BP accused of lobbying for early release of Lockerbie bomber; 30.08.2009 IRAN: Tripoli hospital: INT Reporter enters private hospital room where Abdelbaset Al Megrahi lies in bed, oxygen mask covering his mouth

NAME: UK LIBYA 2 20090906I TAPE: EF09/0845 IN_TIME: 11:23:49:12 DURATION: 00:02:55:13 SOURCES: AP TELEVISION/SKY/POOL/JAMAHIRIYA BROADCASTING DATELINE: Various - 6 Sep 2009/Recent RESTRICTIONS: See Shotlist SHOTLIST: ++NIGHT SHOT++ JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA FILE - Tripoli, Libya - 21 August 2009 1. Zoom in to Abdel Baset al-Megrahi getting out of car, walking over to shake hands with Libyan leader, Colonel Moammar Gadhafi, both men hug one another, al-Megrahi kisses Gadhafi's hand POOL - NO ACCESS GERMANY Berlin, Germany, September 6 2009 2. SOUNDBITE: (English) Gordon Brown, British prime minister: "Now, in the last few years our priority has been to ensure that Libya comes in and supports the fight against terrorism, instead of sponsoring terrorism, and gives up its nuclear weapons. And as Libya has renounced nuclear weapons and terrorism, our relationship has changed. And I said last week it is these concerns, security and terrorism, not oil or commercial interest, that have been the dominant feature of our relationship." ++NIGHT SHOT++ JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA FILE - Tripoli, Libya - 21 August 2009 3. Abdel Baset al-Megrahi walking off plane POOL - NO ACCESS GERMANY Berlin, Germany, September 6 2009 4. SOUNDBITE: (English) Gordon Brown, British prime minister: "Now, I desperately care about what has happened to those people who have been victims of IRA terrorism. When I met with the families and the supporters and lawyers a few months ago, I assured them of our support and our sympathy for their cause. And I made clear in the letter I wrote to the campaign, that despite the efforts of successive governments over many years, the Libyans had always refused to accept a treaty or normal inter-governmental agreements on this issue. As a result, our judgement has been that the course most likely to succeed and bring results is to support the families themselves in their legal representations through their lawyers to the Libyan authorities." AP TELEVISION FILE - L'Aquila, Italy, 9 July 2009 5. Gadhafi at G8 summit SKY Unknown location, September 6 2009 6. SOUNDBITE: (English) Jonathan Ganesh, Irish Republican Army (IRA) bomb survivor: "I believe the reason why the government is not asking Libya for an apology or compensation for the people that need it is because of an oil deal, because of an oil deal with BP (British Petroleum). I really believe that." ++NIGHT SHOT++ JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA FILE: Tripoli, Libya - 21 August 2009 7. Al-Megrahi and family seated with Gadhafi by their side SKY Unknown location, September 6 2009 8. SOUNDBITE: (English) Jason McCue, lawyer for IRA victims: "It is the foreign office that has made this ridiculous decision of putting UK trade interests before those of victims, and that's why we've made this appeal to Gordon Brown." JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA FILE: Tripoli, Libya - 21 August 2009 ++NIGHT SHOT++ 9. Close of Gadhafi talking SKY Unknown location, September 6 2009 10. SOUNDBITE: (English) Jason McCue, lawyer for IRA victims: "Particularly from some British ministers where they explicitly say trade is the one reason why these victims aren't going to get a penny. But in our system Downing Street and particularly the current prime minister can make a political decision and I think it is time for him to make that now." JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA FILE: Tripoli, Libya - 21 August 2009 11. Wide of Gadhafi standing up after talking with the family, al-Megrahi and family applauding Gadhafi STORYLINE: Britain made no demands that Libya offer compensation for Britons killed by Libyan explosives supplied to Irish Republican paramilitaries for fear it could jeopardise ties with Tripoli, according to new documents released on Sunday. British Prime Minister Gordon Brown reiterated the reasons behind this approach during a news conference in Berlin on Sunday. The revelation prompted accusations that the British government had acted to protect energy deals, and added to questions about whether trade ties influenced last month's decision to release Lockerbie bomber Abdel Baset al-Megrahi. Relatives of British victims of the IRA bombings were outraged to learn that Prime Minister Gordon Brown refused to broach the compensation subject with Libya - particularly since US victims of IRA attacks have secured a separate compensation deal with Tripoli. Brown says in two letters released by his office, however, that his government was motivated not by oil interests, but by the need to cooperate in fighting terror. "The UK government does not consider it appropriate to enter into a bilateral discussion with Libya on this matter," Brown says in the letters, dated September 11 and October 7 of last year and sent to British victims' lawyer Jason McCue. They were released after being alluded to in a report in The Sunday Times of London. "You assert that the core reason for not entering into direct negotiations with Libya is that of trade," Brown told McCue in the October 7 letter. "I assure you that this is not the case. While the UK-Libya relationship does indeed include trade, bilateral cooperation is now wide-ranging on many levels, particularly in the fight against terrorism." The letters concern Libya's role in supplying weapons and explosives to extremists around the world, including several tons of Semtex plastic explosive to IRA rebels fighting to split Northern Ireland from the United Kingdom. The IRA used those explosives in the 1980s and 90s. Brown argues in the letters that bringing up the compensation issue would be risky since Libya had turned over a new leaf - renouncing extremism and dismantling its nuclear programme. "Libya has made it very clear to us that they consider this matter closed," Brown says in the October letter. "It would be very strongly opposed to reopening the issue, and ... doing so would entail substantial risks." Brown reiterated his message in Berlin on Sunday saying "our priority has been to ensure that Libya comes in and supports the fight against terrorism, instead of sponsoring terrorism, and gives up its nuclear weapons." "It is these concerns, security and terrorism, not oil or commercial interest, that have been the dominant feature of our relationship," he added. Despite Brown's explanation, IRA victims saw his refusal to bring up the compensation issue as a decision motivated by commercial interests. "It's because of an oil deal with BP. I really believe that," IRA bomb survivor Jonathan Ganesh told Sky News television. He was referring to the 900 (m) million dollar exploration agreement the British energy company signed with Libya Investment Corp. in May 2007 That same month, Britain and Libya signed a memorandum of understanding that paved the way for al-Megrahi's release from a Scottish prison. The decision last month to free al-Megrahi on compassionate grounds - he is suffering from terminal pancreatic cancer - also fuelled questions about whether Britain was protecting trade. One of the lawyers representing some of the British victims of IRA guerilla attacks, Jason McCue, said some British ministers "explicitly say trade is the one reason why these victims aren't going to get a penny." On Friday, BP PLC said it had warned British officials to quickly seal a prisoner transfer agreement with Libya. Such a deal would have allowed al-Megrahi to serve out his sentence in Libya, though BP said it did not refer specifically to al-Megrahi's case.

AP-APTN-1830: US Lockerbie Wednesday, 14 July 2010 STORY:US Lockerbie- REPLAY Sens ask State Dept to investigate if BP played role in bomber's release LENGTH: 02:46 FIRST RUN: 1730 RESTRICTIONS: See Script TYPE: English/Nat SOURCE: VARIOUS STORY NUMBER: 651367 DATELINE: Washington - 14 July 2010/FILE LENGTH: 02:46 ABC - NO ACCESS NAMERICA/INTERNET AP TELEVISION - AP CLIENTS ONLY JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA SHOTLIST ABC - NO ACCESS NAMERICA/INTERNET Washington, DC - 14 July 2010 1. Senators walk into briefing room 2. SOUNDBITE (English) Senator Robert Menendez, Democrat - New Jersey: "If BP is found to have gained access to Libyan oil reserves by using a mass murderer as a bargaining chip, then make no mistake - any money it makes off of that oil is blood money, pure and simple. Americans have seen the evidence in the Deepwater Horizon disaster and it seems to show that BP is capable of putting profits ahead of people. They ignored safety precautions and low-balled the estimates of oil spilling in the Gulf. If that's how they operate, then it is within the realm of possibility that they put profits ahead of justice in murder of 270 innocent people." AP TELEVISION - AP CLIENTS ONLY FILE: Tripoli - 20 August 2009 ++NIGHT SHOTS++ 3. Various of released Lockerbie bomber Abdel Baset al-Megrahi at plane doorway with supporters, waving to crowds ABC - NO ACCESS NAMERICA/INTERNET Washington, DC - 14 July 2010 4. SOUNDBITE (English) Senator Charles Schumer, Democrat - New York: "It is true that the evidence is circumstantial, but very strongly circumstantial and if I were a prosecutor I'd love to take this case to the jury. The bottom line is simple, if it walks like a duck and quacks like a duck then it just might be a corrupt deal between BP, the British Government and Libya. Yet as recently as earlier today, BP confirmed it plans to begin drilling off the coast of Libya in the next few weeks. Well we have a clear message for BP. Until this deal is properly investigated, this project off the coast of Libya should not break ground. If BP is truly dealing in good faith and has nothing to hide it should cooperate with such an investigation. So should the British government, so should the Scottish government. The company should not be allowed to profit on this deal if it was facilitated at the expense of the victims of terrorism." JAMAHIRIYA BROADCASTING - NO ACCESS LIBYA FILE: Tripoli - 21 August 2009 ++NIGHT SHOTS++ 5. Zoom in to Abdel Baset al-Megrahi getting out of vehicle, walking over to shake hands with Libyan leader, Colonel Moammar Gadhafi, both men hug one another 6. Pull out from Gadhafi talking with al-Megrahi 7. Wide shot, Al-Megrahi and family seated, talking with Gadhafi STORYLINE Four senators from New Jersey and New York have asked the US State Department to investigate whether oil giant BP played a role in winning last year's release of the man convicted of the Lockerbie airliner bombing. The request to US Secretary of State Hillary Rodham Clinton came a day after the same senators asked her to press the British government to look into the release of the convicted bomber, Abdel Baset al-Megrahi. Senator Charles Schumer, of New York, said it was true the evidence was circumstantial - "but very strongly circumstantial." "The bottom line is simple, if it walks like a duck and quacks like a duck then it just might be a corrupt deal between BP, the British Government and Libya," Schumer said, adding that until the deal was investigated, the project off the coast of Libya "should not break ground." "If BP is truly dealing in good faith and has nothing to hide it should cooperate with such an investigation," Schumer said. "So should the British government, so should the Scottish government. The company should not be allowed to profit on this deal if it was facilitated at the expense of victims of terrorism." In the second letter, on Tuesday, the four Democrats said they were concerned that BP may have put profits ahead of justice in the al-Megrahi case, given - they claimed - the petroleum giant's current handling of the Gulf of Mexico oil spill. "If BP is found to have gained access to Libyan oil reserves by using a mass murderer as a bargaining chip, then make no mistake any money it makes off of that oil is blood money, pure and simple," Senator Robert Menendez said. BP signed an exploration agreement with Libya in May 2007, the same month Britain and Libya signed a memorandum of understanding that led to al-Megrahi's release. 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Scotland: General views of Aberdeen / Workers on oil plant; Dunfermline cashpoint machine / Dunfermline Building Society sign with traffic along past in the foreground / More of entrance to Dunfermline Building Society / More of property 'To Let' signs / Scottish flag flying / Scottish flag flying next 'To Let' sign / General views of Aberdeen skyline / General view of harbour with BP oil installation / Tug boats moored / Cranes (for lifting cargo) mooredin harbour (port)

BP Portrait Award 2009: interview; ENGLAND: London: National Portrait Gallery: INT Anna Monkman (subject of winning portrait by her father, Peter Monkman) interview - standing next to portrait SOT Peter Monkman (BP Portrait Award 2009 winner) interview SOT

NAME: IRQ OIL 20091103I TAPE: EF09/1031 IN_TIME: 11:26:20:05 DURATION: 00:02:07:07 SOURCES: AP TELEVISION DATELINE: Baghdad - 3 Nov 2009 RESTRICTIONS: SHOTLIST: 1. Various of officials signing Iraqi oil deal with British-Chinese consortium 2. CNPC chief executive Jiang Jiemin signing deal, pan to BP's Tony Hayward signing 3. Officials standing up after completing signing of deal and shaking hands and clapping 4. SOUNDBITE (Arabic) Hussein al-Shahristani, Iraqi oil minister: "Today, we have signed a contract to develop a big oilfield, which is the biggest oilfield in the world, namely the northern and southern Rumaila oil field, to increase the oil output from its current levels, which amounted to about one (m) million bpd (barrels per day) to (m) two million and 850-thousands bpd in the next six months with an investment amounting to 50 (b) billion (US) dollars invested by the British-Chinese consortium, BP and CNPC.'' 5. Cutaway Iraqi officials and reporters 6. SOUNDBITE (English) Tony Hayward, BP chief executive: "We are looking forward to working with our partners, CNPC and the southern oil company, to take production in Rumaila from around one (m) million barrels a day to 2.8 (m) million barrels a day. And over the lifetime of the contract, we expect to invest around 15 (b) billion dollars. It's a very significant undertaking for BP.'' 7. Officials clapping STORYLINE: Iraq on Tuesday finalised a deal with a British-Chinese consortium to develop its biggest oil field, marking a milestone moment in the OPEC nation's push to lure foreign investors sorely needed to revamp its battered oil sector. The 20-year contract signed by Iraqi Oil Minister Hussain al-Shahristani and executives from British oil giant BP and China's CNPC gives the two companies development rights to the 17.8 (b) billion barrel Rumaila field, home to the world's third largest proven oil reserves. The deal marks a key step forward for Iraq, which has been struggling to rebuild an oil sector where the effect of years of sanctions and neglect have only been amplified by sabotage and violence following the 2003 US-led invasion to topple Saddam Hussein. Since the 2003 invasion, Iraq has been struggling to boost output, which currently stands at about 2.4 (m) million barrels per day, and developing fields like Rumaila is crucial to raising overall output for Iraq. Rumaila - located in the oil rich south - was the only one awarded in the June licensing round, where a total of eight oil and two gas fields were on offer. The poor showing in the auction - the first such event to be held in Iraq in over 30 years - was a blow to officials in the country where oil accounts for about 95 percent of Iraq's revenues. BP and CNPC are targeting output of 2.85 (m) million barrels per day from the field - roughly triple the current one (m) million barrel per day output. For their efforts, they will be paid two US dollars per barrel of crude they produce during the 20 year contract, which can be extended by another five years. Tuesday's deal is also symbolic for BP, marking its first foray back to the country since Iraq nationalised its oil sector in the 1970s, booting out the British oil giant and other Western companies. BP's chief executive, Tony Hayward, on Tuesday hailed the contract as the start of a new era for both the company and Iraq and described it as a "very significant undertaking for BP". The deal is also the second which CNPC has reached in Iraq since the invasion - an agreement reflecting energy hungry China's push to fuel its growing economy. CNPC last year struck a three (b) billion dollar deal to develop the al-Ahdab oil field in southern Iraq. Under the terms of the Rumaila deal, BP will hold 38 percent stake in the venture to CNPC's 37 percent. The rest is held by Iraq's state company, Southern Oil. With Rumaila the only success story of the June auction, Iraqi oil officials revisited some of the bids submitted by other companies. The change of heart led to four consortiums accepting the country's terms. On Monday, a consortium led by Italy's Eni signed an initial agreement to develop the prized 4.1 (b) billion barrel Zubair oil field, which lies near Rumaila. The consortium, which includes the US's Occidental Petroleum Corporation and South Korea's KOGAS, aims to boost output to 1.1 (m) million barrels per day within seven years, up from the current 200-thousand barrels per day. Three other consortiums are competing to develop the 8.6 (b) billion barrel West Qurna Stage 1 in the south. One is led by Russia's Lukoil and US giant ConocoPhilips, another by Exxon Mobil and Royal Dutch Shell while the third is led by CNPC. The winner will be announced in the next few days, Iraq's oil minister has said. He predicts the combined project output from Rumaila, West Qurna Stage I and Zubair will exceed six (m) million barrels a day in six to seven years, with the companies expected to invest a total of about 100 (b) billion dollar in the projects. Iraq is also planning a second bidding round on December 11-12. Forty-five international oil companies will compete for development right for 10 oil projects.

NAME: IRQ AUCT2 20091212I TAPE: EF09/1159 IN_TIME: 11:17:23:16 DURATION: 00:01:47:00 SOURCES: AP TELEVISION DATELINE: Baghdad, 12 Dec 2009 RESTRICTIONS: SHOTLIST: 1. Wide of auction with Iraqi Oil Minister Hussain al-Shahristani and committee sitting 2. Mid of al-Shahristani (first from right on screen in front row) and committee sitting 3. Various of representative of oil firm handing in bid to committee 4. Mid of oil firm representative placing bid in auction box, audience applauding 5. Top shot, pan left of other bidder handing in bid to committee 6. Bidder placing bid inside auction box 7. Wide of screen showing Gharraf field bidding results - Malaysia's Petronas and Japan's Japex consortium scoring 100, outbidding three other consortia 8. SOUNDBITE: (Arabic) Hussain al-Shahristani, Iraqi Oil Minister: ++AUDIO AS INCOMING++ "The first bid is considered as acceptable from Petronas company with 60% and Japex." (applause) 9. Various of oil firm representatives at the auction 10. SOUNDBITE: (Arabic) Hussain al-Shahristani, Iraqi Oil Minister: "If we put together the total production of the ten fields from the first and second licensing rounds, oil production capacity will be more than 11 million barrels a day." 11. Wide of exterior of Iraqi Oil Ministry building STORYLINE: Iraq's oil minister on Saturday dubbed the country's second post-war oil auction a triumph, despite caution from international oil companies. The two-day licensing round, which ended Saturday, saw deals on only seven of the 15 fields on offer. Malaysia's and Japan's oil companies on Saturday reached a deal on an oil field in the south of Iraq on the second day of the country's second oil auction this year. The roughly 863 (m) million-barrel Gharraf field in the Iraqi south went to Petronas and Japex, which outbid three other consortia led by Kazakhstan's Kaz Munai, Turkey's TPAO, and Indonesia's Pertamina. The current auction, which started on Friday, has placed some of the country's most coveted sites up for grabs compared with the riskier fields that drew little interest in the first auction in June. In all, 15 fields were being offered over two days, and of the seven offered Saturday, four were awarded. The Petronas-Japex alliance will get 1.49 US dollars per barrel of oil they produce and are targeting boosting output to 230,000 barrels per day over 13 years. Iraqi Oil Minister Hussain al-Shahristani announced the deal on Saturday during a news conference. Al-Shahristani, who has staked both his and Prime Minister Nouri al-Maliki's political future on promises of boosting oil output, said that the deals signed will help raise production to more than 11 million barrels per day within six years. Iraq has not been able to raise output to even close to pre-2003 levels, and is limping along at roughly 2.5 million (m) barrels per day. Also on Saturday Russian private oil giant Lukoil teamed up with Norway's Statoil ASA to snatch the crown jewel of the auction, the 12.88 billion (b) barrel West Qurna Phase 2 field in southern Iraq - beating out three other consortia led by France's Total SA, Petronas and British giant BP PLC. The field was a coup for Lukoil, representing the fulfilment of a contract they had won in 1997 under Saddam, only to see the dictator rescind the deal five years later. In the opening round of the two-day auction on Friday, an alliance grouping European giant Shell and Petronas was awarded the 12.5 billion (b)barrel Majnoon field, also in the south. But the bidding quickly tapered off as representatives from the 44 international companies participating in the auction steered clear of fields in the restive eastern region, as well as near Baghdad and in the north - opting instead for offerings that were both safe and cheap to develop. Overall, the second and final day of the event drew more interest than the first in which only two fields went on the spot. Iraq was forced to withdraw five fields Friday and announce it would develop them by itself. Even so, officials hailed that day as a success, as much perhaps for the actual outcome as the need to make up for the dismal showing in the June international auction - the country's first in over three decades. At that event, only one deal field was struck on the spot, with Britain's BP and China National Petroleum Corporation nabbing the 17.8 (b) billion barrel Rumaila field in the south. Deals on two other southern fields were brokered later. Analysts said that event failed as much because of Iraq's restrictive terms as for security concerns. In this bidding round, Iraq appeared to be more flexible, giving the companies more operational control over the fields while still focusing heavily on the price it was willing to pay them for each barrel produced. Companies must accept 20-year service contracts and receive a flat fee per barrel produced for their services instead of production-sharing contracts, which are much more lucrative. Iraq, which holds the world's third-largest proven reserves of crude, is desperate for foreign oil investment to boost production and bring in new technology to revamp an oil sector battered by decades of war and sanctions. The auction came days after bombings on Tuesday around Baghdad killed at least 127 people in a sobering reminder of the challenges the Baghdad government faces with the looming withdrawal of US forces from the country.

BP Portrait Award 2009: interview; General views of portrait paintings on gallery wall and visitors looking at paintings

AP-APTN-0930: UK BP 2 Tuesday, 27 July 2010 STORY:UK BP 2- WRAP BP confirms losses; Dudley to replace Hayward; protest, chairman, reax LENGTH: 05:55 FIRST RUN: 0830 RESTRICTIONS: Part No Access UK/RTE/CNNi/Al Jazeera English TYPE: English/Nat SOURCE: AP TELEVISION/SKY STORY NUMBER: 652489 DATELINE: Varous - 27 July 2010/file LENGTH: 05:55 AP TELEVISION - AP CLIENTS ONLY SKY - NO ACCESS UK/RTE/CNNI/AL JAZEERA ENGLISH SHOTLIST (FIRST RUN 0630 ASIA PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: Baghdad, Iraq - 3 November 2009 1. Various shots of outgoing BP chief executive Tony Hayward, signing document and later speaking (FIRST RUN 0630 ASIA PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: New Orleans, Louisiana, US - 23 June 2010 2. Various shots of incoming BP chief executive, Bob Dudley (FIRST RUN 1830 NORTH AMERICA PRIME NEWS - 26 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: Washington, DC, US - 16 June 2010 3. Pan as BP Chairman Carl-Henric Svanberg walks out of White House, followed by Hayward, Dudley and BP America President Lamar McKay 4. Mid of Hayward, Dudley and McKay listening to Svanberg speaking to the media outside the White House (FIRST RUN 1830 NORTH AMERICA PRIME NEWS - 26 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: Washington, DC, US - 17 June 2010 5. Pan of Hayward arriving for hearing with US lawmakers (FIRST RUN 2030 LATAM PRIME NEWS - 26 JULY 2010) POOL - AP CLIENTS ONLY London, UK - 26 July 2010 6. Car bearing Hayward leaving building, surrounded by media (FIRST RUN 1830 NORTH AMERICA PRIME NEWS - 26 JULY 2010) AP PHOTOS - NO ACCESS CANADA/FOR BROADCAST USE ONLY - STRICTLY NO ACCESS ONLINE OR MOBILE Washington, DC, US - 16 June 2010 7. STILL of Dudley with Hayward at the White House after a meeting with US President Barack Obama ++OVERLAYS AUDIO WITH SEPARATE RESTRICTIONS AS BELOW++ (FIRST RUN 0830 EUROPE PRIME NEWS - 27 JULY 2010) SKY - NO ACCESS UK/RTE/CNNI/AL JAZEERA ENGLISH London, UK - 27 July 2010 8. SOUNDBITE (English) Carl-Henric Svanberg, BP Chairman (++SOUNDBITE STARTS ON SHOT 7, PLEASE SEE RESTRICTIONS++): "The fact that Tony is stepping down is a mutual agreement between the board and Tony. Tony has done a great job over his thirty years and also as a CEO, and has driven the company's performance and developed it in so many critical ways, and he's also led an unprecedented response in the Gulf of Mexico. But it became clear, both for the board and for Tony, that in going forward, in rebuilding the company strength, and in rebuilding its reputation, we needed fresh leadership, and that's what we are announcing today." (Reporter: Why do you need fresh leadership if he has done such a good job?) "I think, in view of the Macondo well and everything that has happened and I think it became clear that you needed, in this case, a new face and a new man to lead this. And of course, especially America, is our biggest market that is also important, so I think it became difficult for him to take on that task." (Reporter: I mean, clearly the board was reluctant to ditch Tony Hayward. It seems that you have crumbled to American political pressure. At what point did you crumble?) "That is not true at all, because we have been absolutely focused on stopping the flow of oil in the Gulf of Mexico. That was the absolutely the first and most important thing. Now that we are not spreading any more oil there since almost two weeks, was the first and right moment to start and think forward about how we rebuild the company and addressed it. The leadership of the company was never discussed when I was in the White House and through any of those negotiations." (FIRST RUN 0830 EUROPE PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY London, UK - 27 July 2010 9. Pan across buildings in Canary Wharf financial district 10. Top of tower 11. Various of brokers at work at BGC Partners 12. SOUNDBITE: (English) Howard Wheeldon, Senior Strategist at BGC Partners: "Well, it's the worst set of quarterly results from any British company at any time in the history of markets, I think. So that says it all. A 32-billion-dollar provision in one quarter for the Gulf of Mexico incident. On top of that, the general performance of BP has been pretty weak." 13. Broker on telephone 14. Close-up of broker 15. SOUNDBITE: (English) Howard Wheeldon, Senior Strategist at BGC Partners: "I think there's a general air of satisfaction that the (BP) management changes are now confirmed and that there is a parting of ways on reasonably good terms. Tony Hayward will, of course, stay on the BP Russian operation - that's TNK. That, I think, is a sensible move. It keeps the link, even though he won't be on the main board. So, all in all, I think it's general satisfaction all round." 16. Various shots of office 17. SOUNDBITE: (English) Howard Wheeldon, Senior Strategist at BGC Partners: "I think it's very significant. It's politically correct in this situation. BP is signalling that it isn't going to walk away from America. It wants to be a part of America. And with a CEO who is an American, I think the relationship between BP and the US can actually begin to reverse the decline we've seen over the past few months and indeed grow into something very, very strong." 18. Wide of brokers (FIRST RUN 0630 ASIA PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY London, UK - 27 July 2010 19. Greenpeace activist carrying metal fence out of van at BP petrol station 20. Banner reading (English): "Closed. Moving beyond petroleum". 21. Various of activists locking fence together 22. Greenpeace activist placing banner over BP logo 23. Close of activist 24. SOUNDBITE: (English) John Sauven, Executive Director Greenpeace UK: "Well, today we have shut all BP's garages in London. We want BP to pause. They are going to change the boss, we want them to change the strategy. We want them to move beyond petroleum, to get out of the risky developments in the deep water Gulf, in the tar sands of Canada, in the Arctic, develop cleaner fuels, renewable energy. They need to change their investment strategy." 25. Various of activists by BP petrol station STORYLINE BP's embattled Chief Executive Officer Tony Hayward will be replaced by American Robert Dudley on October 1, the company said on Tuesday, as it reported a record quarterly loss and set aside 32.2 (b) billion US dollars to cover the costs of the devastating Gulf of Mexico oil spill. BP said the decision to replace 53-year-old Hayward with the company's first ever non-British CEO was made by mutual agreement. In a mark of faith in its outgoing leader, BP said it planned to recommend him for a non-executive board position at its Russian joint venture and will pay him 1.045 million pounds (1.6 million US dollars), a year's salary, in lieu of notice. "The fact that Tony is stepping down is a mutual agreement between the board and Tony," BP Chairman Carl-Henric Svanberg said in an interview with broadcaster Sky News. Svanberg said the April 20 explosion of the Macondo well on the Deepwater Horizon platform run by BP in the Gulf of Mexico has been a "watershed incident" for the company. "In going forward, in rebuilding the company strength, and in rebuilding its reputation, we needed fresh leadership," he said. Besides permanently plugging the oil leak and cleaning up the spill and the company's image, Dudley will oversee the sale of 30 (b) billion US dollars in assets over the next 18 months to bolster the company's finances. Hayward, who has a Ph.D in geology, had been a well-regarded chief executive. "Tony has done a great job over his thirty years and also as a CEO, and has driven the company's performance and developed it in so many critical ways, and he's also led an unprecedented response in the Gulf of Mexico," Svanberg said in the interview with Sky. But Hayward's promise when he took the job in 2007 to focus "like a laser" on safety came back to haunt him after the explosion on the Deepwater Horizon rig killed 11 workers and unleashed a deep-sea gusher of oil. He became the lightning rod for anti-BP feeling in the United States and didn't help matters with a series of gaffes, raising hackles by saying "I want my life back," going sailing, and what was viewed as an evasive performance before US congressmen in June. In a statement on Tuesday, Hayward said it was right that BP embark on its next phase under new leadership. On top of the 1.6 (m) million US dollar payout, Hayward retains his rights to shares under a long-term performance programme which could eventually be worth several million pounds if BP's share price recovers. BP shares were on Tuesday up modestly even though the costs of the environmental disaster meant the company recorded a loss of 17 (b) billion US dollars for the second quarter, compared with a profit of 4.39 (b) billion US dollars a year earlier. It is the first time in 18 years that the company has been in the red. "It's the worst set of quarterly results from any British company at any time in the history of markets, I think. So that says it all," said senior strategist at BGC Partners, Howard Wheeldon. However, Wheeldon said that Tuesday's announcement had created "a general air of satisfaction". BP said the 32.2 (b) billion US dollar charge includes the 20 (b) billion US dollars compensation fund the company set up following pressure from US President Barack Obama as well as costs to date of 2.9 (b) billion US dollars. Currently BP's managing director, Dudley grew up partly in Hattiesburg, Mississippi, and has so far avoided any public missteps. He spent 20 years at Amoco Corp., which merged with BP in 1998, and lost out to Hayward on the CEO slot three years ago. Dudley will be based in London when he takes up his appointment and will hand over his present duties in the United States to Lamar McKay, the chairman and president of BP America. Wheeldon said the fact that Dudley was American is significant. "BP is signalling that it isn't going to walk away from America. It wants to be a part of America. And with a CEO who is an American, I think the relationship between BP and the US can actually begin to reverse the decline we've seen over the past few months." In London, Greenpeace activists closed more than 50 service stations in a protest timed to coincide with the company's earnings update. The environmental action group said it was calling on the company to focus on greener and renewable sources of energy. BP said it planned to tell analysts in an update later Tuesday that it will sell assets for up to 30 (b) billion US dollars over the next 18 months, "primarily in the upstream business, and selected on the basis that they are worth more to other companies than to BP." That would leave the company with a smaller, but higher quality Exploration & Production business, it said. 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 07-27-10 0700EDT

BP Portrait Award 2009: interview; Peter Monkman interview continued SOT/ various shots of Peter Monkman winning portrait of his daughter Anna Monkman hanging on gallery wall/ runners up portraits on gallery wall/ Anna and Peter Monkman stand with others at gallery event

AP-APTN-0830: +UK BP 2 Tuesday, 27 July 2010 STORY:+UK BP 2- WRAP BP confirms losses; Dudley to replace Hayward; protest ADDS chairman, reax LENGTH: 05:55 FIRST RUN: 0830 RESTRICTIONS: Part No Access UK/RTE/CNNi/Al Jazeera English TYPE: English/Nat SOURCE: AP TELEVISION/SKY STORY NUMBER: 652489 DATELINE: Varous - 27 July 2010/file LENGTH: 05:55 AP TELEVISION - AP CLIENTS ONLY SKY - NO ACCESS UK/RTE/CNNI/AL JAZEERA ENGLISH SHOTLIST (FIRST RUN 0630 ASIA PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: Baghdad, Iraq - 3 November 2009 1. Various shots of outgoing BP chief executive Tony Hayward, signing document and later speaking (FIRST RUN 0630 ASIA PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: New Orleans, Louisiana, US - 23 June 2010 2. Various shots of incoming BP chief executive, Bob Dudley (FIRST RUN 1830 NORTH AMERICA PRIME NEWS - 26 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: Washington, DC, US - 16 June 2010 3. Pan as BP Chairman Carl-Henric Svanberg walks out of White House, followed by Hayward, Dudley and BP America President Lamar McKay 4. Mid of Hayward, Dudley and McKay listening to Svanberg speaking to the media outside the White House (FIRST RUN 1830 NORTH AMERICA PRIME NEWS - 26 JULY 2010) AP TELEVISION - AP CLIENTS ONLY FILE: Washington, DC, US - 17 June 2010 5. Pan of Hayward arriving for hearing with US lawmakers (FIRST RUN 2030 LATAM PRIME NEWS - 26 JULY 2010) POOL - AP CLIENTS ONLY London, UK - 26 July 2010 6. Car bearing Hayward leaving building, surrounded by media (FIRST RUN 1830 NORTH AMERICA PRIME NEWS - 26 JULY 2010) AP PHOTOS - NO ACCESS CANADA/FOR BROADCAST USE ONLY - STRICTLY NO ACCESS ONLINE OR MOBILE Washington, DC, US - 16 June 2010 7. STILL of Dudley with Hayward at the White House after a meeting with US President Barack Obama ++OVERLAYS AUDIO WITH SEPARATE RESTRICTIONS AS BELOW++ ++NEW (FIRST RUN 0830 EUROPE PRIME NEWS - 27 JULY 2010) SKY - NO ACCESS UK/RTE/CNNI/AL JAZEERA ENGLISH London, UK - 27 July 2010 8. SOUNDBITE (English) Carl-Henric Svanberg, BP Chairman (++SOUNDBITE STARTS ON SHOT 7, PLEASE SEE RESTRICTIONS++): "The fact that Tony is stepping down is a mutual agreement between the board and Tony. Tony has done a great job over his thirty years and also as a CEO, and has driven the company's performance and developed it in so many critical ways, and he's also led an unprecedented response in the Gulf of Mexico. But it became clear, both for the board and for Tony, that in going forward, in rebuilding the company strength, and in rebuilding its reputation, we needed fresh leadership, and that's what we are announcing today." (Reporter: Why do you need fresh leadership if he has done such a good job?) "I think, in view of the Macondo well and everything that has happened and I think it became clear that you needed, in this case, a new face and a new man to lead this. And of course, especially America, is our biggest market that is also important, so I think it became difficult for him to take on that task." (Reporter: I mean, clearly the board was reluctant to ditch Tony Hayward. It seems that you have crumbled to American political pressure. At what point did you crumble?) "That is not true at all, because we have been absolutely focused on stopping the flow of oil in the Gulf of Mexico. That was the absolutely the first and most important thing. Now that we are not spreading any more oil there since almost two weeks, was the first and right moment to start and think forward about how we rebuild the company and addressed it. The leadership of the company was never discussed when I was in the White House and through any of those negotiations." ++NEW (FIRST RUN 0830 EUROPE PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY London, UK - 27 July 2010 9. Pan across buildings in Canary Wharf financial district 10. Top of tower 11. Various of brokers at work at BGC Partners 12. SOUNDBITE: (English) Howard Wheeldon, Senior Strategist at BGC Partners: "Well, it's the worst set of quarterly results from any British company at any time in the history of markets, I think. So that says it all. A 32-billion-dollar provision in one quarter for the Gulf of Mexico incident. On top of that, the general performance of BP has been pretty weak." 13. Broker on telephone 14. Close-up of broker 15. SOUNDBITE: (English) Howard Wheeldon, Senior Strategist at BGC Partners: "I think there's a general air of satisfaction that the (BP) management changes are now confirmed and that there is a parting of ways on reasonably good terms. Tony Hayward will, of course, stay on the BP Russian operation - that's TNK. That, I think, is a sensible move. It keeps the link, even though he won't be on the main board. So, all in all, I think it's general satisfaction all round." 16. Various shots of office 17. SOUNDBITE: (English) Howard Wheeldon, Senior Strategist at BGC Partners: "I think it's very significant. It's politically correct in this situation. BP is signalling that it isn't going to walk away from America. It wants to be a part of America. And with a CEO who is an American, I think the relationship between BP and the US can actually begin to reverse the decline we've seen over the past few months and indeed grow into something very, very strong." 18. Wide of brokers (FIRST RUN 0630 ASIA PRIME NEWS - 27 JULY 2010) AP TELEVISION - AP CLIENTS ONLY London, UK - 27 July 2010 19. Greenpeace activist carrying metal fence out of van at BP petrol station 20. Banner reading (English): "Closed. Moving beyond petroleum". 21. Various of activists locking fence together 22. Greenpeace activist placing banner over BP logo 23. Close of activist 24. SOUNDBITE: (English) John Sauven, Executive Director Greenpeace UK: "Well, today we have shut all BP's garages in London. We want BP to pause. They are going to change the boss, we want them to change the strategy. We want them to move beyond petroleum, to get out of the risky developments in the deep water Gulf, in the tar sands of Canada, in the Arctic, develop cleaner fuels, renewable energy. They need to change their investment strategy." 25. Various of activists by BP petrol station STORYLINE BP's embattled Chief Executive Officer Tony Hayward will be replaced by American Robert Dudley on October 1, the company said on Tuesday, as it reported a record quarterly loss and set aside 32.2 (b) billion US dollars to cover the costs of the devastating Gulf of Mexico oil spill. BP said the decision to replace 53-year-old Hayward with the company's first ever non-British CEO was made by mutual agreement. In a mark of faith in its outgoing leader, BP said it planned to recommend him for a non-executive board position at its Russian joint venture and will pay him 1.045 million pounds (1.6 million US dollars), a year's salary, in lieu of notice. "The fact that Tony is stepping down is a mutual agreement between the board and Tony," BP Chairman Carl-Henric Svanberg said in an interview with broadcaster Sky News. Svanberg said the April 20 explosion of the Macondo well on the Deepwater Horizon platform run by BP in the Gulf of Mexico has been a "watershed incident" for the company. "In going forward, in rebuilding the company strength, and in rebuilding its reputation, we needed fresh leadership," he said. Besides permanently plugging the oil leak and cleaning up the spill and the company's image, Dudley will oversee the sale of 30 (b) billion US dollars in assets over the next 18 months to bolster the company's finances. Hayward, who has a Ph.D in geology, had been a well-regarded chief executive. "Tony has done a great job over his thirty years and also as a CEO, and has driven the company's performance and developed it in so many critical ways, and he's also led an unprecedented response in the Gulf of Mexico," Svanberg said in the interview with Sky. But Hayward's promise when he took the job in 2007 to focus "like a laser" on safety came back to haunt him after the explosion on the Deepwater Horizon rig killed 11 workers and unleashed a deep-sea gusher of oil. He became the lightning rod for anti-BP feeling in the United States and didn't help matters with a series of gaffes, raising hackles by saying "I want my life back," going sailing, and what was viewed as an evasive performance before US congressmen in June. In a statement on Tuesday, Hayward said it was right that BP embark on its next phase under new leadership. On top of the 1.6 (m) million US dollar payout, Hayward retains his rights to shares under a long-term performance programme which could eventually be worth several million pounds if BP's share price recovers. BP shares were on Tuesday up modestly even though the costs of the environmental disaster meant the company recorded a loss of 17 (b) billion US dollars for the second quarter, compared with a profit of 4.39 (b) billion US dollars a year earlier. It is the first time in 18 years that the company has been in the red. "It's the worst set of quarterly results from any British company at any time in the history of markets, I think. So that says it all," said senior strategist at BGC Partners, Howard Wheeldon. However, Wheeldon said that Tuesday's announcement had created "a general air of satisfaction". BP said the 32.2 (b) billion US dollar charge includes the 20 (b) billion US dollars compensation fund the company set up following pressure from US President Barack Obama as well as costs to date of 2.9 (b) billion US dollars. Currently BP's managing director, Dudley grew up partly in Hattiesburg, Mississippi, and has so far avoided any public missteps. He spent 20 years at Amoco Corp., which merged with BP in 1998, and lost out to Hayward on the CEO slot three years ago. Dudley will be based in London when he takes up his appointment and will hand over his present duties in the United States to Lamar McKay, the chairman and president of BP America. Wheeldon said the fact that Dudley was American is significant. "BP is signalling that it isn't going to walk away from America. It wants to be a part of America. And with a CEO who is an American, I think the relationship between BP and the US can actually begin to reverse the decline we've seen over the past few months." In London, Greenpeace activists closed more than 50 service stations in a protest timed to coincide with the company's earnings update. The environmental action group said it was calling on the company to focus on greener and renewable sources of energy. BP said it planned to tell analysts in an update later Tuesday that it will sell assets for up to 30 (b) billion US dollars over the next 18 months, "primarily in the upstream business, and selected on the basis that they are worth more to other companies than to BP." That would leave the company with a smaller, but higher quality Exploration & Production business, it said. 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 07-27-10 0619EDT

North Sea Helicopter crash: Initial report published; DATE UNKNOWN NORTH SEA: BP Miller oil rig (oil platform)

the regular state department briefing MR. CROWLEY: Good afternoon and welcome to the Department of State. A few things to talk about before taking your questions. Secretary Clinton has departed Kabul and is en route to Korea, where later today, Korean time, she will join Secretary Gates and visit the Demilitarized Zone, participate in a commemoration of the 60th anniversary of the Korean War, have the so-called 2+2 meeting with their South Korean counterparts, and then looks forward to a working dinner with President Lee. But obviously, have a range of issues to talk about on the security front, on the regional development front, and the close relationship between the United States and Korea. In the Kabul conference, the international community and the Afghan Government agreed on a joint plan for a phased transition of security in Afghanistan's provinces to the Afghan national security forces. The Afghan Government presented a detailed plan, called "The Afghanistan Peace and Reintegration Program." They pledged to take further steps to improve governance, implementing legislation defining the major crimes task force and the anti-corruption tribunal, addressing bulk cash smuggling, and improving audits of ministries and sub-national government offices. We welcome the commitment at the conference to implement the national action plan for the women of Afghanistan and the elimination of violence against women law and its reaffirmation of the rights of Afghan women under the country's constitution. You saw, I think, some front page coverage today regarding a breakthrough - potential breakthrough in terms of HIV/AIDS treatment. USAID was a strong partner with other governments, scientists, and communities in this first-ever proof of concept that a microbicide can effectively and safely reduce the transmission of HIV from men to women. This helps fulfill a specific and critical need for a new prevention option for women and complement other existing or new prevention approaches. The study addresses - or embraces many of the core principles of the Administration's Global Health Initiative, which include advancing the health of women and girls, supporting country ownership, strategically coordinating with multiple partners in the field, promoting sustainability in health systems, and strengthening upholding the importance of monitoring and evaluation. Very quickly, just to update you on a couple of key leaders, Deputy Secretary Jim Steinberg has arrived in Tokyo, and tomorrow he'll meet with senior Japanese officials and also lead the U.S. delegation in the Trilateral Strategic Dialogue with his Australian and Japanese counterparts. Under Secretary Bill Burns met today with President Aquino in the Philippines to discuss bilateral and regional issues. And our interagency team focused on U.S.-Russian adoptions has arrived in Moscow for the fourth round of talks, continuing negotiations that we had for a number of months to try to reach an effective agreement as quickly as possible to guide future adoptions from Russian children to American families. And one other thing. The Special Coordinator for Reconstruction and Stabilization Ambassador John Herbst and Australian Ambassador to the United States Kim Beazley have signed a memorandum of understanding which will enhance interoperability and cooperation between our respective civilian corps that are available to help with civilian efforts in failed and failing states around the world. QUESTION: Can we start with something that I think is going to get taken up at the White House in about 33 minutes? And that is the question of the U.S. Government's position with regard to Mr. Megrahi. The letter that you released yesterday, Secretary Clinton's response to the four senators, says - notes that any decision to review or reconsider Megrahi's release is a matter for the Scottish authorities and that the United States continues to believe that he should not be a free man. And then it says, "To that end, we are encouraging the Scottish and British authorities to review again the underlying facts and circumstances leading to the release of al-Megrahi and to consider any new information that has come to light since his release." Is it fair to say that the U.S. Government would like Megrahi to be sent back to a British prison? MR. CROWLEY: Well, the United States Government would have liked that Mr. Megrahi never left -- QUESTION: Right. MR. CROWLEY: -- a Scottish prison. It is unclear whether the Scottish authorities have any recourse with regard to this matter. Secretary Clinton did have the opportunity to discuss this issue today in Kabul with Foreign Secretary Hague. As I think Prime Minister Cameron indicated yesterday on his way to Washington, fully expect that this is an issue that President Obama and Prime Minister Cameron will talk about today at the White House. I believe that Prime Minister Cameron will meet later on today with the four senators who have been in contact with the State Department, have, obviously, significant concerns which we share about understanding fully the circumstances surrounding the Scottish authorities' decision. What the Secretary said to Foreign Secretary Hague today is that we hope that British authorities and Scottish authorities will cooperate fully in trying to help everyone understand the circumstances surrounding this decision and any interaction or influences that might have been presented outside of the government. QUESTION: The thing that interests me here, though, is - and that's why I read it. The sentence ends, "Our unshakable conviction that al-Megrahi should not be a free man." And then the next sentence begins, "To that end, we're encouraging the Scottish and British authorities to review again the underlying facts and circumstances leading up to his release." I mean, is - it seems as if your encouragement of the British and Scottish authorities is not merely to make sure that everybody understands the circumstances leading to the decision and what influences there may or may not have been on that decision, but rather that it is to that end, i.e., the end of his not being a free man. It seems as if you are not quite but almost saying you want him back in prison somewhere. I mean, do you want him back in prison? Not did you want - never - not want him released in the first place. Do you want him incarcerated again? MR. CROWLEY: Well, if we had a preference, he'd be back in prison. I'm not sure how realistic a reversal of the Scottish authorities' decision of a year ago is at this point. But certainly, questions have been raised. They're legitimate questions about the breadth of information, who provided that information, what was the medical information that was available that caused the Scottish authorities to make what was, in retrospect, a regrettable and erroneous decision based on an assumption that Mr. Megrahi had a limited time to live. So I think that, again, there are questions here. These are questions for British and Scottish authorities to answer. We think that the meetings today, particularly with the senators, will be an opportunity for the British Government to pledge cooperation with ongoing investigations of this. There will be a hearing before the Senate later in the month. So this is an issue that is going to be with us, I expect, for some time. We're coming up next month on the anniversary of Mr. Megrahi's release. So to the extent that particularly Scottish authorities can be forthcoming in helping us understand how they arrived at the humanitarian judgment that they did, I think will answer the questions that have been raised. And I don't know that it can reverse the decision made, but it can assuage the concerns that we have about how this was handled. Jill. QUESTION: P.J., the same question. In that, you mentioned new information, any new information. Is there any new information that might shed a different light on this or that might lead the Scottish authorities to change their original decision? MR. CROWLEY: I'm not aware of any new information. I think my understanding - and I think there was a release of some information and documentation by Scottish authorities last fall that they came to this judgment based on the medical advice of a wide range of medical professionals who examined the evidence that was available to them. But again, these are very legitimate questions. They reflect the concern and the sense of outrage that we have and the families of the Pan Am 103 victims have about how this was handled. But these are questions for the Scottish authorities in particular to answer and I'm sure that the senators will reflect the views of many Americans that we want to make sure that we have available to us all of the details that went into this judgment a year ago. QUESTION: And P.J., also on that subject, when this came up a while ago - a year ago almost - there was concern that it might have an effect on the relationship between the United States and the UK. That diminished and things went on. Now, it has been raised by these four senators from New York and New Jersey. Does it have new life, enough new life that it might actually pick up enough political steam to have an effect, a bad effect, on relations? MR. CROWLEY: I don't think it's going to have an effect on our relationship. In fact, it hasn't had an effect on our relationship. We continue to engage fully with the British Government on a range of shared interests. There was the - Prime Minister Cameron's very effective and eloquent op-ed in today's Wall Street Journal that talked about that this is a relationship that is based on common interests, common values. So it's on that basis that we continue to have the kinds of high-level meetings we've had today between the President and the prime minister, between the Secretary and the foreign secretary, simply because there are such a wide range of issues on which the United States and Britain cooperate. And it is in our mutual interest to continue what is arguably the most productive bilateral relationship in the world. QUESTION: May we stick with this for just one more? MR. CROWLEY: Sure. QUESTION: You talked about the questions that have been raised and the influences that there may have been on the decision to release him. Are you alluding there to the questions about British Petroleum and its role in the - in lobbying the British Government regarding the prisoner transfer agreement which is not the vehicle through which he was ultimately released? Is that what you're talking about? MR. CROWLEY: Well, BP itself has answered some of these questions last week in its public statement saying - acknowledging that it did lobby the British Government regarding the prisoner transfer agreement, but not about Megrahi himself. We take that and understand it. But I'm sure that when the senators meet with Prime Minister Cameron later today, they're going to raise BP's role in this once again. My sense is that will be a significant issue talked about at this hearing coming up at the end of the month. Now, there was a separate correspondence by these senators to Secretary Clinton also addressing the issue of precisely what was the medical information that was available to the Scottish authorities. There have been suggestions that perhaps a doctor who may have been influenced by the Libyan Government may have offered some information. It's our understanding that the Scottish authorities made this decision based on the information and the evaluations of many medical professionals. It's unclear that the individual in question who has ties to Libya was even a factor in the Scottish decision. But these are the kinds of questions that we understand have been raised and we hope and trust that the British Government and Scottish authorities will be responsive to these questions. QUESTION: Do you - two things here. One, do you think that - BP was very upfront about saying that it lobbied the British Government regarding the prisoner transfer agreement and that it was aware that slow progress on that could affect its offshore oil exploration agreement, which then required or was pending ratification by the Libyan authorities. They, however, said that they did not lobby on behalf of Mr. Megrahi. I wonder, though, if you think there's something a little sophistical in that argument because the prisoner transfer agreement, while it was not limited to Mr. Megrahi, it was certainly - he was certainly somebody ultimately covered by it. And within a week of the prisoner transfer agreement coming into force on April the 29th, 2009, on May 6th, the Libyan Government asked for Mr. Megrahi to be transferred to Libya to serve out his sentence under the prisoner transfer agreement. And while I understand that these are two separate processes - the PTA on the one hand, on the compassionate grounds on which he was ultimately released because of his ill health - I wonder if you think there's something a little sophistical here, a little disingenuous perhaps? Because clearly, Mr. Megrahi was somebody who could have been a beneficiary of the prisoner transfer agreement. MR. CROWLEY: Well, as I understand it - again, British and Scottish authorities are in the best position to answer what you just asked - that in fact, the request for Mr. Megrahi to be transferred under the prisoner transfer agreement was actually rejected. And then the Scottish authorities decided to return him to Libya under a humanitarian decision, which we all regret. So again, these are quite legitimate questions. They reflect the discomfort and concern that we have about what has transpired in light of the fact that Mr. Megrahi does live as a free man in Libya today. And to the extent that authorities can help us understand fully what led up to the decision last year, I think that will be helpful in - as we go forward. But I don't think ultimately it's necessarily going to change where we are today. QUESTION: Another thing. It's about - do you - with all these talks that's going on, do you seriously believe that he can be brought back? The bird has flown the cage and it is not that it escaped; it was asked to. So where are we leading with all this? What does the U.S. today seriously believe? MR. CROWLEY: Well, as I just said, it would be unclear, absent some sort of very specific finding that, in fact, laws and regulations were violated here somehow, that there would not be a basis to reverse this decision. QUESTION: P.J., quickly -- MR. CROWLEY: But again, that's part of the reason why these questions are coming up. And to the extent that British and Scottish authorities can be reassuring that this was exactly as it was described and the process was not skewed in any way, then at least we'll understand fully how this happened. But it is an issue. It's going to remain an issue and to the extent that the meetings today can help us understand more fully the basis upon which the Scottish authorities made this decision and other things that were swirling around surrounding it, that would be helpful. QUESTION: Even if it was a mistake - MR. CROWLEY: Hmm? QUESTION: Even if it was a mistake, do you expect Libya to listen to Scottish authority and hand him back? MR. CROWLEY: As a practical matter, it is not - at this point Scottish authorities - and as we've said and stressed many times, Scottish authorities made this decision, they had the authority to make this decision. They would have to make a request to Libya that - on some sort of legal basis. I don't know the Scottish authority is going to make such a request and I'm not sure that Libyan authority is going to honor such a request. That's an academic point at this point, because we're not aware of any such request from Scottish authorities to send - to return Mr. Megrahi to Scotland, which makes all of this more, as we've said, regrettable. But it's unclear that it is reversible. QUESTION: Given that you feel strongly about this, have you asked the Libyans to put him in jail? I mean, he's in Libya. They could imprison him if they wanted. MR. CROWLEY: Well, again, what would be the legal basis to do that? Had he been transferred under the PTA, he would be in prison today in a Libyan prison. He was transferred under a humanitarian gesture by Scottish authorities, and I'm not aware of what specific conditions Scotland placed on Mr. Megrahi. All I can say is, from our standpoint, we wish that today he was still in a Scottish prison. It was our understanding that he would serve out his sentence in a Scottish prison. And we regret very strongly that Scotland made the decision that it made, but we respect the fact that it was within the authority of Scottish authorities to do what they did. QUESTION: Last one from me on this: The Secretary - MR. CROWLEY: Wait. Hold on. QUESTION: -- was asked - forgive me, just last one. I won't ask any more about this, I hope. MR. CROWLEY: (Laughter.) For a day anyway. QUESTION: And you all hope, too. MR. CROWLEY: We're going to beat this horse for a while (inaudible). (Laughter.) QUESTION: The senators specifically asked Secretary Clinton or the State Department to investigate this matter. Her letter doesn't actually address whether the State Department is going to launch any kind of an investigation into this. I mean I realize that the letter addresses some of the other issues, but it doesn't say, "Yeah, and we're going to launch an investigation." Does the State Department have any intention of launching an investigation into the circumstances regarding Megrahi's release? MR. CROWLEY: Well, Arshad, let us take this a step at a time. We've had - I think the President and the prime minister are wrapping up their meeting. As everyone has indicated, we fully expect that this was a topic of discussion among several. The prime minister will be talking to the senators later on this evening. There will be a hearing coming up at the end of the month where we'll be able to learn some more things from hearing witnesses, including, I think, representatives from BP about what they did. We, at this stage, are encouraging, as the Secretary said in her letter, British and Scottish authorities to cooperate fully to answer the questions that have been raised by the senators. We'll evaluate this as we go along, but one way or another, the answers to these questions do not exist within the United States Government. They exist within the British and Scottish governments. They are the ones who have to answer these questions. And we are encouraging them, as the Secretary and Foreign Secretary Hague agreed today in Kabul, to cooperate fully in answering the questions that these four senators, on behalf of the American people, have raised. Yeah. QUESTION: Thanks. P.J., the suggestions that - MR. CROWLEY: So we are going to beat this horse a little while longer. QUESTION: We are. MR. CROWLEY: Keep going. QUESTION: But at least we all get a whack at it. The suggestion - MR. CROWLEY: Oh, joy. (Laughter.) QUESTION: The suggestion that there may have been, as you said yesterday, other parties or influences that could have skewed the decision, or raising the question as to whether there were, suggests some sort of quid pro quo is what you're asking about: Was there something that Libya got or gave in exchange for this? And I wanted you to address that. What, concretely, is it that you're hinting at? And then a follow-up to that - MR. CROWLEY: I'm not hinting at anything. I mean, what we - what the senators are reflecting and our frustration is that the decision by Scottish authorities almost a year ago was based on an expectation that Mr. Megrahi had a limited time to live, perhaps three months. Here we are 12 months later, and now you've seen some assertions publicly that perhaps he has years to live. Well, this has obviously touched a nerve here in the United States. We - it touches our nerves as well. So what was the - in retrospect, what was the - what were the key judgments that the medical professionals that the Scottish authorities consulted with that led them to believe that Mr. Megrahi was, in fact, confronting a terminal illness? And so to some extent, fully understanding the full range of the information upon which they based this decision, I think would at least help us understand and assuage the concerns that have been raised. So was this something that was simply just a misdiagnosis or was this something else? These are the questions that the senators have raised and they deserve answers. QUESTION: Can I have the one follow-up, and only one? I promise. This certainly raises the question of Libya's reintegration into the civilized world. Libya was excluded from trade and diplomatic relations for - I can't even think how long it was. I mean, it was even before Lockerbie. If you find that - do these questions, these doubts, and if there was some interference, would that affect relations with Libya, reintegration of Libya, access of U.S. companies to work in Libya? MR. CROWLEY: There are a lot of ifs in that question. QUESTION: Yes, I know. MR. CROWLEY: Let's not get too far ahead of ourselves. QUESTION: Is that something you're examining at this point? MR. CROWLEY: Well, again, let's not get too far ahead of ourselves. We have some very legitimate questions and these questions could be resolved through very straightforward answers by British and Scottish authorities. We regret the decision. We think it was a mistake. We've made that clear. But at this point, we have no information to suggest that it was other than just simply the judgment of Scottish authorities to release Mr. Megrahi on compassionate humanitarian grounds. QUESTION: New topic? MR. CROWLEY: Please. QUESTION: Can you talk a little bit about the decision to - for the Secretary to go to the DMZ on this particular trip? She's been to South Korea in the past. Why go now at this time of heightened tension with North Korea? MR. CROWLEY: Well, I think it's part of the commemoration of the 60th anniversary of the Korean War. Remember, at the DMZ you are still confronting South Korea and North Korea across a line that is not a properly demarcated - demarked border. It is a place the place at which hostility ceased 60 years ago. So I think it is an important symbol - QUESTION: Fifty-seven years. MR. CROWLEY: Thank you very much. It's an important symbol of the current state of affairs, the tensions that do exist in the region. The Cheonan sinking is a reminder that this relationship right now is only guided by an armistice and there are definitely things that North Korea needs to do, should do, must do, to be able to reduce the tensions that do exist. We would hope to see, over a number of years, this stasis change; but, obviously, the DMZ is a reminder that the Korean War has been suspended and actually has not formally ended. QUESTION: Is there any worry that, given the tensions of North Korea, that this high-level visit could be misinterpreted as something more provocative? MR. CROWLEY: Well, I don't think - I mean, whether it's misinterpreted, that's up to North Korea. They've - we've been sending signals to North Korea for a long time and they haven't exactly interpreted them correctly in the past. Look, the Secretary and Secretary Gates, being in South Korea today, going to the DMZ, participating in the commemoration of the 60th anniversary of the Korean War, their discussions about steps that have been taken and will be taken in the aftermath of the Cheonan sinking, these are our reflection of our very strong relationship and partnership with the people of South Korea and our determination that the United States will do what it needs to do to protect the security of South Korea and the region. So we hope that North Korea's paying attention. We hope that it will understand that we are fully committed to the defense of South Korea, and we hope that it will take steps as a result to reduce tensions, improve relations with its neighbors, cease these provocative actions, and work more constructively towards denuclearization of the Korean Peninsula. QUESTION: The same issue. That 2+2 meeting will be held at the DMZ as well, right? MR. CROWLEY: That's a technical question. I don't - I'll - I don't know that that's true. I think it's a separate meeting. I think that -- QUESTION: In Seoul? Could you take that question? MR. CROWLEY: Yeah. I think it's in Seoul. If I'm wrong, I will let you know.[1] <http://www.state.gov/r/pa/prs/dpb/2010/07/144951.htm> QUESTION: Thank you. QUESTION: P.J., are you still considering imposing further unilateral sanctions on North Korea? MR. CROWLEY: Well, we are fully engaged in implementing Resolution 1874, which has given us significant authorities to address the specific concerns that we have about North Korea's proliferation activities. We are always looking at ways to put additional pressure on North Korea to send clear signals about what North Korea must do. I'm not suggesting that we're contemplating a new round of sanctions, but we are continually evaluating how can we address the range of concerns that we have about North Korea, both their proliferation activities, their provocative actions like the sinking of the Cheonan, their participation in a range of criminal activity. We're always looking at these things and how we can take specific steps to diminish and mitigate the threats and concerns that are posed by North Korea. But I'm not going to forecast that there's any particular step that we are contemplating. Part of what the Secretary, along with Secretary Gates and her counterparts - in fact, we will be reviewing with South Korea what our next steps should be in this process. Jim Steinberg in Tokyo will be doing the same thing. When the Secretary goes to the ASEAN Regional Forum, North Korea will again be a significant topic of discussion. So this is part of our ongoing efforts to consult fully with our partners in the Six-Party process and others across the region, because everyone shares the same concern about the actions and provocations of North Korea. QUESTION: So do you expect the secretaries and South Korean ministers will announce new sanctions in North Korea tomorrow? MR. CROWLEY: I'll try it again. I would not forecast any specific action - any specific announcements on a new round of sanctions. We always have this as a tool in the toolbox, but I'm not forecasting what our next steps will be. QUESTION: Actually, on the ASEAN conference -- MR. CROWLEY: Mm-hmm. QUESTION: -- there had been, I guess, some talk around the building that we could expect sort of a more robust condemnation of North Korea for the Cheonan sinking coming out of the ASEAN conference. But AFP was reporting today - reported to say that a draft statement of the ministers - made by the ministers says - kind of declines to place direct blame for the Cheonan on North Korea. I mean, in wake of the fact that - or taking into account the fact that the UN also refused to directly blame North Korea for the Cheonan sinking, now ASEAN seems ready to also decline to directly blame them. Are you concerned that there's a lack of support in the international community for a sort of strong response to the Cheonan? MR. CROWLEY: Well, I think that we have had strong unanimity within the five countries of the Six-Party process. We continue our dialogue with these countries and others about the dangers posed by North Korea. I'm not going to forecast what the final result of the ASEAN Regional Forum will be. But I do know that North Korea will be a significant topic of discussion. Everyone's going to have their views on what the next step should be. And clearly, we have different points of view on some of these issues. But North Korea will be a significant issue discussed because everyone involved shares the concern that - about North Koreans' - Korea's provocations and the potential dangers that it poses to the region as a whole. QUESTION: On a different topic. In Cuba, there's some indication -- QUESTION: Can we stay on North Korea? MR. CROWLEY: Sure. QUESTION: Okay. QUESTION: This visit to this DMZ area, I'm unable to understand the significance. Will she be visiting the - shown the tunnels? Will she be - what exactly -- I have been there personally. Where exactly she will be going there to? It's a huge area with nothing basically except -- MR. CROWLEY: I think when senior leaders - it's not unprecedented for a Secretary of State and the Secretary of Defense to go to the DMZ. I think there's a pretty specific routine that they follow when they're there. QUESTION: Sorry, just one - I know that you addressed this a couple of days ago, but the North Koreans have now formally announced that they will be sending a representative to the ARF. Is there going to be any possibility of a meeting? I know you said they're already - you weren't planning one already, but no change? MR. CROWLEY: Still not planning one. QUESTION: Unless you want to stay on North Korea - on Cuba, there are indications that the - that U.S. diplomats would meet with relatives of dissidents who are still there in prison. Is that the case? MR. CROWLEY: It is. QUESTION: What's going to be discussed? What's the point of the meeting? MR. CROWLEY: Well, we have these kinds of meetings on a regular basis, however often that might be. But in light of what has transpired in terms of release of some prisoners through the Interests Section of the Spanish government and the Catholic Church, our Interests Section in Cuba is meeting with individual families just to review the current situation, perhaps get some insights into their particular plans and preferences going forward. So this is part of our ongoing dialogue with the families of political prisoners. And again, we'll stress during these meetings that we hope - and that Cuba will release all prisoners - political prisoners as part of this process. QUESTION: Are you very hopeful that there is momentum for that after the previous release? MR. CROWLEY: Well, we'll see. There has been this kind of first level of agreement, and we would expect to have further releases to Spain this week. We'll see where it goes. We want to see all political prisoners released in Cuba. But how far and how fast the Cuban Government will go is a major question. David. QUESTION: P.J., do you have anything on a reported Russian demarche of the United States in connection with a Russian pilot arrested in Liberia on a drug case who was extradited to the U.S.? MR. CROWLEY: I'll defer to the Department of Justice and the Drug Enforcement Agency on specifics of this case. All I will tell you is that upon his arrival in the United States, he was given consular access in New York. QUESTION: And their complaint was that he wasn't given it when he was initially arrested. MR. CROWLEY: He was given consular access in New York. QUESTION: There was a report in The Washington Post today about - from the United Nations about a - the inspector general or the deputy inspector general resigning, saying that Ban Ki-moon had set up a whole structure to block her investigations into corruption. And I wondered if you had any comment on that. MR. CROWLEY: I don't specifically. I probably will defer to my colleagues at the UN Mission in New York. Obviously, effective administration of the United Nations is vitally important. Continuing to move forward on reforms, helping to make the United Nations more efficient - these are all critical aspects that guide our relationship with the United Nations. But as to the specific dynamic between the secretary general and his staff, I'll defer comment. QUESTION: Afghanistan? MR. CROWLEY: Sure. QUESTION: The Secretary mentioned the auditing procedure a little bit when she was talking to the journalists on the plane. Can you give us an update, how many ministries have been audited? You can take the question -- MR. CROWLEY: I'll take that question. I'm not aware that we have moved - I think there were three last time I checked. Let me - I'll check and see if we've completed the audits on additional ministries. I'm not aware that we have at this point. QUESTION: I think your last update was in December or something like that, so -- MR. CROWLEY: Yeah. I think it may still be three, but I'll take that question. QUESTION: Okay. QUESTION: Okay, thank you. QUESTION: Thank you. MR. CROWLEY: Thank you.

Freight train crash in Ayrshire; SCOTLAND: Ayrshire: Nr Stewarton: EXT Various of derailed BP freight train on fire and thick black smoke rising

The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 16:00:00 IT'S THE ULTIMATE FAIL SAFE AND I KNOW YOU KEEP USING THAT TERM 16:00:02 AND IT COMES BACK TO WHAT HAUNTS YOU, BUT I AM CURIOUS ABOUT 16:00:06 BLOWOUT PREVENTERS AND THE DIFFERENCE, AND I WAS NOTICING 16:00:11 MY STAFF AS THEY GAVE US INFORMATION. 16:00:14 YOU HAVE A 10,000 POUND PER SQUARE INCH BLOWOUT PREVENTER, 16:00:19 SHALLOW WATER, 10,000 POUNDS PER SQUARE INCH. 16:00:24 DEEPWATER, 10,000 POUNDS PER SQUARE INCH. 16:00:28 NOW I'M NOT AN EXPERT. WHY? 16:00:31 WHAT'S THE DIFFERENCE AS YOU GO INTO DEPTH? 16:00:33 WHY A GREATER CAPACITY? BECAUSE OF THE PRESSURE OF 16:00:37 THE RESERVOIRS THAT WE'RE DRILLING. 16:00:39 WHICH THEN LEADS ME TO A LOGICAL -- WHAT DO YOU THINK 16:00:42 YOU'RE DEALING WITH AT THAT DEPTH? 16:00:45 WE KNOW -- AS FAR AS POUNDS PER SQUARE 16:00:48 INCH? WE KNOW THAT WE'RE DEALING 16:00:51 WITH A RESERVOIR WITH THE PRESSURE OF AROUND BETWEEN 16:00:56 11,000 AND 12,000 POUNDS PER INCH AND WE HAVE A BLOWOUT 16:01:00 PREVENTER RATED FOR 15,000 POUNDS PER SQUARE INCH. 16:01:03 I BELIEVE THAT'S CORRECT. OKAY. 16:01:05 CAMERON -- I DON'T KNOW IF IT'S CAMERON THAT BUILDS THESE 16:01:10 BLOWOUT PREVENTERS. THAT'S A COMPANY THAT SOMEONE 16:01:12 TOLD ME THAT'S -- AND THEY'RE WORKING ON A 20,000 POUND PER 16:01:17 SQUARE INCH PREVENTER. YOU'RE AWARE OF THAT? 16:01:19 I AM, YES. AND THEY ACTUALLY SAID THIS, 16:01:23 WHILE THERE'S MUCH DISCUSSION AND AN ONGOING EFFORT TO PROVIDE 16:01:26 GUIDANCE FOR EQUIPMENT GREATER THAN 15,000 POUNDS PER SQUARE 16:01:30 INCH, IN THE INTEREST OF EXPEDIENCY, IT WAS DECIDED 16:01:35 WITHIN CAMERON TO APPLY CURRENT DESIGN CODES AND PRACTICES. 16:01:40 THE 20,000 POUNDS PER SQUARE INCH EVO BLOWOUT PREVENTER WAS 16:01:46 DESIGN, TESTED AND QUALIFIED FOR API AND I'M NOT SURE WHAT ALL OF 16:01:50 THAT MEANS. MEANING BASICALLY, BUT FOR THE 16:01:52 SAKE OF EXPEDIENCY DOES CONCERN ME. 16:01:55 WHY ARE YOU ALL LOOKING AT 20,000 POUNDS PER SQUARE INCH 16:01:59 WHEN YOU BELIEVE WHAT YOU ALREADY HAVE AT 15,000 EXCEEDS 16:02:03 WHAT YOU REALLY -- IS REQUIRED? I'M NOT CERTAIN, BUT I THINK 16:02:09 THAT'S REFERRING TO THE BLOWOUT PREVENTERS FOR RESERVOIRS WITH 16:02:13 EVEN GREATER PRESSURE. I DO BELIEVE THAT ONE OF THE 16:02:16 MOST IMPORTANT THINGS TO COME FROM THIS INCIDENT IS THE 16:02:21 REQUIREMENT FOR THE INDUSTRY TO STEP BACK AND REDESIGN THE FAIL 16:02:26 SAFE MECHANISM IT USES TO PREVENT ACCIDENTS. 16:02:29 WE NEED A FUNDAMENTAL REDESIGN OF THE BLOWOUT PREVENTER. 16:02:34 IT'S SOMETHING THAT BP IS GOING TO TAKE A VERY ACTIVE ROLE IN. 16:02:38 WE'VE ALREADY BEGUN THAT PROCESS WITH A NUMBER OF ACADEMIC 16:02:45 INSTITUTIONS AND A NUMBER OF CONTRACTORS IN THE INDUSTRY. 16:02:49 AND I THANK THE GENTLEMAN FOR HIS PATIENCE. 16:02:51 MR. HAYWARD, WE USUALLY SAY BETTER LATE THAN NEVER, BUT NOT 16:02:55 THIS TIME. I YIELD BACK. 16:02:57 MR. GONZALEZ, BEFORE MR. ENSLEY. 16:03:05 HE SUBMITTED A CD AND A RESOLUTION FROM THE STATE 16:03:11 SENATE. HE WILL PROVIDE COPIES FOR THE 16:03:13 RECORD AND UNANIMOUS CONSENT WILL BE MADE PART OF THE 16:03:17 QUESTIONING AND WILL BE MADE PART OF THE RECORD WITHIN TEN 16:03:19 DAYS. WITHOUT OBJECTION. 16:03:20 SO ORDERED. MR. HENSLEY, QUESTIONS, 16:03:22 PLEASE. THANK YOU. 16:03:23 MR. HAYWARD, SOMETHING YOU SAID EARLIER WAS REALLY QUITE 16:03:29 ASTOUNDING TO ME. YOU SAID THERE WAS NO EVIDENCE 16:03:32 TO DATE THAT THERE HAD BEEN ANY DECISION MADE BASED ON COST, 16:03:37 THAT NO DECISION HIS BEEN MADE IN AN EFFORT TO REDUCE COST, AND 16:03:41 I WANT TO GO THROUGH THIS BECAUSE THERE'S SOMETHING I 16:03:44 THINK IS QUITE PIVOTAL THROUGH THE INVESTIGATION. 16:03:47 THE FACTS ARE CLEAR THAT YOU HIRED HALLIBURTON TO GIVE ADVICE 16:03:52 ON THIS. MR. GAGLIANO DID ANALYSIS AND 16:03:56 CONCLUDED YOU NEEDED 21 CENTRALIZERS TO MAKE SURE THAT 16:03:59 THIS RIG WAS SAFE AND JUST TO RELIEF ANY DOUBT AS TO WHY 16:04:03 THAT'S IMPORTANT, THE AMERICAN PETROLEUM INSTITUTE RECOMMENDED 16:04:07 PRACTICE 65 SAYS, QUOTE, IF CASING IS NOT CENTRALIZED IT MAY 16:04:12 LAY NEAR OR AGAINST THE BORE HOLE WALL, AND IT IS NOT, IF 16:04:24 CASING IS POORLY CENTRALIZED. THIS RELIES ON BYPASSED MUD 16:04:29 CHANNELS AND INABILITY TO ACHIEVE ZONAL ISOLATION, CLOSED 16:04:32 QUOTE. THE EXPERT SAID YOU NEED 21. 16:04:34 THEN, AND IF WE CAN PUT UP THE FIRST SLIDE, A BP EMPLOYEE 16:04:38 ESSENTIALLY WROTE TO THAT EXPERT AND SAID WE ONLY HAVE SIX, AND 16:04:41 WE DON'T HAVE TIME TO DEAL WITH THIS PROBLEM. 16:04:46 THE TIME TO BRITISH PETROLEUM WAS MONEY. 16:04:48 THIS RIG WAS 45 DAYS LATE. IT COST YOU $500,000 A DAY AND 16:04:53 PEOPLE'S OBVIOUS ATTENTION WERE ABOUT TIME WHICH MEANT MONEY. 16:04:55 SO WHAT HAPPENED THEN? WELL, ANOTHER BRITISH PETROLEUM 16:05:02 PERSON SENT A MEMO SAYING WE REALLY NEEDED TO FOLLOW THE 16:05:05 MODEL HERE. HE KICKED IT UP TO MR. GUIDE. 16:05:08 IF WE COULD HAVE THE SECOND SLIDE, MR. GUIDE CAME BACK AND 16:05:12 SAID I DON'T LIKE THE FACT THAT THIS WILL TAKE TEN HOURS TO DO, 16:05:15 EVEN THOUGH ANOTHER BRITISH PETROLEUM PERSON SAID WE'LL FLY 16:05:18 15 THINGS IN. THEY CAN BE HERE TOMORROW 16:05:22 MORNING. MR. GUIDE SAID I DON'T LIKE THE 16:05:24 TEN HOURS, AND IT DIDN'T HAPPEN, AND THEN THE NEXT RESPONSE FROM 16:05:30 BRITISH PETROLEUM, NEXT SLIDE PLEASE WAS FROM AN E-MAIL FROM 16:05:36 MR. COKALAS REPRIMANDING ANOTHER BP PERSON FROM SAYING EVEN 16:05:41 THOUGH THE HOLE IS PERFECTLY STRAIGHT, EVEN INTENTION WILL 16:05:46 NOT SEEK THE PERFECT TENSION OF THE HOLE MEANING YOU'VE GOT TO 16:05:50 HAVE THE RIGHT CENTRALIZER, AND HE WENT ON TO SAY THIS. 16:05:53 WHO CARES? IT'S DONE. 16:05:55 END OF STORY. WE'LL PROBABLY BE FINE AND WE'LL 16:05:58 GET A GOOD CEMENT JOB. WHAT HAPPENED THEN THAT'S NOT 16:06:00 QUITE THE END OF THE STORY. MR. GAGLIANO RAN FURTHER 16:06:05 COMPUTER MODELS AND HE CONCLUDED, AND THIS IS HARD TO 16:06:09 READ, BUT I'LL READ IT. HE CONCLUDED THAT THIS WELL IS 16:06:13 CONSIDERED TO HAVE A SEVERE AND SEVERE IS ALL CAPITALIZED IN HIS 16:06:19 MEMO, GAS FLOW PROBLEM. NOW, IT'S VERY CLEAR TO ME 16:06:23 READING THIS CLEAR EVIDENCE THAT, IN FACT, DECISIONS WERE 16:06:28 MADE BECAUSE OF COST, BECAUSE PEOPLE DIDN'T WANT TO WAIT TO 16:06:32 GET THE CENTRALIZERS TO GET WHAT IS NEEDED TO SAFELY DO THIS JOB. 16:06:37 SO YOUR STATEMENT THAT THERE IS NO EVIDENCE THAT COSTS LED TO 16:06:41 SHORTCUTS JUST DOESN'T RING TRUE WITH ME. 16:06:43 ISN'T IT PRETTY CLEAR THAT THERE WERE COST DECISIONS MADE THAT 16:06:51 HAD SUB-OPTIMAL, AT BEST, NUMBER OF CENTRALIZERS IN PLACEMENT IN 16:06:54 THIS WELL? IT WILL BE MORE DIFFICULT, 16:07:03 BUT I GENUINELY BELIEVE THAT UNTIL WE'VE UNDERSTOOD ALL OF 16:07:07 THE THINGS THAT CONTRIBUTED TO THIS ACCIDENT, IT'S NOT EASY TO 16:07:14 SAY. WHAT I WOULD SAY, IF THERE IS 16:07:18 EVIDENCE, THAT COSTS WERE PUT AHEAD OF SAFETY. 16:07:22 I WOULD BOTH BE DEEPLY DISTURBED AND WE WOULD TAKE ACTION. 16:07:27 LET ME ASK YOU ABOUT THAT ACTION. 16:07:29 EVERYONE IN THE ROOM KNOWS ROADING THESE E-MAILS. 16:07:32 ARE YOU GOING TO CALL THE EMPLOYEES INVOLVED WHEN YOU 16:07:35 LEAVE THIS MEETING AND SAY, BECAUSE YOU'RE DRILLING IN 16:07:38 PLACES ALL OVER THE WORLD RIGHT NOW. 16:07:40 THIS IS AN ONGOING OPERATION AND TELL THEM THEY'VE GOT TO CHANGE 16:07:44 THEIR ATTITUDE. ARE YOU GOING TO TAKE ACTION 16:07:46 BASED ON THESE E-MAILS TODAY? WE WILL TAKE ACTION BASED ON 16:07:50 OUR INVESTIGATION WHICH PUTS ALL OF THIS TOGETHER AND AS IT 16:07:57 UNVEILS CLEAR CONCLUSIONS, WE WILL TAKE ACTION ON THEM. 16:08:00 LET ME SUGGEST ANOTHER ACTION. 16:08:04 WE ASKED BRITISH PETROLEUM WHAT IT SPENT ON RESEARCH AND 16:08:08 DEVELOPMENT REGARDING SAFER OFFSHORE DRILLING TECHNOLOGIES. 16:08:13 YOU GAVE US THE NUMBER. IT WAS ABOUT $10 MILLION A YEAR. 16:08:17 THAT REPRESENTS .0033%. .0033% OF BRITISH PETROLEUM 16:08:27 REVENUES. THAT DOESN'T SOUND LIKE AN 16:08:29 ADEQUATE PRIORITIZATION. HOW DOES IT COMPARE TO YOUR 16:08:32 COMPENSATION? IN WHAT RESPECT? 16:08:39 BRITISH PETROLEUM IS INVESTING ABOUT $10 MILLION A 16:08:43 YEAR IN SAFER DRILLING TECHNOLOGY. 16:08:46 HOW DOES THAT $10 MILLION A YEAR COMPARE TO YOUR COMPENSATION 16:08:50 NEXT YEAR, FOR INSTANCE? MY COMPENSATION LAST YEAR WAS 16:08:53 $6 MILLION. FORBES REPORTS THAT AT $33. 16:08:59 IS THERE A MISUNDERSTANDING? STOCK OPTIONS DON'T COUNT? 16:09:02 MY COMPENSATION LAST YEAR I THINK WAS RECORDED AT $6 16:09:06 MILLION. DO YOU THINK. 16:09:07 DO YOU THINK BRITISH PETROLEUM OUGHT TO MAKE A LARGER 16:09:11 INVESTMENT OF SIGNIFICANT GROSS REVENUES IN DEVELOPING SAFER 16:09:14 DRILLING TECHNOLOGY AND DO YOU THINK YOU OWE THAT TO THE 16:09:16 AMERICAN PEOPLE AT THIS POINT? TO BE HONEST, YES. 16:09:19 AND WE UNDOUBTEDLY WILL DO THAT ON THE BACK OF THIS ACCIDENT. 16:09:22 WE HOPE THAT THAT WILL BE EXPEDITIOUS AND SUCCESSFUL. 16:09:25 THANK YOU. THANK YOU, MR. HENSLEY. 16:09:33 QUESTIONS PLEASE. THANK YOU, MR. CHAIRMAN. 16:09:37 I APPRECIATE IT. MR. HAYWARD, HOW MANY DEEP WATER 16:09:41 OPERATIONS DO YOU ALL HAVE, BP, AROUND THE WORLD? 16:09:44 HOW MANY RIGS THAT YOU OPERATE? I DON'T KNOW THE PRECISE 16:09:48 NUMBER, BUT IT'S PROBABLY THE ORDER OF 15 OR SO. 16:09:51 15 OR SO. IS THERE -- ONE OF THE THINGS 16:09:57 I'VE RUN INTO AND MR. SCOLESE ALLUDED TO IT, WE'VE HAD OVER 16:10:06 100 REQUESTS FOR SUBMISSIONS, PRODUCTS, IDEAS, CONSENTS AND 16:10:10 WAYS TO CAP THE WELLS, ET CETERA, ET CETERA. 16:10:15 BASICALLY AND, OF COURSE, BECAUSE OF ETHICS WE CAN'T AND 16:10:18 WON'T GO IN AND MAKE ANYBODY MEET WITH ANYBODY. 16:10:21 SO WE JUST REFER THEM IN TO THEM. 16:10:23 THE BEST I CAN TELL IS THAT MAYBE THREE OUT OF THE 600 PLUS 16:10:28 HAVE RECEIVED AN, MAIL E-MAIL BACK, THANK YOU FOR YOUR 16:10:36 SUBMISSION. THANK YOU FOR ANYTHING ELSE. 16:10:38 THERE SEEMS TO BE A CLOSED LOOP OF VENDORS THAT YOU'RE DEALING 16:10:43 WITH WHICH MY FRUSTRATION IS THAT THE HOLE IS STILL WIDE OPEN 16:10:49 AND WHEN THIS ACCIDENT FIRST OCCURRED EVERYONE SAID WE'LL 16:10:56 TAKE WHATEVER IDEAS AND SUGGESTIONS. 16:10:59 WHATEVER, THE COFFERDAM AND THE TOP HAT, WHATEVER. 16:11:05 I'VE SEEN SOME PEOPLE THAT CALLED ME AND WE REFERRED THEM 16:11:08 IN AND THEY'VE NEVER HEARD ONCE FROM YOUR COMPANY. 16:11:13 IF YOU WERE NOT A VENDOR WITH US BEFORE THIS OCCURRED AND THEN 16:11:16 WE'RE NOT DEALING WITH YOU OR ARE YOU GOING TO ONLY THE 16:11:19 VENDORS AND ALLOWING THEM TO SELECT WHO THEY'RE GOING TO DEAL 16:11:22 WITH? AND MY REASON FOR THIS IS 16:11:23 BECAUSE IF THERE ARE GOOD IDEAS OUT THERE WHY ISN'T SOMEBODY 16:11:29 LOOKING AT THEM IN. WE ARE TRYING VERY HARD TO 16:11:31 ENGAGE WITH EVERYONE WHO HAS A GOOD IDEA. 16:11:35 WE HAVE BEEN, QUITE FRANKLY, INUNDATED WITH HUNDREDS OF 16:11:38 THOUSANDS. AND I KNOW THIS TREMENDOUS 16:11:41 AMOUNT. I KNOW THE FIRST ONE THAT I SAW 16:11:45 WAS WRAPPED HANGING IN THE CARTONS. 16:11:51 I UNDERSTAND THAT. THOSE ARE EASY TO GO THROUGH! 16:11:54 LET ME SHIFT ANOTHER GEAR. DO YOU BELIEVE THAT THIS 16:11:59 ADMINISTRATION'S MORATORIUM IS A RESULT OF THE TRAGEDY THAT 16:12:03 OCCURRED ON DEEPWATER HORIZON? THE FACT THAT THEY PUT IT IN WAS 16:12:08 STRICTLY BECAUSE OF WHAT WENT WRONG IN DEEP WATER! 16:12:15 I DON'T KNOW THAT, BUT I BELIEVE THAT'S THE CASE AND I 16:12:17 THINK IT'S PROBABLY THE RIGHT THING TO DO UNTIL SUCH TIME AS 16:12:21 WE HAVE GREATER CLARITY. WELL, YOU KNOW, AND I AGREE 16:12:27 WITH THAT, AND I DON'T AGREE WITH THE MORATORIUM. 16:12:31 AS I'VE EXPRESSED TO MY FRIENDS IT'S REALLY DIFFICULT FOR US IN 16:12:38 LOUISIANA TO STAND IN OIL AND SAY WE'LL TAKE MORE OIL, BUT 16:12:42 IT'S BECAUSE OF THE ECONOMY AND IT'S BECAUSE OF THE JOBS. 16:12:44 WE'VE SUPPORTED, I'VE SUPPORTED THE INDUSTRY AND I'VE SUPPORTED 16:12:48 THE PEOPLE, BUT IT MAKES SENSE THAT BP BEAR THE RESPONSIBILITY 16:12:54 OF THE ECONOMIC HARDSHIP ASSOCIATED WITH THIS MORATORIUM. 16:13:01 I THINK YOU ALL PUT 100 MILLION ASIDE FOR LOST JOBS. 16:13:06 I AM TOLD IN A GIVEN MONTH, AND I DON'T KNOW IF IT WAS JUST 16:13:12 LOUISIANA, OR OFFSHORE, BUT IT'S ABOUT 350 MILLION A MONTH IN 16:13:18 WAGES. ARE YOU AND YOUR COMPANY GOING 16:13:19 TO TAKE RESPONSIBILITY AND MAKE SURE THAT THESE COMPANIES THAT 16:13:26 FOLD UP, OR THESE COMPANIES THAT HAVE FINANCIAL HARDSHIPS AND IN 16:13:31 PARTICULAR THEIR EMPLOYEES THAT THEY'LL START LAYING OFF WILL BE 16:13:35 COMPENSATED IN SOME WAY? WE'VE MADE THE CONTRIBUTION, 16:13:38 HAVING BEEN ASKED TO BY THE GOVERNMENT TO A FUND WHICH WILL 16:13:43 BE PART OF THE FUNDING FOR THAT ISSUE. 16:13:46 DO YOU THINK 100 MILLION IS ADEQUATE AND YOU'VE BEEN IN THE 16:13:49 OIL BUSINESS FOR QUITE A WHILE. THOSE ARE GOOD-PAYING JOBS, 16:13:53 THAT'S WHY WE WANT TO KEEP THEM, BUT DO YOU THINK THAT 16:14:00 CONTRIBUTION IS ADEQUATE? POOH WE'VE MADE A CONTRIBUTION 16:14:04 AND SET ASIDE $20 BILLION FOR CLAIMS. 16:14:08 I'M CONCERNED ALSO WITH THEM. MRS. RASHTO AND MRS. KEMP MET 16:14:15 THE OTHER DAY, VERY BRAVE WOMEN ESPECIALLY SO SOON AFTER THE 16:14:19 DEATHS OF THEIR SPOUSES, AND, YOU KNOW, AFTER HEARING MISS 16:14:27 RASHTO AND MISS KEMP, I WOULD LIKE TO HEAR MAYBE YOUR 16:14:32 RESPONSE. MISS RASHTO'S HUSBAND TOLD HER 16:14:34 ABOUT THE PROBLEMS ON THE RIG AND THAT THE WELL WAS LOSING A 16:14:37 LOT OF MUD. THAT'S A DETAIL THAT MAY NOT 16:14:40 HAVE COME OUT OR COME TO YOUR ATTENTION, BUT IS WELL KNOWN 16:14:44 AMONG THE WORKERS ON THE RIGS THAT IS A SIGN OF THE PROBLEM. 16:14:47 SHE WANTS TO KNOW AND SHE ASKED US A QUESTION AT THE HEARING IS, 16:14:53 WHY YOUR COMPANY WASN'T WORKING HARDER TO FIX THE PROBLEMS ON 16:14:57 THE WEEK IN THE WEEKS BEFORE IT EXPLODED. 16:14:59 WHY WASN'T YOUR COMPANY PREPARED FOR A BLOWOUT? 16:15:03 I THINK, AS I'VE SAID ALL ALONG TODAY. 16:15:06 WE WANT TO UNDERSTAND EXACTLY WHAT HAPPENED SUCH THAT WE CAN 16:15:10 TAKE THE RIGHT ACTIONS GOING FORWARD, AND I'M NOT AWARE OF 16:15:16 THAT THAT THE -- WHAT YOU JUST RAISED, BUT THE INVESTIGATION 16:15:22 WILL DETERMINE WHETHER OR NOT THE MULTIPLE INVESTIGATIONS -- 16:15:26 THE INVESTIGATION, EXCUSE ME. THE INVESTIGATIONS ARE NOT GOING 16:15:30 TO BRING BACK THOSE 11 MEN TO THEIR KIDS. 16:15:37 NOT ONLY WERE THESE WOMEN CONCERNED ABOUT YOUR COMPANY'S 16:15:41 PREPAREDNESS. THEY WERE CONCERNED ABOUT YOUR 16:15:43 COMPANY'S VALUES. THEY WANTED RIGS TO BE KEPT SAFE 16:15:46 AND THEY WERE TO BE HELD ACCOUNTABLE FOR NOT 16:15:49 PROTECTIONING YOUR HUSBAND. MRS. KEMP ASKED WHY MONEY IS 16:15:51 MORE IMPORTANT THAN SOMEONE'S LIFE AND SO I GUESS ON BEHALF OF 16:15:55 MISS KEMP, HOW DO YOU RESPOND TO THAT? 16:15:58 IT ISN'T. IT ABSOLUTELY IS NOT. 16:16:01 AS I HAVE MADE CLEAR SINCE I'VE BEEN IN THIS ROLE, IT'S 16:16:04 SOMETHING I'VE BELIEVED IN FOR A VERY LONG TIME AND PRIORITY FOR 16:16:09 EVERYONE INVOLVED IN THESE OPERATIONS IS SAFETY. 16:16:13 THAT DOESN'T COME BEFORE ANYTHING, NOT ANYTHING. 16:16:19 IT'S SOMETHING THEY BELIEVE IN PERSONALLY AND VERY 16:16:22 PASSIONATELY. THE WOMEN TALKED ABOUT IN THEIR 16:16:24 TESTIMONY -- I'M SORRY. I'VE GONE OVER MY TIME. 16:16:26 FINISH YOUR QUESTION. YES, SIR. 16:16:28 THE WOMEN TALKED ABOUT IN THEIR TESTIMONY THAT THEIR HUSBANDS 16:16:34 WORKED FOR THE DRILLING RIG COMPANY FOR TRANSOCEAN AND THAT 16:16:38 THEY PUSHED SAFETY, THEY PUSHED SAFETY, THEY PUSHED SAFETY, BUT 16:16:44 IN DISCUSSIONS IN WEEKS PRIOR TO THE EXPLOSION THEIR HUSBANDS 16:16:51 TALKED ABOUT BP WAVING AND SAYING KEEP GOING, KEEP DOING. 16:16:58 I MEAN, I'VE HEARD GROWING UP IN SOUTH LOUISIANA ABOUT THE 16:17:06 TWO-PUSH OR THE WILL DRILL INFORMANT AND COMPANY GUYS 16:17:09 GETTING INTO FISTFIGHTS. WAS THERE ANY INCIDENTS TO YOUR 16:17:13 KNOWLEDGE OR HAVE YOU DISCOVERED THAT THERE WAS A DIRECT ORDER 16:17:17 GIVE KNOW BY BP THAT SAYS KEEP GOING. 16:17:21 I DON'T CARE WHAT'S GOING WRONG? I HAVE NOT SEEN ANY EVIDENCE 16:17:24 OF THAT WHATSOEVER, AND I BELIEVE THAT THE OPERATION ON 16:17:29 THE RIG IN THE DAYS LEADING UP TO THE INCIDENT AND IN THAT DAY 16:17:36 WAS CARRIED OUT BECAUSE EVERYONE AGREED ON THE RIG TO MOVE 16:17:40 FORWARD. THANK YOU, MR. CHAIRMAN. 16:17:43 THANK YOU. MR. CASTER FOR QUESTIONS, 16:17:44 PLEASE. THANK YOU, MR. CHAIRMAN. 16:17:49 MR. HAYWARD, I WOULD LIKE TO START OUT BY EXPRESSING THE 16:17:53 ANGER AND FRUSTRATION OF THE HARD-WORKING PEOPLE OF MY HOME 16:17:58 STATE OF FLORIDA AT THE CATASTROPHE B PERK HAS RENDERED 16:18:03 UPON OUR STATE AND ALL OF THE SMALL BUSINESSES, THE FISHERMEN 16:18:07 AND THE MOM AND POP HOTEL OWNERS. 16:18:11 YOU KNOW, WE WERE JUST COMING OUT OF THE MOST SEVERE RECESSION 16:18:14 IN OUR LIFETIME THAT HAPPENED IN 2007. 16:18:16 THINGS WERE GETTING A LOT BETTER. 16:18:18 SO THIS IS LIKE A SUCKER PUNCH TO THE GUT TO LEARN THAT TRAGEDY 16:18:25 IS A RESULT OF BP ELEVATING PROFITS, CONSIDERATIONS OVER 16:18:35 SAFETY. FOR A DECADE, MANY IN FLORIDA 16:18:37 HAVE OPPOSED THIS DRUMBEAT TO BRING THE OIL RIGS CLOSER TO OUR 16:18:41 BEACHES. OVER TIME WE HAVEN'T 16:18:44 INDUSTRIALIZED OUR COASTLINE LIKE OTHER STATES. 16:18:46 WE RELY ON TOURISM AND CLEAN BEACHES AND CLEAN WATER AND WE 16:18:52 REALLY FOUGHT IT OFF, EVEN IN THE FACE OF VERY WELL-PAID 16:18:56 LOBBYING CAMPAIGNS AND AD CAMPAIGNS WITH REPRESENTATIONS 16:19:03 THAT THIS IS SAFE. THIS IS SAFE TECHNOLOGY, WHETHER 16:19:06 IT'S IN DEEP WATER OR IN SHALLOW WATER. 16:19:09 SO MR. HAYWARD, I'M TRYING TO UNDERSTAND HOW BP EITHER WAS SO 16:19:13 UNPREPARED FOR THE POSSIBILITY OF A BLOWOUT, OR IGNORED THE 16:19:18 RISKS BECAUSE ACCORDING TO THE MINERALS MANAGEMENT SERVICE 16:19:22 STUDY CONDUCTED IN 2007, 126 BLOWOUTS HAVE OCCURRED AT 16:19:28 OFFSHORE DRILLING FACILITIES ON THE OUTER CONTINENTAL SHELF IN 16:19:37 1971. IT CREATED A DISASTER THAT 16:19:39 FLOWED CONTINUOUSLY FOR 290 DAYS. 16:19:43 MR. HAYWARD, YOU'VE SAID THAT THE CHANCES OF A BLOWOUT AND 16:19:47 EXPLOSION LIKE THE ONE THAT SANK THE DEEPWATER HORIZON RIG WERE 16:19:52 ONE IN A MILLION, BUT OVER THE PAST 40 YEARS THERE HAVE BEEN 16:19:56 126 BLOWOUTS IN THE U.S. WATERS ALONE. 16:20:00 THAT'S ROUGHLY THREE BLOWOUTS PER YEAR. 16:20:03 HOW -- HOW COULD AN AVERAGE OF THREE BLOWOUTS EVERY SINGLE YEAR 16:20:07 FOR THE PAST 40 YEARS NOT HAVE REGISTERED AS MORE THAN ONE IN A 16:20:13 MILLION CHANCE RISK FOR YOUR COMPANY? 16:20:16 WITH RESPECT, CONGRESSMAN, I THINK WHAT I SAID WAS THE 16:20:21 INTEGRITY RATING OF THE BLOWOUT PREVENTER WAS OF THE ORDER OF 10 16:20:26 TO THE MINUS 5 AND 10 TO THE MINUS 6. 16:20:28 THAT IS TO SAY THAT IT WAS DESIGNED TO FAIL BETWEEN 1 IN 16:20:35 100,000 AND ONE IN A MILLION TIMES. 16:20:37 AND THAT'S AN ACCEPTABLE RISK? 16:20:39 IT IS THE RISK THAT BP AND THE INDUSTRY MORE BROADLY USE TO 16:20:47 ASSESS THE FAIL SAFE MECHANISM CALLED THE BLOWOUT PREVENTER. 16:20:51 I KNOW YOU RELY ON THE BLOOE BLOWOUT PREVENTERS AND YOU SAY 16:20:56 THEY'RE FAIL SAFE, BUT THEY'RE NOT FAIL SAFE AT ALL IN WHAT 16:21:00 WE'VE DISCOVERED THROUGH THE COMMITTEE'S EXAMINATION AND THE 16:21:04 STATISTICS HERE. THIS COMMITTEE HAS REVIEWED THE 16:21:07 OIL RESPONSE PLAN FOR THE GULF OF MEXICO AND NOT ONE TIME IN 16:21:11 THE 582-PAGE PLAN DOES BP LAY OUT A METHOD TO REPLACE THE 16:21:18 GUSHER AFTER A BLOWOUT HAS OCCURRED AND YOUR COMPANY 16:21:22 CONDUCTED A PLANNING AFTER A SUBSEA BLOWOUT WASN'T EVEN A 16:21:27 POSSIBILITY. IN A RECENT INTERVIEW IN "THE 16:21:31 FINANCIAL TIMES," YOU ADMITTED THAT WE DID NOT HAVE THE TOOLS 16:21:37 YOU'D WANT IN A TOOL KIT. MY SIMPLE QUESTION IS WHY NOT? 16:21:42 WHY WEREN'T YOU PREPARED? WHY DID YOU ELEVATE PROFITS OVER 16:21:46 SAFETY? I DON'T BELIEVE WE ELEVATED 16:21:48 PROFITS OVER SAFETY. WHAT I WAS REFERRING TO IN THAT 16:21:51 ARTICLE WAS A VERY COMPLICATED ENGINEERING PROBLEM WE WERE 16:21:56 FACED WITH AFTER THE RIG SANK AND ATTACHED TO ITS RISER. 16:22:00 WE HAD A WELL, A WISER AND THE RIG ON THE FLOOR AND WE DIDN'T 16:22:05 HAVE THE EQUIPMENT INSTANTLY AVAILABLE TO CUT THE RISER AND 16:22:08 TO CUT OFF THE TOP OF THE RISER AND FIND A WAY TO INTERVENE ON 16:22:13 THE WELL HEAD AND THAT IS INDEED TRUE. 16:22:15 MR. HAYWARD, FOR YEARS BIG OIL COMPANIES AND YOUR ALLIES 16:22:21 HAVE CLAIMED THAT DRILLING IS SAFE AND YOU WANT TO COME CLOSER 16:22:25 TO FLORIDA BEACHES AND YOU SAY IT'S SAFE, DEEPER AND SHALLOW 16:22:31 THAT THERE ARE NO PROBLEMS, BUT ON THE OTHER HAND WE'VE HEARD 16:22:34 OVER AND OVER AGAIN OVER THE LAST COUPLE OF MONTHS, OH, THIS 16:22:37 IS COMPLEX AND THIS IS DANGEROUS. 16:22:40 IT'S DANGEROUS TO DRILL MILES BELOW THE OCEAN AND BP OFFICIALS 16:22:43 HAVE SAID IT'S LIKE OPERATING IN OUTER SPACE AND GIVEN THE 16:22:51 DIFFICULTIES AND COMPLEXITIES IN WHAT YOU KNEW ABOUT THE RISKS, I 16:22:55 CAN'T UNDERSTAND WHY YOU WOULD ASSUME THAT NOTHING COULD GO 16:22:58 WRONG. SO I'M -- THE DOUBLE SPEAK IS 16:23:03 RATHER TIRESOME. I'M DISMAY AND DISHEARTENED BY 16:23:08 WHAT HAS HAPPENED, AND THE ELEVATION OF PROFITS OVER 16:23:10 SAFETY, AND I CAN ONLY HOPE THAT THIS DISASTER WILL MOTIVATE US 16:23:16 TO REASSESS OUR PRIORITIES AND IMPLEMENT A CLEAN ENERGY POLICY 16:23:20 FOR THIS COUNTRY. THANK YOU, MR. CHAIRMAN. 16:23:24 THAT CONCLUDES QUESTIONS FROM EVERYBODY OF THE COMMITTEE. 16:23:27 THERE'S A FEW MORE QUESTIONS. THERE ARE A COUPLE OF MEMBERS 16:23:32 THAT HAVE A COUPLE OF FOLLOW-UP QUESTIONS SO WE'LL GO A QUICK 16:23:35 SECOND ROUND, IF WE MAY. CHAIRMAN WAXMAN, IF YOU WOULD 16:23:38 LIKE TO BEGIN? THANK YOU VERY MUCH, MR. 16:23:43 CHAIRMAN. MR. HAYWARD, YOU SAID YOUR 16:23:44 PRIORITY AND YOUR TOP FOCUS IS ON SAFETY AND YOU FEEL VERY 16:23:47 PASSIONATE ABOUT IT, EXCEPT FOR YOUR STATEMENT TO THAT EFFECT, I 16:23:51 SEE AS YOU'VE SAID OVER AND OVER AGAIN TODAY, NO EVIDENCE OF 16:23:58 THAT. THE YOU AND OTHER SENIOR 16:24:04 OFFICIALS SEEMED OBLIVIOUS TO THE DEEPWATER HORIZON RIG. 16:24:07 YOU WEREN'T FOLLOWING THE PROGRESS OF THE WELL AND YOU 16:24:10 WEREN'T AWARE OF THE RISKS BEING TAKEN. 16:24:13 IN ANSWERS TO QUESTIONS YOU SAID THAT YOUR TOP OFFICIALS UNDER 16:24:20 YOU, MR. ENGLISH AND MR. SUTTLES. 16:24:24 YOU WOULD BE SURPRISED IF THEY WOULD BE FOLLOWING THE 16:24:28 HAPPENINGS ON THE RIG, BUT YOU WOULD BE SURPRISED IF THEY'D 16:24:31 BEEN FOLLOWING THE ACTIVITIES ON THE DRILLING RIG. 16:24:34 SO WHO WAS FOLLOWING THE ACTIVITIES ON THE DRILLING RIG? 16:24:37 YOU SAID THERE WERE PEOPLE THERE WHO WERE THE EXPERTS IN THEIR 16:24:42 FIELD. I -- I JUST FIND IT SHOCKING 16:24:48 THAT WHEN THE POTENTIAL CONSEQUENCES OF A MISTAKE ON A 16:24:51 DEEP WATER RIG ARE SO ENORMOUS AND YOU HAVE SUCH A HIGH, 16:24:57 PASSIONATE COMMITMENT TO SAFETY THAT YOU SEEM SO REMOVED, I 16:25:00 THINK OPERATING A DEEP WATER ENVIRONMENT IS LIKE OPERATING IN 16:25:04 OUTER SPACE AND YET YOU SEEM TO THINK THAT ALL IS GOING TO BE 16:25:08 TAKEN CARE OF IN TIME. NOW YOU SAID THERE'S A TEAM, THE 16:25:15 BEST MINDS IN THE WORLD LOOKING ON HOW TO STOP THE OIL SPILL. 16:25:18 WHERE ARE THE BEST MINDS IN YOUR COMPANY PAYING ATTENTION BEFORE 16:25:24 THE SPILL? YOU WERE OBLIVIOUS AND SO WERE 16:25:26 OTHER SENIOR OFFICIALS AND THIS WAS A FUNDAMENTAL MISTAKE IN 16:25:31 MANAGEMENT. LET ME ASK YOU THAT. 16:25:32 DO YOU THINK THERE WAS A FUNDAMENTAL MISTAKE IN 16:25:34 MANAGEMENT NOT TO KNOW IN. I THINK, AS I'VE SAID. 16:25:40 WE MADE IT VERY CLEAR THAT THE FOCUS THE COMPANY IS ON SAFETY. 16:25:43 WHAT MANAGEMENT CAN DO IS ENSURE THAT THE RIGHT PEOPLE WITH THE 16:25:46 RIGHT SKILLS ARE IN PLACE. THE RIGHT SYSTEMS AND PROCESSES 16:25:50 ARE IN PLACE AND THE RIGHT PRIORITIES ARE IN PLACE AND THE 16:25:54 RIGHT INVESTMENT IS AVAILABLE TO ENSURE THAT THE PLANT THAT WE 16:25:58 ARE OPERATING HAS INTEGRITY. SO YOU FELT CONFIDENT THAT 16:26:03 THE PEOPLE THAT WERE MAKING THESE DECISIONS AND WE WENT 16:26:06 THROUGH FIVE IN OUR LETTER TO YOU AND MANY MEMBERS ASKED YOU 16:26:09 ABOUT THESE DECISIONS THAT THE RIGHT PEOPLE WERE MAKING THOSE 16:26:12 DECISIONS? I BELIEVE THAT THE RIGHT 16:26:13 PEOPLE WERE MAKING THOSE DECISIONS. 16:26:15 AND YOU HAVE NO EVIDENCE THAT THEY DIDN'T MAKE THE RIGHT 16:26:17 DECISION. THAT SEEMS TO BE YOUR POSITION 16:26:20 TODAY. IS THAT RIGHT? INVESTIGATION IT'S PREMATURE TO 16:26:24 DRAW CONCLUSIONS TO WHAT WAS AND WAS NOT THE RIGHT DECISION. 16:26:28 OKAY. IT'S PREMATURE. 16:26:31 WHAT INVESTIGATION OR INVESTIGATIONS ARE TAKING PLACE 16:26:32 TO DETERMINE THESE FACTS? THERE IS THE BP 16:26:36 INVESTIGATION, THERE'S A MARINE BOARD INVESTIGATION AND THE 16:26:40 PRESIDENTIAL COMMISSION. AND ARE YOU GOING TO BE 16:26:43 COOPERATING WITH ALL OF THEM? WE ARE, AS WE HAVE, MR. 16:26:46 CHAIRMAN, COOPERATED WITH YOUR COMMITTEE. 16:26:48 WELL, I QUESTION HOW COOPERATIVE YOU'VE BEEN WITH OUR 16:26:51 COMMITTEE BECAUSE I'VE HEARD VERY LITTLE ANSWERS TO THE 16:26:54 QUESTIONS FROM YOU TODAY TO THE QUESTIONS RAISED BY OUR 16:27:03 C COLLEAGUES. 16:27:04 WHEN YOU WERE ASKED WHETHER BP MADE A WELL DESIGN, YOU SAID YOU 16:27:06 HAVEN'T REACHED A CONCLUSION YET. 16:27:09 WHEN MR. DINGLE ASKED WHETHER COSTS WERE A FACTOR, YOU SAID 16:27:12 YOU DIDN'T KNOW BECAUSE YOU WEREN'T THERE AND MR. DOYLE 16:27:14 ASKED YOU WHO MADE THE WELL DESIGN DECISIONS, YOU SAID YOU 16:27:18 DIDN'T KNOW. OUR COMMITTEE IS DOING AN 16:27:21 INVESTIGATION. NOW THE REASON WE'RE DOING AN 16:27:23 INVESTIGATION IS WE WANT TO KNOW HOW THIS HAPPENED SO THAT WE CAN 16:27:28 MAKE CHANGES IN THE LAW AND THE PROCEDURES IF WE'RE GOING TO 16:27:32 ALLOW FURTHER DRILLING. DON'T YOU THINK YOU OUGHT TO BE 16:27:36 MORE FORTHCOMING WITH US? WE WILL BE AS FORTHCOMING AS 16:27:39 WE CAN BE, MR. CHAIRMAN. GIVE ME THE TIME HORIZON FOR 16:27:42 YOUR INVESTIGATION. WHEN WILL YOU HAVE THAT 16:27:45 COMPLETED? YOU'VE HAD 60 DAYS TO DO IT. 16:27:48 IS IT GOING ON NOW? IT'S ONGOING AND WE WANT TO 16:27:50 HAVE ACCESS TO ALL OF THE EVIDENCE BEFORE WE MAKE FINAL 16:27:56 DETERMINATIONS, BUT AS WE HAVE MADE VERY CLEAR. 16:27:59 GIVE ME AN ESTIMATE TO WHEN THAT WILL BE CONCLUDED. 16:28:01 ONE OF THE MOST IMPORTANT ELEMENTS IN THIS IS THE BLOWOUT 16:28:06 PREVENTER. IT RERE MAINS ON THE SEA BED AND 16:28:08 IT NEEDS TO BE EXAMINED. SO WE'LL PUT THAT ASIDE. 16:28:12 HOW ABOUT THE OTHER DECISIONS BEFORE THE EXPLOSION ABOUT THE 16:28:16 CASING? ABOUT THE CENTERING OF THE WELL? 16:28:18 ABOUT ALL OF THE OTHER THINGS THAT HAVE BEEN RAISED? 16:28:22 HAVE YOU REEZ GOOD TENTATIVE CONCLUSIONS THAT YOU COULD SHARE 16:28:25 WITH US? AS WE SHARED WITH YOU 16:28:29 RECENTLY, WE'VE IDENTIFIED SEVEN AREAS, AREAS OF FOCUS IN OUR 16:28:35 INVESTIGATION AND WE WILL CONTINUE TO SHARE OUR 16:28:39 UNDERSTANDING AND OUR THINKING WITH YOU AS THAT DEVELOPS. 16:28:41 MR. HENSLEY ASKED YOU IF THERE WAS ANY ACTION THAT 16:28:47 APPEARED -- IF THERE WAS ANY ACTION TO SAVE MONEY AND YOU 16:28:51 SAID THERE'S NO EVIDENCE OF THAT. 16:28:53 I CAN'T BELIEVE YOU SAID THERE'S NO EVIDENCE OF THAT. 16:28:57 THERE'S EVIDENCE YOU WANT TO KNOW MORE ABOUT IT, BUT THERE'S 16:29:00 CERTAINLY EVIDENCE TO THAT EFFECT, ISN'T THERE? 16:29:04 THE DECISION THAT WAS TAKEN BY THE PEOPLE AT THE TIME, AND 16:29:10 SOME OF THEM IN -- SITTING HERE TODAY APPEAR THEY MAY HAVE BEEN, 16:29:16 BUT IT'S NOT CLEAR. WELL EVIDENCE IS NOT 16:29:20 CONCLUSIVE, BUT THERE'S EVIDENCE. 16:29:22 THE DECISION, FOR EXAMPLE, TO RUN A LONG STRING VERSUS A LINER 16:29:29 WAS, AS IT SHOWS IN THE DOCUMENT THAT YOU HIGHLIGHTED TO ME, A 16:29:34 DECISION TO DO WITH THE LONG-TERM INTEGRITY OF THE WELL. 16:29:39 THERE'S EVIDENCE AND THE EVIDENCE MAY POINT IN A CERTAIN 16:29:44 DIRECTION. THERE MAY BE EVIDENCE THAT 16:29:48 POINTS IN ANOTHER DIRECTION. YOU REACH A CONCLUSION BASED ON 16:29:53 THE PREPONDERANCE OF THE EVIDENCE. 16:29:55 THAT'S NOT TO SAY THERE ISN'T EVIDENCE WHEN WE HAVE THE CLEAR 16:29:58 EXAMPLES. LET ME ASK YOU THIS. 16:30:00 YOU CAN'T GIVE US A TIME FOR WHEN THIS INVESTIGATION IS GOING 16:30:03 TO BE COMPLETE SO WE'RE RELYING ON YOU TO DO YOUR OWN 16:30:09 INVESTIGATION. WHY SHOULD WE RELY ON YOU TO DO 16:30:11 YOUR OWN INVESTIGATION? I DON'T THINK YOU HAVE A 16:30:13 TERRIFIC RECORD OF RELIABILITY THAT SHOULD GIVE US COMFORT TO 16:30:16 HAVE US STEP BACK AND JUST WAIT TO GET ANSWERS FROM YOU UNTIL 16:30:21 YOU'VE DONE YOUR OWN INVESTIGATION. 16:30:23 WHY SHOULD WE RELY ON THAT IN. WE'RE CLEARLY NOT THE ONLY 16:30:26 PEOPLE DOING AN INVESTIGATION? THERE ARE MANY PEOPLE DOING 16:30:29 INVESTIGATIONS. ALL I HAVE COMMIT SIDE THAT OUR 16:30:32 INVESTIGATION PROCEEDS WE WILL SHARE WITH YOU ALL OF OUR 16:30:37 FINDINGS AND ALL OF THE DATA AND ALL OF THE INFORMATION. 16:30:39 WELL, LET ME JUST SAY IN CONCLUSION, WE DELAYED THIS 16:30:43 HEARING TODAY SO YOU COULD BE PREPARED TO ANSWER OUR 16:30:47 QUESTIONS. WE SENT YOU OUR QUESTIONS IN 16:30:50 ADVANCE. YOU'VE CONSISTENTLY DUCKED AND 16:30:53 EVADED OUR QUESTIONS. THERE MUST BE SOME REASON THAT 16:30:56 YOU THINK THIS APPROACH MAKES SENSE AND YOUR E VAGSZ WILL MAKE 16:30:59 OUR JOB MORE DIFFICULT AND IT WILL IMPEDE OUR UNDERSTANDING OF 16:31:01 WHAT WENT WRONG AND WILL MAKE IT HARDER IT DRAFT APPROPRIATE 16:31:05 REFORMS. I THINK THAT'S REGRETTABLE AND 16:31:08 AN UNFORTUNATE REPORT FOR YOU TO TAKE ON THE COMMITTEE OF THE 16:31:12 UNITED STATES' CONGRESS AND I LOOK FORWARD TO SEE WHEN YOU 16:31:14 COME UP WITH, BUT WE'LL GET EVIDENCE, AND I WOULD LIKE YOU 16:31:18 TO SUBMIT FOR THE RECORD THE NAMES OF THE INDIVIDUALS WHO 16:31:21 MADE THOSE DECISION IN EACH OF THE AREAS THAT WERE UNDER 16:31:24 DISCUSSION IN THE LETTER WE SENT YOU. 16:31:26 WOULD YOU BE WILLING TO DO THAT? WE'LL MAKE THAT AVAILABLE TO 16:31:29 YOU. THANK YOU. 16:31:30 AS WE HAVE MADE EVERYTHING TO MY KNOWLEDGE, AVAILABLE TO YOU. 16:31:35 AND MAYBE THEY'LL HAVE SOME ANSWERS THEY COULD SHARE WITH 16:31:38 US. THANK YOU VERY MUCH. 16:31:39 THANK YOU, MR. CHAIRMAN. MR. BARTON FOR QUESTIONS? 16:31:44 THANK YOU, CHAIRMAN STUPAK. WE'RE ABOUT TO FINISH UP THIS 16:31:49 HEARING. WE DOPPRECIATE YOUR PATIENCE 16:31:57 IN LISTENING TO THE VARIOUS MEMBERS OF THE SUBCOMMITTEE. 16:31:59 WHAT ONE OR TWO RECOMMENDATIONS ARE YOU PREPARED TO GIVE ABOUT 16:32:03 WHAT WE COULD DO TO PREVENT A FUTURE ACCIDENT OF THIS TYPE NOW 16:32:08 THAT YOU KNOW WHAT YOU KNOW AND YOU'VE LISTENED TO WHAT THE 16:32:11 CONGRESS KNOWS HERE TODAY. ARE THERE ONE OR TWO THINGS THAT 16:32:16 YOU WOULD LIKE TO SUGGEST FOR CONSIDERATION TO PREVENT AN 16:32:19 ACCIDENT OF THIS TYPE FROM HAPPENING IN THE FUTURE? 16:32:23 I BELIEVE THAT THE MOST IMPORTANT ONE IS TO TAKE THE 16:32:29 FAIL SAFE MECHANISM CALLED THE BLOWOUT PREVENTER AND DESIGN IT 16:32:33 SO THAT IT'S GENUINELY FAIL SAFE. 16:32:35 THE REALITY IN ALL INDUSTRIAL ACCIDENTS IS THAT THEY ARE 16:32:39 ALWAYS A COMBINATION OF EQUIPMENT FAILURE AND HUMAN 16:32:44 JUDGMENT AND THE MOST IMPORTANT THING IS TO HAVE IN PLACE A 16:32:47 SYSTEM THAT IS GENUINELY FAIL SAFE AND IT IS CLEAR, BASED ON 16:32:54 OUR EXPERIENCE OF THIS ACCIDENT THAT THE CURRENT DESIGN BASIS OF 16:33:01 THE BLOWOUT PREVENTER BEING USED IN THE DEEP WATER, NOT JUST IN 16:33:04 THIS CASE, BUT ACROSS THE WORLD IS NOT AS FAIL SAFE AS WE 16:33:08 BELIEVED IT TO BE, AND I BELIEVE THAT'S A VERY IMPORTANT LESSON 16:33:12 THAT THE INDUSTRY NEEDS TO GRASP ALONG WITH THE RELEVANT 16:33:16 REGULATORY AGENCIES. MUCH HAS BEEN MADE OF THE 16:33:23 COMPLEXITY AND THE RISKS ASSOCIATED WITH DRILLING THESE 16:33:28 DEEP WELLS. WOULD YOU CARE TO -- I'VE ASKED 16:33:32 SOME OF YOUR SUBORDINATES TO GIVE US SOME SORT OF ASSESSMENT 16:33:37 OF THE POTENTIAL SIZE OF THIS PARTICULAR FIELD OF THIS 16:33:42 PARTICULAR WELL. I'VE ASKED THE TEXAS RAILROAD 16:33:45 COMMISSION AND THE TEXAS U.S. GEOLOGICAL SURVEY WHAT THE 16:33:50 LARGEST ONSHORE OIL WELL IN TEXAS IN ITS HISTORY OF OVER 100 16:33:55 YEARS HAS BEEN, AND WITH THE EXCEPTION OF THE INITIAL 16:34:03 DISCOVERY OF SPINDLE TOP IN 1901 WE CAN'T FIND THE ONSHORE TEXAS 16:34:08 WHICH HAS BEEN THE NUMBER ONE OIL-PRODUCING STATE IN THE 16:34:11 COUNTRY FOR OVER 100 YEARS WITH THE EXCEPTION OF A FEW YEARS IN 16:34:15 ALASKA AT PRUDHOE BAY AT ITS PEAK, THAT FLOWED AT 50,000 16:34:22 BARRELS A DAY, AND THE LATEST ESTIMATES ARE THAT THIS WELL IN 16:34:29 THIS CONDITION COULD BE FLOWING AS MUCH AS 50,000 BARRELS A DAY. 16:34:32 IF YOU EXTRAPOLATE THAT ON AN ANNUAL BASIS, THAT -- THAT'S 16:34:39 OVER 1100 MILLION BARRELS OF OIL A YEAR. 16:34:43 SO COULD YOU GIVE US SOME ASSESSMENT OF WHY BP AND OTHER 16:34:48 COMPANIES GO TO SUCH EXTRAORDINARY MEASURES TO DRILL 16:34:51 IN THESE AREAS? WHAT IS IT THAT YOU THINK YOU 16:34:55 FOUND OR WERE HOPING TO FIND BENEATH THE GULF OF MEXICO? 16:34:58 IN THE INSTANCE OF THIS WELL, WE BELIEVE THAT THE DISCOVERY 16:35:06 WAS OF THE ORDER OF 50 MILLION BARRELS. 16:35:09 50 MILLION? 50 MILLION BARRELS. 16:35:11 THAT'S THE ESTIMATE OF THE DISCOVERY OF THE SIZE OF THE 16:35:14 DISCOVERY THAT THIS WELL MADE. SO IF YOU -- AT THE RATE IT'S 16:35:18 FLOWING IT OUGHT TO PETER OUT FAIRLY QUICKLY. 16:35:24 50,000 BARRELS A DAY IS 50,000 BARRELS A WEEK WHICH IS 3.5 16:35:29 MILLION IN TEN WEEKS WHICH IS 35 MILLION IN 100 WEEKS. 16:35:37 SO IT -- -- IT WOULD -- I WAS TOLD IT WAS ON THE ORDER OR 16:35:42 MAGNITUDE THAT IT WAS 500 MILLION BARRELS. 16:35:45 THAT'S NOT CORRECT, CONGRESSMAN. 16:35:47 THIS IS A DISCOVERY BASED ON THE CLEARLY ON THE WELL AND THE 16:35:52 SEISMIC INFORMATION WE HAVE AVAILABLE TO US. 16:35:55 IT'S JUST THAT THE EXTREME PRESSURE. 16:35:58 IT COULDN'T FLOW AT THIS RATE IN FULL PRODUCTION. 16:36:02 IS THAT A FAIR STATEMENT? THAT'S CORRECT. 16:36:05 WOULD YOU CARE TO TELL US WHAT IT WOULD FLOW AT? 16:36:08 WHAT YOU WOULD HAVE EXPECTED IT TO FLOW AT PER DAY? 16:36:10 I THINK AS A PRODUCING WELL, PROPERLY COMPLETED WIELD EXPECT 16:36:17 IT TO BE PERHAPS BETWEEN 15 AND 25,000 BARRELS PER DAY. 16:36:21 OKAY. AND LASTLY, WITH THE MORATORIUM 16:36:26 THAT'S CURRENTLY IN EXISTENCE IN THE GULF OF MEXICO FROM THE DEEP 16:36:31 AREAS OF THE SIX-MONTH MORATORIUM, I KNOW YOU HAD TO DO 16:36:36 EVERYTHING, AND WE WANT YOU TO STOP THIS SPILL AND CLEAN IT UP, 16:36:40 BUT THERE ARE OTHER AREAS THAT COULD BE EXPLORED. 16:36:45 WHAT OTHER AREAS MIGHT BP GO TO INSTEAD OF IN THE GULF OF 16:36:50 MEXICO? WELL, WE HAVE DEEP WATER 16:36:56 DRILLING EXPLORATION AND PRODUCTION OPERATIONS IN A LARGE 16:36:59 NUMBER OF LOCATIONS AROUND THE WORLD, IN WEST AFRICA, BRAZIL, 16:37:05 EGYPT, TO NAME THE THREE AS WELL AS THE UK AND THE NORTH SEA. 16:37:10 SO YOU WOULD -- YOU WOULD FOCUS ON THOSE AREAS IF THIS 16:37:13 MORATORIUM CONTINUES? WE ARE FOCUSED TODAY ON THE 16:37:19 RELIEF WELL. I UNDERSTAND, AND YOU SHAB. 16:37:23 YOU BETTER BE. I HAVEN'T THOUGHT, FRANKLY, 16:37:26 BEYOND DEALING WITH THE RELIEF WELLS IN TERMS OF THEIR ACTIVITY 16:37:30 IN THE GULF OF MEXICO. THANK YOU, MR. CHAIRMAN. 16:37:33 THANK YOU, MR. MARTIN. MR. HAYWARD, THE LINE OF 16:37:38 QUESTIONING THROUGHOUT THE DAY YOU REFERRED TO THE BLOWOUT 16:37:41 PREVENTER. MR. GONZALEZ WHEN HE ASKED YOU 16:37:43 QUESTIONS AND MR. BARTON ASKED SOME QUESTIONS ON THERE, BACK ON 16:37:46 JUNE 4th YOU WROTE AN EDITORIAL TO "THE WALL STREET JOURNAL" 16:37:52 PERTAINING TO THE BLOWOUT PREVENTER. 16:37:54 YOU STATED WE IN THE INDUSTRY HAVE HAD GREAT CONFIDENCE IN THE 16:37:58 BLOWOUT PREVENTER AS THE FAIL SAFE PIECE OF SAFETY EQUIPMENT 16:38:03 ON THIS OCCASION IT FAILED WITH DISASTROUS CONSEQUENCES. 16:38:06 YOU STILL BELIEVE THE BLOWOUT PREVENTER SHOULD BE CONSIDERED 16:38:09 THE ULTIMATE IN FAIL SAFE? I BELIEVE SO. 16:38:12 EITHER A BLOWOUT PREVENTER OR SOME SIMILAR MECHANISM. 16:38:16 WELL, I'M A LITTLE SURPRISED BY YOUR COMMENTS BECAUSE THE 16:38:19 COMMITTEE RECEIVED THE DOCUMENTS AND YOU HAVE THE DOCUMENT FINDER 16:38:22 RIGHT THERE AND YOU MAY WANT TO REFER TO IT THAT EVALUATED THE 16:38:26 BLOWOUT PREVENTER USED ON DEEP WATER HORIZON RIG. 16:38:30 THE DOCUMENT IS TABBED NUMBER 14 RIGHT THERE AND WE PUT IT UP ON 16:38:33 THE SCREEN. IN 2001, WHEN TRANSOCEAN BOUGHT 16:38:37 THE BLOWOUT PREVENTER, I WANT TO SHOW YOU THE EXECUTIVE SUMMARY 16:38:41 IN WHICH BP PARTICIPATED WITH IT IN THIS REVIEW, AND IT SAYS 16:38:48 ENGINEERING AND OPERATIONS PERSONNEL IDENTIFIED 260 FAILURE 16:38:53 MODES. YOU SEE WHERE IT SAYS THAT 16:38:55 TOWARDS ABOUT THE TOP THIRD OF IT? 16:38:58 OKAY. SO BP ENGINEERS, YOUR 16:39:00 ENGINEERS HELPED TO IDENTIFY THE 260 FAILURE MODES SO HOW CAN YOU 16:39:04 WRITE AND HOW CAN YOU TAF, BUT HOW CAN YOU WRITE IN THE WALL 16:39:09 STREET JOURNAL THAT YOU THOUGHT IT WAS THE ULTIMATE FAIL SAFE 16:39:12 WHEN YOUR OWN ENGINEERS EXAMINED THE BLOWOUT PREVENTER FOUND 260 16:39:17 FAILURE MODES IN IT. HOW COULD YOU SAY IT'S THE 16:39:21 ULTIMATE FAIL SAFE? HAVEN'T SEEN THIS DOCUMENT 16:39:24 PREVIOUSLY. I APOLOGIZE FOR THAT, BUT I 16:39:26 HAVEN'T? NOW KNOWING THERE'S 260 FAIL 16:39:29 SAFE MODES IN THIS BLOWOUT PREVENTER THAT WAS ON DEEPWATER 16:39:33 HORIZON, IT NEVER WAS THE ULTIMATE FAIL SAFE, WAS IT? 16:39:35 THE BLOW OUT PREVENTER IS DESIGNED TOON THE ULTIMATE FAIL 16:39:38 SAFE, THAT IS ITS DESIGN BASES. IT'S THE BASIS ON WHICH THE 16:39:43 INDUSTRY HAS OPERATED FOR IN 30 YEARS IN DEEP WATER. 16:39:46 LET ME ASK YOU THIS, AS THE CEO, WHY THEN WOULD YOUR COMPANY 16:39:52 CHANGE THE BLOWOUT PREVENTER FAIL SAFE MEK METHODS OR 16:39:59 MECHANISM, FOR INSTANCE, WE FOUND OTHER THINGS THAT SHOWED 16:40:02 THAT THIS BLOW OUT PREVENTER WAS NOT FAIL SAFE UPON AT OUR FIRST 16:40:07 HEARING, MAY 12th I READ THAT THE BLOWOUT PREVENTER HAD BEEN 16:40:12 MODIFIED IN WAYS THAT IT WOULD HAVE BEEN INCREASED AND THAT IT 16:40:15 WOULD RPT WORK. ONE MOD IF I KAGD, FOR INSTANCE, 16:40:18 WAS TO REMOVE THE IMPORTANT VARIABLE RAM AND REPLACED IT 16:40:22 WITH THE TEST RAMP THAT MADE IT INEFFECTIVE IN CASE OF AN 16:40:26 EMERGENCY. AT OUR HEARING, I ASKED MR. 16:40:29 McKAY, THE PRESIDENT OF BP AMERICA ABOUT THESE MOD IF I 16:40:33 KAGDS. HE TESTIFIED UNDER OATH. 16:40:35 HE TOOK THE OATH ANY HE SAID HE DIDN'T KNOW ABOUT MODIFICATIONS. 16:40:38 WE'VE SINCE LEARNED THAT BP APPROVED MOD IF I KAGDS DESPITE 16:40:42 BEING WARNED THAT IT WOULD REDUCE THE SAFETY OF THE BLOWOUT 16:40:46 PREVENTER. I WOULD LIKE TO DISPLAY IT AGAIN 16:40:48 AND THIS IS TAB NUMBER TEN RIGHT IN THE BOOK RIGHT THERE. 16:40:51 HERE'S A LETTER FROM 2004 FROM TRANSOCEAN SENT TO BP THAT BP 16:40:55 SIGNED AND ACKNOWLEDGED AND IT SAYS, BP ACKNOWLEDGES THAT THE 16:41:00 CONVERSION AND THE CONVERSION YOU ASKED FOR, THE CONVERSION 16:41:03 WILL REDUCE THE BUILT-IN REDUNDANCY OF THE BOP THEREBY 16:41:08 POTENTIALLY UNCREASING THE CONTRACTOR'S RISK PROFILE. 16:41:12 SO -- WHAT DOES THAT MEAN? BP, THAT YOU REDUCE THE 16:41:18 BUILDOUT -- YOU REDUCE THE BUILT-IN REDUNDANCY TO INCREASE 16:41:23 YOUR RISK. YOU ASKED FOR MODIFICATIONS 16:41:26 WHICH LIMITED THE REDUNDANCY AND INCREASED YOUR RISK, RIGHT? 16:41:32 BP DID. AGAIN, I HAVEN'T SEEN THIS 16:41:33 DOCUMENT PREVIOUSLY. WHAT I DO KNOW THERE WERE 16:41:36 MODIFICATIONS MADE TO THE BLOWOUT PREVENTER. 16:41:39 IN PARTICULAR, A TEST BORE RAM WAS ADDED. 16:41:44 IT WAS NOT A SUBTRACTION. IT WAS AN ADDITION TO THE 16:41:47 BLOWOUT PREVENTER IS MY UNDERSTANDING. 16:41:50 HERE'S OUR PROBLEM. THIS IS THE ULTIMATE FAIL SAFE. 16:41:53 WE FIND OUT IT'S MODIFIED AND WE ASKED YOUR REPRESENTATIVE AND 16:41:57 MR. McKAY AND HE SAYS NO, NO. WE GET DOCUMENTS SHOWING BP 16:42:01 ASKED FOR IT. BP WAS WARNED THAT THE ULTIMATE 16:42:04 FAIL SAFE SYSTEM, THE WAY BP WANTED IT AND MODIFIED WILL 16:42:07 INCREASE THE RISK OF A PROBLEM, AND THAT'S THE ONE WE HAVE HERE 16:42:11 IN DEEPWATER HORIZON. SO HOW CAN WE WRITE AN 16:42:14 EDITORIAL? YOU CAN'T HAVE IT BOTH WAYS 16:42:16 HERE. HOW CAN WE WRITE AN EDITORIAL 16:42:18 SAYING THIS IS THE ULTIMATE SYSTEM AND EVEN YOUR OWN 16:42:21 ENGINEERS SAY THERE ARE 260 DIFFERENT WAYS IT CAN FAIL AND 16:42:23 THEN YOU ADD MORE TO IT. GO AHEAD. 16:42:28 THE BLOWOUT PREVENTER IS DESIGNED TO BE THE FAIL SAFE 16:42:32 MECHANISM IN THE INDUSTRY. CORRECT. 16:42:34 THAT HAS BEEN THE CASE SINCE -- SINCE THE BLOWOUT 16:42:38 PREVENTERS WERE CREATED. BUT YOU'RE THE CEO AND YOU'VE 16:42:42 BEEN HEAD OF EXPLORATION AND DRILLING AND ALL THIS. 16:42:44 DOES IT MAKE SENSE TO YOU THAT THIS IS THE ULTIMATE FAIL SAFE 16:42:47 SYSTEM WHEN THERE ARE 260 DIFFERENT WAYS IT CAN GO WRONG, 16:42:51 PLUS YOUR COMPANY MODIFIES IT WHICH INCREASES THE RISK OF 16:42:55 THINGS GOING WRONG? THE FACT IS THAT IT IS THE 16:42:58 ULTIMATE FAIL SAFE MECHANISM. LET ME ASK YOU THIS. 16:43:01 IN NOVEMBER, OKAY, THIS WELL YOU STARTED DRILLING IT LAST FALL, 16:43:07 THE MACONDO WELL LAST FALL USING THE RIG. 16:43:11 IT WAS HARMED. IT WAS DAMAGED IN THE HURRICANE. 16:43:13 SO YOU REPLACED IT WITH DEEPWATER HORIZON. 16:43:16 IN NOVEMBER OF LAST YEAR, TRANSOCEAN PULLED OUT THE 16:43:20 BLOWOUT PREVENTER FROM THE OCEAN FLOW BECAUSE ITS SHEAR RAMS 16:43:25 WEREN'T WORKING. THE LOWER AN YOU WILL AR WOULD 16:43:30 NOT CLOSE AND THE UPPER AN NEWELL AR WAS NOT IN A 16:43:36 WELL-CONTROLLED EVENT. WE KNOW BP WAS AWARE OF THIS 16:43:38 BECAUSE TRANSOCEAN AND IT'S DOCUMENT NUMBER 12 IN OUR BINDER 16:43:41 REFLECTS CONFERENCE CALLS ABOUT THE PROBLEMS WITH BP WITH THE 16:43:45 BLOWOUT PREVENTER. TRANSOCEAN ESTIMATES THAT THE 16:43:50 ESTIMATED IS A CONSERVATIVE TEN DAYS AT 444,111 PER DAY OR $4.4 16:44:00 MILLION AS IT'S SHOWN. SO HOW CAN YOU SAY BLOWOUT 16:44:04 PREVENTERS ARE FAIL SAFE DEVICES WHEN THE BLOWOUT PREVENTER THAT 16:44:07 YOU WERE USING IN NOVEMBER HAD TO BE REMOVED BECAUSE OF 16:44:11 MALFUNCTION? OF COURSE, THE ANSWER IS THEY 16:44:13 ARE THE FAIL SAFE MECHANISM AND WHEN PROBLEMS ARE IDENTIFIED 16:44:18 WITH THEM THEY'RE EXERCISED AND I BELIEVE THAT IS WHAT HAD TAKEN 16:44:22 PLACE. BUT, YOU KNOW -- YOU CAN'T 16:44:27 HAVE IT BOTH WAYS HERE. THIS ACCIDENT OCCURS. 16:44:30 YOU HAVE A BLOWOUT PREVENTER THAT YOU KNOW HAD 260 DIFFERENT 16:44:34 ERRORS IN IT AND YOU MODIFY IT AND YOU PULL IT IN NOVEMBER 2009 16:44:38 AND YOU SEE ALL KINDS OF PROBLEMS. 16:44:42 THIS HAPPENED HAPPENS. YOU WRITE THIS EDITORIAL IN THE 16:44:44 WALL STREET JOURNAL SAYING IT'S NOT OUR FAULT. 16:44:47 IT'S MECHANICAL. YOU SAID EARLIER AND THIS 16:44:49 ACCIDENT IS BECAUSE OF MECHANICAL FAILURE IN HUMAN 16:44:53 ERROR. IT SEEMS WE HAVE MORE HUMAN 16:44:55 ERROR THAN MECHANICAL BECAUSE THE MECHANICAL SAFEGUARD WASN'T 16:45:01 THE ULTIMATE FAIL SAFE. THEY CAN FAIL IN MANY WAYS AND 16:45:03 THAT'S EXACTLY WHAT WENT WRONG HERE AND THAT'S EXACTLY WHAT 16:45:07 HAPPENED ON THE 20th, CORRECT? WHAT IS CLEAR IS THE ULTIMATE 16:45:12 FAIL SAFE FAILED TO OPERATE IN THIS CASE. 16:45:14 THAT IS ABSOLUTELY CLEAR. WHY WOULD A COMPANY LIKE BP 16:45:18 WHEN DOING THE DEEP WATER DRILLING MODIFY THE FAIL SAFE IF 16:45:21 IT'S SUPPOSED TO PROTECT THE AMERICAN PEOPLE AND OUR 16:45:24 ENVIRONMENT, WHY WOULD YOU MODIFY IT AND INCREASE THE RISK 16:45:27 OF PROBLEMS? YOU MODIFIED IT AND THE 16:45:31 CONTRACTOR WARNED YOU ABOUT MODIFYING IT AND YOU STILL DID 16:45:35 IT. THAT'S THE PROBLEM WE'RE HAVING. 16:45:36 AS I SAID, THE BLOWOUT PREVENTER IS THE FAIL SAFE 16:45:40 MECHANISM. IT'S DESIGNED TO BE EXACTLY 16:45:41 THAT. QUESTIONS, MR. BRIDGES? 16:45:47 THANK YOU, MR. CHAIRMAN. MR. HAYWARD, IT'S BEEN A LONG 16:45:50 DAY. YOU SAID EARLIER, IF I RECALL 16:45:54 CORRECTLY, THAT EVERYONE IN YOUR ORGANIZATION IN THE CULTURE OF 16:45:59 SAFETY WOULD NOT ONLY HAD THE RIGHT TO CURTAIL OPERATIONS, BUT 16:46:04 THE OBLIGATION IF THEY SAW SOMETHING GOING ON THAT WAS NOT 16:46:08 SAFE, IS THAT CORRECT? THAT'S CORRECT. 16:46:10 AND IN RESPONSE TO A QUESTION FROM THE OTHER SIDE OF THE SIDE 16:46:15 AND I DON'T REMEMBER WHO ASKED IT, YOU ALSO MADE THE ASSERTION 16:46:18 THAT THE RIGHT PEOPLE WERE MAKING THE DECISIONS ON THE RIG. 16:46:22 DID I HEAR THAT CORRECTLY? BELIEVE THAT IS THE CASE. 16:46:24 WHO IS DONALD VEDRIN? HE'S THE -- HE'S THE WELL 16:46:31 SITE LEADER ON ONE -- ONE OF THE WELL SITE LEADERS ON THE 16:46:37 DEEPWATER HORIZON. HE WAS REFERRED TO IN A "WALL 16:46:41 STREET JOURNAL ARTICLE" AS THE COMPANY MAN ON THE DEEPWATER 16:46:46 HORIZON ON THE DAY OF THE BLOWOUT, CORRECT? 16:46:48 THAT'S CORRECT, YES. I DON'T KNOW IF YOU'RE 16:46:50 FAMILIAR WITH THE ARTICLE IN "THE WALL STREET JOURNAL" AND 16:46:54 THIS WAS MAY 27th, I BELIEVE, THEY TALKED ABOUT A SKIRMISH 16:46:57 BETWEEN SOME OF THE TRANSOCEAN FOLKS AND THE CHIEF ENGINEER OR 16:47:01 CHIEF MECHANIC ON THE DEEPWATER HORIZON AND THE RIG'S TOP 16:47:06 MANAGER, JIMMY HERALD, ARE YOU FAMILIAR WITH THAT DISCUSSION 16:47:11 THAT APPARENTLY WAS QUITE A HEATED DISCUSSION. 16:47:15 I THINK MR. GONZALEZES WAS ACTUALLY THE ONE THAT BROUGHT IT 16:47:18 UP. IT IS MY UNDERSTANDING, 16:47:21 CONGRESSMAN, THAT THAT ACCOUNT HAS BEEN CONTRADICTED UNDER OATH 16:47:25 ON THE MARINE BOARD INVESTIGATION AND THAT THERE WAS 16:47:27 NO DEBATE OR SKIRMISH OR ANY OTHER HEATED DISCUSSION. 16:47:33 THAT IS WHAT I CAN'T RECALL EXACTLY WHO IT WAS, BUT UNDER 16:47:36 OATH, AT THE MARINE BOARD INVESTIGATION, I BELIEVE IT WAS 16:47:40 THE TRANSOCEAN THAT TESTIFIED THAT THERE WAS NO EITHER HEATED 16:47:44 DISCUSSION OR DEBATE OR ANYTHING ELSE. 16:47:47 THAT WOULD BE THE TOOL PUSHER? 16:47:49 I BELIEVE THAT'S THE CASE. IT WASN'T DEWEY RIVET BECAUSE 16:47:54 HE DIED IN THE ACCIDENT AND HE WAS ONE OF THE OTHER WITNESSES 16:47:58 TO THE ALTERCATION. WELL, YOU KNOW, IF THIS OCCURRED 16:48:05 EVEN IF IT ONLY PARTIALLY OCCURRED IT SEEMS THAT THERE WAS 16:48:09 ENOUGH DISCUSSION THAT SOMEONE SAID WAIT, LET'S NOT GO FORWARD 16:48:14 BECAUSE SOME OF OUR NUMBER FEEL IT'S UNSAFE AND AGAIN, YOU SAID 16:48:17 THAT THE MAN WOULD HAVE THE OBLIGATION, NOT JUST THE RIGHT 16:48:20 TO SAY LET'S HALT. HE'D HAVE THE OBLIGATION TO SAY, 16:48:24 WELL, LET'S GET EVERYONE ON THE SAME PAGE WITH THIS. 16:48:26 AM I WRONG TO ASSUME THAT? YOU ARE NOT WRONG, AND I 16:48:30 THINK YOU CAN ONLY CONCLUDE THEY ALL BELIEVE THAT IT WAS RIGHT TO 16:48:32 PROCEED. ARE WE EVER GOING TO GET A 16:48:35 CHANCE TO TALK TO MR. VEDRIN? WOULD BP MAKE HIM AVAILABLE TO 16:48:43 OUR COMMITTEE? IF YOU CALL HIM, OF COURSE. 16:48:46 LET ME ASK YOU ANOTHER QUESTION. 16:48:47 YOU SAID IN RESPONSE TO SOME INFORMATION THAT CAME UP THAT 16:48:50 THERE WAS NO EVIDENCE THAT BP WAS FOCUSING ON THE COST OF 16:48:58 DRILLING AND MARCH 2010 STRATEGY PRESENTATION YOU STATED THAT WE 16:49:05 ADDED EXPLORATION RESOURCES EFFICIENTLY AND OUR COST WAS 16:49:08 $1.40 PER BARREL IN 2009. THIS IS CONSISTENT WITH OUR 16:49:11 TRACK RECORD OVER THE LAST FIVE YEARS OF HAVING THE LOWEST 16:49:15 DISCOVERY COSTS IN THE INDUSTRY. CERTAINLY THAT WOULD BE ENVIABLE 16:49:19 EXCEPT IN A CULTURE OF SAFETY, I MEAN, I MIGHT SPEND $1.45 OR 16:49:26 $1.47 INSTEAD OF THEIR 1.40 IF IT MEANT THAT IT WAS A SAFE 16:49:31 PROCEDURE. SO WAS MAINTAINING THE LOWEST 16:49:33 COST DISCOVERY IN THE INDUSTRY POSSIBLY A FACTOR IN THE 16:49:37 DECISION MAKING ON THIS WELL? NONE WHATSOEVER. 16:49:40 THAT METRIC IS CREATED BY DECIDING THE HOLLUMS OF BARRELS 16:49:48 DISCOVERED BY THE COST AND WHAT IT TALKS TO IS WHAT WE 16:49:55 DISCOVERED AND NOT ANYTHING TO DO WITH COSTS. 16:49:57 WELL, BUT IT DOES HAVE SOMETHING TO DO WITH COSTS. 16:50:01 IT'S BEEN REPORTED THAT COMPLETION OF THE MANCODO WELL 16:50:13 WAS RUNNING BEHIND SCHEDULE. IT WAS RUNNING BEHIND 16:50:14 SCHEDULE. HOW FAR BEHIND SCHEDULE? 16:50:16 I DON'T KNOW THE NUMBER. WHAT DOES IT COST? 16:50:19 PROBABLY $1 MILLION A DAY OR THERE ABOUTS. 16:50:24 EACH A COUPLE A DAY IS A COST DRIVER ON THAT $1.40 A BARREL 16:50:29 MINIMAL DISCOVERY COST IN THE INDUSTRY. 16:50:31 WITH RESPECT, CONGRESSMAN, THE MOST IMPORTANT THING WAS 16:50:35 THAT ACTUALLY WE MADE A DISCOVERY AND WE WANTED TO 16:50:38 SECURE IT IN THE PROPER WAY AND THAT WAS GOING TO BE A FAR 16:50:41 BIGGER DRIVER OF ANYTHING, ANY VALUE THAT THE COMPANY IS GOING 16:50:45 TO CREATE THAN CREATE THAN THE COSTS OF THE OPERATION. 16:50:47 I DON'T DISAGREE -- I DON'T DISAGREE WITH THAT, BUT OH, HOW 16:50:51 I WISH THAT HAD BEEN THE CASE, AS WE'RE, HEARING AFTER HEARING 16:50:57 AND THE DARN THING IS STILL BUBBLING DOWN AT THE BOTTOM OF 16:51:00 THE GULF. THAT DOESN'T SEEM TO BE 16:51:02 ACCURATE. IS YOUR OWN INVESTIGATION 16:51:04 LOOKING AT THE ISSUE OF WHETHER OR NOT COST DRIVERS WERE AN 16:51:09 ISSUE IN THE PROBLEMS THAT WERE CREATED? 16:51:12 OUR INVESTIGATION IS COVERING EVERYTHING. 16:51:17 SO IT WASN'T ON YOUR LIST BUT NEVERTHELESS, IT WILL BE 16:51:20 INCLUDED IN YOUR -- WELL, MY LIST IS THE -- THE 16:51:26 EARLY FINDINGS OF THE INVESTIGATION IN TERMS OF THE 16:51:29 KEY AREAS TO FOCUS ON. AREAS AROUND CEMENT, CASING, 16:51:40 INTEGRAL PROCEDURES. I GOT IT. 16:51:42 WHEN YOU SAID YOUR INVESTIGATION WAS PROCEEDING WITHOUT PRIVILEGE 16:51:45 EARLY ON IN THE HEARING TODAY IT WOULD ALSO COVER ISSUES OF 16:51:48 WHETHER OR NOT COST DRIVERS WERE AN ISSUE IN CREATING THE 16:51:51 PROBLEM? IT WILL COVER EVERYTHING. 16:51:54 THANK YOU, MR. CHAIRMAN. I JUST ECHO WHAT MR. SCALISE 16:52:03 SAID EARLIER. PEOPLE HAVE CALL WITH IDEAS 16:52:06 THOUSAND FIX THE GULF. I WISH YOU'D OPEN UP AN 800 16:52:10 NUMBER AND TAKE THESE THINGS AND VENT THEM AND LISTEN TO WHAT 16:52:13 PEOPLE ARE SAYING. AMERICANS ARE TERRIBLY, 16:52:16 THEY'RE -- WE HAVE A LOT OF ENG N 16:52:24 INGENUITY AND PEOPLE ARE WATCHING, WHAT EVERYONE'S 16:52:27 COMMUTER SCREEN SHOWED, IT'S DRIVING PEOPLE CRAZY TO WATCH 16:52:30 THAT BUBBLING IN THE GULF. PEOPLE ARE COMING TO US WITH 16:52:33 SOLUTIONS IN RESPECT NEEDS TO BE A CENTRAL LOCATION. 16:52:36 I DON'T CARE WHETHER IT'S YOU, DR. CHU, BUT SOMEBODY NEEDS TO 16:52:40 BE VETTING THESE THINGS AND IF THERE IS A REASONABLE OUT THERE, 16:52:44 PUT IT TO WORK. THANK YOU. 16:52:47 MR. MARKEY FOR QUESTIONS. THANK YOU. 16:52:51 MR. HAYWARD, IS THE MOST OPTIMISTIC DAY FOR COMPLETION 16:52:55 STILL AUGUST? THAT IS CURRENT TIME TABLE. 16:52:58 IS AUGUST ALSO THE EARLIEST DATE THE LEAK CAN BE STOPPED? 16:53:02 OR WILL IT TAKE MORE TIME AFTER THE RELIEF WELL IS COMPLETE 16:53:06 BEFORE THE FLOW OF OIL IS PERMANENTLY HALTEDED? 16:53:09 THE RELIEF OIL WILL HALT PERMANENTLY THE FLOW. 16:53:14 MR. HAYWARD IN 2009, AND INDEPENDENT FIRM THAT BP HIRED 16:53:19 TO SERVE AS ITS OMBUDSMAN ED HEADED BY JUDGE STANLEY, 16:53:27 SUBSTANTIATED BP WAS VIOLATING ITS OWN POLICIES BY NOT HAVING 16:53:29 COMPLETED ENGINEERING DOCUMENTS ONBOARD ANOTHER BP RIG OPERATING 16:53:36 IN THE GULF OF MEXICO. THE BP ATLANTIS, WHEN IT BEGAN 16:53:42 OPERATING IN 2007. ONE BP OFFICIAL WARNED THAT THE 16:53:46 ABSENCE OF THE SAFETY DOCUMENTS COULD LEAD TO CATASTROPHIC 16:53:50 OPERATOR ERROR. LET ME READ TO YOU FROM AN 16:53:54 INTERNAL BP E-MAIL. AND THIS GOES FROM BARRY DUFF, 16:54:00 BP EMPLOYEE, TO OTHER ENGINEERS AT BP. 16:54:04 HERE WRAP HE SAID -- HE SAID, THE P AND IDs FOR SUB C 16:54:11 ARE NOT COMPLETE AND NOT APPROVED OR HANDED OBER TO 16:54:14 OPERATIONS. THE CURRENT PROCEDURES ARE OUT 16:54:17 OF DATE. THE RISK IN TURNING OVER 16:54:21 DRAWINGS TO THE PEOPLE OUT ON THE RIG RUNNING THE ATLANTIS 16:54:26 THAT ARE NOT COMPLETE ARE, NUMBER ONE, THE OPERATOR, THE BP 16:54:30 OPERATOR, WILL ASSUME THE DRAWINGS ARE ACCURATE AND 16:54:34 UP-TO-DATE. THIS COULD LEAD TO CATASTROPHIC 16:54:38 OPERATOR ERRORS DUE TO THEIR ASSUMING THE DRAWING IS CORRECT. 16:54:42 TURNING OVER INCOMPLETE DRAWINGS TO THE OPERATOR, THE BP R 16:54:45 OPERATOR, FOR THEIR USE IS A FUNDAMENTAL VIOLATION OF BASIC 16:54:52 DOCUMENT CONTROL. HAVING THE PROJECT DOCUMENT 16:54:55 CONTROL PERSON TURN OVER DRAWINGS THAT ARE NOT COMPLETE 16:54:59 PLACES THE ONUS ON HER, THAT THEY ARE THE MOST CURRENT 16:55:03 VERSION CURRENTLY THERE ARE HUNDREDS IF NOT THOUSANDS OF SUB 16:55:08 C DOCUMENTS THAT HAVE NEVER BEEN FINALIZED, YET THE FACILITIES 16:55:14 HAVE BEEN TURNED OVER. MR. HAYWARD, BP'S MANAGING 16:55:20 ATTORNEY STATED TO THE ASSOCIATED PRESS ON MAY 15th OF 16:55:23 THIS YEAR THAT BP HAS REVIEWED THE ALLEGATIONS AND FOUND THEM 16:55:27 TO BE UNSUBSTANTIATED. MR. HAYWARD, WERE ALL OF THE 16:55:32 ENGINEERING DOCUMENTS AND DRAWINGS NECESSARY TO OPERATE 16:55:35 THE ATLANTIS RIG SAFELY AND FULLY COMPLETED BEFORE THE 16:55:42 ATLANTIS RIG BEGAN OPERATING IN THE GULF OF MEXICO? 16:55:44 WHEN THIS ISSUE EMERGED, WE CONDUCTED A FULL INVESTIGATION, 16:55:47 AND DETERMINED THAT ALL OF THE DRAWINGS THAT WERE NECESSARY TO 16:55:53 START UP THE OPERATION WERE AVAILABLE TO THE PEOPLE STARTING 16:55:57 UP THE OPERATION AT THE TIME THE OPERATION STARTED UP. 16:56:00 MR. HAYWARD, MR. DUFF WAS RELIEVED OF HIS DUTIES IN THE 16:56:06 MIDDLE OF AUGUST OF 2008. A NEW PERSON WAS PUT IN CHARGE 16:56:11 AS A RESULT. HIS NAME IS KEN ABBOTT. 16:56:15 KEN ABBOTT HAS BEEN TESTIFYING ALL DAY IN WASHINGTON ACROSS THE 16:56:18 STREET IN THE NATURAL RESOURCES COMMITTEE. 16:56:21 SHEA WHISTLE-BLOWER. HE GOT FIRED SIX MONTHS AFTER HE 16:56:29 REPLACED MR. DUFF BECAUSE HE RAISED THE VERY SAME CONCERNS, 16:56:32 THAT THERE WAS NOT PROPER DOCUMENTATION ON THE BP 16:56:35 ATLANTIS. HE WAS FIRED. 16:56:41 EVEN THOUGH HE RAISED ISSUES THAT OBVIOUSLY HAVE A LOT OF 16:56:46 RESEMBLANCE TO THE KIND OF ATTENTION TO THE SAFETY 16:56:51 PROTOCOLS THAT WERE PART EVER THE BP HORIZON RIG. 16:56:54 IS IT PART OF YOUR POLICY, MR. HAYWARD, TO FIRE EMPLOYEES WHO 16:57:02 RAISE QUESTIONS ABOUT THE SAFETY OF YOUR RIGS? 16:57:04 NO, IT IS NOT. WELL, MR. HAYWARD, I'M AFRAID 16:57:09 THAT THAT'S WHAT HAPPENED TO MR. ABBOTT. 16:57:12 BECAUSE NOT ONLY WAS HE FIRED, BUT TWO WEEKS LATER, THEY PUT 16:57:16 OUT, AND WAS TOLD THAT HE WAS JUST PART OF A FORCE REDUCTION, 16:57:20 BUT YOUR COMPANY THEN PUT OUT AN ADVERTISEMENT TO HIRE SOMEONE, 16:57:24 TO REPLACE HIM ON THAT JOB. EARLIER YOU SAID ALL OF THE 16:57:30 OTHER BP WELLS IN THE GULF OF MEXICO, THAT HAD BEEN COMPLETED 16:57:36 ARE SECURE AND ARE SAFE TO OPERATE. 16:57:39 DO YOU STILL STAND BY THAT? I DO. 16:57:42 NOW, DO YOU KNOW THAT JUDGE SPORKIN SAID THAT IT IS NOT TRUE 16:57:47 THAT THE DOCUMENTS WERE COMPLETED WHEN HE SUBSTANTIATED 16:57:52 MR. ABBOTT'S ALLEGATIONS? SO HOW DO YOU ACCOUNT FOR THAT, 16:57:56 IF YOU HIRE AN OMBUDSMAN, HE'S A FORMER FEDERAL DISTRICT COURT 16:58:00 JUDGE, HE COMES IN. HE DOES THE EVALUATION AND HE 16:58:05 SUBSTANTIATES THE WHISTLE-BLOWER'S ALLEGATIONS. 16:58:07 HOW DO YOU IN ANY WAY JUSTIFY THEN FIRING THE PERSON WHO 16:58:13 ACTUALLY BROUGHT THESE ISSUES TO YOUR ATTENTION? 16:58:16 AS I SAID, THE INVESTIGATION CONCLUDED THAT THE DRAWINGS 16:58:21 NECESSARY FOR START-UP WERE ON THE ATLANTIS FACILITY JUST 16:58:29 LOOKING AT OUR OMBUDSMAN IS INVESTIGATING THE ISSUE OF 16:58:33 UNFAIR DISMISSAL, WHICH IS QUITE APPROPRIATE. 16:58:36 WELL, I ASK FOR TO YOU PROVIDE A COPY OF THE 16:58:40 INVESTIGATION, WHICH YOU'RE CONDUCTING, MR. HAYWARD. 16:58:44 FOR THE RECORD. WE CAN DO THAT. 16:58:45 OKAY. WE WILL PUT THAT IN THE RECORD. 16:58:47 I THINK, MR. HAYWARD, THAT THE ONLY THING WORSE THAN ONE BP RIG 16:58:55 AT THE BOTTOM OF THE OCEAN IN THE GULF OF MEXICO WOULD BE TWO 16:58:59 BP RIGS AT THE BOTTOM

Freight train crash in Ayrshire; SCOTLAND: Ayrshire: Nr Stewarton: EXT ON-SCREEN TECHNICAL INFORMATION AIR VIEWS / AERIALS Derailed BP freight train on fire END ON-SCREEN TECHNICAL DETAILS Firefighters using hose to douse flames ON-SCREEN TECHNICAL INFORMATION AIR VIEWS / AERIALS of burning rail carriages / damaged power lines / overturned rail trucks

David Cameron visit: day 2: Afghanistan and BP dominate the agenda; LIB (TX 20.8.2009) SCOTLAND: Inverclyde: Greenock Prison: EXT Police van carrying Abdelbaset Al Megrahi leaving prison with police escort

The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 16:00:00 IT'S THE ULTIMATE FAIL SAFE AND I KNOW YOU KEEP USING THAT TERM 16:00:02 AND IT COMES BACK TO WHAT HAUNTS YOU, BUT I AM CURIOUS ABOUT 16:00:06 BLOWOUT PREVENTERS AND THE DIFFERENCE, AND I WAS NOTICING 16:00:11 MY STAFF AS THEY GAVE US INFORMATION. 16:00:14 YOU HAVE A 10,000 POUND PER SQUARE INCH BLOWOUT PREVENTER, 16:00:19 SHALLOW WATER, 10,000 POUNDS PER SQUARE INCH. 16:00:24 DEEPWATER, 10,000 POUNDS PER SQUARE INCH. 16:00:28 NOW I'M NOT AN EXPERT. WHY? 16:00:31 WHAT'S THE DIFFERENCE AS YOU GO INTO DEPTH? 16:00:33 WHY A GREATER CAPACITY? BECAUSE OF THE PRESSURE OF 16:00:37 THE RESERVOIRS THAT WE'RE DRILLING. 16:00:39 WHICH THEN LEADS ME TO A LOGICAL -- WHAT DO YOU THINK 16:00:42 YOU'RE DEALING WITH AT THAT DEPTH? 16:00:45 WE KNOW -- AS FAR AS POUNDS PER SQUARE 16:00:48 INCH? WE KNOW THAT WE'RE DEALING 16:00:51 WITH A RESERVOIR WITH THE PRESSURE OF AROUND BETWEEN 16:00:56 11,000 AND 12,000 POUNDS PER INCH AND WE HAVE A BLOWOUT 16:01:00 PREVENTER RATED FOR 15,000 POUNDS PER SQUARE INCH. 16:01:03 I BELIEVE THAT'S CORRECT. OKAY. 16:01:05 CAMERON -- I DON'T KNOW IF IT'S CAMERON THAT BUILDS THESE 16:01:10 BLOWOUT PREVENTERS. THAT'S A COMPANY THAT SOMEONE 16:01:12 TOLD ME THAT'S -- AND THEY'RE WORKING ON A 20,000 POUND PER 16:01:17 SQUARE INCH PREVENTER. YOU'RE AWARE OF THAT? 16:01:19 I AM, YES. AND THEY ACTUALLY SAID THIS, 16:01:23 WHILE THERE'S MUCH DISCUSSION AND AN ONGOING EFFORT TO PROVIDE 16:01:26 GUIDANCE FOR EQUIPMENT GREATER THAN 15,000 POUNDS PER SQUARE 16:01:30 INCH, IN THE INTEREST OF EXPEDIENCY, IT WAS DECIDED 16:01:35 WITHIN CAMERON TO APPLY CURRENT DESIGN CODES AND PRACTICES. 16:01:40 THE 20,000 POUNDS PER SQUARE INCH EVO BLOWOUT PREVENTER WAS 16:01:46 DESIGN, TESTED AND QUALIFIED FOR API AND I'M NOT SURE WHAT ALL OF 16:01:50 THAT MEANS. MEANING BASICALLY, BUT FOR THE 16:01:52 SAKE OF EXPEDIENCY DOES CONCERN ME. 16:01:55 WHY ARE YOU ALL LOOKING AT 20,000 POUNDS PER SQUARE INCH 16:01:59 WHEN YOU BELIEVE WHAT YOU ALREADY HAVE AT 15,000 EXCEEDS 16:02:03 WHAT YOU REALLY -- IS REQUIRED? I'M NOT CERTAIN, BUT I THINK 16:02:09 THAT'S REFERRING TO THE BLOWOUT PREVENTERS FOR RESERVOIRS WITH 16:02:13 EVEN GREATER PRESSURE. I DO BELIEVE THAT ONE OF THE 16:02:16 MOST IMPORTANT THINGS TO COME FROM THIS INCIDENT IS THE 16:02:21 REQUIREMENT FOR THE INDUSTRY TO STEP BACK AND REDESIGN THE FAIL 16:02:26 SAFE MECHANISM IT USES TO PREVENT ACCIDENTS. 16:02:29 WE NEED A FUNDAMENTAL REDESIGN OF THE BLOWOUT PREVENTER. 16:02:34 IT'S SOMETHING THAT BP IS GOING TO TAKE A VERY ACTIVE ROLE IN. 16:02:38 WE'VE ALREADY BEGUN THAT PROCESS WITH A NUMBER OF ACADEMIC 16:02:45 INSTITUTIONS AND A NUMBER OF CONTRACTORS IN THE INDUSTRY. 16:02:49 AND I THANK THE GENTLEMAN FOR HIS PATIENCE. 16:02:51 MR. HAYWARD, WE USUALLY SAY BETTER LATE THAN NEVER, BUT NOT 16:02:55 THIS TIME. I YIELD BACK. 16:02:57 MR. GONZALEZ, BEFORE MR. ENSLEY. 16:03:05 HE SUBMITTED A CD AND A RESOLUTION FROM THE STATE 16:03:11 SENATE. HE WILL PROVIDE COPIES FOR THE 16:03:13 RECORD AND UNANIMOUS CONSENT WILL BE MADE PART OF THE 16:03:17 QUESTIONING AND WILL BE MADE PART OF THE RECORD WITHIN TEN 16:03:19 DAYS. WITHOUT OBJECTION. 16:03:20 SO ORDERED. MR. HENSLEY, QUESTIONS, 16:03:22 PLEASE. THANK YOU. 16:03:23 MR. HAYWARD, SOMETHING YOU SAID EARLIER WAS REALLY QUITE 16:03:29 ASTOUNDING TO ME. YOU SAID THERE WAS NO EVIDENCE 16:03:32 TO DATE THAT THERE HAD BEEN ANY DECISION MADE BASED ON COST, 16:03:37 THAT NO DECISION HIS BEEN MADE IN AN EFFORT TO REDUCE COST, AND 16:03:41 I WANT TO GO THROUGH THIS BECAUSE THERE'S SOMETHING I 16:03:44 THINK IS QUITE PIVOTAL THROUGH THE INVESTIGATION. 16:03:47 THE FACTS ARE CLEAR THAT YOU HIRED HALLIBURTON TO GIVE ADVICE 16:03:52 ON THIS. MR. GAGLIANO DID ANALYSIS AND 16:03:56 CONCLUDED YOU NEEDED 21 CENTRALIZERS TO MAKE SURE THAT 16:03:59 THIS RIG WAS SAFE AND JUST TO RELIEF ANY DOUBT AS TO WHY 16:04:03 THAT'S IMPORTANT, THE AMERICAN PETROLEUM INSTITUTE RECOMMENDED 16:04:07 PRACTICE 65 SAYS, QUOTE, IF CASING IS NOT CENTRALIZED IT MAY 16:04:12 LAY NEAR OR AGAINST THE BORE HOLE WALL, AND IT IS NOT, IF 16:04:24 CASING IS POORLY CENTRALIZED. THIS RELIES ON BYPASSED MUD 16:04:29 CHANNELS AND INABILITY TO ACHIEVE ZONAL ISOLATION, CLOSED 16:04:32 QUOTE. THE EXPERT SAID YOU NEED 21. 16:04:34 THEN, AND IF WE CAN PUT UP THE FIRST SLIDE, A BP EMPLOYEE 16:04:38 ESSENTIALLY WROTE TO THAT EXPERT AND SAID WE ONLY HAVE SIX, AND 16:04:41 WE DON'T HAVE TIME TO DEAL WITH THIS PROBLEM. 16:04:46 THE TIME TO BRITISH PETROLEUM WAS MONEY. 16:04:48 THIS RIG WAS 45 DAYS LATE. IT COST YOU $500,000 A DAY AND 16:04:53 PEOPLE'S OBVIOUS ATTENTION WERE ABOUT TIME WHICH MEANT MONEY. 16:04:55 SO WHAT HAPPENED THEN? WELL, ANOTHER BRITISH PETROLEUM 16:05:02 PERSON SENT A MEMO SAYING WE REALLY NEEDED TO FOLLOW THE 16:05:05 MODEL HERE. HE KICKED IT UP TO MR. GUIDE. 16:05:08 IF WE COULD HAVE THE SECOND SLIDE, MR. GUIDE CAME BACK AND 16:05:12 SAID I DON'T LIKE THE FACT THAT THIS WILL TAKE TEN HOURS TO DO, 16:05:15 EVEN THOUGH ANOTHER BRITISH PETROLEUM PERSON SAID WE'LL FLY 16:05:18 15 THINGS IN. THEY CAN BE HERE TOMORROW 16:05:22 MORNING. MR. GUIDE SAID I DON'T LIKE THE 16:05:24 TEN HOURS, AND IT DIDN'T HAPPEN, AND THEN THE NEXT RESPONSE FROM 16:05:30 BRITISH PETROLEUM, NEXT SLIDE PLEASE WAS FROM AN E-MAIL FROM 16:05:36 MR. COKALAS REPRIMANDING ANOTHER BP PERSON FROM SAYING EVEN 16:05:41 THOUGH THE HOLE IS PERFECTLY STRAIGHT, EVEN INTENTION WILL 16:05:46 NOT SEEK THE PERFECT TENSION OF THE HOLE MEANING YOU'VE GOT TO 16:05:50 HAVE THE RIGHT CENTRALIZER, AND HE WENT ON TO SAY THIS. 16:05:53 WHO CARES? IT'S DONE. 16:05:55 END OF STORY. WE'LL PROBABLY BE FINE AND WE'LL 16:05:58 GET A GOOD CEMENT JOB. WHAT HAPPENED THEN THAT'S NOT 16:06:00 QUITE THE END OF THE STORY. MR. GAGLIANO RAN FURTHER 16:06:05 COMPUTER MODELS AND HE CONCLUDED, AND THIS IS HARD TO 16:06:09 READ, BUT I'LL READ IT. HE CONCLUDED THAT THIS WELL IS 16:06:13 CONSIDERED TO HAVE A SEVERE AND SEVERE IS ALL CAPITALIZED IN HIS 16:06:19 MEMO, GAS FLOW PROBLEM. NOW, IT'S VERY CLEAR TO ME 16:06:23 READING THIS CLEAR EVIDENCE THAT, IN FACT, DECISIONS WERE 16:06:28 MADE BECAUSE OF COST, BECAUSE PEOPLE DIDN'T WANT TO WAIT TO 16:06:32 GET THE CENTRALIZERS TO GET WHAT IS NEEDED TO SAFELY DO THIS JOB. 16:06:37 SO YOUR STATEMENT THAT THERE IS NO EVIDENCE THAT COSTS LED TO 16:06:41 SHORTCUTS JUST DOESN'T RING TRUE WITH ME. 16:06:43 ISN'T IT PRETTY CLEAR THAT THERE WERE COST DECISIONS MADE THAT 16:06:51 HAD SUB-OPTIMAL, AT BEST, NUMBER OF CENTRALIZERS IN PLACEMENT IN 16:06:54 THIS WELL? IT WILL BE MORE DIFFICULT, 16:07:03 BUT I GENUINELY BELIEVE THAT UNTIL WE'VE UNDERSTOOD ALL OF 16:07:07 THE THINGS THAT CONTRIBUTED TO THIS ACCIDENT, IT'S NOT EASY TO 16:07:14 SAY. WHAT I WOULD SAY, IF THERE IS 16:07:18 EVIDENCE, THAT COSTS WERE PUT AHEAD OF SAFETY. 16:07:22 I WOULD BOTH BE DEEPLY DISTURBED AND WE WOULD TAKE ACTION. 16:07:27 LET ME ASK YOU ABOUT THAT ACTION. 16:07:29 EVERYONE IN THE ROOM KNOWS ROADING THESE E-MAILS. 16:07:32 ARE YOU GOING TO CALL THE EMPLOYEES INVOLVED WHEN YOU 16:07:35 LEAVE THIS MEETING AND SAY, BECAUSE YOU'RE DRILLING IN 16:07:38 PLACES ALL OVER THE WORLD RIGHT NOW. 16:07:40 THIS IS AN ONGOING OPERATION AND TELL THEM THEY'VE GOT TO CHANGE 16:07:44 THEIR ATTITUDE. ARE YOU GOING TO TAKE ACTION 16:07:46 BASED ON THESE E-MAILS TODAY? WE WILL TAKE ACTION BASED ON 16:07:50 OUR INVESTIGATION WHICH PUTS ALL OF THIS TOGETHER AND AS IT 16:07:57 UNVEILS CLEAR CONCLUSIONS, WE WILL TAKE ACTION ON THEM. 16:08:00 LET ME SUGGEST ANOTHER ACTION. 16:08:04 WE ASKED BRITISH PETROLEUM WHAT IT SPENT ON RESEARCH AND 16:08:08 DEVELOPMENT REGARDING SAFER OFFSHORE DRILLING TECHNOLOGIES. 16:08:13 YOU GAVE US THE NUMBER. IT WAS ABOUT $10 MILLION A YEAR. 16:08:17 THAT REPRESENTS .0033%. .0033% OF BRITISH PETROLEUM 16:08:27 REVENUES. THAT DOESN'T SOUND LIKE AN 16:08:29 ADEQUATE PRIORITIZATION. HOW DOES IT COMPARE TO YOUR 16:08:32 COMPENSATION? IN WHAT RESPECT? 16:08:39 BRITISH PETROLEUM IS INVESTING ABOUT $10 MILLION A 16:08:43 YEAR IN SAFER DRILLING TECHNOLOGY. 16:08:46 HOW DOES THAT $10 MILLION A YEAR COMPARE TO YOUR COMPENSATION 16:08:50 NEXT YEAR, FOR INSTANCE? MY COMPENSATION LAST YEAR WAS 16:08:53 $6 MILLION. FORBES REPORTS THAT AT $33. 16:08:59 IS THERE A MISUNDERSTANDING? STOCK OPTIONS DON'T COUNT? 16:09:02 MY COMPENSATION LAST YEAR I THINK WAS RECORDED AT $6 16:09:06 MILLION. DO YOU THINK. 16:09:07 DO YOU THINK BRITISH PETROLEUM OUGHT TO MAKE A LARGER 16:09:11 INVESTMENT OF SIGNIFICANT GROSS REVENUES IN DEVELOPING SAFER 16:09:14 DRILLING TECHNOLOGY AND DO YOU THINK YOU OWE THAT TO THE 16:09:16 AMERICAN PEOPLE AT THIS POINT? TO BE HONEST, YES. 16:09:19 AND WE UNDOUBTEDLY WILL DO THAT ON THE BACK OF THIS ACCIDENT. 16:09:22 WE HOPE THAT THAT WILL BE EXPEDITIOUS AND SUCCESSFUL. 16:09:25 THANK YOU. THANK YOU, MR. HENSLEY. 16:09:33 QUESTIONS PLEASE. THANK YOU, MR. CHAIRMAN. 16:09:37 I APPRECIATE IT. MR. HAYWARD, HOW MANY DEEP WATER 16:09:41 OPERATIONS DO YOU ALL HAVE, BP, AROUND THE WORLD? 16:09:44 HOW MANY RIGS THAT YOU OPERATE? I DON'T KNOW THE PRECISE 16:09:48 NUMBER, BUT IT'S PROBABLY THE ORDER OF 15 OR SO. 16:09:51 15 OR SO. IS THERE -- ONE OF THE THINGS 16:09:57 I'VE RUN INTO AND MR. SCOLESE ALLUDED TO IT, WE'VE HAD OVER 16:10:06 100 REQUESTS FOR SUBMISSIONS, PRODUCTS, IDEAS, CONSENTS AND 16:10:10 WAYS TO CAP THE WELLS, ET CETERA, ET CETERA. 16:10:15 BASICALLY AND, OF COURSE, BECAUSE OF ETHICS WE CAN'T AND 16:10:18 WON'T GO IN AND MAKE ANYBODY MEET WITH ANYBODY. 16:10:21 SO WE JUST REFER THEM IN TO THEM. 16:10:23 THE BEST I CAN TELL IS THAT MAYBE THREE OUT OF THE 600 PLUS 16:10:28 HAVE RECEIVED AN, MAIL E-MAIL BACK, THANK YOU FOR YOUR 16:10:36 SUBMISSION. THANK YOU FOR ANYTHING ELSE. 16:10:38 THERE SEEMS TO BE A CLOSED LOOP OF VENDORS THAT YOU'RE DEALING 16:10:43 WITH WHICH MY FRUSTRATION IS THAT THE HOLE IS STILL WIDE OPEN 16:10:49 AND WHEN THIS ACCIDENT FIRST OCCURRED EVERYONE SAID WE'LL 16:10:56 TAKE WHATEVER IDEAS AND SUGGESTIONS. 16:10:59 WHATEVER, THE COFFERDAM AND THE TOP HAT, WHATEVER. 16:11:05 I'VE SEEN SOME PEOPLE THAT CALLED ME AND WE REFERRED THEM 16:11:08 IN AND THEY'VE NEVER HEARD ONCE FROM YOUR COMPANY. 16:11:13 IF YOU WERE NOT A VENDOR WITH US BEFORE THIS OCCURRED AND THEN 16:11:16 WE'RE NOT DEALING WITH YOU OR ARE YOU GOING TO ONLY THE 16:11:19 VENDORS AND ALLOWING THEM TO SELECT WHO THEY'RE GOING TO DEAL 16:11:22 WITH? AND MY REASON FOR THIS IS 16:11:23 BECAUSE IF THERE ARE GOOD IDEAS OUT THERE WHY ISN'T SOMEBODY 16:11:29 LOOKING AT THEM IN. WE ARE TRYING VERY HARD TO 16:11:31 ENGAGE WITH EVERYONE WHO HAS A GOOD IDEA. 16:11:35 WE HAVE BEEN, QUITE FRANKLY, INUNDATED WITH HUNDREDS OF 16:11:38 THOUSANDS. AND I KNOW THIS TREMENDOUS 16:11:41 AMOUNT. I KNOW THE FIRST ONE THAT I SAW 16:11:45 WAS WRAPPED HANGING IN THE CARTONS. 16:11:51 I UNDERSTAND THAT. THOSE ARE EASY TO GO THROUGH! 16:11:54 LET ME SHIFT ANOTHER GEAR. DO YOU BELIEVE THAT THIS 16:11:59 ADMINISTRATION'S MORATORIUM IS A RESULT OF THE TRAGEDY THAT 16:12:03 OCCURRED ON DEEPWATER HORIZON? THE FACT THAT THEY PUT IT IN WAS 16:12:08 STRICTLY BECAUSE OF WHAT WENT WRONG IN DEEP WATER! 16:12:15 I DON'T KNOW THAT, BUT I BELIEVE THAT'S THE CASE AND I 16:12:17 THINK IT'S PROBABLY THE RIGHT THING TO DO UNTIL SUCH TIME AS 16:12:21 WE HAVE GREATER CLARITY. WELL, YOU KNOW, AND I AGREE 16:12:27 WITH THAT, AND I DON'T AGREE WITH THE MORATORIUM. 16:12:31 AS I'VE EXPRESSED TO MY FRIENDS IT'S REALLY DIFFICULT FOR US IN 16:12:38 LOUISIANA TO STAND IN OIL AND SAY WE'LL TAKE MORE OIL, BUT 16:12:42 IT'S BECAUSE OF THE ECONOMY AND IT'S BECAUSE OF THE JOBS. 16:12:44 WE'VE SUPPORTED, I'VE SUPPORTED THE INDUSTRY AND I'VE SUPPORTED 16:12:48 THE PEOPLE, BUT IT MAKES SENSE THAT BP BEAR THE RESPONSIBILITY 16:12:54 OF THE ECONOMIC HARDSHIP ASSOCIATED WITH THIS MORATORIUM. 16:13:01 I THINK YOU ALL PUT 100 MILLION ASIDE FOR LOST JOBS. 16:13:06 I AM TOLD IN A GIVEN MONTH, AND I DON'T KNOW IF IT WAS JUST 16:13:12 LOUISIANA, OR OFFSHORE, BUT IT'S ABOUT 350 MILLION A MONTH IN 16:13:18 WAGES. ARE YOU AND YOUR COMPANY GOING 16:13:19 TO TAKE RESPONSIBILITY AND MAKE SURE THAT THESE COMPANIES THAT 16:13:26 FOLD UP, OR THESE COMPANIES THAT HAVE FINANCIAL HARDSHIPS AND IN 16:13:31 PARTICULAR THEIR EMPLOYEES THAT THEY'LL START LAYING OFF WILL BE 16:13:35 COMPENSATED IN SOME WAY? WE'VE MADE THE CONTRIBUTION, 16:13:38 HAVING BEEN ASKED TO BY THE GOVERNMENT TO A FUND WHICH WILL 16:13:43 BE PART OF THE FUNDING FOR THAT ISSUE. 16:13:46 DO YOU THINK 100 MILLION IS ADEQUATE AND YOU'VE BEEN IN THE 16:13:49 OIL BUSINESS FOR QUITE A WHILE. THOSE ARE GOOD-PAYING JOBS, 16:13:53 THAT'S WHY WE WANT TO KEEP THEM, BUT DO YOU THINK THAT 16:14:00 CONTRIBUTION IS ADEQUATE? POOH WE'VE MADE A CONTRIBUTION 16:14:04 AND SET ASIDE $20 BILLION FOR CLAIMS. 16:14:08 I'M CONCERNED ALSO WITH THEM. MRS. RASHTO AND MRS. KEMP MET 16:14:15 THE OTHER DAY, VERY BRAVE WOMEN ESPECIALLY SO SOON AFTER THE 16:14:19 DEATHS OF THEIR SPOUSES, AND, YOU KNOW, AFTER HEARING MISS 16:14:27 RASHTO AND MISS KEMP, I WOULD LIKE TO HEAR MAYBE YOUR 16:14:32 RESPONSE. MISS RASHTO'S HUSBAND TOLD HER 16:14:34 ABOUT THE PROBLEMS ON THE RIG AND THAT THE WELL WAS LOSING A 16:14:37 LOT OF MUD. THAT'S A DETAIL THAT MAY NOT 16:14:40 HAVE COME OUT OR COME TO YOUR ATTENTION, BUT IS WELL KNOWN 16:14:44 AMONG THE WORKERS ON THE RIGS THAT IS A SIGN OF THE PROBLEM. 16:14:47 SHE WANTS TO KNOW AND SHE ASKED US A QUESTION AT THE HEARING IS, 16:14:53 WHY YOUR COMPANY WASN'T WORKING HARDER TO FIX THE PROBLEMS ON 16:14:57 THE WEEK IN THE WEEKS BEFORE IT EXPLODED. 16:14:59 WHY WASN'T YOUR COMPANY PREPARED FOR A BLOWOUT? 16:15:03 I THINK, AS I'VE SAID ALL ALONG TODAY. 16:15:06 WE WANT TO UNDERSTAND EXACTLY WHAT HAPPENED SUCH THAT WE CAN 16:15:10 TAKE THE RIGHT ACTIONS GOING FORWARD, AND I'M NOT AWARE OF 16:15:16 THAT THAT THE -- WHAT YOU JUST RAISED, BUT THE INVESTIGATION 16:15:22 WILL DETERMINE WHETHER OR NOT THE MULTIPLE INVESTIGATIONS -- 16:15:26 THE INVESTIGATION, EXCUSE ME. THE INVESTIGATIONS ARE NOT GOING 16:15:30 TO BRING BACK THOSE 11 MEN TO THEIR KIDS. 16:15:37 NOT ONLY WERE THESE WOMEN CONCERNED ABOUT YOUR COMPANY'S 16:15:41 PREPAREDNESS. THEY WERE CONCERNED ABOUT YOUR 16:15:43 COMPANY'S VALUES. THEY WANTED RIGS TO BE KEPT SAFE 16:15:46 AND THEY WERE TO BE HELD ACCOUNTABLE FOR NOT 16:15:49 PROTECTIONING YOUR HUSBAND. MRS. KEMP ASKED WHY MONEY IS 16:15:51 MORE IMPORTANT THAN SOMEONE'S LIFE AND SO I GUESS ON BEHALF OF 16:15:55 MISS KEMP, HOW DO YOU RESPOND TO THAT? 16:15:58 IT ISN'T. IT ABSOLUTELY IS NOT. 16:16:01 AS I HAVE MADE CLEAR SINCE I'VE BEEN IN THIS ROLE, IT'S 16:16:04 SOMETHING I'VE BELIEVED IN FOR A VERY LONG TIME AND PRIORITY FOR 16:16:09 EVERYONE INVOLVED IN THESE OPERATIONS IS SAFETY. 16:16:13 THAT DOESN'T COME BEFORE ANYTHING, NOT ANYTHING. 16:16:19 IT'S SOMETHING THEY BELIEVE IN PERSONALLY AND VERY 16:16:22 PASSIONATELY. THE WOMEN TALKED ABOUT IN THEIR 16:16:24 TESTIMONY -- I'M SORRY. I'VE GONE OVER MY TIME. 16:16:26 FINISH YOUR QUESTION. YES, SIR. 16:16:28 THE WOMEN TALKED ABOUT IN THEIR TESTIMONY THAT THEIR HUSBANDS 16:16:34 WORKED FOR THE DRILLING RIG COMPANY FOR TRANSOCEAN AND THAT 16:16:38 THEY PUSHED SAFETY, THEY PUSHED SAFETY, THEY PUSHED SAFETY, BUT 16:16:44 IN DISCUSSIONS IN WEEKS PRIOR TO THE EXPLOSION THEIR HUSBANDS 16:16:51 TALKED ABOUT BP WAVING AND SAYING KEEP GOING, KEEP DOING. 16:16:58 I MEAN, I'VE HEARD GROWING UP IN SOUTH LOUISIANA ABOUT THE 16:17:06 TWO-PUSH OR THE WILL DRILL INFORMANT AND COMPANY GUYS 16:17:09 GETTING INTO FISTFIGHTS. WAS THERE ANY INCIDENTS TO YOUR 16:17:13 KNOWLEDGE OR HAVE YOU DISCOVERED THAT THERE WAS A DIRECT ORDER 16:17:17 GIVE KNOW BY BP THAT SAYS KEEP GOING. 16:17:21 I DON'T CARE WHAT'S GOING WRONG? I HAVE NOT SEEN ANY EVIDENCE 16:17:24 OF THAT WHATSOEVER, AND I BELIEVE THAT THE OPERATION ON 16:17:29 THE RIG IN THE DAYS LEADING UP TO THE INCIDENT AND IN THAT DAY 16:17:36 WAS CARRIED OUT BECAUSE EVERYONE AGREED ON THE RIG TO MOVE 16:17:40 FORWARD. THANK YOU, MR. CHAIRMAN. 16:17:43 THANK YOU. MR. CASTER FOR QUESTIONS, 16:17:44 PLEASE. THANK YOU, MR. CHAIRMAN. 16:17:49 MR. HAYWARD, I WOULD LIKE TO START OUT BY EXPRESSING THE 16:17:53 ANGER AND FRUSTRATION OF THE HARD-WORKING PEOPLE OF MY HOME 16:17:58 STATE OF FLORIDA AT THE CATASTROPHE B PERK HAS RENDERED 16:18:03 UPON OUR STATE AND ALL OF THE SMALL BUSINESSES, THE FISHERMEN 16:18:07 AND THE MOM AND POP HOTEL OWNERS. 16:18:11 YOU KNOW, WE WERE JUST COMING OUT OF THE MOST SEVERE RECESSION 16:18:14 IN OUR LIFETIME THAT HAPPENED IN 2007. 16:18:16 THINGS WERE GETTING A LOT BETTER. 16:18:18 SO THIS IS LIKE A SUCKER PUNCH TO THE GUT TO LEARN THAT TRAGEDY 16:18:25 IS A RESULT OF BP ELEVATING PROFITS, CONSIDERATIONS OVER 16:18:35 SAFETY. FOR A DECADE, MANY IN FLORIDA 16:18:37 HAVE OPPOSED THIS DRUMBEAT TO BRING THE OIL RIGS CLOSER TO OUR 16:18:41 BEACHES. OVER TIME WE HAVEN'T 16:18:44 INDUSTRIALIZED OUR COASTLINE LIKE OTHER STATES. 16:18:46 WE RELY ON TOURISM AND CLEAN BEACHES AND CLEAN WATER AND WE 16:18:52 REALLY FOUGHT IT OFF, EVEN IN THE FACE OF VERY WELL-PAID 16:18:56 LOBBYING CAMPAIGNS AND AD CAMPAIGNS WITH REPRESENTATIONS 16:19:03 THAT THIS IS SAFE. THIS IS SAFE TECHNOLOGY, WHETHER 16:19:06 IT'S IN DEEP WATER OR IN SHALLOW WATER. 16:19:09 SO MR. HAYWARD, I'M TRYING TO UNDERSTAND HOW BP EITHER WAS SO 16:19:13 UNPREPARED FOR THE POSSIBILITY OF A BLOWOUT, OR IGNORED THE 16:19:18 RISKS BECAUSE ACCORDING TO THE MINERALS MANAGEMENT SERVICE 16:19:22 STUDY CONDUCTED IN 2007, 126 BLOWOUTS HAVE OCCURRED AT 16:19:28 OFFSHORE DRILLING FACILITIES ON THE OUTER CONTINENTAL SHELF IN 16:19:37 1971. IT CREATED A DISASTER THAT 16:19:39 FLOWED CONTINUOUSLY FOR 290 DAYS. 16:19:43 MR. HAYWARD, YOU'VE SAID THAT THE CHANCES OF A BLOWOUT AND 16:19:47 EXPLOSION LIKE THE ONE THAT SANK THE DEEPWATER HORIZON RIG WERE 16:19:52 ONE IN A MILLION, BUT OVER THE PAST 40 YEARS THERE HAVE BEEN 16:19:56 126 BLOWOUTS IN THE U.S. WATERS ALONE. 16:20:00 THAT'S ROUGHLY THREE BLOWOUTS PER YEAR. 16:20:03 HOW -- HOW COULD AN AVERAGE OF THREE BLOWOUTS EVERY SINGLE YEAR 16:20:07 FOR THE PAST 40 YEARS NOT HAVE REGISTERED AS MORE THAN ONE IN A 16:20:13 MILLION CHANCE RISK FOR YOUR COMPANY? 16:20:16 WITH RESPECT, CONGRESSMAN, I THINK WHAT I SAID WAS THE 16:20:21 INTEGRITY RATING OF THE BLOWOUT PREVENTER WAS OF THE ORDER OF 10 16:20:26 TO THE MINUS 5 AND 10 TO THE MINUS 6. 16:20:28 THAT IS TO SAY THAT IT WAS DESIGNED TO FAIL BETWEEN 1 IN 16:20:35 100,000 AND ONE IN A MILLION TIMES. 16:20:37 AND THAT'S AN ACCEPTABLE RISK? 16:20:39 IT IS THE RISK THAT BP AND THE INDUSTRY MORE BROADLY USE TO 16:20:47 ASSESS THE FAIL SAFE MECHANISM CALLED THE BLOWOUT PREVENTER. 16:20:51 I KNOW YOU RELY ON THE BLOOE BLOWOUT PREVENTERS AND YOU SAY 16:20:56 THEY'RE FAIL SAFE, BUT THEY'RE NOT FAIL SAFE AT ALL IN WHAT 16:21:00 WE'VE DISCOVERED THROUGH THE COMMITTEE'S EXAMINATION AND THE 16:21:04 STATISTICS HERE. THIS COMMITTEE HAS REVIEWED THE 16:21:07 OIL RESPONSE PLAN FOR THE GULF OF MEXICO AND NOT ONE TIME IN 16:21:11 THE 582-PAGE PLAN DOES BP LAY OUT A METHOD TO REPLACE THE 16:21:18 GUSHER AFTER A BLOWOUT HAS OCCURRED AND YOUR COMPANY 16:21:22 CONDUCTED A PLANNING AFTER A SUBSEA BLOWOUT WASN'T EVEN A 16:21:27 POSSIBILITY. IN A RECENT INTERVIEW IN "THE 16:21:31 FINANCIAL TIMES," YOU ADMITTED THAT WE DID NOT HAVE THE TOOLS 16:21:37 YOU'D WANT IN A TOOL KIT. MY SIMPLE QUESTION IS WHY NOT? 16:21:42 WHY WEREN'T YOU PREPARED? WHY DID YOU ELEVATE PROFITS OVER 16:21:46 SAFETY? I DON'T BELIEVE WE ELEVATED 16:21:48 PROFITS OVER SAFETY. WHAT I WAS REFERRING TO IN THAT 16:21:51 ARTICLE WAS A VERY COMPLICATED ENGINEERING PROBLEM WE WERE 16:21:56 FACED WITH AFTER THE RIG SANK AND ATTACHED TO ITS RISER. 16:22:00 WE HAD A WELL, A WISER AND THE RIG ON THE FLOOR AND WE DIDN'T 16:22:05 HAVE THE EQUIPMENT INSTANTLY AVAILABLE TO CUT THE RISER AND 16:22:08 TO CUT OFF THE TOP OF THE RISER AND FIND A WAY TO INTERVENE ON 16:22:13 THE WELL HEAD AND THAT IS INDEED TRUE. 16:22:15 MR. HAYWARD, FOR YEARS BIG OIL COMPANIES AND YOUR ALLIES 16:22:21 HAVE CLAIMED THAT DRILLING IS SAFE AND YOU WANT TO COME CLOSER 16:22:25 TO FLORIDA BEACHES AND YOU SAY IT'S SAFE, DEEPER AND SHALLOW 16:22:31 THAT THERE ARE NO PROBLEMS, BUT ON THE OTHER HAND WE'VE HEARD 16:22:34 OVER AND OVER AGAIN OVER THE LAST COUPLE OF MONTHS, OH, THIS 16:22:37 IS COMPLEX AND THIS IS DANGEROUS. 16:22:40 IT'S DANGEROUS TO DRILL MILES BELOW THE OCEAN AND BP OFFICIALS 16:22:43 HAVE SAID IT'S LIKE OPERATING IN OUTER SPACE AND GIVEN THE 16:22:51 DIFFICULTIES AND COMPLEXITIES IN WHAT YOU KNEW ABOUT THE RISKS, I 16:22:55 CAN'T UNDERSTAND WHY YOU WOULD ASSUME THAT NOTHING COULD GO 16:22:58 WRONG. SO I'M -- THE DOUBLE SPEAK IS 16:23:03 RATHER TIRESOME. I'M DISMAY AND DISHEARTENED BY 16:23:08 WHAT HAS HAPPENED, AND THE ELEVATION OF PROFITS OVER 16:23:10 SAFETY, AND I CAN ONLY HOPE THAT THIS DISASTER WILL MOTIVATE US 16:23:16 TO REASSESS OUR PRIORITIES AND IMPLEMENT A CLEAN ENERGY POLICY 16:23:20 FOR THIS COUNTRY. THANK YOU, MR. CHAIRMAN. 16:23:24 THAT CONCLUDES QUESTIONS FROM EVERYBODY OF THE COMMITTEE. 16:23:27 THERE'S A FEW MORE QUESTIONS. THERE ARE A COUPLE OF MEMBERS 16:23:32 THAT HAVE A COUPLE OF FOLLOW-UP QUESTIONS SO WE'LL GO A QUICK 16:23:35 SECOND ROUND, IF WE MAY. CHAIRMAN WAXMAN, IF YOU WOULD 16:23:38 LIKE TO BEGIN? THANK YOU VERY MUCH, MR. 16:23:43 CHAIRMAN. MR. HAYWARD, YOU SAID YOUR 16:23:44 PRIORITY AND YOUR TOP FOCUS IS ON SAFETY AND YOU FEEL VERY 16:23:47 PASSIONATE ABOUT IT, EXCEPT FOR YOUR STATEMENT TO THAT EFFECT, I 16:23:51 SEE AS YOU'VE SAID OVER AND OVER AGAIN TODAY, NO EVIDENCE OF 16:23:58 THAT. THE YOU AND OTHER SENIOR 16:24:04 OFFICIALS SEEMED OBLIVIOUS TO THE DEEPWATER HORIZON RIG. 16:24:07 YOU WEREN'T FOLLOWING THE PROGRESS OF THE WELL AND YOU 16:24:10 WEREN'T AWARE OF THE RISKS BEING TAKEN. 16:24:13 IN ANSWERS TO QUESTIONS YOU SAID THAT YOUR TOP OFFICIALS UNDER 16:24:20 YOU, MR. ENGLISH AND MR. SUTTLES. 16:24:24 YOU WOULD BE SURPRISED IF THEY WOULD BE FOLLOWING THE 16:24:28 HAPPENINGS ON THE RIG, BUT YOU WOULD BE SURPRISED IF THEY'D 16:24:31 BEEN FOLLOWING THE ACTIVITIES ON THE DRILLING RIG. 16:24:34 SO WHO WAS FOLLOWING THE ACTIVITIES ON THE DRILLING RIG? 16:24:37 YOU SAID THERE WERE PEOPLE THERE WHO WERE THE EXPERTS IN THEIR 16:24:42 FIELD. I -- I JUST FIND IT SHOCKING 16:24:48 THAT WHEN THE POTENTIAL CONSEQUENCES OF A MISTAKE ON A 16:24:51 DEEP WATER RIG ARE SO ENORMOUS AND YOU HAVE SUCH A HIGH, 16:24:57 PASSIONATE COMMITMENT TO SAFETY THAT YOU SEEM SO REMOVED, I 16:25:00 THINK OPERATING A DEEP WATER ENVIRONMENT IS LIKE OPERATING IN 16:25:04 OUTER SPACE AND YET YOU SEEM TO THINK THAT ALL IS GOING TO BE 16:25:08 TAKEN CARE OF IN TIME. NOW YOU SAID THERE'S A TEAM, THE 16:25:15 BEST MINDS IN THE WORLD LOOKING ON HOW TO STOP THE OIL SPILL. 16:25:18 WHERE ARE THE BEST MINDS IN YOUR COMPANY PAYING ATTENTION BEFORE 16:25:24 THE SPILL? YOU WERE OBLIVIOUS AND SO WERE 16:25:26 OTHER SENIOR OFFICIALS AND THIS WAS A FUNDAMENTAL MISTAKE IN 16:25:31 MANAGEMENT. LET ME ASK YOU THAT. 16:25:32 DO YOU THINK THERE WAS A FUNDAMENTAL MISTAKE IN 16:25:34 MANAGEMENT NOT TO KNOW IN. I THINK, AS I'VE SAID. 16:25:40 WE MADE IT VERY CLEAR THAT THE FOCUS THE COMPANY IS ON SAFETY. 16:25:43 WHAT MANAGEMENT CAN DO IS ENSURE THAT THE RIGHT PEOPLE WITH THE 16:25:46 RIGHT SKILLS ARE IN PLACE. THE RIGHT SYSTEMS AND PROCESSES 16:25:50 ARE IN PLACE AND THE RIGHT PRIORITIES ARE IN PLACE AND THE 16:25:54 RIGHT INVESTMENT IS AVAILABLE TO ENSURE THAT THE PLANT THAT WE 16:25:58 ARE OPERATING HAS INTEGRITY. SO YOU FELT CONFIDENT THAT 16:26:03 THE PEOPLE THAT WERE MAKING THESE DECISIONS AND WE WENT 16:26:06 THROUGH FIVE IN OUR LETTER TO YOU AND MANY MEMBERS ASKED YOU 16:26:09 ABOUT THESE DECISIONS THAT THE RIGHT PEOPLE WERE MAKING THOSE 16:26:12 DECISIONS? I BELIEVE THAT THE RIGHT 16:26:13 PEOPLE WERE MAKING THOSE DECISIONS. 16:26:15 AND YOU HAVE NO EVIDENCE THAT THEY DIDN'T MAKE THE RIGHT 16:26:17 DECISION. THAT SEEMS TO BE YOUR POSITION 16:26:20 TODAY. IS THAT RIGHT? INVESTIGATION IT'S PREMATURE TO 16:26:24 DRAW CONCLUSIONS TO WHAT WAS AND WAS NOT THE RIGHT DECISION. 16:26:28 OKAY. IT'S PREMATURE. 16:26:31 WHAT INVESTIGATION OR INVESTIGATIONS ARE TAKING PLACE 16:26:32 TO DETERMINE THESE FACTS? THERE IS THE BP 16:26:36 INVESTIGATION, THERE'S A MARINE BOARD INVESTIGATION AND THE 16:26:40 PRESIDENTIAL COMMISSION. AND ARE YOU GOING TO BE 16:26:43 COOPERATING WITH ALL OF THEM? WE ARE, AS WE HAVE, MR. 16:26:46 CHAIRMAN, COOPERATED WITH YOUR COMMITTEE. 16:26:48 WELL, I QUESTION HOW COOPERATIVE YOU'VE BEEN WITH OUR 16:26:51 COMMITTEE BECAUSE I'VE HEARD VERY LITTLE ANSWERS TO THE 16:26:54 QUESTIONS FROM YOU TODAY TO THE QUESTIONS RAISED BY OUR 16:27:03 C COLLEAGUES. 16:27:04 WHEN YOU WERE ASKED WHETHER BP MADE A WELL DESIGN, YOU SAID YOU 16:27:06 HAVEN'T REACHED A CONCLUSION YET. 16:27:09 WHEN MR. DINGLE ASKED WHETHER COSTS WERE A FACTOR, YOU SAID 16:27:12 YOU DIDN'T KNOW BECAUSE YOU WEREN'T THERE AND MR. DOYLE 16:27:14 ASKED YOU WHO MADE THE WELL DESIGN DECISIONS, YOU SAID YOU 16:27:18 DIDN'T KNOW. OUR COMMITTEE IS DOING AN 16:27:21 INVESTIGATION. NOW THE REASON WE'RE DOING AN 16:27:23 INVESTIGATION IS WE WANT TO KNOW HOW THIS HAPPENED SO THAT WE CAN 16:27:28 MAKE CHANGES IN THE LAW AND THE PROCEDURES IF WE'RE GOING TO 16:27:32 ALLOW FURTHER DRILLING. DON'T YOU THINK YOU OUGHT TO BE 16:27:36 MORE FORTHCOMING WITH US? WE WILL BE AS FORTHCOMING AS 16:27:39 WE CAN BE, MR. CHAIRMAN. GIVE ME THE TIME HORIZON FOR 16:27:42 YOUR INVESTIGATION. WHEN WILL YOU HAVE THAT 16:27:45 COMPLETED? YOU'VE HAD 60 DAYS TO DO IT. 16:27:48 IS IT GOING ON NOW? IT'S ONGOING AND WE WANT TO 16:27:50 HAVE ACCESS TO ALL OF THE EVIDENCE BEFORE WE MAKE FINAL 16:27:56 DETERMINATIONS, BUT AS WE HAVE MADE VERY CLEAR. 16:27:59 GIVE ME AN ESTIMATE TO WHEN THAT WILL BE CONCLUDED. 16:28:01 ONE OF THE MOST IMPORTANT ELEMENTS IN THIS IS THE BLOWOUT 16:28:06 PREVENTER. IT RERE MAINS ON THE SEA BED AND 16:28:08 IT NEEDS TO BE EXAMINED. SO WE'LL PUT THAT ASIDE. 16:28:12 HOW ABOUT THE OTHER DECISIONS BEFORE THE EXPLOSION ABOUT THE 16:28:16 CASING? ABOUT THE CENTERING OF THE WELL? 16:28:18 ABOUT ALL OF THE OTHER THINGS THAT HAVE BEEN RAISED? 16:28:22 HAVE YOU REEZ GOOD TENTATIVE CONCLUSIONS THAT YOU COULD SHARE 16:28:25 WITH US? AS WE SHARED WITH YOU 16:28:29 RECENTLY, WE'VE IDENTIFIED SEVEN AREAS, AREAS OF FOCUS IN OUR 16:28:35 INVESTIGATION AND WE WILL CONTINUE TO SHARE OUR 16:28:39 UNDERSTANDING AND OUR THINKING WITH YOU AS THAT DEVELOPS. 16:28:41 MR. HENSLEY ASKED YOU IF THERE WAS ANY ACTION THAT 16:28:47 APPEARED -- IF THERE WAS ANY ACTION TO SAVE MONEY AND YOU 16:28:51 SAID THERE'S NO EVIDENCE OF THAT. 16:28:53 I CAN'T BELIEVE YOU SAID THERE'S NO EVIDENCE OF THAT. 16:28:57 THERE'S EVIDENCE YOU WANT TO KNOW MORE ABOUT IT, BUT THERE'S 16:29:00 CERTAINLY EVIDENCE TO THAT EFFECT, ISN'T THERE? 16:29:04 THE DECISION THAT WAS TAKEN BY THE PEOPLE AT THE TIME, AND 16:29:10 SOME OF THEM IN -- SITTING HERE TODAY APPEAR THEY MAY HAVE BEEN, 16:29:16 BUT IT'S NOT CLEAR. WELL EVIDENCE IS NOT 16:29:20 CONCLUSIVE, BUT THERE'S EVIDENCE. 16:29:22 THE DECISION, FOR EXAMPLE, TO RUN A LONG STRING VERSUS A LINER 16:29:29 WAS, AS IT SHOWS IN THE DOCUMENT THAT YOU HIGHLIGHTED TO ME, A 16:29:34 DECISION TO DO WITH THE LONG-TERM INTEGRITY OF THE WELL. 16:29:39 THERE'S EVIDENCE AND THE EVIDENCE MAY POINT IN A CERTAIN 16:29:44 DIRECTION. THERE MAY BE EVIDENCE THAT 16:29:48 POINTS IN ANOTHER DIRECTION. YOU REACH A CONCLUSION BASED ON 16:29:53 THE PREPONDERANCE OF THE EVIDENCE. 16:29:55 THAT'S NOT TO SAY THERE ISN'T EVIDENCE WHEN WE HAVE THE CLEAR 16:29:58 EXAMPLES. LET ME ASK YOU THIS. 16:30:00 YOU CAN'T GIVE US A TIME FOR WHEN THIS INVESTIGATION IS GOING 16:30:03 TO BE COMPLETE SO WE'RE RELYING ON YOU TO DO YOUR OWN 16:30:09 INVESTIGATION. WHY SHOULD WE RELY ON YOU TO DO 16:30:11 YOUR OWN INVESTIGATION? I DON'T THINK YOU HAVE A 16:30:13 TERRIFIC RECORD OF RELIABILITY THAT SHOULD GIVE US COMFORT TO 16:30:16 HAVE US STEP BACK AND JUST WAIT TO GET ANSWERS FROM YOU UNTIL 16:30:21 YOU'VE DONE YOUR OWN INVESTIGATION. 16:30:23 WHY SHOULD WE RELY ON THAT IN. WE'RE CLEARLY NOT THE ONLY 16:30:26 PEOPLE DOING AN INVESTIGATION? THERE ARE MANY PEOPLE DOING 16:30:29 INVESTIGATIONS. ALL I HAVE COMMIT SIDE THAT OUR 16:30:32 INVESTIGATION PROCEEDS WE WILL SHARE WITH YOU ALL OF OUR 16:30:37 FINDINGS AND ALL OF THE DATA AND ALL OF THE INFORMATION. 16:30:39 WELL, LET ME JUST SAY IN CONCLUSION, WE DELAYED THIS 16:30:43 HEARING TODAY SO YOU COULD BE PREPARED TO ANSWER OUR 16:30:47 QUESTIONS. WE SENT YOU OUR QUESTIONS IN 16:30:50 ADVANCE. YOU'VE CONSISTENTLY DUCKED AND 16:30:53 EVADED OUR QUESTIONS. THERE MUST BE SOME REASON THAT 16:30:56 YOU THINK THIS APPROACH MAKES SENSE AND YOUR E VAGSZ WILL MAKE 16:30:59 OUR JOB MORE DIFFICULT AND IT WILL IMPEDE OUR UNDERSTANDING OF 16:31:01 WHAT WENT WRONG AND WILL MAKE IT HARDER IT DRAFT APPROPRIATE 16:31:05 REFORMS. I THINK THAT'S REGRETTABLE AND 16:31:08 AN UNFORTUNATE REPORT FOR YOU TO TAKE ON THE COMMITTEE OF THE 16:31:12 UNITED STATES' CONGRESS AND I LOOK FORWARD TO SEE WHEN YOU 16:31:14 COME UP WITH, BUT WE'LL GET EVIDENCE, AND I WOULD LIKE YOU 16:31:18 TO SUBMIT FOR THE RECORD THE NAMES OF THE INDIVIDUALS WHO 16:31:21 MADE THOSE DECISION IN EACH OF THE AREAS THAT WERE UNDER 16:31:24 DISCUSSION IN THE LETTER WE SENT YOU. 16:31:26 WOULD YOU BE WILLING TO DO THAT? WE'LL MAKE THAT AVAILABLE TO 16:31:29 YOU. THANK YOU. 16:31:30 AS WE HAVE MADE EVERYTHING TO MY KNOWLEDGE, AVAILABLE TO YOU. 16:31:35 AND MAYBE THEY'LL HAVE SOME ANSWERS THEY COULD SHARE WITH 16:31:38 US. THANK YOU VERY MUCH. 16:31:39 THANK YOU, MR. CHAIRMAN. MR. BARTON FOR QUESTIONS? 16:31:44 THANK YOU, CHAIRMAN STUPAK. WE'RE ABOUT TO FINISH UP THIS 16:31:49 HEARING. WE DOPPRECIATE YOUR PATIENCE 16:31:57 IN LISTENING TO THE VARIOUS MEMBERS OF THE SUBCOMMITTEE. 16:31:59 WHAT ONE OR TWO RECOMMENDATIONS ARE YOU PREPARED TO GIVE ABOUT 16:32:03 WHAT WE COULD DO TO PREVENT A FUTURE ACCIDENT OF THIS TYPE NOW 16:32:08 THAT YOU KNOW WHAT YOU KNOW AND YOU'VE LISTENED TO WHAT THE 16:32:11 CONGRESS KNOWS HERE TODAY. ARE THERE ONE OR TWO THINGS THAT 16:32:16 YOU WOULD LIKE TO SUGGEST FOR CONSIDERATION TO PREVENT AN 16:32:19 ACCIDENT OF THIS TYPE FROM HAPPENING IN THE FUTURE? 16:32:23 I BELIEVE THAT THE MOST IMPORTANT ONE IS TO TAKE THE 16:32:29 FAIL SAFE MECHANISM CALLED THE BLOWOUT PREVENTER AND DESIGN IT 16:32:33 SO THAT IT'S GENUINELY FAIL SAFE. 16:32:35 THE REALITY IN ALL INDUSTRIAL ACCIDENTS IS THAT THEY ARE 16:32:39 ALWAYS A COMBINATION OF EQUIPMENT FAILURE AND HUMAN 16:32:44 JUDGMENT AND THE MOST IMPORTANT THING IS TO HAVE IN PLACE A 16:32:47 SYSTEM THAT IS GENUINELY FAIL SAFE AND IT IS CLEAR, BASED ON 16:32:54 OUR EXPERIENCE OF THIS ACCIDENT THAT THE CURRENT DESIGN BASIS OF 16:33:01 THE BLOWOUT PREVENTER BEING USED IN THE DEEP WATER, NOT JUST IN 16:33:04 THIS CASE, BUT ACROSS THE WORLD IS NOT AS FAIL SAFE AS WE 16:33:08 BELIEVED IT TO BE, AND I BELIEVE THAT'S A VERY IMPORTANT LESSON 16:33:12 THAT THE INDUSTRY NEEDS TO GRASP ALONG WITH THE RELEVANT 16:33:16 REGULATORY AGENCIES. MUCH HAS BEEN MADE OF THE 16:33:23 COMPLEXITY AND THE RISKS ASSOCIATED WITH DRILLING THESE 16:33:28 DEEP WELLS. WOULD YOU CARE TO -- I'VE ASKED 16:33:32 SOME OF YOUR SUBORDINATES TO GIVE US SOME SORT OF ASSESSMENT 16:33:37 OF THE POTENTIAL SIZE OF THIS PARTICULAR FIELD OF THIS 16:33:42 PARTICULAR WELL. I'VE ASKED THE TEXAS RAILROAD 16:33:45 COMMISSION AND THE TEXAS U.S. GEOLOGICAL SURVEY WHAT THE 16:33:50 LARGEST ONSHORE OIL WELL IN TEXAS IN ITS HISTORY OF OVER 100 16:33:55 YEARS HAS BEEN, AND WITH THE EXCEPTION OF THE INITIAL 16:34:03 DISCOVERY OF SPINDLE TOP IN 1901 WE CAN'T FIND THE ONSHORE TEXAS 16:34:08 WHICH HAS BEEN THE NUMBER ONE OIL-PRODUCING STATE IN THE 16:34:11 COUNTRY FOR OVER 100 YEARS WITH THE EXCEPTION OF A FEW YEARS IN 16:34:15 ALASKA AT PRUDHOE BAY AT ITS PEAK, THAT FLOWED AT 50,000 16:34:22 BARRELS A DAY, AND THE LATEST ESTIMATES ARE THAT THIS WELL IN 16:34:29 THIS CONDITION COULD BE FLOWING AS MUCH AS 50,000 BARRELS A DAY. 16:34:32 IF YOU EXTRAPOLATE THAT ON AN ANNUAL BASIS, THAT -- THAT'S 16:34:39 OVER 1100 MILLION BARRELS OF OIL A YEAR. 16:34:43 SO COULD YOU GIVE US SOME ASSESSMENT OF WHY BP AND OTHER 16:34:48 COMPANIES GO TO SUCH EXTRAORDINARY MEASURES TO DRILL 16:34:51 IN THESE AREAS? WHAT IS IT THAT YOU THINK YOU 16:34:55 FOUND OR WERE HOPING TO FIND BENEATH THE GULF OF MEXICO? 16:34:58 IN THE INSTANCE OF THIS WELL, WE BELIEVE THAT THE DISCOVERY 16:35:06 WAS OF THE ORDER OF 50 MILLION BARRELS. 16:35:09 50 MILLION? 50 MILLION BARRELS. 16:35:11 THAT'S THE ESTIMATE OF THE DISCOVERY OF THE SIZE OF THE 16:35:14 DISCOVERY THAT THIS WELL MADE. SO IF YOU -- AT THE RATE IT'S 16:35:18 FLOWING IT OUGHT TO PETER OUT FAIRLY QUICKLY. 16:35:24 50,000 BARRELS A DAY IS 50,000 BARRELS A WEEK WHICH IS 3.5 16:35:29 MILLION IN TEN WEEKS WHICH IS 35 MILLION IN 100 WEEKS. 16:35:37 SO IT -- -- IT WOULD -- I WAS TOLD IT WAS ON THE ORDER OR 16:35:42 MAGNITUDE THAT IT WAS 500 MILLION BARRELS. 16:35:45 THAT'S NOT CORRECT, CONGRESSMAN. 16:35:47 THIS IS A DISCOVERY BASED ON THE CLEARLY ON THE WELL AND THE 16:35:52 SEISMIC INFORMATION WE HAVE AVAILABLE TO US. 16:35:55 IT'S JUST THAT THE EXTREME PRESSURE. 16:35:58 IT COULDN'T FLOW AT THIS RATE IN FULL PRODUCTION. 16:36:02 IS THAT A FAIR STATEMENT? THAT'S CORRECT. 16:36:05 WOULD YOU CARE TO TELL US WHAT IT WOULD FLOW AT? 16:36:08 WHAT YOU WOULD HAVE EXPECTED IT TO FLOW AT PER DAY? 16:36:10 I THINK AS A PRODUCING WELL, PROPERLY COMPLETED WIELD EXPECT 16:36:17 IT TO BE PERHAPS BETWEEN 15 AND 25,000 BARRELS PER DAY. 16:36:21 OKAY. AND LASTLY, WITH THE MORATORIUM 16:36:26 THAT'S CURRENTLY IN EXISTENCE IN THE GULF OF MEXICO FROM THE DEEP 16:36:31 AREAS OF THE SIX-MONTH MORATORIUM, I KNOW YOU HAD TO DO 16:36:36 EVERYTHING, AND WE WANT YOU TO STOP THIS SPILL AND CLEAN IT UP, 16:36:40 BUT THERE ARE OTHER AREAS THAT COULD BE EXPLORED. 16:36:45 WHAT OTHER AREAS MIGHT BP GO TO INSTEAD OF IN THE GULF OF 16:36:50 MEXICO? WELL, WE HAVE DEEP WATER 16:36:56 DRILLING EXPLORATION AND PRODUCTION OPERATIONS IN A LARGE 16:36:59 NUMBER OF LOCATIONS AROUND THE WORLD, IN WEST AFRICA, BRAZIL, 16:37:05 EGYPT, TO NAME THE THREE AS WELL AS THE UK AND THE NORTH SEA. 16:37:10 SO YOU WOULD -- YOU WOULD FOCUS ON THOSE AREAS IF THIS 16:37:13 MORATORIUM CONTINUES? WE ARE FOCUSED TODAY ON THE 16:37:19 RELIEF WELL. I UNDERSTAND, AND YOU SHAB. 16:37:23 YOU BETTER BE. I HAVEN'T THOUGHT, FRANKLY, 16:37:26 BEYOND DEALING WITH THE RELIEF WELLS IN TERMS OF THEIR ACTIVITY 16:37:30 IN THE GULF OF MEXICO. THANK YOU, MR. CHAIRMAN. 16:37:33 THANK YOU, MR. MARTIN. MR. HAYWARD, THE LINE OF 16:37:38 QUESTIONING THROUGHOUT THE DAY YOU REFERRED TO THE BLOWOUT 16:37:41 PREVENTER. MR. GONZALEZ WHEN HE ASKED YOU 16:37:43 QUESTIONS AND MR. BARTON ASKED SOME QUESTIONS ON THERE, BACK ON 16:37:46 JUNE 4th YOU WROTE AN EDITORIAL TO "THE WALL STREET JOURNAL" 16:37:52 PERTAINING TO THE BLOWOUT PREVENTER. 16:37:54 YOU STATED WE IN THE INDUSTRY HAVE HAD GREAT CONFIDENCE IN THE 16:37:58 BLOWOUT PREVENTER AS THE FAIL SAFE PIECE OF SAFETY EQUIPMENT 16:38:03 ON THIS OCCASION IT FAILED WITH DISASTROUS CONSEQUENCES. 16:38:06 YOU STILL BELIEVE THE BLOWOUT PREVENTER SHOULD BE CONSIDERED 16:38:09 THE ULTIMATE IN FAIL SAFE? I BELIEVE SO. 16:38:12 EITHER A BLOWOUT PREVENTER OR SOME SIMILAR MECHANISM. 16:38:16 WELL, I'M A LITTLE SURPRISED BY YOUR COMMENTS BECAUSE THE 16:38:19 COMMITTEE RECEIVED THE DOCUMENTS AND YOU HAVE THE DOCUMENT FINDER 16:38:22 RIGHT THERE AND YOU MAY WANT TO REFER TO IT THAT EVALUATED THE 16:38:26 BLOWOUT PREVENTER USED ON DEEP WATER HORIZON RIG. 16:38:30 THE DOCUMENT IS TABBED NUMBER 14 RIGHT THERE AND WE PUT IT UP ON 16:38:33 THE SCREEN. IN 2001, WHEN TRANSOCEAN BOUGHT 16:38:37 THE BLOWOUT PREVENTER, I WANT TO SHOW YOU THE EXECUTIVE SUMMARY 16:38:41 IN WHICH BP PARTICIPATED WITH IT IN THIS REVIEW, AND IT SAYS 16:38:48 ENGINEERING AND OPERATIONS PERSONNEL IDENTIFIED 260 FAILURE 16:38:53 MODES. YOU SEE WHERE IT SAYS THAT 16:38:55 TOWARDS ABOUT THE TOP THIRD OF IT? 16:38:58 OKAY. SO BP ENGINEERS, YOUR 16:39:00 ENGINEERS HELPED TO IDENTIFY THE 260 FAILURE MODES SO HOW CAN YOU 16:39:04 WRITE AND HOW CAN YOU TAF, BUT HOW CAN YOU WRITE IN THE WALL 16:39:09 STREET JOURNAL THAT YOU THOUGHT IT WAS THE ULTIMATE FAIL SAFE 16:39:12 WHEN YOUR OWN ENGINEERS EXAMINED THE BLOWOUT PREVENTER FOUND 260 16:39:17 FAILURE MODES IN IT. HOW COULD YOU SAY IT'S THE 16:39:21 ULTIMATE FAIL SAFE? HAVEN'T SEEN THIS DOCUMENT 16:39:24 PREVIOUSLY. I APOLOGIZE FOR THAT, BUT I 16:39:26 HAVEN'T? NOW KNOWING THERE'S 260 FAIL 16:39:29 SAFE MODES IN THIS BLOWOUT PREVENTER THAT WAS ON DEEPWATER 16:39:33 HORIZON, IT NEVER WAS THE ULTIMATE FAIL SAFE, WAS IT? 16:39:35 THE BLOW OUT PREVENTER IS DESIGNED TOON THE ULTIMATE FAIL 16:39:38 SAFE, THAT IS ITS DESIGN BASES. IT'S THE BASIS ON WHICH THE 16:39:43 INDUSTRY HAS OPERATED FOR IN 30 YEARS IN DEEP WATER. 16:39:46 LET ME ASK YOU THIS, AS THE CEO, WHY THEN WOULD YOUR COMPANY 16:39:52 CHANGE THE BLOWOUT PREVENTER FAIL SAFE MEK METHODS OR 16:39:59 MECHANISM, FOR INSTANCE, WE FOUND OTHER THINGS THAT SHOWED 16:40:02 THAT THIS BLOW OUT PREVENTER WAS NOT FAIL SAFE UPON AT OUR FIRST 16:40:07 HEARING, MAY 12th I READ THAT THE BLOWOUT PREVENTER HAD BEEN 16:40:12 MODIFIED IN WAYS THAT IT WOULD HAVE BEEN INCREASED AND THAT IT 16:40:15 WOULD RPT WORK. ONE MOD IF I KAGD, FOR INSTANCE, 16:40:18 WAS TO REMOVE THE IMPORTANT VARIABLE RAM AND REPLACED IT 16:40:22 WITH THE TEST RAMP THAT MADE IT INEFFECTIVE IN CASE OF AN 16:40:26 EMERGENCY. AT OUR HEARING, I ASKED MR. 16:40:29 McKAY, THE PRESIDENT OF BP AMERICA ABOUT THESE MOD IF I 16:40:33 KAGDS. HE TESTIFIED UNDER OATH. 16:40:35 HE TOOK THE OATH ANY HE SAID HE DIDN'T KNOW ABOUT MODIFICATIONS. 16:40:38 WE'VE SINCE LEARNED THAT BP APPROVED MOD IF I KAGDS DESPITE 16:40:42 BEING WARNED THAT IT WOULD REDUCE THE SAFETY OF THE BLOWOUT 16:40:46 PREVENTER. I WOULD LIKE TO DISPLAY IT AGAIN 16:40:48 AND THIS IS TAB NUMBER TEN RIGHT IN THE BOOK RIGHT THERE. 16:40:51 HERE'S A LETTER FROM 2004 FROM TRANSOCEAN SENT TO BP THAT BP 16:40:55 SIGNED AND ACKNOWLEDGED AND IT SAYS, BP ACKNOWLEDGES THAT THE 16:41:00 CONVERSION AND THE CONVERSION YOU ASKED FOR, THE CONVERSION 16:41:03 WILL REDUCE THE BUILT-IN REDUNDANCY OF THE BOP THEREBY 16:41:08 POTENTIALLY UNCREASING THE CONTRACTOR'S RISK PROFILE. 16:41:12 SO -- WHAT DOES THAT MEAN? BP, THAT YOU REDUCE THE 16:41:18 BUILDOUT -- YOU REDUCE THE BUILT-IN REDUNDANCY TO INCREASE 16:41:23 YOUR RISK. YOU ASKED FOR MODIFICATIONS 16:41:26 WHICH LIMITED THE REDUNDANCY AND INCREASED YOUR RISK, RIGHT? 16:41:32 BP DID. AGAIN, I HAVEN'T SEEN THIS 16:41:33 DOCUMENT PREVIOUSLY. WHAT I DO KNOW THERE WERE 16:41:36 MODIFICATIONS MADE TO THE BLOWOUT PREVENTER. 16:41:39 IN PARTICULAR, A TEST BORE RAM WAS ADDED. 16:41:44 IT WAS NOT A SUBTRACTION. IT WAS AN ADDITION TO THE 16:41:47 BLOWOUT PREVENTER IS MY UNDERSTANDING. 16:41:50 HERE'S OUR PROBLEM. THIS IS THE ULTIMATE FAIL SAFE. 16:41:53 WE FIND OUT IT'S MODIFIED AND WE ASKED YOUR REPRESENTATIVE AND 16:41:57 MR. McKAY AND HE SAYS NO, NO. WE GET DOCUMENTS SHOWING BP 16:42:01 ASKED FOR IT. BP WAS WARNED THAT THE ULTIMATE 16:42:04 FAIL SAFE SYSTEM, THE WAY BP WANTED IT AND MODIFIED WILL 16:42:07 INCREASE THE RISK OF A PROBLEM, AND THAT'S THE ONE WE HAVE HERE 16:42:11 IN DEEPWATER HORIZON. SO HOW CAN WE WRITE AN 16:42:14 EDITORIAL? YOU CAN'T HAVE IT BOTH WAYS 16:42:16 HERE. HOW CAN WE WRITE AN EDITORIAL 16:42:18 SAYING THIS IS THE ULTIMATE SYSTEM AND EVEN YOUR OWN 16:42:21 ENGINEERS SAY THERE ARE 260 DIFFERENT WAYS IT CAN FAIL AND 16:42:23 THEN YOU ADD MORE TO IT. GO AHEAD. 16:42:28 THE BLOWOUT PREVENTER IS DESIGNED TO BE THE FAIL SAFE 16:42:32 MECHANISM IN THE INDUSTRY. CORRECT. 16:42:34 THAT HAS BEEN THE CASE SINCE -- SINCE THE BLOWOUT 16:42:38 PREVENTERS WERE CREATED. BUT YOU'RE THE CEO AND YOU'VE 16:42:42 BEEN HEAD OF EXPLORATION AND DRILLING AND ALL THIS. 16:42:44 DOES IT MAKE SENSE TO YOU THAT THIS IS THE ULTIMATE FAIL SAFE 16:42:47 SYSTEM WHEN THERE ARE 260 DIFFERENT WAYS IT CAN GO WRONG, 16:42:51 PLUS YOUR COMPANY MODIFIES IT WHICH INCREASES THE RISK OF 16:42:55 THINGS GOING WRONG? THE FACT IS THAT IT IS THE 16:42:58 ULTIMATE FAIL SAFE MECHANISM. LET ME ASK YOU THIS. 16:43:01 IN NOVEMBER, OKAY, THIS WELL YOU STARTED DRILLING IT LAST FALL, 16:43:07 THE MACONDO WELL LAST FALL USING THE RIG. 16:43:11 IT WAS HARMED. IT WAS DAMAGED IN THE HURRICANE. 16:43:13 SO YOU REPLACED IT WITH DEEPWATER HORIZON. 16:43:16 IN NOVEMBER OF LAST YEAR, TRANSOCEAN PULLED OUT THE 16:43:20 BLOWOUT PREVENTER FROM THE OCEAN FLOW BECAUSE ITS SHEAR RAMS 16:43:25 WEREN'T WORKING. THE LOWER AN YOU WILL AR WOULD 16:43:30 NOT CLOSE AND THE UPPER AN NEWELL AR WAS NOT IN A 16:43:36 WELL-CONTROLLED EVENT. WE KNOW BP WAS AWARE OF THIS 16:43:38 BECAUSE TRANSOCEAN AND IT'S DOCUMENT NUMBER 12 IN OUR BINDER 16:43:41 REFLECTS CONFERENCE CALLS ABOUT THE PROBLEMS WITH BP WITH THE 16:43:45 BLOWOUT PREVENTER. TRANSOCEAN ESTIMATES THAT THE 16:43:50 ESTIMATED IS A CONSERVATIVE TEN DAYS AT 444,111 PER DAY OR $4.4 16:44:00 MILLION AS IT'S SHOWN. SO HOW CAN YOU SAY BLOWOUT 16:44:04 PREVENTERS ARE FAIL SAFE DEVICES WHEN THE BLOWOUT PREVENTER THAT 16:44:07 YOU WERE USING IN NOVEMBER HAD TO BE REMOVED BECAUSE OF 16:44:11 MALFUNCTION? OF COURSE, THE ANSWER IS THEY 16:44:13 ARE THE FAIL SAFE MECHANISM AND WHEN PROBLEMS ARE IDENTIFIED 16:44:18 WITH THEM THEY'RE EXERCISED AND I BELIEVE THAT IS WHAT HAD TAKEN 16:44:22 PLACE. BUT, YOU KNOW -- YOU CAN'T 16:44:27 HAVE IT BOTH WAYS HERE. THIS ACCIDENT OCCURS. 16:44:30 YOU HAVE A BLOWOUT PREVENTER THAT YOU KNOW HAD 260 DIFFERENT 16:44:34 ERRORS IN IT AND YOU MODIFY IT AND YOU PULL IT IN NOVEMBER 2009 16:44:38 AND YOU SEE ALL KINDS OF PROBLEMS. 16:44:42 THIS HAPPENED HAPPENS. YOU WRITE THIS EDITORIAL IN THE 16:44:44 WALL STREET JOURNAL SAYING IT'S NOT OUR FAULT. 16:44:47 IT'S MECHANICAL. YOU SAID EARLIER AND THIS 16:44:49 ACCIDENT IS BECAUSE OF MECHANICAL FAILURE IN HUMAN 16:44:53 ERROR. IT SEEMS WE HAVE MORE HUMAN 16:44:55 ERROR THAN MECHANICAL BECAUSE THE MECHANICAL SAFEGUARD WASN'T 16:45:01 THE ULTIMATE FAIL SAFE. THEY CAN FAIL IN MANY WAYS AND 16:45:03 THAT'S EXACTLY WHAT WENT WRONG HERE AND THAT'S EXACTLY WHAT 16:45:07 HAPPENED ON THE 20th, CORRECT? WHAT IS CLEAR IS THE ULTIMATE 16:45:12 FAIL SAFE FAILED TO OPERATE IN THIS CASE. 16:45:14 THAT IS ABSOLUTELY CLEAR. WHY WOULD A COMPANY LIKE BP 16:45:18 WHEN DOING THE DEEP WATER DRILLING MODIFY THE FAIL SAFE IF 16:45:21 IT'S SUPPOSED TO PROTECT THE AMERICAN PEOPLE AND OUR 16:45:24 ENVIRONMENT, WHY WOULD YOU MODIFY IT AND INCREASE THE RISK 16:45:27 OF PROBLEMS? YOU MODIFIED IT AND THE 16:45:31 CONTRACTOR WARNED YOU ABOUT MODIFYING IT AND YOU STILL DID 16:45:35 IT. THAT'S THE PROBLEM WE'RE HAVING. 16:45:36 AS I SAID, THE BLOWOUT PREVENTER IS THE FAIL SAFE 16:45:40 MECHANISM. IT'S DESIGNED TO BE EXACTLY 16:45:41 THAT. QUESTIONS, MR. BRIDGES? 16:45:47 THANK YOU, MR. CHAIRMAN. MR. HAYWARD, IT'S BEEN A LONG 16:45:50 DAY. YOU SAID EARLIER, IF I RECALL 16:45:54 CORRECTLY, THAT EVERYONE IN YOUR ORGANIZATION IN THE CULTURE OF 16:45:59 SAFETY WOULD NOT ONLY HAD THE RIGHT TO CURTAIL OPERATIONS, BUT 16:46:04 THE OBLIGATION IF THEY SAW SOMETHING GOING ON THAT WAS NOT 16:46:08 SAFE, IS THAT CORRECT? THAT'S CORRECT. 16:46:10 AND IN RESPONSE TO A QUESTION FROM THE OTHER SIDE OF THE SIDE 16:46:15 AND I DON'T REMEMBER WHO ASKED IT, YOU ALSO MADE THE ASSERTION 16:46:18 THAT THE RIGHT PEOPLE WERE MAKING THE DECISIONS ON THE RIG. 16:46:22 DID I HEAR THAT CORRECTLY? BELIEVE THAT IS THE CASE. 16:46:24 WHO IS DONALD VEDRIN? HE'S THE -- HE'S THE WELL 16:46:31 SITE LEADER ON ONE -- ONE OF THE WELL SITE LEADERS ON THE 16:46:37 DEEPWATER HORIZON. HE WAS REFERRED TO IN A "WALL 16:46:41 STREET JOURNAL ARTICLE" AS THE COMPANY MAN ON THE DEEPWATER 16:46:46 HORIZON ON THE DAY OF THE BLOWOUT, CORRECT? 16:46:48 THAT'S CORRECT, YES. I DON'T KNOW IF YOU'RE 16:46:50 FAMILIAR WITH THE ARTICLE IN "THE WALL STREET JOURNAL" AND 16:46:54 THIS WAS MAY 27th, I BELIEVE, THEY TALKED ABOUT A SKIRMISH 16:46:57 BETWEEN SOME OF THE TRANSOCEAN FOLKS AND THE CHIEF ENGINEER OR 16:47:01 CHIEF MECHANIC ON THE DEEPWATER HORIZON AND THE RIG'S TOP 16:47:06 MANAGER, JIMMY HERALD, ARE YOU FAMILIAR WITH THAT DISCUSSION 16:47:11 THAT APPARENTLY WAS QUITE A HEATED DISCUSSION. 16:47:15 I THINK MR. GONZALEZES WAS ACTUALLY THE ONE THAT BROUGHT IT 16:47:18 UP. IT IS MY UNDERSTANDING, 16:47:21 CONGRESSMAN, THAT THAT ACCOUNT HAS BEEN CONTRADICTED UNDER OATH 16:47:25 ON THE MARINE BOARD INVESTIGATION AND THAT THERE WAS 16:47:27 NO DEBATE OR SKIRMISH OR ANY OTHER HEATED DISCUSSION. 16:47:33 THAT IS WHAT I CAN'T RECALL EXACTLY WHO IT WAS, BUT UNDER 16:47:36 OATH, AT THE MARINE BOARD INVESTIGATION, I BELIEVE IT WAS 16:47:40 THE TRANSOCEAN THAT TESTIFIED THAT THERE WAS NO EITHER HEATED 16:47:44 DISCUSSION OR DEBATE OR ANYTHING ELSE. 16:47:47 THAT WOULD BE THE TOOL PUSHER? 16:47:49 I BELIEVE THAT'S THE CASE. IT WASN'T DEWEY RIVET BECAUSE 16:47:54 HE DIED IN THE ACCIDENT AND HE WAS ONE OF THE OTHER WITNESSES 16:47:58 TO THE ALTERCATION. WELL, YOU KNOW, IF THIS OCCURRED 16:48:05 EVEN IF IT ONLY PARTIALLY OCCURRED IT SEEMS THAT THERE WAS 16:48:09 ENOUGH DISCUSSION THAT SOMEONE SAID WAIT, LET'S NOT GO FORWARD 16:48:14 BECAUSE SOME OF OUR NUMBER FEEL IT'S UNSAFE AND AGAIN, YOU SAID 16:48:17 THAT THE MAN WOULD HAVE THE OBLIGATION, NOT JUST THE RIGHT 16:48:20 TO SAY LET'S HALT. HE'D HAVE THE OBLIGATION TO SAY, 16:48:24 WELL, LET'S GET EVERYONE ON THE SAME PAGE WITH THIS. 16:48:26 AM I WRONG TO ASSUME THAT? YOU ARE NOT WRONG, AND I 16:48:30 THINK YOU CAN ONLY CONCLUDE THEY ALL BELIEVE THAT IT WAS RIGHT TO 16:48:32 PROCEED. ARE WE EVER GOING TO GET A 16:48:35 CHANCE TO TALK TO MR. VEDRIN? WOULD BP MAKE HIM AVAILABLE TO 16:48:43 OUR COMMITTEE? IF YOU CALL HIM, OF COURSE. 16:48:46 LET ME ASK YOU ANOTHER QUESTION. 16:48:47 YOU SAID IN RESPONSE TO SOME INFORMATION THAT CAME UP THAT 16:48:50 THERE WAS NO EVIDENCE THAT BP WAS FOCUSING ON THE COST OF 16:48:58 DRILLING AND MARCH 2010 STRATEGY PRESENTATION YOU STATED THAT WE 16:49:05 ADDED EXPLORATION RESOURCES EFFICIENTLY AND OUR COST WAS 16:49:08 $1.40 PER BARREL IN 2009. THIS IS CONSISTENT WITH OUR 16:49:11 TRACK RECORD OVER THE LAST FIVE YEARS OF HAVING THE LOWEST 16:49:15 DISCOVERY COSTS IN THE INDUSTRY. CERTAINLY THAT WOULD BE ENVIABLE 16:49:19 EXCEPT IN A CULTURE OF SAFETY, I MEAN, I MIGHT SPEND $1.45 OR 16:49:26 $1.47 INSTEAD OF THEIR 1.40 IF IT MEANT THAT IT WAS A SAFE 16:49:31 PROCEDURE. SO WAS MAINTAINING THE LOWEST 16:49:33 COST DISCOVERY IN THE INDUSTRY POSSIBLY A FACTOR IN THE 16:49:37 DECISION MAKING ON THIS WELL? NONE WHATSOEVER. 16:49:40 THAT METRIC IS CREATED BY DECIDING THE HOLLUMS OF BARRELS 16:49:48 DISCOVERED BY THE COST AND WHAT IT TALKS TO IS WHAT WE 16:49:55 DISCOVERED AND NOT ANYTHING TO DO WITH COSTS. 16:49:57 WELL, BUT IT DOES HAVE SOMETHING TO DO WITH COSTS. 16:50:01 IT'S BEEN REPORTED THAT COMPLETION OF THE MANCODO WELL 16:50:13 WAS RUNNING BEHIND SCHEDULE. IT WAS RUNNING BEHIND 16:50:14 SCHEDULE. HOW FAR BEHIND SCHEDULE? 16:50:16 I DON'T KNOW THE NUMBER. WHAT DOES IT COST? 16:50:19 PROBABLY $1 MILLION A DAY OR THERE ABOUTS. 16:50:24 EACH A COUPLE A DAY IS A COST DRIVER ON THAT $1.40 A BARREL 16:50:29 MINIMAL DISCOVERY COST IN THE INDUSTRY. 16:50:31 WITH RESPECT, CONGRESSMAN, THE MOST IMPORTANT THING WAS 16:50:35 THAT ACTUALLY WE MADE A DISCOVERY AND WE WANTED TO 16:50:38 SECURE IT IN THE PROPER WAY AND THAT WAS GOING TO BE A FAR 16:50:41 BIGGER DRIVER OF ANYTHING, ANY VALUE THAT THE COMPANY IS GOING 16:50:45 TO CREATE THAN CREATE THAN THE COSTS OF THE OPERATION. 16:50:47 I DON'T DISAGREE -- I DON'T DISAGREE WITH THAT, BUT OH, HOW 16:50:51 I WISH THAT HAD BEEN THE CASE, AS WE'RE, HEARING AFTER HEARING 16:50:57 AND THE DARN THING IS STILL BUBBLING DOWN AT THE BOTTOM OF 16:51:00 THE GULF. THAT DOESN'T SEEM TO BE 16:51:02 ACCURATE. IS YOUR OWN INVESTIGATION 16:51:04 LOOKING AT THE ISSUE OF WHETHER OR NOT COST DRIVERS WERE AN 16:51:09 ISSUE IN THE PROBLEMS THAT WERE CREATED? 16:51:12 OUR INVESTIGATION IS COVERING EVERYTHING. 16:51:17 SO IT WASN'T ON YOUR LIST BUT NEVERTHELESS, IT WILL BE 16:51:20 INCLUDED IN YOUR -- WELL, MY LIST IS THE -- THE 16:51:26 EARLY FINDINGS OF THE INVESTIGATION IN TERMS OF THE 16:51:29 KEY AREAS TO FOCUS ON. AREAS AROUND CEMENT, CASING, 16:51:40 INTEGRAL PROCEDURES. I GOT IT. 16:51:42 WHEN YOU SAID YOUR INVESTIGATION WAS PROCEEDING WITHOUT PRIVILEGE 16:51:45 EARLY ON IN THE HEARING TODAY IT WOULD ALSO COVER ISSUES OF 16:51:48 WHETHER OR NOT COST DRIVERS WERE AN ISSUE IN CREATING THE 16:51:51 PROBLEM? IT WILL COVER EVERYTHING. 16:51:54 THANK YOU, MR. CHAIRMAN. I JUST ECHO WHAT MR. SCALISE 16:52:03 SAID EARLIER. PEOPLE HAVE CALL WITH IDEAS 16:52:06 THOUSAND FIX THE GULF. I WISH YOU'D OPEN UP AN 800 16:52:10 NUMBER AND TAKE THESE THINGS AND VENT THEM AND LISTEN TO WHAT 16:52:13 PEOPLE ARE SAYING. AMERICANS ARE TERRIBLY, 16:52:16 THEY'RE -- WE HAVE A LOT OF ENG N 16:52:24 INGENUITY AND PEOPLE ARE WATCHING, WHAT EVERYONE'S 16:52:27 COMMUTER SCREEN SHOWED, IT'S DRIVING PEOPLE CRAZY TO WATCH 16:52:30 THAT BUBBLING IN THE GULF. PEOPLE ARE COMING TO US WITH 16:52:33 SOLUTIONS IN RESPECT NEEDS TO BE A CENTRAL LOCATION. 16:52:36 I DON'T CARE WHETHER IT'S YOU, DR. CHU, BUT SOMEBODY NEEDS TO 16:52:40 BE VETTING THESE THINGS AND IF THERE IS A REASONABLE OUT THERE, 16:52:44 PUT IT TO WORK. THANK YOU. 16:52:47 MR. MARKEY FOR QUESTIONS. THANK YOU. 16:52:51 MR. HAYWARD, IS THE MOST OPTIMISTIC DAY FOR COMPLETION 16:52:55 STILL AUGUST? THAT IS CURRENT TIME TABLE. 16:52:58 IS AUGUST ALSO THE EARLIEST DATE THE LEAK CAN BE STOPPED? 16:53:02 OR WILL IT TAKE MORE TIME AFTER THE RELIEF WELL IS COMPLETE 16:53:06 BEFORE THE FLOW OF OIL IS PERMANENTLY HALTEDED? 16:53:09 THE RELIEF OIL WILL HALT PERMANENTLY THE FLOW. 16:53:14 MR. HAYWARD IN 2009, AND INDEPENDENT FIRM THAT BP HIRED 16:53:19 TO SERVE AS ITS OMBUDSMAN ED HEADED BY JUDGE STANLEY, 16:53:27 SUBSTANTIATED BP WAS VIOLATING ITS OWN POLICIES BY NOT HAVING 16:53:29 COMPLETED ENGINEERING DOCUMENTS ONBOARD ANOTHER BP RIG OPERATING 16:53:36 IN THE GULF OF MEXICO. THE BP ATLANTIS, WHEN IT BEGAN 16:53:42 OPERATING IN 2007. ONE BP OFFICIAL WARNED THAT THE 16:53:46 ABSENCE OF THE SAFETY DOCUMENTS COULD LEAD TO CATASTROPHIC 16:53:50 OPERATOR ERROR. LET ME READ TO YOU FROM AN 16:53:54 INTERNAL BP E-MAIL. AND THIS GOES FROM BARRY DUFF, 16:54:00 BP EMPLOYEE, TO OTHER ENGINEERS AT BP. 16:54:04 HERE WRAP HE SAID -- HE SAID, THE P AND IDs FOR SUB C 16:54:11 ARE NOT COMPLETE AND NOT APPROVED OR HANDED OBER TO 16:54:14 OPERATIONS. THE CURRENT PROCEDURES ARE OUT 16:54:17 OF DATE. THE RISK IN TURNING OVER 16:54:21 DRAWINGS TO THE PEOPLE OUT ON THE RIG RUNNING THE ATLANTIS 16:54:26 THAT ARE NOT COMPLETE ARE, NUMBER ONE, THE OPERATOR, THE BP 16:54:30 OPERATOR, WILL ASSUME THE DRAWINGS ARE ACCURATE AND 16:54:34 UP-TO-DATE. THIS COULD LEAD TO CATASTROPHIC 16:54:38 OPERATOR ERRORS DUE TO THEIR ASSUMING THE DRAWING IS CORRECT. 16:54:42 TURNING OVER INCOMPLETE DRAWINGS TO THE OPERATOR, THE BP R 16:54:45 OPERATOR, FOR THEIR USE IS A FUNDAMENTAL VIOLATION OF BASIC 16:54:52 DOCUMENT CONTROL. HAVING THE PROJECT DOCUMENT 16:54:55 CONTROL PERSON TURN OVER DRAWINGS THAT ARE NOT COMPLETE 16:54:59 PLACES THE ONUS ON HER, THAT THEY ARE THE MOST CURRENT 16:55:03 VERSION CURRENTLY THERE ARE HUNDREDS IF NOT THOUSANDS OF SUB 16:55:08 C DOCUMENTS THAT HAVE NEVER BEEN FINALIZED, YET THE FACILITIES 16:55:14 HAVE BEEN TURNED OVER. MR. HAYWARD, BP'S MANAGING 16:55:20 ATTORNEY STATED TO THE ASSOCIATED PRESS ON MAY 15th OF 16:55:23 THIS YEAR THAT BP HAS REVIEWED THE ALLEGATIONS AND FOUND THEM 16:55:27 TO BE UNSUBSTANTIATED. MR. HAYWARD, WERE ALL OF THE 16:55:32 ENGINEERING DOCUMENTS AND DRAWINGS NECESSARY TO OPERATE 16:55:35 THE ATLANTIS RIG SAFELY AND FULLY COMPLETED BEFORE THE 16:55:42 ATLANTIS RIG BEGAN OPERATING IN THE GULF OF MEXICO? 16:55:44 WHEN THIS ISSUE EMERGED, WE CONDUCTED A FULL INVESTIGATION, 16:55:47 AND DETERMINED THAT ALL OF THE DRAWINGS THAT WERE NECESSARY TO 16:55:53 START UP THE OPERATION WERE AVAILABLE TO THE PEOPLE STARTING 16:55:57 UP THE OPERATION AT THE TIME THE OPERATION STARTED UP. 16:56:00 MR. HAYWARD, MR. DUFF WAS RELIEVED OF HIS DUTIES IN THE 16:56:06 MIDDLE OF AUGUST OF 2008. A NEW PERSON WAS PUT IN CHARGE 16:56:11 AS A RESULT. HIS NAME IS KEN ABBOTT. 16:56:15 KEN ABBOTT HAS BEEN TESTIFYING ALL DAY IN WASHINGTON ACROSS THE 16:56:18 STREET IN THE NATURAL RESOURCES COMMITTEE. 16:56:21 SHEA WHISTLE-BLOWER. HE GOT FIRED SIX MONTHS AFTER HE 16:56:29 REPLACED MR. DUFF BECAUSE HE RAISED THE VERY SAME CONCERNS, 16:56:32 THAT THERE WAS NOT PROPER DOCUMENTATION ON THE BP 16:56:35 ATLANTIS. HE WAS FIRED. 16:56:41 EVEN THOUGH HE RAISED ISSUES THAT OBVIOUSLY HAVE A LOT OF 16:56:46 RESEMBLANCE TO THE KIND OF ATTENTION TO THE SAFETY 16:56:51 PROTOCOLS THAT WERE PART EVER THE BP HORIZON RIG. 16:56:54 IS IT PART OF YOUR POLICY, MR. HAYWARD, TO FIRE EMPLOYEES WHO 16:57:02 RAISE QUESTIONS ABOUT THE SAFETY OF YOUR RIGS? 16:57:04 NO, IT IS NOT. WELL, MR. HAYWARD, I'M AFRAID 16:57:09 THAT THAT'S WHAT HAPPENED TO MR. ABBOTT. 16:57:12 BECAUSE NOT ONLY WAS HE FIRED, BUT TWO WEEKS LATER, THEY PUT 16:57:16 OUT, AND WAS TOLD THAT HE WAS JUST PART OF A FORCE REDUCTION, 16:57:20 BUT YOUR COMPANY THEN PUT OUT AN ADVERTISEMENT TO HIRE SOMEONE, 16:57:24 TO REPLACE HIM ON THAT JOB. EARLIER YOU SAID ALL OF THE 16:57:30 OTHER BP WELLS IN THE GULF OF MEXICO, THAT HAD BEEN COMPLETED 16:57:36 ARE SECURE AND ARE SAFE TO OPERATE. 16:57:39 DO YOU STILL STAND BY THAT? I DO. 16:57:42 NOW, DO YOU KNOW THAT JUDGE SPORKIN SAID THAT IT IS NOT TRUE 16:57:47 THAT THE DOCUMENTS WERE COMPLETED WHEN HE SUBSTANTIATED 16:57:52 MR. ABBOTT'S ALLEGATIONS? SO HOW DO YOU ACCOUNT FOR THAT, 16:57:56 IF YOU HIRE AN OMBUDSMAN, HE'S A FORMER FEDERAL DISTRICT COURT 16:58:00 JUDGE, HE COMES IN. HE DOES THE EVALUATION AND HE 16:58:05 SUBSTANTIATES THE WHISTLE-BLOWER'S ALLEGATIONS. 16:58:07 HOW DO YOU IN ANY WAY JUSTIFY THEN FIRING THE PERSON WHO 16:58:13 ACTUALLY BROUGHT THESE ISSUES TO YOUR ATTENTION? 16:58:16 AS I SAID, THE INVESTIGATION CONCLUDED THAT THE DRAWINGS 16:58:21 NECESSARY FOR START-UP WERE ON THE ATLANTIS FACILITY JUST 16:58:29 LOOKING AT OUR OMBUDSMAN IS INVESTIGATING THE ISSUE OF 16:58:33 UNFAIR DISMISSAL, WHICH IS QUITE APPROPRIATE. 16:58:36 WELL, I ASK FOR TO YOU PROVIDE A COPY OF THE 16:58:40 INVESTIGATION, WHICH YOU'RE CONDUCTING, MR. HAYWARD. 16:58:44 FOR THE RECORD. WE CAN DO THAT. 16:58:45 OKAY. WE WILL PUT THAT IN THE RECORD. 16:58:47 I THINK, MR. HAYWARD, THAT THE ONLY THING WORSE THAN ONE BP RIG 16:58:55 AT THE BOTTOM OF THE OCEAN IN THE GULF OF MEXICO WOULD BE TWO 16:58:59 BP RIGS AT THE BOTTOM