waiting anxiously in the rain for news. 40 1:10:16 A72281 1:04:39 - 1:04:52 :17 9/15/1971 WS through prison window of prisoners walking in group through courtyard. 41 1:10:29 NYTC3011A 1:18 - 1:48 :27 Sep-71 Tracking shot shows armed troops in formation then marching into Attica through front entrance. 42 1:10:57 NYTC3011A 1:52 - 2:00 :08 Sep-71 WS tilt down from prison wall to troops standing in formation in front of Attica entrance. 43 1:11:06 NYTC3011A 2:45 - 3:00 :15 Sep-71 Aerial over Attica Correctional Facility showing prison grounds surrounded by large wall. 44 1:11:25 300920K 4:08 - 4:18 :09 6/18/1977 Low-level tracking shot from the air flying alongside the Alaska (Alyeska) Oil Pipeline 45 1:11:35 300920I 0:14 - 0:22 :08 6/18/1977 Zoom out from CU of control panel diagram of Alaska Pipeline pump station to WS of technician monitoring diagram. 46 1:11:44 300920H 7:20 - 7:26 :06 6/18/1977 MS of starting area of the Alaska Oil pipeline then zoom to sign reading "The Start: Trans Alaska Pipeline." 47 1:11:51 B01928 1:05:01 - 1:05:07 :06 3/28/1975 CU then zoom out to WS of first section of Alaska Pipeline under construction with Alaskan scenery in background. 48 1:11:58 B01928 1:05:08 - 1:05:25 :17 3/28/1975 Aerial shows construction underway on first section of Alaska Pipeline with mountains in background. 49 1:12:16 B08612 1:05:31 - 1:05:40 :09 11/26/1975 Sequence shows three MS of portion of Alaska Pipeline being laid by cranes with mountains in background at sunset. 50 1:12:26 A82108 1:05:50 - 1:05:58 :08 11/1/1972 Tilt up from sign reading "Sears Tower" to extreme low angle shot of Sear Tower under construction. 51 1:12:35 A82108 1:06:06 - 1:06:15 :09 11/1/1972 Zoom out from MS to WS of worker on steel beam of Sears Tower high above Chicago. 52 1:12:45 A68629A 1:06:23 - 1:06:32 :09 3/30/1971 Aerial above World Trade Center twin towers while under construction 53 1:12:55 A68629A 1:06:33 - 1:06:39 :06 3/30/1971 Sequence shows CU of worker high atop tower then WS of worker sitting on and surrounded by steel beams. 54 1:13:02 A68629A 1:06:40 - 1:06:44 :04 3/30/1971 Pan left and zoom out from WS of midtown Manhattan to worker in mask welding beams together atop tower. 55 1:13:07 A68629A 1:06:55 - 1:07:03 :08 3/30/1971 Wider aerial of twin towers of WTC under construction with Manhattan in background. 56 1:13:16 A68629B 1:07:39 - 1:07:46 :07 3/30/1971 Extreme low angle shot of WTC towers under construction with clouds in background. END 1:13:24 SNAP

SNAP - The Seventies - Iconic Events Tape Number: SN0022 Tape Title: The Seventies-Iconic Events Date Completed: 10/18/06 Disasters, Weather, Science, Technology, Law, Crime, Cities, Scenics, Business, Industry, Government, Politics Clip # Running TC Assign # TC In TC Out Run Time Date Description (or AVSreel #) 1 1:00:00 305370O 2:40 - 2:53 :13 3/30/1979 WS of Three Mile Island cooling towers at sunset from across river. 2 1:00:14 305368B 7:37 - 7:46 :09 3/28/1979 Aerial of Three Mile Island. 3 1:00:24 305368B 17:28 - 17:38 :10 3/28/1979 Zoom out to WS of Three Mile Island cooling towers during day. 4 1:00:35 305368B 18:55 - 19:11 :16 3/28/1979 MS then pan right of control panel inside Three Mile Island. 5 1:00:52 305369A 16:50 - 17:05 :14 3/29/1979 WS panning left of Three Mile Island facilities 6 1:01:07 305373H 3:32 - 3:41 :09 4/3/1979 Sequence shows WS entrance to Three Mile Island Observation Center then WS of Center with cooling towers in background. 7 1:01:16 B29908 (Ord #41924) 1:34:14 - 1:34:44 :30 7/14/1977 Aerial of fires in Harlem during NYC Blackout of '77. 8 1:01:46 B29908 1:35:32 - 1:36:00 :28 7/14/1977 WS panning right of dark NYC skyline during blackout. Zoom in to lower Manhattan ending on WTC towers. 9 1:02:14 204101A (Crime #57) 12:48:15 - 12:49:00 :45 7/14/1977 Tracking left of people walking along darkened sidewalks near Times Square during blackout. 10 1:02:47 B29927A 1:00:13 - 1:00:28 :15 7/14/1977 Pan right across darkened NYC skyline at dusk during blackout. 11 1:03:01 B29927A 1:00:47 - 1:00:57 :10 7/14/1977 Handheld camera through Grand Central showing people sitting in the dark. 12 1:03:11 A87359A 1:01:07 - 1:01:29 :22 6/13/1973 Sequence shows VS deserted gas stations, "closed" sign in window. 13 1:03:33 A87359B 1:03:05 - 1:03:35 :30 6/13/1973 Sequence shows zoom out from gallon counter to man pumping gas into can. Zoom in from pump to sign "closed due to gas shortage." 14 1:04:03 A87371B 1:03:53 - 1:04:03 :10 6/8/1973 Sequence shows long shot of oil derrick in wheat field then CU of sign on gas pump reading "out of gas." 15 1:04:13 NYTL3537V 0:54 - 1:24 :30 1/1/1973 Sequence shows man filling gas tank with can, VS at gas station, oil truck, "no gas" sign. VS aerials of gas line. 16 1:05:34 204926A 5:45 - 5:55 :10 8/6/1978 WS small house with chain-link fence and sign in front yard. Zoom in to sign "disaster area- city failed us." 17 1:05:52 204926A 7:30 - 7:43 :12 8/6/1978 WS small house then zoom in to sign on front lawn "Love Canal Recipe.sickness & death." 18 1:06:04 204926A 15:27 - 15:40 :13 8/6/1978 CU of toxic Love Canal site then zoom out to fence and sign "No Trespassing. Dangerous Area." 19 1:06:21 206777 1:11 - 1:21 :06 10/11/1978 CU then zoom out of toxic waste at Love Canal. 20 1:06:28 206777 1:25 - 1:31 :10 10/11/1978 CU of stick stirring toxic sludge then zoom out to reveal a toxic puddle at Love Canal. 21 1:06:40 012895I 3:07 - 3:15 :08 7/4/1976 CU then tilt up to President Ford cutting cake for Bicentennial aboard USS Nashville. 22 1:06:48 NYTL12013L 5:34 - 5:40 :06 7/4/1976 MS of President Ford ringing bell aboard the USS Nashville for the Bicentennial. 23 1:06:55 SPTA1614D 5:29 - 5:40 :11 7/4/1976 Sequence shows Bicentennial fireworks, sign "1776-1976." 24 1:07:06 SPTA1614D 13:06 - 13:15 :09 7/4/1976 Sequence shows CU Statue of Liberty, tall ships pass in front of Statue. 25 1:07:15 SPTA1614D 14:39 - 14:50 :11 7/4/1976 Aerial of tall ships in New York Harbor with Manhattan skyline in background for Bicentennial. 26 1:07:26 SPTA1614D 53:45:00 - 53:55:00 :10 7/4/1976 Dark aerial above Statue of Liberty as it is surrounded by fireworks for Bicentennial celebration. 27 1:07:37 DCBB40329C 19:59:56 - 20:00:03 :05 5/2/1970 Sequence shows CUs children holding Earth Day signs. 28 1:07:43 DCBB40329C 20:02:22 - 20:02:28 :04 5/2/1970 CU of billowing white Earth Day flag in front of Washington Monument façade. 29 1:07:48 DCBB40329C 20:03:20 - 20:03:40 :19 5/2/1970 WS then zoom in on Earth Day march through Union Square in NYC. 30 1:08:08 DCBB40329A 23:03:05 - 23:03:15 :10 5/2/1970 WS then pan left over large crowd at Earth Day rally in Washington DC. 31 1:08:18 DCBB40329A 23:15:33 - 23:15:42 :09 5/2/1970 CU then zoom out from man holding sign in crowd reading "RIP 1990 AD" with picture of Earth to WS of crowd. 32 1:08:27 A61600 1:04:24 - 1:04:31 :05 4/22/1970 WS down closed 5th Avenue in NYC full of people walking for Earth Day. 33 1:08:33 NYBU14024M 9:19:38 - 9:19:54 :16 3/8/1973 Zoom out from CU of sunset through transparent American flag to WS of Pine Ridge Indians in silhouette on hill at Wounded Knee. 34 1:08:50 NYBU14024O 15:02:37 - 15:02:47 :09 3/8/1973 WS panning right of Indians standing on hill with brush fire burning foreground. 35 1:09:00 NYBU14024O 15:03:29 - 15:03:44 :13 3/8/1973 MS follows federal agents with hands in air being led to building by armed Indians on Pine Ridge reservation. 36 1:09:14 NYBU14024O 15:05:53 - 15:06:10 :17 3/8/1973 Sequence shows MS of Indians standing then WS panning right of crowd listening to AIM activist Russell Means speaking through megaphone. 37 1:09:31 A72336 (Crime #65) 1:02:05 - 1:02:25 :20 9/12/1971 Sequence shows various exteriors of Attica Prison with emergency vehicles and personnel in front of prison walls. 38 1:09:52 A72336 1:02:26 - 1:02:35 :08 9/12/1971 CU sign on prison wall reads "Attica Correctional Facility" then zoom out to WS of law enforcement standing at prison entrance. 39 1:10:01 A72623B (Crime #65) 1:34:19 - 1:34:34 :15 9/12/1971 Zoom out from CU to WS of families waiting anxiously in the rain for news. 40 1:10:16 A72281 1:04:39 - 1:04:52 :17 9/15/1971 WS through prison window of prisoners walking in group through courtyard. 41 1:10:29 NYTC3011A 1:18 - 1:48 :27 Sep-71 Tracking shot shows armed troops in formation then marching into Attica through front entrance. 42 1:10:57 NYTC3011A 1:52 - 2:00 :08 Sep-71 WS tilt down from prison wall to troops standing in formation in front of Attica entrance. 43 1:11:06 NYTC3011A 2:45 - 3:00 :15 Sep-71 Aerial over Attica Correctional Facility showing prison grounds surrounded by large wall. 44 1:11:25 300920K 4:08 - 4:18 :09 6/18/1977 Low-level tracking shot from the air flying alongside the Alaska (Alyeska) Oil Pipeline 45 1:11:35 300920I 0:14 - 0:22 :08 6/18/1977 Zoom out from CU of control panel diagram of Alaska Pipeline pump station to WS of technician monitoring diagram. 46 1:11:44 300920H 7:20 - 7:26 :06 6/18/1977 MS of starting area of the Alaska Oil pipeline then zoom to sign reading "The Start: Trans Alaska Pipeline." 47 1:11:51 B01928 1:05:01 - 1:05:07 :06 3/28/1975 CU then zoom out to WS of first section of Alaska Pipeline under construction with Alaskan scenery in background. 48 1:11:58 B01928 1:05:08 - 1:05:25 :17 3/28/1975 Aerial shows construction underway on first section of Alaska Pipeline with mountains in background. 49 1:12:16 B08612 1:05:31 - 1:05:40 :09 11/26/1975 Sequence shows three MS of portion of Alaska Pipeline being laid by cranes with mountains in background at sunset. 50 1:12:26 A82108 1:05:50 - 1:05:58 :08 11/1/1972 Tilt up from sign reading "Sears Tower" to extreme low angle shot of Sear Tower under construction. 51 1:12:35 A82108 1:06:06 - 1:06:15 :09 11/1/1972 Zoom out from MS to WS of worker on steel beam of Sears Tower high above Chicago. 52 1:12:45 A68629A 1:06:23 - 1:06:32 :09 3/30/1971 Aerial above World Trade Center twin towers while under construction 53 1:12:55 A68629A 1:06:33 - 1:06:39 :06 3/30/1971 Sequence shows CU of worker high atop tower then WS of worker sitting on and surrounded by steel beams. 54 1:13:02 A68629A 1:06:40 - 1:06:44 :04 3/30/1971 Pan left and zoom out from WS of midtown Manhattan to worker in mask welding beams together atop tower. 55 1:13:07 A68629A 1:06:55 - 1:07:03 :08 3/30/1971 Wider aerial of twin towers of WTC under construction with Manhattan in background. 56 1:13:16 A68629B 1:07:39 - 1:07:46 :07 3/30/1971 Extreme low angle shot of WTC towers under construction with clouds in background. END 1:13:24 SNAP

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

GULF OIL SPILL The Oversight and Investigations Subcommittee of House Energy and Commerce holds a hearing with Lamar Mckay, President and Chair of BP America Inc., Steve Newman, President and CEO, Transocean ltd., Timothy Probert, of Halliburton and others this part not on disc for the record and speak extemporaneously. This hearing shows what happens when political chants of drill, baby, drill evolve into the tragic reality of spill, baby, spill. And for all of my colleagues on the other side who wish that there were representatives of the administration here today, I would remind them that there was a joint congressional briefing held on May 4th where representatives from Interior, Homeland Security, Coast Guard, Commerce, EPA, Minerals Management Services, NOAA and the National Oceans Services did appear, gave us extensive briefings and were there 11:01:46 to answer questions to every member of Congress who chose to show up at that hearing. Well, probably one of the most profound statements made at that briefing was by Commandant Admiral Thad Allan from the Coast Guard, who gave a tremendous overview of what was going on as part of the federal government's response. And he made this statement in describing what's happening. "This is closer to Apollo 13 than to the Exxon Valdez." And, Mr. Chairman, I think that the fundamental issue of this hearing should be to try to figure out why that's the case because Apollo 13 happened 40 years ago, 240,000 miles away from the Earth with limited resources to try to solve the disaster that was occurring on that mission. That was 10 years into the manned space program. And, Mr. Chairman Waxman, the first submerged oil wells in salt water were drilled under the Santa Barbara channel in California in 1896. So why is this more like Apollo 13 than the Exxon Valdez? Why were we not better prepared to deal with the enormous environmental and safety risks caused by this massive explosion? Secretary Salazar said at that briefing, "This was supposed to be a fail-safe system." Obviously, it was not. And the question for all of us is why not. So as we listen to the witnesses and hear the latest information they have to share with us, these are the questions I want answers to: How did this happen? Why did this happen? Who is responsible? Most importantly, what have we learned? What are we, Congress, going to do and what are we prepared to do to ensure this never happens again? And finally, who will bear the cost? Because despite the assurances we received at that briefing from Secretary Salazar and others that B.P. has made repeated assurances to stand the full cost of this recovery, some of the actions that are taking place in response to this catastrophe would give us the indication otherwise. And that's why as we look at these serious issues, I look forward to the testimony of our witnesses and answering those questions. And I yield back the balance of my time. STUPAK: Thank you, Mr. Braley. Mr. Griffith for an opening statement, please? 11:04:21 GRIFFITH: I'd like to thank the chairman and ranking member for calling this important hearing today and the witnesses for taking time to come before our subcommittee to discuss the deep water Horizon oil spill. Before I begin, I would like to take a moment and offer my sincere condolences to the family and friends of those who lost their lives on the deep water Horizon. Please know that my thoughts and prayers are with you. We cannot achieve energy independence without assuming some risk. Whether it's nuclear, coal, oil or natural gas, the process of harnessing energy is inherently risky. Having said this, it is the role of the federal government and good corporate citizens to minimize this risk while working toward United States energy independence. Blocking future production will not protect America. It will simply cause us to be much more dependent on unfriendly sources of oil. The oil and gas industry employs hundreds of thousands of Americans, many in my home state of Alabama. We must continue to drill and avoid knee-jerk reactions to this accident. The oil and gas industry has a safety record that has been steadily improving over the years. And I have no doubt that what is learned from this incident will be incorporated into the future increase in safety. That being said, we must allow this investigation to go forward and ensure that Congress provide appropriate oversight. It is important to focus on not assuming -- assigning blame based on theories, but to allow the time to pass that is necessary for a thorough investigation. Once investigations are complete, it is vital that we learn lessons from this incident so that we can keep our workers and environment safe while continuing to produce our valuable oil and gas resources. Again, thank you for coming today. And I look forward to your testimony. I yield back the balance of my time, Mr. Chairman. STUPAK: Thank you, Mr. Griffith. Ms. DeGette for an opening statement, please? 11:06:14 DEGETTE: Thank you, Mr. Chairman. As Congress debates the role of a forward-looking energy plan, we're going to need to see what -- what part drilling expansion plays in development of that plan. And we're going to need to see what the causes of this tragic accident were because given the scope of this disaster, we cannot afford to vastly expand offshore drilling in the future if this type of disaster can be expected to occur, even as some on the other side say, on a rare basis. The damage in terms of environment and loss of human life is simply too great. Accidents on this scale raise innumerable questions about what went wrong. And usually, and probably in this case, there's no single answer or single point of blame. But as we attempt to determine the cause in order to prevent such tragedies in the future, two issues stand out in my mind. And the chairman raised both of them. The first one is what role did the cementing job play in the accident. The timing of the accident indicates that the cementing was likely a culprit as the accident occurred soon after the cement was injected into the well. This would not be the first time that cementing has caused problems in the Gulf of Mexico. According to a 2007 study by the Minerals Management Service, nearly half of all blowouts in the Gulf over the last 14 years are due to faulty cementing. In addition, poor cementing has been identified as the cause of the recent 2009 blowout at an offshore oil platform in Australia. Cementing has been a cause for concern in onshore drilling as well with ground water contamination incidents tied to improper cementing in my home state of Colorado and elsewhere. The second issue that this committee needs to probe further is the failure of the blowout preventer. This device is designed to be the fail-safe mechanism that will prevent tragedies such as this spill. Its failure is extremely troubling as it calls into question whether these devices can be trusted to function properly at offshore drilling locations. I know that we won't be able to identify the root cause of the accident today and that the investigation is still in its early stages. But fingerpointing will not solve this problem. It's in the interest of all of the witnesses to get to the bottom of this issue if they want to assure the American people that offshore drilling is a safe practice that we should actually expand farther. Frankly, I watched part of the hearing yesterday as well. And I was dismayed at the parsing of words by all parties yesterday in terms of liability and in terms of willingness to pay for these -- these tremendous costs. And so, I think that those responsible need to step up. They need to bear the costs. And they need to fix this technology because if they don't, we will not have expansion of offshore drilling until this committee and the U.S. Congress can be assured that it can be done in a safe and an environmentally and -- and human -- and in a way to save human life way. Otherwise, it simply won't be part of our plan. And -- and many of us don't object to offshore drilling. We support it where appropriate, but not if it cannot be done safely. Thank you, Mr. Chairman. STUPAK: Thank you, Ms. DeGette. Mr. Latta for an opening statement, please -- three minutes? 11:09:44 LATTA: Thank you, Mr. Chairman, Ranking Member Burgess. First and foremost, I also want to extend my heartfelt condolences to the families of those who have lost loved ones and those who have been injured. I'm also deeply saddened by the destruction caused by the recent oil spill in the Gulf. I want to commend the thousands of dedicated workers, the volunteers, military personnel who are currently in the Gulf responding to the spill to protect the shoreline and wildlife. The cleanup process from this spill will take months, if not years. As the marine board of investigation made up of the Mineral Management Service, MMS, and the Coast Guard convened yesterday to identify the factors leading to the explosion, loss of life, sinking and subsequent oil spill of the deep water Horizon, I look forward to what the investigation will render and what facts and recommendations will come forth. It's my understanding, Mr. Chairman, that over 42,000 wells have been drilled in the Gulf of Mexico since 1979 when the first deep water well was first drilled in the Gulf. Sixty percent of all the wells drilled in the Gulf are now deep water wells. And over 2,200 deep water wells have been drilled. As members of Congress, we must ensure that the United States continues its domestic energy production while also maintaining stringent environmental and safety regulations. We cannot become complacent when it comes to American lives and our natural resources. We need to ensure that the investigation into the deep water Horizon oil spill is thorough and those responsible -- those individuals responsible for this disaster are held accountable. We cannot afford to have a repeat of this kind of a disaster. As has already been noted, it is important to note that the oil and natural gas industry in America plays a vital role to our economy and supplies this country with millions of jobs. Most recent data, according to the American Petroleum Institute study, shows that this industry contributes more than a trillion dollars to the U.S. economy over a year. Industry (ph) now contributes over 229,000 jobs through oil and natural gas industry. And it is also important to note that we maintain these jobs, but we also need to maintain the safety of our hard-working Americans who are employed in this industry. As the ranking member has stated, I, too, would like to have witnesses from the Department of Interior, particularly the MMS and the United States Coast Guard. I hope that any future hearings in this committee on this subject will include government agencies that are at the forefront working on this issue. Finally, Mr. Chairman, I look forward to hearing from today's four witnesses, each of whom represents the company who will play a pivotal role in this investigation. And with that, Mr. Chairman, I yield back. Thank you. STUPAK: Thank you, Mr. Latta. Mr. Doyle for an opening statement, please? 11:12:29 DOYLE: Mr. Chairman, thank you for convening this hearing today. First, let me offer my condolences and prayers to the families and friends of the 11 people on the deep water Horizon rig that tragically lost their lives in the catastrophe three weeks ago. It's -- it's a sad, grave reminder of the level of risk and danger involved in deep water drilling. Economic and environmental concerns aside, we owe it to these families to fully and responsibly investigate what went wrong. After reading the testimony that you've all supplied, one thing seems quite clear. None of you before us today is prepared to accept full responsibility for what happened on April 20th. And though I'm very interested in learning whom is responsible, I don't believe it's the most pressing issue at hand today. Today what is most critical are the health, environmental and economic effects of this oil leak that continues to grow as this well gushes nearly 5,000 barrels of oil into the Gulf each day. And that is a conservative estimate. The unified command has quickly been activated to arrest and mitigate the effects of this oil spill on surrounding communities. Workers and volunteers are setting hundreds of thousands of feet of boom to protect coastlines, releasing massive volumes of disbursants (ph) to break up the oil and even skimming the water's surface to collect the oil. This vast response has been swift by most standards. And I commend each of your companies for its willingness to devote all the necessary resources to this effort. It is troubling, though, that in your eagerness to drill you told the Mineral Management Service in February of 2009 that you could handle a worst-case scenario of 162,000 barrels of oil from an uncontrolled blowout. Now you're dealing with 5,000 barrels a day, and the containment zone hasn't worked. A relief well is far from complete. The blowout preventers can't be activated. And you may need to resort to a jump shot. What I have a hard time understanding is how three weeks after the initial explosion there are not better solutions. By any standard, I think it's safe to say that each of your companies have done quite well over the last year. In fact, a quick review of your profits show that Transocean netted $677 million in profits, Halliburton, $206 million and B.P. rounded out with $6.1 billion in profits. And that's just for the first quarter of this year. DOYLE: With the success of this industry, both financially and in technological developments that allow us to drill 30,000 feet underground, how is it not possible that we haven't developed better technologies to plug a well? I mean, recent news reports explain a maneuver called a jump shot that involves shooting golf balls and rubber tires into a well to try and stop the leak. I had to ask my staff if that was really true or a misprint. I mean, surely with profits of $6.1 billion we can devote greater resources to more advanced technologies than golf balls and tires. I hope our examination here today and in the future months will help us understand how we can allow such high-risk drilling to go on without any sure-fire means for addressing a blowout. I hope that in response to this horrendous accident that you will all devote sizable resources to developing safer technologies and better regulations to protect your workers, our environment, our wildlife, and our domestic energy portfolio. Mr. Chairman, I yield back. STUPAK: Thank you, Mr. Doyle. Mr. Blackburn for an opening statement, please? 11:15:54 BLACKBURN: Thank you, Mr. Chairman. And I do want to welcome our witnesses. And thank you for the preparation you've put into planning to be here with us today. There is no doubt this is a terrible event, and it is one that concerns us. And I represent middle and west Tennessee, but I grew up in the Mississippi coastal plains. And I know very, very well the impact of the oil production industry on those communities and on the livelihood of those citizens. And also, I know how dependent they are on the gulf, also for wetlands and for seafood. And so this is a tragedy, and it does have so many tentacles, and, of course, the loss of life is very sad, and I know that it reaches deep within those families across the gulf. I think that what we -- my focus today -- what I would seek to do is to understand what happened and the cause, and to understand that without any bias. I think that while going on a search for villains can make for compelling TV, it is not going to put us on the path forward that we need, and that needs to be a pathway to sustainable and responsible drilling in the gulf. And we need to look at this, have an honest investigation so that we find opportunities for avoidance that may have been missed both by Washington and by the industry. I think that we also need to focus our attention on cleaning up the current spill, securing other wells until a long-term solution can be found. In this type business, risk cannot be 100 percent managed, and I understand that. And realizing that, I think it is maybe necessary to review contingency plans and to require operators to have prepositioned containment equipment to limit the impacts. Maybe that's something we need to talk about and look at today. This hearing is a first step to address these issues. Members of this panel are going to have questions for the witnesses on the protocols that are followed, the equipment that was used, and on what a proper course of action should be. So, Mr. Chairman, thank you. And to our witnesses, thank you for being here today. STUPAK: Thank you, Ms. Blackburn. Ms. Christensen for an opening statement, please? 11:18:35 CHRISTENSEN: Thank you, Mr. Chairman. And thank you, Chairman Stupak and Ranking Member Burgess, for holding this important hearing to examine the Gulf Coast oil spill disaster situation of grave and far-reaching magnitude which is likely to eclipse the Exxon Valdez spill of 20 years ago. It has been approximately three weeks since the explosion that caused the Gulf Coast oil spill, and many questions remain unanswered. What caused the explosion? Why did several safety mechanisms fail to prove successful? And the billion-dollar question: How can we stop the oil from spewing into the ocean and towards the shore, and how can we do it as soon as possible? I look forward to the testimony this morning, and I thank everyone for coming to yet another hearing. What I'm not anxious to hear is a blame game. There are investigations underway that will answer the questions of what went wrong and who and what was at fault. Someone speaks of collaborative efforts in their testimony, and to my mind, this is a tragic accident, which all companies, operator and contractors, probably share some responsibility, just as they all have a role in the response, clean-up and recovery, as well as and importantly making sure this does not happen again. We need to clarify what we do know, but the important issue now is how to stop the thousands of gallons of oil from continuing to poor out and how best we can work with all federal and private partners in the unified command to do just that. Despite the fact that we can never know anything because of the settlement, there are reports of severe health consequences in those who worked on the Exxon Valdez spill and others. And so I have grave concerns about the health and safety issues for the responders in this one and want to have the assurance that every precaution is being taken to prevent illness and disability in these workers. I'm also concerned about the hundred of other -- hundreds of other oil rigs that are functioning now, some in deep waters. Are we better prepared today to respond to an accident in these than we were on April 20th? What is being done to ensure that we are? And does BP meet what I understand are the higher permitting standards of the U.K. in their operations here in the United States? Of course, like my colleagues, I'm also concerned about the protection and preservation of the fisheries and other shoreline wildlife and the economic impact of those who depend on these resources for our livelihood and, of course, the loss of life. It's my hope that we'll leave this hearing better informed than we came in. I would also like to take this opportunity to express my sincere condolences to the families who lost loved ones in the April 20th tragedy and wish Godspeed to them, the survivors and their families, as they go through their recovery process. Thank you, Mr. Chairman. I yield back the balance of my time. STUPAK: Thank you. Mr. Welch for an opening statement, please, three minutes? 11:21:18 WELCH: Thank you very much, Mr. Chairman. I thank the witnesses for coming. And I, along with my colleagues, want to acknowledge the extraordinary loss of love and lives, of brave and hard-working people who died and perished in this accident. A couple of things. I took the trip to the Gulf Coast with the chairman and ranking member, Mr. Barton, some of my colleagues, Mr. Scalise and Mr. Melancon most significant among them, because they live with the folks whose livelihoods and whose sense of self depends on oil and on fishing. And the heartache that we saw was very powerful. When we flew out over the oil spill, the journey was in a Coast Guard plane that flew low and slow. And traveling out over that magnificent Mississippi Delta and looking down at all the wildlife that we could see, seeing the boats that wanted to be out fishing but couldn't be, going over the Chandeleur Islands, with that pristine white sand, knowing how much that landscape and how that economic livelihood is so cherished by Mr. Scalise's people, Mr. Melancon's people, and then seeing that first ribbon of an oil slick, that metallic blue, ominous sight that we saw a few miles off the Chandeleur Island, and then to see this magnificent blue sea become ink black, and then to get out over the oil site -- or the rig site where those 11 men perished, and to see this cancerous flame-orange glow on the sea that is the combination of the emulsifiers and the oil is just heartbreaking. And, gentlemen, you obviously share the concern about this, but you do have the responsibility. You've been well paid. You know, the head of BP, I think, made about $6 million last year, Mr. Newman, about $5.4 million, Mr. Probert, about $3 million, Mr. Cameron, about $8 million. The folks who are now cleaning up this oil spill -- we've got a picture. Mr. Burgess and I spoke to them. There a couple of women from New Orleans who come out and work for $12 bucks an hour. It's not just golf balls and the other things that people mentioned. It's hard-working people who are coming out, standing in the hot sun, and they'd like a bit of a raise, to tell you the truth. But the other thing that we saw that was so heartbreaking to me is fishermen, and their boats are not filled with fish. They're filled with these booms. And that's what these two women in the earlier picture, they load these boats with booms. And these fishermen are proud. They work incredibly hard. However hard you work, they work harder. And right now, they are in peril. The only thing that's keeping them going is that you're paying them to put booms out to try to keep the oil from the shore and the seabed. But at the end of the day, we know harm is going to be done. And the one question I want conclusively answered is whether BP, who has the ultimate responsibility here, is going to acknowledge specifically and categorically that it will not limit its liability to those fishermen and women in those tourist industries in that Gulf Coast, those people who've protected the environment that you will not stop your obligation at the $75 million limit that was established after Exxon Valdez. If they've been harmed by conduct that you're responsible for, then I want -- and I think all of us want -- an assurance that those fishermen and women, those folks in the tourist industry, and Steve Scalise's, Charlie Melancon's district will be made whole. Thank you, Mr. Chairman. I yield back. STUPAK: Thank you, Mr. Welch. Mr. Green, do you have an opening statement? You can be recognized for three minutes then. Take your time. 11:25:10 GREEN: (OFF-MIKE) Mr. Chairman, for holding the hearing today, and I'd like to welcome our panel. It's certainly under tragic circumstances that we convene here today, and my condolences out to the family who lost their lives in this accident, and also those who are injured. As a member of Congress from East Harris County in Houston, Texas, I have just literally hundreds of people who work offshore, offshore Texas, offshore literally all over the world. And along with our infrastructure, we produce -- still produce oil and natural gas in a very urban-suburban area, but we also have refineries and chemical plants who need that product that's being produced. This hearing today will be the first of many of the subject, and ultimately we'll determine what went wrong on the Deepwater Horizon rig and apply those lessons to reduce the chance of this ever happening again. However, we should continue to focus on stopping the spill and cleaning it up as soon as possible. And I look forward to hearing from our panel about the latest efforts on this front. In the wake of the tragic accident, many people are understandably concerned about the safety and environmental risk associated with offshore drilling, and drilling is certainly not risk- free. Neither is anything else. However, we should be careful not to rush to judgment on the issue on offshore drillings until we learned what went wrong in this particular case. In fact, this is the first major accident in the Gulf of Mexico since 1979. And that's almost 31 years. And we've used a lot of that product that's come out of the Gulf of Mexico to move our country for many years. Like after the Exxon Valdez incident, I anticipate Congress will respond in ways aimed at mitigating a similar accident from ever reoccurring, and I agree that we must take every possible precaution to guard against that happening again. The Energy Information Administration maintains that oil, natural gas, and coal will continue to make up the large majority of U.S. energy use in 2030 and beyond. If we reduce our dependence on foreign oil, we must safely and responsibly explore and produce more domestically and -- which is a very important issue, because unless we want to continue to import, I heard the other day we still import 55 percent of our oil right now from overseas. Canada, Mexico, but they're producing as much as they can. If we don't produce it in the Gulf of Mexico or offshore, then we're going to get it from Venezuela, we're going to get it from parts of the world that we may not have the best relationships with. So that's why we need to get it right and produce it domestically. I look forward to the testimony today. And, again, Mr. Chairman, I thank you for holding a hearing. I yield back my time. STUPAK: Thank you, Mr. Green. Mr. Ross for an opening statement? 11:27:52 ROSS: Thank you, Chairman Stupak, for holding today's hearing to examine the causes of the recent explosion of the Deepwater Horizon rig and the effects of this oil spill on both the Gulf Coast region and our nation's domestic energy policy. We all recognize this tragic event was an accident, and my thoughts and prayers go out to those who lost loved ones in the explosion and to the people along the Gulf Coast who have been adversely affected by this incident in an already tough economy. This accident is a wake-up call for our domestic oil and gas production, and we must take this opportunity to carefully examine our safety standards and protocols in deepwater drilling. America has led the world in technological innovation by putting a man on the moon, sending a robot to Mars, and decoding the human genome. Given all the knowledge and technology at our disposal, it amazes me that we could have an accident of this magnitude in 2010. What's even more concerning is that the companies responsible did not have the foresight to anticipate this accident or have an action plan ready or procedures in place that would have immediately remedied this situation and reduced the harmful consequences before it got out of control. After three weeks of oil still leaking into the gulf, it is clear these procedures were either not in place or did not work effectively. And I am pleased that we are now addressing this issue today in this hearing. However, I want to make it clear that this event does not diminish our need to continue domestic drilling as part of our overall diverse energy policy, but it does remind us of the risk associated and the safety standards that must be adhered to and improved to ensure this never happens again. I believe that now more than ever we should be investing in the most advanced 21st century technologies that will allow us to recover domestic oil and natural gas safely instead -- instead of sending half-a-trillion dollars a year overseas, much of which is ending up in the hands of those who want to harm us. I am hopeful that this tragic event and this hearing can be a learning experience to help us to examine our current policies for drilling offshore and, in the end, help secure America's domestic energy supply for future generations. And with that, Mr. Chairman, I yield back the balance of my time. 11:30:27 STUPAK: Thank you, Mr. Ross. We'll next hear from Ms. Sutton of Ohio for an opening statement. 11:30:38 SUTTON: Thank you, Chairman Stupak. And thank you for holding this very important hearing on the Gulf Coast oil spill. It's been three weeks since the first explosion on the Deepwater Horizon drilling rig -- three weeks, and we're still looking for answers. What caused the explosion? When will the oil leaks be closed? And what long-term impacts will this tragedy have on our families, small businesses, the environment, and local and state governments? The one thing we do know is that the companies involved in this oil well operation have failed. And these companies are pointing the finger at each other. These companies failed to have a plan to deal with this type of incident. The companies failed to implement adequate safety measures, and the companies have failed to find sufficient solutions to contain and mitigate this disaster. And while America waits for a resolution to this disastrous spill, 5,000 barrels of oil, over 200,000 gallons a day continue to pour out of the seabed into the Gulf. The wake of this oil spill is broad and sweeping. Eleven workers died. Seventeen were injured. The Gulf Coast states' economies are crippled. The livelihoods of workers, their families, and the small businesses that rely on the Gulf remain in question. And there is a great possibility that the Gulf Stream could carry this bill around the tip of Florida and to the Atlantic Coast. The ramifications of this disaster pose great questions about safety measures in deep water drilling and the priorities of BP, Halliburton and others. BP has stated that they would do whatever it takes to stop these leaks. But did BP and Transocean do whatever it took to prevent these leaks, this disaster, from occurring? BP and Transocean have been careful to say that the measures they are taking to end the leaks have never really been used before, and one example being the failure of the cofferdam placement over one of the leaks this past weekend, something that had never been attempted at such depths. BP and Transocean have proven that they did not have a response plan sufficient to meet the need in place for a Deepwater well spill. The technology for deepwater drilling has continued to advance through significant investment by oil companies, enabling them to access oil in places once thought impossible. But it is now apparent that the necessary investment to develop safety measures and contingencies for deepwater drilling were not adequately advanced. Safety must be put first, and investment in it must match, if the search for oil and drilling in our waters off of the shore are to continue. I remain troubled by the continuation of hazardous safety practices at BP's facilities, including fines imposed on their refinery in Toledo, Ohio. And while we wait for BP to stop these leaks, which could possibly take months, the future of our families, workers, small businesses and the environment remain at the mercy of the winds of the Gulf, and that is not how it should be. So I look forward to hearing the testimony today. 11:34:00 STUPAK: Thank you, Ms. Sutton. That concludes the opening statement of members of the subcommittee. I would note that members of the full committee who have been here -- Mr. Scalise, Mr. Melancon, Ms. Castor, Mr. Inslee was here, Ms. Capps -- I expect they'll probably stay and -- or come back during questions. I know members will be in and out today. It should also be noted that Congresswoman Sheila Jackson Lee is here from Houston, who's sitting in on today's proceedings. She's welcome to do so. And -- and welcome to the committee. That concludes the opening statement by members of the subcommittee. We have our first panel of witness before us. On our panel we have Mr. Steve Newman, who is president and CEO of Transocean Limited, which owned and operated Deepwater Horizon oil rig and the blowout preventer; Mr. Lamar McKay, who is the chairman and president of BP America, who is a responsible in the Gulf leak; Mr. Tim Probert, who is the president, Global Business Lines, chief health, safety, environmental officer at Halliburton, which did the cementing of the well; and Mr. Jack Moore, who is the director, president and CEO of Cameron International, which manufactured the blowout preventer used by Transocean with the Deepwater Horizon rig. It is the policy of this subcommittee to take all testimony under oath. Please be advised that you have the right under the rules of the House to be advised by counsel during your testimony. Do any of you wish to be represented by counsel? Mr. Newman? Mr. McKay? Mr. Probert? Mr. Moore? The witnesses indicate they do not. So therefore I'm going to ask you to please rise and raise your right hand to take the oath. 11:35:37 ALL EXECUTIVES RISE AND TAKE THE OATH Do you swear or affirm the testimony you're about to give is the truth, the whole truth, and nothing but the truth in the matter pending before this committee? Let the record reflect the witnesses applied in the affirmative. You're each now under oath. We will hear your five-minute opening statement. You may submit a longer statement for the record, and it would be included in the hearing record. Mr. Newman, if you don't mind, we'll start with you, please, if you'd start your opening statement? And thank you for being here. 11:36:06 NEWMAN: Chairman Waxman, Subcommittee Chairman Stupak, Chairman Emeritus, Ranking Members Barton and Burgess, other members of the committee, I want to thank you for the opportunity to speak with you this morning. My name is Stephen Newman, and I am the chief executive officer of Transocean Limited. Transocean is the leading offshore drilling contractor with more than 18,000 employees worldwide. I am a petroleum engineer by training, and I have spent years working with and on drilling rigs. I have been with Transocean for more than 15 years, and I am incredibly proud of the contributions our company has made to the energy industry during that time. Today, however, I said before you with a heavy heart. The last few weeks have been a time of great sadness and reflection for our company and for me personally. Nothing is more important to Transocean and to me than the safety of our crewmembers, and our hearts ache for the widows, parents and children of the 11 crewmembers, including nine Transocean employees, who died in the Deepwater Horizon explosion. These were exceptional man, and we are committed to doing everything we can to help their families as they cope with this tragedy. Over the last few weeks, we have also seen great acts of courage and kindness in our colleagues and in our communities. That courage and kindness was embodied by the 115 crewmembers who were rescued from the Deepwater Horizon and were as concerned about the safety of their colleagues as they were about themselves. It was embodied by the brave men and women of the U.S. Coast Guard, who conducted on-site operation search and rescue operations, and by the medical profession received the injured crewmembers they arrived on shore. And it is embodied by our friends and colleagues at Transocean and across the industry, who have rallied to help the families of the men were lost. This has been a very emotional period for all of us at Transocean, and it has also been a period of intense activity and effort. Immediately after the explosion, Transocean began working with BP and the unified command in the effort to stop the flow of hydrocarbons from the well. Our finest engineers and operational personnel have been working BP to identify and pursue options for stopping the flow as soon as possible. Our drilling rig, the Development Driller 3, is involved in drilling the relief well at the site, and our drill ship, the Discoverer Enterprise, is on location, participating in the crude oil recovery operations. A third Transocean drilling rig, the Development Driller 2, will be on location and the next day or two to also participate in those on-site operations. We will continue to support BP and the unified command in all of these efforts. At the same time we have also been working to get to the bottom of the question to which this committee, Congress and the American public desperately want an answer. What happened on the night of April 20th and how do we assure the American public that it will not happen again? Transocean has assembled an independent investigative team to determine the cause of these tragic events, a team that includes dedicated Transocean and industry experts. They will be interviewing people who have potentially helpful information and studying the operations and the equipment involved. Because the drilling process is a collaborative effort among many different companies, contractors and subcontractors, the process of understanding what led to the April 20th explosion and how to prevent such an accident in the future must also be collaborative. Our team is working side-by-side with others, including BP and governmental agencies, and these investigative efforts will continue until we have satisfactory answers. While it is still too early to know exactly what happened on April 20th, we do have some clues about the cause of the disaster. The most significant clue is that the events occurred after the well construction process was essentially finished. Drilling had been completed on April 17th, and the well had been sealed with casing and cement. For that reason the one thing we do know is that on the evening of April 20th, there was a sudden catastrophic failure of the cement, that casing, or both. Without a failure of one of those elements, the explosion could not have occurred. It is also clear that the drill crew had very little, if any, time to react. The initial indications of trouble and the subsequent explosions were almost simultaneous. What caused that sudden violent failure? Was the well properly designed? Were there problems with the casing or the seal assembly? Was the casing properly cemented and the well effectively sealed? Were all appropriate tests run on the cement and the casing? Were the blowout preventers damaged by the surge that emanated from the well beneath? Did the surge low degree into the BOP that prevented them from squeezing, crushing or shearing the pipe? These are some of the questions that need to be answered in the coming weeks and months. Until we know exactly what happened on April 20th, we cannot determine how best to prevent such tragedies in the future. But regardless of what the investigations uncover, ours is an industry that must put safety first. We must do so for the sake of our employees, for the sake of their families, and for the sake of people all over the world, who use, enjoy and rely on our oceans and waterways for their sustenance. And before I close, let me respond to Representative Burgess' specific question that arose during yesterday's Senate testimony. The modification referred to was the result of an agreement between representatives of BP and Transocean approximately five years ago. It was done at BP's request and at BP's expense. Thank you for the opportunity to speak here today. And I am happy to answer any questions. STUPAK: Thank you, Mr. Newman. Mr. McKay, your opening statement, please? 11:42:48 MCKAY: Chairman Waxman, Chairman Emeritus Dingell... STUPAK: You may want to pull that a little closer. MCKAY: Closer. Chairman Stupak, Ranking Member Burgess, members of the committee, my name is Lamar McKay, and I am president of BP America. We have experienced a tragic series of events. Three weeks ago tonight 11 people were lost in an explosion and fire aboard the Transocean Deepwater Horizon rig, and 17 others were injured. My deepest sympathies go out to the families and friends who have suffered. This is a terrible loss, and there is a huge, enormous issue in the Gulf Coast. Those communities, lives and livelihoods are being affected. Over the last few days, I've seen the response firsthand. I've seen the men -- men and women on the front line. There is absolutely a deep and steadfast resolve to do all we humanly can to stop the leak, contain the spill, clean up the damage, and deal with the -- the impact, economic and environmental. As a responsible party under the Oil Pollution Act, we will carry out our responsibilities to mitigate the environmental and economic impact. And to be very clear, that -- just to be very clear, the 75 million is irrelevant, and we can talk about that later. Our efforts are part of a unified command that was established within hours of the accident, and it provides a structure, a structure for our work with the Department of Homeland Security, Department of Interior, as well as Defense, Energy, OSHA and other federal agencies, as well as affected state and local governments and Transocean. We are grateful for the involvement of President Obama and members of his cabinet and for the leadership, direction and resources they've provided. We're also grateful to the governors, congressional members, state agencies, local agencies, local communities of Mississippi, Alabama, Louisiana, Florida and Texas. I want to underscore that the global resources of BP are committed to this effort and have been from the outset. Nothing is being spared. Everyone understands the enormity of what lies ahead and is working to deliver an effective response at the wellhead, on the water and on the shoreline. MCKAY: Before I -- before I describe our around-the-clock efforts to respond to this series of events, I want to reiterate our commitment to find out what happened. Understanding -- understanding what happened and why it happened is a complex process. We are cooperating with the joint investigation by the Departments of Homeland Security and Interior and investigations by Congress. In addition, B.P. has commissioned an internal investigation whose results we plan to share so we can all learn from these terrible events. I want to be clear, it's inappropriate to draw any conclusions before all the facts are known. As we speak, our investigation team is locating and analyzing data, interviewing available witnesses, and reviewing and assessing evidence. And today I think it's important to give you and the American public an idea of the questions we're asking. There are really two key sets of questions here, and we're actively exploring both of those. First, what caused the explosion and fire onboard Transocean's Deepwater Horizon? Second, why did Transocean's blowout preventer, the key failsafe mechanism, fail to shut in the well and release the rig? With respect to the first question, the key issue we're examining is how hydrocarbons could have entered the wellbore. B.P., as a leaseholder and operator of the well, hired Transocean to drill the well and fulfill their safety responsibilities. We do not know yet precisely what happened on the night of April 20th, but what we do know is that there were anomalous pressure test readings prior to the explosion. These could have raised concerns about well control prior to the operation to replace mud with seawater in the well in preparation for setting the cement plug. Through our investigation, we hope to learn more about what happened and what was done in the hours before the explosion. Apart from looking at the causes of the explosion, we are also examining why the blowout preventer, the BOP as it is called, did not work as the ultimate failsafe to seal the well and prevent an oil spill. Clearly, the BOP remains a critical piece of equipment throughout all operations to ensure well control up until the time the well is sealed and a cement plug is -- is placed and the well is temporarily abandoned. We will continue full-speed ahead with our investigation, keeping all lines of inquiry open until we find out what happened and why. At the same time, we are absolutely fully engaged 24 hours a day, every second of the day, in efforts to respond to these events. Our subsea efforts to stop the flow of oil and secure the well involve four concurrent strategies. Activating the blowout preventer would be the preferred course, since it stops or diminishes the flow at the source. Unfortunately, this has proved unsuccessful so far. We are working on a containment system which will place enclosures or containment chambers atop the leak and conduct flow to a ship at the surface. There have been technical challenges, obviously. Engineers are now working to overcome these challenges. We've begun to drill the first of two relief wells designed to intercept and permanently secure the original well. We began drilling the first relief well on May 2nd and expect to begin drilling the second relief well at the end of this week. This operation could take approximately three months. A fourth effort, known as a top kill, uses a tube to inject a mixture of multi-sized particles directly into the blowout preventer to cap the well. It is a technique that's been used industry-wide across the world, but never in 5,000 feet of water. On the open water, we've got 300 response vessels mobilized, 1 million feet of boom placed, 2.4 million feet sourced, and the supply chain geared up to sustainable boom what areas are necessary. We're also attacking this spill with biodegradable dispersants that were pre-approved by the Coast Guard and the EPA. Those are being applied by planes and boats. We've also developed and tested a technique to apply dispersant at the leak point on the seabed. We've done a 24-hour -- done three tests of that, and we're waiting on the EPA to decide if we can permanently -- or continuously use that dispersant, which we hope we can. To protect the shoreline, we're implementing what the U.S. Coast Guard has called the most massive shoreline protection effort ever mounted in history. Thirteen staging areas are in place, and over 4,000 volunteers have already been trained. We recognize there are both environmental and economic impacts. B.P. will pay all necessary clean-up costs and is committed to paying legitimate claims for other loss and damages caused by the spill. Tragic and unforeseen as the accident was, we must not lose sight of why B.P. and other companies are operating in the offshore, including the Gulf of Mexico. The Gulf provides one in three barrels of oil produced in the United States, a resource our economy requires. B.P. and the entire energy industry are under no illusions about the challenge we face. We know that we will be judged -- we will be judged by our response to this crisis. We intend to do everything in our power to bring this well under control to mitigate the environmental impact of the spill and to address economic claims in a responsible manner. No resource available to this company will be spared. I can assure you that we and the entire oil and gas industry will learn from this terrible event. We will emerge from it stronger, smarter and safer. Thank you for the opportunity to appear before you today. I'd be happy to answer your questions. In addition, as you requested, I brought a technical expert with me, Mike Zanghi, vice president of drilling. And on the modifications, Congressman Burgess, I was referring to yesterday, I need to know if the modifications that we encountered on interventions while this response is going on, were those the only modifications that were made in 2005? STUPAK: Thank you, Mr. McKay. We should note that Ms. Myrick, a member of the full committee, is with us. I'm sure she'll have some questions when we get to the question period. Thanks for joining us. Mr. Probert, your opening statement, please, sir? 11:51:47 PROBERT: Chairman Stupak, Ranking Member Burgess, and members of the subcommittee, thank you for inviting Halliburton to testify. We'll continue to work with you and your staff to collect factual data that will enable an understanding of what took place and what we collectively can do to ensure that domestic oil and gas production is undertaken in the safest, most environmentally responsible manner possible. The catastrophic blowout and the spread of oil in the Gulf of Mexico are tragic events for everyone. On behalf of the entire Halliburton family, we extend our heartfelt sympathy to the families, the friends, and colleagues of the 11 people who lost their lives and those workers who were injured in the tragedy. As we hope you could appreciate, neither Halliburton nor any other party can make a judgment or offer any credible theories about what happened until, at a minimum, the well-owner has interviewed everyone on the Deepwater Horizon, to recreate the daily log of activities for April the 20th. In the absence of that information, no one should rush to judgment. However, there are three things that could be said with certainty: one, that the casing shoe was cemented 20 hours prior to the tragic accident; two, it's premature to say that the root cause of the event was a catastrophic failure of the casing or cement; and, three, had the BOP functioned as expected, this catastrophe would not have happened. With respect to the Mississippi Canyon 252 well, Halliburton and many other companies were contracted by the well-owner to provide products and services. Halliburton provided cementing, mud logging, directional drilling, and real-time data acquisition and data delivery services for key personnel onboard the rig and onshore. However, contrary to press reports, Halliburton did not provide casing, wellheads, or seal assemblies. Since the blowout, Halliburton has been working at the direction of the well-owner to assist in the efforts to bring the well under control. This includes intervention support to help secure the damaged well and assistance in drilling two relief wells. At the outset, I need to emphasize that Halliburton as a service provider to the well-owner is contractually bound to comply with the well-owner's instructions on all matters relating to the performance of all work-related activities. The construction of a deepwater is a complex operation involving the performance of many tasks by many parties. While the well-owner's representative has ultimate authority for planning and approving activities on the rig, the drilling contractor performs and directs much of the daily activity. Cement can be used to isolate formation fluids, to prevent movement of these fluids between formations, and to bond and support the steel casing. There are many external factors which affect the design and execution of a cement job, and these include the variability of the whole geometry, the relative location of hydrocarbon zones, and the hydrocarbon content of associated drilling fluids. The centralizer placement on the production casing, the drilling fluid conditioning program prior to cementing, and the cement slurry and placement design use of this well were implemented as directed by the well-owner. By design, no continuous cement column was installed throughout the entire wellbore. Approximately 20 hours prior to the catastrophic loss of well control, Halliburton had completed the cementing of the ninth and final production casing string in accordance with the well program, which would have been approved by the MMS. Following the placement of the cement slurry, the casing seal assembly was set in the casing hanger. As required by the MMS and as directed by the well-owner, a positive pressure test was then conducted to demonstrate the integrity of the production casing string. The results of the positive tests were reviewed by the well- owner, and the decision was made to proceed with the well program. The next step was the performance of a negative pressure test, conducted by the drilling contractor at the direction of the well- owner and in accordance with MMS requirements. This tests the integrity of the casing seal assembly. We understand that Halliburton was instructed to record drill pipe pressure during this test. After being advised by the drilling contractor that the negative tests had been completed, Halliburton's cementing personnel were placed on standby. We understand that the drilling contractor then replaced the dense drilling fluid in the riser with lighter seawater prior to the planned placement in the final cement plug. The drilling fluid was transferred directly to a workboat. The final cement plug would have been installed inside the production string and enabled the planned temporary abandonment of the well, but prior to reaching that point in the well -- in the well construction plan that Halliburton personnel would have been directed to set the plug, the catastrophic incident occurred. Halliburton's confident that the cementing work on the Mississippi Canyon 252 well was completed in accordance with the requirements of the well-owner's well construction plan. To amplify -- and before closing -- and to amplify respectfully to a comment made earlier by Representative DeGette, the MMS did, indeed, conduct a survey which indicated that cementing was a factor in 18 or 39 well-controlled incidents over an approximately 10-year period in the Gulf of Mexico. I should point out that only one of these incidents occurred in water depths over 400 feet. Thank you for the opportunity to share Halliburton's views. I look forward to answering your questions. STUPAK: Thank you. Mr. Moore, your opening statement, please, sir. 11:57:40 MOORE: Chairman Stupak, Ranking Member Burgess, Chairman Waxman, Chairman Emeritus Dingell, Ranking Member Barton, members of the committee, good morning. I'm Jack Moore, president and CEO of Cameron International Corporation, and I appreciate the opportunity to be here for this hearing on what is truly a tragic event. One word about our company, 18,000 employees in more than 300 locations worldwide. We have worked with our customers for over 120 years to design, manufacture and service products that help them safely find, develop, produce and transport oil and gas. The Cameron product used by the Deepwater Horizon is called a blowout preventer, or a BOP, a product that Cameron actually invented in the 1920s. A BOP allows our customers to control the pressure in a well while being drilled. We have over 400 BOP stacks operating offshore, and over 130 are operating in deep water. Each individual BOP stack is made up of components specified by our customers and is configured to their specific operating specifications and is manufactured and tested in accordance with industry standards. Our BOPs have a very long history of reliable performance, including performance in some of the harshest operating conditions in the world. The BOP stack on the Deepwater Horizon was operating in 5,000 feet of water. As soon as Cameron was notified of the Deepwater Horizon incident, we mobilized a team of our best drilling system specialists to work with B.P. and Transocean to assist in shutting this well in. Since that time, we have been working around the clock to assist in this effort, and we will continue to provide all of the necessary resources at our disposal until this well is shut in. It is far too early to draw conclusions about how the incident occurred, but every one of us at Cameron, myself, and I think this industry is mindful of the tragic loss of life that occurred and likewise the impact to the environment and to the commercial impact that it will have. Cameron and I understand the need to discover the facts relating to what went wrong and to do all that is possible to prevent the occurrence of such an incident in the future. I'm accompanied today by my colleague, David McWhorter, who is our vice president of engineering and quality for our drilling systems group, to be at your disposal for -- for answers. Thank you for letting us be here today. 12:00:29 STUPAK: Thank you, Mr. Moore. It should be noted for -- for members that we asked each of our witnesses to have a technical expert with them to help in answering any technical questions.

NOTES: COL PRINT - SECOND SHOT DATE OF 05/20/00 LOCATION: EGYPT & ISRAEL. TITLE: MIDEAST ECONOMY SERVICED DATE: 05/22/79 NO: LNC 13466 / 7 / 9. DATE SHOT: 05/19/00 LENGTH: 110 FEET SECONDS: 2:56 SOUND: NATSOF DATE OF ARRIVAL: FILM SHOWS: REPORT ON ECONOMIC SITUATION IN EGYPT IN THE AFTERMATH OF THE PEACE TREATY WITH ISRAEL WHICH RESULTED IN AN ARAB BOYCOTT OF EGYPT. ALSO SHOWS ECONOMIC SITUATION IN ISRAEL AFTER THE PEACE TREATY WHICH PLACES HEAVIER RELIANCE ON UNITED STATES' SUPPORT: LEAD IN: EGYPT IS MOUNTING AN ECONOMIC COUNTER-OFFENSIVE AGAINST THE OPPONENTS OF ITS TREATY WITH ISRAEL BY FREEZING THE ASSETS OF ITS PARTNERS IN THE ARAB ORGANISATION FOR INDUSTRIALISATION - SAUDI ARABIA, THE UNITED ARAB EMIRATES AND QATAR. THIS MOVE IS IN DIRECT RETALIATION AGAINST THEIR DECISION TO DISSOLVE THE HOLDING COMPANY SET UP IN 1975 TO MANUFACTURE ARMAMENTS. THE ARAB ORGANISATION FOR INDUSTRIALISATION, WHICH WAS JOINTLY FUNDED BY THE FOUR COUNTRIES, USING EGYPTIAN LAND AND LABOUR, HAS BEEN THE BEST EXAMPLE OF PAN-ARAB INDUSTRIAL COOPERATION AND IRONICALLY THE FIRST MAJOR VICTIM OF ARAB HOSTILITY TO THE PEACE TREATY WITH ISRAEL. BUT IT IS GENERALLY FEARED THAT THE EGYPT-ISRAEL PEACE TREATY WILL MEAN A STRAIN ON THE ECONOMIES OF BOTH THE COUNTRIES. IN ISRAEL, INFLATION IS ALREADY RUNNING AT 50 PER CENT A YEAR AND IS EXPECTED TO GO UP TO 60. RECENTLY, YERUHAM MESHEL, ISRAEL'S LABOUR LEADER WARNED THAT THE PEACE TREATY IS BOUND TO WIDEN DISPARITIES IN INCOME. MOREOVER, THE ENORMOUS EXPENDITURES REQUIRED TO TRANSFER ISRAELI MILITARY INSTALLATIONS FROM THE SINAI TO THE NEGEV ARE ALMOST CERTAIN TO INCREASE INFLATION AND STRAIN THE COUNTRY'S RESOURCES, ACCORDING TO A NUMBER OF LEADING ECONOMISTS. FOR EGYPT, THE TREATY HAS MEANT GROWING ISOLATION FROM THE ARAB WORLD AND EVEN MORE CRITICAL DEPENDENCE ON THE US AND OTHER INDUSTRIALISED NATIONS. AT THE MOMENT, FOR BOTH EGYPT AND ISRAEL, AFTER THREE DECADES OF WAR AND INTERIM PERIODS OF SHAKY CEASEFIRES, MILITARY PREPAREDNESS SEEMS MORE MANAGEABLE THAN ECONOMIC PROBLEMS: FEET R/SECS 10 16 GV MARKET SCENES IN CAIRO AND GENERAL STREET SCENES (3 SHOTS) 15 24 GV PAN OF BANK ALONG NILE 25 40 MLS FARMERS WORKING IN CROP FIELDS (2 SHOTS) 35 56 GV VEGETABLE AND FRUIT MARKET (2 SHOTS) 40 1.04 MS INTERIOR OF IRON AND STEEL FACTORY 45 1.12 GV EXTERIOR BANK 50 1.20 MS INTERIOR BANK 55 1.28 GV LORRIES WITH LOADED GOODS DRIVING ALONG HIGHWAY ISRAEL 60 1.36 MS BEGIN AND OTHERS OUT OF CABINET MEETING TO DEBATE ECONOMY COMMENTARY: THE MOST COMPLEX TASK FACING EGYPTIAN PRESIDENT ANWAR SADAT AND THE EGYPTIAN GOVERNMENT IN 1979 WAS SIMULTANEOUSLY TO CARRY OUT MAJOR AND URGENTLY NEEDED ECONOMIC REFORMS, TO ACHIEVE A COMPREHENSIVE MIDDLE EAST PEACE SETTLEMENT AND TO MAINTAIN SATISFACTORY LINKS WITH THE FINANCIALLY MOST IMPORTANT MEMBERS OF THE ARAB WORLD. THESE THREE TASKS WERE INTERDEPENDENT AND FAILURE IN ONE WOULD SPELL DISASTER IN THE OTHER TWO. EVEN SO, WHEN TOUGH POLITICAL AND ECONOMIC SANCTIONS VOTED BY 18 ARAB LEAGUE STATES TO "PUNISH" SADAT WERE DISMISSED BY EGYPT AS "PSYCHOLOGICAL WARFARE". DEPUTY FOREIGN MINISTER BUTROS GHALI THEN SAID, "EGYPT IS NOT ISOLATED, NEITHER POLITICALLY NOR ECONOMICALLY, AND WE WILL KEEP THIS PEACE MOMENTUM". BUT THE SITUATION IS GRAVE. EGYPT HAS TO IMPORT 40 PER CENT OF ITS FOOD, EVEN THOUGH 42 PER CENT OF ITS WORKFORCE IN EMPLOYED IN AGRICULTURE. ITS POPULATION OF 40 MILLION IS GROWING BY 1 MILLION A YEAR. IT HAS NO FOREIGN CURRENCY RESERVES, CRITICALLY LIMITED RESOURCES, A DECAYING INFRASTRUCTURE AND URGENTLY NEEDS A PROGRAMME OF ECONOMIC REFORM. THEORETICALLY, EGYPT SHOULD NOT BE SERIOUSLY AFFECTED BY TRADE EMBARGO WITH OTHER ARAB COUNTRIES SINCE THIS ACCOUNTS FOR ONLY 6 PER CENT OF ITS TOTAL, AND IT IS A NET OIL EXPORTER. BUT IT IS NOT IMMEDIATELY CLEAR WHERE EGYPT WILL TURN TO OBTAIN PARTICULAR GRADES OF OIL, IT STILL NEEDS TO IMPORT FOR DOMESTIC CONSUMPTION. BUT WITH THESE PERSISTENT ECONOMIC UNCERTAINTIES IN EGYPT, THE SITUATION IN ISRAEL NO BETTER. THE ISRAELI CABINET MET RECENTLY TO DISCUSS THE ECONOMIC CRISIS ENSUING FROM THE PEACE TREATY, BUT FAILED TO REACH A MAJOR DECISION ON THE BIGGEST PROBLEM - INFLATION. FEET R/SECS 75 2.00 MS INTERIOR OF SUPERMARKET IN TEL AVIV (4 SHOTS) 85 2.16 MS PEOPLE IN BANK (2 SHOTS) 90 2.24 GV APARTMENT BLOCKS 100 2.40 MS PETROL STATION (3 SHOTS) 110 2.56 GV TRACKING SHOT OF BUILDINGS COMMENTARY: IN ISRAEL, THE COST OF LIVING HAS RISEN BY 8.7 PER CENT IN APRIL OF THIS YEAR ALONE, WHILE THE ISRAELI POUND IS BEING STEADILY DEVALUED AT 10 PER CENT A MONTH. OPINION POLLS INDICATE THAT INFLATION IS A GREATER CONCERN IN THE COUNTRY THAN ANY FOREIGN POLICY ISSUE. RECENTLY, THE PRICE OF BASIC FOODS ROSE BY 25 PER CENT, PROVOKING A ONE DAY STRIKE THAT WAS FAR MORE SPIRITED THAN A DMONSTRATION BY SPARSE CROWDS CELEBRATING THE PEACE TREATY SIGNING. THE SITUATION HAS CREATED A CLASS OF SPECULATORS - RICH AND NOT- SO RICH, AND TAX EVASION HAS REACHED STUNNING PROPORTIONS. OTHERS FEAR THAT INFLATION IS ERODING THE FABRIC OF ISRAELI SOCIETY BY WIDENING THE GAP BETWEEN RICH AND POOR AND DIVERTING INVESTMENT FROM PRODUCTIVE ENTERPRISES TOWARDS SPECULATION. ISRAEL HAS ALWAYS BEEN PRONE TO INFLATION. MILITARY AND DEFENSE-RELATED EXPENDITURES REPRESENT 40 PER CENT OF THE GOVERNMENT BUDGET AND ARE THE LARGEST FACTOR. INDUSTRIALISTS COVER 40 PER CENT OF THEIR INVESTMENTS WITH GOVERNMENT LOANS, ON WHICH INTEREST IS LESS THAN THE RATE OF INFLATION. THESE NEW APARTMENTS NOW COST THREE TIMES AS MUCH AS THEY DID TWO YEARS AGO - EVEN SO, THERE IS A BOOM IN BUILDING, FINANCED BY LOANS. ALTHOUGH NO ISRAELI WOULD SERIOUSLY ASSERT THAT PEACE WITH EGYPT, THE LARGEST ARAB NEIGHBOUR, IS TOO EXPENSIVE, IT CANNOT BE DENIED THAT IT HAS WORSEND BOTH THE ECONOMIES, ALREADY SHAKEN BY THREE DECADES OF WAR.

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 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 BE PERMITTED TO QUESTION WITNESS 10:55:46 FOLLOWING QUESTIONS BY MEMBERS OF THE SUBCOMMITTEE. 10:55:52 WITHOUT OBJECTION, THE CHAIR HEARS NO OBJECTION FROM ANY OF 10:55:57 THE MEMBERS OF THE SUBCOMMITTEE. SO IT IS SO ORDERED. 10:56:07 IT IS THE POLICY TO SWEAR YOU IN BEFORE YOU TESTIFY. 10:56:13 SO I WOULD ASK EACH OF YOU TO PLEASE RISE AND RAISE YOUR RIGHT 10:56:21 HANDS. DO YOU EACH SOLEMNLY SWEAR TO 10:56:23 TELL THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH? 10:56:30 LET THE RECORD REFLECT THAT EACH OF THE WITNESSES RESPONDED IN 10:56:34 THE AFFIRMATIVE. NOW, WE TURN TO OUR FIRST 10:56:42 WITNESS, MR. REX TILLERSON. MR. TILLERSON IS THE CHAIRMAN 10:56:46 AND THE CHIEF EXECUTIVE OFFICER OF THE EXXONMOBIL CORPORATION. 10:56:52 HE IS ALSO A MEMBER OF THE BUSINESS ROUNDTABLE AND THE 10:56:56 AMERICAN PETROLEUM INSTITUTE. WE WELCOME YOU, MR. TILLERSON, 10:57:01 PLEASE BEGIN WHEN YOU ARE READY. THANK YOU, CHAIRMAN MARKEY. 10:57:05 RANKING MEMBER UPTON, MEMBERS OF THE SUBCOMMITTEE. 10:57:08 OF THE MANY ISSUES ON THE ENERGY AGENDA, NONE IS MORE PRESSING 10:57:12 THAN THE ACCIDENT AND THE SPILL UNFOLDING IN THE GULF OF MEX 10:57:16 KOEMPLT AS SOMEONE WHO HAS SPENT HIS ENTIRE CAREER IN THE ENERGY 10:57:21 INDUSTRY, IT TRULY IS DEEPLY SANDING TO SEE THE LOSS OF LIFE, 10:57:26 THE DAMAGE TO ENVIRONMENTAL SENSITIVE AREAS, THE EFFECT ON 10:57:30 THE ECONOMIC LIVELIHOOD HDS AND THE LOSS OF THE PUBLIC INTEREST 10:57:33 IN THE ENERGY INDUSTRY THAT HAS RESULTED. 10:57:37 CLEARLY THIS INCIDENT AND RESPONSE WILL HAVE IMPORTANT 10:57:40 CONSEQUENCES FOR THE ENVIRONMENT, FOR THE CITIZENS 10:57:41 AND BUSINESSES OF THE GULF COAST AND FOR OUR NATION'S ENERGY 10:57:47 POLICY. IT IS ESSENTIAL THAT WE 10:57:48 UNDERSTAND THE EVENTS THAT LED TO THIS UNPRECEDENTED ACCIDENT. 10:57:54 AND TAKE CORRESPONDING STEPS TO FURTHER REDUCE THE LIKELIHOOD OF 10:57:57 A SIMILAR EVENT EVER OCCURRING AGAIN. 10:57:59 AN EXPERT IMPARTIAL AND THOROUGH APPROACH TO UNDERSTANDING WHAT 10:58:03 HAPPENED IS CRUCIAL BECAUSE THIS INCIDENT REPRESENTS A DRAMATIC 10:58:07 DEPARTURE FROM THE INDUSTRY NORM IN DEEP WATER DRILLING. 10:58:11 UNDERSTANDING THE FACTS SURROUNDING THIS INCIDENT IS 10:58:13 CRITICAL TO INFORMING THE LONG-TERM POLICY AND THE 10:58:18 OPERATIONAL RESPONSE. WE ARE EAGER TO LEARN WHAT 10:58:20 OCCURRED AT THIS WELL THAT DID NOT OCCUR AT THE OTHER 14,000 10:58:26 DEEP WATER WELLS THAT HAVE BEEN SUCCESSFULLY DRILLED AROUND THE 10:58:30 WORLD STMPLT CRITICAL WE UNDERSTAND EXACTLY WHAT HAPPENED 10:58:33 IN THIS CASE. BOTH THE DRILL WELL DESIGN AND 10:58:37 OPERATING PROCEDURES AND THE EXECUTION OF THE DRILLING PLANS 10:58:40 WHICH LED TO SUCH SEVERE CONSEQUENCES. 10:58:43 WE NEED TO KNOW IF THE LEVEL OF RISK TAKEN WENT BEYOND THE 10:58:46 INDUSTRY NORMS. BASED ON THE INDUSTRY'S 10:58:51 EXTENSIVE EXPERIENCE, WHAT WE DO KNOW IS WHEN YOU PROPERLY DESIGN 10:58:55 WELLS FOR THE RANGE OF RISK ANTICIPATED, FOLLOW ESTABLISHED 10:59:00 PROCEDURES, BUILD IN LAYERS OF REDUNDANCY, PROPERLY INSPECT AND 11:00:00 REX TILLERSON: IN THE EARLY 1990s WE BEGAN DEVELOPMENT OF OUR OPERATIONS 11:00:06 INTEGRITY MANAGEMENT SYSTEM, A RIGOROUS REGIME OF 11 SEPARATE 11:00:10 ELEMENTS THAT MEASURES AND MITIGATES SAFETY, SECURITY, 11:00:13 HEALTH AND ENVIRONMENTAL RISK. IT IS SIGNIFICANT THAT THE FIRST 11:00:17 ELEMENT OF OIMS IS MANAGEMENT LEADERSHIP AND ACCOUNTABILITY. 11:00:23 THIS MANAGEMENT SYSTEM APPLIES TO EVERY OPERATION WE UNDERTAKE. 11:00:27 IT IS OUR COMMON GLOBAL LANGUAGE FOR SAFETY AND ACCOUNTABILITY 11:00:31 AND WHEN WE DO HAVE INCIDENTS, WE SEEK TO LEARN FROM THEM SO WE 11:00:36 CONTINUOUSLY IMPROVE OUR PERFORMANCE AND THIS SYSTEM. 11:00:39 IT IS SYSTEM WHICH REQUIRES INTERNAL AND EXTERNAL ASSESSMENT 11:00:43 OF EACH BUSINESS UNIT'S PROGRESS TOWARDS COMPLYING WITH ALL OF 11:00:47 THE 11 ELEMENTS. WITH RESPECT TO DRILLING, 11:00:51 EXXONMOBIL HAS DRILLED ALMOST 8,000 WELLS WORLDWIDE OVER THE 11:00:55 LAST TEN YEARS. OF THESE, 262 HAVE BEEN IN DEEP 11:01:04 WATER INCLUDING THE GULF OF MEXICO. 11:01:07 THE STANDARDS DICTATE OUR APPROACH TO DRILLING AS THEY DO 11:01:10 FOR ALL OF OUR OTHER OPERATIONS. WE HAVE DOCUMENTED STANDARDS FOR 11:01:15 EQUIPMENT AND WELL DESIGN. WE UTILIZE PROPRIETARY 11:01:18 TECHNOLOGY TO PREDICT PRESSURES AND MODEL RESOURCE FLOW AND WE 11:01:24 CAREFULLY ANALYZE THAT INFORMATION TO BOTH UNDERSTAND 11:01:26 AND REDUCE THE RISK. WE ENSURE EVERYONE ON BOARD THE 11:01:31 RIG CONTRACTORS INCLUDED KNOW THEIR ROLES AND RESPONSIBILITIES 11:01:36 AND THAT ALL OPERATIONS MUST BE IN COMPLIANCE WITH EXXONMOBIL'S 11:01:40 EXPECTATIONS AND STANDARDS. AND WE TEST THIS KNOWLEDGE 11:01:44 THROUGH REGULAR DRILLS AND EXERCISES. 11:01:47 STICKING TO THIS SYSTEM HAS REQUIRED TO US MAKE SOME 11:01:49 DIFFICULT DECISIONS. WE DO NOT PROCEED WITH 11:01:53 OPERATIONS IF WE CANNOT DO SO SAFELY. 11:01:56 THE AMERICAN PEOPLE HAVE SHOWN THEIR SUPPORT FOR DEEP WATER 11:01:59 DRILLING BUT THEY EXPECT IT TO BE DONE SAFELY AND IN AN 11:02:03 ENVIRONMENTALLY SENSITIVE WAY. THEY HAVE SUPPORTED IT BECAUSE 11:02:06 THEY UNDERSTAND IT IS IMPORTANT. IN THE GULF OF MEXICO IT 11:02:10 ACCOUNTS FOR ABOUT 24% OF U.S. OIL PRODUCTION. 11:02:14 OIL AND GAS ACTIVITY IN THE GULF INCLUDING DEEP WATER DRILLING 11:02:18 ACCOUNTS FOR APPROXIMATELY 170,000 DIRECT AND INDIRECT 11:02:26 JOBS. WORLDWIDE IT'S ESTIMATED TO 11:02:27 EQUAL IN A FEW YEARS THE ENTIRE PRODUCTION OF SAUDI ARABIA. 11:02:31 AND IT IS A VITAL PART OF AN INDUSTRY THAT SUPPORTS MORE THAN 11:02:37 9 MILLION FULL AND PART-TIME AMERICAN JOBS AND ADD $1 11:02:47 TRILLION TO OUR GROSS DOMESTIC PRODUCT. 11:02:48 WE CAN SECURE THIS TRUST IF WE TAKE THE TIME TO LEARN WHAT 11:02:51 HAPPENED AND DEVELOP OUR RESPONSE APPROPRIATELY TO ENSURE 11:02:55 THAT EVERY PARTICIPATE PANTS ACTS RESPONSIBLY, LEARNS THE 11:02:59 RIGHT LESS SCIENCE AND UPHOLDS THE HIGHEST STANDARDS. 11:03:01 THE AMERICAN PEOPLE DESERVE NOTHING LESS. 11:03:04 THANK YOU. WE THANK YOU, MR. TILLERSON. 11:03:07 OUR NEXT WITNESS IS MR. JOHN WATSON, MR. WATSON IS THE 11:03:12 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CHEVRON 11:03:19 CORPORATION. HE IS A DIRECTOR AND MEMBER OF 11:03:20 THE EXECUTIVE COMMITTEE OF THE AMERICAN PETROLEUM INSTITUTE AS 11:03:23 WELL AS A MEMBER OF THE NATIONAL PETROLEUM COUNCIL. 11:03:25 WE WELCOME YOU, MR. WATSON. THANK YOU, CHAIRMAN MARKEY. 11:03:29 IF YOU COULD TURN ON YOUR MICROPHONE AND MOVE IT IN A 11:03:33 LITTLE CLOSER, MR. WATSON. THANK YOU, MR. CHAIRMAN. 11:03:36 RANKING MEMBER, UPTON. AGAIN, JUST MOVE IT IN A 11:03:40 LITTLE BIT CLOSER. OKAY. 11:03:42 VERY GOOD. THANK YOU, MR. CHAIRMAN AND 11:03:45 RANKING MEMBER UPTON. MY NAME IS JOHN WATSON I DO LEAD 11:03:49 CHEVRON. AS WE MEET TODAY, THE TRAGEDY IN 11:03:52 THE GULF OF MEXICO DOES CONTINUE TO UNFOLD. 11:03:55 OUR THOUGHTS ARE WITH THE FAMILIES WHO LOST LOVED ONES. 11:04:00 WORKERS WHO WERE INJURED AND COMMUNITIES THAT ARE DEALING 11:04:05 WITH THE ECONOMIC AND ECOLOGICAL DAMAGE. 11:04:09 FOR CHEVRON, THIS TRAGEDY IS VERY PERSONAL. 11:04:12 OUR EMPLOYEES, NEW PEOPLE WHO DIED ON THE DEEP WATER HORIZON, 11:04:17 MORE THAN 13,000 CHEVRON EMPLOYEES LIVE AND WORK IN THE 11:04:21 GULF REGION, WE HAVE A VERY PERSONAL STAKE OPERATING SAFELY 11:04:26 BAUGH IT IS OUR HOME, TOO. FOR OUR INDUSTRY, THIS IS A 11:04:32 HUMBLING EXPERIENCE. THE AMERICAN PEOPLE EXPECT THAT 11:04:34 THE ENERGY WE NEED TO BE PRODUCED SAFELY AND RELIABLY AND 11:04:39 THAT DID NOT HAPPEN HERE. THIS MORNING, I'LL FOCUS MY 11:04:43 COMMENTS ON WHAT CHEVRON DID IMMEDIATELY FOLLOWING THE 11:04:46 ACCIDENT AND WHY I BELIEVE DEEP WATER DEVELOPMENT CAN BE DONE 11:04:49 SAFELY OF AFTER THE DEEP WATER HORIZON ACCIDENT, CHEVRON 11:04:52 PROVIDED FULL SUPPORT TO THE RESPONSE. 11:04:54 WE DEPLOYED EXPERTS TO ASSIST BP AND ADVISE THE COAST GRD ON 11:04:58 MARINE TRANSPORTATION PLANNING. WE'VE ALSO BEEN WORK WITH 11:05:02 COMMUNITIES AND OKAY, ACROSS THE GULF REGION. 11:05:05 WE HELPED LEAD THE JOINT INDUSTRY TASK FORCE WHICH MADE 11:05:08 RECOMMENDATIONS TO THE DEPARTMENT OF THE INTERIOR TO 11:05:10 RAISE INDUSTRY STANDARDS TO AN EVEN HIGHER LEVEL. 11:05:13 A MAJORITY OF THESE STANDARDS ARE ALREADY EMBEDDED IN 11:05:17 CHEVRON'S OPERATIONS. WITHIN HOURS, CHEVRON HELD 11:05:21 SAFETY STANDDOWNS ON RIGS AROUND THE WORLD TO REVIEW DRILLING 11:05:24 PROCESSES AND PROCEDURES. WE EXAMINED OUR BLOWOUT 11:05:28 CONTINGENCY PLANS AND SCRUTINIZED OUR DRILLING AND 11:05:30 COMPLETION POLICIES. WE ALSO STRESS THE 11:05:33 RESPONSIBILITY THAT EVERY SINGLE CHEVRON EMPLOYEE AND CONTRACTOR 11:05:37 HAS AND THAT'S THE AUTHORITY TO STOP WORK IMMEDIATELY IF THEY 11:05:41 SEE ANYTHING UNSAFE. AT CHEVRON, WE REWARD PEOPLE WHO 11:05:46 EXERCISE THIS AUTHORITY. AT CHEVRON, ONE GOAL OVERRIDES 11:05:51 ALL OTHERS, MAKING SURE EVERYONE GOES HOME SAFE EVERY DAY. 11:05:55 WE HAVE MULTIPLE SYSTEMS TO PREVENT A TRAGEDY LIKE THE DEEP 11:05:59 WATER HORIZON. OUR DRILLING POLICIES AND 11:06:02 PROCEDURES ARE RIGOROUS. WE REQUIRE CONTINUOUS TRAINING, 11:06:06 WE CERTIFY OUR DRILLING PERSONNEL TO ENSURE THEY ARE 11:06:09 QUALIFIED TO MANAGE UNUSUAL CIRCUMSTANCES AND WE VERIFY THE 11:06:13 CONTRACTORS HAVE THE SKILLS TO EXECUTE WELL CONTROL. 11:06:17 OUR SBERNL REVIEW CONFIRMED WHAT OUR REGULAR AUDITS HAVE TOLD US, 11:06:22 CHEVRON'S DEEP WATER DRILLING AND WELL CONTROL PRACTICES ARE 11:06:25 SAFE AND ENVIRONMENTALLY SOUND. SINCE OUR FIRST YEAR OF DEEP 11:06:29 WATER EXPLORATION IN 1987, WE HAVE DRILLED DEEP WATER WELLS 11:06:36 AROUND THE WORLD BUT WE KNOW THAT WE CAN ALWAYS LEARN AND 11:06:39 IMPROVE. SO WE WELCOME ANY NEW STANDARDS 11:06:41 AND SAFEGUARDS THAT IMPROVE SAFETY AND PREVENT FUTURE 11:06:46 ACCIDENTS. TO THAT END, WE MUST ACT QUICKLY 11:06:49 TO IMPLEMENT THE RECOMMENDATION MADE BY THE JOINT INDUSTRY TASK 11:06:53 FORCE TO ENSURE THAT ALL COMPANIES ARE RATE OPERATING 11:06:55 WITH THE SAME HIGH STANDARDS OF SAFETY AND RELIABILITY. 11:06:59 CHEVRON WILL ACCEPT ANY NEW STANDARD AND ADOPT NEW STANDARDS 11:07:02 THAT DOESN'T ALREADY APPLY. WE MUST ALSO EXPEDITE THE WORK 11:07:06 OF TWO NEW INDUSTRY TASK FORCES, ONE FOCUSED ON SUB SEA WELL 11:07:10 CONTROL AND THE OTHER ON SPILL RESPONSE AND CLEANUP. 11:07:15 WE ALSO COMMITTED TO WORK WITH THE PRESIDENT'S INDEPENDENT 11:07:18 COMMISSION. WE'LL CONTRIBUTE TO IMPROVE 11:07:20 SAFETY IN EVERY WAY THAT WE CAN. NOW WE MUST RESTORE THE 11:07:25 COUNTRY'S CONFIDENCE IN DEEP WATER DRILLING. 11:07:27 I BELIEVE THE INDEPENDENT INVESTIGATION WILL SHOW THAT 11:07:30 THIS TRAGEDY WAS INDEED PREVENTIBLE. 11:07:33 THIS IS NOT A TRADE-OFF OF ENERGY FOR SAFETY. 11:07:36 I STRONGLY BELIEVE THAT RESPONSIBLE DEEP WATER 11:07:40 DEVELOPMENT MUST CONTINUE. AMERICA NEEDS THE ENERGY AND WE 11:07:42 CAN PRODUCE THAT ENERGY SAFELY. OUR NATION WOULD LOSE MORE THAN 11:07:47 IT HAS ALREADY LOST IF THIS ACCIDENT BECOMES THE BASIS FOR 11:07:50 REVERSING THE MANY BENEFITS OF OFFSHORE DEVELOPMENT. 11:07:55 TODAY PRODUCTION IN THE GULF OF MEXICO ACCOUNTS FOR 14% OF OUR 11:07:59 NATURAL GAS, 12% OF OUR DOMESTIC OIL SUPPLY. 11:08:03 GULF OF MEXICO PRODUCTION IS ALSO A FOUNDATION OF LOCAL 11:08:07 ECONOMIES, PROVIDING SIGNIFICANT JOB, ECONOMIC DEVELOPMENT AND 11:08:11 REVENUE. THE DEEP WATER HORIZON TRAGEDY 11:08:14 REINFORCES THAT ALL COMPANIES MUST OPERATE WITH THE SAME HIGH 11:08:17 STANDARDS OF SAFETY AND RELIABILITY. 11:08:20 IT'S CLEAR THAT FAILURE TO DO SO DOES HAVE DIRE CONSEQUENCES. 11:08:24 MR. CHAIRMAN, WE MUST LEARN FROM THIS ACCIDENT, WE MUST MAKE SURE 11:08:27 IT NEVER HAPPENS AGAIN. MY COMPLIMENT TO YOU IS THAT 11:08:30 CHEVRON WILL DO EVERYTHING IN ITS POWER TO SEE THAT IT DIDN'T. 11:08:34 THANK YOU. THANK YOU, MR. WATSON. 11:08:36 OUR NEXT WITNESS IS MR. JAMES MULVA, THE CHAIRMAN AND CHIEF 11:08:44 EXECUTIVE OFFICER OF THE CONOCO-PHILLIPS COMPANY, HE IS 11:08:49 ALSO A MEMBER OF THE NATIONAL PET TROEM YUM COUNCIL AND HAS 11:08:52 SERVED AS CHAIRMAN OF THE NATIONAL PETROLEUM INSTITUTE. 11:08:55 WE WELCOME YOU, WHENEVER YOU FEEL COMFORTABLE, MR. PLEASE 11:09:00 BEGIN. THANK YOU, CHAIRMAN MARKEY, 11:09:04 RANKING MEMBER UPTON AND COMMITTEE MEMBERS, THANK YOU FOR 11:09:06 THE OPPORTUNITY TO APPEAR BEFORE YOU THIS MORNING. 11:09:09 ALL OF US AT CONOCO-PHILLIPS EXTEND OUR CONDOLENCES TO THE 11:09:15 FAMILY AND FRIENDS OF THOSE LOST ON THE DEEP WATER HORIZON. 11:09:21 THOUGHTS AND PRAYERS OF THOSE IMPACT BY THIS SPILL. 11:09:23 THE DEEP WATER HORIZON SINCE A MATTER OF NATIONAL YOU ARE JEN 11:09:27 SICHLT AS AMERICANS WE HAVE A LONG HISTORY OF JOINING TOGETHER 11:09:30 IN TIMES OF NEED. WE THEN WORK TO FIND SOLUTIONS 11:09:33 THAT ARE IN OUR NATIONAL INTEREST. 11:09:37 SO IN THAT SPIRIT AND IN SUPPORT OF THE PEOPLE ALONG THE GULF 11:09:41 COAST WHOSE LIVES AND LIVELIHOODS HAVE BEEN AFFECTED 11:09:45 CONOCO-PHILLIPS IS PROVIDING MANPOWER, MATERIAL AND RESOURCES 11:09:49 TO RESPONDERS AND THE EMERGENCY PERSONNEL THERE. 11:09:53 WE WILL DO SO UNTIL THE SPILL IS CONTAINED AND IN THE AFFECTED 11:09:56 AREAS HAVE BEEN RESTORED. WE ARE NOT IN A POSITION TO KNOW 11:10:02 ABOUT WHAT WENT WRONG AT THE DEEP WATER HORIZON. 11:10:05 THE COMPANIES INVOLVED AND THE REGULATORS CERTAINLY WILL DO 11:10:09 THAT. BUT AS AN INDUSTRY, WE MUST 11:10:11 COMMIT OURSELVES TO LEARNING LESSONS FROM THIS TRAGEDY 11:10:15 ENSURING NOTHING LIKE DEEP WATER HORIZON EVER HAPPENS AGAIN. 11:10:19 SO ANY NECESSARY CHANGES UNDERTAKEN BY CONGRESS, THE 11:10:22 EXECUTIVE BRANCH AND INDUSTRY SHOULD BE ONE ELEMENT FOR 11:10:26 BROADER NATIONAL ENERGY POLICY. THAT'S A POLICY THAT RECOGNIZES 11:10:29 THAT WE HAVE A ROBUST OIL AND GAS INDUSTRY THAT GENERATES 11:10:35 VITAL U.S. JOBS AS WELL AS SUBSTANTIAL STATE AND FEDERAL 11:10:38 REVENUE FROM TAX AND ROYALTY PAYMENTS. 11:10:42 ONE THAT GUARANTEES THE SECURITY OF THE ENERGY THAT DRIVES OUR 11:10:46 NATIONAL ECONOMIC WELL BEING. IT'S ALSO A POLICY THAT ASSURES 11:10:50 THE SAFE ENVIRONMENTALLY RESPONSIBLE PRODUCTION OF ALL 11:10:54 FORMS OF ENERGY OOLG WITH ITS WISE USE. 11:10:57 THESE ARE ESSENTIAL TO A HEALTHY AND TO A GROWING ECONOMY. 11:11:01 ANOTHER KEY ELEMENT OF A COMPREHENSIVE ENERGY POLICY 11:11:05 SHOULD BE FEDERAL ACTION TO ADDRESS GLOBAL CLIMATE CHANGE. 11:11:08 AS YOU ARE AWARE, CONOCO-PHILLIPS SUPPORTS PASSAGE 11:11:11 OF A COMPREHENSIVE FEDERAL LAW ESTABLISHING A CLEAR AND 11:11:16 TRANSPARENT PRICE FOR CARBON. A FEDERAL LEGISLATIVE FRAMEWORK 11:11:20 AT A MINIMUM MUST PROVIDE A PROGRAM TO MANAGE TRANSPORTATION 11:11:25 EMISSIONS, ONE THAT PROTECTS CONSUMERS WHILE ENCOURAGING 11:11:28 INVESTMENT IN LOWER CARBON TECHNOLOGIES. 11:11:32 IT ALSO MUST ADDRESS THE ENERGY INTENSIVE AND TRADE EXPOSED 11:11:36 NATURE OF OUR DOMESTIC REFINERIES. 11:11:38 IT MUST CREATE NEW LEGISLATIVE MECHANISMS SPECIFICALLY FOR 11:11:42 REGULATING GREENHOUSE GAS EMISSIONS. 11:11:46 THIS WOULD BE IN PLACE OF THE CLEAN AIR, CLEAN WATER AND 11:11:49 ENDANGERED SPECIES ACTS AN OTHER FEDERAL AND STATE PROGRAMS. 11:11:53 IT MUST RECOGNIZE ESSENTIAL ROLE OF NATURAL GAS IN ACHIEVING A 11:11:59 LOWER CARBON ENERGY FUTURE. LASTLY, IN ORDER TO ACHIEVE OUR 11:12:04 NATIONAL ENERGY GOALS, U.S. ENERGY POLICY MUST CREATE, 11:12:08 SUPPLY DIVERSITY, PROMOTE TECHNOLOGICAL INNOVATION, 11:12:12 ENCOURAGE ENERGY EFFICIENCY AND ENVIRONMENTAL STEWARDSHIP. 11:12:17 TODAY, OUR COUNTRY IS WORK TOWARD AN ENERGY FUTURE 11:12:20 FEATURING A BROAD PORTFOLIO OF ENERGY SOURCES AND THESE WILL 11:12:24 INCLUDE RENEWABLE SOURCES AND CLEANER FOSSIL FUELS. 11:12:29 BROADER CONSERVATION AND NEW, MORE EFFICIENT ENERGY 11:12:32 TECHNOLOGIES. EACH. 11:12:33 THOSE APPROACHES WILL PROVIDE A PART OF THE LONG-TERM SOLUTION. 11:12:37 AS A NATION, WE'RE ON OUR WAY, WE WILL GET THERE BUT IT IS 11:12:40 GOING TO TAKE US SOME TIME. UNTIL THEN, WE MUST FULFILL 11:12:45 AMERICA'S PRESSING ENERGY NEEDS, IN SHORT PROVIDING FUEL THAT 11:12:49 ENABLES PEOPLE TO TRAVEL, TO WORK AND BACK. 11:12:52 MOVES GOODS AROUND THE WORLD. POWERS THE LIGHTING, HEAT, 11:12:56 ELECTRICITY AND MACHINERY IN WHICH OUR HOMES, FACTORIES AND 11:12:59 HOSPITALS DEPEND AND PROVIDES THE FUEL AND FERTILIZER THAT 11:13:03 ENABLES TO US FEED A GROWING POPULATION. 11:13:05 IN DOING THIS, EVEN WITH STRONG GROWTH AND RENEWABLE SOURCE, 11:13:09 CARBON BASED FUELS MUST KEEP CARRYING THE ENERGY LOAD FAR 11:13:14 INTO THE FUTURE. UNFORTUNATELY WE HAVE NATURAL 11:13:17 GAS. IT'S ONE OF THE MOST IMPORTANT 11:13:20 DOMESTIC RESOURCE AVAILABLE FOR USE BY OUR COUNTRY IN REACHING 11:13:23 ITS CLIMATE AND ENERGY SECURITY OBJECTIVES, IT'S CLEAN, IT'S 11:13:27 AFFORDABLE, IT'S RELIABLE, ABUNDANT AND AVAILABLE HERP AT 11:13:31 HOME. WE BELIEVE THAT THROUGH A 11:13:33 NATIONAL SPIRIT OF SHARED COMMITMENT TO A MUTUALLY 11:13:37 BENEFICIAL OUTCOME, AMERICA CAN ACHIEVE ITS ENERGY GOALS. 11:13:41 AS A COMPANY, CONOCO-PHILLIPS IS COMMITTED TO DOING SO. 11:13:45 SO THANK YOU VERY MUCH FOR THIS OPPORTUNITY. 11:13:47 I LOOK FORWARD TO RESPONDING TO QUESTIONS YOU MAY HAVE. 11:13:49 THANK YOU, MR. MULVA. OUR NEXT WITNESS IS MR. OWED 11:13:58 DEM, THE PRESIDENT OF THE SHELL OIL COMPANY. 11:14:02 HE'S ALSO ON THE BOARD OF THE AMERICAN PETROLEUM INSTITUTE. 11:14:06 PLEASE BEGIN WHEN YOU ARE READY. THANK YOU, CHAIRMAN MARKEY. 11:14:10 I AM MARVIN ODUM, PRESIDENT SHELL OIL COMPANY. 11:14:18 I WOULD LIKE TO ACKNOWLEDGE THE SITUATION IN THE GULF OF MEXICO 11:14:20 ON THE MINDS OF EVERY AMERICAN. ALL OF US ARE DEEPLY SADDENED BY 11:14:24 THE DEEP WATER HORIZON EXPLOSION AND AFTERMATH. 11:14:27 A TERRIBLE TRAGEDY FOR THE FAMILIES OF THOSE WHO LOST THEIR 11:14:30 LIVES OR WERE INJURED. MANY OF OUR EMPLOYEES AND 11:14:33 CUSTOMERS LIVE ALONG THE GULF COAST AND FEEL THAT PAIN 11:14:38 FIRSTHAND. GETTING TO THE ROOT CAUSE OF 11:14:40 THIS INCIDENT IS CRITICAL. LIKE YOU, WE WANT TO KNOW WHAT 11:14:43 WENT WRONG WITH THIS BELL WEL AND THE EXECUTION OF THIS WELL 11:14:48 DESIGN. AS AN INVESTIGATION FINDINGS 11:14:51 WERE AVAILABLE, SHELL WILL INCORPORATE ANY LEARNINGS INTO 11:14:55 OUR OPERATIONS WORLDWIDE. SINCE THE BEGIN, SHELL HAS MADE 11:14:58 EXPERTS EQUIPMENT AND FACILITIES AVAILABLE TO BP AND THE 11:15:02 RESPONDERS YOU INCLUDING OUR ROBERT TRAINING CENTER OUTSIDE 11:15:04 OF NEW ORLEANS AS A SITE FOR UNIFIED COMMAND. 11:15:09 WE TOOK IMMEDIATE STEPS TO REINFORCE THE SAFETY OF OUR 11:15:13 OPERATIONS GLOBALLY INCLUDING A REVIEW OF OPERATING PRACTICES, 11:15:16 TESTING FREQUENCIES AND TRAINING PROTOCOLS. 11:15:20 WE REMAIN CONFIDENT IN OUR EXPERTISE AND PROCEDURES AND 11:15:24 THAT COMES FROM FOCUS ON FIVE CRITICAL AND INTEGRATED AREAS TO 11:15:29 ENSURE SAFE WELL DESIGN AND DRILLING IN THE DEEP WATER. 11:15:32 AND THOSE ARE OUR GLOBAL STANDARDS, OUR RIGOROUS TRAINING 11:15:36 AND CERTIFICATION OF THE ENGINEERS, A SAFETY CASE 11:15:42 APPROACH WITH OUR CONTRACTORS TO IDENTIFY THE RISK AND MITIGATE 11:15:45 THOSE RISKS. ENSURING ROW BUST AND MULTIPLE 11:15:49 BEAR YERTS IN OUR WELLS AND 24/7 REMOTE MONITORING BY SKILLED 11:15:56 PROFESSIONALS WHO PROVIDE IMMEDIATE SUPPORT ON CRITICAL 11:15:59 ISSUES SUCH AS WELL PRESSURE CHANGES. 11:16:03 SAFETY AND ENVIRONMENTAL PROTECTION ARE AND ALWAYS WILL 11:16:05 BE SHELL'S TOP PRIORITIES. WE WELCOME THE RECOMMENDATIONS 11:16:09 OUTFLIND SECRETARY SALAZAR'S MAY 27th REPORT TO THE PRESIDENT AND 11:16:14 THE JUNE NOTICE TO LEASEHOLDERS. MANY ELEMENTS ARE ALREADY 11:16:18 ALIGNED WITH OUR GLOBAL PRACTICES AND WE WILL WORK TO 11:16:21 INCORPORATE ALL OF THEM. IN THE CONTEXT OF THIS TRAGEDY, 11:16:27 WE ACKNOWLEDGE THE REASONS FOR THE PRESIDENT'S DECISION TO 11:16:29 PAUSE DEEP WATER DRILLING, BUT IT IS NOT WITHOUT CONSEQUENCES. 11:16:33 THOUSANDS OF JOBS LOST AND BILLIONS IN LOST WAMPS AND 11:16:36 SPENDING. AND NOT ONLY ON THE GULF COAST 11:16:38 BUT ALSO IN PLACES LIKE ALASKA. THIS BRINGS ME TO THE TOPIC THAT 11:16:43 YOU ASKED TO US SPEAK ABOUT TODAY. 11:16:45 AMERICA'S ENERGY FUTURE. AT SHELL, WE BELIEVE THAT 11:16:49 POPULATION AND ECONOMIC GROWTH WILL DRIVE GLOBAL ENERGY DEMAND 11:16:52 TO POTENTIALLY DOUBLE TODAY'S USE BY 2050 EVEN WITH STRONG 11:16:57 EFFICIENCY GAINS. ENERGY SUPPLY FROM ALL SOURCES, 11:17:01 OIL, GAS, NUCLEAR, RENEWABLE AND OTHERS WILL STRUGGLE TO KEEP UP 11:17:04 WITH THIS DEMAND. ENVIRONMENTAL STRESSES WILL 11:17:08 GROW, MAKING THE TRANSITION TO LOWER CARBON ECONOMIES EVEN MORE 11:17:12 URGENT. WITH THIS AS A BACK DROP IT IS 11:17:14 CLEAR THE WORLD NEEDS A MORE SUSTAINABLE ENERGY SYSTEM. 11:17:18 ALTERNATIVE AND RENEWABLE ENERGY SYSTEMS COULD BE 30% OF THE NEW 11:17:23 ENERGY MIX BY 2050, THE SCALE AND MASSIVE INFRASTRUCTURE OF 11:17:26 THE GLOBAL ENERGY SYSTEM DOES MEAN THAT CHANGE TAKES TIME. 11:17:29 AT SHELL, WE BELIEVE OUR INDUSTRY CAN BEST CONTRIBUTE BY 11:17:34 MAKING MORE ENERGY AVAILABLE, BY REDUCING EMISSIONS AND BY 11:17:38 INCREASING OUR LOWER CARBON ENERGY SHARE WHILE JEN RALT 11:17:41 RATING JOBS AND DOING SO SAFELY AND RESPONSIBLY. 11:17:45 NATURAL IT WAS IS NOT RENEWABLE BUT IT IS ABUNDANT IN THE U.S. 11:17:50 AND A LOWER CO 2 ENERGY SOURCE. IT IS FAR THE QUICK EFFORT AND 11:17:56 LEAST EXPENSIVE ROUTE TO CLEANER AIR. 11:18:00 WITHIN A COUPLE OF YEARS, SHELL WILL BE PRODUCING MORE GAS THAN 11:18:03 OIL AND MUCH OF THAT IN NORTH AMERICA. 11:18:06 BIOFUELS ARE ALSO ONE OF THE BEST OPPORTUNITIES FOR REDUCING 11:18:09 CO 2 FROM TRANSPORTATION FOR THE AT LEAST THE NEXT 20 YEARS. 11:18:13 AS SHELL IS THE LARGEST SUPPLIER OF RENEWABLE BLEND FUELS AN 11:18:17 INVEFRTING IN LOWEST CO 2 BIOFUELS MADE FROM SUGAR CANE 11:18:23 ETHANOL WITH A JOINT VENTURE PROPOSED FOR BRAZIL. 11:18:27 INVESTMENT IN TECHNOLOGIES SUCH AS THESE ARE CREATING JOBS. 11:18:30 ONE OUT OF EVERY FIVE DOLLARS NOTICE U.S. COMES FROM 11:18:33 INVESTMENTS MADE BY OUR ENERGY. OUR INDUSTRY, WHICH ALREADY 11:18:38 SUPPORTS MORE THAN 9.2 MILLION AMERICAN JOBS. 11:18:40 WE NEED TO RETAIN THESE JOBS AND CREATE NEW ONES TO FUEL THE 11:18:44 ECONOMY OF THE FUTURE. SOCIETY, GOVERNMENT AND BUSINESS 11:18:48 MUST ALL DO THEIR PART. ABSENCE OF A REBUST ENERGY 11:18:52 POLICY HAS BEEN A DISADVANTAGE TO THIS NATION. 11:18:54 SHELL SUPPORTS LEGISLATING A SOLUTION TO ENERGY AND CLIMATE 11:18:58 ISSUES AS A MEANS TO CREATE, SECURE -- A SECURE U.S. ENERGY 11:19:04 FUTURE, TO REDUCE DEPENDENCE ON IMPORTED OIL AND TO REDUCE 11:19:10 GREENHOUSE GAS EMISSION, THIS REQUIRES SETTING A PRICE FOR 11:19:13 CARBON. BUT SHYING AWAY FROM OIL AND GAS 11:19:16 DEVELOPMENT DURING THE TRANSITION IS NOT THE ANSWER. 11:19:18 OIL AND GAS DEVELOPMENT IS TOO IMPORTANT TO THE U.S. ENERGY 11:19:21 SUPPLIES AND OUR ECONOMY TO NOT SAFELY AND RESPONSIBLY MOVE 11:19:24 FORWARD. SHELL STANDS READY AND ABLE WITH 11:19:27 SKILLED PEOPLE AND STATE-OF-THE-ART TECHNOLOGY TO 11:19:29 CONTINUE MEETING AMERICA'S NEEDS. 11:19:31 THANK YOU FOR YOUR TIME. I LOOK FORWARD TO ADDRESSING 11:19:33 YOUR QUESTIONS. THANK YOU, MR. ODUM. 11:19:36 OUR FINAL WITNESS IS MR. LAMAR McKAY. 11:19:39 MR. McKAY IS THE PRESIDENT AND CHAIRMAN OF BP AMERICA. 11:19:44 MR. McKAY, PLEASE BEGIN WHEN YOU ARE READY. 11:19:49 THANK YOU. CHAIRMAN MARKEY, RANKING MEMBER 11:19:52 UPTON, MEMBERS OF THE COMMITTEE, MY NAME IS LAMARING IN KAY, I AM 11:19:56 CHAIRMAN AND PRESIDENT OF BP AMERICA. 11:19:58 BEFORE ADDRESSING THE MAIN TOPIC OF TODAY'S HEARING, I WOULD LIKE 11:20:02 TO REITERATE THE PROFOUND SORROW AND REGRET THAT ALL OF US AT BP 11:20:07 FEEL FOR THE LOSS OF LIFE AND THE OIL SPILL RESULTING FROM THE 11:20:12 DEEP WATER HORIZON EXPLOSION AND FIRE. 11:20:16 THIS IS VERY PERSONAL BOTH TO ME AND TO BP. 11:20:19 I AM FROM MISSISSIPPI. I GREW UP IN MISSISSIPPI. 11:20:23 I SPENT SUMMERS ON THE GULF COAST. 11:20:25 MOST OF MY FAMILY IS IN NEW ORLEANS. 11:20:28 AND I HAVE MOST OF MY RELATIVES AND FRIENDS ALONG THE GULF 11:20:32 COAST. THE GULF COAST STATES HAVE 11:20:35 HOSTED BP AND BP'S HERITAGE COMPANIES FOR DECADES. 11:20:39 THOUSANDS OF OUR EMPLOYEES, CONTRACTOR AND THEIR FAMILIES 11:20:43 CALL THE GULF COAST STATES HOME. THIS HORRENDOUS ACCIDENT HAS 11:20:51 PROFOUNDLY TOUCHED ALL OF US. THERE'S BEEN TREMENDOUS SHOCK 11:20:55 THAT SUCH AN ACCIDENT COULD HAVE HAPPENED. 11:20:58 AND GREAT SORROW FOR THE LIVES LOST AND INJURIES SUSTAINED. 11:21:02 I'D LIKE TO MAKE ONE THING VERY CLEAR. 11:21:04 BP WILL NOT REST UNTIL THE WELL IS UNDER CONTROL, WHEN WE 11:21:09 DISCOVER WHAT HAPPENED AND WHY. IN ORDER TO ENSURE THAT IT NEVER 11:21:13 HAPPENS AGAIN. AS A RESPONSIBLE PARTY UNDER THE 11:21:17 OIL POLLUTION ACT OF 1990, WE WILL CARRY OUT OUR 11:21:21 RESPONSIBILITIES TO MITIGATE THE ENVIRONMENTAL AND ECONOMIC 11:21:24 IMPACT OF THIS ACCIDENT. IN FACT, BP IS GOING BEYOND 11:21:31 OBLIGATIONS UNDER OPA TO AGREE TO PAY ALL LEGITIMATE CLAIMS FOR 11:21:36 ECONOMIC DA DAMAGES ULTIMATING FROM THE SPILL. 11:21:41 WHILE IT'S DIFFICULT TO DIVERT FROM THE HERE AND NOW, WE CANNOT 11:21:45 LOSE SIGHT FOR THE NEED TO SHAPE THE COUNTRY'S FUTURE ENERGY AND 11:21:48 CLIMATE POLICY. BP IS KMILTED TO WORKING WITH 11:21:50 THE CONGRESS AND THE BROAD CROSS SECTION OF ENERGY PRODUCER, 11:21:54 ENERGY CONSUMERS AND OTHER STAKEHOLDERS TO ADDRESS THE 11:21:57 CHALLENGES OF CLIMATE CHANGE IN THE CON TEGT OF INCREASING U.S. 11:22:02 ENERGY DEMAND. WE APPRECIATE THE OPPORTUNITY TO 11:22:05 SHARE OUR VIEWS ON ENERGY AND CLIMATE POLICY AS WELL AS THE 11:22:09 CHANCE TO DISCUSS THE MAJOR ROLE OF NATURAL GAS THAT IT CAN PLAY 11:22:14 IN SPEED SPOOEDING EMISSION REDUCTIONS IN THE POWER SECTOR, 11:22:18 DELIVERING THE GREAT EFFORT REDUCTIONS AT THE LOWEST COST 11:22:20 FOR CONSUMERS USING TECHNOLOGY THAT IS AVAILABLE TODAY. 11:22:24 BP ADVOCATES AND HAS ADVOCATED FOR QUITE A TIME AN ALL OF THE 11:22:30 ABOVE APPROACH TO TACKLING CLIMATE CHANGE. 11:22:33 ENHANCING U.S. ENERGY SECURITY AND MEETING THE NATION'S GROWING 11:22:35 NEED FOR ENERGY. WE DO SUPPORT POLICIES THAT 11:22:40 ENCOURAGE CONSERVATION. ENERGY EFFICIENCY AND GREATER 11:22:44 PRODUCTION OF DOMESTIC ENERGY INCLUDING ALTERNATIVES, OIL AND 11:22:48 GAS AND NUCLEAR. OUR VIEWS ON CLIMATE POLICY FLOW 11:22:52 FROM THE FACT THAT A TON OF CARBON IS A TON OF CARBON 11:22:56 WHETHER IT COMES OUT OF A TAIL PIPE OR A SMOKE STACK AND THE 11:22:59 BELIEF THAT EVERY TON SHOULD BE TREATED THE SAME. 11:23:03 WE SUPPORT A NATIONAL CLIMATE POLICY THAT CREATES A LEVEL 11:23:06 PLAYING FIELD FOR ALL FORMS OF ENERGY THAT PRODUCE CARBON 11:23:11 EMISSIONS. WE FAVOR AN ECONOMY-WIDE PRICE 11:23:14 FOR CARBON BASED ON FAIR AND EQUITABLE APPLICATION ACROSS ALL 11:23:19 SECTORS. MARKET BASED SOLUTIONS LIKE CAP 11:23:21 AND TRADE OR LINKED FEE ARE THE BEST SOLUTIONS TO MANAGE 11:23:25 GREENHOUSE GAS EMISSIONS, APPLIED NATIONALLY, THESE WOULD 11:23:28 ACHIEVE NATIONAL ENVIRONMENTAL EFFECTIVENESS AT REDUCING 11:23:32 EMISSIONS, TREAT ALL ENERGY CONSUMERS EQUITABLY AND 11:23:36 FACILITATE INVESTMENT IN SUSTAINING AND CREATING JOBS. 11:23:38 WE HAVE LONG SUPPORTED TRANSITIONAL INCENTIVES FOR 11:23:42 ALTERNATIVES TO ASSIST OUR DEVELOPMENT AND ACCELERATE THEIR 11:23:46 MARKET ENTRY, ADDITIONALLY, WE THINK NATURAL GAS HOLDS GREAT 11:23:50 PROMISE IN BECOMING A LARGER COMPONENT OF THE U.S. ENERGY 11:23:53 POOL AND CAN PROVIDE A CRITICAL DOWN PAYMENT AT DELIVERING UPON 11:23:57 OUR CARBON REDUCTION GOALS. NOW I'D LIKE TO CONCLUDE BY 11:24:01 NOTING THAT WHILE BP IS IN THE MIDST OF A CRISIS RIGHT NOW AND 11:24:05 WE ARE PREFISHD JUDGED BY OUR RESPONSE TO THAT CRISIS, WE 11:24:09 CANNOT LOSE SIGHT OF THE FUTURE. THANK YOU AND I LOOK FORWARD TO 11:24:12 YOUR QUESTIONS. THANK YOU, MR. McKAY. 11:24:17 THAT COMPLETES THE OPENING STATEMENTS OF OUR WITNESSES. 11:24:21 WE WILL NOW TURN TO QUESTIONS BY THE SUBCOMMITTEE MEMBERS. 11:24:27 THE CHAIR WILL RECOGNIZE HIMSELF. 11:24:30 AS I MENTIONED IN MY OPENING STATEMENT, THE GULF OF MEXICO 11:24:33 RESPONSE PLANS FOR EXXONMOBIL, CHEVRON, CONOCO-PHILLIPS AN 11:24:40 SHELL ARE VIRTUALLY IDENTICAL TO BP'S. 11:24:43 AND JUST AS DEFICIENT. AS YOU CAN SEE BY LOOKING AT THE 11:24:49 COVERS OF THESE FIVE PLANS, ON THE SCREEN AND OVER MY HEAD, THE 11:24:55 PICTURES ARE THE SAME FOR EACH PLAN. 11:24:57 ALL THAT IS CHANGED IS THE COLOR OF THE COVER OF THE PLAN FROM 11:25:03 EACH OF THE COMPANIES SEATED AT THE TABLE. 11:25:08 MR. TILLERSON, LIKE BP ON PAGE 11-6 OF YOUR PLAN, EXXONMOBIL'S 11:25:14 GULF OF MEXICO OIL SPILL RESPONSE PLAN LISTS WALRUSES 11:25:19 UNDER SENSITIVE BIOLOGICAL AND HUMAN RESOURCES. 11:25:23 AS I AM SURE YOU KNOW, THERE AREN'T ANY WALRUSES IN THE GULF 11:25:27 OF MEXICO. AND THERE HAVE NOT BEEN FOR 3 11:25:30 MILLION YEARS. HOW CAN EXXONMOBIL HAVE WALRUSES 11:25:37 IN THEIR RESPONSE PLAN FOR THE GULF OF MEXICO? 11:25:43 CONGRESSMAN MARKEY, THOSE RESPONSE PLANS INCORPORATE A 11:25:46 NUMBER OF BROAD BASED STUDIES, MARINE MAMMAL STUDIES, MANY OF 11:25:52 WHICH ARE PART OF THE EIS AND EIA STATEMENTS PUT TOGETHER BY 11:25:57 THE MMS AND MUCH OF THE RESPONSE PLAN WHAT IS CONTAINED IN IT IS 11:26:02 PRESCRIBED BY REGULATION. INCLUDING THE MODELS THAT ARE 11:26:06 USED TO PROJECT DIFFERENT SCENARIOS FOR ALL SPILLS AND 11:26:09 MANY OF THE STATEMENTS AND REPRESENTATION THAT ARE IN THE 11:26:12 PLANS -- THESE ARE REGIONAL. 11:26:14 I UNDERSTAND. OIL SPILL RESPONSE PLANS. 11:26:17 HOW CAN WALRUSES BE IN A RESPONSE PLAN FOR THE GULF OF 11:26:22 MEXICO? THIS IS A REGIONAL RESPONSE PLAN 11:26:25 THAT EACH OF YOU HAD TO PUT TOGETHER. 11:26:27 I UNDERSTAND THE QUESTION. IT'S UNFORTUNATE THAT WALRUSES 11:26:31 ARE INCLUDED. AND IT'S AN EMBARRASSMENT THAT 11:26:35 THEY WERE INCLUDED BUT THAT'S PART OF A LARGER MARINE MAMMAL 11:26:38 STUDY THAT IS USED IN PREPARING REGIONAL RESPONSE PLANS. 11:26:41 MR. MULVA, YOUR PLAN AS WELL INCLUDES WALRUSES. 11:26:47 MR. WATSON, YOUR PLAN HAS THEM ON PAGE 11-6. 11:26:53 HOW DO YOU RESPOND TO HAVING WALRUSES IN YOUR PLAN? 11:26:58 I RESPOND IN A SIMILAR FASHION. 11:27:04 THE PLANS ARE PUT TOGETHER IN RESPONSE TO GUIDELINES FROM THE 11:27:10 MINERALS MANAGEMENT SERVICE. DO YOU AGREE THAT IT'S AN 11:27:13 EMBARRASSMENT TO HAVE WALRUSES IN A RESPONSE PLAN FOR THE GULF 11:27:15 OF MEXICO, MR. WATSON. CERTAINLY FOR THE GULF OF 11:27:19 MEXICO IT'S NOT APPROPRIATE. MR. MULVA, DO YOU AGREE IT'S 11:27:24 AN EMBARRASSMENT TO HAVE IT INCLUDED IN THE PLAN. 11:27:27 I AGREE IT'S NOT APPROPRIATE FOR THAT REGION. 11:27:31 IN YOUR RESPONSE PLAN, MR. TILLERSON AS WELL AS SOME OF 11:27:37 THE OTHER PLANS INCLUDING CONOCO-PHILLIPS, THERE IS A DR. 11:27:43 LUTZ WHO IS REFERRED TO AS AN EXPERT. 11:27:46 A TECHNICAL SUPPORT PERSON. MR. LUTZ DIED IN 2005, FOUR 11:27:51 YEARS BEFORE THE PLAN WAS ACTUALLY FILED. 11:27:57 HOW, MR. TILLERSON, CAN YOU JUMP IN A RESPONSE PLAN HAVING A 11:28:01 PERSON WHO HAS BEEN DEAD FOR FOUR YEARS? 11:28:04 IS THAT ALSO AN EMBARRASSMENT IT. 11:28:07 IS BUT LET ME POINT OUT THAT DR. LUTZ IS PART OF THE 11:28:10 UNIVERSITY OF MIAMI'S MARINE MAMMAL RESEARCH DIVISION WHICH 11:28:13 HAS BEEN AN IMPORTANT RESOURCE FOR PREPARATION OF THESE PLANS 11:28:16 FOR YEARS. THE FACT THAT DR. LUTZ DIED IN 11:28:19 2005 DOES NOT MEAN HIS WORK AND THE IMPORTANCE OF HIS WORK DIED 11:28:22 WITH HIM. THERE ARE MANY OTHER INDIVIDUALS 11:28:26 IDENTIFIED IN THE PLAN -- NO I APPRECIATE THAT. 11:28:30 EXPERTISE -- IT'S 2010. 11:28:31 A. AND THOSE NUMBERS ARE ALL 11:28:33 VALID IN THE PLAN. IT'S 2010, IT JUST SEEMS TO 11:28:37 ME THAT WHEN YOU INCLUDE DR. LUTZ' PHONE NUMBER IN YOUR PLAN 11:28:45 FOR RESPONSE, THAT YOU HAVE NOT TAKEN THIS RESPONSIBILITY 11:28:51 SERIOUSLY. MR. MULVA, THE SAME IS TRUE FOR 11:28:54 YOU. IS IT AN EMBARRASSMENT TO 11:28:57 CONOCO-PHILLIPS TO HAVE THAT AS PART OF YOUR PLAN? 11:29:00 WELL, THE PLANS NEED TO BE UPDATED MORE FREQUENTLY. 11:29:04 IT'S IMPORTANT IS THE INSTITUTION THAT'S WHO WE 11:29:07 REFER TO FOR SUPPORT. OBVIOUSLY, IT EMBARRASSING. 11:29:10 BUT WE REALLY LOOK TOWARDS THE INSTITUTION AND NOT NECESSARILY 11:29:14 THE INDIVIDUAL. IT JUST SEEMS TO ME THAT FOR 11:29:17 EACH YOUR COMPANIES, THE ONLY TECHNOLOGY YOU SEEM TO BE 11:29:20 RELYING UPON IS A XEROX MACHINE TO PUT TOGETHER YOUR RESPONSE 11:29:25 PLANS. THAT THERE WASN'T ENOUGH EFFORT 11:29:29 PUT TOGETHER TO ENSURE THAT IN THE GULF IF A CATASTROPHE 11:29:33 OCCURRED THAT YOU WOULD BE ABLE TO RESPOND. 11:29:35 AND YOU A, MR. McKAY, IN THE FIRST WEEK, YOUR COMPANY 11:29:40 DEVELOPED A DOCUMENT THAT SHOWED THAT YOUR RANGE OF POSSIBILITIES 11:29:45 FOR AN ACCIDENT WAS ONE,000 TO WOULDN'T 14,000 BARRELS PER DAY. 11:29:58 YET YOUR COMPANY CONTINUALLY LOWBALLED THE NUMBER SAYING IT'S 11:30:03 1,000 BARRELS A DAY. NOW YOU'RE ESTIMATING IT COULD 11:30:06 BE UPWARDS OF 40,000 BARRELS A DAY AND YOU ARE TODAY CAPTURING 11:30:13 15,000 BARRELS A DAY OF OIL FROM THAT GUSHER. 11:30:16 ARE YOU READY TO APOLOGIZE TO THE AMERICAN PEOPLE FOR GETTING 11:30:20 THAT NUMBER SO WRONG? HAVING BEEN SO INCOMPETENT OR 11:30:26 DECEPTIVE TO THE AMERICAN PEOPLE THAT PROPER PREPARATIONS WERE 11:30:30 NOT PUT IN PLACE BECAUSE OF BP'S LOWBALLING OF THE ACTUAL AMOUNT 11:30:36 OF OIL THAT WAS GOING INTO THE GULF OF MEXICO? 11:30:40 FIRST, JUST TO BE CLEAR. THOSE WERE UNIIED AREA COMMAND 11:30:51 ESTIMATES. THE 5,000 BARRELS A DAY WAS DONE 11:30:55 GUY NOAA OUR INPUT AFTER THAT WAS A RANGE OF 1,000 TO 14,000 11:31:02 BARRELS A DAY AND OUR BEST ESTIMATE WAS ABOVE 5,000 BARRELS 11:31:06 A DAY, BUT THE UNIFIED AREA COMMAND ESTIMATE WAS FOIFR 11:31:15 5,000 BARRELS A DAY. 11:31:16 THINGS HAVE MOVE THING A -- THIS DOCUMENT I HAVE IS BP 11:31:20 CONFIDENTIAL IN THE FIRST WEEK T SAYS 1,000 TO 14,000. 11:31:25 THIS IS BP CONFIDENTIAL. ONUS, THE BURDEN, THE 11:31:36 RESPONSIBILITY WAS ON YOUR SHOULDERS. 11:31:38 YOU WERE ABLE THROUGH YOUR INTERNET TEASE TO MAKE THIS 11:31:40 DETERMINATION. I DO BELIEVE IT'S EITHER 11:31:43 DELIBERATE DECEPTION OR GROSS INCOMPETENCE BECAUSE ULTIMATELY 11:31:45 THE AMOUNT OF BOOM, SKIMERS, CLEANUP OF THE BEACHES AND 11:31:50 MARSHES AND RESCUE OF BIRDS AND TURTLES, THE CHAFLT WHICH YOU 11:31:55 NEEDED IN ORDER TO CAPTURE THE OIL COMING OUT OF THAT SPILL, 11:32:00 TESTING FOR THE HEALTH OF THE WORKERS, IT WAS ALL DEPENDENT 11:32:03 UPON HOW LARGE THE SPILL WAS. ARE YOU READY TO APOLOGIZE FOR 11:32:09 GETTING THAT NUMBER SO GROSSLY WRONG THAT THE CAPACITY OF 11:32:15 FEDERAL AND STATE GOVERNMENTS TO PUT IN PLACE A RESPONSE WAS 11:32:20 DELAYED BECAUSE YOU DID NOT DO THE JOB? 11:32:23 I WILL JUST REITERATE WHAT COMMANDANT ALLEN SAID, THOSE 11:32:30 WERE UNIFIED AREA COMMAND ESTIMATES. 11:32:32 THEY WERE YOUR CAMERAS AT THE BOTTOM OF THE OCEAN. 11:32:39 THAT'S TRUE. WE PROVIDED -- 11:32:41 YOU GOT IT MR., McKAY. B 11:32:51 GOT IT WRONG. WE HAVE PROVIDE ALL THE 11:32:54 INFORMATION TO THE COAST GUARD, NOAA WITH THE DATA WE HAVE. 11:32:58 ON THE DAY, MR. McKAY, THAT YOU ARE READY TO APOLOGIZE -- 11:33:01 WHAT'S THAT? ON THE DAY THAT YOU ARE READY 11:33:03 TO APOLOGIZE, THAT IS THE DAY THAT WE CAN BEGIN TO MOVE 11:33:06 FORWARD AND PUT TOGETHER THE KINDS OF PLANS THAT MAKE SURE 11:33:09 THIS NEVER HAPPENS AGAIN. IT WAS BP'S SPILL BUT IT WAS 11:33:14 AMERICA'S OCEAN. WELL, WE ARE -- 11:33:16 WE NEED YOU TO ADMIT THAT YOU KNEW OR SHOULD HAVE KNOWN VERY 11:33:21 EARLY ON THAT THIS WAS NOT A SPILL OF 1,000 OR 5,000 BARRELS 11:33:26 PER DAY. THEY WERE YOUR CAMERAS, YOUR 11:33:29 TECHNOLOGY, YOUR EXPERTISE THAT THE AMERICAN PEOPLE WERE RELYING 11:33:33 UPON AND YOU GOT IT COMPLETELY WRONG. 11:33:36 EITHER IN ORDER TO LIMIT YOUR LIABILITY OR OUT OF 11:33:48 INCOMPETENCE, BUT THE ULTIMATE IMPACT ON REGION WILL LAST FOR 11:33:52 GENERATIONS. PLEASE, ONE FINAL CHANCE, 11:33:53 APOLOGIZE FOR GETTING THAT NUMBER WRONG. 11:33:55 WE ARE SORRY FOR EVERYTHING THE GULF COAST IS GOING THROUGH 11:33:59 AND. WE ARE SORRY FOR THAT AND THE 11:34:01 SPILL. WHAT I CAN SAY IS WE HAVE 11:34:02 PROVIDED EVERY BIT OF DATA AND INFORMATION WE HAVE TO THE 11:34:05 UNIFIED KPAND, TO THE GOVERNMENT, TO EVERY SCIENTIST 11:34:07 THAT'S WORKING ON THIS FULL-TIME AND FROM THAT DAY YOU'RE TALKING 11:34:13 ABOUT. SO WE DO NOT HAVE THE TECHNOLOGY 11:34:15 TO MEASURE THAT. THAT IS STILL UNDER EVALUATION. 11:34:18 I CONTINUE TO BELIEVE THAT BP IS STILL MORE INTERESTED IN ITS 11:34:22 LIABILITY THAN IT IS IN THE LIVEABILITY OF THE GULF AND THIS 11:34:27 HEARING IS JUST ONE FURTHER INDICATION OF THAT. 11:34:29 MY TIME IS EXPIRED. LET ME TURN AND RECOGNIZE THE 11:34:34 GENTLEMAN FROM MICHIGAN. MR. UPTON. 11:34:37 THANK YOU, MR. McKAY, YOU INDICATED THAT BP IS LOOKING TO 11:34:42 PAY ALL LEGITIMATE DAMPS. ARE YOU WILLING TO PUT INTO AN 11:34:46 ESCROW ACCOUNT ENOUGH MONEY TO PAY FOR SUCH DAMAGES AS MIGHT BE 11:34:51 EXPECTED? WELL, WE'VE BEEN VERY, VERY 11:34:53 CLEAR FROM DAY ONE THAT WE, AS A RESPONSIBLE PARTY UNDER OPA-90 11:34:59 WE ARE GOING TO BE LIVING UP TO THE RESPONSIBILITIES OF OPA-90. 11:35:05 I CAN NOT COMMENT ON WHETHER THERE WILL BE A FUND SET ASIDE 11:35:08 OR NOT. WE MADE IT CLEAR THE COMPANY 11:35:10 STANDS BEHIND THESE COMMITMENTS. SWE A STRONG BALANCE SHEET AND A 11:35:13 STRONG COMPANY, WE WILL STAND BEHIND THOSE. 11:35:16 I CANNOT COMMIT ONE WAY OR THE OTHER WHETHER A FUND WOULD SERVE 11:35:20 THAT FURTHERANCE. SO THAT'S A NO AT THIS POINT? 11:35:23 I CAN'T COMMENT YES OR NO. WHY NOT? 11:35:27 THE BUCK STOPS THERE. WE, WHAT WE'VE SAID IS WE'LL 11:35:31 HONOR ALL LEGITIMATE CLAIMS AND THE FULL COMPANY STANDS BEHIND 11:35:36 THAT. IF YOU ASKED THE FEDERAL 11:35:37 GOVERNMENT FOR ANY HELP THAT YOU'VE NOT RECEIVED? 11:35:42 NOT THAT I KNOW OF. WHAT GRADE WOULD YOU GIVE THE 11:35:46 ADMINISTRATION IN ITS EFFORTS TO STOP THIS SPILL? 11:35:50 WE'VE BEEN COOPERATING IN EVERY WAY WE KNOW HOW WITH THE 11:35:55 ADMINISTRATION. A, B, C, D. 11:35:56 I CAN'T GIVE A GRADE. THIS HAS BEEN A UNIFIED COMMAND 11:36:00 THAT WE'VE BEEN A PARTICIPANT IN WITH MANY GOVERNMENT AGENCIES, 11:36:05 INDUSTRY, WE'VE GOT 140 COMPANIES WORKING ON THIS. 11:36:08 I CAN'T COMMENT ON A GRADE OF INDIVIDUAL COMPONENTS OF THAT. 11:36:12 OF YOUR COUNTERPARTS THAT ARE AT THE TABLE, HAVE ANY OF THEM, 11:36:17 ARE YOU WORKING WITH ANY OF THEM TO TRY AND STOP THE LEAK? 11:36:19 YES, ALL OF THESE COMPANIES HAVE BEEN TREMENDOUSLY 11:36:22 SUPPORTIVE IN HELPING US. QUESTION FOR ALL OF YOU, AS 11:36:28 YOU DO DRILLS, DRILLING ACROSS THE WORLD, WHICH COUNTRY HAS THE 11:36:35 TOUGHEST REGULATIONS THAT ENFORCE THOSE REGULATIONS AND IF 11:36:40 THAT COUNTRY GETS AN A, WHERE WOULD YOU PUT THE U.S. WITH THE 11:36:45 ENFORCEMENT BY THE MMS? MR. TILLERSON? 11:36:48 WELL, I THINK THE UNITED STATES AND THE NORTH SEA 11:36:52 COUNTRIES HAVE THE MOST MATURE REGULATORY STRUCTURE AROUND 11:36:56 OFFSHORE DRILLING ACTIVITIES BECAUSE THAT'S WHERE IT'S TAKEN 11:36:59 PLACE THE LONGEST AND I CAN TELL YOU THOSE STANDARDS THEN GET 11:37:02 TAKEN TO COUNTRIES THAT DO NOT HAVE ESTABLISHED REGULATORY 11:37:07 STRUCTURES IN THE SAME STANDARDS ARE APPLIED EVERYWHERE. 11:37:09 SO THE SAME STANDARDS THAT ARE IN THE GULF AS IN THE NORTH 11:37:13 SEA? BY AND LARGE, THEY ARE THE 11:37:15 SAME. FOR EXXONMOBIL, WE TAKE WHAT WE 11:37:18 BELIEVE TO BE THE BEST PRACTICE, THE BEST AND APPLY THAT GLOBALLY 11:37:21 BECAUSE IT REALLY DOESN'T MATTER WHERE YOU ARE, IF YOU HAVE A 11:37:26 WELL CONTROL INCIDENT, YOU NEED TO USE THE BEST YOU HAVE 11:37:30 EVERYWHERE IN DEEP WATER DRILLING. 11:37:32 IT'S NOT AN AREA WHERE YOU MAKE A DISTINCTION STINGS I CAN GOING 11:37:36 TO CUT A CORNER BECAUSE I CAN. I KNOW THAT IN THE NORTH SEA 11:37:39 WHEN THEY HAD THE ACCIDENT BACK IN 1988 AND 180 FOLKS -- 11:37:44 PIPER ALPHA. RIGHT. 11:37:47 THE CHANGES WERE MADE IN TO SPLIT THE ENFORCEMENT AGENCY 11:37:55 SIMILAR TO WHAT THE ADMINISTRATION IS NOW PROPOSING 11:37:58 WITH THE MMS. IS THAT A BETTER SYSTEM THAN 11:38:00 WHAT WE HAVE IN THE UNITED STATES, RIGHT? 11:38:02 I DON'T NOPE THAT THE STRUCTURE IS AS IMPORTANT AS THE 11:38:06 COMPETENCY AND THE PROCESS BY WHICH THE OVERSIGHT OCCURS. 11:38:09 MR. WATSON? I'M NOT SURE I CAN GRADE ALL 11:38:14 THE DIFFERENCES ACROSS THE JURISDICTIONS. 11:38:16 I JUST WANT TO KNOW WHAT IS THE -- WHAT MODEL SHOULD WE BE 11:38:20 LOOKING AT? WE START WITH THE REGULATIONS 11:38:23 IN EACH COUNTRY. THEN WE APPLY OUR STANDARDS ON 11:38:26 TOP OF THOSE REGULATIONS. AND THEY ARE VERY SIMILAR. 11:38:30 THE APPLICATION OF OUR PROCESSES AND PROCEDURES ARE VERY SIMILAR 11:38:35 IN ALL THE COUNTRIES. WHERE THERE ARE PARTICULAR 11:38:38 REQUIREMENTS IN A PARTICULAR COUNTRY, WE, OF COURSE, COMPLY 11:38:42 WITH THOSE. OUR VIEW IS CERTAINLY THAT THE 11:38:43 UK AND THE U.S. HAVE VERY HIGH STANDARDS. 11:38:46 MR. MULVA? THE GREATEST PART OF OUR 11:38:52 EXPERIENCE AND OPERATION HAS BEEN IN THE NORTH SEA. 11:38:56 PARTICULARLY NORWAY AND THE UNITED KINGDOM AND IN THE NORWAY 11:39:00 AND THE UNITED KINGDOM, ESPECIALLY DEVELOPED SOME OF THE 11:39:05 BEST PRACTICES APPLICABLE AND USED AROUND THE WORLD. 11:39:07 SO IT'S BASED ON OUR EXPERIENCE OVER SEVERAL DECADES THAT THOSE 11:39:12 BEST PRACTICES AND OVERSIGHT REVIEW HAVE BEEN AMIND USED IN 11:39:18 THE INDUSTRY AND OTHER PRAISE PLACE OF THE WORLD. 11:39:20 SO I WOULD SAY THAT THEY RANK RIGHT UP AT THE TOP IN TERMS OF 11:39:25 CAPABILITY AND DEVELOPMENT OF PRACTICES. 11:39:28 MR. ODUM. SIMILAR ANSWER IN THAT I 11:39:33 THINK THE U.S. DOES HAVE ONE OF THE MOST COMPREHENSIVE SET OF 11:39:37 RECOMMENDATION FOR THE INDUSTRY IN THE WORLD. 11:39:38 YOU CAN FIND OTHER AREAS WHERE A PARTICULAR REGULATION MAY BE 11:39:42 MORE STRINGENT THAN WHAT YOU SEE IN THE U.S. 11:39:43 THE IMPORTANT PART FOR US AS A COMPANY IS GOING BACK TO WHAT I 11:39:47 CALLED MY TESTIMONY OUR GLOBAL STANDARDS. 11:39:49 HOW WE DO THINGS EVERYWHERE, THOSE OFTEN EXCEED THE 11:39:53 REGULATIONS IN ANY COUNTRY. MR. McKAY? 11:39:56 YES, I WOULD AGREE WITH THAMPL THE STANDARDS ARE SIMILAR 11:39:59 IN MANY PLACES WITH SOME SPECIFIC DIFFERENCES BUT THE 11:40:02 U.S. HAS A STRONG SET OF STANDARDS. 11:40:04 I WOULD ADD A COMMENT THAT I THINK LEARNING WHAT WE'RE 11:40:07 LEARNING THROUGH THIS WILL AUGMENT SOME OF THOSE STANDARDS 11:40:09 AND WILL BE HELPFUL. GENTLEMEN FROM MICHIGAN'S 11:40:16 TIME HAS ECK SPIDER SPOOIED. CHAIR RECOGNIZES THE GENTLEMAN 11:40:20 FROM CALIFORNIA, MR. WAXMAN. YESTERDAY, CHAIRMAN STUPAK 11:40:24 AND I SENT A LETTER TO TONY HAYWARDS CEO OF BP RAISING 11:40:31 QUESTIONS BE AT DESIGN AND SAFETY DECISIONS MADE BY BP AT 11:40:38 ITS McCONDO WELL. THE LETTER QUESTIONED DECISIONS 11:40:44 MADE BY BP THAT SEEMS TO INCREASE THE RISK OF 11:40:48 CATASTROPHIC BLOWOUT. I WOULD LIKE TO ASK EACH OF YOU 11:40:52 IF YOU THINK MISS TAKES WERE MADE BY BPP MR. TILLERSON. 11:40:57 WELL, IN REVIEWING THE LETTER THAT YOU BOTH SENT, IT APPEARS 11:41:00 CLEAR TO ME THAT A NUMBER OF DESIGN STANDARDS A THAT I WOULD 11:41:05 CONSIDER TO BE THE INDUSTRY NORM WERE NOT FOLLOWED. 11:41:07 LET ME GET THROUGH THIS QUICKLY. 11:41:08 YOU THINK THAT THEY MADE MISTAKES? 11:41:11 THE ANSWER YOU WOULD GIVE WOULD BE YES? 11:41:14 WE WOULD NOT HAVE DRILLED THE WELL THE WAY THEY DID. 11:41:16 HOW ABOUT YOU, MR. WATSON? WE'VE JUST HAD A CHANCE TO 11:41:20 TAKE A LOOK AT YOUR LETTER. IT'S QUITE LENGTHY OF COURSE 11:41:24 WITH A NUMBER OF DETAILED COMMENTS. 11:41:27 OUR EXPERTS ARE TAKING A LOCK AT T I'VE TRED MYSELF. 11:41:30 AND FROM WHAT I'VE SEEN, IT'S CONSISTENT WITH WHAT THE JOINT 11:41:34 INDUSTRY TASK FORCE FOUND, WE HAVE AN OPPORTUNITY TO RAISE THE 11:41:38 BAR, IF YOU WILL, ON STANDARDS IN THE INDUSTRY AND IT CERTAINLY 11:41:42 APPEARS FROM YOUR LETTER THAT NOT ALL STANDARDS THAT WE WOULD 11:41:48 RECOMMEND OR THAT WE WOULD EMPLOY WERE IN PLACE. 11:41:50 DO ANY OF YOU DISAGREE WITH THE STATEMENT THAT BP MADE 11:41:56 MISTAKES? OKAY. 11:41:58 IT'S NOT A DISAGREEMENT, IT'S JUST CONFIRMATION THAT WE DON'T 11:42:02 HAVE ALL THE INFORMATION DPUT BUTT FROM THE INFORMATION IN 11:42:04 YOUR LETTER AND WHAT WE KNOW ABOUT THE WELL, A SIMILAR 11:42:07 STATEMENT IT'S THAT NOT A WELL THAT WE WOULD HAVE DRILLED WITH 11:42:11 THAT MEK SETUP AND THERE ARE OPERATIONAL CONCERNS. 11:42:15 MR. WATSON, YOU'RE QUOTED IN THE "THE WALL STREET JOURNAL" AS 11:42:17 SAYING THIS INCIDENT WAS PREVENTIBLE. 11:42:18 YES. WHAT MISS TAKES DID BP MAKE 11:42:21 THAT YOU WOULD NOT HAVE MADE? FIRST, WE WOULD SAY THAT AS 11:42:27 WE LOOK AT THIS INCIDENT, WE NEED TO LET THE INVESTIGATION 11:42:31 RUN ITS COURSE. WHAT WE HAVE DONE IS SINCE THE 11:42:33 FIRST DAYS OF THIS INVESTIGATION AND THIS ACCIDENT, WE'VE 11:42:38 PARTICIPATED IN THE JOINT INDUSTRY TASK FORCE WHERE THE 11:42:41 INDUSTRY -- NOW, YOU MADE THE 11:42:43 STATEMENT -- YOU WERE QUOTED AS SAYING THIS INCIDENT WAS 11:42:47 PREVENTIBLE. YES. 11:42:48 WHAT WOULD YOU HAVE DONE DIFFERENTLY TO PREVENT THE 11:42:51 DISASTER THAT WE'VE NOW ENCOUNTERED? 11:42:54 THERE ARE SEVERAL AREAS THAT APPEAR BASED ON THE INFORMATION 11:42:57 WE'VE SEEN IN THE JOINT INDUSTRY TASK FORCE AND BASED ON THE 11:43:00 INFORMATION WE'VE BEEN ABLE TO GATHER THAT SUGGEST THAT 11:43:03 PRACTICES WE WOULD NOT PUT IN PLACE WERE EMPLOYED HERE? 11:43:06 SPECIFICALLY. FOR EXAMPLE THE CASING DESIGN 11:43:09 AND THE MECHANICAL BARRIERS THAT WERE PUT IN PLACE APPEAR TO BE 11:43:15 DIFFERENT THAN WHAT WE WOULD USE. 11:43:16 GARY LICKETT HEADS CHEVRON'S EXPLOATION AND PRODUCTION UNIT. 11:43:22 HE SAID IN "THE WALL STREET JOURNAL" THAT CHEVRON USES A 11:43:24 SAFER WELL DESIGN. CAN YOU TELL US WHY THE CHEVRON 11:43:27 WELL DESIGN IS SAFER THAN BP'S? IT'S THOSE TWO 11:43:33 CHARACTERISTICS I COMMENT THERE ON TOP OF WHAT WE THINK ARE 11:43:35 EFFECTIVE PROCEDURES AND OTHER AUTHORITIES THAT WE HAVE IN 11:43:38 PLACE THAT WOULD HAVE PREVENTED THIS INCIDENT. 11:43:42 WELL, IN THE WELL DESIGN, BP HAS A CHOICE OF TWO PRIMARY 11:43:48 OPTIONS, CAN COULD LOWER A FULL STRING OF CASING FROM THE TOP OF 11:43:51 THE WELL TO THE BOTTOM OF THE WELL OR HANG A LIFTER -- HANG A 11:43:55 LINER FROM THE LOWER END OF THE CASING ALREADY IN THE WELL AND 11:43:58 INSTALL A TIE-BACK ON TOP OF THE LINER. 11:44:02 BP PLAN REVIEW RECOMMENDED AGAINST THE FULL STRING OF 11:44:06 CASING BECAUSE IT WAS IT WOULD CREATE AN OPEN ANALYST TO THE 11:44:11 WELL HEAD AND MAKE THE SEAL ASSEMBLY THE ONLY BAYER TO GAS 11:44:15 FLOW IF THE CEMENT JOB FAILED. WOULD YOU HAVE CHOSEN THE OTHER 11:44:19 OPTION? AND DO YOU CHOOSE THE OTHER 11:44:21 OPTION IN YOUR WELLS? WE WOULD NOT HAVE RUN A FULL 11:44:24 STRING. YOU WOULD NOT HAVE? 11:44:26 OKAY. MR. TILLERSON, YOU MADE A 11:44:29 SIMILAR CLAIM TODAY, YOU TESTIFIED THAT QUOTE, WHAT WE DO 11:44:31 KNOW IS THAT WHEN YOU PROPERLY DESIGN WELLS FROM THE RANGE OF 11:44:36 RISK ANTICIPATED FOLLOW ESTABLISHED PROCEDURE, BUILD IN 11:44:39 LAYERS OF REDUNDANCY, PROPERLY INSPECT AN MAINTAIN EQUIPMENT, 11:44:43 TRAIN OPERATORS, CONDUCT TESTS AND DRILLS, AND FOCUS ON SAFE 11:44:48 OPERATIONS AND RISK MANAGEMENT, TRAGIC INCIDENTS LIKE THE ONE IN 11:44:51 THE GULF OF MEXICO TODAY SHOULD NOT OCCUR. 11:44:54 MR. TILLERSON, YOU'VE SAID THIS BLOWOUT WOULD NOT HAVE HAPPENED 11:44:58 IF EXXONMOBIL HAD BEEN DRILLING THE WELL. 11:45:01 TELL US WHAT YOU WOULD HAVE DONE DIFFERENTLY IN AND PLEASE BE 11:45:05 SPECIFIC. WELL IT WOULD HAVE BEEN A 11:45:07 DIFFERENT WELL DESIGN. WE WOULD HAVE RUN A LINER, A 11:45:10 TIE-BACK LINER. WE WOULD HAVE USED A DIFFERENT 11:45:13 CEMENT FORMULATION, WE HAVE TESTED FOR CEMENT INTEGRITY 11:45:17 BEFORE WE CIRCULATED THE KILL WEIGHT MUD OUT. 11:45:20 WE WOULD HAVE HAD THE LOCK ARE SEAL RING BEFORE PROCEEDING. 11:45:24 AND LEADING UP TO ALL OF THAT, THOUGH, THERE WAS CLEARLY AND 11:45:28 THIS IS JUST BASED ON WHAT'S BEEN PUBLICLY MADE AVAILABLE, 11:45:32 THERE WERE CLEARLY A LOT OF INDICATIONS OR PROBLEMS WITH 11:45:35 THIS WELL GOING ON FOR SOME PERIOD OF TIME LEADING UP TO THE 11:45:39 FINAL LOSS OF CONTROL. AND WHY THOSE WEREN'T 11:45:48 DEALT WITH DIFFERENTLY, I DON'T KNOW. 11:45:49 WE DON'T HAVE ALL THE INFORMATION, SO I WANT TO ECHO 11:45:52 WHAT MR. WATSON SAID. WE ARE VERY INTERESTED, AS I 11:45:54 SAID IN MY REMARK, WE WANT TO SEE THE FULL INVESTIGATION 11:45:57 BECAUSE WE WANT TO UNDERSTAND, WAS THERE SOMETHING ELSE PEOPLE 11:46:02 WERE LOOKING AT THAT CAUSED THEM TO MAKE THE DECISIONS THEY MADE 11:46:09 AS OPPOSED TO DECISIONS THAT WE WOULD HAVE MADE DIFFERENTLY THAT 11:46:12 LED TO THE ULTIMATE LOSS OF THE WELL. 11:46:13 THANK YOU, MY TIME IS RUNG OUT, BUT LET ME JUST MAKE A 11:46:17 STATEMENT, MR. CHAIRMAN. I FEEL MORE CONFIDENT IN THESE 11:46:19 ASSURANCES IF I DIDN'T REALIZE THAT EACH THE OIL SPILL 11:46:25 RESPONSES PLANS FROM THE COMPANIES ARE VIRTUALLY 11:46:29 IDENTICAL TO BP'S. YOU SAY YOU WOULD HAVE DONE 11:46:32 THINGS DIFFERENTLY. I WOULD THINK THAT CERTAINLY IN 11:46:36 RETROSPECT THAT'S A STATEMENT YOU WOULD CERTAINLY MAKE I HOPE 11:46:38 THAT'S TRUE, BUT THE RECORD DOES NOT SUPPORT THAT THE OTHER 11:46:42 COMPANIES HERE TODAY HAVE BEEN MORE PREPARED THAN BP. 11:46:50 SO I THANK YOU FOR YOUR TESTIMONY. 11:46:53 WE'VE GOT TO LEARN FROM THIS EXPERIENCE AND MOVE ON, BUT WE 11:46:56 HAVE TO LEARN THAT THESE THINGS HAVE TO BE THOUGHT OUT AND THE 11:47:00 PLANS SHOULD NOT JUST BEEN COOKIE CUTTER PLANS. 11:47:03 THANK YOU, MR. CHAIRMAN. OKAY. 11:47:05 THE CHAIRMAN'S TIME HAS EXPIRED. THE CHAIR RECOGNIZES THE RANKING 11:47:10 MEMBER OF THE FULL COMMITTEE THE GENTLEMAN FROM TEXAS, 11:47:12 MR. BARTON. THANK YOU, MR. CHAIRMAN. 11:47:14 THE STAKES ARE A LOT HIGHER AND CONSEQUENCES ARE MUCH MORE DIRE 11:47:18 BUT THIS REMINDS A LITTLE BIT OF MONDAY MORNING CALL IN RADIO 11:47:24 TALK SHOW AFTER THE RED SKOES HAVE BLOWN ANOTHER ONE. 11:47:27 EVERYBODY HAS AN IDEA OF WHAT SHOULD HAVE BEEN DONE AND NOW 11:47:30 THAT THEY KNOW WHAT WAS DONE AND IT WASN'T DONE PROPERLY, THEY'RE 11:47:34 MUCH SMARTER THAN THE COACH ON THE FIELD AND THE QUARTERBACK ON 11:47:37 THE FIELD AT THE TIME. SO IT'S VERY EASY TO SECOND 11:47:42 GUESS AND TO POINT OUT THE PROBLEMS. 11:47:47 THERE'S KIND OF GOOD NEWS/BAD NEWS. 11:47:49 THE BAD NEWS IS THAT I AGREE WITH CHAIRMAN WAXMAN. 11:47:53 JUDGMENT CALLS WERE MADE THAT NOW THAT WE'RE -- NOW THAT WE 11:48:01 KNOW WHAT HAPPENED, THOSE WERE THE IMBRORP JUDGMENT. 11:48:03 THAT'S BAD. BUT THE GOOD NEWS IS AND THIS IS 11:48:07 WHAT OUR INDUSTRY CEOs ARE SAYING, I THINK, IS THAT IT 11:48:11 PREVENTIBLE. YOU KNOW, I DON'T KNOW WHAT THIS 11:48:13 TASK FORCE IS GOING DO RECOMMEND THAT MR. TILLERSON HAS ALLUDED 11:48:19 TO, BUT IF THE RECOMMENDATION IS THAT BEST PRACTICES ON THESE 11:48:23 DEEP WELLS OUGHT TO HAVE THESE DOUBLE SLEEVES, I THINK WE COULD 11:48:27 PUT THAT INTO REGULATION. IF WE NEED TO. 11:48:30 IF THE BEST PRACTICES IS YOU OUGHT TO PUT THE LOCKOUT COLLAR 11:48:33 ON THE WELL BEFORE YOU DO THE FINAL CEMENTING JOB, I THINK 11:48:36 THAT'S SOMETHING THAT CAN BE DONE. 11:48:37 IF THE BEST PRACTICES IS THAT WE OUGHT TO REALLY FOCUS ON 11:48:43 DEGASSING THE MUD BEFORE YOU RECIRCULATE IT AND DO THAT FINAL 11:48:48 STAGE WHEN THIS ACCIDENT OCCURRED, I THINK WE'LL GO ALONG 11:48:51 WITH THAT. THESE ARE NOT HUGE TECHLY 11:48:55 COMPLEX, WE JUST DON'T KNOW HOW TO SOLVE THAT PARTICULAR 11:48:59 PROBLEM. SO THAT'S THE GOOD NEWS. 11:49:02 NOW MY FIRST QUESTION IS TO THE CEO OF BRITISH PETROLEUM OR THE 11:49:08 PRESIDENT OF BRITISH PETROLEUM, US HATS FEDERAL GOVERNMENT TOLD, 11:49:13 ASKED THAT YOU DO ANYTHING THAT YOU JUST FLAT SAID NO TO? 11:49:17 HAVE THEY PROPOSED SOME SOLUTIONS THAT YOU'VE TURNED 11:49:20 DOWN THAT IN HIND SIGHTS IF YOU WOULD HAVE JUST DONE WHAT YOU 11:49:24 WERE TOLD DO, THE WELL WOULDN'T CONTINUE TO BE LEAKING? 11:49:27 NO, I DON'T KNOW OF ANY SOLUTIONS THAT HAVE BEEN BOROUGH 11:49:31 POSED THAT WE HAVEN'T DONE. AND IT IS BP'S RESPONSIBILITY 11:49:36 FOR THE WELL, I MEAN YOU ARE THE OWNER OF THE WELL. 11:49:38 BUT IN TERMS OF MITIGATION AND IN TERMS OF THE CLEANUP ON THE 11:49:43 BEACH, DID BP TELL THE PRESIDENT OF THE UNITED STATES THAT WE 11:49:47 SHOULDN'T LET LOUISIANA PEOPLE GO OUT AND DO THOSE SAND BERMS? 11:49:50 WELL, WHAT WE -- NO, WHAT WE'VE ALWAYS SAID IS WHAT WE'RE 11:49:55 TRYING TO DO IS WORK THROUGH UNIFIED COMMAND. 11:49:58 DECISIONS FOR OPERATIONAL MATTERS LIKE THAT GO THROUGH 11:50:01 UNIFIED COMMAND. THEY DID GO THROUGH UNIFIED 11:50:06 THAT WAS A UNIFIED COMMAND DECISION. 11:50:10 ARE ANY OF THESE GOVERNMENT HERE BECAUSE YOU WERE 11:50:15 SUBPOENAED? YOU ARE ALL HERE VOLUNTARILY? 11:50:18 YOU HAVE CHOSE ON THE BE HERE? ISN'T THAT CORRECT? 11:50:21 IN TERMS OF BP, THIS TELEVISION CAMERA THAT'S SHOWING THE OIL, 11:50:26 ISN'T THAT YOUR TELEVISION CAMERA? 11:50:30 THAT'S THE REMOTE OPERATE TORE A REQUEST. 11:50:42 YOU HAVEN'T BEEN TOLD BY FEDERAL LAW THAT YOU HAVE TO DO THAT? 11:50:45 NO. WE AGREED WITH DEPARTMENT OF 11:50:48 INTERIOR AND OTHERS TO SUPPLY RIGHT OFF THE BAT. 11:50:52 WE HAVE RESPONDED TO REQUESTS TO OPEN THAT UP TO THE PUBLIC AND 11:50:55 OTHER CONGRESSIONAL MEMBERS. I WANT TO ASK THIS QUESTION 11:51:01 TO EXXON MOBILE AND CHEVRON. IF WE WERE TO MAINTAIN THIS 11:51:08 M MORATORIUM, HOW DOES THAT AFFECT 11:51:11 YOUR DECISION ON HOW THE GET THE INFORMATION THAT AMERICA NEEDS 11:51:17 TO AMERICA? DO YOU SIT ON YOUR HANDS OR LOOK 11:51:24 FOR THE ENERGY SOMEWHERE ELSE? WE WILL REDIRECT OUR HUMAN 11:51:28 RESOURCES TO OTHER PARTS OF THE WORLD WHERE WE ARE ALLOWED TO 11:51:32 WORK AND WILL REDIRECT THE RIGS AND EQUIPMENT. 11:51:35 THIS STUFF IS TOO EK PENSIVE TO LET IT SIT AROUND. 11:51:39 WHAT'S IT COST PER DAY? WELL THE SPREAD RATE IS ABOUT 11:51:43 A MILLION DOLLARS A DAY? DO YOU ECHO WHAT MR. EXXON 11:51:50 JUST SAID? TWO OF WHICH WE ARE OPERATING 11:51:57 AT THE TIME OF THE INCIDENT. NOW I AM TOLD THAT THE 11:52:07 CHINESE OIL COMPANIES ARE DRILLING OFF THE COAST OF CUBA 11:52:11 WHICH MEANS THEY ARE DRILLING OFF THE COAST OF FLORIDA. 11:52:15 DO ANY OF YOU GENTLEMEN HAVE REASON TO BELIEVE THAT THE 11:52:19 CHINESE OIL COMPANIES ARE SAFER AND MORE CONCERNED ABOUT SAFETY 11:52:23 THAN U.S. OIL COMPANIES? WITH I CAN'T SPEAK FOR THOSE 11:52:39 COMPANIES. HAVE THEY LED THE WAY IN ANY 11:52:43 AREA THAT YOU ARE AWARE OF? I AM NOT AWARE OF THOSE. 11:52:45 OKAY. OKAY. 11:52:50 LAST QUESTION. WE HAVE HEARD A LOT IN THE 11:52:54 SCIENTIFIC COMMUNITY ABOUT NEW IDEAS TO ONCE YOU HAVE AN OIL 11:52:59 SPILL TO INSERT NATURAL ORGANISMS THAT BIODEGRADE AND 11:53:05 TURN IT INTO NON-HARMFUL SUBSTANCES. 11:53:10 WE WANT TO PREVENT THE SPILL. IF WE CAN'T PREVENT IT WE WANT 11:53:13 TO STOP IT. IF YOU HAVE ONE IS THERE HOPE 11:53:16 THAT WE WILL HAVE ORGANISMS THAT BIODEGRADE THE OIL QUICKLY SO 11:53:23 THAT IT DOESN'T HARM THE ENVIRONMENT? 11:53:31 I WOULD ONLY COMMENT THAT IN EFFECT, THAT'S PART OF WHAT THE 11:53:45 D DISPERSENT ACTION DOES. 11:53:59 THEY ARE ACTUALLY LESS TOXIC THAN SOAP. 11:54:03 I WANT TO THANK YOU FOR LETTING ME GO OVER IS AND KEEP 11:54:11 OUR INDUSTRY AND ENVIRONMENT SAFE AND GROWING. 11:54:17 THE CHAIR RECOGNIZES THE GENTLEMAN FROM MICHIGAN. 11:54:28 GENTLEMEN, YES OR NO, EACH IF YOU PLEASE. 11:54:32 YOU HAVE SEEN, WELL, THIS DOCUMENT WHICH IS THE DEPARTMENT 11:54:36 OF INTERIOR'S DO ANY OF YOU HAVE ANY ON JEGSS TO THE 11:54:49 R RECOMMENDATIONS CONTAINED THERE 11:54:53 IN. I HAVE LOOKED AT THE DOCUMENT 11:54:56 AND HAD SIGNIFICANT INPUT THEY MAY BE INTRODUCING MORE RISK IN 11:55:13 AN EFFORT, THEY MAY ACTUALLY BE INCREASING THE RISK IN SOME 11:55:20 AREAS. WHAT RISK ARE WE TRYING TO 11:55:32 MITIGATE. THERE ARE AREAS I DO HAVE 11:55:48 CONCERNS ABOUT. DOES THAT GENERALLY ADDRESS 11:55:50 YOUR FEELINGS EACH? THANK YOU. 11:56:04 THE DEEP WATER HORIZONS CONTAINS A SINGLE SET OF BLIND SHEER 11:56:10 RAMS. THEY WERE SUPPOSED TO CUT 11:56:12 THROUGH THE PIPE IN THE CASE OF EMERGENCY AND STOP THE FLOW OF 11:56:15 OIL AND GAS INTO THE WATER. THEY OBVIOUSLY FAILED TO CARRY 11:56:22 OUT THAT FUNCTION. DO YOU SUPPORT THE IDEA THAT WE 11:56:25 SHOULD HAVE DOUBLE OR REDUNDANT ONES? 11:56:29 WE HAVE RECOMMENDED ADDITIONAL REDUNDANCY. 11:56:41 AGAIN, IF YOU PLEASE, HOW MANY VESSELS DO YOU HAVE DOWN 11:56:52 THERE IN THE TO COLLECT THE OIL THAT IS ACHIEVED. 11:57:01 DO YOU HAVE ONE, SEVERAL, MORE ON THE ROAD. 11:57:05 ARE YOU GOING RUN OUT OF CAPACITY TO RECEIVE THE OIL THAT 11:57:08 YOU ARE RETRIEVING? AND THEN WE HAVE AN ADDITIONAL 11:57:22 TWO ON THE WAY THAT SHOULD BE OUTFITTED AND FUNCTIONAL 11:57:27 POTENTIALLY BY MID JULY. IN TERMS OF TAKE PROGRESS 11:57:35 DUCTION OFF THE WELL, WE WILL HAVE UP TO ROUGHLY SIX THAT 11:57:38 WOULD TAKE DIRECT PRODUCTION IN THE VERY NEAR FUTURE. 11:57:41 NOW I NOTE THAT YOU ARE HAUFR BURNING SOME OF THE RETRIEVED 11:57:48 OIL FOR ONE OF SPACER CAPACITY TO HANDLE IT. 11:57:51 IS THAT STILL GOING ON? THE OFFSHORE BURNING OCCURS 11:57:58 WHEN THERE IS ENOUGH OIL TO BOOM AND BURN. 11:58:09 WE HAVE CAPACITY TO BURN OIL THAT IS PRODUCED UP TO THAT 11:58:16 VESSEL. YOU ARE SUPPOSED TO, I 11:58:19 BELIEVE, HAVE A PLAN TO ADDRESS SPILLS OR CATASTROPHIC EVENTS. 11:58:27 I AM ASSUMING THAT EACH OF YOU DO. 11:58:29 WHAT IS THE DATE -- FIRST OF ALL, IS THAT PLAN FOR THE WHOLE 11:58:36 OF YOUR OPERATION OR IS IT. THERE IS A GULF REGIONAL PLAN 11:59:02 THE 12:00:24 REX TILLERSON: THE COAST GUARD HAS COMMAND OF THE INCIDENT AFTER 12:00:29 YOU HAVE THE SPILL. THE RESPONSIBLE PARTY WORKS WITH 12:00:34 THE COAST GUARD YOUR ACTIONS HAVE TO BE APPROVED BY THE COAST 12:00:46 GUARD BUT IT IS DONE IN A JOINT FASHION AND THE COAST GUARD 12:00:50 MAKES DETERMINATION OF WHEN CLEAN UP ACTIVITIES SHOULD BE 12:00:54 UNDERTAKEN AND WHEN YOU SHOULD STOP. 12:01:10 BUT I ALSO AGREE WITH THE STATEMENT THAT MUCH OF THIS. 12:01:20 NOW, IF YOU PLEASE, MR. McKAY, IN THE CASE THAT WE'RE 12:01:31 DISCUSSING HERE, HAS THE COAST GUARD MADE ANY RECOMMENDATIONS 12:01:35 WITH WHICH BP DID NOT AGREE? NO, I DON'T THINK THERE HAVE 12:01:44 BEEN ANY RECOMMENDATIONS. THE DECISIONS HAVE BEEN WORKED 12:01:48 TOGETHER THROUGH THE UNIFIED STRUCTURE AND MAJOR DECISIONS 12:01:52 HAVE OCCURRED UNDER THAT STRUCTURE AND WITH OUR SUPPORT. 12:01:55 HAS THERE BEEN ANY CONFLICT BETWEEN THE ADMINISTRATION AND 12:02:02 BP WITH REGARD TO THE CLEAN UP THAT HAS BEEN GOING FORWARD? 12:02:12 THERE HAVE BEEN DEA BAITS ABOUT EMPLOYMENT AND THAT IS 12:02:17 PART OF THE STRUCTURE BUT I THINK ALL THE MAJOR DECISIONS 12:02:20 THAT HAVE BEEN MADE HAVE BEEN SUPPORTED BY BP. 12:02:27 IS IT YOUR VIEW THAT THE GOVERNMENT SHOULD TAKE OVER THE 12:02:30 CLEAN UP OR IS IT YOUR VIEW THAT THAT SHOULD REMAIN AS IT IS OR 12:02:39 SHOULD IT BE THE PRESENCE PL AND SOLE RESPONSIBILITY OF THE 12:02:45 OPERATOR OR THE. THIS IS EFFECTIVE. 12:02:53 I THINK THIS ACTUALLY -- I UNDERSTAND EVERYONE'S 12:02:59 FRUSTRATION WITH HOW LONG THIS IS TAKING. 12:03:07 IT'S UNFORTUNATE THAT WE CAN'T GET IT STOPPED AT THE SOURCE. 12:03:11 I THINK THE C NOW IN ONE RECOMMENDATION HE 12:03:29 RECOMMENDS THAT THERE BE THE FINALIZATION OF A RULE THAT 12:03:31 WOULD REQUIRE THE OPERATORS OF DRILLING WELLS TO DEVELOP ROBUST 12:03:38 SAFETY AND MANAGEMENT SYSTEMS FOR OFFSHORE DRILLING 12:03:42 OPERATIONS. IN 2009 WHEN THIS WAS FIRST 12:03:45 PROPOSED, THE OFF-SHORE R OPERATORS COMMITTEE RAISED KURNS 12:03:55 ABOUT IT. WOULD YOU SUPPORT -- IS THERE 12:04:02 ANYONE AT THE TABLE WHO WOULD NOT SUPPORT THE FINALIZATION OF 12:04:07 THAT RULE? I NOTICE YOU HAVE THE SAME 12:04:14 PROBLEM AS I DO. I JUST WANT TO BE CLEAR WHAT 12:04:22 YOU ARE REFERRING TO. I'M NOT SURE I UNDERSTAND 12:04:30 EXACTLY WHAT RULE YOU ARE REFERRING TO. 12:04:32 ONE OF THE SECRETARY'S RECOMMENDATION IS THAT THE 12:04:36 FINALIZATION OF THE RULES R 12:04:41 REQUIRING OPERATORS OF DRILLING WELLS TO DEVELOP ROBUST SAFETY 12:04:49 AND MY QUESTION TO YOU, GENTLEMEN, WOULD YOU SUPPORT 12:04:57 SUCH A RECOMMENDATION? I WOULD HAVE TO GO BACK AND 12:05:06 LOOK AT THE SPECIFICS. I DON'T REMEMBER ENOUGH OF THE 12:05:12 DETAILS. I AM. 12:05:25 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS. 12:05:34 I WANT TO POSE THE SAME QUESTION. 12:05:36 EVERYONE IN THE PANEL BEFORE US IS THERE ANY IDEA THAT YOU HAVE 12:05:43 AT THIS POINT THAT WOULD STOP IS THERE SOMETHING YOU COULD SHARE 12:05:50 WITH US THAT HAS NOT BEEN TRIED THAT WILL BRING A RAPID 12:05:54 CONCLUSION TO THIS? WE KNOW BP DOESN'T HAVE THAT 12:05:57 IDEA. DO ANY OF THE REST OF YOU?

EUROPE LATE +MidEast Cabinet 2 2:30 APTN Clients Only WRAP adds Arafat with Abbas, Dahlan and Suleiman ++Basra Oil 2:30 APTN Clients Only NEW Oil flow restored from southern oil fields +Karbala Pilgrims 4 3:02 APTN Clients Only WRAP Adds senior Shia leader calling for US troops to leave Iraq Iraq Garner Wrap 3:45 APTN Clients Only WRAP Garner visits Irbil, meets KDP leader, briefing SIraq Hoon 2:30 APTN Clients Only NEW UK Defence Min Hoon tours southern towns +Baghdad Politics 2 2:30 APTN Clients Only WRAP Demos, self proclaimed governor, Jamal's brother ++Russia NKorea 2:31 APTN Clients Only NEW Foreign Minister Ivanov comments on talks WHO SARS 2:03 See Script REPLAY WHO warns against travel to Toronto, Beijing, Shanxi province Australia Refugees 1:57 No Australia/Internet REPLAY Vietnam refugees head for Australia after being turned away by Indonesia Cyprus Travel 2 2:29 No Access Cyprus WRAP Adds soundbites to crowds at checkpoint following lifting of travel restrictions UK NIreland 2:23 Part No UK/Ireland/CNNi/Euronews/Net REPLAY Blair says IRA hasn't made a clear commitment to lasting peace Russia Human Traffic 1:40 No Access Russia REPLAY People smuggling ring is busted by authorities Afghan Tournament 2:26 APTN Clients Only NEW French ISAF troops in sports tournament to mark St George's Day 11:00:33 Mideast Wrap TORY: +MidEast Cabinet 2 - WRAP adds Arafat with Abbas, Dahlan and Suleiman LENGTH: 3:01 FIRST RUN: 1500 RESTRICTIONS: APTN Clients Only TYPE: Arabic/Nat SOURCE: APTN STORY NUMBER: 372380 DATELINE: Ramallah - April 23 2003 SHOTLIST: (First Run 1350 F-L-A-S-H, 23 April 2003) 1. Egyptian intelligence chief Omar Suleiman (dark glasses) entering car park with Palestinian prime minister-designate, Mahmoud Abbas (light jacket and grey hair) and former Gaza strongman Mohammed Dahlan (wearing sports jacket and black shirt); getting into cars 2. Convoy of cars leaving car-park at Abbas' residence (First Run 1500 Europe Late, 23 April 2003) 3. Crowd of officials and security around Mahmoud Abbas and Suleiman as they enter Yasser Arafat's headquarters (First Run 1350 F-L-A-S-H, 23 April 2003) 4. Dahlan walking past camera (First Run 1500 Europe Late, 23 April 2003) 5. Crowd around Dahlan as he enters Arafat's headquarters 6. Wide shot Arafat (centre) holding hands with Mahmoud Abbas (left) and Suleiman (right) seated at table 7. SOUNDBITE: (Arabic) Yasser Arafat, Palestinian Leader: (OVERLAID PREVIOUS SHOT) "We are very proud of (Egyptian President) Hosni Mubarak's friendship and brotherhood, with his minister Omar Suleiman and we appreciate their efforts, carried out over such a long time. We all here thank President Mubarak for his effort here and we are together for Jerusalem, Jerusalem, Jerusalem." 8. Close-up of Suleiman, pulls out to wide 9. Abbas, pulls out 10. Media and cameras outside headquarters STORYLINE: Yasser Arafat and his prime minister-designate, Mahmoud Abbas, on Wednesday ended their bitter standoff over the formation of a new Cabinet, removing a major obstacle to the presentation of a US-backed peace plan. Arafat had challenged several Abbas appointments, particularly that of former Gaza strongman Mohammed Dahlan to a key security post. However, at the root of the conflict had been the Palestinian leader's reluctance to share power with Abbas, who has the backing of international Middle East mediators. The agreement was brokered by Egyptian intelligence chief Omar Suleiman, who shuttled between the offices of Arafat and Abbas throughout the day on Wednesday, racing against the midnight deadline. Arafat announced an end to the standoff at his headquarters on Wednesday afternoon, sitting at the Cabinet table, flanked by Suleiman and Abbas. The Palestinian leader, known for his theatrical gestures, held hands with the two men as he said the argument had been put to rest. Dahlan also sat at the table. The outlines of the Egyptian-brokered deal were not immediately known an the Cabinet list was to be announced later on Wednesday. It still requires approval of the 88-member parliament. The Palestinian parliament speaker, Ahmed Qureia, said he would convene the legislature for a vote within a week, possibly next Sunday or Monday. By law, Abbas has the sole authority to form the Cabinet, but in practice needs Arafat's approval. The Cabinet requires the approval of parliament, where the ruling Fatah party, which had sided with Arafat in this showdown, commands a solid majority. It remained unclear whether Abbas' Cabinet would win approval. ***************************************************************** 11:03:56 Karbala Wrap 11:04:06 pilgrims STORY: +Karbala Pilgrims 4 - WRAP Adds senior Shia leader calling for US troops to leave Iraq LENGTH: 3:02 FIRST RUN: 1300 RESTRICTIONS: APTN Clients Only TYPE: Arabic/Nat SOURCE: APTN STORY NUMBER: 372374 DATELINE: Karbala - April 23 2003 SHOTLIST: (First Run 0450 GMT F-L-A-S-H, 23 April 2003) 1. Wide shot of pilgrims at Hussein's shrine 2. Mid shot, Hussein's shrine with pilgrims outside 3. Man speaking through megaphone 4. Various shots of crowd listening 5. Mid shot of pilgrims marching 6. Various shots of crowd with raised arms and chanting 7. SOUNDBITE (Arabic) Ali Malegi, clergyman of the Religious School in Karbala: "There are two options for the new government in Iraq. If this government is appointed by the Americans, it's going to be a disaster for the Iraqi people and maybe not very good for the surrounding countries. But if the Iraqis elect their own government, it's going to be fair for the Iraqi people and for surrounding countries." (First Run 0715 GMT Asia Pacific Late, 23 April 2003) 8. Wide shot of pilgrims in front of Hussein's shrine 9. Various shots of pilgrims marching (First Run 0900 GMT Americas, 23 April 2003) 10. Various wide shots of pilgrims marching 11. Pilgrims carrying signs: "No to America" 12. Pilgrims carrying signs: "Yes to the people's opinion" 13. Ali Mousawi, a Shi'a clergyman marching and talking through a megaphone 14. SOUNDBITE: (Arabic) Ali Mousawi, Shi'a Clergyman: "We know the Americans' aim in Iraq and we are against any government imposed by the Americans. We prayed to get rid of Saddam Hussein and this happened. We will not accept any government unless it is elected by the Iraqi people" 15. Various shots of pilgrims with blood on them, beating their heads, chanting (First Run 1500 GMT Europe Late, 23 April 2003) 15. Ayatollah Mohammed Baqir al-Hakim sitting at press conference 16. SOUNDBITE: (Arabic) Ayatollah Mohammed Baqir al-Hakim, leader of the Supreme Council of the Islamic Revolution of Iraq: "The presence of the American troops in Iraq is not acceptable or justified by the Iraqis and the slogans raised by the protestors today were very curious. and also look at the the great ceremonies in Karbala" 17. Cutaway, cameraman STORYLINE: The exiled leader of the biggest Iraqi opposition group called on Iraqis to converge in the Shi'ite holy city of Karbala to oppose a US-led interim administration and defend Iraq's independence. Ayatollah Mohammed Baqir al-Hakim, leader of the Supreme Council of the Islamic Revolution of Iraq, chose the southern Iraqi city because of its connections to Hussein, the grandson of Islam's Prophet Muhammad and one of Shiite Islam's most revered heroes. "The presence of the American troops in Iraq is not acceptable or justified by the Iraqis and the slogans raised by the protestors today were very curious," said al-Hakim An estimated one (m) million Shi'ite Muslims marched to Karbala's holy shrine, celebrating their freedom from years of repression by Saddam Hussein's regime. Swaying and chanting, some pilgrims were bleeding from self-inflicted head wounds of ritual mourning Pilgrims, many with heads bleeding and limping from long journeys in 90-degree (32 degree Celsius) heat, pressed up against each other on Tuesday on roads. Despite bitter internal differences the Shi'ites, who represent 60 percent of Iraq's 24 (m) million people, organisers were able to coordinate the event that has, so far, passed without violence. On Wednesday morning the pilgrims were marching on the streets of Karbala and were seen at Hussein's shrine. Anti American sentiment was clearly visible, with protest signs reading: "No to America" and "We refuse guardianship and occupation." "We prayed to get rid of Saddam Hussein and this happened. We will not accept any government unless it is elected by the Iraqi people," said Ali Mousawi, a Shi'a clergyman. Meanwhile, the exiled leader of the biggest Iraqi opposition group called on Iraqis to converge in the Shiite holy city of Karbala to oppose a US-led interim administration and defend Iraq's independence. Ayatollah Mohammed Baqir al-Hakim, leader of the Supreme Council of the Islamic Revolution of Iraq, chose the southern Iraqi city and the date - next Tuesday - because of their connections to Hussein, the grandson of Islam's Prophet Muhammad and one of Shiite Islam's most revered heroes. "I call on Iraqis to converge in Karbala to oppose any sort of foreign domination and support establishment of an Iraqi government that protects freedom, independence and justice for all Iraqis," al-Hakim was quoted by state-run Tehran television as saying Thursday. Council spokesman Abu Eslam al-Saqir confirmed the call had been issued. "To the Iraqi people, U.S. domination is no better than the dictatorship of the ousted brutal regime of Saddam Hussein," al-Saqir told The Associated Press. Al-Hakim will return to Iraq soon, his younger brother told The Associated Press, a move that could galvanize his followers. U.S. officials have expressed strong concerns about Al-Hakim's Supreme Council, claiming it is supported by the Iranian government and fearing it wants to create an Iranian-style Islamic government in Iraq. The Supreme Council - which claims thousands of its fighters are ready to take up arms - boycotted this week's meeting of Iraqi opposition groups to begin planning for Iraq's future government, charging the U.S. role as organizer "harms Iraq's independence." The meeting called in Karbala would mark the 40th day after the anniversary of the death of Hussein, who is seen by Shiites as a symbol of freedom who sacrificed himself to resist corruption and tyranny. He was killed in a battle on the plains of Karbala in A.D. 680, and his tomb is in the city. Shiite Muslims traditionally gather to mark the 40th day after a death. Also Thursday, al-Hakim's younger brother said the ayatollah will soon return to Iraq. "He will be in Iraq when the time is suitable and we are waiting for that," Abdul Aziz al-Hakim told the AP in Kut, Iraq, where the council has set up offices, some 40 miles from the Iranian border. Al-Hakim's return would be a critical moment in attempts to form a post-Saddam Hussein government. It would command the attention of the majority Shiite population, oppressed for years by minority Sunni Muslims from Saddam's Baath party. The younger Hakim was greeted by thousands of people in Kut, where he said he was visiting to prepare for his brother's return after 23 years in exile. Analysts say al-Hakim's appeal to religious feeling and imagery is reminiscent of the tactics used by the late Ayatollah Ruhollah Khomeini ahead of the 1979 Iranian Revolution. "Al-Hakim is resorting to tactics used by Iran's religious leaders in the '70s to topple the pro-U.S. shah: provoking people's religious sentiments and winning their hearts," said leading Iranian political commentator Davoud Hermidas Bavand. Al-Hakim's brother said his group would work with other opposition parties in the new Iraq. "I don't know why America is scared of us, we don't want to make a revolution, but we want to create safety and stability in Iraq," he said at council headquarters in Kut. "We are looking forward to establishing a democratic Iraqi government chosen by the people themselves." The Supreme Council's military wing, the Badr Corps, has thousands of fighters already in Iraq able to go to battle at the call of religious leaders, said Hakim, who is the corps' leader. He said the forces - who are lightly armed, but may have acquired heavier weaponry since the war - have been ordered not to fight U.S. forces. The fighters will go into action "when the people are in real danger," Hakim said, and will "stand side-by-side with the people and help them stabilize the country." ***************************************************************** 11:07:10 Baghdad Chalibi 11:08:48 SOT: "...no one should lay claim, people are not prepared to follow and obey...not legally constituted..." STORY: ++Baghdad Chalabi - NEW INC chairman discusses Iraqi sovereignty LENGTH: 2:02 FIRST RUN: 1500 RESTRICTIONS: APTN Clients Only TYPE: English/Nat SOURCE: PTV STORY NUMBER: 372381 DATELINE: Baghdad - April 23 2003 SHOTLIST: 1. US Humvee driving through the gates of compound 2. Ahmad Chalabi, leader of the Iraqi National Congress arriving 3. SOUNDBITE (English) Ahmad Chalabi, leader of Iraqi National Congress: "We are victorious with the exit of Saddam, but Iraqis don't like foreign troops on their territory and we want to be sovereign of our territory. And we want to exercise sovereignty over our territory. And we will build democracy on this basis. The United States does not want to occupy Iraq. We are grateful to President Bush for helping us to liberate ourselves and we will have established democratic institutions and there will be an orderly exit of coalition troops from Iraq after that." 4. Wide shot compound 5. SOUNDBITE: (English) Ahmad Chalabi, leader of Iraqi National Congress: "No one must usurp political authority. No one must usurp administrative authority and I believe that now the coalition is responsible for the public safety, for the security, for getting infrastructure projects started, so in that respect I think that no-one should lay claim to authority unilaterally; it will back fire quickly on people because people are simply not prepared to follow and obey civil authority or police authority which is not legally constituted." 6. Wide shot cars driving past exterior of compound STORYLINE: The leader of the US backed Iraqi National Congress, said on Wednesday that coalition troops would leave Iraq after the establishment of democratic institutions in the country. Speaking from Baghdad, Ahmad Chalabi said that while Iraqis were grateful to the US administration for helping to oust Saddam Hussein's regime, they did not like foreign troops on their land. He cautioned that no one group must attempt to claim political power as the Iraqi population were not prepared to follow a government that was not legally constituted. Chalabi was speaking from his compound, formerly the hunting club of Uday Hussein, which is being fortified by US troops. Chalabi, who left Iraq in 1958 and returned to Baghdad last week with US help, has been promoted by some in Washington as a possible political leader. However Chalabi maintains that he has no political ambitions in Iraq. *************************************************************** 11:09:26 Basra Oil 11:09:30 oil spraying up from a pond 11:09:41 close-up shot of oil 11:09:47 great shot of oil splshing with refinery in the background 11:10:00 troops, soldiers at refinery 11:10:13 soldiers walking around refinery 11:10:24 soldier pouring oil into plastic bottle 11:10:48 soldier holds up bottle of oil and people clap 11:11:02 sot: this is going to go a long ways to alieviate some of the problems they have right now 11:11:22 SOT: "...This is for the Iraqi people, none of this will be exported, the system itself is not fully up yet..." 11:12:05 Iraqis working on oil refinery 11:12:40 shot of tower with flames coming out at refinery 11:12:51 sot with iraqi (in arabic) STORY: ++Basra Oil - NEW Oil flow restored from southern oil fields LENGTH: 3:50 FIRST RUN: 1500 RESTRICTIONS: APTN Clients Only TYPE: English/Arabic/ Nat SOURCE: APTN STORY NUMBER: 372376 DATELINE: Basra/Rumeila - April 23 2003 SHOTLIST: Gas-oil separation plant, Rumeila oil field, south of Basra 1. Various of oil gushing from ground 2. Oil gushing from well in foreground, gas flares from oil wells in background 3. Oil surges up from well 4. US General Robert Crear and other US army officials entering gas-oil separation plant 5. General Crear walks up to workers at plant 6. Various of Crear going to pipeline and filling bottle with crude oil, people applaud 7. Close up of oil-filled bottle in Crear's hand 8. SOUNDBITE: (English) General Robert Crear, US Army: "This is going to go a long way to alleviate some of the problems they have right now and also brings a sense of normalcy back to the Iraqi people, they really deserve this." Question: How would you respond to critics who say that America only fought this war to get its hands on Iraqi oil?" Crear: "I would say they couldn't be any further from the truth. This is for the Iraqi people, that's why we're doing this. I think you can see for yourselves none of this would be exported, right now the concern is domestic and that's the production that we have brought on line. The system itself is not fully up yet but we've figured out a way to do it in such a way to alleviate some of the suffering, or prevent some of the suffering that could happen without an adequate supply of oil for domestic consumption." Basra oil refinery 9. Various of Iraqi workers spinning wheel on pipeline 10. Various of Iraqi workers welding pipes 11. Various of refinery Gas-oil separation plant, Rumeila oil field, south of Basra 12. Various of Crear talking to US private oil contractor (wearing sunglasses) 13. SOUNDBITE: (Arabic) Issa Ashur, Iraqi oil worker: "We're very limited in what we are doing right now, we can't touch anything unless we get orders to do so. We're just a tool now." 14. Various of gas flares burning from oil wells STORYLINE: Iraqi oil began flowing again on Wednesday for the first time since US-led forces toppled the regime of Saddam Hussein. Coalition forces, aided by Iraqi oil workers, fired up a gas-oil separation plant that sent oil to a pumping station and storage tank in Zubayr, outside the key southern city of Basra. Officials had planned to pump the oil to a refinery, but unexploded ordnance near the pipeline made that unfeasible on Wednesday. US General Robert Crear, who is in charge of restoring Iraq's oil infrastructure, said the development marked the return of normality for the Iraqi people. Within six to 15 weeks, Iraq's southern Rumeila oil field, one of the country's largest, could be producing up to 1.1 (m) million barrels a day, Crear said. Workers said production at Rumeila had been shut off just before the start of the war on March 20. Money from renewed sales of exported oil is expected to be the major source of income in helping Iraq rebuild after three wars and more than a decade of economic sanctions. Despite the presence of US oil contractors at the site, Crear denied that America wanted to divert Iraqi oil for its own use. **************************************************************** 11:13:25 Iraq Garner Wrap 11:13:40 chooper is landing 11:13:43 Iraqi children waiting with flowers 11:13:52 Garner walking across runway 11:13:59 Garner hugs and kisses 11:14:08 throwing flowers on Chalabi 11:14:18 children giving him more flowers 11:14:24 truck convoy 11:14:28 line waiting and clapping 11:14:37 giving him more flowers 11:14:41 singing for Chalabi 11:14:55 Garner greeting the school children 11:15:07 little gilr kisses Garner in crowd 11:15:37 Garner sits down at presser 11:15:43 Garner SOT: many, many Iraqis that tell us they're glad we're here...we're only going to stay here long enough to start a democratic govt..." 11:16:17 "I think security is getting better everyday...I have a good feeling about this...I think security is getting better, public service is getting better..." 11:17:00 "...mosaic of ethnic culture...he was in full agreement ***************************************************************************************************************** 11:17:27 S Iraq Hoon 11:17:32 chopper landing at base 11:17:54 greeting soldiers 11:18:09 getting a tour of supplies 11:18:24 display 11:18:28 sot: "the Iraqi people and that's what we're working towards...we're now, like we have for many weeks...provide assistance, as we undertake, rebuilding Iraqi society, because we want Iraq to be run by its own people....the efforts are being made across the board..." 11:19:49 looking at a mosaic of Saddam Hussein 11:20:06 shaking hands with some UK soldiers 11:20:41 playing sports STORY: SIraq Hoon - REPLAY UK Defence Min Hoon tours southern towns LENGTH: 3:14 FIRST RUN: 1350 RESTRICTIONS: APTN Clients Only TYPE: English/Nat SOURCE: MoD Pool STORY NUMBER: 372366 DATELINE: Umm Qasr/ Basra, April 23, 2003 SHOTLIST: Umm Qasr 1. Wide of docks 2. Hoon's helicopter lands 3. Hoon met by British military 4. Various of Hoon with soldiers 5. Confiscated military ordnance 6. SOUNDBITE: (English) Geoff Hoon, British Defence Minister: "Our ambition is to ensure that Iraq is for the Iraqi people, that is what we are working towards. Obviously, there are a number of stages along the way. We have completed by and large the first main stage, we are now, as you see here, as we've been for many weeks, in the process of supplying humanitarian assistance and help to the Iraqi people as we preserve security in this part of Iraq. That work will go on as we undertake as well in parallel the process of rebuilding Iraqi society. It's something we're absolutely committed towards, because we want Iraq to be run by its own people." 7. Cutaway 8. SOUNDBITE: (English) Geoff Hoon, British Defence Secretary: "There are any number of stories coming in now as to where he might have been, but obviously the efforts are being made across the board to arrest those responsible for the appalling regime here, above all else Saddam Hussein. We are seeing day by day successes as we capture more of those to blame and we go on with that effort." 9. British military watching from boat 10. Soldier with Saddam mural 11. Hoon and Saddam mural 12. SOUNDBITE: (Arabic) Vox pop: "My feeling is just like any other Arab, since the British came here we've felt a bit safer." Basra 12. Geoff Hoon greets soldiers of Royal Fusiliers 13. Close up Fusiliers and Desert Rats logo 14. Mid shot soldiers 15. Soldiers playing football STORYLINE: British Defence Secretary Geoff Hoon toured the key port city of Umm Qasr on Wednesday, becoming the first senior coalition politician to visit Iraq. Touching down by helicopter in the southern city, Hoon reviewed the work British troops have done to bring the port back into operation and permit the flow of humanitarian aid. Later he was headed to Basra to meet troops from the 7th Armoured Brigade, which carried out much of the fighting to seize southern Iraq. Hoon shook hands with Iraqi port workers and was shown several Iraqi arms and drugs caches which the British soldiers had discovered. Hoon said the purpose of his visit was simple - to thank British troops for the "absolutely superb" job they have done in both fighting the war and bringing assistance to ordinary Iraqis. When asked about Saddam Hussein's whereabouts, Hoon said he did not know but that coalition forces had not given up looking for him. Later Hoon visited soldiers of the Royal Regiment of Fusiliers in Basra and looked on as they relaxed playing football. ***************************************************************** 11:20:47 Baghdad Politics 2 11:21:11 sot: "...we still don't have an elected govt...to ensure and control the security situation in Baghdad..." 11:21:43 sot:" ...yes we are working with another american team..." 11:22:05 photo 11:22:10 sot in arabic 11:23:11 demonstrations, soldiers trying to keep the crowd under control 11:23:27 soldiers leading awat an Iraqi 11:23:35 soldier arguing with an Iraqi 11:23:48 tanks on patrol 11:23:58 sot in arabic: "...before hte war everyone had a job, now everyone is looking for a job..." STORY: +Baghdad Politics 2 - WRAP Demos, self proclaimed committee, Jamal's brother LENGTH: 3:17 FIRST RUN: 1500 RESTRICTIONS: APTN Clients Only TYPE: Arabic/English/Nat SOURCE: APTN STORY NUMBER: 372372 DATELINE: Baghdad - April 23, 2003 SHOTLIST: (FIRST RUN 1500 EUROPE LATE, APRIL 23 2003) 1. Wide shot of Baghdad local leaders sitting around table 2. Set up shot of al-Obiedy 3. SOUNDBITE: (English) Jawdat K al-Obiedy, Secretary of Self-Proclaimed Executive Committee: "We still lack an elected government in Iraq and this is a local committee. The reason behind this committee is that the public asked us to set up this committee to ensure and improve the security situation in Baghdad and provide facilities and services like electricity and the water plants." 4. Cutaway of locals around table 5. SOUNDBITE: (English) Jawdat K al-Obiedy, Secretary of Self-Proclaimed Executive Committee: Q. Have you had contacts with the Americans? "Yes we are working with another American team and we have a meeting every day with them coordinating the main issues." 6. Wide shot of garden 7. His late brother Hussain Kamel in military uniform 8. Shot of their family tree 9. SOUNDBITE: (Arabic) Jamal Kamel, Opposition Leader: "As far as the Iraq regime is concerned it always viewed itself as under the threat of war - whether it was from Israel or America, or any other country. So they would have tried to keep weapons to remain strong; they may have rid themselves of some of the weapons, but they probably also hid some as well. I don't think that they would have got rid of all their weapons." (FIRST RUN 1030 F-L-A-S-H, APRIL 23 2003) 10. Wide shot of people milling around outside the Republican Palace 11. Soldier fires handgun into air 12. Wide shot of soldiers arresting protestor 13. US soldier leads arrested Iraqi man away 14. UPSOUND: (English) Arrested Iraqi Man: Man: "No I'll not be alright. Soldier: You do not be alright, you're causing trouble Man: I cause trouble, you cause trouble, not me. Soldier: You cause trouble Man: No you." 15. Soldier leads arrested man away 16. Tank drives past 17. SOUNDBITE: (English) Vox Pop: "They destroyed our country, everyone before the war, everyone had a job now everyone looking for a job." 18. Civilian job seekers registering with soldier STORYLINE: Baghdad's self-proclaimed "executive committee" declared on Wednesday that it was in direct and cooperative talks with US officials over the governance of the capital. Secretary of the committee Jawdat K Al Obiedy said he had a meeting "every day" with the American team, "coordinating the main issues." In the absence of law and order, the executive committee has formed to improve security and provide basic facilities and services like electricity and water, across Baghdad province. It is headed by Mohammed Mohsen al Zubaydi, and claims to draw on the support of the major tribes in the Baghdad province. In West Baghdad a brother of a former member of Saddam Hussein's regime said it was likely Iraq had got rid of some but not all of its weapons of mass destruction before the US military took over the country. Jamal Kamel's brother Hussain was reportedly involved with some of Iraq's weapons programmes, as well as being married to Saddam Hussein's daughter. After fleeing to Jordan in 1995 Hussain declared his opposition to Saddam Hussein but was later lured back to Iraq with the promise he would be safe, but was executed the following week. Elsewhere in Baghdad outside the Republican Palace US soldiers dispersed a crowd of restless job seekers whom had been called there to register their skills with the US military. US soldiers fired some shots and arrested one man. A TV engineer was slightly wounded in the arm. ************************************************************************************************************* 11:24:15 Russia N Korea 11:24:40 sitting around a table **************************************************************************************************************** 11:26:57 who sars: who warns against sars in asia and toronto 11:27:15 busees 11:27:17 sot:" there are several reasons, we review our travel advice, we look at it and then determine to extend it to various locations, we recomned that they consider postponing non-essential travel to China and Toronto. The reasons for this is because there is local transmission outside the hospital, cases are being exported 11:28:26 medical checkpoint 11:28:35 "the recommendation is in place for the next 3 weeks, at that point we can reevaluate that recommendation..." ***************************************************************************************************************** 11:29:06 Cyprus Travel 11:29:47 various shots of checkpoint 11:30:29 close-up of barbed wire 11:30:39 gate closing 11:30:45 sots (not in english) STORY: Cyprus Travel 2 - WRAP Adds soundbites to crowds at checkpoint following lifting of travel restrictions LENGTH: 2:29 FIRST RUN: 1200 RESTRICTIONS: No Access Cyprus TYPE: Natsound SOURCE: CYBC STORY NUMBER: 372364 DATELINE: Nicosia, April 23 2003 SHOTLIST: (FIRST RUN 1030 FLASH APRIL 23 2003) 1. Wide of crowd gathered on Greek side of Cypriot check point (FIRST RUN 1200 EUROPE UPDATE APRIL 23 2003) 2. Mid shot of check point officials at work 3. Close of identification card being inspected by official 4. Wide of crowd outside police checkpoint 5. Close of sign tilts down to crowd below 6. Various of people walking across border 7. Wide of check point 8. Close of sign post 9. Close of barbed wire 10. Wide of car passing checkpoint 11. Close of papers on desk pulls out to check point police officer at desk 12. SOUNDBITE (Greek) Vox Pop, Turkish Cypriot: "Yes, I want to go (to Mathiatis village). This man is from my village." (Reporter question) "Which road did you take? Was it from above the village?" Turkish Cypriot woman: "No it's the same one. We went from Nicosia to Mathiatis." Turkish Cypriot man: "Yes, there's a British cemetery there and the mosque. It is 200 years old." 13. SOUNDBITE (Greek) Vox Pop, elderly Turkish Cypriot woman: "The road over here has opened and we have hurried to come over. And now we will have to go back. I've told them I want to stay here to rest for a while and then go back." 14. Close of mounted security mirror showing view of check point (FIRST RUN 1030 FLASH APRIL 23 2003) 15. Wide of police check point STORYLINE: Cyprus on Tuesday both welcomed and criticised a Turkish Cypriot decision to lift travel restrictions between the war-divided island's two territories. The breakaway Turkish Cypriot state on Monday lifted decades-long restrictions on Turkish Cypriots wanting to cross from the island's Turkish-occupied north to the Greek Cypriot-controlled south. Cyprus has been split into a Greek Cypriot-controlled south and a Turkish-held north since Turkey invaded in 1974 after a short-lived coup by supporters of union with Greece. A breakaway Turkish Cypriot state in the north is recognised only by Turkey, which maintains 40,000 troops there. Under rules set by the breakaway state's Cabinet on Monday, Greek Cypriots must present their passports when crossing into the occupied north. The Turkish move came four days after the signing of Cyprus' accession agreement with the European Union. Under the agreement the whole island will become a full EU member on May 1, 2004, but EU laws and benefits will not apply to the occupied north pending reunification. ****************************************************************************************************************** 11:31:49 uk ireland 11:32:01 blair gets out of car and shakes hands with those at door 11:32:10 sot with Blair: "I hope very much that we will be able to go back into these, the loosers will be the people of N Ireland, the people in N Ireland know what the problem is and whay there's an impass..." 11:32:54 sot:"...does that mean an end to all...including targeting, concealment of weapons, when they say that they are committed to put arms through, does that mean all arms so that the process is complete, when they support the Good Friday agreement, if the two govt and parties fullfill their obglications, that that means the complete and final closure of the conflict?" STORY: UK NIreland - REPLAY Blair says IRA hasn't made a clear commitment to lasting peace LENGTH: 2:23 FIRST RUN: 1200 RESTRICTIONS: Part No UK/Ireland/CNNi/Euronews/Net TYPE: Eng/Nat SOURCE: SKY/APTN STORY NUMBER: 372365 DATELINE: London, April 23 2003/ File SHOTLIST: SKY - No UK/Ireland/CNNi/Euronews/Internet Belfast, 3 March 2003 1. Irish Prime Minister Bertie Ahern and officials at Hillsborough 2. Ahern with British Prime Minister Tony Blair SKY - No UK/Ireland/CNNi/Euronews/Net London, 23 April 2003 3. SOUNDBITE: (English) Tony Blair, British Prime Minister: "I hope very much over these coming days we will be able to go back into these matters again and reach agreement, because if we don't the losers will be the people of Northern Ireland. As I say the reason I'm making this statement now and talking to you is that I think it's only right in view of all the speculation there's been in the discussion reported over the last few days, that the people of Northern Ireland know what the problem is and the impasse and how we overcome it." SKY - No UK/Ireland/CNNi/Euronews/Net Belfast, 3 March 2003 4. Officials at Hillsborough SKY - No UK/Ireland/CNNi/Euronews/Net London, 23 April 2003 5. SOUNDBITE: (English) Tony Blair, British Prime Minister: "When the IRA say that their strategies and their disciplines will not be inconsistent with the Good Friday agreement, does that mean an end to all activities inconsistent with the Good Friday agreement, including targeting the procurement of weapons, so-called punishment beatings and so forth? Secondly, when they say that they are committed to putting arms beyond use, through the decommissioning, does that mean all arms, so that the process is complete? And thirdly when they say that they support the Good Friday agreement and want it to work, does that mean that if the two governments and the other parties fulfill their obligations under the Good Friday agreement and the Joint Declaration, that that means the complete and final closure of the conflict?" APTN - APTN Clients Only Washington DC 12 March 2003 6. Sinn Fein leader Gerry Adams and Sen Edward Kennedy STORYLINE: The Irish Republican Army has failed to make the "clear and unambiguous" commitments to peace that the British and Irish governments had sought in their efforts to revive self-government in Northern Ireland, British Prime Minister Tony Blair said on Wednesday. Blair noted that the leaders of the IRA-linked Sinn Fein party, Gerry Adams and Martin McGuinness, had said that the IRA commitments were clear. Sinn Fein presented the proposed statement confidentially to the two governments April 13. "So far as we're concerned and the Irish government and the US government, they are not clear and unambiguous. They are uncertain," Blair said. Blair and Irish Prime Minister Bertie Ahern have been seeking an agreement to revive the four-party coalition administration created under Northern Ireland's Good Friday Agreement of 1998. They had hoped to announce an agreement April 10 - the fifth anniversary of the Good Friday pact - but called off a joint appearance in Northern Ireland because of dissatisfaction with the IRA's proposal. Protestant unionists have said they cannot work with Sinn Fein while the IRA retains weapons stockpiles, gathers intelligence for potential attacks, and administer punitive beatings on opponents within its Catholic power bases. ********************************************************************************************************* 11:34:26 Russian Human Traffic 11:34:34 showing faces to camera, the men are crying 11:34:54 sot (not in english) 11:35:23 showing bruises on their skin 11:35:42 group of men sitting in room 11:35:48 man filling out paper work 11:35:53 id card STORY: Russia Human Traffic - REPLAY People smuggling ring is busted by authorities LENGTH: 1:40 FIRST RUN: 1200 RESTRICTIONS: No Access Russia TYPE: Russian/Nat SOURCE: Police Video via RTR STORY NUMBER: 372360 DATELINE: Tula, April 20 2003 SHOTLIST: 1. Pan from mobile phone to two men on the floor with their hands behind their heads 2. Arrested alleged trafficker being lifted up for the camera 3. Another arrested trafficker having his face shown to the camera 4. Group of Indian men standing in room - they were allegedly being trafficked and then held captive 5. Doorway 6. Arrested Russian woman 7. SOUNDBITE: (Russian) Alexander Murashev, Federal Security Service Spokesman: "(Traffickers) took the immigrants to the place near Moscow, to Tula, and kept them in captivity for over a month, demanding money, something in a region of 4000 US dollars per person." 8. Various of released would-be immigrants displaying scars allegedly from traffickers' beatings 9. Would-be immigrants describing their ordeal to Russian translator (answers are not comprehensible) 10. Indian men sitting together in room 11. Federal Security Service officers filling out form 12. Close-up of travel document and photograph 13. Indian men with translator in room 14. Exterior of house where immigrants were kept STORYLINE: Russian security agents freed nine Indian nationals who had been held by kidnappers in western Russia, the Federal Security Service (FSB) said on Tuesday. The group had been seized by an international crime ring and held in the city of Tula, about 200 kilometres (125 miles) south of Moscow, according to the FSB. Two Pakistani-born Russian citizens, who were the suspected masterminds behind the abduction, were arrested. The crime ring includes members living in other East European countries said the FSB, has long been involved in trafficking illegal migrants from Pakistan, India, Bangladesh and other countries through Russia, Ukraine and Belarus to the West. According to the FSB, the traffickers had promised to take the Indians to an unidentified Western European country via Russia. Once the Indians arrived in Russia, the traffickers demanded more money for their services - which the Indians refused to pay. So the gang allegedly locked the Indians in an abandoned house in Tula and kept them there for over a month. The Indians said they were repeatedly beaten in the smugglers' attempt to extort money. The FSB did not disclose how it received the information that led them to the arrests. Thousands of illegal immigrants flow across international borders every year in the hope of a better life elsewhere. Russia is one of the most common transit points in their journeys from Asia to Europe. end of bulletin ***************************************************************** 11:38:29 Sudan TV 11:40:31 Kuwait TV ************************************************************************** 12:00:30 Middel East Two 12:00:51 replay Mideast Cabinet ************************************************************************** 12:04:02 replay Russia N Korea ************************************************************************** 12:06:41 replay Baghdad Chalabi ************************************************************************** 12:08:47 replay Baghdad Politics 2 ************************************************************************** 12:12:ish CHANGE TAPES **************************************************************************

Gulf Oil Spill hearing/Senate Homeland Security and Govt Affairs Cmte Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. PANEL #1 The Honorable Janet A. Napolitano Secretary U.S. Department of Homeland Security Rear Admiral Peter V. Neffenger Deputy National Incident Commander, U.S. Coast Guard U.S. Department of Homeland Security 14:36:18 Napolitano & Neffenger arrive 14:36:58 LIEBERMAN STATEMENT 14:37:46 our focus is on preparedness and response of our government and the private businesses 14:39:13 secretary of HS charged with coordinating response to major disasters 14:39:40 USCG responsible for managing oil spill cleanup *14:40:17 in fact much of the work being done by contractors hired by BP 14:40:39 oil companies spill response must be approved by MMS 14:41:59 did government have knowledge of disaster independent of what BP was telling it? 14:42:51 I regret that MMS leadership has chosen not appear before our committee today. *14:43:59 Bp required to submit plan to MMS. Under law this can be specific to rig. Only 10 years ago BP filed only regional plan. MMS satisfied without asking for more. (*satisfied with only regional response plan, rather than specific? *14:48:35 until those questions are answered satisfactorily, I don't see how any new offshore wells can be drilled 14:49:14 COLLINS statement 14:49:34 remember personal tragedy for 11 workers 14:51:23 how do we turn off this faucet of oil that is stuck open nearly a mile under water? 14:53:27 we must examine whether we need special requirements for drilling permits in these challenging conditions - believe president is right 14:54:05 we need to explore what level of preparedness MMS requires. 14:56:46 need to take a close look at liability caps to see if they are still accurate 14:56:58 this oil spill will be recorded as an epic catastrophe 14:57:31 NAPOLITANO statement 14:58:26 thanks men and women of coast guard *14:59:04 government has brought all resources to bear to limit impacts and make sure.made whole by British Petroleum SEGMENT [1] 2010/05/17 ************************************************ Gulf Coast Oil Spill Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. PANEL #1 The Honorable Janet A. Napolitano Secretary U.S. Department of Homeland Security Rear Admiral Peter V. Neffenger Deputy National Incident Commander, U.S. Coast Guard U.S. Department of Homeland Security 14:36:45 SENATOR JOE LIEBERMAN: GOOD AFTERNOON. THE HEARING WILL COME TO ORDER. 14:36:54 WE CONVENE TODAY TO ASSESS THE PRIVATE AND PUBLIC SECTOR 14:36:59 RESPONSE TO WHAT IS RAPIDLY AND OMINOUSLY BECOMING THE WORST OIL 14:37:04 SPILL IN AMERICA'S HISTORY. WE DO SO AS PART OF BELIEVE 14:37:08 COMMITTEE'S RESPONSIBILITY TO OVERSEE THE OPERATIONS OF 14:37:10 GOVERNMENT. AND IN THIS CASE SPECIFICALLY 14:37:15 THE INCIDENT MANAGEMENT OPERATIONS OF THE DEPARTMENT OF 14:37:18 HOMELAND SECURITY AND THE UNITED STATES COAST GUARD. 14:37:20 WE'RE NOT HERE TO DETERMINE HOW THE EXPLOSION OF THE OIL 14:37:25 WELL-KNOWN AS DEEPWATER HORIZON HAPPENED NOR DO WE SEEK TO 14:37:31 DETERMINE WHICH ELEMENTS OF THE WELL FAILED AND WHO'S 14:37:32 RESPONSIBLE TO THAT. THOSE ARE CRITICALLY IMPORTANT 14:37:34 QUESTIONS. BUT OTHER CONGRESSIONAL 14:37:39 COMMITTEES, EXECUTIVE BRANCH AGENCIES AND PRIVATE GROUPS HAVE 14:37:41 ALREADY BEGUN TO EXPLORE THOSE QUESTIONS. 14:37:46 OUR FOCUS TODAY IS ON PREPAREDNESS AND RESPONSE. 14:37:50 THE PREPAREDNESS AND RESPONSE OF OUR GOVERNMENT AND THE PRIVATE 14:37:57 BUSINESSES INVOLVED TO THIS ACCIDENT AND OIL SPILL AFTER 14:37:59 THEY OCCURRED. WHERE THE OIL COMPANIES AND 14:38:05 GOVERNMENT AGENCIES PREPARED FOR A DEEP WATER BLOWOUT LIKE THIS 14:38:08 ONE. AND HOW HAVE THEY PERFORMED IN 14:38:10 RESPONSE? THOSE ARE THE BIG QUESTIONS THAT 14:38:15 WE HOPE TO BEGIN TO ANSWER THIS AFTERNOON. 14:38:18 WE OWE IT TO THE AMERICAN PEOPLE TO LEARN FROM THIS CATASTROPHE, 14:38:21 NOT ONLY SO THAT WE CAN DO EVERYTHING WE CAN TO PREVENT 14:38:24 ANYTHING LIKE IT FROM HAPPENING AGAIN, BUT ALSO HAVING IN MIND 14:38:31 OUR FOCUS ON PREPAREDNESS IN RESPONSE SO THAT WE CAN 14:38:34 GUARANTEE THAT IF IT DOES HAPPEN AGAIN, THE OIL COMPANIES AND THE 14:38:39 GOVERNMENT WILL NOT BE LEFT TO SCURRY ABOUT TRYING TO FIGURE 14:38:42 OUT HOW TO STOP THE OIL GUSHING INTO THE GULF LIKE FIREFIGHTERS 14:38:48 TRYING TO EXTINGUISH FIRES ALREADY BURNING AND CONSUMING A 14:38:51 NEIGHBORHOOD. INSTEAD, HOPEFULLY THEY WILL 14:38:55 HAVE LEARNED LESSONS FROM THIS SPILL AND WILL BE MUCH BETTER 14:38:59 PREPARED TO RESPOND QUICKLY. UNDER THE HOMELAND SECURITY ACT, 14:39:05 AND HOMELAND SECURITY PRESIDENTIAL DIRECTIVE NUMBER 14:39:08 FIVE, THE SECRETARY OF HOMELAND SECURITY IS CHARGED WITH 14:39:12 COORDINATING THE FEDERAL RESPONSE TO MAJOR DISASTERS. 14:39:17 THE SECRETARY IS FURTHER CHARGED WITH COORDINATING THE ACTIVITIES 14:39:19 OF THE PRIVATE SECTOR AND NONGOVERNMENTAL PLAYERS IN 14:39:25 RESPONSE TO A DISASTER AND MUST ENSURE THAT DISASTER INFORMATION 14:39:27 IS GATHERED AND DISSEMINATED TO THE PUBLIC AND PUBLIC AND 14:39:31 PRIVATE SECTOR OFFICIALS. THE UNITED STATES COAST GUARD IS 14:39:38 SPECIFICALLY RESPONSIBLE FOR MANAGING A MARINE OIL SPILL 14:39:40 CLEANUP. A HOST OF OTHER AGENCIES OF OUR 14:39:46 GOVERNMENT, THE MINERALS MANAGEMENT SERVICE WITHIN THE 14:39:49 DEPARTMENT OF INTERIOR, THE NATIONAL OCEAN OGRAPHIC AND THE 14:39:58 ENVIRONMENTAL PROTECTION AGENCY HAVE RESPONSIBILITIES IN THIS 14:40:00 KIND OF CRISIS AND, OF COURSE, THE PRIVATE SECTOR COMPANIES 14:40:05 INVOLVED HERE HAVE ENORMOUS OBLIGATIONS UNDER LAW. 14:40:07 IN FACT, MUCH OF THE ACTUAL CLEANUP IS BEING CONDUCTED BY 14:40:13 CONTRACTORS BP HAS HIRED TO RESPOND TO THE SPILL. 14:40:17 AND IS PROVIDED BY LAW THE PRIVATE COMPANIES RESPONSIBLE 14:40:22 FOR THIS SPILL WILL PAY FOR THE CLEANUP REGARDLESS OF WHO WAS 14:40:25 ACTUALLY CARRYING OUT THE RESPONSE. 14:40:31 WE KNOW THAT THE OIL COMPANIES SPILL RESPONSE PLANS MUST BE 14:40:36 FILED AND APPROVED BY THE MINERALS AND MINING SERVICE FOR 14:40:42 WELLS AND BY THE U.S. COAST GUARD FOR DRILLING VESSELS OR 14:40:47 RIGS BEFORE ANY DRILLING CAN BEGIN. 14:40:51 THIS AFTERNOON WE'RE GOING TO ASK WHETHER BP HAD ADEQUATE 14:40:55 INCIDENT MANAGEMENT AND RESPONSE PLANS IN PLACE AHEAD OF TIME TO 14:41:00 GUIDE THEIR RESPONSE EFFORTS. DID THE MMS REQUIRE SUCH 14:41:07 ADEQUATE INCIDENT MANAGEMENT AND RESPONSE PLANS? 14:41:11 DID THE PLANS SPECIFICALLY COVER THE CONSEQUENCES OF A BLOWOUT 14:41:15 AND OIL GUSHING 5,000 FEET UNDER WATER? 14:41:18 WE WANT TO KNOW WHAT PLANS WERE IN PLACE TO GUIDE THE COAST 14:41:22 GUARD AND OTHER FEDERAL AGENCIES INVOLVED IN THE RESPONSE. 14:41:27 WHAT CAPABILITIES DID THE DEPARTMENT OF HOMELAND SECURITY, 14:41:29 THE DEPARTMENT OF DEFENSE AND OTHER AGENCIES MAKE AVAILABLE IN 14:41:33 THE EARLY DAYS OF THE OIL SPILL. DID THEY ACT QUICKLY ENOUGH? 14:41:39 AND WHAT RESPONSE CAPABILITIES WILL BE MADE AVAILABLE AS THE 14:41:42 DISASTER CONTINUES. WE'RE ALSO GOING TO ASK WHETHER 14:41:46 OUR GOVERNMENT WAS FORCED TO OVERRELY ON THE OIL COMPANIES 14:41:52 EXPERTISE HERE. DID THE GOVERNMENT HAVE 14:41:56 KNOWLEDGE OF THE DISASTER INDEPENDENT OF WHAT BP WAS 14:41:58 TELLING IT? I WOULD SAY MYSELF THAT I'VE 14:42:07 SPENT, SINCE THIS ACCIDENT AND SPILL, SOME TIME STUDYING WHAT 14:42:12 THE LAW REQUIRES OF THE OIL DRILLING COMPANIES IN OUR 14:42:14 GOVERNMENT. AND WHAT SHOULD BE ON THE 14:42:21 RESPONSE PLANS THAT WERE FILED AND APPROVED BY THE U.S. COAST 14:42:26 GUARD AND THE MINERALS AND MINING SERVICE FOR THE DEEP 14:42:29 HORIZON WELL. AND I MUST SAY THAT I EMERGENCY 14:42:34 WITH AN UNSETTLING TENTATIVE CONCLUSION AND QUESTIONS THAT I 14:42:40 HOPE CAN BE ANSWERED TODAY BY OUR WITNESSES. 14:42:44 THERE'S ONE SET OF WITNESSES THAT ARE NOT HERE. 14:42:46 AND I MUST SAY THAT'S FROM MMS. I REGRET THAT THE MMS LEADERSHIP 14:42:53 HAS CHOSEN NOT TO APPEAR BEFORE OUR COMMITTEE TODAY BECAUSE 14:42:58 REALLY THEY NEED TO BE ASKED THE SAME QUESTIONS I'M GOING TO ASK 14:43:02 HOMELAND SECURITY, COAST GUARD AND BP. 14:43:04 BECAUSE MMS, AS I MENTIONED, MUST APPROVE OR REJECT THE OIL 14:43:10 SPILL RESPONSE PLANS FOR WELLS, WHICH IS WHERE THIS ACCIDENT 14:43:15 OCCURRED BEFORE THOSE WELLS CAN BE DRILLED. 14:43:17 THE SECRETARY OF THE INTERIOR IN WHICH MMS IS HOUSED WILL FIRST 14:43:21 APPEAR TOMORROW BEFORE ITS COMMITTEE -- THE DEPARTMENT'S 14:43:25 COMMITTEE OF ORIGINAL JURISDICTION, THE ENERGY AND 14:43:26 NATURAL RESOURCES COMMITTEE. BUT I DO WANT TO SAY HERE THIS 14:43:30 AFTERNOON THAT IF APPROPRIATE AND CONSTRUCTIVE, OUR COMMITTEE 14:43:33 WILL ASK THE SECRETARY AND/OR LEADERSHIP OF THE MMS TO APPEAR 14:43:38 BEFORE US AT A LATER DATE. BUT HERE IN BRIEF IS SOME OF 14:43:43 THE -- WHAT I'VE CONCLUDED TENTATIVELY BASED ON MY OWN 14:43:47 INQUIRY AND THE QUESTIONS I BELIEVE MOST NEED TO BE ANSWERED 14:43:50 BY OUR WITNESSES. BP WAS REQUIRED TO SUBMIT AN OIL 14:43:54 RESPONSE PLAN TO THE MMS. UNDER THE LAW, THIS PLAN CAN BE 14:44:02 REGIONAL OR SPECIFIC TO A PARTICULAR WELL AND RIG. 14:44:05 ALMOST TEN YEARS AGO, IN DECEMBER, 2000, BP FILED ONLY A 14:44:10 REGIONAL RESPONSE PLAN. AND THE MMS ACCEPTED IT WITHOUT 14:44:15 ASKING FOR MORE. SO BP SATISFIED ITS LEGAL 14:44:19 REQUIREMENT. BUT THE QUESTION IS, WAS IT 14:44:28 ADEQUATE AND SHOULD THE MMS ASKED FOR MORE. 14:44:31 IT WAS MOST RECENTLY REVISED IN JANUARY OF LAST YEAR. 14:44:34 SO MY FIRST QUESTION IS, SHOULD THE GOVERNMENT HAVE BEEN 14:44:37 SATISFIED WITH ONLY A REGIONAL RESPONSE PLAN INSTEAD OF ONE FOR 14:44:40 EACH WELL? AND A REGIONAL RESPONSE PLAN 14:44:43 THAT WAS FILED ALMOST A DECADE AGO. 14:44:46 SECOND AND MORE IMPORTANT, DID OUR GOVERNMENT THROUGH THE 14:44:52 MINERALS AND MINING SERVICE REQUIRE AN OIL SPILL RESPONSE 14:44:56 PLAN ADEQUATE TO THE WIDEST RANGE OF POSSIBLE DANGERS 14:45:02 INCLUDING THE FAILURE OF A BLOWOUT PREVENTER? 14:45:04 IT SURE APPEARS THAT THEY DID NOT. 14:45:08 THE RESPONSE PLAN WHICH BP FILED AND WHICH WAS APPROVED BY THE 14:45:13 MINERALS AND MINING SERVICE AS REQUIRED INCLUDED AN APPENDIX 14:45:19 WHICH IDENTIFIES WORST CASE SPILL SCENARIOS AND PROPOSED 14:45:21 METHODS FOR RESPONDING. UNDER MMS REGULATIONS, THE PLAN 14:45:29 MUST ADDRESS AN UNCONTROLLED BLOWOUT AT A WELLS HIGHEST 14:45:37 CAPACITY AND AT ITS PLAN BP FORESAW A WORST CASE SCENARIO 14:45:41 FOR A DEEP WATER BLOWOUT RESULTING IN MORE THAN 250,000 14:45:49 BARRELS OF CRUDE OIL BEING DISCHARGED EVERY DAY. 14:45:52 AS PEOPLE WHO HAVE BEEN FOLLOWING THIS CRISIS KNOW, THAT 14:45:56 IS MUCH MORE THAN IS ACTUALLY BEING DISCHARGED IN THIS 14:45:59 HORRIFIC SPILL OCCURRING IN THE GULF TODAY. 14:46:01 THE ESTIMATES RANGE FROM A LOW OF 5,000 BARRELS DAILY TO A HIGH 14:46:06 OF 100,000 BARRELS DAILY. BUT HERE'S THE PROBLEM AS I SEE 14:46:11 IT AND WANT TO ASK ABOUT IT. IN ITS PROPOSED RESPONSE PLAN, 14:46:18 OIL SPILL RESPONSE PLAN APPROVED BY THE MINERAL AND MINING 14:46:22 SERVICE. BP SAID IT COULD USE BOOMS AND 14:46:28 DISBURSEMENTS TO COUNTER AND COLLECT MORE THAN 490,000 14:46:30 BARRELS A DAY. BUT THAT WAS AS I SEE IT MOSTLY 14:46:34 FROM THE SURFACE. WHERE BOOMS AND SKIMMING VESSELS 14:46:40 AND DISBURSEMENTS ARE MOSTLY EFFECTIVE. 14:46:45 AS FAR AS I CAN TELL AND KNOW AND WANT TO ASK, THOSE METHODS 14:46:51 DON'T EFFECTIVELY DEAL WITH THE ENORMOUS ACCUMULATION OF OIL 14:46:55 FORMING NOW UNDER WATER IN THE GULF. 14:46:59 REPORTEDLY AS LARGE AS 10 MILES LONG, 3 MILES WIDE AND 300 FEET 14:47:04 THICK. WAS THAT A FORESEEN CONSEQUENCE 14:47:12 OF A DEEP WATER WELL BLOWOUT? AND IF IT WAS, WHY DIDN'T THE 14:47:17 MINERAL AND MINING SERVICE OF THE DEPARTMENT OF INTERIOR 14:47:21 REQUIRE THAT OIL COMPANIES HAVE A BETTER PLAN FOR RESPONDING TO 14:47:24 THAT CONSEQUENCE? AND FINALLY, PERHAPS MOST 14:47:30 IMPORTANT, IN THE APPROVED BP RESPONSE PLANS, THERE APPEARS TO 14:47:34 BE IN THE END TOTAL RELIANCE ON THE BLOWOUT PREVENTER AS THE 14:47:38 LAST LINE OF DEFENSE. AS IF A BLOWOUT PREVENTER COULD 14:47:43 NOT FAIL. BUT BLOWOUT PREVENTERS HAVE 14:47:48 FAILED IN THE PAST. NONE WITH ANYWHERE NEAR THE 14:47:51 CONSEQUENCES OF THIS ONE. BUT THEY HAVE FAILED. 14:47:56 AND NO PLANS WERE FILED OR REQUESTED FOR WHAT TO DO TO 14:48:02 CONTROL AND STOP A SPILL IF A BLOWOUT PREVENTER IN DEEP WATER 14:48:08 FAILED, AS IT DID IN THE CURRENT CASE. 14:48:12 SO I WANT TO ASK WHY NOT? WHAT COULD BE DONE TO PREVENT 14:48:17 ANOTHER FAILURE OF A BLOWOUT PREVENTER OF DEEP WATER OR 14:48:21 CONTROL THE SPILL MORE QUICKLY AND EFFECTIVELY IF IT DOES? 14:48:28 UNTIL THOSE QUESTIONS ARE ANSWERED SATISFACTORILY, I DON'T 14:48:31 SEE HOW OUR GOVERNMENT CAN ALLOW ANY NEW DEEP WATER WELLS TO BE 14:48:34 PERMITTED AND DRILLED. AND I SAY THAT WITH REGRET 14:48:40 BECAUSE I KNOW HOW IMPORTANT OFFSHORE AMERICAN OIL IS TO OUR 14:48:44 NATION'S ENERGY INDEPENDENCE. BUT THE U.S. GOVERNMENT HAS A 14:48:50 RESPONSIBILITY FOR PROTECTING THE PUBLIC SAFETY THAT IS MORE 14:48:52 IMPORTANT. AND THAT RESPONSIBILITY, I FEAR, 14:48:56 WAS NOT FULFILLED IN THIS CASE. PRIOR TO THE ACCIDENT OCCURRING. 14:49:04 THE RESULT IS THE HUMAN ENVIRONMENTAL AND ECONOMIC 14:49:07 CATASTROPHE WE ARE NOW WITNESSING IN THE GULF. 14:49:09 SENATOR COLLINS? THANK YOU, MR. CHAIRMAN. 14:49:15 MR. CHAIRMAN, AS WE BEGIN THIS OVERSIGHT HEARING INTO WHAT IS 14:49:21 CERTAINLY AN ENVIRONMENTAL CATASTROPHE AND WHAT IS LIKELY 14:49:27 TO BE AN ECONOMIC DISASTER, LET US ALSO REMEMBER WHAT A PERSONAL 14:49:34 TRAGEDY THIS INCIDENT IS FOR THE FAMILIES OF THE 11 WORKERS WHO 14:49:41 LOST THEIR LIVES AFTER THE EXPLOSION ROCKED AND THEN SANK 14:49:46 THE DEEP WATER HORIZON OIL DRILLING PLATFORM NEARLY FOUR 14:49:49 WEEKS AGO. WHEN THIS CATASTROPHE BEGAN BUT 14:49:57 NONE OF US KNOWS WHEN IT WILL END. 14:50:02 TODAY, 27 DAYS AFTER THE FATAL EXPLOSION AND FIRE, OIL 14:50:07 CONTINUES TO GUSH FROM THE WELL HEAD NEARLY A MILLION BELOW THE 14:50:10 SURFACE OF THE GULF OF MEXICO. DESPITE RECENT SUCCESSFUL 14:50:16 EFFORTS TO SIPHON OFF A PORTION OF THE OIL SPEWING FROM THE 14:50:22 BROKEN PIPE, THE WATERS OF THE GULF ARE SLOWLY BECOMING A SEA 14:50:26 OF CRUDE OIL. THE EXPANDING PLUME IS MENACING 14:50:33 THE FRAGILE ECOSYSTEMS IN THE GULF POTENTIALLY DAMAGING A VAST 14:50:39 ARRAY OF SEA LIFE, THE ENVIRONMENT AND THE FUTURES OF 14:50:44 AMERICANS WHO WILL LIVE AND WORK ALONG THE GULF COAST. 14:50:49 NOAA HAS ESTIMATED THAT EACH DAY SOME 5,000 BARRELS OF OIL ARE 14:50:53 FLOWING INTO THE WATERS OF THE GULF. 14:50:59 BUT RECENT EXPERTS ESTIMATES PLACE THAT NUMBER AS HIGH AS 14:51:03 70,000 BARRELS. HUNDREDS OF FEDERAL OFFICIALS, 14:51:09 COAST GUARD PERSONNEL, SCIENTISTS, ENGINEERS AND 14:51:13 OFFICIALS FROM BRITISH PETROLEUM SEARCH FOR SOLUTIONS TO FIX THIS 14:51:15 URGENT PROBLEM. HOW DO WE TURN OFF THIS FAUCET 14:51:22 OF OIL THAT IS STUCK OPEN NEARLY A MILE UNDER THE WATER? 14:51:28 IN THE RECENT WEEKS, WE HAVE LEARNED MUCH ABOUT THE 14:51:33 EXPLOSION, FIRE AND CHALLENGING RESPONSE EFFORTS. 14:51:36 BUT THERE IS STILL FAR TOO MANY UNANSWERED QUESTIONS. 14:51:39 AT TODAY'S HEARING WE WILL ASK WHAT THE GOVERNMENT AND INDUSTRY 14:51:44 COULD HAVE DONE DIFFERENTLY IT OFF AVOID THIS CATASTROPHE AND 14:51:53 HOW THE DAMAGE OF THE GULF OF MEXICO CAN BE MITIGATED AND HOW 14:51:55 THE SPILL CAN EVENTUALLY BE STOPPED. 14:51:58 AS THE COAST GUARD COMMANDANT HAS NOTED, THE TECHNOLOGICAL 14:52:02 FEATS AND INGENUITY NOTED TO STOP THIS LEAK HAVE PARALLELS TO 14:52:09 THE APRIL 1970 RESCUE MISSION FOR APOLLO 13. 14:52:14 IN RESPONDING TO THIS CATASTROPHE, OUR NATION FACES A 14:52:20 SIMILAR HERCULEAN ENGINEERING TASK. 14:52:23 BUT THIS TIME IN A DEEP OCEAN ENVIRONMENT THAT IS DARK, COLD 14:52:26 AND UNFORGIVING. THERE ARE SOME 90 RIGS DRILL IN 14:52:33 THE GULF RIGHT NOW PROVIDING 1.7 MILLION BARRELS OF OIL A DAY. 14:52:38 OR NEARLY ONE-THIRD OF TOTAL U.S. PRODUCTION. 14:52:45 ACCORDING TO THE FEDERAL MINERALS MANAGEMENT SERVICE, 14:52:49 ONLY .7% OF ACTIVE DRILLING PLATFORMS ARE SEARCHING FOR OIL 14:52:55 IN WATERS DEEPER THAN 1,000 FEET. 14:53:00 YET, MORE THAN 14:53:44 , TO THE APPROVAL OF FURTHER DRILLING IN 14:53:45 DEEP WATERS. MMS HAS THE RESPONSIBILITY FOR 14:53:53 REVIEWING AND APPROVING OIL RESPONSE PLANS FOR DRILLING 14:53:57 CONDUCTED ON OFFSHORE RIGS LIKE THE DEEP WATER HORIZON. 14:54:02 WE NEED TO EXPLORE WHAT LEVEL OF PREPAREDNESS MMS REQUIRES OF 14:54:08 COMPANIES SEEKING TO DRILL IN THIS HAZARDOUS ENVIRONMENT. 14:54:10 . ... -- 14:54:12 FOR THE COAST GUARD TO EFFECTIVELY PERFORM ITS ROLE IN 14:54:16 MARINE ENVIRONMENTAL PROTECTION, IT MUST WORK CLOSELY WITH MMS 14:54:20 AND THE PRIVATE SECTOR TO BE PREPARED FOR A WORST-CASE 14:54:23 SCENARIO. TO THAT END, I WAS SURPRISED TO 14:54:26 LEARN THAT THE CURRENT LEASE HAS NO REQUIREMENT FOR MMS TO SHARE 14:54:36 OIL SPILL RESPONSE PLANS WITH THE COAST GUARD. 14:54:38 HOW CAN THAT BE? IT SEEMS TO ME THAT MANDATING 14:54:42 CONCURRENT COAST GUARD APPROVAL OF THESE PLANS IS THE COMMON 14:54:46 SENSE CHANGE THAT WE SHOULD MAKE IMMEDIATELY. 14:54:50 TODAY WE WILL ALSO HEAR MORE ABOUT THE DEPARTMENT OF 14:54:53 HOMELAND SECURITY'S COORDINATION OF THE RESPONSE TO THE SPILL. 14:54:58 THE FEDERAL GOVERNMENT AND THE PRIVATE SECTOR HAVE COMMITTED 14:55:02 SUBSTANTIAL RESOURCES TO RESPOND TO THE SPILL. 14:55:06 THOSE EFFORTS WILL CERTAINLY CONTINUE. 14:55:09 BUT CONCERNS HAVE BEEN RAISED REGARDING THE ADEQUACY AND 14:55:15 TIMELINESS OF RESOURCES COMMITTED TO THIS EFFORT IN THE 14:55:20 INITIAL DAYS OF THE BLOWOUT. FURTHERMORE, WITH THE 14:55:27 ADMINISTRATION'S PROPOSED $75 MILLION CUT IN THE COAST GUARD 14:55:32 BUDGET, IT IS A QUESTION IN MY MIND WHETHER THE COAST GUARD CAN 14:55:37 CONTINUE TO MAINTAIN SUFFICIENT CAPABILITIES TO RESPOND TO THIS 14:55:41 AND FUTURE DISASTERS ALONG WITH PERFORMING ITS MYRIAD OTHER 14:55:49 MISSIONS. SURELY, THIS CATASTROPHE SHOULD 14:55:51 PROMPT THE ADMINISTRATION TO RECONSIDER THE ILL-CONCEIVED AND 14:55:57 BUDGET CUTS. IT IS ALWAYS THE COAST GUARD, 14:56:01 WHETHER IT IS HURRICANE KATRINA, THE CRISIS IN HAITI, OR THE OIL 14:56:08 SPILL IN THE GULF COAST REGION, THAT IS ALWAYS FIRST TO RESPOND. 14:56:13 AND THE LAST THING WE SHOULD BE DOING IS REDUCING THE NUMBER OF 14:56:18 COAST GUARD PERSONNEL, UNIFORMED PERSONNEL, BY MORE THAN 1000 14:56:22 INDIVIDUALS, AS THE ADMINISTRATION'S BUDGET 14:56:27 PROPOSES. FINALLY, THE PRIVATE SECTOR MUST 14:56:30 ACCEPT RESPONSIBILITY FOR THIS FAILURE IN MODERN ENGINEERING, 14:56:38 AT THE LIABILITY -- AND WE NEED TO TAKE A CLOSE LOOK AT THE 14:56:43 LIABILITY CAPS TO SEE IF THEY ARE STILL ADEQUATE. 14:56:46 THIS OIL SPILL, WHEN IT FINALLY DOES CONCLUDE, WILL BE RECORDED 14:56:50 AS AN EPIC CATASTROPHE WHOSE IMPACTS ARE LIKELY TO BE FELT 14:56:55 FOR A LONG TIME TO COME. THANK YOU VERY MUCH, SENATOR 14:57:01 COLLINS. WE WILL GO RIGHT TO SECRETARY 14:57:03 BOLLER TOTTEN. -- SECRETARY NAPOLITANO. 14:57:08 TO SAY THE OBVIOUS, YOU HAVE ONE OF THE TOUGHEST JOBS IN AMERICA 14:57:12 BUT I APPRECIATE WHAT YOU DO EVERY DAY AND YOUR WILLINGNESS 14:57:14 TO COME BEFORE US. THE OVERSIGHT OF ORIGINAL 14:57:18 JURISDICTION OVER YOUR DEPARTMENT FOR THIS TESTIMONY 14:57:23 THIS AFTERNOON. THANK YOU. 14:57:28 THANK YOU, MR. CHAIRMAN, SENATOR COLLINS, MEMBERS OF THE 14:57:32 COMMITTEE. I LOOK FORWARD TO THE 14:57:34 OPPORTUNITY TO TESTIFY ABOUT THE RESPONSE TO THE BP OIL SPILL IN 14:57:40 THE GULF OF MEXICO. SOME OF YOUR QUESTIONS ARE 14:57:43 PROBABLY BETTER DIRECTED TO THE DEPARTMENT OF INTERIOR OR 14:57:47 BRITISH PETROLEUM ITSELF, BUT I WILL NOT BE -- I WILL BE 14:57:54 TESTIFYING ABOUT WHAT HAPPENED, THE ORI 14:57:57 AND THEN REAR ADMIRAL PETER NEFFENGER IS HERE TO ANSWER ANY 14:58:01 QUESTIONS OF A TECHNICAL NATUREA THAT I'M NOT MYSELF ABLE TO 14:58:05 ANSWER, ALTHOUGH I MUST SAY I ARE NOT ABLE 14:58:07 HAVE LEARNED, AS WE ALL HAVE, AE UTT ABOUT OIL SPILLS OVER THEBO 14:58:12 LAST FOUR WEEKS.IL I WANT TO BEGIN BY THANKING THE 14:58:16 MEN AND WOMEN OF THE COAST GUARD WHO HAVE BEEN AT THIS EVENT FROM 14:58:21 ITS BEGINNING. THEY HAVE WORKED SWIFTLY, THEY 14:58:24 HAVE WORKED TIRELESSLY INTIRELEY RESPONSE TO WHAT, AS SENATOR 14:58:29 COLLINS RIGHTLY NOTED, IS ONE OY THE MOST DEVASTATING 14:58:33 ENVIRONMENTAL DISASTERS THIS NATION HAS EVER FACED. 14:58:35 AND I ALSO WOULD LIKE TO EXPRESS MY OWN SYMPATHIES TO THE ENVMENL 14:58:40 EVMILIES OF THE WORKERS WHO WERE KILLED IN THE INITIAL EXPLOSION. 14:58:43 IT WAS A TERRIBLE HUMAN TRAGEDY EVEN AS WE CONTINUE TO DEAL WITE 14:58:48 THE ENVIRONMENTAL OUTFLOW FROM IT. 14:58:50 IT IS A CONSTANTLY-EVOLVING CONT SITUATION. 14:58:54 THE FEDERAL GOVERNMENT HAS BROUGHT ALL RESOURCES TO BEAR TH 14:58:56 LIMIT THE SPILL'S ENVIRONMENTALO ECONOMIC AND PUBLIC HEALTH 14:59:00 IMPACTS AND INSURE THAT COMMUNITIES AND NATURAL LIMIT 14:59:03 RESOURCES OF THE GULF COAST ARE RESTORED AND MADE WHOLE BY 14:59:09 BRITISH PETROLEUM. DHS, AS YOU NOTED S THEDHS 14:59:15 PRINCIPAL COORDINATING AGENCY. I BELIEVE THIS IS THE FIRST TIME 14:59:20 IT'S ACTUALLY BEEN OVERLAID ON THE NATIONAL RESPONSE FRAMEWORK 14:59:24 ENABLING US TO COORDINATE ACROSS NO. 5 14:59:26 THE MANY FEDERAL AGENCIES AND TO DO THE INTERAGENCY CONSULTATIONC 14:59:31 AND INVOLVEMENT NECESSARY FORENA THIS BILL. 14:59:36 WE ARE LITERALLY WORKING 24/7 TN INSURE THE EFFICIENT DEPLOYMENT 14:59:43 OF RESPAPONSE, ASSETS, PERSONNEL AND EQUIPMENT, AND THE IMPACT TI 14:59:47 DATE SPEAKS OF THEIR EXTENSIVE EFFORTS. SAKS 14:59:50 FIRST, I'D LIKE TO GIVE YOU A QUICK UPDATE ON THE CURRENTIVE 14:59:53 STATUS AS OF THE TIME I LEFT,STS AND THEN I WOULD LIKE TO GIVE 15:00:20 more than 17-thousand personnel in gulf region, 2100 volunteers trained, 750 vessels currently responding: skimmers, tugs, barges, recovery vessels 15:00:55 deployed 1.7 million foot of boom, another 1.9 million foot in supply chain *15:01:20 insure we can respond within 24 hours, or 4 or 5 miles reported of oil hitting shore. 15:01:45 more than 6.6 million gallons oily water recovered 15:02:06 17 staging areas set up - 17,500 national guard members approved. No reported delays or closures to shipping. No vessels required decontamination 15:02:43 yesterday BP attempted another test by inserting small pipe 15:02:56 BP reports the pipe is recovering some oil and gas, no confirmation on rate and flow 15:03:21 we will continue to bring all resources to bear until well is tapped, oil is cleaned up, and claims are paid 15:03:41 federal scientists continue provide oversight and expertise to BP **15:04:07 the response to this incident began immediately and has remained constant and strong over the last four weeks 15:04:24 coast guard was first on scene 15:04:38 april 21: named mary landry regional response coordinator 15:05:37 [Napolitano reads timeline of 'immediate' govt response] *15:06:04 no oil leak was apparent. *15:06:24 the next day, Saturday april 24th BP found the first two leaks. 15:06:51 on Wednesday first controlled boom 15:06:58 later that day BP discovered additional leak *15:08:02 doing everything we can to make sure personnel and equipment efficiently deployed and utilized. 15:08:52 government has mobilized best scientists and experts to work with BP 15:09:31 we are keeping the public engaged and making sure people who want *15:09:41 we are ensuring BP as responsible party is paying cost of cleanup and compensating 15:09:58 claims can be filed online, an access point we've been urging BP to make available for weeks *15:10:15 BP has not yet denied a claim 15:11:18 LIEBERMAN questions *why not prepared to deal with this kind of blowout?* *15:12:46 NAP: before the blowout it is clear there was assumption BOP would never fail. Plans submitted based on that assumption. 15:13:12 NAP: there have been extensive plans prepared under national response framework 15:13:34 NAP: those plans not only exist but are exercised 15:14:15 NAP; before spill there was overreliance on BOP. Post-spill there was extensive planning exercise framework in place. *but those drills were not for deepwater blowout?* 15:15:05 JOE what do you do when deepwater blows? What do you do with oil under the water *trained for dealing with consequences of deepwater?* 15:15:45 NEFF we do however drill for massive oil releases *prepare for possibility of BOP failure?* 15:18:38 NEFF this spill raises a lot of questions like that *15:18:48 NEFF we certainly never anticipated ongoing release of this magnitude. Have to go back and look at planning for various contingency plans. 15:19:54 NAP further deepwater permits are going to be stopped until this is investigated 15:20:15 all working together to say 'what power should MMS have had that it didn't?' 'was there overreliance on the BOP?' *15:20:45 this isn't about who's responsible for paying. Our work is to make sure the well is capped, make sure it is cleaned up, make sure oil is prevented from hitting landfall, make sure claims are paid 15:21:30 COLLINS questions *why wouldn't you have coast guard share info with MMS, also be responsible for co-approval of plan?-one agency approves plan above water, different agency approves plan for wellehead. Broaden USCG responsibility?* 15:22:30 NAP a lot will be looked at 15:22:42 NEFF I would concur, we need to look *what is assessment of expertise we have today in government to deal with spills of national significance?* 15:26:04 NEFF we have capability now and people who have looked at this. In private industry *15:26:25 NEFF I do believe we have capability.been impressed with what ive seen. *resources adequately deployed by BP?* 15:28:37 NAP this was an evolving spill *15:28:45 NAP I would like to reserve judgment on adequacy of private sector response 15:29:00 NAP heads were in Washington very quickly.they have been in command centers 15:29:24 15:29:24 15:30:12 McCAIN questions *best/worse case scenarios* 15:31:15 NAP worst case scenario is we'll be at this for quite a while *optimism?* **15:32:04 I'm just taking it day by day. We are in middle of this crisis. 15:33:55 *border crisis* 15:35:43 I want to know whether you're going to send Guard to the border or not? 15:36:39 homes being violated. 15:38:00 NAP not the kind of law I would have signed. Bad law enforcement. 15:39:49 LANDRIEU questions *when will flow be stopped? Others, etc.* 15:48:39 PRYOR questions 15:49:21 NEFF what OPA of 1990 provides is op to reach into emergency fund 15:49:37 NEFF initial 50 million dollars available, can take one time 100 million dollars *budget hampered? 15:50:38 NEFF budget situation has not hampered *exercises* *15:52:54 NEFF there has been improved response. Improved over Valdez 15:53:35 NEFF we think we have pretty robust exercise program 15:55:31 LIEBERMAN questions *consequences (plume)* 15:55:48 NAP we have to be careful about what is being assumed about undersea plume 15:56:04 NAP some of early reports made based on observation 15:56:20 NAP need to continue to watch undersea plume as one develops 15:56:37 NAP that process being looked at with consortium of govt scientists 15:56:52 NAP NOAA director responsed to statements that seemed inaccurate 15:57:03 NAP EPA has approved undersea use of dispersants *plumes: can move from source?* 15:58:42 NEFF we're preparing for potential impact on southern florida coast 15:58:53 NEFF likely oil picked up will be heavily weatherd. Likely to be tarballs, a little easier to cleanup. More manageable. SEGMENT [1] 2010/05/17 ************************************************ Gulf Coast Oil Spill Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. 15:00:01 YOU SOME DETAIL ON THE ORIGINAL RESPONSE BECAUSE IT IS OF SOME 15:00:07 IMPORTANT INTEREST BY H OF YOU.E BY MANY OF YOU. 15:00:11 MORE THAN 17,000 PERSONNEL ARE CURRENTLY IN THE GULF REGION 15:00:14 CONDUCTING RESPONSE ACTIVITIES. IN ADDITION, MORE THAN 2100 15:00:19 VOLUNTEERS HAVE BEEN TRAINED TO HELP DEAL WITH ANY POTENTIAL 15:00:22 EFFECTS OF OIL ONSHORE. MORE THAN 750 VESSELS ARE 15:00:26 CURRENTLY RESPONDING TO THIS SPILL INCLUDING SKIMMERS, TUGS, 15:00:32 BARGES AND RECOVERY VESSELS THAT ASSIST IN CONTAINMENT AND 15:00:36 CLEAN-UP EFFORTS. THIS IS IN ADDITION TO DOZENS OF 15:00:39 AIRCRAFT, REMOTELY-OPERATED VEHICLES AND OTHER ASSETS BEING 15:00:43 DEPLOYED. WE HAVE DEPLOYED 1.7 MILLION 15:00:48 FOOT OF BOOM TO DATE, AND WE HAVE ANOTHER 1.9 MILLION FEET OF 15:00:53 BOOM IN THE SUPPLY CHAIN. AIRCRAFT ARE CONSTANTLY 15:00:57 MONITORING THE INTEGRITY OF THE BOOM AND ARE DIRECTING POLLUTION 15:01:01 RESPONSE TEAMS TO MAKE NECESSARY ADJUSTMENT TO THE LINES. 15:01:06 WE HAVE, ARE ABLE WITH THESE SUPPLIES TO INSURE THAT WE CAN 15:01:13 RESPOND WITHIN 24 HOURS OR 5 MILES OF OIL HITTING SHORE, 15:01:19 WHICHEVER WOULD BE SOONER. LET ME JUST SAY THAT THE BOOM IS 15:01:23 SET UP AND DEPLOYED IN STAGING AREAS SO THAT IT CAN BE DEPLOYED 15:01:27 WITHIN 24 HOURS OR 5 MILES OF OIL, WHICHEVER WOULD BE SOONER. 15:01:32 MORE THAN 6.6 MILLION GALLONS OF OILY WATER HAVE BEEN RECOVERED, 15:01:38 APPROXIMATELY 625,000 GALLONS OF DISPERSANT HAVE BEEN APPLIED. 15:01:42 THIS INCLUDES APPROXIMATELY 45,000 GALLONS APPLIED SUBSEA, A 15:01:48 METHOD THAT HAS BEEN APPROVED BY THE NATIONAL RESPONSE TEAM. 15:01:52 AND FOR THE FIRST TIME.ND FOR SEVENTEEN STAGING AREAS ARE 15:01:57 CURRENTLY SET UP TO PROTECTRRENO VITAL SHORELINE. 15:02:00 WE HAVE APPROVED THE USE OF UP TO 17,500 NATIONAL GUARDTO 15:02:04 MEMBERS, MORE THAN 1450 AREMBER, CURRENTLY DEPLOYED. 15:02:08 ALL SHIPPING CHANNELS AND PORTSG REMAIN OPEN IN THE GULF COAST 15:02:12 REGION. THERE ARE NO REPORTED DELAYS OR 15:02:15 CLOSURES TO SHIPPING. NO VESSELS HAVE REQUIRED 15:02:18 CLEANING OR DECONTAMINATION, BUT OUR TEAMS ARE ON STANDBY IF SUCH 15:02:23 A NEED ARISES.RISES. DRILLING HAS COMMENCED ON BOTH 15:02:28 RELIEF WELLS WHICH WILL RELIEVE PRESSURE AND PERMANENTLY STOP 15:02:31 THE FLOW OF OIL. FLOW YESTERDAY BP ATTEMPTED ANOTHER 15:02:34 TEST TO CONTAIN SOME OF THE OILF LEAKING FROM THE RISER BY 15:02:39 INSERTING A SMALL PIPE INTO IT M CARRYING OIL DIRECTLY UP TO THE 15:02:43 SURFACE TO A COLLECTION VESSEL.O AS OF THIS MORNING, BP REPORTSFS 15:02:47 THE PIPE IS RECOVERING SOME OILS AND GAS. 15:02:50 THERE'S NO CONFIRMATION YET ON THE RATE OF FLOW. 15:02:55 MNS AND BP ARE MONITORING THIS TEST CLOSELY TODAY AND ADJUSTING 15:03:00 PRESSURES TO ACHIEVE THE HIGHEST TONCENTRATIONS OF OIL BEING 15:03:03 BROUGHT TO THE SURFACE. NOW, IT'S IMPORTANT TO NOTE THAT 15:03:07 EVEN IF THIS EFFORT IS SUCCESSFUL, IT WILL NOT CHANGE 15:03:11 OUR POSTURE.F WE WILL CONTINUE TO BRING ALL 15:03:14 RESOURCES TO BEAR UNTIL THE WELL IS TAPPED, THE OIL IS CLEANED 15:03:17 UP, AND THE CLAIMS ARE PAID. THAT SAID, WE ARE ALSO ACTIVELY 15:03:23 EXPLORING OTHER METHODS TO TETIGATE THE SPILL'S IMPACT. 15:03:27 RIGHT NOW FEDERAL SCIENTISTS ARE CONTINUING TO PROVIDE OVERSIGHT 15:03:31 AND EXPERTISE TO BP AS THEY MOVE FORWARD WITH OTHER STRATEGIES TO 15:03:35 CONTAIN THE SPILL AND STOP THE FLOW OF OIL. 15:03:39 AND THIS WEEKEND BP STAGED OI 15:03:42 EQUIPMENT FOR A TECHNIQUE CALLED THE TOP KILL WHICH WILL PUMP 15:03:46 HEAVY FLUIDS INTO THE WELL AND ATTEMPT TO STOP THE FLOW OF OIL. 15:03:50 THIS OPERATION IS EXPECTED TO IN 15:03:52 START AT THE END OF THIS WEEK.T NOW, AS I SAID EARLIER, THED OF. 15:03:56 RESPONSE TO THIS INCIDENT BEGAN IMMEDIATELY AND HAS REMAINED 15:04:00 CONSTANT AND STRONG OVER THE PAST FOUR WEEKS. 15:04:04 WHEN THE EXPLOSION ON THE DEEP SHORE -- DEEPWATER HORIZON 15:04:10 OCCURRED LATE AT NIGHT ON TUESDAY, APRIL THE 20, THE COAST 15:04:14 GUARD WAS FIRST ON THE SCENE WITH TWO CUTTERS AND AIRCRAFT 15:04:18 BEGINNING A LARGE-SCALE SEARCH AND RESCUE EFFORT. 15:04:21 BY THE MORNING, 115 CREW MEMBERS WERE ACCOUNTED FOR. 15:04:26 ON APRIL THE 21ST, WE NAMED MARY LANDRY THE FEDERAL ON-SCENE 15:04:32 COORDINATOR TO HEAD UP THE REGIONAL RESPONSE TEAM COMPRISED 15:04:35 OF FEDERAL, STATE AND LOCAL REPRESENTATIVES AND LAUNCHED AN 15:04:39 INTERAGENCY INVESTIGATION. IN OTHER WORDS, FROM APRIL THE 15:04:43 21ST WE WERE ALREADY BEGINNINGRE TO BRING RESOURCES TO BEAR IN AN 15:04:46 INTERGOVERNMENTAL WAY TO THIS TRAGEDY. 15:04:48 ON THE MORNING OF THURSDAY, TRA. APRIL, THE OIL RIG SANK 15:04:53 WITH 700,000 OF GALLONS OFTHIS DIESEL FUEL ONBOARD. 15:05:01 THIS PROMPTED THE NATIONAL RESPONSE TEAM WHICH INCLUDES 15:05:05 LEADERSHIP FROM THE WHITE HOUSE TO DHS TO THE EPA AND THE A BRIS 15:05:09 DEPARTMENTS OF DEFENSE, COMMERCE AND INTERIOR. DEPARTMT 15:05:12 I LEAD THE NRT AS THE PRINCIPALE FEDERAL OFFICIAL RESPONSIBLE FOR 15:05:18 COORDINATING THE FEDERAL RESPONSE. 15:05:19 THE DERAL DAY PRESIDENT OBAMA CONVENED A PRINCIPALS MEETINGIDT 15:05:24 HADUT THE INCIDENT. AT THIS TIME THERE WERE NO 15:05:28 APPARENT OIL LEAKS, BUT 100,000 APPARE 15:05:31 GALLONS OF DISPERSANTS WERE PREPOSITIONED. 15:05:34 WE ALSO INITIATED INTERGOVERNMENTAL CALLS TO 15:05:37 PROVIDE UPDATES ON THE SITUATION TO POTENTIALLY AFFECTED 15:05:41 POTENTLLYES ALONG THE GULF COAST. AFFEC 15:05:43 ONTED FRIDAY, APRIL THE 23RD, E SUNKEN RIG WAS FOUND ON THE 15:05:49 OCEAN FLOOR WITH AN OIL SHEEN ESTIMATED AT 8400 GALLONS 15:05:55 NEARBY. THE NO OIL LEAK WAS APPARENT, BUT NT 15:05:57 THE NRT CONVENED IN ORDER TO PLAN AHEAD IN CASE THE SITUATION 15:06:02 DETERIORATED CONTINUING TO PREPOSITION VESSELS AND 15:06:05 DISPERSANTS AND HUNDREDS OF THOUSANDS OF FEET OF BOOM IN 15:06:09 PREPARATION FOR SUCH A WORST-CASE SCENARIO. 15:06:11 THE NEXT DAY, SATURDAY, APRIL THE 24TH, BP FOUND THE FIRST TWI 15:06:17 LEAKS AND ALERTED THE FEDERAL GOVERNMENT. 15:06:19 THE FIRST THREE EQUIPMENT-STAGING LOCATIONS WERE 15:06:22 STOOD UP AT VENICE, LOUISIANA, BILOXI, MISSISSIPPI, AND 15:06:26 PENSACOLA, FLORIDA. ADDITIONAL PERSONNEL AND VESSELS 15:06:32 WERE DEPLOYED TO THE AREA. WE BEGAN TO ACTUALLY MOVE 15:06:35 ADDITIONAL BOOM THERE THE NEXT DAY. 15:06:38 ON WEDNESDAY, APRIL THE 28TH, THE FIRST CONTROLLED BURN 15:06:42 OPERATION WAS CONDUCTED, AND IT WAS SUCCESSFUL. 15:06:45 LATER THAT DAY BP DISCOVERED AN ADDITIONAL LEAK FROM THE OIL 15:06:50 WELL. BY THIS TIME THE DISCOVERY OF 15:06:52 THE THIRD LEAK, WE HAD ALREADY MUSTERED 50 RESPONSE VESSELS, 15:06:58 ROUGHLY 150,000 FEET OF BOOM HAD BEEN DEPLOYED. 15:07:01 WE HAD APPLIED 56,000 GALLONS OF DISPERSANTS, AND WE HAD OVER A 15:07:06 THOUSAND PERSONNEL WORKING THE SCENE. 15:07:09 ON THURSDAY, APRIL THE 29TH, I DESIGNATED THE EVENT A SPILL OF 15:07:16 NATIONAL SIGNIFICANCE WHICH BUILT ON THE OPERATIONAL AND 15:07:19 POLICY COORDINATION ALREADY UNDERWAY FROM THE BEGINNING OF 15:07:22 THIS RESPONSE. NOW, BY THIS DAY WE HAD 70 15:07:27 VESSELS ALREADY ON SCENE, 1100 PERSONNEL AND MORE BOOM AND 15:07:31 DISPERSANT AT THE READY. ON MAY THE 1ST, WE ANNOUNCED 15:07:35 THAT ADMIRAL THAT'D ALLEN, THE OUTGOING COMMANDANT OF THE COAST 15:07:42 COMMR. WOULD SERVE AS THE INCIDENT COMMANDER. 15:07:44 LET ME BRIEFLY DESCRIBE THE ONGOING ACTIVITIES. 15:07:49 WE ARE DOING EVERYTHING WE CAN TO INSURE THAT VITAL RESPONSE 15:07:52 ASSETS, PERSONNEL AND EQUIPMENT ARE EFFICIENTLY AND EFFECTIVELY 15:07:56 DEPLOYED AND UTILIZED. I HAVE VISITED EACH OF THE 15:08:00 RESPECTIVE STATES TO SEE THAT EFFORTS ARE UNDERWAY AND 15:08:04 FIRSTHAND MEETING WITH GOVERNORS, MAYORS, FIRST 15:08:06 RESPONDERS AND IMPACTED COMMUNITIES. 15:08:08 WE ARE WORKING CLOSELY WITH STATE AND LOCAL GOVERNMENTS 15:08:11 EVERY STEP OF THE WAY ON JOINT RESPONSE PLANS AND THROUGH THE 15:08:14 COMMAND CENTERS. WE HAVE DAILY CALLS WITH 15:08:17 GOVERNORS, MAYORS AND MEMBERS OF THE CONGRESS. 15:08:20 WE ARE OVERSEEING BP, THE RESPONSIBLE PARTY, IN ITS 15:08:24 EFFORTS TO STOP THE LEAK AT ITS SOURCE, REDUCE THE SPREAD OF 15:08:28 OIL, PROTECT THE SHORELINE AND MITIGATE DAMAGES. 15:08:32 DRILLING RELIEF WELLS, WHICH WILL RELIEVE PRESSURE AND 15:08:36 PERMANENTLY STOP THE PRESSURE OF OIL AS I MENTIONED, IS UNDERWAY. 15:08:40 THE FEDERAL GOVERNMENT HAS MOBILIZED ITS BEST SCIENTISTS 15:08:44 AND INDUSTRY EXPERTS TO WORK WITH BP TO IDENTIFY OTHER 15:08:48 STRATEGIES FOR SEALING THE WELL. AND THE PRESIDENT HAS TASKED THE 15:08:51 DEPARTMENT OF ENERGY TO PROVIDE EXPERTISE ON THAT FRONT. 15:08:55 ABOVE THE SURFACE WE CONTINUE TO CONDUCT CONTROLLED BURNS, SKIMEI 15:08:59 OIL AND APPLY CHEMICAL DISPERSANTS TO REDUCE THE AMOUNT 15:09:03 OF OIL AND BREAK UP THE SLICKEDE FAR OFFSHORE. 15:09:06 OF WE ARE DEPLOYING BOOM TO PROTECT 15:09:08 WE ARE SHORELINE AND WILDLIFE IN ALL 15:09:10 THE GULF STATES THAT COULD BE AFFECTED, AND IMMEDIATELY 15:09:14 DISPATCHING CLEAN-UP TEAMS WHEN OIL -- GENERALLY IN THE FORM OF 15:09:19 TARBALLS -- REACHES THE SHORE. WE ARE KEEPING THE PUBLIC 15:09:22 ENGAGED AND MAKING SURE THAT PEOPLE WHO WANT TO VOLUNTEER FOR 15:09:26 CLEAN UP, FOR HELPING TO DEPLOY BOOM OR IN OTHER WAYS CAN HELP. 15:09:30 AND WE ARE INSURING THAT BRITISH PETROLEUM AS THE RESPONSIBLE 15:09:34 PARTY IS PAYING THE COSTS OF THE CLEAN UP AND COMPENSATING 15:09:38 INDIVIDUALS, COMMUNITIES AND BUSINESSES THAT HAVE SUFFERED 15:09:41 ALREADY AS A RESULT OF THISCOMMD SPILL. 15:09:45 ACTUALLY, BEGINNING TODAY THEIR CLAIMS CAN ACTUALLY BE FILED 15:09:50 ONLINE, AN ACCESS POINT WE'VE BEEN USUALING BP TO MAKE. 15:09:54 AVAILABLE FOR THE PAST FEW WEEKS. 15:09:56 SO FAR OVER 16,000 CLAIMS HAVE BEEN FILED BY AFFECTEDED 15:10:00 INDIVIDUALS AND BUSINESSES.BY BP HAS PAID OUT OVER $9.6 15:10:05 MILLION, IT HAS NOT YET DENIED A CLAIM. 15:10:08 LOOKING AHEAD, THE ADMINISTRATION WILL CONTINUE THA 15:10:11 STRONG RESPONSE THAT WE HAVE SUSTAINED SINCE THE 20TH OF WEAE 15:10:14 APRIL. WE WILL MOBILIZE EVERY AVAILABLE 15:10:17 RESOURCE TO PROTECT THE ENVIRONMENT, ECONOMY AND PUBLIC 15:10:20 HEALTH IN THE GULF REGION WITHIE ALL HANDS ONNT DECK. 15:10:23 THANK YOU, MR. CHAIRMAN, FOR THIS OPPORTUNITY TO BE WITH YOU 15:10:27 TODAY. I'LL BE HAPPY TO ANSWER YOUR 15:10:29 QUESTIONS. THANKS VERY MUCH, MADAM 15:10:32 SECRETARY. BEFORE I ASK MY QUESTIONS, I 15:10:34 WILL DO A SEVEN-MINUTE ROUND. I HAVE A CIRCUIT IN MY HEAD, I 15:10:41 THINK I KEPT REFERRING TO MMS BY THE WRONG NAME. 15:10:45 IT'S THE MINERALS MANAGEMENT MIN SERVICE, SO LET THE RECORDER SH. 15:10:49 I APPRECIATE VERY MUCH THE RESPONSE EFFORTS, IT'S REALLY 15:10:53 QUITE ENORMOUS, THAT YOU'VE DESCRIBED, SECRETARY NAPOLITANO, 15:10:57 THAT THE GOVERNMENT IS INVOLVED THIS AND THAT BP IS INVOLVED INE 15:11:02 BUT I WANT TO GO BACK AGAIN TO SOME OF THE QUESTIONS I RAISED O 15:11:06 IN MY OPENING STATEMENT, ANDOPEG THIS REALLY GOES TO PREPAREDNESS 15:11:10 UNIQUELY FOR A PROBLEM WITH THEE DEEPWATER WRELL, AND I'LL ASK 15:11:17 YOU, MADAM SECRETARY. MAY W END UP THAT THIS ISYOU, 15:11:21 TECHNICAL AND YOU WANT THE SECR, ADMIRAL TO RESPOND IS, BUT B 15:11:23 HERE'S THE QUESTION AND LET METE JUST SPEAK AS SOMEBODY WHO'SUES, 15:11:26 BEEN WATCHING THIS. A SPEAK TO AS YOU W SATCOMH, AS WE WATCH TE 15:11:30 COMPANY, THE GOVERNMENT TRYING E DESPERATELY TO FIGURE OUT HOW TO 15:11:35 CLOSE THIS WELL, TO STOP THISTO SPILL IN THE GULF WE, OBVIOUSLY, 15:11:42 HAVE TO CONCLUDE THAT PEOPLE WEREN'T PREPARED TO DO IT, 15:11:45 WEREN'T PREPARED TO DEAL WITH THIS KIND OF PROBLEM. 15:11:49 IN FACT, AS THE COMPANY SAID QUITE HONESTLY, THEY HAD CAPPED 15:11:55 WELLS BEFORE, PERHAPS SOME THAT HAD A FAILURE OF THE BLOWOUT 15:11:59 PREVENTER, BUT NEVER AT THIS DEPTH. 15:12:02 SO WHY SHOULDN'T THE COMMITTEE, I OR ANYBODY IN THIS COUNTRY 15:12:08 CONCLUDE THAT, IN FACT, WE WERE, WE WERE NOT PREPARED, EITHER THE 15:12:14 GOVERNMENT OR THE COMPANY BY DEMAND OF THE PERMITTING 15:12:20 AUTHORITIES, TO DEAL WITH THIS KIND OF BLOWOUT OF A DEEPWATER 15:12:25 WELL? LET ME DIVIDE IT, IF I MIGHT, 15:12:28 MR. CHAIRMAN, INTO BEFORE THE BLOWOUT AND AFTER THE BLOWOUT. 15:12:34 OKAY.ORE THE I THINK BEFORE THE BLOWOUT IT 15:12:39 IS CLEAR THAT THERE WAS AN ASSUMPTION THAT A BOP WOULD 15:12:44 NEVER FAIL AND THAT PLANS WERE SUBMITTED BASED TO THE MMS WHICH 15:12:49 IS PART OF THE DEPARTMENT OF INTERIOR BASED ON THAT 15:12:52 ASSUMPTION. AND I'VE READ SOME OF THE SAMEIE 15:12:56 MATERIALS THAT YOU HAVE. BUT FROM THE POINT OF VIEW OF AN 15:13:01 EXPLOSION AND A SPILL, THERE HAVE BEEN EXTENSIVE PLANS 15:13:05 PREPARED UNDER THE NATIONAL PLAS RESPONSE FRAMEWORK. 15:13:08 THERE ARE AREA CON TIN GENERALTY CITY -- CON TIN GIN SI PLANS PUT 15:13:15 FRGETHER THAT INCLUDE INTENSIVE EFFORTS THERE STATES, 15:13:19 LOCALITIES, PARISHES, THERE ARED THE REGIONAL RESPONSE PLANS AND 15:13:22 THEN THERE'S THE NATIONAL RESPONSE FRAMEWORK. 15:13:25 THOSE PLANS NOT ONLY EXIST, BUT ARE EXERCISED ON A REGULAR 15:13:29 BASIS. INDEED, I THINK THERE WAS AN 15:13:32 AREA RESPONSE PLAN FOR AN OIL-RELATED INCIDENT JUST IN 15:13:37 MARCH OFF OF THE COAST OF MAINE, SENATOR COLLINS. 15:13:43 AND THERE WAS A NATIONAL EXERCISE WITH THE EXACT PREMISE 15:13:47 OF THIS WHICH IS A MAJOR SPILL IN THE GULF COAST. 15:13:51 RIGHT. THAT WAS DONE IN 2002, AND 15:13:55 ADMIRAL ALLEN WAS THE NATIONAL COMMANDER FOR THAT EXERCISE AND, 15:13:59 INDEED, HE'S THE NATIONAL INCIDENT COMMANDER HERE. 15:14:03 SO TO THE EXTENT THAT BEFORE SPILL THERE WAS OVERRELIANCE, 15:14:09 PERHAPS, ON THE B.O.P., THAT WILL BECOME MORE CLEAR AS THE 15:14:13 INVESTIGATION PROCEEDS. RIGHT. 15:14:15 ISN'T IT -- POST-SPILL, THOUGH, THERE WAS 15:14:20 AN EXTENSIVE PLANNING EXERCISE FRAMEWORK IN PLACE. 15:14:24 YEAH. BUT ISN'T IT TRUE THAT, AND, 15:14:27 ADMIRAL, I WELCOME YOU TO COMMENT ON THIS, THAT THOSE 15:14:31 KINDS OF DRILLS WERE NOT REALLY TO DEAL WITH A BLOWOUT IN A 15:14:36 DEEPWATER WELL? IN OTHER WORDS, THERE WAS A LOT 15:14:37 OF WORK DONE, AND THERE'S BEEN ENORMOUS EFFORT AT RESPONSE. 15:14:42 AND I THINK IT'S REALLY HAD AN EFFECT ON THE WATER ON THE 15:14:45 SURFACE. BUT NOW WE'VE GOT TWO ENORMOUS 15:14:48 PROBLEMS THAT I DON'T BELIEVEAVS UNLESS YOU CAN CONVINCE ME 15:14:51 OTHERWISE THAT WE WERE READY TO, DEAL WITH AND THE COMPANY WASN'T 15:14:54 EITHER WHICH IS WHAT DO YOU DOTA WHEN A DEEPWATER WELL BLOWS, AND 15:14:57 THEN WHAT DO YOU DO ABOUT THE OIL UNDER THE WATER THAT IS NOWR 15:15:01 ACCUMULATING IN THIS MASSIVEH PLUME? 15:15:03 ADMIRAL, DOES THE COAST GUARD -- COASARD -- DO A LOT OF DRILLING, 15:15:08 DO YOU DRILL FOR DEALING WITH, T MEAN, YOU KNOW, TRAIN FOR 15:15:15 DEALING WITH THE CONSEQUENCES OF A DEEPWATER WELL EXPLOSION? 15:15:21 MR. CHAIRMAN, WE DON'T DRILL THIS SPECIFIC SCENARIO, NO.RILL 15:15:26 WHAT WE, AND WHAT THE SECRETARYN WAS REFERRING TO WAS THE SPILL A 15:15:29 OF NATIONAL SIGNIFICANCE EXERCISE THAT WE DO EVERY THREE 15:15:32 YEARS THROUGHOUT THE COUNTRY. RIGHT. 15:15:34 WE DO, HOWEVER, DRILL FOR DRF MASSIVE OIL RELEASES, AND INLEAS 15:15:38 THIS CASE WE DID DRILL IN 2002 FOR MASSIVE OIL RELEASE FROM A 15:15:42 WELLHEAD DISCHARGE IN THE GULFE. OF MEXICO, ALTHOUGH IT WAS NOT 15:15:45 AT ALL LIKE THIS SPECIFICIKE SCENARIO. 15:15:48 AND WAS IT AS DEEP AS THISN'P WELL? 15:15:50 NO, SIR, IT WAS NOT. THI AND AS SENATOR COLLINS SAID, 15:15:53 MY UNDERSTANDING THAT INCREASINGLY IN THE GULF ANDY US 15:15:56 ELSEWHERE WE'RE USING DEEPWATERL WELLS, IS THAT TRUE BASED ON 15:15:59 WHAT YOU KNOW? WE'RE DEEPWATER DRILLING. 15:16:02 I DON'T KNOW THE EXACT NUMBEI OF DEEPWATER WELLS. 15:16:05 I KNOW IT'S SOME 1% OF ALL THE WELLS THAT ARE OUT THERE, AND I. 15:16:10 GUESS I WOULD HAVE TO REFER TO F MMS FOR THE EXACT NUMBER. WLD 15:16:13 BUT THERE IS AN INCREASINGEFER T AMOUNT OF ACTIVITY IN THE DEEPER 15:16:16 PARTS OF THE OUTER CONTINENTAL V SHELF, YES, SIR. 15:16:18 I KNOW EPTHATER THE COAST GU, AND CORRECT ME IF I'M WRONG, HAS 15:16:23 CONT RESPONSIBILITY FOR APPROVING OIL 15:16:25 SPILL RESPONSE PLANS THAT COME O FROM WHAT IS CALLED THE VEZ EL 15:16:29 OR WHAT I WOULD CALL THE RIG, WHAT'S ON THE SURFACE OF THE 15:16:33 WATER, AND THE MINERALS MANAGEMENT SERVICE HAS TOTVICE 15:16:38 APPROVE THE PLAN FOR A SPILL THOSE 15:16:40 FROM A WELL NO MATTER WHAT DEPTH. 15:16:42 BUT I WANTED TO ASK YOU IF TWO THINGS. 15:16:47 ONE IS GOING BACK TO SOMETHING G SAID IN MYOING OPENING STATEMENY 15:16:50 DOES IT MAKE SENSE THAT BP WAS ENABLED TO FILE JUST A REGIONAL 15:16:57 RESPONSE PLAN WHICH PRESUMABLY WOULD COVER BOTH DEEPWATER AND 15:17:01 MORE SHALLOW WATER WELLS ASCOVER OPPOSED TO A SPECIFIC RESPONSE 15:17:05 PLAN FOR EACH WELL, PARTICULARLS THE DEEPWATER WELLS?E 15:17:09 WELL, I CAN TELL YOU, YOU S? 15:17:12 KNOW, IN OUR CASE WE REQUIRE SPECIFIC RESPONSE PLANS PERRE SI 15:17:15 VESSEL THAT'S REQUIRED TO, THATL WE THINK MIGHT HAVE THE W 15:17:18 POTENTIAL TO DISCHARGE -- OKAY, THAT'S VERY IMPORTANT. 15:17:20 SO YOU HAVE A DIFFERENT APPROACH THAN MMS DOES ON THAT. 15:17:24 YES, SIR, WE DO. DOES ON WELL, THAT'S IMPORTANT. 15:17:27 LET ME JUST ASK YOU, FINALLY, BECAUSE MY TIME IS WINDING DOWN, 15:17:36 I THINK SECRETARY SAID ITI CORRECTLY AND I AGREE WITH HER D 15:17:39 FROM WHAT I'VE LOOKED AT, THERE FROM 15:17:41 WAS TOTAL RELIANCE PUT ON THIS W BLOWOUT PREVENTER. 15:17:44 BUT IN THE END LIKE SO MUCH, YOU , ENDIN LIFE, IT'S A PIECE OF 15:17:48 EQUIPMENT, AND THEY FAIL. IN FACT, THERE WAS SOMEUIPMENT. 15:17:50 EVIDENCE, AS I SAID, THAT THE EE BLOWOUT PREVENTERS HAD FAILE 15:17:53 SOME IN THE PAST.OU NOT A LARGE NUMBER AND NEVER THE 15:17:57 WITH A SPILL OF THIS KIND. BUT BECAUSE COAST GUARD HASE COD 15:18:05 RESPONSIBILITY FOR MARINE OIL SPILLS WHAT DO YOU THINK SHOULD 15:18:09 BE DONE TO TRY TO HAVE A LEVEL OF PREPAREDNESS THAT ALLOWS FOR 15:18:17 THE POSSIBILITY WHICH MAY BE ALE RARE, BUT AS WE SEE NOW IN THE E 15:18:21 GULF, CONSEQUENCES ARE ENORMOUSS OF A FAILURE OF A BLOWOUT 15:18:26 PREVENTER? WELL, SENATOR, I THINK THAT 15:18:28 THIS SPILL RAISES A LOT OF QUESTIONS LIKE THAT THAT WE'RE 15:18:31 GOING TO HAVE TO TAKE A GOOD, R HARD LOOK AT.IONS LIKE THAT 15:18:33 I MEAN, CLEARLY, THIS IS BEYONDD WHAT WE ANTICIPATED BEING 15:18:37 SOMETHING THAT COULD HAPPEN. WE CERTAINLY NEVER ANTICIPATEDAN 15:18:40 NN ONGOING RELEASE OF THIS HAPPE MAGNITUDE OVER THIS PERIOD OF 15:18:42 TIME.IPATED A SO I THINKN THAT THAT IS A VERY 15:18:45 QUESTION THAT HAS TO BE VERREALE ADDRESSED.HA 15:18:48 AT A MINIMUM,T WE'RE GOING TOWEH REVE TO LOOK AT OUR PLANNING 15:18:52 ADDRSED.FOR FUTURE REVISIONS OF OUR VARIOUS CONTINGENCY PLANS.OO 15:18:55 MADAM SECRETARY, I KNOW THAT YOU'RE WORKING WITH SECRETARYPL. 15:18:58 SALAZAR AND MAYBE ONE OR TWO I U OTHERS ON THIS SHORT-TERM WITH 15:19:04 SECRET INVESTIGATION STUDY THAT THE 15:19:05 PRESIDENT HAS ASKED ON YOU TO D, AND I HOPE -- I'M SURE YOU AED T 15:19:07 PROBABLY WERE O DOING IT SUR ALREADY -- THAT YOU'LL TAKE AG T 15:19:10 CLOSE LOOK AT THE SPECIAL SPECIL REQUIREMENTS FOR PROTECTION THAT 15:19:15 IT SEEMS TO ME WE NOW HAVE ALL V LEARNED HAVE TO APPLY TO 15:19:19 DEEPWATER DRILLING, INCLUDING THE BLOWOUT PREVENTERS THAT IBRD 15:19:23 FEAR OR WERE NOT APPLIED BY MMS BEFORE. 15:19:26 IF I MIGHT, MR. CHAIRMAN, YOU KNOW, WITH EVERY INCIDENT THAT 15:19:33 OCCURS LESSONS ARE LEARNED.NTS T RIGHT. W 15:19:35 AND I THINK THAT'S ONE OF THE REASONS WHY THE PRESIDENT HAS WT 15:19:39 BEEN SO VERY CLEAR THAT FURTHER DEEPWATER DRILLING PERMITS ARE 15:19:44 GOING TO BE STOPPED UNTIL THISDR CAN BE INVESTIGATED AND 15:19:50 WSURANCES CAN BE GAINED THATTHS THINGS HAVE BEEN CHANGED SO THAS 15:19:53 WE DON'T HAVE A DUPLICATION OF THE DEEPWATER HORIZON INCIDENT. 15:19:57 AND I THINK, YOU KNOW, PRUDENCE WOULD DICTATE THAT THAT WOULD BE 15:20:01 WHAT WOULD HAPPEN. AND SO I THINK WE'RE ALL WORKING 15:20:04 TOGETHER TO SAY, ALL RIGHT, WHAD HAPPENS HERE -- WHAT HAPPENED 15:20:11 HERE, WHAT POWER SHOULD MMS HAVE THAT IT SHOULDN'T HAVE HAD, WHAD 15:20:16 POWERS DID IT NOT EXERCISE, WASE THERE OVERRELIANCE ON THE EXERC? 15:20:20 B.O.P., WHAT HAPPENED WITH THE B.O.P.? 15:20:25 I SAID I THINK THAT PERHAPS THERE MAY BE A FEW LAWYERS THAT 15:20:29 GET INVOLVED IN SOME OF THAT AS THE LITIGATION HAPPENS, BUT I 15:20:33 THINK THE PRESIDENT WAS HAPPENS ABSOLUTELY RIGHT LAST FRIDAY TO 15:20:36 SAY THIS ISN'T ABOUT, YOU KNOW, FOR'S RESPONSIBLE FOR PAYING. 15:20:42 OUR WORK IS TO MAKE SURE THAT THIS WELL IS CAPPED, TO MAKE 15:20:46 SURE THAT IT IS CLEANED UP, TO A MAKE SURE THAT OIL IS PREVENTEDO 15:20:51 FROM HITTING LANDFALL, AND WHEN NT DOES, THAT IT IS CLEANED UP,E 15:20:55 THAT ALL CLAIMS ARE PAID AND THAT THEY ARE DONE SO PROMPTLY. 15:20:58 AND TO ME, THAT'S THE DEFINITIOP RIGHT NOW OF THIS RESPONSE AND R 15:21:04 WHEN WE WILL DECLARE THE RESPONSE OVER. 15:21:06 THANK YOU. SENATOR COLLINS. 15:21:08 THANK YOU, MR. CHAIRMAN. C THE CHAIRMAN MENTIONED THE 15:21:13 DIVIDED RESPONSIBILITY FOR APPROVAL OF THE OIL RESPONSE THE 15:21:18 PLANS BETWEEN MMS AND THE COASTT GUARD.HE 15:21:23 THIS MY STATEMENT -- IN MY STATEMENT I RAISED THE QUESTION 15:21:26 OF WHY WOULDN'T YOU HAVE THE NOT COAST GUARD HAVE SOME SHARING OF 15:21:31 INFORMATION WITH MEASURING MS -- MMS SUCH THAT THE COAST GUARD 15:21:36 WOULD BE RESPONSIBLE FOR SOME BE SORT OF CONCURRENT APPROVAL OF 15:21:40 THE PLAN. IT DOESN'T MAKE A LOT OF SPENCE 15:21:44 AT FIRST -- SENSE AT FIRST BLUSH TO HAVE ONE AGENCY RESPONSIBLE 15:21:48 FOR APPROVING THE PLAN IF IT'S E ABOVE THE WATER FOR THE VESSELE 15:21:53 AND ONE, A DIFFERENT AGENCY ANDN A DIFFERENT DEPARTMENT EVEN, DEM 15:21:59 RESPONSIBLE IF THE PLAN APPLIES TO THE WELLHEAD. 15:22:03 HAS THERE BEEN ANY THOUGHT TO AT LEAST BROADENING THE COAST T COT 15:22:10 GUARD'S RESPONSIBILITY IN THISDB AREA, MADAM SECRETARY? 15:22:13 SENATOR COLLINS, I THINK SEN 15:22:15 THERE'LL BE A LOT OF DIFFERENT THINGS LOOKED AT AS TO WHO HAS 15:22:19 WHAT AUTHORITIES AND WHATWHAT AUTHORITIES NEED TO BE ADJUSTED 15:22:22 IN LIGHT OF THIS. SPEAKING FOR MYSELF RIGHT NOW, I 15:22:26 THINK THAT'S ONE OF THE AUGITIMATE QUESTIONS OR WHAT 15:22:29 AUTHORITIES THAT WE NEED TO BE LOOKING INTO. BE IN LIGH 15:22:30 ADMIRAL? QUESTNS I WOULD CONCUR WITH THE>> 15:22:34 SECRETARY. I THINK THAT MOVING FORWARD WE 15:22:36 NEED TO LOOK AT WHETHER OR NOTMO THERE NEEDS TO BE AVI DEFINITIVE 15:22:39 STATEMENT WITH RESPECT TO THAT O CONCURRENT REVIEW. 15:22:41 AS YOU KNOW, WE DO CURRENTLYWE HAVE MEMORANDUMS OFAVE 15:22:45 UNDERSTANDING WITH THE MMS WHICE WOULD ALLOW US TO REVIEW THOSE 15:22:47 WOULD PLANS, BUT THERE IS NOW 15:22:49 REQUIREMENT TO DO SO. ADMIRAL, THIS CATASTROPHE IS 15:22:52 THE FIRST SPILL TO BE CLASSIFIED AS A SPILL OF NATIONAL 15:22:59 SIGNIFICANCE SINCE THAT TERM WAI FIRST COINED IN THE WAKE OF THE 15:23:04 EXXONIN VALDEZ DISASTER IN 1989S DURING THE INTERVENING 20-PLUS 15:23:11 YEARS, SOME HAVE EXPRESSED THE CONCERN THAT BECAUSE OUR NATION, 15:23:18 FORTUNATELY, HAS NOT BEEN FORCED TO RESPOND TO A MAJOR OIL SPILL 15:23:22 IN SUCH A LONG TIME THAT WE'VE LOST THE EXPERTISE AND 15:23:28 INSTITUTIONAL KNOWLEDGE THAT IS NECESSARY FOR A QUICK AND THA 15:23:32 EFFECTIVE RESPONSE.TIVE AND, INDEED, IN 2004 WHEN THEN 15:23:38 COAST GUARD DID AN EXERCISE IN THIS AREA, THE AFTER-ACTION 15:23:45 REPORT HAD SOME TROUBLING I WALUSIONS, AND I WANT TO READ 15:23:48 FROM THAT. THE AFTER-ACTION REPORTTHE 15:23:53 CONCLUDED, QUOTE, THAT OIL SPILL RESPONSE PERSONNEL DID NOTONNELT 15:23:58 APPEAR TO HAVE EVEN A BASIC KNOWLEDGE OF THE EQUIPMENT OF TE 15:24:03 REQUIRED TO SUPPORT SALVAGE OR O SPILL CLEAN-UP OPERATIONS.LEAN-P 15:24:07 THERE WAS A SHORTAGE OF PERSONNEL WITH THE EXPERIENCE TO 15:24:12 FILL KEY POSITIONS.FILL MANY MID-LEVEL SPILL MANAGEMENT- 15:24:16 STAFF HAD NEVER WORKED ON A WOR LARGE SPILL AND SOME HAD NEVER 15:24:21 BEEN INVOLVED IN AN EXERCISE.ANH ..AD 15:24:26 I KNOW THERE HAVE BEEN TWO SUBSEQUENT EXERCISES SINCE THEN, 15:24:30 INCLUDING THE ONE HOSTED BY THE STATE OF MAINE THIS SPRING, FOR 15:24:34 WHICH THE AFTER ACTION REPORT HAS NOT YET BEEN WRITTEN. 15:24:38 WHAT IS YOUR ASSESSMENT OF THE EXPERTISE THAT WE HAVE TODAY IN 15:24:45 GOVERNMENT AND IN THE INDUSTRY TO DEAL WITH A MAJOR OIL SPILL? 15:24:50 SENATOR, I THINK YOU ARE REFERRING TO THE 2004 DRILLING 15:24:55 IN LOS ANGELES AND LONG BEACH HARBOR. 15:24:57 I WAS A UNIFIED COMMANDER FOR THAT EXERCISE. 15:25:00 THOSE WERE MY RECOMMENDATIONS THAT YOU JUST READ THAT CAME OUT 15:25:02 OF THAT. BUT YOU TEND TO AGREE WITH THEM. 15:25:07 I DID AT THE TIME. -- YOU TEND TO AGREE WITH 15:25:12 THEM. I DID AT THAT TIME. 15:25:15 WE HAVE DONE A LOT TO IMPROVE OUR ABILITY. 15:25:18 IF YOU LOOK AT THE SUBSEQUENT EXERCISES IN THE INTERVENING 15:25:22 PERIODIC ANNUAL AND TRY ANNUAL EXERCISES THAT WE DO, -- 15:25:28 TRIANNUAL EXERCISES THAT WE DO, WE HAVE LEARNED A LOT. 15:25:33 WE HAVE NOT HAD A MAJOR OIL SPILL, BUT THAT DOES NOT KEEP US 15:25:36 FROM PREPARING EFFECTIVELY FOR IT. 15:25:40 DO WE HAVE THAT EXPERTISE NOW? 15:25:44 CLEARLY, IF YOU ARE ACTUALLY CLEANING UP OIL, THERE IS AN 15:25:49 EXPERTISE AT YOU DEVELOP THAT CANNOT BE DEVELOPED IN ANY OTHER 15:25:53 WAY. I THINK WE HAVE THE CAPABILITY 15:25:56 NOW. WE HAVE A LOT OF PEOPLE WHO LOOK 15:25:57 AT THIS OVER AN EXTENDED TIME PERIOD. 15:26:03 YOU THE CAPABILITY IN THE PRIVATE INDUSTRY WITH RESPECT TO 15:26:05 THE ORGANIZATIONS WHO ARE REQUIRED TO MAINTAIN 15:26:12 EXPERTISE. WE STILL HAVE A NUMBER OF 15:26:13 ONGOING MINOR SPILLS THAT PROVIDE OPPORTUNITIES FOR 15:26:16 TRAINING PEOPLE IN RESPONDING. WE HAVE THE CAPABILITY. 15:26:20 IN THE CASE OF THIS OIL SPILL, I HAVE BEEN VERY IMPRESSED. 15:26:24 I'VE SPENT QUITE A BIT OF THE LAST COUPLE OF WEEKS DOWN IN THE 15:26:27 GULF, AROUND THE AREA AND AT THE COMMAND CENTER, AND WATCHING THE 15:26:35 OPERATIONS. I HAVE BEEN VERY IMPRESSED WITH 15:26:36 WHAT I HAVE SEEN. MADAM SECRETARY, YOU 15:26:40 MENTIONED THE FEDERAL RESOURCES THAT HAVE BEEN BROUGHT TO BEAR 15:26:44 ON THIS CATASTROPHE AND THE FACT THAT THE COWS ARE -- THE COAST 15:26:51 GUARD WAS ON SEEN IMMEDIATELY. THERE HAVE BEEN SOME QUESTIONS 15:26:53 ABOUT WHETHER RESOURCES -- THE COAST GUARD WAS ON-SCENE 15:27:02 IMMEDIATELY. THERE HAVE BEEN SOME QUESTIONS 15:27:04 ABOUT WHETHER RESOURCES WERE DISPERSED IMMEDIATELY. 15:27:13 SEARCH AND RESCUE WAS NOT FOCUSED ON CONTAINING THE OIL 15:27:18 SPILL. WHAT IS YOUR ASSESSMENT OF THE 15:27:23 RESOURCES, THE ADEQUACY, AND THE TIMELINESS IN OF THE 15:27:29 RESOURCES THAT BRITISH PETROLEUM AND ITS PARTNERS BROUGHT TO THE 15:27:33 TASK IN THOSE INITIAL DAYS. I THOUGHT YOU WERE GOING TO 15:27:39 ASK A DIFFERENT QUESTION. WELL, I THOUGHT OF ASKING YOU 15:27:44 WHETHER YOU WERE SATISFIED WITH THE FEDERAL RESPONSE. 15:27:47 BUT I HAVE A FEELING -- I KNOW WHAT THE ANSWER TO THAT WOULD 15:27:49 BE. SO I DECIDED TO ASK YOU ABOUT 15:27:53 THE PRIVATE SECTOR RESPONSE. WELL, AND YES, AND THAT'S ONE 15:27:57 OF THE REASONS WHY I WANTED TO GIVE YOU REALLY THE TICK TOCK OF 15:27:59 THE FEDERAL RESPONSE. BECAUSE RECOGNIZING THAT THE 15:28:05 EXPLOSION OCCURRED LATE ON THE EVENING OF THE 20th, THEN YOU GO 15:28:10 ON THE 22nd, THE RIG SINKS. YOU GO THE 24TH AND YOU BEGIN 15:28:19 SEEING FIRST SIGNS OF LEAKING HOLLYWOOD AND THEN ON THE 28th 15:28:24 IS WHEN YOU HAD SIGNS OF THE THIRD LEAK OF THE RISERS. 15:28:34 I WOULD LIKE TO, IF I MIGHT, RESERVE JUDGMENT ON THE ADEQUACY 15:28:40 OF THE PRIVATE SECTOR RESPONSE. I WILL SAY THAT BRITISH 15:28:45 PETROLEUM LEADERSHIP, BOTH THE AMERICAN HEAD OF BRITISH 15:28:49 PETROLEUM AND THE INTERNATIONAL HEAD, WERE IN WASHINGTON VERY 15:28:51 QUICKLY. THEY WERE IMMEDIATELY ASSUMING 15:28:56 RESPONSIBILITY AS THE RESPONSIBLE PARTY, WHICH THEY 15:28:58 SHOULD AND SHOULD HAVE. THEY HAVE BEEN IN THE COMMAND 15:29:05 CENTERS AND IN THE STAGING AREAS. 15:29:10 THEY HAVE BEEN WORKING IN TERMS OF CLEANUP AND GETTING -- 15:29:15 HIRING, FOR EXAMPLE, LOCAL FISHERMAN TO DEPLOY BOOM AND THE 15:29:19 REST. WHETHER THE EXACT HOURS AROUND 15:29:23 THE SINKING -- EXPLOSION AND SINKING OF THE RIG, THEY SHOULD 15:29:26 HAVE HAD MORE OR DIFFERENT EQUIPMENT THERE OR MORE OR 15:29:30 DIFFERENT KINDS OF EXPERTISE THERE, IT WOULD BE PREMATURE OF 15:29:32 ME TO SAY. THANK YOU. 15:29:36 THANKS VERY MUCH, SENATOR COLLINS. 15:29:40 SENATOR McCAIN AND THEN SENATOR LANDRIEU IN ORDER OF APPEARANCE. 15:29:42 GOOD AFTERNOON. THANK YOU. 15:29:46 THANK YOU FOR BEING HERE, MADAM SECRETARY AND ADMIRAL. 15:29:51 MAYBE, MADAM SECRETARY, TO LIFT THIS UP A LITTLE BIT. 15:29:54 WHAT'S YOUR BEST CASE SCENARIO AND WORSE CASE SCENARIO ABOUT 15:29:57 THIS CRISIS RIGHT NOW? WELL, OBVIOUSLY WE WOULD LIKE 15:30:05 TO SEE THE INSERTION PIPE CONTINUE TO WORK AND LIFT OIL 15:30:07 OFF THE SURFACE. WE'D LIKE TO SEE WHEN AND IF THE 15:30:13 TOP-KILL METHODOLOGY IS DEPLOYED AND THAT IT WORKS AND THAT OIL 15:30:18 IMMEDIATELY BEGINS TO BE LIFTED OFF THE SEA FLOOR AS TO THE SEA 15:30:23 SURFACE. IF THEY ARE DRILLING THE RELIEF 15:30:27 WELL AND HIT IT THE FIRST TIME. AND WHEN YOU'RE DRILLING THESE 15:30:31 WELLS MY UNDERSTANDING YOU DON'T NECESSARILY HIT THE PLACE YOU 15:30:33 NEED TO HIT THE FIRST TIME. THAT WOULD BE THE BEST CASE 15:30:36 SCENARIO. WE ON THE OTHER HAND HAVE FROM 15:30:43 THE BEGINNING NOT PLANNED OUR RESPONSE BASED ON NUMBERS OR 15:30:47 BASED ON -- WHETHER 5,000 BARRELS OR 25,000 BARRELS. 15:30:54 OUR RESPONSE IS GEARED TO WHAT IS NECESSARY TO FIGHT THE OIL ON 15:30:56 THE SEA. TO PREVENT THE OIL FROM HITTING 15:30:59 LAND. AND IF IT HITS LAND, TO CLEAN IT 15:31:01 UP IMMEDIATELY. WORSE CASE SCENARIO? 15:31:07 WORSE CASE SCENARIO IS THAT WE'LL BE AT THIS FOR QUITE A 15:31:09 WHILE. AND THE -- AND WHERE DO YOU 15:31:15 THINK WE ARE IN EITHER SCENARIO? WELL, YOU KNOW, IF THE 15:31:21 INSERTION -- THE RRT IS IN RIGHT NOW. 15:31:24 AND IF IT BEGINS TO LIFT OIL AS IT LOOKS PROMISING THAT IT IS, 15:31:27 AND THEY'RE ABLE TO DO THE JUNK-FILL, THAT WOULD HAPPEN BY 15:31:30 THE END OF THE WEEK. BUT IN TERMS OF DRILLING ANOTHER 15:31:38 RELIEF WELL, I THINK WE'RE SOME WEEKS AWAY, WELL INTO THE 15:31:40 SUMMER. I THINK THERE'S A BP WITNESS 15:31:42 AFTER ME. YOU MIGHT ASK HIM. 15:31:46 AND WHERE'S YOUR LEVEL OF OPTIMISM? 15:31:54 I'M JUST TAKING IT DAY BY DAY. 15:31:56 AND I THINK THAT'S WHAT WE NEED TO DO. 15:31:59 I THINK WE NEED TO JUST SAY, LOOK, WE'RE IN THE MIDDLE OF 15:32:01 THIS CRISIS. WE'RE NOT AT THE BEGINNING. 15:32:07 WE'VE BEEN AT IT A MONTH ALMOST. BUT WE'RE NOT AT THE END AS 15:32:09 WELL. BUT IN MY VIEW, OUR JOB IS TO 15:32:14 JUST KEEP MOVING AND JUST KEEP ASSEMBLING, DEPLOYING, 15:32:19 PREPARING, CLEANING AND KEEPING TRACK OF WHAT WE'RE SPENDING 15:32:22 BECAUSE ULTIMATELY THE TAXPAYERS SHOULDN'T HAVE TO BEAR THIS 15:32:24 COST. AND YOU HAVE DISPATCHED 15:32:30 17,000 NATIONAL GUARD TO HELP OUT AND CLEANUP AND OTHER 15:32:34 EFFORTS TO BE MADE ON THE GULF; IS THAT RIGHT? 15:32:39 THERE HAVE BEEN UP TO 17,000 THAT HAVE BEEN AUTHORIZED. 15:32:42 I BELIEVE THERE ARE A THOUSAND OR SO THAT ARE ACTUALLY WORKING 15:32:43 RIGHT NOW. AND WHAT DO YOU EXPECT? 15:32:47 IT DEPENDS. IT DEPENDS ON WHETHER WE 15:32:55 CONTINUE TO SEE OIL REACHING THE SHORE. 15:32:57 IT DEPENDS -- WE'RE GOING TO HAVE TO START ROTATING PEOPLE IN 15:32:59 AND OUT. IN TERMS OF DOING AIR FLIGHTS 15:33:04 OVER THE BOOM AND MONITORING IT AND REPLACING IT BECAUSE IT 15:33:07 DOESN'T LAST, YOU KNOW, FOREVER OUT THERE. 15:33:08 IT GETS -- IT GETS BROKEN. WE'RE GOING TO NEED TO REPLACE 15:33:14 PEOPLE IN TERMS OF STAFFING, THE FORWARD OPERATING CENTERS AND 15:33:17 THE LIKE. SO I THINK OVER THE COURSE OF 15:33:22 THE SUMMER, WE'LL SEE A NUMBER OF THE GUARD DEPLOYED. 15:33:25 IN THOSE KINDS OF CAPACITIES, SIR. 15:33:27 WELL, IF YOU'LL INDULGE ME, WE THINK WE HAVE ANOTHER CRISIS 15:33:32 ON THE BORDER. AND I SENT YOU A LETTER ON APRIL 15:33:36 6th -- EXCUSE ME, BACK IN MARCH. YOU SENT ME A LETTER BACK ON 15:33:40 APRIL 9th, WELL OVER A MONTH AGO, IN RESPONSE TO OUR REQUEST 15:33:46 THAT THE GUARD BE SENT TO THE ARIZONA/MEXICO BORDER, AND I 15:33:51 QUOTE FROM YOUR RESPONSE, THE NATIONAL GUARD HAS A POTENTIAL 15:33:54 TO CONTRIBUTE ADDITIONAL CAPABILITIES AND CAPACITIES TO 15:33:57 ASSIST LAW ENFORCEMENT AGENCIES AND THEIR BORDER SECURITY AND 15:33:58 LAW ENFORCEMENT MISSIONS. THE USE OF THE GUARD TO SUPPORT 15:34:02 LAW ENFORCEMENT EFFORTS IS ONE OF THE MANY OPTIONS BEING 15:34:07 CONSIDERED IN THE ADMINISTRATION'S OVERALL BORDER 15:34:09 SECURITY STRATEGY. I'LL KEEP YOU INFORMED AS OUR 15:34:13 FORCE MULTIPLICATION ALONG THE SOUTHWEST BORDER CONTINUES. 15:34:17 DO YOU HAVE NOW IN THE INTERVENING MONTH AND -- OVER A 15:34:21 MONTH ANYTHING TO KEEP ME INFORMED ABOUT? 15:34:23 YES, I DO ACTUALLY BECAUSE WE'VE BEEN WORKING THE SOUTHWEST 15:34:29 BORDER ISSUE CONSTANTLY. AND HARD. 15:34:33 BUT LET ME -- IF I MIGHT, SENATOR, WE'LL GIVE YOUR STAFF 15:34:38 IF WE HAVE NOT ALREADY, I APOLOGIZE A MORE EXTENSIVE 15:34:40 BRIEFING. BUT WE HAVE -- I'M GOING TO USE 15:34:45 AS MY START DATE, THE DATE OF THE MURDER OF ROB KRENZ THE 15:34:51 RANCHER NEAR DOUGLAS. WE HAVE INCREASED FLIGHT HOURS, 15:34:57 50% OVER THE TUCSON SECTOR SINCE THE DAY OF THAT MURDER. 15:35:03 WE HAVE 24/7 COVERAGE THERE. AND WE CONTINUE TO INCREASE ON 15:35:12 BOTH THE FIXED AND ROTOR WING AIRCRAFT. 15:35:16 JUST ON THE TUCSON AREA, NOT JUST AT THE BORDER. 15:35:20 WE WILL MOVE AND I WILL GIVE YOU EXACT NUMBERS, MOBILE 15:35:23 SURVEILLANCE -- I DON'T MEAN TO INTERRUPT, 15:35:25 GOVERNOR, BUT I'M NOT -- MADAM SECRETARY. 15:35:27 BUT I KNOW ALL THOSE THINGS ARE GOING ON. 15:35:29 I WANT TO KNOW ABOUT WHETHER YOU'RE GOING TO SEND THE GUARDS 15:35:31 TO THE BORDER OR NOT? AS YOU KNOW, IF I MIGHT, GIVE 15:35:37 YOU ONE OTHER THING THAT WE HAVE ADDED IN ADDITION TO NUMBERS. 15:35:42 AND THAT WILL BE STARTING AT THE END OF THIS MONTH. 15:35:47 BUT BEGINNING AGAIN THE PROCESS OF INTERIOR REPATRIATION OF 15:35:49 EVERYBODY THAT WE PICK UP. BUT WITH RESPECT TO THE GUARD, 15:36:00 THOSE REQUESTS AS YOU KNOW ARE INVOLVED IN THE DEPARTMENT OF 15:36:03 DEFENSE. THEY INVOLVE THE DEPARTMENT OF 15:36:07 HOMELAND SECURITY AND INVOLVE THE WHITE HOUSE. 15:36:10 THAT QUEST AND THAT ANALYSIS REMAINS IN THAT INTERAGENCY 15:36:13 PROCESS. AND DO WE HAVE ANY IDEA AS TO 15:36:16 WHEN THAT DECISION MIGHT BE MADE? 15:36:19 I WOULD LIKE IT TO BE MADE AS SOON AS POSSIBLE. 15:36:21 BUT I CANNOT GIVE YOU A DATE CERTAIN. 15:36:26 WELL, MEANWHILE, PEOPLE'S HOMES ARE BEING VIOLATED AND 15:36:29 THEIR FAMILIES CAN'T TAKE KIDS TO THE BUS STOP. 15:36:34 AND YOU'RE VERY FAMILIAR WITH THE ISSUE BECAUSE YOU YOURSELVES 15:36:39 YOURSELF ASKED FOR THE GUARD TO GO TO THE BORDER BACK IN 2006. 15:36:43 SO I DON'T KNOW WHAT IT TAKES FOR US TO GET A DECISION ON IT. 15:36:47 AT LEAST THE PEOPLE IN MY STATE HAVE THE RIGHT TO KNOW WHETHER, 15:36:55 SINCE THIS IS A LONG-STANDING REQUEST, IN FACT, IT WAS 15:37:00 REQUESTED BACK IN 2009 -- I THINK THEY HAVE A RIGHT TO KNOW 15:37:02 WHETHER THEY ARE GOING TO BE SENT OR NOT. 15:37:08 I WOULD HOPE YOU WOULD EXPEDITE THAT PROCESS AT LEAST TELLING US 15:37:13 WHETHER THEY'RE GOING TO BE SENT OR NOT. 15:37:17 FINALLY, IF I MIGHT ASK OF YOU, HAVE YOU HAD A CHANCE TO REVIEW 15:37:20 THE NEW LAW THAT WAS PASSED BY THE STATE OF ARIZONA? 15:37:24 I'VE NOT REVIEWED IT IN DETAIL. 15:37:25 I CERTAINLY KNOW OF IT, SENATOR. SO YOU'RE NOT PREPARED TO 15:37:29 MAKE A JUDGMENT ON IT? SENATOR, THAT IS NOT A LAW -- 15:37:41 LET ME JUST SAY THIS. AS YOU KNOW, AND ARE WELL AWARE, 15:37:49 THAT'S NOT THE KIND OF LAW I WOULD HAVE SIGNED? 15:37:50 FOR WHAT REASON? BECAUSE I BELIEVE IT'S A BAD 15:37:55 LAW ENFORCEMENT LAW. I BELIEVE IT MANDATES AND 15:37:59 REQUIRES LOCAL LAW ENFORCEMENT -- OR PUTS THEM IN A 15:38:01 POSITION MANY DO NOT WANT TO BE PLACED IN. 15:38:05 WHEN I WAS DEALING WITH LAWS HAVE THAT ILK, MOST OF THE LAW 15:38:11 ENFORCEMENT ORGANIZATIONS IN ARIZONA AT THAT TIME WERE 15:38:14 OPPOSED TO SUCH LEGISLATION. WELL, I'D BE PLEASED MAYBE IN 15:38:18 WRITING TO HEAR WHAT SPECIFIC ASPECT OF THE LAW WOULD IMPEDE 15:38:23 OR HARM LAW ENFORCEMENT SINCE THE MAJORITY OF LAW ENFORCEMENT 15:38:27 IN ARIZONA STRONGLY SUPPORTS THIS LEGISLATION. 15:38:33 AND UNFORTUNATELY BOTH THE PRESIDENT OF THE UNITED STATES 15:38:34 AND -- THE PRESIDENT OF THE UNITED STATES PORTRAYED IT AS 15:38:38 A -- THAT SOMEONE CAN'T EVEN GO OUT FOR ICE CREAM WITHOUT BEING 15:38:42 HARASSED, WHICH IS ONE OF THE MORE OUTRAGEOUS STATEMENTS I'VE 15:38:44 EVER HEARD. AND NOW OUR OWN ATTORNEY GENERAL 15:38:50 HAS -- AFTER CONDEMNING THE LAW SAID HE HADN'T EVEN READ IT. 15:38:54 THIS IS AN IMPORTANT ISSUE, NOT JUST IN ARIZONA, BUT AROUND THIS 15:38:57 COUNTRY. I WOULD HOPE THAT WE WOULD AT 15:39:00 LEAST HAVE A DECISION ON WHETHER THE GUARD IS GOING TO BE SENT TO 15:39:02 THE BORDER. AND I WOULD LIKE TO HAVE 15:39:06 SPECIFICS, IF YOU GET TIME, AND I KNOW IT'S NOT IN YOUR AREA OF 15:39:10 EXPERTISE ANYMORE -- BUT I KNOW ALSO AS A FORMER GOVERNOR OF THE 15:39:15 STATE, YOU HAVE A SIGNIFICANT INTEREST OF WHAT PARTICULAR 15:39:18 ASPECTS OF THAT LAW THAT YOU WOULD FIND OBJECTIONABLE. 15:39:20 THANK YOU, MR. CHAIRMAN. THANKS, SENATOR MARION. 15:39:23 -- McCAIN. SENATOR LANDRIEU, THANKS FOR 15:39:27 BEING HERE. YOU'VE COME TO ONE OF THESE 15:39:31 INQUIRIES AS YOU DID SO OFTEN DURING THE KATRINA 15:39:35 INVESTIGATIONS WITH A REAL PERSONAL INTEREST ON BEHALF OF 15:39:36 YOUR STATE. SO I APPRECIATE THAT YOU'RE 15:39:37 HERE. AND I LOOK FORWARD TO YOUR 15:39:39 QUESTIONS NOW. THANK YOU, MR. CHAIRMAN. 15:39:42 MY JOB IS MADE SOMEWHAT EASIER BECAUSE OF THE WORK THAT YOU AND 15:39:45 THE RANKING MEMBER HAVE DONE. AND I MEAN THAT SINCERELY. 15:39:47 AND I THANK YOU. SENATOR COLLINS FOR CALLING THIS 15:39:52 HEARING. I'VE ACTUALLY ENCOURAGED THE 15:39:55 CALLING OF HEARINGS OF A VARIETY OF DIFFERENT HEARINGS BECAUSE 15:39:59 OBVIOUSLY THE PEOPLE THAT I REPRESENT WOULD LIKE TO ANSWERS. 15:40:00 THEY'RE EXTREMELY CONCERNED. EVERYONE IN THE STATE, ALONG THE 15:40:05 GULF COAST PARTICULARLY THOSE ALONG THE COASTAL COMMUNITIES. 15:40:09 SO I WANT TO BEGIN, MR. CHAIRMAN, BY SAYING THAT THE 15:40:12 QUESTIONS THAT YOU ASKED IN YOUR OPENING STATEMENT, I HOPE THAT 15:40:15 WE WILL GET ANSWERS TO. AND I THOUGHT THAT THEY WERE 15:40:18 EXCELLENT AND RIGHT ON POINT. SECONDLY, MADAM SECRETARY, I 15:40:24 WANT TO THANK YOU FOR YOUR MULTIVISITS TO LOUISIANA OVER 15:40:28 THE LAST SEVERAL MONTHS BEFORE THIS INCIDENT HAPPENED. 15:40:32 WORKING ON THE LAST INCIDENT THAT OCCURRED AS WELL AS YOUR 15:40:35 TIME FOCUSED ON THIS ONE. AND THE MANY SENIOR-LEVEL 15:40:42 OFFICIALS THAT HAVE BEEN ON THE GROUND FROM THE COAST GUARD TO 15:40:44 THE INTERIOR DEPARTMENT TO NOAA, TO EPA. 15:40:48 YOU ALL HAVEN'T JUST SENT YOUR MIDMANAGERS OR YOUR NEWLY 15:40:54 APPOINTED DIRECTORS BUT YOUR CABINET OFFICIALS THERE HAVE 15:40:56 BEEN AND CONTINUE. AND I GET GOOD FEEDBACK FROM 15:41:01 REPUBLICAN AND DEMOCRATIC LOCAL OFFICIALS BECAUSE OF THAT. 15:41:05 AND I WANT ON THEIR BEHALF EXPRESS OUR THANKS. 15:41:09 I WOULD SAY THAT THE PEOPLE IN LOUISIANA ARE VERY INTERESTED IN 15:41:11 A COUPLE OF IMPORTANT QUESTIONS. SOME OF WHICH YOU HIT. 15:41:16 WHEN HAVE WILL THIS UNCONTROLLED FLOW BE STOPPED? 15:41:20 IS EVERYTHING BEING DONE THAT CAN POSSIBLY BE DONE? 15:41:22 WHEN AND HOW WILL CLAIMS BE PAID? 15:41:23 WILL THEY BE TRANSPARENT? WILL THEY BE ADEQUATE? 15:41:27 WHAT ARE THE LONG-TERM IMPACTS TO OUR FISHERIES, WHICH IS A 15:41:30 MULTIBILLION DOLLAR INDUSTRY, AS YOU KNOW. 15:41:33 AND HOW CAN THIS INDUSTRY BE MADE SAFER FOR THE FUTURE? 15:41:39 I'M NOT GOING TO ASK YOU TO RESPOND TO ALL A FOUR OF THOSE 15:41:42 NOW. BUT IN WRITING I WOULD LIKE SOME 15:41:45 RESPONSE. I WOULD LIKE TO TAKE A MINUTE OF 15:41:47 MY QUESTIONS, MR. CHAIRMAN, TO PUT SOME THINGS IN PERSPECTIVE 15:41:51 FOR THIS SITUATION. I THINK IT'S IMPORTANT. 15:41:54 I DID THIS AT THE OVERSIGHT HEARING ON ENERGY. 15:41:58 I DID THIS AT THE OVERSIGHT HEARING FOR THE EPW HEARING. 15:42:00 AND I'D LIKE TO DO IT TODAY. THERE ARE 42,645 WELLS THAT HAVE 15:42:09 BEEN DRILLED IN STATE AND FEDERAL WATERS IN THE GULF OF 15:42:10 MEXICO. ALONE. 15:42:14 THE FIRST DEEP WELL WAS DRILLED 31 YEARS AGO. 15:42:17 NOT LAST WEEK. THE FIRST DEEP WELL 31 YEARS AGO 15:42:21 IN 1979. FROM THAT TIME UNTIL 2008, THERE 15:42:29 HAVE BEEN 2,239 DEEP WATER WELLS DRILLED AVERAGING APPROXIMATELY 15:42:35 133 WELLS PER YEAR. GETTING TO YOUR POINT, RANKING 15:42:42 MEMBER COLLINS, IN 1990, YOU'RE CORRECT. 15:42:45 ONLY 4% OF THE OIL COMING FROM THE GULF WAS RESPONSIBLE IN THE 15:42:48 DEEP WATER. ONLY 4%. 15:42:51 BUT TODAY 60% OF THE OIL COMING FROM THE GULF COMES FROM DEEP 15:42:55 WATER AND ULTRA DEEP WATER. THE RECORD WILL SHOW THAT FROM 15:43:01 1947 TO 2009, ONLY 1, -- I'M SORRY 175,000 BARRELS HAVE BEEN 15:43:07 SPILLED OUT OF 16 BILLION PRODUCED. 15:43:10 THAT'S ABOUT ONE THOUSANDTH OF 1% OF TOTAL PRODUCTION. 15:43:13 SO UNTIL THIS HAPPENED, THE RECORD WAS PRETTY GOOD. 15:43:18 THE PROBLEM IS, THIS BLOWOUT IS PUTTING MORE OIL IN THE WATER IN 15:43:24 ONE AND A HALF DAYS THAN HAS BEEN PUT IN THIS WATER IN THE 15:43:25 LAST DECADE. THAT IS STARTLING TO THOSE OF US 15:43:30 THAT ARE FAIRLY FAMILIAR WITH THE INDUSTRY. 15:43:32 AND WE'RE EXTREMELY CONCERNED AND WANT IT TO BE SAFER. 15:43:37 SO, ONE, I SUPPORT THE PRESIDENT'S 30-DAY LOOK. 15:43:41 I MOST CERTAINLY SUPPORT TIGHTER CONTROLS OVER DEEP WATER WELLS. 15:43:44 AND WOULD SAY TO THIS COMMITTEE, WE PIONEERED THIS TECHNOLOGY IN 15:43:46 THE GULF. GULF OF MEXICO. 15:43:49 WE DID. IT'S IMPORTANT THAT WE GET THIS 15:43:53 RIGHT BECAUSE IT HAS A MAJOR IMPACT ON HOW THESE WELLS ARE 15:43:55 DRILLED AROUND THE WORLD. IF OURS ARE SAFE, MOST OTHER 15:43:59 COUNTRIES WILL BE SAFE. AND WE HAVE AN OBLIGATION NOT 15:44:04 JUST TO OURSELVES BUT TO THE PEOPLE OF THE PLANET ACTUALLY. 15:44:08 SO LET ME ASK A COUPLE THINGS 'CAUSE I'M EXTREMELY INTERESTED 15:44:12 IN HOW MUCH MONEY OUR GOVERNMENT HAS SPENT ON RESEARCH AND 15:44:18 DEVELOPMENT, EITHER THROUGH HOMELAND SECURITY, EPA, NOAA, OR 15:44:20 INTERIOR? DO YOU ALL HAVE A RECORD? 15:44:24 NOW YOU WON'T HAVE FROM THOSE OTHER AGENCIES BUT MADAM 15:44:27 SECRETARY, FROM YOUR OWN AGENCY, DO YOU KNOW IF ANY MONEY? 15:44:30 AND IF SO WHAT THE DOLLAR AMOUNT IS OR WHAT PERCENTAGE IS SPENT 15:44:35 ON RESPONSE TO A CATASTROPHE LIKE THIS? 15:44:38 AND IF YOU DON'T HAVE THAT EXACT NUMBER, COULD YOU GIVE IT TO ME 15:44:42 IN WRITING AND MAYBE COMMENT GENERALLY ON IF YOU THINK 15:44:46 HOMELAND SECURITY IS DOING WHAT IT NEEDS TO DO TO BE BETTER 15:44:49 PREPARED OR PREPARED FOR AN INCIDENT LIKE THIS? 15:44:53 WELL, WE'RE ALWAYS -- YOU KNOW, AS I SAID EARLIER, YOU 15:44:57 LEARN FROM EVERY INCIDENT. YOU BEGIN WITH THE PLANS AND YOU 15:45:00 EXERCISE THE PLANS. BUT THEN AS ANY INCIDENT 15:45:03 COORDINATOR OR COMMANDER WILL TELL YOU, YOU'VE GOT TO WORK THE 15:45:06 PROBLEM AT THAT POINT. YOU'VE GOT TO GO AT IT. 15:45:09 AND THAT'S WHAT WE HAVE BEEN DOING. 15:45:14 I WILL TELL YOU, WE ARE ACCUMULATING WITHIN THE 15:45:17 DEPARTMENT OF HOMELAND SECURITY THE COSTS THAT WE ARE EXPENDING. 15:45:21 AND OUR DEPARTMENT'S RESPONSE, THAT INCLUDES THE COAST GUARD. 15:45:26 IT WILL NOT BE AN INSIGNIFICANT SUM. 15:45:29 AND WE HAVE ASKED THROUGH THE NRT THAT THE OTHER FEDERAL 15:45:32 AGENCIES KEEP TRACK OF THE COSTS THAT THEY ARE EXPENDING. 15:45:35 IT WOULD BE -- SINCE WE ARE REALLY IN THE MIDDLE OF 15:45:39 RESPONSES, I INDICATED TO SENATOR McCAIN, I THINK IT WOULD 15:45:41 BE PREMATURE TO GIVE YOU AN ESTIMATE OF THAT. 15:45:46 AND I JUST WANT TO RESTATE AND I DON'T HAVE THE FULL COST 15:45:51 OF WHAT THE ESTIMATES WILL BE, AND I'M ASSUMING BP HAVE STEPPED 15:45:54 UP AS THEY HAVE SAID AND COVER ALL OF THESE COSTS FOR 15:45:57 INDIVIDUALS, FOR BUSINESSES, FOR THE GOVERNMENT AT EVERY LEVEL. 15:46:03 AND I KNOW THAT THEY HAVE BEEN FORTHCOMING WITH SOME OF THE 15:46:05 REQUESTS FROM OUR GOVERNORS, $25 MILLION IN AUTHORITY UP TO A 15:46:10 MILLION DOLLARS FOR SOME OF THE COUNTIES, WHICH HAS BEEN 15:46:12 IMPRESSIVE BUT WE MAY NEED MORE THAN THAT. 15:46:15 BUT IT'S THE RESEARCH AND DEVELOPMENT DOLLARS IN THESE 15:46:19 MAJOR AGENCIES THAT I'M WONDERING CONSIDERING THIS 15:46:22 INDUSTRY, JUST THE INDUSTRY FOR BONUSES AND SEVERANCE, HAVE 15:46:28 CONTRIBUTED $165 BILLION TO THE FEDERAL TREASURY SINCE 1955. 15:46:33 $165 BILLION. WHAT PERCENTAGE OF OUR BUDGETS 15:46:39 AND THEIR BUDGETS I'M GOING TO BE ASK THEM IS GOING TO RESEARCH 15:46:44 AND DEVELOPMENT ON SPECIFICALLY SAFETY, EQUIPMENT, NEW 15:46:46 TECHNOLOGY, AND CLEANUP. BECAUSE WE MAY NEED TO SUGGEST 15:46:52 MORE MONEY TO MAKE SURE THIS NEVER HAPPENS AGAIN. 15:46:55 SO WE'RE GOING TO TRY TO COLLECT THOSE -- THAT DATA, 15:46:57 MR. CHAIRMAN. AND MY TIME HAS EXPIRED. 15:47:02 SO THANK YOU. SENATOR PRYOR? 15:47:04 THANK YOU, MR. CHAIRMAN. I WANT TO THANK YOU AND SENATOR 15:47:07 COLLINS FOR LEADING THE EFFORT ON THIS. 15:47:10 AND LET ME, IF I MAY, MADAM SECRETARY, START WITH YOU. 15:47:15 AND THAT IS JUST, YOU KNOW, ABOUT THE STAFFORD ACT. 15:47:19 AND TYPICALLY A DISASTER HAPPENS AND GOVERNORS MAKE REQUESTS. 15:47:23 I'M ASSUMING THAT YOU'VE ALREADY DONE QUITE A BIT OF WORK WITH 15:47:26 THE GOVERNORS TO UNDERSTAND THE SCOPE AND THE NATURE OF THEIR 15:47:28 REQUEST. AND COULD YOU GIVE US JUST A 15:47:33 LITTLE OUTLINE ON WHAT YOU THINK THIS NEXT FEW WEEKS MIGHT LOOK 15:47:36 LIKE DOWN THERE? YES. 15:47:39 WELL, WE HAVE REPRESENTATIVES OF THE GOVERNORS IN ALL OF THE 15:47:46 VARIOUS COMMAND CENTERS DOWN THERE AS WELL AS -- WE HAVE A 15:47:48 DAILY CALL WITH THE GOVERNORS. WE ARE WORKING WITH THEM NOW ON 15:47:56 WHAT THE CLAIMS PROCESS SHOULD BE FOR STATES AND LOCALITIES. 15:47:59 WE'RE VERY COGNIZANT OF LONG-TERM ECONOMIC DAMAGES THAT 15:48:03 MIGHT PERTAIN SUCH AS TO SOME OF THE FISHERIES DOWN THERE THAT 15:48:07 HAVE BEEN CLOSED BY NOAA ALREADY. 15:48:10 AND SO WE'RE WORKING OUR WAY THROUGH THAT. 15:48:13 THIS IS -- AS YOU KNOW, SENATOR, THIS IS NOT A STAFFORD ACT 15:48:16 SITUATION. THIS COMES UNDER ANOTHER STATUTE 15:48:20 ALL TOGETHER. AND THE DIFFERENCE IS HUGE 15:48:24 BECAUSE UNDER THE STAFFORD ACT, THE TAXPAYERS OF THE UNITED 15:48:29 STATES PAY FOR THE RESPONSE. UNDER THIS ONE, THE RESPONSIBLE 15:48:33 PARTY IS GOING TO PAY. AND SO WE'RE IN THE PROCESS OF 15:48:37 MAKING SURE THERE'S A GOOD AND EASY PROCEDURE FOR THOSE CLAIMS 15:48:40 TO BE MADE. OKAY. 15:48:41 GOOD. AND LET ME ASK REAR ADMIRAL 15:48:51 NEFFENGER, IF I MAY, WITH YOU. I KNOW THAT, FOR EXAMPLE, OTHER 15:48:56 CIRCUMSTANCES, FEMA, FOR EXAMPLE, MIGHT BURN THROUGH 15:49:00 RESOURCES VERY RAPIDLY ON A MAJOR DISASTER. 15:49:03 IS THAT TRUE WITH YOUR AGENCY AND HOW YOU'RE DEALING WITH 15:49:05 THIS? WELL, AS A THE SECRETARY 15:49:11 MENTIONED, YOU KNOW, WE ARE SPENDING MONEY EVERY DAY TO 15:49:12 MANAGE THIS RESPONSE. BUT AS SHE ALSO MENTIONED, WHAT 15:49:16 THE OIL POLLUTION ACT OF 1990 PROVIDES IS AN ABILITY TO REACH 15:49:20 INTO THE OIL SPILL LIABILITY TRUST FUND. 15:49:26 THE EMERGENCY FUND OF THAT. THERE'S AN INITIAL $50 MILLION 15:49:29 AVAILABLE. WE CAN TAKE A ONE-TIME TRANSFER 15:49:33 OF ANOTHER $100 MILLION INTO THAT EMERGENCY FUND, WHICH WE 15:49:35 HAVE DONE. WE'VE ASKED FOR AND HAS BEEN 15:49:37 GRANTED. SO THAT PROVIDED $150 MILLION TO 15:49:42 THE FEDERAL GOVERNMENT FOR ITS RESPONSE ACTION. 15:49:46 AND THAT'S PRIMARILY PAYING FOR COAST GUARD ACTIVITIES AT THIS 15:49:47 POINT. AND I KNOW EITHER IN THIS 15:49:52 COMMITTEE OR IN OTHER COMMITTEES, WE'VE TALKED ABOUT 15:49:56 THE COAST GUARD BEFORE AND HOW YOU GUYS JUST DO GREAT WORK. 15:50:00 AND WE SAW IT DOWN ON THE GULF COAST AFTER KATRINA AND WE'VE 15:50:03 SEEN IT MANY, MANY TIMES. BUT ALSO WE RECOGNIZE THAT 15:50:07 REALLY IN MANY WAYS, YOU'RE UNDERRESOURCED. 15:50:11 AND YOU HAVE A BACKLOG OF OLDER SHIPS THAT YOU'RE TRYING TO 15:50:14 UPDATE OR REPLACE AND ALL THAT. HAS THE FACT THAT YOU'VE BEEN 15:50:20 HAMPERED FROM A BUDGETARY SENSE -- CAN YOU SEE THAT AND 15:50:24 HOW ARE YOU ABLE TO RESPOND TO THIS? 15:50:28 OUR BUDGET SITUATION IS NOT HAMPERED OUR RESPONSE INITIALLY 15:50:31 TO THIS. OBVIOUSLY, FOR ANY AGENCY, A 15:50:34 LONG-TERM SUSTAINED RESPONSE TO SOMETHING OF THIS MAGNITUDE 15:50:36 BECOMES A CHALLENGE. AND THAT WOULD BE THE CASE NO 15:50:38 MATTER HOW MANY PEOPLE YOU HAVE. I THINK AS THE SECRETARY SAID, 15:50:43 SUSTAINABILITY IS ONE OF THE CRITICAL CONCERNS THAT WE'RE 15:50:44 LOOKING AT RIGHT NOW. HOW DO YOU -- HOW DO YOU DO THIS 15:50:48 IF IT WERE TO GO ON FOR SOME EXTENDED PERIOD OF TIME. 15:50:52 WE HAVE QUITE A FEW FORCES SURGED TO THAT AREA RIGHT NOW. 15:50:54 AT SOME POINT WE HAVE TO LOOK AT WHAT THE IMPACT AND THE RISK 15:50:57 POSITION WE TAKE THROUGHOUT THE REST OF THE COUNTRY AS WE PULL 15:51:00 THOSE RESOURCES FROM OTHER PARTS OF THE COUNTRY. 15:51:05 AND I KNOW YOUR OFFICE AS WELL AS FEMA AND MANY OTHER 15:51:12 FEDERAL, LOCAL STATE AGENCIES TRY TO ANTICIPATE VARIOUS 15:51:16 DISASTERS AND, YOU KNOW, RUN THROUGH EXERCISES AND GAME THEM 15:51:19 OUT TO TRY TO UNDERSTAND WHAT ALL WOULD HAPPEN, WERE YOU ABLE 15:51:21 TO DO THIS? HAVE YOU BEEN DOING THIS IN 15:51:26 YEARS PAST WITH A MAJOR OIL EVENT LIKE THIS? 15:51:30 WELL, EVERY THREE YEARS SOMEWHERE IN THE COUNTRY WE DO 15:51:32 WHAT WE CALL A SPILL OF NATIONAL SIGNIFICANCE EXERCISE. 15:51:36 AND THAT'S A FULL SCALE DEPLOYMENT EXERCISE WHERE WE 15:51:40 SIMULATE A MASSIVE OIL DISCHARGE OF SOME SORT. 15:51:43 THE MOST RECENT ONE WAS ON THE NORTHEAST OFF THE COAST OF 15:51:47 PORTLAND, MAYBE McCAIN WHERE WE DID A SPILL OF SIGNIFICANT 15:51:51 SIMULATING A LARGE TANKER OIL SPILL. 15:51:55 THE ONE THAT SENATOR COLLINS WAS ONE THAT I PARTICIPATED IN 2004 15:51:58 OFF THE SOUTHERN COAST OF CALIFORNIA. 15:52:02 AGAIN SIMULATING A TANKSHIP RUPTURING AND SPILLING A LOT OF 15:52:06 OIL. WE DO EXERCISE FOR MASSIVE OIL 15:52:10 DISCHARGES PERIODICALLY THROUGHOUT THE COUNTRY. 15:52:12 AND IN EVERY CAPTAIN OF THE PORT ZONE AND FEDERAL ZONE, THERE'S A 15:52:18 CYCLE OF EXERCISES THAT ARE REQUIRED TO BE CONDUCTED ON AN 15:52:24 ANNUAL, BIANNUAL AND TRIANNUAL BASIS. 15:52:25 I WOULD SAY WE EXERCISE QUITE A BIT. 15:52:28 ALTHOUGH THOSE FULL SCALE EXERCISES ARE EVERY THREE YEARS 15:52:30 AND THEY'RE NOT NECESSARILY IN EVERY ZONE EVERY THREE YEARS. 15:52:34 BUT IT SOUNDS LIKE THOSE EXERCISES HAVE PAID OFF FOR YOU 15:52:37 IN HOW YOU'VE BEEN ABLE TO RESPOND TO THIS? 15:52:38 WELL, I THINK THEY HAVE. CLEARLY, THE RESPONSE THAT WE 15:52:44 WERE ABLE TO MOUNT TO THIS SPILL IS A SIGNIFICANT IMPROVEMENT 15:52:46 OVER WHAT YOU'VE MIGHT HAVE SEEN 20 YEARS AGO PRIOR TO THE EXXON 15:52:49 SPILL. BEFORE WE HAD THIS PROGRAM IN 15:52:51 PLACE. THERE'S A ROBUST EXERCISE 15:52:56 OVERSIGHT PROGRAM THAT WE HAVE CALLED THE PREP, 06:53:44 15:53:47 AND THANK YOU VERY MUCH FOR YOUR ANSWERS. 15:53:49 MR. CHAIRMAN, I'D LIKE TO NOTE IN OUR SUBCOMMITTEE, THE STATE, 15:53:52 LOCAL PRIVATE SECTOR PREPAREDNESS AND INTEGRATION 15:53:56 SUBCOMMITTEE, WE'RE ACTUALLY HAVING A HEARING ON MAY 25th 15:54:00 ABOUT THIS AND GO INTO MORE DETAIL ABOUT WHAT STATE, LOCAL 15:54:04 AND PRIVATE SECTOR HAVE BEEN DOING FOR THIS. 15:54:06 THANK YOU, SENATOR PRYOR, I APPRECIATE YOUR SUBCOMMITTEE IS 15:54:08 DOING THAT. I'D LIKE IF YOU WOULD STICK 15:54:14 AROUND AND WE'LL DO A SECOND ROUND. 15:54:16 AS I HEAR THE QUESTIONS BACK AND FORTH, IT SEEMS TO ME THAT 15:54:22 POST-EXXON VALDEZ, THE INVOLVEMENT AND THE OIL INDUSTRY 15:54:25 HAVE WORKED TOGETHER TO GET VERY GOOD AT DEALING WITH A MAJOR 15:54:28 SPILL AT THE SURFACE. BUT I STILL REMAIN TO BE 15:54:34 CONVINCED, ONE, THAT WE DID ENOUGH TO PREVENT THIS DEEP 15:54:37 WATER ACCIDENT IN THE WELL FROM OCCURRING. 15:54:38 AND, TWO, THAT WE'RE READY TO DEAL WITH THE UNBELIEVABLE 15:54:43 CONSEQUENCES OF IT UNDER WATER. IN THAT REGARD, I WANTED TO ASK 15:54:48 BOTH OF YOU THIS QUESTION -- WE'VE BEEN READING IN THE MEDIA 15:54:53 IN THE LAST FEW DAYS THAT THERE ARE SCIENTISTS WHO BELIEVE -- 15:54:59 WHO HAVE ESSENTIALLY DISCOVERED AND ARE REPORTING GIANT DEEP SEA 15:55:03 PLUMES OF OIL IN THE GULF AS A RESULT OF THIS ACCIDENT. 15:55:06 ONE OF WHICH MEASURED 10 MILES LONG, 3 MILES WIDE, AND 300 FEET 15:55:11 THICK IN SPOTS. WHAT ARE WE CAPABLE OF DOING TO 15:55:21 TRY TO BREAK THAT UP? AND IF WE DON'T, WHAT'S GOING TO 15:55:26 HAPPEN TO IT? IN OTHER WORDS, THE CONSEQUENCES 15:55:30 HERE FOR THE ENVIRONMENT, OBVIOUSLY, THE GULF'S 15:55:33 ENVIRONMENT ARE POTENTIALLY VERY SEVERE. 15:55:34 INDEED, MR. CHAIRMAN. I THINK FIRST OF ALL WE HAVE TO 15:55:43 BE CAREFUL RIGHT NOW ABOUT WHAT IS BEING ASSUMED ABOUT THE 15:55:46 UNDERSEA PLUME AND NOT. YEAH. 15:55:48 I THINK THE HEAD OF NOAA THIS AFTERNOON PUT OUT A STATEMENT 15:55:53 SAYING THAT SOME OF THOSE EARLY REPORTS THAT HAD BEEN MADE WERE 15:55:58 NOT BASED ON OBSERVATION. AND HAD NOT BEEN VERIFIED AND 15:56:01 CONFIRMED. CERTAINLY BY SOME OF THE OTHER 15:56:05 WORK THAT WAS BEING -- WELL, THAT'S IMPORTANT FOR US 15:56:06 TO HEAR. OBVIOUSLY, WE NEED TO 15:56:11 CONTINUE TO WATCH THE UNDERSEA PLUME TO THE EXTENT ONE DEVELOPS 15:56:19 VERSUS, YOU KNOW, IN ADDITION TO THE TOP OF THE SEA SPILL. 15:56:26 SO THAT PROCESS IS BEING LOOKED AT WITH A CONSORTIUM REALLY OF 15:56:31 GOVERNMENT SCIENTISTS WHO CONTINUE TO LOOK AT WHAT'S GOING 15:56:33 ON UNDERNEATH THE SURFACE OF THE OCEAN? 15:56:34 WHAT'S HAPPENING THERE? AND AGAIN, I THINK NOAA DIRECTOR 15:56:40 REALLY RESPONDED VERY STRONGLY TO SOME OF THESE EARLY 15:56:46 STATEMENTS THAT HAD NOT BEEN VERIFIED AND SEEM INACCURATE. 15:56:51 NOW SECONDLY, THE EPA HAS APPROVED THE UNDERSEA USE OF 15:56:54 DISBURSEMENTS. -- DISPERSEMENTS. 15:57:02 IT'S VERY NOVEL AND IT'S DONE IN A CONTROLLED WAY. 15:57:03 EVERY TIME WE DO SOMETHING LIKE THAT, YOU HAVE -- YOU KNOW, YOU 15:57:09 HAVE TO EXPLORE KIND OF THE ENVIRONMENTAL TRADEOFFS THAT ARE 15:57:10 BEING MADE. BUT EPA HAS A VERY RIGOROUS 15:57:17 PROTOCOL HOW THAT WILL BE DONE AND THE CONTINUOUS MONITORING 15:57:20 THAT WILL BE HAPPENING. AND SO THOSE UNDERSEA 15:57:27 DISPERSANTS ARE BEING INJECTED IN THE LAST FEW DAYS. 15:57:32 IT SEEMS WE'RE EXPERIMENTING BECAUSE THIS IS SOMETHING 15:57:36 UNPRECEDENTED AND UNANTICIPATED BY THE REGULATORY PROCESS. 15:57:41 ANY, THE ONE THAT THE MINERALS MANAGEMENT SERVICE IMPOSED ON 15:57:43 THE COMPANIES PRIOR TO GRANTING PERMISSION ON THIS WELL. 15:57:48 ADMIRAL, LET ME ASK YOU INSOFAR AS THE COAST GUARD OBVIOUSLY HAS 15:57:54 SUPERVISION OVER MARINE OIL SPILLS, ISN'T THERE A DANGER 15:57:59 THAT THESE ENORMOUS PLUMES WILL BE TAKEN BY THE CURRENT AND 15:58:03 MOVED FAR AWAY FROM THE ACTUAL SOURCE OF THE SPILL NOW? 15:58:08 AND THAT COULD HAVE VERY, VERY WIDE-RANGING AND BAD 15:58:10 ENVIRONMENTAL EFFECTS? I THINK -- MR. CHAIRMAN, I 15:58:15 THINK YOU'RE REFERRING TO THE LOOP CURRENT THAT'S BEEN TALKED 15:58:17 ABOUT. YES, YES. 15:58:18 I KNOW THAT WE'VE BEEN WATCHING THAT VERY CAREFULLY. 15:58:21 WE'RE USING -- NOAA IS HELPING US TO MODEL THE LOCATION. 15:58:24 CURRENTLY IT SHOWS TO BE SOMEWHERE IN THE NEIGHBORHOOD OF 15:58:27 40 TO 50 MILES FROM THE SOUTHERN EDGE OF THE SPILL. 15:58:29 SO WE ARE WATCHING THAT CAREFULLY. 15:58:34 AND AS A RESULT OF THAT, WE'RE PREPARING FOR THE SOUTHERN 15:58:38 FLORIDA COAST. I WILL SAY THE OTHER THING, THE 15:58:45 MATERIAL THAT WILL BE PICKED UP IN THE LOOP CURRENT IS HEAVILY 15:58:48 WEATHERED OIL. TAR BALLS FORMING ON THE 15:58:51 BEACHES. THEY COME ASHORE IN WAYS IN 15:58:57 WHICH IT'S RELATIVELY EASY TO CLEAN UP. 15:58:58 IT'S NOT A GOOD THING. IT WILL BE A MORE MANAGEABLE 15:59:01 PIECE THAT WE'LL DEAL WITH THERE THAN WHAT WE'RE CURRENTLY 15:59:05 LOOKING OUT IN THE GULF, SIR. WE'LL GO TO THE FINAL WORD TO 15:59:07 THE SECRETARY. HAVE YOU ENCOUNTERED UNDERWATER 15:59:15 SEA PLUMES OF OIL OF THE DIMENSIONS BEING DISCUSSED IN 15:59:19 YOUR EXPERIENCE WITH THE COAST GUARD? 15:59:20 NO, SIR. THIS IS THE FIRST TIME I'VE SEEN 15:59:23 A LEAK OF THIS DEPTH THAT POSES THESE KINDS OF COMPLEXITIES. 15:59:25 SECRETARY? I WAS JUST GOING TO MENTION 15:59:28 THAT. IN RESPECT TO THE LOOP CURRENT, 15:59:34 THE NUMBERS ARE AS THE REAR ADMIRAL SAID IN TERMS OF 15:59:36 DISTANCE, WE'RE MONITORING IT VERY CLOSELY. 15:59:38 BUT WE'RE ACTUALLY TREATING IT AS IF IT WERE ITS OWN COASTLINE. 15:59:44 IN OTHER WORDS, THAT IF WE WERE TO SEE THAT THE OIL REALLY WAS 15:59:46 BEGINNING TO MOVE TOWARD THE LOOP CURRENT, WE WOULD BEGIN 15:59:52 DOING SOME THINGS BY WAY OF DISPERSANT AND BOOMING AS IF THE 15:59:56 LOOP CURRENT ITSELF WERE A PIECE OF THE COAST. 15:59:57 THANK YOU. MY TIME IS UP. 15:59:59 SENATOR COLLINS? THANK YOU. 16:01:51 COLLINS questions *relief well? A sure thing?* 16:03:18 NAP a question you want to address to BP 16:03:33 NEFF in talking to those who are. 16:03:45 NEFF the topkill - the tech they're using to shut the well is tested method 16:07:10 LANDRIEU questions 16:07:15 *trust fund* 16:08:25 NAP there is a claims process, there are rollover numbers PANEL #2 Lamar McKay Chairman and President BP America, Inc. 16:12:30 McKAY statement 16:15:10 why did blowout preventer fail?