Q-R CONTROVERSY INTERVENTION (not negotiations, government info, speed intervened
A2 / France 2
UK Libya 2 - New letters on UK-Libyan ties outrage IRA victims; reax; Brown
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.
US Lockerbie
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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BP oil spill: bill of 6 billion and more
A2 / France 2
Tonight (or never!): [broadcast of June 15, 2010]
FR3 / France 3
Iraq Oil - Government signs deal with British-Chinese consortium
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.
Iraq Auction 2 - Petronas/Japex consortium wins bid in Iraqi oil auction
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.
8 p.m.: [broadcast May 18, 2010]
A2 / France 2
+UK BP 2
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
8 p.m.: [broadcast May 13, 2010]
A2 / France 2
UK BP 2
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
TF1 20 hours: [show of 03 May 2010]
TF1 News (Private - August 1982 ->)
House Energy Hearing with Tony Hayward / Switched / 1600-1700
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
House Energy Hearing with Tony Hayward / Committee / 1600-1700
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
House Energy Hearing with Tony Hayward / Witness / 1600-1700
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
Gulf Oil Spill Hearing 1000-1100
gulf oil spill The Oversight and Investigations Subcommittee of House Energy and Commerce holds a hearing with Lamar Mckay, President and Chair of BP America Inc., Steve Newman, President and CEO, Transocean ltd., Timothy Probert, of Halliburton and others SPEAKERS: REP. BART STUPAK, D-MICH. CHAIRMAN REP. BRUCE BRALEY, D-IOWA REP. EDWARD J. MARKEY, D-MASS. REP. DIANA DEGETTE, D-COLO. REP. GENE GREEN, D-TEXAS REP. MIKE DOYLE, D-PA. REP. JAN SCHAKOWSKY, D-ILL. REP. MIKE ROSS, D-ARK. DEL. DONNA M.C. CHRISTENSEN, D-VIRGIN IS. REP. PETER WELCH, D-VT. REP. BETTY SUTTON, D-OHIO REP. JOHN D. DINGELL, D-MICH. EX OFFICIO REP. HENRY A. WAXMAN, D-CALIF. EX OFFICIO REP. GREG WALDEN, R-ORE. RANKING MEMBER REP. NATHAN DEAL, R-GA. REP. GEORGE RADANOVICH, R-CALIF. REP. JOHN SULLIVAN, R-OKLA. REP. MICHAEL C. BURGESS, R-TEXAS REP. MARSHA BLACKBURN, R-TENN. REP. PHIL GINGREY, R-GA. REP. JOE L. BARTON, R-TEXAS EX OFFICIO WITNESSES: LAMAR MCKAY, PRESIDENT AND CHAIRMAN, B.P. AMERICA, INC. STEVE NEWMAN, PRESIDENT AND CEO,TRANSOCEAN LTD. TIMOTHY PROBERT, PRESIDENT,GLOBAL BUSINESS LINES, CHIEF HEALTH, SAFETY AND ENVIRONMENTAL OFFICER,HALLIBURTON JACK MOORE, PRESIDENT AND CEO,CAMERON 10:01:50 STUPAK: This meeting will come to order. Today we have a hearing titled Inquiry into Deep Water Horizon Gulf Coast Oil Spill. We have a number of members present for this hearing who are not members of the subcommittee but are members of the full committee. We welcome them, and I note that they will be allowed to submit written statements for the record. But I will not -- but they will not be allowed to deliver verbal opening statements. In addition, after all subcommittee members complete their questioning, full committee members will be allowed to ask questions. Members who are not on the subcommittee or full committee are welcome to observe, but they will not be permitted to give a verbal opening statement or ask questions due to time constraints. The chairman, ranking member and chairman emeritus will now be recognized for a 10-minute opening statement. Other members of the subcommittee will be recognized for a three-minute opening statement. I yield to the chairman of the full committee, Mr. Waxman, for an opening statement. 10:02:51 WAXMAN: Thank you very much. Last month a blowout occurred on an oil rig drilling in deep water off the Gulf of Mexico. Eleven people lost their lives, and an environmental calamity is now unfolding in the Gulf as oil gushes from the well and threatens the coast. We're here today to begin the process of understanding what went wrong and what we need to do to prevent future catastrophes. The investigation is at its early stage, but already we have learned some key facts. B.P., one of the world's largest oil companies, assured Congress and the public that it could operate safely in deep water and that a major oil spill was next to impossible. We now know those assurances were wrong. Halliburton, one of the world's largest oil service companies, says that it had secured the well through a procedure called cementing and that the well had passed a key pressure test. But we now know this is an incomplete account. The well did pass positive pressure tests, but there is evidence that it may not have passed crucial negative pressure tests. According to a senior B.P. official, "Significant pressure discrepancies were observed in at least two of these tests, which were conducted just hours before the explosion." Transocean, one of the world's largest operator of drilling rigs, says it has no reason to believe that the rig's fail-safe device, called a blowout preventer, was not fully operational. But we have learned from Cameron, the manufacturer of the blowout preventer, that the device had a leak in a crucial hydraulic system and a defectively configured ram. And we know there are major questions about the effectiveness of B.P.'s response to the spill. The company said it could manage a spill of 250,000 barrels a day. Yet it's struggling to cope with this blowout, which is releasing only 5,000 to 25,000 barrels a day. The more I learn about this accident, the more concerned I become. This catastrophe appears to have been caused by a calamitous series of equipment and operational failures. If the largest oil and oil service companies in the world had been more careful, 11 lives might have been saved and our coastlines protected. It's dangerous to drill for oil a mile below the ocean's surface. An accident can wreak environmental havoc that destroys livelihoods and imperils fish and wildlife. The oil companies make billions of dollars from taking these risks, but they don't bear the full cost when something goes drastically wrong. In the course of our investigation we have received over 100,000 pages of documents. The story that these documents and our interviews tell us is a complicated one. At this early stage in the investigation we have far more questions than answers. But we have learned some important facts which Chairman Stupak, Chairman Markey and I will describe in our statements. There are four principle areas of inquiry that our committee is pursuing. The first involves questions related to well integrity. We know there was a failure of the well because gas surged up the riser and exploded on the rig. We will be investigating what caused the breach in well integrity and who was responsible. The second area of inquiry involves what happened on the Transocean drill rig. There are pressure monitors on the rig that feed information constantly to the drill operators. And there are panels on the rig that control the operations of the blowout preventer and the drill string. We'll be examining what the drill operators knew and what decisions they made. In the rest of my statement I'll discuss what we've learned about these two areas of the inquiry. Our third area of inquiry involves the blowout preventer, which is also called the BOP. This is supposed to be the last line of defense against a blowout of the well. But it failed. We have learned a lot about the blowout preventer. And Chairman Stupak will summarize this part of our investigation. The final area of inquiry involves the response of B.P. and other companies to the spill. They promised to contain any spill, but they're not succeeding. Chairman Markey, who chairs our Energy Subcommittee and the Select Committee on Energy Independence, will cover this area of our inquiry in his opening statement. We recently received a document from B.P. called, "What We Know." It was prepared on May 6th. And it summarizes what B.P. knew about the spill at that time. And I want to focus on the first four bullets. I also ask unanimous consent, Mr. Chairman, that this document and other documents cited during this hearing be made part of the official hearing record. STUPAK: Without objection, so be it. WAXMAN: The first bullet says, quote, "Before, during or after the cement job an undetected influx of hydrocarbons entered the well bore," end quote. What this means is that there was a breach somewhere in the well integrity that allowed methane gas and possibly other hydrocarbons to enter the well. The second bullet says, "A 9 7/8 inch casing was tested. The 9 7/8 casing hanger packoff was set and tested. And the entire system was tested," end quote. B.P. explained to us that this refers to a positive pressure test in the well. What this means is if fluids were injected in the well to increase the pressure and to monitor whether the well would retain its integrity. The well passed this test. Rigs like deep water Horizon keep a daily drilling report. And Transocean has given us the report for April 20th, the day of the explosion. It's an incomplete log because it ends at 3:00 in the afternoon, about seven hours before the explosion. But it confirms that the three positive pressure tests were conducted in the morning to the early afternoon. The next bullet says, quote, "After 16 and-a-half hours waiting on cement, a test was performed on the well bore below the blowout preventer," end quote. B.P. explained to us what this means. Halliburton completed cementing the well at 12:35 a.m. on April 20. And after giving the cement time to set, a negative pressure test was conducted around 5 p.m. This is an important test. During a negative pressure test, the fluid pressure inside the well is reduced and the well is observed to see whether any gas leaks into the well through the cement of casings. According to James Dupree, the B.P. senior vice president for the Gulf of Mexico, the well did not pass this test. Mr. Dupree told committee staff on Monday that since test results was not satisfactory and inconclusive, significant pressure discrepancies were recorded. As a result, another negative pressure test was conducted. This is described in the fourth bullet. During this test, 1,400 PSI was observed on the drill pipe while 0 PSI was observed on the kill and the choke lines. According to Mr. Dupree, this is also an unsatisfactory test result. The kill and choke lines run from the drill rig 5,000 feet to the blowout preventer at the sea floor. The drill pipe runs from the drill rig through the blowout preventer deep into the well. In the test the pressures measured at any point from the drill rig to the blowout preventer should be the same in all three lines. But what the test showed was that the pressures in the drill pipe were significantly higher. Mr. Dupree explained that the result could signal that an influx of gas was causing pressure to mount inside the well bore. Another document provided by B.P. to the committee is labeled, "What Could Have Happened." It was prepared by B.P. on April 26th, 10 days before the first document. And according to B.P., it's their understanding of the cause of the spill has evolved considerably since April 26th, so this document should not be considered definitive. But it also describes the two negative pressure tests and the pressure discrepancies that were recorded. What happened next is murky. Mr. Dupree told the committee staff that he believed the well blew moments after the second pressure test. But lawyers for B.P. contacted the committee yesterday and provided a different account. According to B.P.'s counsel, further investigation has revealed that additional pressure tests were taken and at 8 p.m., company officials determined that the additional results justified ending the test and proceeding with well operations. This confusion among B.P. officials appears to echo confusion on the rig. Information reviewed by the committee describes an internal debate between Transocean and B.P. personnel about how to proceed. What we do know is that shortly before 10 p.m. just two hours after well operations apparently resumed, gas surged from the well up the riser, and the rig exploded in a fireball. This hearing and future hearings the committee will conduct in the coming weeks will explore these questions. Our goal is to learn what caused the fatal explosion so that Congress and the executive branch can act to prevent future disasters. But as we focus on these narrow questions on what happened and why, we also need to keep the broader perspective in mind. Our national energy policy is broken, and nothing illustrates this better than this massive spill. Our dependence on oil and other fossil fuels is fouling our beaches, polluting our atmosphere and undermining our national security. One lesson is already apparent from the catastrophe in the Gulf. We need an energy policy that emphasizes clean, renewable sources of energy. Now, we can't snap our fingers and transform our energy economy overnight. If we do not have the courage to take on the oil companies and take decisive steps to reduce our over-reliance on oil when the consequences of doing nothing are so clear, we may never start down the path toward a clean energy economy. Mr. Chairman, I look forward to today's hearing. And I thank the witnesses for appearing and for their cooperation in the investigation. STUPAK: Thank you, Mr. Chairman. Next, I'll go to Mr. Barton, ranking member of the full committee, for an opening statement. Your opening statement, please? 10:15:09 BARTON: Thank you. Thank you, Chairman Stupak. I'm going to submit my -- my written statement for the record and -- and speak extemporaneously, because I think, based on what Chairman Waxman just said, we need to kind of set the parameters. There is nobody on either side of the aisle in this subcommittee or the full committee that doesn't want to get the facts on the table about what happened down in the Gulf of Mexico approximately a month ago, why it happened, what can be done to prevent it happening in the future, and remediate any damages, both human and environmental. The 11 people that lost their lives is the primary tragedy. The fact that 5,000 barrels a day of oil is -- is spilling out of the -- of the well and -- and coming to the surface and beginning to wash up on some of the beaches in Louisiana and Alabama is a problem, but it is a problem that can be remediated. I want to focus on some of the things that Chairman Waxman said right at the end of his statement when he made the comment that, if we can't take on the oil industry -- as if this was some sort of an adversarial situation between the people and the industry. Nothing could be further from the truth. The United States of America is the greatest nation in the world because we're based on the premise of freedom for every individual in this country. That freedom is enunciated in the Declaration of Independence. Our founding fathers had the foresight and the wisdom -- and so far, our political leadership the last 200 years -- and said the best way to protect our freedoms is to provide maximum economic opportunity through a free-market capitalistic system. We are one of the few nations in the world that have let the private sector develop our natural resource base. That has given us the most productive economy, the largest economy -- literally, the United States economy by itself is approximately a third of the total world's gross product. That is not a consequence of government. It is a consequence of free men and women exercising free choices to maximize their opportunity and in so doing create economic opportunity for everybody in the world. We're in a situation now where if we're going to have additional domestic energy production in a way that maintains our existing lifestyle, it is going to be because we develop our natural esource base both onshore and offshore. I have absolutely no problem with -- with -- with the alternative energy sources, whether it be solar, wind, ethanol, hydro, you name it. But there's a reason that we're an oil-based economy. It's because that barrel of oil refined into all the products that flow from it have a tremendous, tremendous productivity potential. You can take a gallon of gasoline and you can power a 4,000-pound car with four adults in it at 60 miles an hour in air-conditioned comfort down the highway all the way from New York City to Los Angeles, California. Now, we do not want on either side of the aisle to have people have to import more and more foreign oil. Whether we like it or not, the only real place to find significant additional oil deposits in meaningful quantities is in the Outer Continental Shelf. Now, we've had an accident. It is not an act of God. The amount of -- of pressure, the amount of gas and oil that came up that borehole is something that was foreseeable. It is something that could have been and should have been contained. The blowout prevention equipment that was on that rig had a design capacity that should have controlled that explosion. It didn't. The facts that we have uncovered in this investigation through the documents that have been provided show that there was, in all probability, shoddy maintenance, there were mislabeled components, the diagrams didn't depict the actual equipment. But that was not an act of God like a hurricane or an earthquake or a volcano that man can't control. Now, through the efforts of this subcommittee and the full committee and some of the other committees, we'll get to the bottom of it. We'll find out the facts, and we'll take corrective measures to prevent that from happening in the future, whether it's legislatively or regulatorily or through best practices changes by the industry. But what we should not do, Mr. Chairman, is make a decision to fence off the Outer Continental Shelf, to use this as the equivalent of the Three Mile Island accident for nuclear power and set back domestic oil and gas production in the Outer Continental Shelf for the next 20 or 30 years. That would not only be a mistake, in my opinion; it would be a disservice to the American people. So I don't want to take on the industry. I want to work with the industry. I want to work with the Congress. I want to find out what the problem was. I want to solve that problem, and I want to move forward. I don't want the United States of America to continue to import 12 million to 14 million barrels of oil a day. That one well in the gulf, although British Petroleum has not been explicit, that one well probably has the potential to produce 50,000 barrels of oil a day. To put that in perspective, there are a million oil wells producing -- onshore in Texas producing 200,000 -- producing a million barrels of oil. That's five barrels a day per well in Texas. This one well -- this one well is the equivalent to 10,000 oil wells in Texas. That one well in full production is 1 percent to 2 percent of the production capacity existing in the Gulf of Mexico today. Mr. Chairman, we can't fence that off. We can correct the problem. We can prevent the problem. We can try to change the technology. But do not use this hearing, use this -- use this accident as an excuse to take away from the American people the -- probably the biggest domestic energy resource we yet have to develop on the North American continent. With that, Mr. Chairman, I yield back the balance of my time, and I look forward to hearing from the witnesses. 10:22:32 STUPAK: Thank you, Mr. Barton. I'll do my opening statement now. Three years ago, almost to the day, this subcommittee held a hearing into British Petroleum's disasters at Texas City and on the north slope of Alaska. The 2005 Texas City refinery explosion resulted in the death of 15 workers and injured more than 170 people. As a result of that accident and B.P.'s failure to correct potential hazards faced by employees at Texas City, OSHA has twice slapped B.P. with record-setting fines totaling more than $100 million. Several reports criticized management at the Texas City facility, including B.P.'s own 2007 Report of the Management Accountability Project, which stated, and I quote, "A culture that evolved over the years seemed to ignore risk, tolerated non- compliance, and accepted incompetence," end of quote. In March of 2006, B.P. discovered their pipeline on Alaska's North Shore -- North Slope -- excuse me -- North Slope had spilled more than 200,000 gallons of oil on the tundra, making it the largest spill in North Slope history. Our hearings discovered that significant cost-cutting measures resulted in decreased maintenance and inspections of the pipeline, and B.P.'s management culture deterred individuals from raising safety concerns. Since our last hearing, B.P. has experienced continual problems on the North Slope. September 29, 2008, an eight-inch high-pressure gas line at the Y-Pad location separated, sending three pieces of pipe to the tundra. One segment of the pipe landed 900 feet from the pipeline. Roughly 30 minutes later, a second and unrelated incident occurred on the S-Pad, where there was a gas release. January 15, 2009, a disc cleaning pig became lodged and lost in a 34-inch oil transit line during de-oiling, allowing gas to pass around the pig and travel through Skid 50, to pump station number one, causing a significant venting of gas into the atmosphere and the complete shutdown of the Trans-Alaska Pipeline. October 10, 2009, at the central compressor plant, low-pressure flare staging valves were stuck closed, causing gas to travel to the backup low pressure flare valves, which activated, caused the gas to vent to the atmosphere, which could have caused an explosion. November 28, 2009, an 18-inch three-phase common line near the Lisburne production center carrying a mixture of crude oil, produced water and natural gas ruptured, spraying its contents over an estimated 8,400 square feet. In addition to these pipeline incidents, there have been several personal injury accidents where employees have been seriously injured or killed, as was the tragic case of Mike Phalen on November 18th when he was crushed between the pipeline and a truck. Today we're here to investigate the latest B.P. tragedy, one which has resulted in the loss of 11 lives and is well on its way to becoming one of the largest oil spills in our nation's history. Let me take a moment on behalf of the entire committee to convey our deepest sympathies to the family, friends and coworkers of those 11 individuals lost on that fateful day. On April 20th, an explosion and fire occurred on the Deepwater Horizon drilling rig which B.P. was leasing to drill an exploratory well in the Gulf of Mexico. The rig was owned and operated by Transocean, the world's largest offshore drilling company, and was under contract from B.P. On April 22nd, the rig capsized and sank to the floor of the ocean, resulting in oil leaks from three separate locations among the twisted wreckage. The world is wondering: What went wrong to allow explosive gas to shoot out of the drill pipe on the Deepwater Horizon causing the explosion? We heard Chairman Waxman discuss theories of what may have gone wrong in the well and what went wrong on the rig. I'd like to take a few minutes to discuss issues related to the blowout preventer, a BOP, which was the "failsafe system" to cut off the flow of oil and gas to the rig. In his testimony today, Mr. Lamar McKay, the president of B.P. America, says that blowout preventers are, and I quote, "intended to be fail safe," end of quote. But that didn't happen. The blowout preventer used by the Deepwater Horizon rig failed to stop the flow of gas and oil, the rig exploded, and an enormous oil spill is now threatening the Gulf Coast. We know that the blowout preventer, the BOP, did not properly engage. The BOP has multiple rams that are supposed to slam shut to pinch off any flow around the drill pipe and stop the flow of oil from the well. There are also shear rams in the BOP that are supposed to cut and seal the pipe to prevent oil and gas from flowing. The question we will ask is, why did these rams fail? Our investigation is at its early stages, but already we've uncovered at least four significant problems with the blowout preventer used on the Deepwater Horizon drill rig. First, the blowout preventer had a significant leak in a key hydraulic system. This leak was found in the hydraulic system that provides emergency power to the shear -- to the shear rams, which are the devices that are supposed to cut the drill pipe and seal the well. I'd like to put on the screen a document that the committee received from B.P. This document states, "Leaks have been discovered in the BOP hydraulics system." The blowout preventer was manufactured by Cameron. We asked a senior official at Cameron what he knew about these leaks. He told us, when the remote operating vehicles tried to operate the shear rams, they noticed a loss of pressure. They investigated this by injecting dye into the hydraulic fuel, which showed a large leak coming from a loose fitting, which was backed off several turns. The Cameron official told us that he did not believe the leak was caused by a blowout because every other fitting on the system was tight. We also asked about the significance of the leak. The Cameron official said it was one of -- one of several possible failure modes. If the leak deprived the shear rams of sufficient power, they might not succeed in cutting through the drill pipe and sealing the well. Second, we learned that the blowout preventer had been modified in unexpected ways. One of these modifications was potentially significant. The blowout preventer has an underwater control panel. B.P. spent a day trying to use this control panel to activate a variable bore ram on the blowout preventer that is designed to seal tight around any pipe in the well, in other words, pinch off the flow of oil. When they investigated why their attempts failed to activate the bore ram, they learned that the device had been modified. A useless test ram -- not the variable bore ram -- had been connected to the socket that was supposed to activate the variable bore ram. An entire day's worth of precious time had been spent engaging rams that closed the wrong way because it was wired wrong. B.P. told us the modifications on the BOP were extensive. After the accident, they asked Transocean for drawings of the blowout preventer. Because the modification, the drawings they received did not match the structure on the sea floor. B.P. said they wasted many hours trying to figure this out. Third, we learned that the blowout preventer is not powerful enough to cut through joints in the drill pipe. We found a Transocean document that I'd like to put on the screen, and it says most blind shear rams are "designed to shear effectively only on the body of the drill pipe. Procedures for the use of BSRs must therefore ensure that there is no tool joint opposite the ram prior to shearing." STUPAK: This seemed astounding to us because the threaded joints between the sections of drill pipe make up about 10 percent of the length of the pipe. If the shear rams cannot cut through the joints, that would mean the so-called failsafe device would succeed in cutting the drill pipe only 90 percent of the time. We asked the Cameron official about the cutting capacity of the blowout preventer on the Deepwater Horizon. He confirmed that it is not powerful enough to cut through the joints in the drill pipe. He told us that this was another possible explanation for the failure of the blowout preventer to seal the well. And fourth, we learned that the emergency controls on the blowout preventer may have failed. A blowout preventer has two emergency controls. One is called the emergency disconnect system, or EDS. BP told us that the EDS was activated on the drill rig before the rig was evacuated, but the Cameron official said they doubted the signals ever reached the blowout preventer on the seabed. Cameron officials believe the explosion on the rig destroyed the communications link to the blowout preventer before the emergency sequence could be completed. In other words the emergency controls may have failed because the explosion that caused the emergency also disabled communications to the blowout preventer. Still, the blowout preventer has a dead man's switch, which is supposed to activate the blowout preventer when all else fails. But according to Cameron, there were multiple scenarios that could have caused the dead man's switch not to activate. One is human oversight. The dead man's switch may not have been enabled prior to installing the BOP on the ocean floor. One is a lack of maintenance. The dead man's switch won't work if the batteries are dead. The dead man's switch is connected to two separate control pods on the blowout preventer. Both rely on battery power to operate. When one of the control pods was removed and inspected after the spill began, the battery was found to be dead. The battery in the other pod has still not yet been inspected. There also appears to be a design problem. The dead man's switch activates only when three separate lines that connect the rig to the blowout preventer are all severed -- the communication, power and hydraulic lines. Cameron believes the power and communication lines were severed in the explosion, but it is possible the hydraulic lines remained intact, which would have stopped the dead man's switch from activating. These are not the only failure scenarios that could impair the function of the blowout preventer. The Cameron official we met with described many other potential problems that could have prevented the blowout preventer from functioning properly. Steel casings or casing hanger could have been ejected from the well and blocked the operations of the rams. The drill pipe could have been severed successfully, but then dropped -- but then dropped from the rig, breaking the seal. Or operators on the rig could have tried to activate the shear rams by pushing the shear ram control button. This would have initiated an attempt to close the rams, but it would not have been successful. The shear rams do not have enough power to cut drill pipes unless they are activated through the emergency switch or the dead man's switch. In fact, we uncovered an astonishing document that Transocean prepared in 2001 when it bought the blowout preventer from Cameron. I'd like to display the executive summary of this document. It says there are 260 separate failure modes that could require pulling of the BOP. According to this report, the predominant failures included ram blocking mechanisms. How can a -- how can a device that has 260 failure modes be considered failsafe? The problems with the blowout preventer extend to the procedures for testing the device. CEO of Transocean -- CEO of Transocean Steven Newman says in his testimony, and I quote, "We had no reason to believe that they were not operational. They were jointly tested by BP and Transocean personnel as specified on April 10th and 17th found to be functional." This assertion seems to be contradicted by a document prepared by BP on April 27th, one week after the explosion. According to this document, and I quote, "The blown out protector stack emergency systems are not typically tested once the BOP stack is on the seabed." What this means is that while some functions of the BOP may have been tested in the weeks before the explosion, the emergency systems, including the dead man's switch and the leaking emergency hydraulic system, were unlikely to have been tested. After the Alaska pipeline and Texas refinery disasters, BP promised to make safety its number one priority. This hearing will raise questions about whether BP and its partners fulfilled this commitment. The safety of its entire operations rested on the performance of a leaking, modified, defective blowout preventer. This is the first of what will certainly be multiple hearings into this disaster. I look forward to a frank and spirited discussion with our witnesses today. I ask unanimous consent the documents I referred to be entered in the record. I next turn to Mr. Burgess, the ranking member of the subcommittee, for an opening statement, please? 10:35:47 BURGESS: Thank you, Chairman. And thank you for convening this important hearing. The Deepwater Horizon events obviously represent a shocking tragedy. Eleven lives were lost, and we all regret that. Environmental and economic harm continues to the area, and we don't know what caused the disaster. But it is apparent that there was a failure, and now this committee and indeed the American people want answers, and they want accountability. This hearing is preliminary. It's a necessary step in getting the answers and get into that accountability. That's why I support the efforts of the committee to move rapidly on this investigation. What caused the blowout and the explosion, the failure of the various emergency safeguards on the seafloor, and the immediate response to stem the oil spill deserve our close and thorough scrutiny. Unfortunately, today's hearing and the committee's investigation is what one might call asymmetric oversight. The committee has demanded and obtained thousands and thousands and thousands of pages of documents and testimony from the four companies represented today, but we've obtained virtually nothing from those federal agencies that were responsible for the licensing and oversight of these operations -- nothing from the Obama administration, who presumably has already had discussions with likely many of you as to what went wrong and what might be done to mitigate the problem, but no documents, no testimony from the administration or from any of the relevant federal agencies. With the benefit of additional interviews and document review, we should have included an examination of other factors in the incident, including the role of inspections, including the role of federal inspections and oversight of drilling operations, practices and technology, and indeed the licensing of same. The federal role would appear to be an integral part of our story. We should have heard from the secretary of the interior today, and as Ranking Member Barton and I have respectfully requested, Mr. Stupak, of you and Chairman Waxman, and -- and we would like for that hearing to, since it's not occurring today, to occur in the near future. We will hear from others in the administration and other officials under oath in the near future, and I think it is mandatory that this committee do that. We should have representatives from the Department of Interior and from Bureau of Management Services here to explain why in March of 2009 in the initial exploration plan for the Deepwater Horizon a blowout scenario was not contemplated by BP and why therefore the site-specific oil spill response plan was in fact not even required by regulators. I would also emphasize the subcommittee should resist the temptation to push ahead on the facts and to lose their perspective that drilling and production operations are not experimental forays into the deep ocean with untested technology. For over 50 years these have been well-engineered and well-planned operations, and until this tragedy, there was a remarkably good record for overall Gulf oil production. The Gulf produces about 1.7 million barrels of oil per day, 6.5 billion cubic feet of natural gas, about one-third of the total United States daily supply, on 3,500 platforms employing 35,000 workers. In recent years the bulk of new production has come from deep sea operations with scores of exploratory and production wells developed at depths equal to or substantially greater than the 5,000-foot depth of the Deepwater Horizon, all without serious incidents. In point of fact, this is the first bill of magnitude in the Gulf waters. This is not to minimize the disaster we confront today. Eleven lives were lost. Four million gallons of oil have been released into a very fragile ecosystem, an ecosystem that has likely over 7,000 miles of actual ocean frontage on the coast of Louisiana. This past Friday I went to the Gulf with members of the subcommittee, Chairman Markey and Ranking Member Barton to learn firsthand about the recovery operations that were going on. And the magnitude of the problem that the people in the Gulf face from what we saw flying over the spill really cannot be captured in news photos. The oil slick looks to be the size of Montana. It reinforces why it is absolutely critical that we ensure that responders have what they need to control and mitigate the spill. And for the future's sake, we must identify what caused the spill. Our visit also reinforced how critical the timing was in the incident and the immediate response to the blowout. We understand that the initial failure of the blowout preventer was critical to the lack of containment of the spill. And if it worked as it was designed, or worked in a timely fashion in those initial hours or days after the blowout, we might be having a hearing that was focused on entirely different problems today. What the blowout and subsequent failure of the blowout preventer tells us about the process and operations we actually don't yet know, but it may reveal issues of mechanical failure, systems failure, human error, or a combination of the three. What we hope we do not find is that corners were needlessly cut in order to save time and money, because ultimately now time and money are what are at risk. Potential issues with material integrity or procedures in the construction of the well may provide a clue to how an apparently unexpected gas release occurred in the first place. All such issues may eliminate areas that better need operational oversight by the well's producers, the industry and, again, those charged with the regulation of same, which is why a hearing like this, which is asymmetric in its construct -- it's why it is inadequate to really address the problem. I do look forward to hearing the testimony from our key witnesses in the incident, British Petroleum, the operator of the well; Transocean, the driller and rig owner; Halliburton, the provider of various services, including the critical cementing; and Cameron, which manufactured the blowout preventer at the center of the current efforts to stop the flow of oil. But the regulators have failed. A litany of questions need to be asked and must be asked of those inspectors at Department of Interior and Mineral Management Services. For what it's worth, I want to welcome the witnesses to our committee. I understand you've been going through a very difficult schedule amidst what is undoubtedly an enormous tragedy within your -- within your businesses, and I appreciate your willingness to come forward and discuss what you know with the subcommittee. Time is going to be critical today. You've all been through a day of Senate hearings, and some of the testimony that's come forward has been predictable, but some of it has been contradictory and troubling in the testimony that we heard yesterday in the Senate. And I'm hopeful that maybe we can clear up some of these discrepancies and that you'll in fact address them in your opening statements to us today. At the hearings yesterday, Mr. McKay, you testified that the modifications that were made to the blowout preventer and that the claims that your company, BP, was not aware of those. And, Mr. Newman, you testified that Transocean made the modifications in 2005 at BP's request and at BP's expense. So, Mr. McKay, in your opening please tell us is this true. Did BP in fact request and pay for these modifications? And if so, would not BP have some documentation of this? And if that is the case, why are we hearing from our staff that -- that BP was shocked to hear about the modifications? And to Mr. Newman, tell us in your opening what modifications did you do? Did Transocean fully inform BP of everything it did to the blowout protector? Do you have documents to back yourself up? Did you inform BP about any labeling discrepancy in the device itself? We need to cut through some of those contradictions and -- and become aware of the facts. And then finally, Mr. Chairman, let me just go back to the issue of who's not here today. In the public information, the publicly released document, which is the application for the drilling of the Deepwater Horizon, there are some serious questions. There are some serious red flags, and I would very much like to have Secretary Salazar here. I would very much like to have Mineral Management Services here. Section 2.0, General Information, 2.7 Blowout Scenario -- a scenario for a blowout, a potential blowout of the well from which BP would expect to have the highest volume of liquid hydrocarbons is not required for the operations proposed in this exploration potential. Well, wait a minute. That's one thing for BP to say that, but why did the federal regulators just simply rubberstamp this when it was pushed across their desk? You have a well that had the potential to produce 100,000 barrels of oil a day, and we're now shocked that 5,000 barrels a day are escaping and we've got no plan for mitigation? The state of Louisiana is scrambling for boom material to protect its fragile coastline. We didn't have anything stockpiled ahead of time. BURGESS: We had to move equipment in and drill a 90-day relief well because that's the only way to stop this thing? It just seems like more care should have been delivered up front. And, yes, while I may criticize the companies that are here in front of us today, I've also got serious questions that this committee needs to ask of the federal agency that was charged with the oversight. When I get to the questions, there are many other statements in this application that are -- that are just as troubling. An offshore coastal dispersion modeling report for the proposed operations is not required for the operations. You could lose control of a 100,000-barrel-a-day production well, and you don't have to have a modeling report for offshore coastal dispersion? It goes on and on. And, again, I don't necessarily fault the company for perhaps trying to save a buck on the application, but the federal agency responsible for this that simply stamped it received and approved, that's where the problem exists in my mind. Last Friday, we were down on the Gulf Coast. The Times-Picayune had an extensive article on -- on what happened on the rig that day. They talk about the removal of the drilling mud prematurely. I hope somebody at some point will address that, that the drilling mud was removed and replaced with seawater before the second cement plug was placed, and subsequent to that was when the blowout occurred. Was there, in fact, some haste in getting this done? Did we depart from best practices? Or is that standard practice now and something that maybe needs to be -- maybe needs to be revisited on other wells that are being drilled at the time? And then, finally, this morning's Washington Post, just a stunning -- a stunning paragraph from a columnist, where Mr. McKay points out, "Our operating management system in the Gulf of Mexico is as good as anyone. I can't point to any deficiencies." Well, maybe that was true in March, but it's certainly not true in May. Thank you, Mr. Chairman, for your indulgence. I'll yield back the balance of my time. STUPAK: Thank you, Mr. Burgess. Next I'd turn to Mr. Markey, chairman of the Energy Subcommittee and Select Committee on Energy Independence for an opening statement, please. 10:47:16 MARKEY: Thank you, Mr. Chairman. To be honest, it's hard to have confidence in B.P. When B.P. applied for the right to drill in this lease, they called the chance of a major spill "unlikely." When the accident initially happened, they said it was "manageable." And last week, when B.P. and the other companies appeared before this committee, they said they never thought the rig could sink. Right now, by their own admission, B.P. is largely making it up as they go. They're engaging in a series of elaborate and risky science experiments at the bottom of the ocean. And after the failure of the containment dome, we are now hearing of plans to stuff the blowout preventer full of a mixture of golf balls, old tires, and other junk. When we heard the best minds were on the case, we expected MIT and not the PGA. We already have one hole in the ground, and now their solution is to shoot a hole-in-one. We expected a lot more sophistication when it came to dealing with something of this magnitude. I think a root cause for this accident is the "drill, baby, drill" booster-ism. There was oil industry booster-ism that minimized potential hazards. There was a booster-ism on the part of the previous administration that got rid of protections that they viewed as obstacles to increased drilling. Now we see the results. Booster- ism led to complacency, and complacency led to disaster. And this is a disaster. But it was not inevitable. It was preventable. And now we must enact preventions, protections that prevent similar catastrophes in the future. As the result of the B.P. Deepwater Horizon disaster, lives have been lost, livelihoods have been threatened, and a huge ocean and coastal ecosystem has been endangered. We have a duty and obligation to find out what happened here, why it happened, who was responsible, and how we can ensure that it never happens again. Thank you, Mr. Chairman. STUPAK: Thank you, Mr. Chairman. Mr. Sullivan for an opening statement, three minutes, please? 10:49:41 SULLIVAN: Thank you, Mr. Chairman. I want to thank our witnesses here today. I know you're going through some challenging times right now, and I appreciate you being here. Chairman Stupak, thank you for holding this hearing today, examining the causes of the Deepwater Horizon Gulf Coast oil spill. While the exact cause of this terrible tragedy is still being investigated, I'm interested in learning from our witnesses their thoughts on what went wrong and their ideas moving forward to prevent this from ever happening again. On April 20, 2010, a fire and explosion occurred on the Deepwater Horizon oil-drilling rig in the Gulf of Mexico, unfortunately killing 11 of the 126-person crew and injuring many others. My thoughts and prayers are with all the affected families. The spill has the potential to be a massive ecological catastrophe, as nearly 4 million gallons of oil have already spilled into the gulf since the accident. I commend the brave men and women who are working day and night to stop the leak and protect the shoreline in the gulf region. This is a challenge of epic proportions, and it is the job of this committee to conduct a fact-based investigation into the disaster to find out what went wrong and how we can prevent it from ever happening again. However, I'm disappointed that no one from the Obama administration is here to testify on the Department of Interior's role in response to the accident. Given the integral role of federal oversight in offshore drilling operations, it is critically important to hear the administration's point of view and to get their take on what safety lapses occurred and if any regulatory breakdowns happened at the Minerals Management Services that may have contributed to this terrible accident. During this hearing and the continuing investigation, it is important that we do not lose sight of the fact that 30 percent of the total U.S. production of crude oil comes from offshore. While some may want to stop drilling offshore all together, this would be a terrible mistake. If we were to ban or restrict offshore drilling, we would simply increase our national dependence on foreign oil, which makes our nation less secure in the short and long term and increases the cost of energy. We should not use this tragedy -- we should not use this tragedy as an excuse to roll back the gains we have made in finding -- in finding new ways to develop our own energy resources, as we will need more oil and natural gas to help meet the growing demand for energy in the coming decades. We still have to work to -- we still have work to do to uncover exactly what went wrong. There are many questions that will be asked today on ongoing efforts to contain the leak, whether there are potential or operational irregularities that played a part in the accident and what we can learn from this tragedy going forward. I look forward to getting to the bottom of this tragedy, and I yield back the balance of my time. STUPAK: Thank you, Mr. Sullivan. Mr. Dingell for an opening statement, please, sir? 10:52:50 DINGELL: Thank you, Mr. Chairman, and thank you for holding this important hearing today. The Obama administration has proposed expanding offshore oil and natural gas drilling in a way that complies with all of our environmental and safety laws, and I support expanded offshore drilling if it is done right, and if the permitting is done according to law, and if the law, in fact, does work. However, these rigs go further and further from shore, and it becomes then critically important that we understand what happened to the Deepwater Horizon rig and well, as well as what additional precautions we need to take to prevent something like this from happening again. Now, this is not B.P.'s first time appearing before the Energy and Commerce Oversight Subcommittee. The members of this committee will recall that in 2007 a hearing regarding corrosion in the pipeline leading up to the Alaska pipeline, which led to 1 million liters of oil leaked into Alaska's North Shore. At that time, I observed that B.P. workers were often forced to forego safety measures to save money and to ultimately increase B.P. profits. And yet these safety programs in many cases appear to have been halted or cut due to budgetary reasons. This is the cost of what we've learned about the way that B.P. managed Prudhoe Bay. Until B.P. finally acknowledges the role of cost-cutting and budget pressures played in creating this mess, I fear that other problems like this may be incurred at other B.P. facilities through the United States. The North Slope disaster is unfortunately one example of B.P.'s being before this subcommittee. We also investigated B.P.'s Texas City operations. Back in 2007, B.P. and its subsidiaries agreed to pay $50 million in criminal fines because of the 2005 explosions at its Texas City refinery. I note with irony and some dismay, this fine is equal to less than a day's corporate profits. And here we are again. This time, like the explosions at B.P.'s Texas City refinery, we not only have an environmental disaster, but again we've confronted tragic loss of lives. A little more than a year ago, in April 2009, the Minerals Management Service exempted B.P.'s lease at Deepwater Horizon from an environmental impact statement as required by the National Environmental Policy Act. B.P. called the prospect of an oil spill "unlikely" and stated that no mitigation members -- measures other than those required by regulation and B.P. will be employed to avoid, diminish or eliminate potential impacts on environmental resources. This, Mr. Chairman, is, quite frankly, outrageous. NEPA has been the law of the land for a long time, and for good reason. I happen to know that because I wrote the legislation. Now, I sincerely hope that, when this investigation is completed, that we don't find that B.P. again once tried to cut costs at the expense of safety. Given their history, I am somewhat skeptical that that will be the conclusion, but I am hopeful, even though I have a pocket full of promises given to me by B.P. during the time that we had them before this committee that they would do better and that there was a new regime going on there that was aware of the environmental concerns of the nation and the duties of that organization. And I do think, Mr. Chairman, that we need to hear from the administration, because we have not heard from them about why this was handled the way it was, failures of the leasing services and failures to properly implement NEPA. Now, we all know Gulf Coast is one of the most environmentally sensitive areas in the country. Four hundred species of rare birds, waterfowls, and sea turtles are at serious risk. Coastal wetlands are a fragile ecosystem that deserves protection and doesn't appear to be having it. Since B.P.'s effort to get the containment dome into place didn't work, the company is now going to use golf balls, knots of rope, and materials of miscellaneous character to try and plug the hole. If it works, great. It strikes me, though, as odd that, with all the technology we have, golf balls are our best hope. I look forward to hearing more about this and efforts to stop the leaking in the gulf. I look forward to the answers of our witnesses. I hope that we will hear from the government about why they were so generous in allowing this to go forward without full application of all the laws of the United States. Thank you, Mr. Chairman. STUPAK: Thank you, Mr. Dingell. Mr. Gingrey for an opening statement, please, three minutes? 10:57:56 GINGREY: Mr. Chairman, thank you. And I've got a written statement. I'd like to ask unanimous consent to submit it for the record... STUPAK: Without objection. GINGREY: ... and to talk extemporaneously. Going back to what the chairman just said, I think his wisdom always comes through, and his remarks really strike a balance in regard to the concern over what the industry's culpability is and also to bring forth as our ranking member of the subcommittee, Dr. Burgess, pointed out that we need to hear from the administration, we need to hear from the Department of Interior, we need to hear from Minerals Management Services. And, you know, I can't help but wonder, as I listen to this hearing and the opening statements of the members, that -- what is our intent here, really? We're using up a tremendous amount of time already on the majority side, something like 30 minutes of opening statements, and we'll go on and on and on, and probably give each of the witnesses five minutes. And -- and the information we have about the blowout preventer and all these different things at the bottom of the sea, those of us who may have a technical background, but not in petroleum engineering, we've been fed information from our staff, but we really need to hear from these experts. And I listened to some of the Senate hearing yesterday, Mr. Chairman. And it -- when Mr. Waxman, the chairman of the full committee, says about B.P. oil, they don't bear the full cost when something goes wrong, I think we're going to hear from Mr. McKay that, indeed, they will and do and plan to bear the full cost when something goes wrong. I'm not defending anybody here. I just want to learn the facts -- the actual facts, fair and balanced, in regard to the criticism of -- of some of the attempts to -- to plug the leak that was commented by a Senate majority member yesterday in that hearing, that it seems like these guys, B.P. oil in particular, is just making it up as they go along. Yes, hey, sounds analogy to what our majority party and administration is doing in regard to the economic meltdown of this country, kind of making it up as they go along. And so far, our unemployment rate has gone from 7.6 percent to almost 10 percent, and we still have 16 million people out of work, despite a trillion-dollar economic stimulus package. GINGREY: So, you know, I think we need to be fair and balanced here. And I certainly look forward to the testimony of the witnesses. And, yes, we're going to ask them tough questions. Eleven lives were lost, and the ecosystem and the economy of the Gulf Coast is at risk. And this is a very important hearing. But let's -- let's just don't, you know, put on our makeup and have our hair done and-- and pander before the C-SPAN cameras. Let's get the facts right. That's, after all, why we're here. And with that, Mr. Chairman, I yield back. STUPAK: Thank you, Mr. Gingrey. Mr. Braley for an opening statement, please? 11:01:04 BRALEY: Thank you, Mr. Chairman. This is indeed a very important hearing. And I'll submit my formal remarks end disc one
STATE DEPARTMENT BRIEFING
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.
WHITE HOUSE BRIEFING
White House Press Secretary Jay Carney delivers the daily briefing. 13:34:02 MR. CARNEY: Hello, everybody. Welcome. I'd like to begin, if I may, with a readout of President Obama's video teleconference with President Karzai of Afghanistan. President Obama spoke with President Karzai this morning via video teleconference. The two leaders spoke for approximately one hour and discussed a number of topics, including the impact of the death of Osama bin Laden on the fight against terrorism and on regional dynamics, their shared commitment to Afghan-led reconciliation, progress on forging an enduring U.S.-Afghan strategic partnership and a transition to Afghan leadership for security. The president expressed his sorrow over tragic civilian casualties, most recently in Helmand province. Both leaders noted that the Taliban are responsible for the great majority of civilian losses and agreed that every loss of civilian life is a tragedy and undermines our mission that focuses on protecting the population. The two leaders agreed to maintain their close consultations going forward. With that, I will take your questions. Julie. Q: Just to follow up on that readout, did the president share with Karzai any of the discussions he's been having here about the drawdown that's going to take place in July? MR. CARNEY: The president -- the two presidents, rather, discussed the process of transition to an Afghan lead, which is related very much directly to the question that you asked. They agreed to continue those consultations, and President Obama will certainly be in close touch with President Karzai as we finalize the pace and scope of the reduction in U.S. troops that will begin in July. Q: But he wasn't giving him any -- 13:35:35 MR. CARNEY: There was not -- there was not a discussion of specific numbers. As you know -- and it remains the case -- the president has not made a decision yet about the pace and scope. He's obviously going to be having discussions with his team in the coming days and weeks about that matter and will make his decision soon, as he said the other day. Q: And if I could just ask you a couple questions on Libya: In the past day or so, there seems to have been a drop in momentum for the Kerry-McCain resolution in the Senate, and now we have this new proposal from Corker and Webb that appears to be similar to the House resolution from last week. Given all of that, can you -- can the administration really still say at this point that you are providing all of the answers that Congress is looking for on the Libya campaign? MR. CARNEY: Yes, I can say that this president takes very seriously what he says -- sees as his obligation and his administration's obligation to consult regularly with Congress, broadly and with the appropriate members of the appropriate committees on matters like his policy towards Libya, and I can tell you that those consultations on Libya have been extensive and constant. In fact, I went over the list of engagements that this administration has had with members of Congress on Libya, just Libya, since shortly before this operation began, and it numbers 40 -- 40 engagements of different types of briefings and consultations. We will continue those consultations, and with regards to the resolution that the speaker of the House authored, we will answer the questions in that resolution in the spirit that we have answered questions that members have had in the past, and consistent with that approach towards consulting Congress, we will answer the questions in that resolution within the time frame that he specifies. Q: Will you do it in the way that the House has asked for it -- a written detailed report? MR. CARNEY: I don't have a format for you, but we will certainly endeavor to answer the questions. Q: Do you think that the Corker and Webb proposal -- would you also characterize that as being unhelpful and unnecessary? MR. CARNEY: Well, if it's a -- if it's similar or precisely the same, then it would be -- our reaction to it would be the same. 13:37:44 We have said from the beginning that we would support and appreciate expressions of support by Congress for the mission. I think the goal that the president shares -- the goals that the president has, rather, with regard to Libya are widely shared by members of Congress of both parties and both houses; and that is to allow the Libyan people to choose their own future, and with regard to the NATO mission, to protect civilians, enforce a no-fly zone and enforce an arms embargo. Q: If I could switch topics quickly, (Tim Kaine ?) has called for Anthony Weiner to resign. What's the president's position? MR. CARNEY: We have no comment on that story. Yes. Hey, welcome. 55 Q: Thank you. I wanted to ask what the White House reaction was to the OPEC meeting today, which broke up without a decision to raise (output ?). And had the U.S. been putting pressure on any members for an increase, and does it make it more likely that the U.S. will tap the Strategic Petroleum Reserve? MR. CARNEY: Well, let me take those questions in order. The president, as you know, is very concerned about high energy prices, in particular the impact that energy prices have on prices at the gas pump, because Americans are struggling to make ends meet, and when prices go up at the pump, it affects everything they do, because of the reliance on cars for transportation to and from work and other places. So as -- you've heard him talk about this a lot, and this is an issue that is very much on his mind. And he has taken a number of steps with regard to that, including directing the attorney general to create a task force to look at potential cases of fraud and manipulation of the markets that could have a negative impact on consumers. He is looking at a lot of options, so -- sorry, backing up to your middle question, this administration has been in regular contact with the IAEA as well as oil-producing countries during this time of elevated energy prices. We believe that we are in a situation where supply is not meeting demand. And there are a variety of reasons for that, including disruption caused by the situation in Libya which has removed 1 1/2 million barrels a day from the market. And so we've had those conversations within that context. As for the Strategic Petroleum Reserve, the president considers that an option; just hasn't made a decision about that. But as you know it is designed -- the reserve is designed to deal with disruptions in oil supplies. And the president considers that an option going forward. Q: I have another question on Syria. I'm looking for the White House reaction to the situation that is 100,000 people fled the town near Turkey fearing military assault. Wonder how the White House saw that situation, maybe compared to the early days in Libya. What needs to be done about Syria by the U.N. Security Council otherwise? MR. CARNEY: Well, each country of course is different. So I would hesitate before making direct comparisons between Libya and any other country that is experiencing unrest. We strongly condemn, and have condemned, the Syrian government's murder and mass arrests of its own people. We have imposed additional sanctions on the regime, including on President Assad and his inner circle. 13:41:08 We stand by the Syrian people who have shown tremendous courage in demanding dignity and a transition to democracy. President Assad now has a choice. He can lead the transition, or he can get out of the way. Jay? TAPPER Q: I have two questions for you. First of all, the study by McKinsey company noting that the health care requirements that take effect in 2014 (will ?), quote, increase medical costs for many companies. And in their survey of 1,300 employers, they note that a significant percentage will definitely or probably drop coverage or pursue alternatives to employer-based insurance. And I'm wondering what the White House response is. 13:41:59 MR. CARNEY: Sure. We saw that report. And I can simply say that that report is pretty starkly at odds with the experts from the Congressional Budget Office, the RAND Corporation, the Urban Institute, and it is also starkly at odds with history. History has shown that reforms motivates more businesses to offer insurance. Health reform in Massachusetts, for example, uses a similar structure as the Affordable Care Act with an exchange, a personal responsibility requirement and an employer responsibility requirement. And the number of individuals with employer-sponsored insurance in Massachusetts has increased. We are confident the Affordable Care Act will strengthen our existing system, employer-based system going forward. So we simply just disagree with those conclusions. Q: Do you -- (inaudible)? Do you think -- (laughter). MR. CARNEY: The Bay State, home of my beloved Boston Red Sox. (Laughter.) Q: Romney says that it's totally different -- Q: (Inaudible.) MR. CARNEY: Let me continue with Jake. Yes, sir. Q: Thanks. Do you take issue with the report's conclusion that the requirements of the law will increase medical costs for many companies? Is that something you take issue with? MR. CARNEY: We believe that the Affordable Care Act will reduce costs overall. It is one of the reasons why the president pursued insurance reform, because he wanted to address the burden that costs were placing on individuals as well as businesses. So yes, we disagree with the conclusions of the report. Q: OK. And then, in light of tomorrow's meeting with the president of Gabon, is it appropriate for President Obama to honor Ali Bongo at the White House, given the fact that the State Department recently reported the country is home to widespread government corruption, and in light on an ongoing criminal investigation in France about the source of money to buy President Bongo's homes in France? MR. CARNEY: Well, Jake, as you know, Gabon is holding a rotating presidency of the U.N. Security Council. It's an important position. Moreover, Gabon has voted in ways that we consider very helpful on issues like Cote d'Ivoire, Libya and Iran. It's been an important ally in our efforts in those countries through the United Nations. So, yes, we do think it is appropriate for the president to meet with the leader of Gabon. And we're obviously -- as we are in a number of countries, we're concerned about human rights issues. And President Bongo has made a number of reforms in his country. And that country, Gabon, is increasingly playing a more important role as a regional and global leader on such issues as the ones I mentioned: Libya, Cote d'Ivoire and Iran. So we're obviously -- we think it's definitely a worthwhile meeting. Q: But there are a lot of people in that country who look at President Bongo as seriously corrupt. And he is going to be able to use this visit at the White House with President Obama as a way of building up his popular support. MR. CARNEY: Well, look, I think that the president of the United States is meeting with the president, as he does with other heads of state who have less than sterling, perhaps, records, because of the -- first of all, that -- the president of Gabon is making reform efforts, which we support. Secondly, as I said, Gabon has been an important partner in some of the issues that are very important to the American national security -- U.S. security interests, regarding Cote d'Ivoire, Libya and Iran and other issues. And it's very important for the president to have this meeting for that reason. Yes. Q: Jay, what is the president's reaction to this report from the Senate Foreign Relations Committee Democrats? They were talking about inefficiency in the way aid is being spent in Afghanistan, and also saying that there's really a threat of a severe economic depression once U.S. troops are out. MR. CARNEY: Well, we welcome the report even though we do not endorse all of the conclusions of it. It's important to note that Afghanistan has made significant progress. And the presumption that our assistance has contributed little and that Afghanistan has made no progress is just simply wrong. We disagree with that. As President Obama noted earlier this week, we've broken the Taliban's momentum. We are training Afghan forces and -- with the goal of turning over security lead to the Afghans' forces between the drawdown that begins in July 2011 and 2014. You know, civilian assistance is important, but it represents a small proportion of the overall costs of our mission in Afghanistan. But it is an essential component of our critical national security strategy in Afghanistan. 13:46:37 And remember, if the goal here is to transition more and more responsibility to the Afghans and the Afghan security forces, it's important that the civilian assistance part of this be effective so that it builds capacity that allows us to do just that. And on sustainability, we -- you know, we agree that that's an issue. That's why so many of our efforts are focused on building institutions so that Afghans can sustain the progress that has been made over these last several years. Q: So is that -- the president is concerned that there could be major economic repercussions? Is that what you're saying? Once -- MR. CARNEY: The president is very clear-eyed about the country, about its -- the challenges it face -- it faces. And that is why the assistance that we provide is aimed at improving the chances that Afghanistan can sustain itself as we begin to draw down our forces and transition the lead to Afghan security. Q: I guess my question is, if the White House doesn't see eye- to-eye with all the findings of the report, then which findings is there disagreement on? The inefficiency finding or sort of (the threat economically ?)? MR. CARNEY: I don't have -- I don't have a -- I think that it's -- while we obviously agree with aspects of it, some of the challenges that Afghanistan faces, we don't believe that its assessment of the overall progress is the same as ours or that its potential for sustainability is the same as ours. Q: But are any of these things that drain -- MR. CARNEY: Look, we said we would -- you know, we welcome the report and we read it with interest. And, you know, we are constantly adjusting our -- at a tactical level our -- you know, how we engage in Afghanistan and the civilian -- in our civilian assistance programs, obviously as well as with our military programs, to maximize our success. Q: What do these points mean as the president considers a drawdown of troops? MR. CARNEY: Well, I don't think there's anything -- while we welcome the report, there's no -- you know, it's not news to anyone in this room, anybody in Washington and certainly not to the president that Afghanistan faces a lot of challenges as a nation, economically, politically. And that's -- we're very aware of that. That was something the president focused a great deal on from the beginning of his presidency as he began to review our policy in the region. Yes, Mr. Knoller. Q: Jay, in the Karzai conference call, did the president say or tell President Karzai that the United States will continue to engage in Predator strikes? MR. CARNEY: Well, Mark, I'm not going to go into any greater detail about the nature of their conversation. It was a good one for an hour that covered a lot of topics. And as I think I mentioned, the president spoke with and expressed his concern -- shared concern to President Karzai about civilian casualties. But as -- you know, we've -- as I've said in the past and certainly others from the Pentagon and elsewhere have said, you know, we -- our mission in the region is to -- our number-one goal is to disrupt, dismantle and ultimately defeat al-Qaida. And we are prosecuting that mission. Q: Are you able to say if President Karzai asked the president not to stop all the Predator strikes? MR. CARNEY: I am not able to characterize the conversation further. Q: And on Libya, Senator Lugar in an op-ed piece a couple of days ago said consultations with Congress were not enough. He said the president needs to ask Congress to specifically authorize U.S. military engagement in Libya. What does the president say to that? MR. CARNEY: Well, the president says, through me -- and would have said yesterday, if he were asked this question -- and we -- you know, he believes that he is acting -- that his actions are -- have been consistent with the War Powers Resolution, and furthermore, that the consultations are very important. And we have been in extensive consultations with Congress about our mission in Libya, the goals of which, we believe, are widely shared by Republicans and Democrats and House members and senators. Q: Does that mean he will not seek specific congressional authorization? 13:51:14 MR. CARNEY: Well, again, I think we've said that we support and would welcome expressions of support from Congress similar to the resolution put forward by Senators McCain and Kerry, and other Republicans and Democrats. But, you know, I don't have anything more to say on that, beyond that. Q: Jay, two more polls today by Fox and Gallup showed widespread disapproval of the president's handling of the economy, by an almost two-to-one margin. One yesterday by Washington Post and ABC indicated most people don't even believe the economic recovery has begun. How do you explain this? MR. TONER: I think I explain it by saying that we are still struggling to emerge out of the worst recession since the Great Depression. A jobs hole of 8 million -- tremendous loss of jobs. We have, over the past 15 months, created more than 2.1 (sic) private sector jobs. That's an enormous amount. But it is not nearly enough. And the president is aware of that. And obviously if you're an American who is still struggling with the reality that was true for the decade prior to this president getting here, certainly eight years prior, where middle class incomes had stagnated, and in some ways reversed, even as upper incomes expanded dramatically -- so you've been experiencing that squeeze for a long time. And maybe you have a job, fortunately, but you're being hit by higher energy prices, you're worried about your mortgage, you're worried about sending your child or children to college. 13:52:45 You don't feel like the economy is strong enough. You may not feel all that great about the economy, even if you do have a job, which obviously is the most important thing. So we understand and the president understands and focuses on this precisely because he will not rest and will not be satisfied until every American who's looking for a job can get one. And that's the number one priority of his presidency. And he continues to be focused on it. That's why he was -- held the event that he had today at Northern Virginia Community College, which was all about making sure that the training and education that Americans are getting can match up with the kinds of jobs that manufacturers in the United States are looking to fill. It's his number-one priority. Q: Senator Barrasso said today that government regulations and debt are like putting on the emergency brake in the economy. Would you disagree? 13:54:01 MR. CARNEY: Well, I certainly think that, as the president does, the -- that we need to get our fiscal house in order, we need to reduce our deficits and our debt and we need to do it in a balanced way. We certainly think that the $10 trillion debt that he inherited is a drag on the economy and -- as a significant portion of the debt that we have now, a debt incurred in part by two substantial tax cuts for -- that went disproportionately to wealthy Americans that were unpaid for, two wars that were put on a credit card. So yes, we're concerned about it. (This ?) president's very concerned about it. You have to remember, however, that when he came to office, we were in an economic free fall, and we had to take dramatic action in order to prevent the Great Recession from becoming the second Great Depression. We did that, and we have experienced positive economic growth for the last seven quarters. We have experienced significant private-sector job growth for the past 15 months. We are headed in the right direction, and we need to continue to do things like invest in those areas of the economy that have the greatest potential for growth and job creation. We need to get our fiscal house in order; and we need to do it in a balanced way, including, for example, deciding that -- going back to the question about gas prices -- that the 4 trillion -- or rather billion dollars that we spend subsidizing the oil industry could be better spent elsewhere like investing in clean-energy technology. Q: Did Austan Goolsbee leave because of policy differences with the president? MR. CARNEY: Absolutely not. Austan Goolsbee left because he needed to return to Chicago. He has a young family. He has a tenured job at the university there. And he's a very close adviser to the president, a friend to the president, and he will continue to advise the president from the outside and, I'm sure, will assist with the campaign. Q: Final question. David Axelrod, Robert Gibbs, Anita Dunn -- all here today. Are you focusing on -- MR. CARNEY: (We're in a ?) football team this year as well. Q: Yes, well, that explains Robert. Does that explain Anita Dunn, and -- (inaudible) -- MR. CARNEY: Well, Anita lives in Washington, I think, so I think the only -- and her husband works here. So I don't know particularly, beyond Robert's presence here to celebrate the national championship of his beloved football team. Beyond that, I don't know specifically what those meetings might be. But obviously, there is ample reason -- Q: (Inaudible) -- not involved in those meetings? MR. CARNEY: I was not involved in -- again, I don't know that there are any meetings. I mean, you know, for all I know Ax is here having lunch with somebody. Q: Sir, the president says he -- there should -- he doesn't expect there to be a double-dip recession. The chairman of the Federal Reserve yesterday discouraged the notion, or at least he was interpreted as discouraging the notion of a QE3, or any other further monetary easing, if there is room to do that. There is a perception today that there is a sort of a stand pat attitude on the economy coming from Washington. You would dispute that perception? MR. CARNEY: Well, I would. I think, again, that whether it's free trade agreements or making permanent the R&D tax credit, which the president supports -- and then, you know, taking a serious approach that the president has taken towards deficit reduction in these very important meetings and negotiations being led by the vice president, which resume again tomorrow. You know, there's a lot of activity here driven by the desire to continue to grow the economy and continue to create jobs. Again, the president is focused on this as his highest priority. Q: OPEC -- here, again, going back to OPEC -- their inability to come to an agreement on raising output. The president cites them on the headwinds of the economy: high gas prices. How big of a concern is their lack of agreement? MR. CARNEY: Well, I think I answered this question. We are in regular consultation with the IEA as well as with oil- producing states. We believe that -- Q: (Inaudible.) MR. CARNEY: -- supply is not aligned appropriately with demand because of a number of factors, but including obviously unrest in the Middle East and specifically the disruption caused by the removal of about 1.5 million barrels a day from the market because of Libya. So -- you know, and then, having said that, the president has also made very clear that we and all of us in this room, through our lives, have been through this cycle before where gas prices spike; politicians express great alarm and demand that action be taken; gas prices go back down and nothing happens -- because this is a long-term problem that requires a long-term solution and that is the approach the president has took -- has taken, which is why he has taken measures to increase domestic oil production; why he has passed the, you know, significant car rule, which will ensure that more fuel- efficient cars are rolling off the assembly line and populating the highways and streets of our country. 13:58:56 And it's why he has sought to diversify our energy supply from array -- from the broad array of sources so that we do not depend on the importation of foreign oil to the extent that we do now, because it makes us highly reactive in the face of spikes in a global energy market that we can't control. Q: Just final -- a final question: Yesterday former Governor Pawlenty unveiled his economic plan for 5 percent growth he wants annually. I'm sure everybody would be happy with that. But he also wants to raise the Social Security retirement age. What is the president's position on raising the Social Security -- MR. CARNEY: Well, look. I think the president said in his State of the Union address -- and I don't have anything more than that -- that obviously we need to look at ways to strengthen Social Security. I don't have any specifics for you. The -- without slashing -- without slashing benefits. Q: How -- MR. CARNEY: And with regards to 5 percent growth, I -- you know, we couldn't agree more. That would be very beneficial to the economy. We think providing expansive tax cuts to the wealthy, which we did in the last term and added tremendously to our debt and resulted in this president inheriting a massive deficit and debt in 2009 -- probably not the best approach. Q: On the Consumer Financial Protection Bureau, is the president any closer to naming a director? And can you comment on the Bloomberg report -- (inaudible)? MR. CARNEY: The Bloomberg report? So this was of a named candidate? Well, I'm not going to comment on media speculation about who or who may not be under consideration. The president's looking at a broad array of potential candidates. He does hope to fill that post relatively soon. And -- but I don't have -- just relatively soon. I don't have a -- I don't have any more on that for you. Q: The other thing is, so the third rating agency weighed in on U.S. debt. And I was wondering what the -- how you guys -- what your response is to that and how that impacts the -- MR. CARNEY: Well, I think it adds -- as it did with the one prior, I think it makes clear the case that we've been making, that there is no alternative here to raising the debt ceiling. This is not about additional spending. This is about honoring the obligations that the United States government has made. And the consequences of not raising the debt ceiling, as some of these rating agencies have suggested, would be severe. And, you know, the vaildators for that opinion are numerous and come from a variety of political and nonpolitical backgrounds. It is simply incontestable that we need to do this. And we think that Congress will do it, because they recognize the urgency and significance of this vote. Q: What is the president's feeling about that? I mean, there have been some calls for him to get a little bit more involved. Do things like this make him feel like perhaps it is time for him to get closer to the negotiating table, to go -- MR. CARNEY: Well, the president appointed his vice president -- who, by the way, has, you know, some experience with these kinds of things -- to oversee negotiations. It's the president's initiative to call people to the table. Participants in those negotiations appointed by the leaders of Congress, including the speaker of the House, Senate minority leader, Senate majority leader, House minority leader, have been making progress. So, you know, do we think that -- you know, do we share the desire that those talks produce in a relatively short period of time a positive result? Absolutely, and that's why the president put the vice president in charge of them. And he engages on this issue daily, and I'm sure he will engage in it in terms of conversations with leaders and members as time progresses. But I -- you know, it's -- it is a demonstration of the seriousness with which he takes this issue that he asked the vice president to lead these negotiations. Q: And then just quickly, Afghanistan, the other day, you said he had not received a recommendation from commanders. Has that changed? MR. CARNEY: No, that hasn't changed. And, you know, he looks forward to discussing with General Petraeus, with Secretary Gates, with his entire national security team his thinking about the variety of options that he will consider in terms of the pace and slope of the drawdown. But there is no formal recommendation or recommendations at this point. Yeah. Q: When will he do that? When -- is he planning some formal meeting on that? MR. CARNEY: Well, I will just -- I'll quote him in saying that he plans to make that decision soon. Q: No, in terms of meeting with them, do you have anything on -- MR. CARNEY: You know, I think that you can -- I mean, I think it's important, first of all, to step back and remember that as part of the process that he put in place with his strategy announced in December of 2009, he has been engaged in this issue at great depth, with regular monthly meetings that he chairs on Afghanistan, Pakistan, the Af-Pak policy; 14:03:48 with weekly meetings with Secretary Clinton and Secretary Gates where Afghanistan is a frequent topic of conversation and discussion. As you know, the national security staff did a comprehensive review in December of our -- of our policy. And obviously, we consult with ISAF allies on this. So this is -- this is a process that isn't going to begin tomorrow; it began a long time ago. It's an ongoing process. Q: Right, but does he plan to bring all of them to the table -- MR. CARNEY: I don't have a -- I don't have a format for you. But he will be consulting with Secretary Gates, with General Petraeus, with the rest of his national security team, Secretary Clinton, Vice President Biden and others, about this decision, and review the options that he has, and make a decision relatively soon, as he said the other day -- yesterday, I think. Q: And on the economy, Jay, what led him yesterday to warn against panic and over-reacting? To what extent is he concerned that that's happening or is going to happen? MR. CARNEY: I think -- I think what I -- the way I would answer that is to make a point that Austan Goolsbee made the other day, which is that when we had very strong jobs reports for three straight months -- in at least two of those cases, much higher than expectations -- we did not pop the champagne corks or celebrate here. And we also think while the jobs report that came most recently was under expectations and disappointing, you know, 14:05:16 it is important to look at the long-term trend. And the long-term trend remains positive. And the outside forecasters for economic growth in this -- the remainder of this year remain positive. There's a lot of reason to believe and ample evidence to suggest that this economy is growing, will continue to grow and will continue to create jobs -- never fast enough, and not enough job creation, as far as this president is concerned, until every American who's looking for a job can get one. But I think the point he was making is that, you know, we need to look at the long-term trends here and not just one day or one week's series of economic data. Q: Does he sense panic over -- MR. CARNEY: No, he doesn't. I think his point was just the opposite, that, you know, we have faced some headwinds; some of them, hopefully, were temporary, like the impact of the tsunami and earthquake in Japan and the impact that had on supply chains. The -- but the fact is that we have continued to grow, we believe we will continue to grow, and we will continue to create jobs, private-sector jobs, which is -- you know, the private sector's the engine of job creation. And that's positive and we need to remember that even as we acknowledge that, you know, much more work needs to be done. Yes. Q: With the unemployment expected to be above 8.5 percent for several months, what other tools is the president considering? MR. CARNEY: Well, look, there are a variety of things that we need to remember about what's already happening, in terms of the payroll tax cut, the extension of the middle class tax cut. That's putting money in people's pockets and is helpful in terms of promoting economic growth. There are measures like the president talked about today, in terms of matching -- you know, these private-public ventures that match vocational and educational goals with employers who are looking for specific types of employees to hire them. That's positive. And then we need to -- you know, the president talked a lot about the need to extend the R&D tax credit because this is an area of significant potential economic growth and job creation. And he's -- free trade agreements, the three free trade agreements that could create or support 70,000 jobs -- it's very important that we continue to work on those and get those done. And, you know, the president's focused on this constantly. And the fact is the policies that he has pursued and is pursuing have reversed the catastrophic economic decline we were in when we came in in 2009 and have led to seven straight periods of -- quarters of growth and 15 months of private sector job creation. And we need to keep our nose to the grindstone and keep up -- keep working hard to continue that growth and continue that job creation. Q: So because there hasn't been a lot of movement in the past couple months, is there something new on the table -- (off mic) -- looking at or -- MR. CARNEY: Well, look -- I mean, first of all, some of those things that I just mentioned are new. They are not -- they have not been acted on and need to be acted on. 14:08:47 Secondly, we believe done properly, an agreement to substantially reduce our deficit in a balanced way that will not harm economic growth will be a net positive for economic growth. It could, in fact, be a big boost for economic growth and job creation because of the confidence it can create. That is why the president is so focused on this. He is not approaching deficit reduction and long-term debt reduction as an esoteric exercise. It is not a good in its own right. The focus here is on growth and job creation. Q: And also another topic -- President Medvedev said Russia would help mediate in Libya and even help with a Gadhafi exit strategy. Has the administration been in touch with the Russians? Are they -- MR. CARNEY: Well, again, the president met with President Medvedev in France. The vice president met with him, I believe, in Italy. We are in constant consultation with our Russian counterparts and partners, the -- and with other allies and partners that are interested in a positive solution to Libya so that the Libyan people can decide their own future. So I don't have anything specific on different proposals by different countries, except that we support the idea that Moammar Gadhafi needs to step down so that the Libyans can choose their own leaders. Q: Has the president talked to Medvedev since the Europe trip? Has there been any communication about this? MR. CARNEY: Not that I'm aware of. Again, without saying or suggesting that this was a focus of their conversation, the president -- the vice president did meet with him when he met with Prime Minister Berlusconi in Rome. Q: But did it come up in their conversation? MR. CARNEY: I don't have a readout of that conversation. Q: And finally, is the president going to Russia this year? Any plans -- MR. CARNEY: I don't have any travel announcements to make. Ari. Q: What's's the deadline for commanders to get the recommendation of the president on -- (inaudible)? MR. CARNEY: There is no deadline. The transition will begin in July of 2011 -- Q: Presumably -- MR. CARNEY: -- the drawdown, rather. The transition has already begun. The drawdown will begin in July 2011. I mean, you heard it from the best source possible. The president said he would make that decision soon. Q: But he hasn't said give me at least a week before July to think about it? MR. CARNEY: Well, first of all, July has 31 days in it. Secondly, soon is pretty soon. I mean, soon as, you know, spoken by the commander in chief, I think, you know, you can expect that to be soon. Q: And then he said yesterday that he spoke with Germany about taking an active role in a post-Gadhafi Libya. What other plans is the U.S. making for what happens in Libya after a Gadhafi departure? 14:11:38 MR. CARNEY: Well, I think it's a part of wise planning to consider the future that we hope to help bring about with the varied actions that we have taken both diplomatically, economically, unilaterally, multilaterally and as well as militarily through the NATO missions. So yes, we are consulting with our allies, with the contact group that has been stood up to look at this issue; consulting with and talking with the Transitional Council about Libya's future. But beyond that, I don't have specifics about how that -- you know, how that will unfold once Gadhafi leaves. Q: I mean, if he were to leave in the next 10 minutes, is there a whole list of things that immediately click into place? MR. CARNEY: Well, I don't want to get ahead of myself or the administration here, but you can be sure that we're obviously thinking about and planning for that contingency. Yes. Q: Back to the Senate Foreign Relations Committee report, it's being read in some quarters as a fairly -- as being a very critical assessment of the -- MR. CARNEY: It's being read that way in one newspaper, I think, yeah. Q: Of the counterinsurgency policy. And I wonder if it's raising new questions about that policy that was adopted back in 2009. I know you've said a number of times what they're talking about now is not new policy. But in the pace of drawdown, that's a recalibration of that policy. In other words, the small -- the faster you get small, the more counterterrorism you get, the less counterinsurgency you get. First, is the White House reading it that way, as an indictment of counterinsurgency policy, than the maximalist approach that was favored by some -- by General McChrystal and General Petraeus? MR. CARNEY: Well, no. And again, I think we welcome the report, even though we disagree with some of its conclusions, first. Second, you know, I think you've fallen back on a shorthand that -- and you and I have had this discussion offline a number of times -- that I just simply don't agree with, because I don't think it represents the consultations and the -- and review that the president undertook with his Af-Pak policy, and it certainly doesn't represent the outcome. This was never a binary choice between counterterrorism and counterinsurgency. It was always about getting the right mix of approaches to ensure that we had the best possible chance of succeeding and achieving our goals: disrupting, dismantling and ultimately defeating al-Qaida, and stabilizing Afghanistan, sufficiently so Afghanistan would not again become a harbor for terrorists -- international terrorists who seek to do America and our allies harm. So -- and again, those are very -- those goals are very important, because of what is included within them and what is not. And the policy the president chose and has been implementing since December 2009 is not -- you know, you cannot describe it or thumbnail it by calling it counterinsurgency or counterterrorism. And, you know, there are a lot of different elements that are part of it that were specifically decided on because of the president's belief that they would maximize the chances of success. Q: How do you see -- Q: Without using those terms, does -- do the questions that the report raise help those arguing right now for a faster drawdown? MR. CARNEY: I don't think -- let me just stop you there. I don't think -- we welcome the report, it is -- you know, got a lot of information in it, it is certainly worth reading and reviewing. We spend a lot of time here on Afghanistan and Pakistan -- the national security staff, national security team and obviously our personnel, both civilian and military, over in the region. We are, again, very clear-eyed about the challenges in Afghanistan, about the progress that has been made, but also about, you know, the setbacks that we've experienced at various times. So I don't -- I'm not suggesting that we know everything already, and therefore don't need outside inputs. We obviously do and welcome them, but we're not learning a great deal of information about the challenges that we face in Afghanistan here. And all of that is part of how the president has been thinking about Afghanistan and Pakistan, since he got into office and even before. It was all part of how he viewed the process when he settled on the strategy that he's implementing now. And I would just go back to what I said before: The -- implementing the drawdown -- beginning the drawdown is implementing the policy that he decided on in December of 2009. It's not a change. It is exactly what he said he would do. And there's a certain amount of consistency here in terms of how this president operates. He said what he would do, and he's doing what he said, very deliberately, with a -- with his eye on a long-term goal here. And that's what this process is about. Yeah. Q: Jay, can I come back to Syria? There's a U.N. resolution that the British and the French have proposed today condemning the regime for the crackdown. Will there -- (and a vote for ?) that. Do we agree with the British and the French that Bashar Assad is now losing -- present tense, what they said -- losing his legitimacy? And I guess I'd still like a feel for what we think is going there. There's reports of troops and tanks heading for the northern -- MR. CARNEY: Well, we're obviously aware of all the reports. And sometimes information -- depending on the region of the country, it can be hard to come by or hard to verify. But I think I put it pretty starkly. President Assad can either lead this transition that has to happen, or he has to step aside. And I think our -- you know, how we view this is clearly stated in that sentence. So I don't -- I don't -- I don't have a position to give you on the resolution that you mentioned. I think our -- the fact that we have strongly condemned what the Syrian regime has been doing, the murders and the arrests of its own people, speaks pretty clearly about our position. And the actions that we've taken in terms of sanctions, including targeting President Assad himself, I think, are very clear. Q: Is there an impending humanitarian crisis in northern Syria? MR. CARNEY: I don't know. Maybe -- I mean, State Department -- you might ask them. But I don't want to speculate about that. Yeah. Q: Thank you, Jay. Secretary Gates in Afghanistan has called for a troop composition that would rely on shooters, and saying that if we're going to withdraw some personnel, it should be support people. He called for keeping the maximum combat capability in Afghanistan -- he called that a no-brainer. Does the president agree with that assessment from his defense secretary? 14:18:30 MR. CARNEY: The president speaks with and consults with his defense secretary all the time, including the weekly meetings that I just mentioned. And the -- I'm sure the president shares that opinion that the reductions we need to make need to be -- that he will make, the drawdown that will begin, will ensure that we can get the maximum success out of the mission. And part of the mission and part of the strategy is to begin this drawdown as we transfer responsibility, security lead, over to the Afghan National Security Forces. But in terms of the composition of the block of troops that will begin the drawdown, I don't have a comment and I don't have an opinion of the president's to convey to you, because as you know, the president is reviewing or will review his options and make a decision in the near future. Q: Is that part of the decision that the president will make, is the troops -- the folks that will be going -- coming home or reassigned, whether they'll be combat people or support people -- I mean, the president will be getting into this on that level? MR. CARNEY: I think some of these -- about how you -- in terms of a force the size of which we have in Afghanistan and what the breakdown is in terms of -- I think anybody's who's in combat -- I mean who's in that zone in an American military uniform is combat trained and fully capable of using a weapon. So I think that there's a little bit of a misnomer. I mean, there was -- we went through this when we were withdrawing troops from Afghanistan, the suggestion that because we were ending our combat mission, somehow that meant the troops that remained were not combat troops. Obviously every U.S. soldier and military personnel is highly skilled and trained in combat. So the -- but again, I think that the breakdown of how that works, the proportion of either, you know, support or logistical or analytical strengths versus frontline combat strength -- I just don't know, and I think the Pentagon's better suited to answer that question. Yeah. Q: Does the president thinks that the criticism from more liberal economists, Democrats on how he's allowed -- they accuse him of, or say he's allowed the debate on the deficit and the debt, the economy issue, too much toward cutting government spending, and he's given up ground on the need to push more stimulus measures. Do you have any -- can you react to that criticism that the president has gone too far, you know, in favor of Republicans on the debate where the debate is on their terms, especially in light of this jobs report? And then, second, whether because of the jobs report he sees any need to reevaluate his goal of cutting $4 trillion in spending over 12 years or just that big goal that he set out? In light of that report, is there any need to just change -- MR. CARNEY: Well, two points. One, I think, going to the point about we need to look at trends here and not just one piece of or several pieces of economic data, and the trend remains very positive: 2.1 million private-sector jobs -- in excess of 2.1 million private- sector jobs created over 15 months and sustained economic growth for seven months -- seven quarters, rather. So in terms of measures that are helping fuel economic activity and growth, he fought very hard for and achieved, as part of the tax cut compromise in December, extension of uninsurance -- unemployed benefits -- unemployment benefits and obviously the middle-class tax cut as well as the payroll tax cut -- the payroll tax holiday. That is -- in terms of the discussions that you're talking about, that is direct stimulus through tax reduction in (a ?) payroll tax cut, which we believe is much more efficient in terms of causing economic growth than giving very wealthy Americans more tax cuts, because that money won't necessarily be pumped back into the economy. 14:22:24 So the president also believes -- and this is not like choosing between I'm going to go more Democratic or more Republican. The president believes that balanced deficit reduction is in the American interest, in the interest of the economy and in the interest of job creation. He is not apologetic about that. He thinks we need to do it, and he thinks we need to do it in a balanced way, in a way that protects important investments, that protects our seniors and disabled children and others; and he thinks that if you do it in a balanced way, you can protect our core commitments, you can make the key investments we need to make, and you can bring down our deficit by $4 trillion over 10 to 12 years. Q: The payroll tax cuts will expire in -- at the end of this year. Is there a need as part of these negotiations that are going on to extend them? MR. CARNEY: Well, I think the president addressed this in broad terms the other day yesterday about what, you know, discussions might be in the future about that. I'm not going to go beyond what he said yesterday. Q: Was he referencing -- and he seemed to hint at it -- was he referencing -- (off mic) -- extension of -- MR. CARNEY: I don't want to expand beyond what he said on that. Keith. Q: Jay, thank you. You talked about Syria policy before in the context of every country within the Middle East is different, but I'm wondering if you can tell us specifically what it is about Syria that leads the president not to call specifically for Assad to step down? What is it about that country, about the geopolitical situation there that -- MR. CARNEY: Let me just repeat what I said. The president believes, we believe; the administration has stated, as I just stated, that President Assad needs to lead this transition or get out of the way. I think that's a pretty clear statement of where we stand. The -- you know, the comparison games aren't -- you know , these are specific countries with specific circumstances, with different things happening in terms of the expressions of dissatisfaction by people on the streets and the reaction that the governments have had. And each country deserves a specific response, all geared towards our hope of the best possible outcome. And that can be condemning actions, putting pressure on leadership -- and I'm talking broadly, depending on the country you're talking about -- offering, you know, different forms of support to the -- to opposition. Again, I'm not talking about Syria, but I'm just talking about the different options available to us: taking actions multilaterally with allies, unilaterally through sanctions and that kind of thing. And I just -- there is not a one-size-fits-all response here because, as you know, the region is very diverse, the nature of the regimes and the countries is extremely varied. And we have to take that into account in -- as we develop policy with regard to each country. Q: Well, as you know, I think I -- what I was trying to get at is, what is there specifically about Syria that leads to this particular policy? Is there some concern of destability within the region? MR. CARNEY: We're pursuing an approach toward Syria which we hope will help lead to a positive outcome, which is either the current regime changing its behavior dramatically and engaging in political dialogue, ceasing the violence and leading the transition, or in that transition taking place under different circumstances. And we've -- you know, we've -- that's the approach we're taking. Q: Just as far as -- (inaudible) -- I mean, there'd be a lot of people who'd be skeptical that someone -- I mean, he's just killed, you know, more than a thousand of his own people -- can do that kind of transition, can have (negotiations ?). Why does the White House think that he can sort of suddenly change and -- MR. CARNEY: Well, we'll see. We'll see. Q: Thanks, Jay. MR. CARNEY: OK, one more in the -- yes, Victoria (sp). Yeah, sorry. Q: Oh, OK. You said the president yesterday spoke broadly about payroll taxes and manufacturing and such. But right after saying that, he also said he was interested in exploring with Congress the continuation of these policies. 14:26:22 MR. CARNEY: Well, what I just said is that I think -- I'll let the president's words stand. I don't have anything to add to that. Q: One question right here. MR. CARNEY: All right, thanks guys. Oh wait, Chris. Yeah? Q: Yeah, I'm just wondering -- in June 2009 the Department of Homeland Security issued a memorandum on deporting certain widows and widowers of U.S. citizens. At the time, Homeland Security Secretary Janet Napolitano said that smart immigration policy balances strong enforcement practices with common-sense practical solutions to complicated issues. Yet in May, asked about requests by advocates for a moratorium on deportation of foreign partners in same-sex binational relationships, similar to the 2009 moratorium, you said the president can't just wave a wand and change the law. Can you explain the difference there? 14:27:12 MR. CARNEY: I mean, the president can't just wave the wand and change the law. I think that was in response to a broader set of issues that some folks are, understandably, advocating for. And the president has called for comprehensive immigration reform for a reason, because he thinks that we need to move in a comprehensive way to get there, and because that kind of comprehensive approach has in the past enjoyed bipartisan support. And he believes that if we talk about it in the right way, and we push for it, and folks out in the country push for it, that we can return to a situation where there will be bipartisan support for it again in the future. Thanks guys.
HOUSE ENERGY HEARING ON OIL SPILL 0930
House Energy and Commerce Subcommittee holdsa a hearing with Rex Tillerson, Chairman and CEO of ExxonMobil; John Watson, Chairman and CEO of Chevron; James Mulva, Chairman and CEO of ConocoPhillips; Marvin Odum, President of Shell; and Lamar McKay of BP 09:33:02 MARKEY: 57 DAYS AGO IN THE DEAD OF 09:35:30 NIGHT, THE WORST ENVIRONMENTAL NIGHTMARE IN U.S. HISTORY BEGAN. 09:35:35 ON A SCREEN HERE, AND IN HOMES ACROSS THE COUNTRY, WE NOW SEE 09:35:42 THE LIVE VIDEO OF TENS OF THOUSANDS OF BARRELS OF OIL 09:35:48 BILLOWING INTO THE GULF OF MEXICO EVERY DAY. 09:35:52 FOR YEARS THE OIL INDUSTRY SWORE THIS COULD NEVER HAPPEN. 09:35:56 WE WERE TOLD THE TECHNOLOGY HAD ADVANCED, THAT OFFSHORE DRILLING 09:36:01 WAS SAFE. BP SAID THEY DIDN'T THINK THE 09:36:05 RIG WOULD SINK. IT DID. 09:36:07 THEY SAID THEY COULD HANDLE AN EXXON VALDEZ SPILL EVERY DAY. 09:36:14 THEY COULDN'T. BP SAID THE SPILL WAS 1,000 09:36:18 BARRELS PER DAY. IT WASN'T. 09:36:20 AND THEY KNEW IT. NOW THE OTHER COMPANIES HERE 09:36:24 TODAY WILL CONTINUE THE END THAT THIS WAS AN ISOLATED INCIDENT. 09:36:28 THEY WILL SAY A SIMILAR DISASTER COULD NEVER HAPPEN TO THEM. 09:36:34 AND, YET, IT IS THIS KIND OF BLIND FAITH, WHICH IS IRONICALLY 09:36:40 THE NAME OF AN ACTUAL RIG IN THE GULF THAT HAS LED TO THIS KIND 09:36:45 OF DISASTER. IN PREPARATION FOR THIS HEARING, 09:36:48 THE COMMITTEE REVIEWED THE OIL SPILL SAFETY RESPONSE PLANS FOR 09:36:53 ALL OF THE COMPANIES HERE TODAY. WHAT WE FOUND WAS THAT THESE 09:36:59 FIVE COMPANIES HAVE RESPONSE PLANS THAT ARE VIRTUALLY 09:37:04 IDENTICAL. THE PLANS CITE IDENTICAL 09:37:06 RESPONSE CAPABILITIES AND TOUT INEFFECTIVE EQUIPMENT. 09:37:14 IN SOME CASES THEY USE THE EXACT SAME WORD. 09:37:17 WE FOUND ALL OF THESE COMPANIES NOT JUST BP MADE THE EXACT SAME 09:37:24 ASSURANCES. THE COVERS OF THE FIVE RESPONSE 09:37:27 PLANS ARE DIFFERENT COLORS, BUT THE CONTENT IS 90% IDENTICAL. 09:37:34 LIKE BP, THREE OTHER COMPANIES INCLUDE REFERENCES TO PROTECTING 09:37:46 WALRUSSE WHICH HAVE NOT CALLED THE GULF OF MEXICO FOR 3 MILLION 09:37:50 YEARS. TWO OTHERS ARE SUCH DEAD RINGERS 09:37:54 FOR BP THAT THEY LIST THE SAME PHONE NUMBER FOR A LONG DEAD 09:37:58 EXPERT. THE AMERICAN PEOPLE DESERVE OIL 09:38:01 SAFETY PLANS THAT ARE IRON CLAD AND NOT BOILERPLATE. 09:38:05 WE NOW KNOW THE OIL INDUSTRY AND THE GOVERNMENT AGENCY TASKED 09:38:09 REGULATING WITH THEM DETERMINE THAT THERE WAS A ZERO CHANCE 09:38:13 THAT THIS KIND OF UNDER SEA DISASTER COULD EVER HAPPEN. 09:38:17 WHEN YOU BELIEVE THAT THERE IS ZERO CHANCE OF A DISASTER 09:38:22 HAPPENING, YOU DO ZERO DISASTER PLANNING. 09:38:26 AND THE OIL INDUSTRY HAS INVESTED NEARLY ZERO TIME AND 09:38:30 MONEY INTO DEVELOPING SAFETY AND RESPONSE EFFORTS. 09:38:35 THE OIL COMPANIES BEFORE US TODAY AMASSED NEARLY $289 09:38:42 BILLION IN PROFITS OVER THE LAST THREE YEARS. 09:38:48 THEY SPENT $39 BILLION TO EXPLORE FOR NEW OIL AND GAS. 09:38:53 YET, THE AVERAGE INVESTMENT IN RESEARCH AND DEVELOPMENT FOR 09:38:58 SAFETY ACCIDENT PREVENTION AND SPILL RESPONSE WAS A PALTRY $20 09:39:05 MILLION PER YEAR, LESS THAN ONE TENTH OF 1% OF THEIR PROFITS. 09:39:10 THE OIL COMPANIES MAY THINK IT'S FINE TO PRODUCE CARBON COPIES OF 09:39:14 THEIR SAFETY PLANS, BUT THE AMERICAN PEOPLE EXPECT AND 09:39:18 DESERVE MORE. IT IS TIME TO EXPECT MORE FROM 09:39:22 THE OIL INDUSTRY AND THAT NEEDS TO START TODAY. 09:39:28 FIRST, CONGRESS MUST ENSURE THAT THERE IS UNLIMITED LIABILITY FOR 09:39:32 OIL SPILLS BY OIL COMPANIES. WHILE WE TRY TO CAP THIS WELL, 09:39:37 WE MUST LIFT THE CAP ON OIL INDUSTRY LIABILITY. 09:39:43 SECOND, CONGRESS MUST ALSO ENACT WIDE RANGING OF SAFETY REFORMS 09:39:47 FOR OFFSHORE DRILLING. IF OIL COMPANIES ARE GOING TO 09:39:51 PURSUE ULTRADEEP DRILLING, WE MUST ENSURE THAT IT IS 09:39:57 ULTRASAFE, AND THAT COMPANIES CAN RESPOND ULTRAFAST. 09:40:02 THIRD, THE FREE RIDE IS OVER. OIL COMPANIES NEED TO PAY THEIR 09:40:08 FAIR SHARE TO DRILL ON PUBLIC LAND. 09:40:10 RIGHT NOW EVERY SINGLE ONE OF THE COMPANIES HERE TODAY AND 09:40:14 DOZENS OF OTHERS ARE DRILLING FOR FREE IN THE GULF OF MEXICO 09:40:18 ON LEASES THAT WILL COST AMERICAN TAXPAYERS MORE THAN $50 09:40:25 BILLION IN LOST ROYALTIES. AND FOURTH, WE MUST ENSURE THAT 09:40:29 NEW TECHNOLOGIES ARE DEVELOPED FOR CAPPING WELLS, BOOSTING 09:40:34 SAFETY AND CLEANING UP SPILLS. I WILL SOON INTRODUCE THE OIL 09:40:39 SOS ACT TO ASSURE WE HAVE 21st CENTURY TECHNOLOGIES IN PLACE 09:40:44 FOR 21st CENTURY DRILLING RISKS. AND FINALLY, AMERICA MUST MOVE 09:40:48 TO A SAFER, CLEAN ENERGY FUTURE SO THAT WE DON'T HAVE TO RELY AS 09:40:54 MUCH ON OIL TO POWER OUR CARS AND OUR ECONOMY. 09:40:59 THE AMERICAN PEOPLE DESERVE ANSWERS FROM THE OIL INDUSTRY 09:41:02 AND I LOOK FORWARD TO THE TESTIMONY OF OUR WITNESSES. 09:41:06 ILL LIKE NOW TO RECOGNIZE MY DISTINGUISHED COLLEAGUE FROM 09:41:10 MICHIGAN, THE RANKING MEMBER OF THE SUBCOMMITTEE, THE GENTLEMAN, 09:41:15 AGAIN FROM MICHIGAN. THANK YOU, MR. CHAIRMAN. 09:41:18 I THANK YOU FOR CALLING THIS VERY IMPORTANT HEARING. 09:41:22 WHAT HAPPENED ON THE DEEP WATER HORIZON RIG WAS TRULY A NATIONAL 09:41:28 TRAGEDY. THE LOSS OF LIFE WAS 09:41:30 HEARTBREAKING, THE ENVIRONMENTAL AND ECONOMIC DAMAGE THAT WORSENS 09:41:33 BY THE DAY IS GUT WRENCHING. AS I'VE SAID MANY TIMES BEFORE 09:41:38 IT NEED BE MADE CRYSTAL CLEAR TO ALL INVOLVED THAT THE POLLUTER 09:41:43 WILL PAY. THE AMERICAN TAXPAYER SHOULD NOT 09:41:45 AND WILL NOT BE ON THE HOOK FOR THE COST OF THIS ACCIDENT. 09:41:50 BOTH ECONOMIC AND ENVIRONMENTAL. NOR SHOULD CONSUMERS BE PUNISHED 09:41:54 WITH TAX INCREASES PASSED IN THE NAME OF THE BP SPILL. 09:42:02 IT WILL ONLY FURTHER WEAKEN OUR ECONOMY. 09:42:05 WE NOW HAVE THE OPPORTUNITY TO LOOK BP AMERICA IN THE EYE AND 09:42:10 DEMAND THEY FULFILL THEIR RESPONSIBILITY FOR THE DISASTER 09:42:12 IN THE GULF AND AN IMPORTANT STEP IS THE CREATION OF AN 09:42:16 ESCROW ACCOUNT THAT WILL ENSURE AMERICAN TAXPAYERS ARE NOT LEFT 09:42:20 HOLDING THE TAB. IN THE WAKE OF THIS TRAGEDY, WE 09:42:23 MUST WORK TOGETHER TO FIND SOLUTIONS THAT WILL PROTECT 09:42:28 CONSUMERS, TAXPAYERS AND OUR NATIONAL SECURITY. 09:42:31 THE CLEAN UP HAS BEEN TOO SLOW, WAY TOO SLOW AND TOO INDECISIVE. 09:42:37 WE WANT ANSWERS AND WE WANT THEM ALL. 09:42:39 WE HAVE TO WORK TO ASSURE A DISASTER LIKE THIS NEVER HAPPENS 09:42:44 AGAIN. WHEN THAT RIG EXPLODED AND AS 09:42:50 MILLIONS OF GALLON OF OIL LEAKED INTO THE GULF OUR SECURITY 09:42:54 POSTURE HAS WEAKENED. I'M AWARE EACH WITNESS TODAY WAS 09:43:00 GIVEN A LENGTHY LIST OF QUESTIONS TO ANSWER IN ADVANCE. 09:43:03 THEY RELATE TO FRONTAL BOUNDARY AT HAND. 09:43:05 QUESTIONS ABOUT RIG SAFETY, ABOUT WORSE CASE SCENARIOS IF 09:43:09 THERE'S ANOTHER RIG EXPLOSION AND QUESTIONS ABOUT CHEMICAL 09:43:14 DISPERSANTS. LEGITIMATE AND CONSTRUCTIVE 09:43:16 QUESTIONS THAT WILL HELP US FORGE A SOLUTION ORIENTED 09:43:19 POLICY. I AM, HOWEVER, DISHEARTENED TO 09:43:22 LEARN A FEW OF THE QUESTIONS HAVE NOTHING TO DO WITH THE 09:43:27 DISASTER THAT WE'RE TRYING TO SOLVE AND SERVE THE POLITICAL 09:43:32 POINTS THAT WILL RAISE TAXES, ELIMINATE AMERICAN JOBS AND 09:43:35 LEAVE CONSUMERS ALREADY STRUGGLING IN THIS DOWN ECONOMY 09:43:39 WITH HIGH ENERGY COSTS. SOME OF THOSE QUESTIONS ARE HOW 09:43:43 MUCH IS YOUR COMPANY INVESTED IN THE DEPLOYMENT OF RENEWABLE 09:43:49 ALTERNATIVE ENERGY? WHAT STEPS DO YOU BELIEVE THAT 09:43:50 THE U.S. GOVERNMENT AND PRIVATE INDUSTRY SHOULD TAKE TO REDUCE 09:43:55 THE THREAT BY CLIMATE CHANGE. DOES YOUR COMPANY SUPPORT A CAP 09:44:00 ON GREENHOUSE EMISSIONS THAT INCLUDE TRANSPORTATION FUELS. 09:44:03 WOULD YOUR COMPANY BE ABLE TO PASS ANY OF THE COSTS OF 09:44:08 PURCHASING EMISSION ALLOWANCES THROUGH ITS CUSTOMERS. 09:44:11 FRANKLY, I WOULD PREFER TO BRING UP THE CAP AND TRADE BILL ON THE 09:44:15 HOUSE FLOOR BECAUSE I'M CONVINCED THIS YEAR IT WOULD 09:44:18 FAIL RATHER THAN PASS BY THE SEVEN VOTE MARGIN THAT IT DID 09:44:22 LAST SUMMER. BUT THAT'S NOT THE ISSUE AT 09:44:24 HAND. INSTEAD OF TAKING TIME TO TALK 09:44:26 ABOUT CAP AND TAX OR CAP AND TRADE, LET'S FIGURE OUT HOW TO 09:44:31 CAP THE WELL. WE'RE NOT HERE TO DISCUSS 09:44:35 CLIMATE CHANGE BUT RATHER WHAT EACH OF OUR WITNESSES THINK WENT 09:44:39 WRONG ON THE HORIZON RIG AND WHAT POLICY CHANGE COULD BE MADE 09:44:43 TO ENSURE IT NEVER HAPPENS AGAIN. 09:44:46 LEAPT US NOT FORGET WHAT'S ON THE LINE HERE. 09:44:48 JOBS, THE ENVIRONMENT, OUR ECONOMY AND NATIONAL SECURITY. 09:44:53 THREE YEARS AGO WHEN BP WAS CAUGHT INCREASING THE DISCHARGE 09:44:57 INTO LAKE MICHIGAN, I JOINED WITH THE GREAT LAKES CAUCUS AND 09:45:01 OTHER COLLEAGUES ON BOTH SIDES OF THE AISLE, ACROSS THE GREAT 09:45:04 LAKES TO BEAT BACK THE ATTEMPT TO INCREASE POLLUTION IN OUR 09:45:09 LAKE. WE DIDN'T TAKE A PARTISAN 09:45:12 POSTURE, WE WORKED TOGETHER TO SOLVE THE PROBLEM. 09:45:15 WE NEED SIMILAR BIPARTISANSHIP HERE TODAY. 09:45:17 THE GULF OF MEXICO ACCOUNTS FOR ALMOST A THIRD OF U.S. OIL 09:45:21 PRODUCTION. IF WE ELIMINATE THAT SUPPLY AND 09:45:24 OUR DEPENDENCY -- IF WE ELIMINATE THAT SUPPLY, 09:45:28 DEPENDENCY IN FOREIGN OIL WILL, INDEED GO UP. 09:45:32 SAUDI ARABIA WILL BE HAPPY. HUGO CHAVEZ, MAHMOUD 09:45:36 AHMADINEJAD, THEY WILL BE POPPING CHAMPAGNE. 09:45:38 BUT THE AMERICAN CONSUMER WILL BE REMEMBERING THE GOOD OLD DAYS 09:45:41 WHEN GAS WAS ONLY $4 A GALLON. THE TEAM OF ENGINEERS TAPPED BY 09:45:47 SECRETARY SALAZAR TO FIND OUT WHAT WENT WRONG ON THE RIG 09:45:53 RECENTLY I WROTE, WE BELIEVE THE BLOW-OUT WAS BY A COMPLEX CHAIN 09:45:57 OF HUMAN ERRORS COUPLED WITH SEVERAL EQUIPMENT FAILURES AND 09:46:01 WAS PREVENTABLE. THE PETROLEUM INDUSTRY WILL 09:46:04 LEARN FROM THIS. IT CAN AND WILL DO BETTER. 09:46:07 WE SHOULD NOT BE SATISFIED -- WAIT FOR A SECOND. 09:46:16 WE SHOULD NOT BE SATISFIED UNTIL THERE ARE NO DEATHS AND NO 09:46:21 ENVIRONMENTAL IMPACTS OFFSHORE EVER. 09:46:24 HOWEVER, WE MUST UNDERSTAND THAT AS WITH ANY HUMAN ENDEAVOR THERE 09:46:28 WILL ALWAYS BE RISKS, END QUOTE. LET'S LEARN FROM THIS AWFUL 09:46:33 MISTAKE. FIX THE PROBLEM. 09:46:34 CLEAN UP THE GULF. AND MOVE FORWARD TO FIXING OUR 09:46:38 AILING ECONOMY AND CREATE PRIVATE-SECTOR JOBS. 09:46:40 YIELD BACK MY TIME. THANK THE GENTLEMAN. 09:46:43 CHAIR RECOGNIZES THE CHAIRMAN OF THE FULL COMMITTEE, THE 09:46:47 GENTLEMAN FROM CALIFORNIA, MR. WAXMAN. 09:46:50 CHAIRMAN MARKEY, THANK YOU FOR HOLDING THIS HEARING AND 09:46:54 YOUR WORK ON THISH. YOU HAVE BEEN A TRUE CHAMPION 09:46:58 FOR TRANSPARENTSCY AND ACCOUNTABILITY AND YOUR EFFORTS 09:47:02 HAVE KEPT THE CONGRESS AND ADMINISTRATION AND AMERICAN 09:47:04 PEOPLE INFORMED ABOUT ENVIRONMENTAL DISASTER UNFOLDING 09:47:07 IN THE GULF. YESTERDAY, CHAIRMAN STUPAK AND I 09:47:11 RELEASED A LETTER DESCRIBING A SERIES OF QUESTIONABLE DECISIONS 09:47:15 MADE BY BP IN THE DAYS BEFORE THE BLOW-OUT. 09:47:18 TIME AFTER TIME, BP APPEARS TO HAVE TAKEN SHORT CUTS THAT 09:47:23 INCREASE THE RISKS OF CATASTROPHIC BLOW-OUT. 09:47:27 ONE OF THE ESSENTIAL QUESTIONS FOR TODAY'S HEARING IS WHETHER 09:47:31 THE OTHER OIL COMPANIES ARE ANY BETTER PREPARED THAN BP. 09:47:36 LAST WEEK AFTER RECEIVING A REQUEST FROM REPRESENTATIVE 09:47:41 WEHNER, THE COMMITTEE ASKED EACH OF THE FIVE MAJOR OIL COMPANIES 09:47:45 FOR THEIR OIL SPILL RESPONSE PLANS. 09:47:48 ON PAPER THEY ARE VERY IMPRESSIVE. 09:47:52 EACH DOCUMENT HAS MORE THAN 500 PAGES LONG AND IF I MIGHT I'LL 09:47:56 HOLD UP THE DOCUMENT THAT IS THE CONTINGENCY PLAN. 09:48:02 BUT WHAT THEY SHOW IS THAT EXXONMOBIL, CHEVRON, 09:48:07 CONOCOPHILLIPS, SHELL ARE NO BETTER PREPARED TO DEAL WITH THE 09:48:11 MAJOR OIL SPILL THAN BP. THE SAME COMPANY, THE RESPONSE 09:48:17 GROUP, WROTE THE FIVE PLANS AND DESCRIBED THEM AS COOKIE CUTTER 09:48:22 PLANS. MUCH OF THE TEXT IS IDENTICAL. 09:48:24 FOUR OF THE PLANS DISCUSS HOW TO PROTECT WALRUSES BUT THERE ARE 09:48:29 NO WALRUSES IN THE GULF OF MEXICO. 09:48:33 WE ANALYZED TWO KEY PARTS OF THE PLANS. 09:48:35 THE PROVISIONS FOR STOPPING A SUB SEA BLOW-OUT LIKE THE ONE 09:48:41 THAT IS SPEWING OIL ACROSS THE GULF AND THEIR WORST CASE 09:48:45 SCENARIOS. WE FOUND NONE OF THE FIVE OIL 09:48:48 COMPANIES HAS AN ADEQUATE RESPONSE PLAN. 09:48:51 IT'S INSTRUCTIVE TO COMPARE EXXONMOBIL'S PLAN FOR 09:48:55 CONTROLLING THE SUB SEA BLOW-OUT WITH BP'S PLAN. 09:48:59 HERE'S WHAT BP SAYS IN ITS PLAN. IN THE EVENT THE SPILL SOURCE 09:49:04 CANNOT BE CONTROLLED, BY THE FACILITY OPERATOR OR REMOTELY 09:49:09 WITH A SAFETY SYSTEM, BP WILL ACTIVATE THE OIL SPILL RESPONSE 09:49:16 PLAN AND ASSEMBLE A TEAM OF EXPERTS TO RESPOND TO THE 09:49:20 SITUATION. HERE'S WHAT EXXONMOBIL SAYS. 09:49:22 YOU CAN SEE THE TEXT ON THE SCREEN. 09:49:25 IN THE EVENT THE SPILL SOURCE CANNOT BE CONTROLLED BY THE 09:49:30 FACILITY OPERATOR OR RELOTLY WITH A SAFETY SYSTEM, EXXONMOBIL 09:49:34 WILL ACTIVATE THE OIL SPILL RESPONSE AND ASSEMBLE A TEAM OF 09:49:40 TECHNICAL EXPERTS TO RESPOND TO THE SITUATION. 09:49:43 THE PLANS ARE IDENTICAL. AND SO ARE THE PLANS FOR CHEVRON 09:49:48 AND CONOCOPHILLIPS. SHELL DID NOT GIVE US A WELL 09:49:51 CONTROLLED CONTINGENCY PLAN BUT IT SAYS SHELL WOULD USE THE SAME 09:49:56 STRATEGIES OF TOP KILLS AND JUMP SHOTS THAT HAVE ALREADY FAILED. 09:50:02 EACH OF THE FIVE OIL SPILL RESPONSE PLANS ALSO INCLUDE A T 09:50:06 CASE SCENARIO INVOLVING AN OFFSHORE EXPLORATORY WELL. 09:50:12 ON PAPER THESE PLANS LOOK REASSURING. 09:50:15 BP'S PLAN SAYS IT CAN HANDLE A SPILL OF 250,000 BARRELS PER 09:50:21 DAY. BOTH CHEVRON AND SHELL SAY THEY 09:50:23 CAN HANDLE OVER 200,000 BARRELS PER DAY AND EXXON SAYS IT CAN 09:50:28 HANDLE OVER 150,000 BARRELS PER DAY. 09:50:31 THAT IS FAR MORE OIL THAN IS CURRENTLY LEAKING INTO THE GULF 09:50:36 FROM BP'S WELL. BUT WHEN YOU LOOK AT THE 09:50:39 DETAILS, IT BECOMES EVIDENT THESE PLANS ARE JUST PAPER 09:50:45 EXERCISES. BP FAILED MISERABLY WHEN 09:50:48 CONFRONTED WITH A REAL LEAK AND ONE CAN ONLY WONDER WHETHER 09:50:52 EXXONMOBIL AND THE OTHER COMPANIES WOULD DO ANY BETTER. 09:50:56 BP'S PLAN SAYS IT CONTRACTED WITH THE MARINE SPILL RESPONSE 09:51:01 CORPORATION TO PROVIDE EQUIPMENT FOR A SPILL RESPONSE. 09:51:04 ALL THE OTHER COMPANIES RELY ON THE SAME CONTRACTOR. 09:51:09 BP'S PLAN SAYS ANOTHER CONTRACTOR WILL OKAYIZE ITS OIL 09:51:14 SPILL REMOVAL. CHEVRON, SHELL, EXXONMOBIL USE 09:51:19 THE SAME CONTRACTOR. BP'S PLAN RELIES ON 22,000 09:51:25 GALLONS OF DISPERSANT STORED IN KILN, MISSISSIPPI, WELL, SO DO 09:51:30 EXXONMOBIL AND THE OTHER COMPANIES. 09:51:32 I COULD GO ON BUT I THINK YOU CAN GET MY POINT. 09:51:35 THESE ARE COOKIE CUTTER PLANS. EXXONMOBIL, CHEVRON, 09:51:40 CONOCOPHILLIPS AND SHELL ARE AS UNPREPARED AS BP WAS AND THAT'S 09:51:45 A SERIOUS PROBLEM. IN THEIR TESTIMONY AND RESPONSES 09:51:49 TO QUESTIONS, THE COMPANIES SAY THEY ARE DIFFERENT THAN BP. 09:51:53 BUT WHEN YOU EXAMINE THEIR ACTUAL OIL SPILL RESPONSE PLANS 09:51:57 AND COMPARE THEM TO BP, IT'S HARD TO SHARE THEIR CONFIDENCE. 09:52:02 AT THIS HEARING, CONGRESS NEEDS TO PASS -- CONGRESS NEEDS TO 09:52:08 REVIEW THE EVIDENCE AND PASS NEW LAWS THAT PUT TEETH INTO OUR 09:52:11 REGULATORY SYSTEM BUT WE CANNOT STOP THERE. 09:52:14 OUR NATIONAL ENERGY POLICY IS BROKEN. 09:52:17 WE'RE ADDICTED TO OIL, AND THIS ADDICTION IS FOULING OUR 09:52:21 BEACHES, POLLUTING OUR ATMOSPHERE AND UNDERMINING OUR 09:52:24 NATIONAL SECURITY. THANK YOU, MR. CHAIRMAN. 09:52:28 WE THANK THE CHAIRMAN. THE CHAIR RECOGNIZES THE RANKING 09:52:31 MEMBER OF THE FULL COMMITTEE, THE GENTLEMAN FROM TEXAS, 09:52:33 MR. BARTON. THANK YOU, CHAIRMAN MARKEY, 09:52:37 AND I APPRECIATE YOU AND CHAIRMAN WAXMAN HOLDING THIS 09:52:41 HEARING TO BRING OUR MAJOR OIL COMPANY EXECUTIVES BEFORE US AND 09:52:45 IN DOING SO, BEFORE THE AMERICAN PEOPLE. 09:52:47 I HAVE A PREPARED STATEMENT I'LL GIVE TO THE RECORD. 09:52:53 I'VE LISTENED WITH INTEREST TO THE OPENING STATEMENT OF 09:52:58 CHAIRMAN MARKEY AND CHAIRMAN WAXMAN. 09:53:00 I WANT TO SAY IN TERMS OF DOING THE INVESTIGATION, I COMMEND THE 09:53:04 MAJORITY STAFF, ESPECIALLY ON THE OVERSIGHT AND INVESTIGATION 09:53:07 SUBCOMMITTEE THAT MR. STUPAK HOLDS. 09:53:11 WE ARE GETTING THE FACTS ASSEMBLED AND PUTTING THEM OUT 09:53:14 IN AN OPEN AND TRANSPARENT FASHION SO THE AMERICAN PEOPLE 09:53:17 CAN UNDERSTAND TO THE EXTENT IT'S POSSIBLE TO UNDERSTAND 09:53:19 EXACTLY WHAT HAPPENED. IT'S NO QUESTION THAT THE 09:53:25 BRITISH PETROLEUM OIL COMPANY, WHO'S THE OWNER IN CHIEF 09:53:30 OPERATOR OF THE RIG THAT HAD THE ACCIDENT IS RESPONSIBLE FOR THE 09:53:36 ACCIDENT. IT'S ALSO AS MR. WAXMAN HAS 09:53:41 POINTED OUT THE RESPONSIBILITY OF OUR MAJOR OIL COMPANIES TO 09:53:43 HAVE ADEQUATE CONTINGENCY PLANS WHEN THINGS GO WRONG. 09:53:48 SO I'M NOT TRYING TO WHITEWASH THE PRIVATE SECTOR IN TERMS OF 09:53:53 THEIR RESPONSIBILITY FOR CAUSING THIS PROBLEM, BUT I WANT TO 09:53:56 POINT OUT SOMETHING THAT HASN'T YET BEEN POINTED OUT. 09:53:59 THE FIVE PEOPLE MOST CONCERNED ABOUT SOLVING THE PROBLEM ARE 09:54:03 PROBABLY SITTING BEFORE US TODAY. 09:54:06 EXXONMOBIL, CHEVRON, CONOCOPHILLIPS, SHELL OIL AND BP 09:54:11 AMERICA HAVE HUGE INTERESTS IN GETTING IT RIGHT AND PREVENTING 09:54:15 IT FROM EVER BEING WRONG AGAIN. IF YOU ADD THE MARKET CAPS OF 09:54:21 THOSE FIVE COMPANY, THEY WOULD NOT EQUAL THE MARKET CAP OF SOME 09:54:26 OF THE OIL COMPANIES THAT ARE OWNED BY SOVEREIGN NATIONS SUCH 09:54:31 AS SAUDI ARABIA, VENEZUELA, REPUBLIC OF MEXICO, SO I WOULD 09:54:37 STIPULATE, MR. CHAIRMAN, THAT WHILE OUR MAJOR OIL COMPANIES 09:54:42 HAVE CAUSED THIS -- AT LEAST BRITISH PETROLEUM IS THE CAUSE 09:54:46 OF THIS PARTICULAR PROBLEM, I WILL ALSO STIPULATE THAT THE 09:54:50 GENTLEMAN BEFORE US ARE A BIG PART OF THE SOLUTION. 09:54:53 WITH THE PRESIDENT OF THE UNITED STATES HAS GOT A BETTER IDEA OF 09:54:56 HOW TO SOLVE THIS PROBLEM RIGHT NOW, HE CAN PICK UP THE PHONE 09:54:59 AND TELL BP EXACTLY WHAT TO DO. IT IS A FEDERAL ISSUE IN TERMS 09:55:05 OF THE MITIGATION PLAN, IN TERMS OF THE CLEANUP PLAN AND IF 09:55:08 THERE'S ANYBODY FROM PRESIDENT OBAMA ON DOWN WHO REALLY KNOWS 09:55:13 THE SOLUTION, IT CAN STOP THAT OIL FROM SPILLING RIGHT NOW, BY 09:55:19 GOLLY, ALL THEY HAVE TO DO IS PICK UP THE PHONE AND TELL THEM 09:55:22 WHAT TO DO. THE FACT THEY'RE NOT IS SIMPLY 09:55:24 BECAUSE THE LAWS OF NATURE AND THE LAWS OF PHYSICAL SICK DON'T 09:55:27 RESPOND TO 30-SECOND SOUND BITES. 09:55:30 YOU'VE GOT TO KNOW EXACTLY WHAT TO DO, AND YOU'VE GOT TO HAVE 09:55:34 THE INC. NEARING AND TECHNOLOGY AVAILABLE TO DO IT. 09:55:36 AMERICA NEEDS THE ENERGY THAT'S BENEATH THE GULF OF MEXICO AND 09:55:39 IN THE OUTER CONTINENTAL SHELF. 30% OF OUR OIL AND GAS IS COMING 09:55:45 FROM THE OCS RIGHT NOW AND 80% OF THAT IS COMING FROM WHAT ARE 09:55:50 CALLED DEEP RIGS. WE HAVE A DEPLETION RATE OF 09:55:53 EXISTING PRODUCTION IN THIS COUNTRY, MR. CHAIRMAN, OF 30% TO 09:55:57 40%. THAT MEANS OF THE 8 MILLION 09:56:01 BARRELS OF OIL AND GAS WE'RE PRODUCING PER DAY, NEXT YEAR 09:56:04 WE'RE ONLY GOING TO BE ABLE TO PROVIDE 5.5 OR 6 MANAGER. 09:56:08 YOU HAVE TO REPLACE THAT ENERGY, AND SINCE WE HAVE DRILLED 09:56:11 MILLIONS OF WELLS ON SHORE SINCE 1896 OR SINCE 1870s IN 09:56:19 PENNSYLVANIA, THE FACT OF THE MATTER IS IF YOU'RE GOING TO 09:56:21 FIND SIGNIFICANT OIL RESERVES IN THE CONTINENTAL UNITED STATES, 09:56:25 THEY'RE GOING TO BE IN THE OUTER CONTINENTAL SHELF, SO WE NEED 09:56:29 THAT ENERGY. NOW, I AGREE WITH CHAIRMAN 09:56:31 WAXMAN THAT HAVING A 500-PAGE DOCUMENT THAT'S A COOKIE CUTTER 09:56:35 APPROACH TO WHAT TO DO WHEN YOU HAVE A PROBLEM IS NOT AN ANSWER. 09:56:40 IT'S NOT AN ANSWER. YOU CAN'T HAVE A CONTINGENCY 09:56:43 PLAN THAT SAYS CROSS YOUR FINGERS AND HOPE THE BLOW-OUT 09:56:47 PREVENTER WORK AND THAT WAS THE CONTINGENCY PLAN. 09:56:50 WE HAVEN'T HAD A MAJOR ACCIDENT IN THE OCS IN 50 YEARS. 09:56:54 EVERYBODY HAD DECIDED THAT THESE BLOW-OUT PREVENTERS WERE SO GOOD 09:57:02 ALL YOU HAD TO DO IS PUSH THE MAGIC BUTTON AND IT WOULD WORK. 09:57:07 WELL, THEY PUSHED THE MAGIC BUTTON ON THE BP RIG, AND IT 09:57:10 DIDN'T WORK SO CHAIRMAN WAXMAN IS RIGHT, WE NEED MORE THAN A 09:57:15 COOKIE CUTTER CONTINGENCY PLAN. BUT WHERE I DISAGREE OR I THINK 09:57:18 I DISAGREE WITH CHAIRMAN WAXMAN AND CHAIRMAN MARKEY IS THAT THE 09:57:23 GENTLEMEN BEFORE US HAVE THE WHEREWITHAL AND THE EXPERTISE 09:57:27 AND CERTAINLY HAVE THE INCENTIVE TO PUT THAT PLAN TOGETHER. 09:57:30 NOW, I DON'T KNOW WHAT THE ANSWERS ARE. 09:57:33 MAYBE WE NEED A FULL-TIME SAFETY INSPECTOR ON THESE RIGS. 09:57:36 MAYBE WE NEED A REALTIME DATA CENTER SOMEWHERE THAT ALL THE 09:57:42 DRILLING INFORMATION GOES TO A CENTRAL DATA POINT WHERE THERE'S 09:57:45 SOMEBODY IN CHARGE OF SAFETY THAT LOOKS AT IT. 09:57:48 IT DOES APPEAR THAT IF PEOPLE HAD BEEN LOOKING FOR THE PROBLEM 09:57:52 THAT WE NOW KNOW HAPPENED, THE DATA WAS THERE TO TELL THEM WHAT 09:57:55 TO DO. BUT THEY WEREN'T LOOKING FOR 09:57:58 THAT. THIS RIG WAS 40 DAYS BEHIND 09:58:01 SCHEDULE AND MILLIONS OF DOLLARS OVER SCHEDULE AND THERE WAS A 09:58:04 LOT OF PRESSURE TO FINISH THE JOB AND THERE WAS NOBODY ON THAT 09:58:09 RIG WHOSE JOB WAS TO MAKE SURE THAT THEY MADE THE SAFE 09:58:14 DECISION, AND SO WHEN YOU START MAKING DECISION AFTER DECISION 09:58:19 AFTER DECISION THAT IS NOT IN AND OF ITSELF A BAD DECISION BUT 09:58:25 CUMULATIVELY MINIMIZE SAFETY EVENTUALLY YOU REACH A WITT CAL 09:58:30 MASS AND YOU HAVE AN ACCIDENT THAT HAPPENED. 09:58:34 SO OUR JOB, MR. CHAIRMAN, IS THE WATCHDOGS FOR THE AMERICAN 09:58:38 PEOPLE ARE, ONE, GET THE FACTS ON THE TABLE, TWO, LISTEN TO 09:58:42 PEOPLE WHO HAVE POSSIBLE SOLUTIONS, THREE, IF THERE'S A 09:58:46 FEDERAL ISSUE AND A FEDERAL ROLE, LET'S DO IT. 09:58:50 BUT WHEN YOU TAKE A PATIENT TO THE EMERGENCY ROOM, THE SOLUTION 09:58:53 IS NOT NORMALLY TO KILL THE PATIENT. 09:58:57 THE SOLUTION IS TO STABILIZE THE PATIENT, DETERMINE WHAT NEEDS TO 09:59:01 BE DONE TO SAVE THE PATIENT AND THEN IMPLEMENT 10:00:00 10:00:00 BUT, UNFORTUNATELY, THEY APPEAR TO HAVE PLENTY OF COMPANY. 10:00:04 EXXON AND OTHER OIL COMPANIES ARE JUST AS UNPREPARED TO 10:00:06 RESPOND TO A MAJOR OIL SPILL IN THE GULF AS BP. 10:00:11 I'VE BEEN EXAMINING THE OIL SPILL RESPONSE PLAN OF 10:00:15 EXXONMOBIL, THE LARGEST OIL COMPANY IN THE UNITED STATES. 10:00:18 THIS DOCUMENT AS MR. WAXMAN SHOWED US IS OVER 500 PAGES 10:00:22 LONG. IN MANY RESPECTS IT IS VIRTUALLY 10:00:25 INDISTINGUISHABLE FROM BP'S RESPONSE PLAN AND RESPONSE PLANS 10:00:27 OF THE OTHER MAJOR OIL COMPANIES. 10:00:30 AT THIS TIME, MR. CHAIRMAN, I'D ASK UNANIMOUS CONSENT THAT THE 10:00:33 RESPONSE PLANS OF THE MAJOR OIL COMPANIES BE MADE PART OF THE 10:00:36 RECORD. WITHOUT OBJECTION, SO 10:00:38 ORDERED. THANK YOU. 10:00:39 THERE IS ONE MAJOR DIFFERENCE BETWEEN EXXONMOBIL'S PLAN AND 10:00:42 THE OTHER RESPONSE PLAN. THE SECTION DEALING WITH THE 10:00:47 MEDIUM. BP, SHELL, CONOCOPHILLIPS AND 10:00:49 CHEVRON HAVE PLANS WITH SHORT MEDIA RELATION SECTIONS. 10:00:53 EXXONMOBIL HAS AN ENTIRE 0-PAGE APPENDIX DEVOTED TO HOW TO 10:00:58 RESPOND TO THE PRESS. THE MEDIA SECTION IN THE 10:01:01 EXXONMOBIL PLAN DIRECTS PUBLIC AFFAIRS PERSONNEL TO AS YOU CAN 10:01:05 SEE ON DISPLAY MAINTAIN ON CAMERA SKILL PROFICIENCY. 10:01:09 IT ALSO EXPLAINS THAT COMMUNICATIONS WHICH CONVEY CARE 10:01:14 AND CONCERN FOR THE SITUATION AND PROVIDE RELEVANT FACTUAL 10:01:19 INFORMATION ARE AN INTEGRAL PART OF EXXONMOBIL'S RESPONSE. 10:01:23 IT SETS UP A FOUR-TIERED SYSTEM WHO CAN RESPOND TO MEDIA 10:01:26 INQUIRIES. THE HIGHEST LEVEL CATEGORY "D" 10:01:32 DICTATE SPECIAL TREATMENT ABOUT QUESTIONS ABOUT GLOBAL WARMING 10:01:36 AND THE "EXXON VALDEZ" AND CONTAINS 13 PREDRAFTED PRESS 10:01:41 RELEASES FOR ALMOST ANY OCCASION. 10:01:54 THERE IS A FULLY DRAFTED PRESS RELEASE FOR AN ACCIDENT 10:01:59 INVOLVING EXXONMOBIL FACILITY. IF THE INJURY OCCURS OFF-SITE, 10:02:02 THERE IS A SEPARATE PRESS RELEASE FOR THAT. 10:02:04 SIX OF THE STOCKPILED PRESS RELEASES ARE READY TO EXPRESS 10:02:08 THEY DEEPLY REGRET AN OUTCOME WHILE TWO OR MORE PRESS RELEASES 10:02:13 STAND READY TO EXPRESSION THAT EXXONMOBIL IS DEEPLY SADDENED. 10:02:17 THE MEDIA SECTION CONTAINS A TOPIC GUIDE WITH TALKING POINTS 10:02:21 ON OVER 65 ISSUES. AND FIVE DIFFERENT PLACES THE 10:02:24 PLAN DIRECTS THE PUBLIC AFFAIRS AGENTS IS TOY "WE COMPLY WITH 10:02:30 ALL APPLICABLE LAWS AND REGULATIONS AND APPLY REASONABLE 10:02:33 STANDARDS WHERE LAWS AND REGULATIONS DO NOT EXIST." 10:02:36 IF A PUBLIC AFFAIRS OFFICER IS ASKED ABOUT CRIMINAL CHARGES, 10:02:39 THE PLAN INSTRUCTIONS THEM TO SAY "WE BELIEVE THAT THERE ARE 10:02:42 NO GROUNDS FOR SUCH CHARGES. THIS WAS CLEARLY AN ACCIDENT AND 10:02:46 WE ARE WORKING TO RESPOND TO THE IMMEDIATE NEEDS OF THE 10:02:50 INCIDENT." THAT TALKING POINT IS READY TO 10:02:52 GO BEFORE A HYPOTHETICAL INCIDENT EVEN OCCURS, BEFORE 10:02:56 EXXONMOBIL COULD HAVE ANY IDEA OF WHETHER IT WAS ACTUALLY AN 10:02:59 ACCIDENT OR IF THERE ARE ANY GROUNDS FOR CRIMINAL CHARGES. 10:03:02 IN SHORT, EXXONMOBIL HAS METICULOUSLY ANTICIPATED L 10:03:07 VIRTUALLY EVERY CONVERSATION THAT THE COMPANY MIGHT NEED TO 10:03:10 HAVE WITH THE MEDIA IN THE DAYS FOLLOWING AN OIL SPILL IN THE 10:03:12 GULF OF MEXICO. MY PROBLEM IS, THAT EXXONMOBIL 10:03:17 HAS GIVEN FAR LESS ATTENTION TO ACTUALLY CONTROLLING THE SPILL. 10:03:22 WHILE EXXONMOBIL HAS 40 PAGES ON ITS MEDIA RESPONSE STRATEGY, ITS 10:03:26 PLAN FOR RESOURCE PROTECTION IS ONLY 5 PAGES LONG AND ITS PLAN 10:03:30 FOR OIL REMOVAL IS JUST 9 PAGES LONG. 10:03:34 WE'VE ALL SEEN THE HORRIBLE IMAGES OF PELICANS AND OTHER 10:03:39 WILDLIFE COATED IN OIL FROM THE SPILL. 10:03:42 EXXONMOBIL'S PLAN IS MORE WORRIED ABOUT PUBLIC PERCEPTION 10:03:46 THAN WILDLIFE GIVEN THE MEDIA PLAN IS FIVE TIMES LONGER THAN 10:03:49 THE PLAN FOR PROTECTING WILDLIFE AND THE CANNED PREDRAFTED DEEPLY 10:03:54 SADDENED PRESS RELEASE RINGS HOLLOW WITH THE LOSS OF THE 11 10:03:57 PEOPLE WHO DIED ON THE DEEPWATER HORIZON RIG. 10:04:01 EXXONMOBIL'S PLAN IS A PERFECT METAPHOR FOR WHAT'S GOING WRONG 10:04:05 IN THE GULF TODAY. THE OIL COMPANY RESPONSE PLANKS 10:04:07 ARE GREAT FOR PUBLIC RELATIONS. THEY ALLOW THE OIL COMPANY TO 10:04:11 SAY WE HAVE A 500-PAGE PLAN TO SHOWS THEY'RE PREPARED FOR ANY 10:04:17 CONTINGENCY BUT THESE PLANS ARE VIRTUALLY WORTHLESS WHEN A SPILL 10:04:20 ACTUALLY OCCURS AND THAT'S EXACTLY THE KIND OF MISPLACED 10:04:24 PRIORITIES THAT HAS LED TO THIS DISASTER. 10:04:26 I YIELD BACK THE BALANCE OF MY TIME. 10:04:29 WE THANK THE GENTLEMAN. THE CHAIR NOW RECOGNIZES THE 10:04:32 RANKING MEMBER OF THE OVERSIGHT AND INVESTIGATION SUBCOMMITTEE, 10:04:37 THE GENTLEMAN FROM TEXAS, MR. BURGESS. 10:04:39 I THANK THE CHAIRMAN AND I DO HAVE TO WONDER WHAT ANY OF US 10:04:44 EXPECT TO ACHIEVE WITH THIS HEARING TODAY. 10:04:46 I KNOW THAT THE FOLKS AT HOME ARE SAYING AND THINKING THEY 10:04:55 WANT IT TO STOP TODAY BUT IT CONTINUES TO LEAK BUT I DON'T 10:04:58 THINK ANYONE BEHIND THE DAIS WILL TELL US HOW TO TURN THAT 10:05:03 FLOW OFF TODAY. YOU KNOW, THE MAJORITY DID NOT 10:05:05 CALL THIS HEARING TO TALK ABOUT MEANINGFUL SOLUTIONS TO SHUTTING 10:05:10 OFF THAT FLOW IN THE GULF TODAY BECAUSE THIS SITUATION REALLY 10:05:15 PRESENTS ITSELF TOO GREAT AN OPPORTUNITY TO GIVE SOME MEMBERS 10:05:18 OF THIS COMMITTEE THE IMPETUS FOR PASSING EVEN MORE 10:05:23 REGULATIONS. AND LIKELY THERE WILL ALSO BE 10:05:25 THE OPPORTUNITY TO INCREASE ENERGY TAXES THAT AMERICANS WILL 10:05:29 PAY INTO THE FORESEEABLE FUTURE UNDER THE GUISE OF CLEAN ENERGY 10:05:33 OR CLIMATE CHANGE LEGISLATION. THE PRESIDENT'S CHIEF OF STAFF, 10:05:36 RAHM EMANUEL, SPELLED OUT THE DEMOCRATIC STRATEGY FOR NATIONAL 10:05:39 FRG POLICY BEST WHEN HE ANNOUNCED YOU NEVER WANT TO LET 10:05:42 A SERIOUS CRISIS GO TO WASTE AND THIS IS A SERIOUS CRISIS. 10:05:47 BUT IN SOME WAYS, MR. CHAIRMAN, THIS COMMITTEE UNDERMINES ITS 10:05:52 OWN BELIEF, 11 LIVES WERE LOST WHEN WE CAPITALIZE ON A TRAGEDY 10:05:58 TO PUSH FORWARD A POLITICAL AGENDA. 10:06:01 NOW, I HOPE THE MAJORITY MEMBERS PROVE ME WRONG AND I HOPE THAT 10:06:05 DURING THIS HEARING THE MEMBERS OF THIS COMMITTEE WILL HAVE A 10:06:08 LASERLIKE FOCUS ON TRYING TO DISCERN OW WE STOP THIS LEAK. 10:06:11 BECAUSE THAT'S REALLY ALL THAT MATTERS RIGHT NOW. 10:06:14 THAT'S ALL THAT MATTERS TO THE FISHERMEN, TO THE SHRIMPERS AND 10:06:18 INDIVIDUALS WHOSE FAMILIES AND LIVELIHOODS HAVE BEEN PUT ON OIL 10:06:21 WHILE THE WELL CONTINUES TO SPILL INTO THE GULF OF MEXICO, 10:06:24 NOT HOW MUCH WE SPEND IN THE FUTURE ON SOLAR AND WIND 10:06:27 TECHNOLOGY, BOTH OF WHICH I SUPPORT, NOT HOW MUCH WE INVEST 10:06:30 IN NUCLEAR TECHNOLOGY AS CLEAN AS THAT MAY BE AND CERTAINLY HOW 10:06:35 MUCH THIS CONGRESS INTENDS TO CRIPPLE THE AMERICAN ECONOMY 10:06:38 EVEN FURTHER THAN IT ALREADY HAS WITH JOB-KILLING LEGISLATION. 10:06:42 WE'VE HAD THOSE DEBATES. WE'RE GOING TO HAVE THOSE 10:06:45 DEBATES IN THE FUTURE, BUT TODAY, TODAY LET'S KEEP THE 10:06:48 FOCUS WHERE IT BELONGS, AND IT'S PRETTY SIMPLE. 10:06:51 PLUG THE WELL, STOP THE SPILL, CLEAN THE GULF. 10:06:56 SO, MR. CHAIRMAN, I'M GOING TO RESPECTFULLY REQUEST, I KNOW YOU 10:07:00 SUBMITTED A LIST OF QUESTIONS THAT YOU WANT THE WITNESSES TO 10:07:03 ANSWER. I'M GOING TO ASK THEM TO INCLUDE 10:07:05 IN THEIR OPENING REMARKS HOW -- WHAT IDEAS THEY HAVE THAT WILL 10:07:09 STOP THE LEAK BECAUSE THAT'S REALLY THE QUESTION WE WANT 10:07:11 ANSWERED TODAY. IF THIS HEARING IS NOT ABOUT 10:07:14 STOPPING THE LEAK THEN WHY ARE WE HERE? 10:07:17 IN THE ALTERNATIVE IF THE WITNESSES TODAY REALLY DON'T 10:07:20 HAVE AN ANSWER TO THAT QUESTION, THEN RESPECTFULLY ONE MIGHT 10:07:22 SUGGEST THAT THIS COMMITTEE POSTPONE THE HEARING UNTIL WE 10:07:25 HAVE THE WITNESSES IN FRONT OF US WHO CAN ANSWER THAT QUESTION. 10:07:29 FINALLY, I BELIEVE THE MAJORITY IS LOOKING AT CRAFTING 10:07:32 LEGISLATION IN RESPONSE TO THE SPILL AND I'M CONCERNED THAT 10:07:34 THIS TRAGEDY WILL LEAVE CONGRESS TO DO WHAT IT SO OFTEN DOES AND 10:07:39 RUSH INTO WRITING LEGISLATION AND WITH REALLY NO THOUGHT TO 10:07:43 WHAT THE CONSEQUENCES DOWN THE ROAD WILL BE. 10:07:47 A WEEK AGO THE COMMITTEE ON OVERSIGHT AND INVESTIGATIONS HAD 10:07:51 A SUBCOMMITTEE FIELD HEARING IN LOUISIANA. 10:07:53 AND WE HEARD TESTIMONY AND IT WAS PRETTY TOUGH TESTIMONY FROM 10:07:57 TWO OF THE WIDOWS OF -- TWO WOMEN WHO HAD LOST HUSBANDS ON 10:08:02 THE DEEPWATER HORIZON. BOTH WIDOWS STATED UNEQUIVOCALLY 10:08:07 THEY BELIEVE THE CURRENT REGULATORY REQUIREMENTS FOR 10:08:09 OFFSHORE DRILLING ARE MORE THAN SUFFICIENT TO KEEP THE MEN AND 10:08:12 WOMEN WORKING ON THOSE OFFSHORE RIGS SAFE. 10:08:15 THE QUESTION THEN BECOMES IN WHETHER THE REGULATIONS ARE 10:08:19 BEING PROPERLY ENFORCED. MRS. NATALIE RASHTO TOLD OUR 10:08:23 COMMITTEE "AFTER ALL OF THE SAFETY SCHOOLS, MEETINGS, FIRE 10:08:27 DRILLS AND SAFETY REGULATIONS, I JUST KNEW HE WAS SAFE. 10:08:32 WE NEED TO FOCUS ON MAKING SAFETY THE MOST IMPORTANT 10:08:37 PRIORITY, TO THE TO FOCUS ON MAKING MORE SAFETY REGULATIONS, 10:08:40 BUT ON WAYS TO EFFECTIVELY IMPLEMENT AND USE THE ONES 10:08:43 ALREADY IN PLACE." MISS COURTNEY KEMP FOLLOWED WITH 10:08:50 HER STATEMENT, "I'M NOT HERE TODAY TO SUGGEST THAT CONGRESS 10:08:54 IMPLEMENT MORE SAFETY REGULATIONS, BUT RATHER TO 10:08:57 ENCOURAGE YOU TO HOLD COMPANIES ACCOUNTABLE FOR SAFETY 10:09:01 REGULATIONS THAT ARE ALREADY IN PLACE AND MERELY NEGLECTED." 10:09:07 AND MISS KEMP WENT ON TO SAY OFFICE ACCOUNTS FOR 75% TO 80% 10:09:11 OF ALL OF THE JOBS IN HER LITTLE TOWN IN LOUISIANA. 10:09:15 SHE SAID THAT LESS OFFSHORE DRILLING WOULD DEVASTATE THE 10:09:18 LOCAL ECONOMIES OF NOT ONLY COASTAL LOUISIANA BUT ALSO THE 10:09:22 ECONOMIES OF OTHER GULF COAST COMMUNITIES WHO RELY ON OFFSHORE 10:09:26 DRILLING AND OIL RIG JOBS. EVERY JOB ON THE RIG IS TON FOR 10:09:31 FOUR TO FIVE JOBS ONSHORE. WHEN ALL OF THIS IS SAID AND 10:09:34 DONE WE NEED TO FIND OUT WHY THE AGENCY, WHY OUR FEDERAL AGENCIES 10:09:39 CHARGED WITH ENFORCING SAFETY REGULATIONS APPEARED TO FEEL AS 10:09:43 IF THAT JOB WAS UNIMPORTANT. WE NEED TO FIND OUT WHY THEY 10:09:48 WERE ASLEEP AT THE SWITCH AND CERTAINLY WE NEED TO HOLD ANY 10:09:52 PARTY ACCOUNTABLE AT THE FEDERAL LEVEL THAT SKIRTED SAFETY 10:09:56 MEASURES. BUT FIRST WE MUST STOP THE LEAK. 10:10:00 MR. CHAIRMAN, I'LL YIELD BACK THE BALANCE OF MY TIME. 10:10:02 WE THANK THE CHAIRMAN. THE CHAIR RECOGNIZES THE 10:10:05 CHAIRMAN EMERITUS OF THE COMMITTEE, THE GENTLEMAN FROM 10:10:09 MICHIGAN, MR. DINGELL. THANK YOU FOR HOLDING THIS 10:10:16 HEARING. I HAVE A SPLENDID STATEMENT 10:10:18 WHICH I'M SURE EVERYONE WILL ENJOY READING AND IN ORDER TO 10:10:22 SAVE THE TIME OF THE COMMITTEE, I ASK UNANIMOUS CONSENT TO 10:10:27 INSERT IT INTO THE RECORD. WITHOUT OBJECTION, SO 10:10:29 ORDERED. ALL RIGHT. 10:10:39 THE GENTLEMAN'S TIME IS EXPIRED. THE CARE RECOGNIZES THE 10:10:43 GENTLEMAN FROM PENNSYLVANIA, MR. DOYLE. 10:10:44 MR. CHAIRMAN, THANK YOU FOR CONVENING THIS HEARING TODAY TO 10:10:47 EXAMINE THE IMPACTS OF OUR NATION'S DEPENDENCE ON OIL AND 10:10:51 THE SAFETY OF DRILLING OPERATIONS. 10:10:53 WE'RE 57 DAYS INTO THIS ENVIRONMENTAL AND ECONOMIC 10:10:57 TRAGEDY AND THE RESPONSE EFFORT IS ONGOING. 10:10:59 WE'VE LEARNED THAT THIS GULF OIL SPILL IS, IN FACT, THE LARGEST 10:11:03 IN U.S. HISTORY, NEW ESTIMATES SHOW THAT UNLIKE BP'S PREVIOUS 10:11:07 CLAIM OF 5,000 BARRELS LEAKING INTO THE GULF EACH DAY, IT'S 10:11:11 MORE LIKELY ABOUT 40,000 BARELIES ARE LEAKING INTO THE 10:11:14 GULF EACH DAY, BUT NO ONE REALLY KNOWS. 10:11:17 AS SUCH, PRESIDENT OBAMA HAS ISSUED A MORATORIUM ON ALL 33 OF 10:11:21 THE DEEPWATER DRILLING RIGS IN THE GULF OF MEXICO FOR SIX 10:11:25 MONTHS OR UNTIL THE COMPLETION OF THE PRESIDENTIAL COMMISSION 10:11:29 INVESTIGATING THE SPILL. THE NATIONAL OCEANIC AND 10:11:33 ATMOSPHERIC ADMINISTRATION HAS TOLD US ABOUT THE INABILITY OF 10:11:35 THE ADMINISTRATION TO HANDLE AN ADDITIONAL CONCURRENT OIL SPILL 10:11:38 AT THIS TIME AND AS HURRICANE SEASON BEGINS WITH CONDITIONS 10:11:43 RIFE WITH POTENTIAL FOR DISASTROUS STORMS I BELIEVE THE 10:11:47 ADMINISTRATION IS TAKING THE PROPER STEPS TO AVOID AN EVEN 10:11:49 MORE CATASTROPHIC EVENT. IN FACT, RECENT EVENTS ALL OVER 10:11:54 THE COUNTRY MERIT THE NEED FOR A SERIOUS REVIEW OF SAFETY 10:11:57 PRACTICES IN THE ENTIRE OIL AND GAS INDUSTRY. 10:12:00 JUST THIS WEEKEND, CHEVRON SPILLED AS MUCH AS 500 BARRELS 10:12:04 OF OIL INTO A STREAM IN UTAH AND THEN THE LAST FEW WEEKS, THE 10:12:10 MARSELLUS SHELL SAW TWO DIFFERENT BLOW-OUTS OF NATURAL 10:12:12 GAS WELLS ONE IN WEST VIRGINIA AND ONE IN MY HOME STATE OF 10:12:15 PENNSYLVANIA. IN THE BLOW-OUT IN PENNSYLVANIA, 10:12:18 THE BLOW-OUT PREVENTER FAILED ALLOWING NATURAL GAS AND 10:12:24 FRACKING FLUID TO GUSH FOR 16 HOURS WHILE THE CREW WITH THE 10:12:27 SKILLS TO CAP IT HAD TO BE KNOWN IN FROM TEXAS. 10:12:30 ONCE THEY ARRIVED IT ONLY TOOK THEM AN HOUR TO CAP THE WELL. 10:12:33 IN WEST VIRGINIA, THE GAS EXPLOSION CAUSED SEVEN WORKERS 10:12:36 TO BE INJURED AND FLAMES BURNED FOR DAYS BEFORE IT WAS BROUGHT 10:12:39 UNDER CONTROL. OUR GROWING ENERGY DEMANDS 10:12:43 REQUIRE THAT WE WILL CONTINUE TO USE NATURAL RESOURCES UNDER OUR 10:12:46 LAND AND SEA. BUT THERE IS SIMPLY NO REASON WE 10:12:49 SHOULD CONTINUE TO EXTRACT OUR NATURAL RESOURCES IN A 10:12:55 HEDGEMONIC AND VORACIOUS STYLE. THE OIL RESERVOIRS AREN'T GOING 10:12:59 ANYWHERE. THE NATURAL GAS IN THE MARSELLUS 10:13:02 SHELF ISN'T GOING ANYWHERE. I THINK IT'S TIME WE TAKE A STEP 10:13:06 BACK TO LEARN HOW TO DO IT BETTER AND SAFER AND FOR 10:13:10 SUFFICIENTLY. WITH THAT I YIELD BACK MY TIME. 10:13:12 THE CHAIR RECOGNIZES THE GENTLEMAN FROM ILLINOIS, 10:13:19 MR. SHIMKUS. WILL WE GET THE ADDITIONAL 10:13:23 MINUTES FOR QUESTIONS IF WE WAIVE OUR OPENING STATEMENT. 10:13:25 THAT IS CORRECT. I WAIVE MY OPENING STATEMENT. 10:13:29 THE CHAIR RECOGNIZES MR. SHADDOCK. 10:13:35 I SIMILARLY WILL WAIVE MY OPENING STATEMENT. 10:13:38 THE GENTLEMAN WAIVES HIS STATEMENT. 10:13:41 WE RECOGNIZE THE GENTLEMAN FROM MISSOURI, MR. WLUNTS. 10:13:46 WE RECOGNIZE MR. SULLIVAN. I WAIVE MY OPENING STATEMENT 10:13:50 TOO. THE CHAIR RECOGNIZES THE 10:13:52 GENTLEMAN FROM ALABAMA, MR. GRIFFITH. 10:13:55 I'D LIKE TO THANK THE CHAIRMAN AND RANKING MEMBER FOR 10:13:58 CALLING THIS IMPORTANT HEARING TODAY AND THE WITNESSES FOR 10:14:00 TAKING TIME TO COME BEFORE OUR SUBCOMMITTEE TO DISCUSS DRILLING 10:14:04 IN OUR CURRENT AND FUTURE ENERGY PORTFOLIO. 10:14:07 OUR NUMBER ONE PRIORITY MUST BE STOPPING THE FLOW OF OIL. 10:14:10 THAT'S CERTAINLY OBVIOUS. IT'S THE JOB OF THIS CONGRESS TO 10:14:12 DO WHATEVER WE CAN TO AID THE UNIFIED COMMAND IN REACHING THIS 10:14:16 GOAL. THIS IS A TIME OF ENGINEERING 10:14:18 AND ACTION. IT'S NOT A TIME TO HASTILY PUT 10:14:21 TOGETHER KNEE-JERK ENERGY POLICIES THAT WILL JEOPARDIZE 10:14:24 OUR ENERGY AND ECONOMIC SECURITY IN THE FUTURE. 10:14:26 IT IS IMPERATIVE THAT THIS COMMITTEE REMEMBER THAT THE 10:14:29 UNITED STATES IS PART OF THE GLOBAL ENERGY ECONOMY AND, 10:14:32 THEREFORE, ALL POLICIES DISCUSSED MUST TAKE INTO 10:14:35 CONSIDERATION THAT WE ARE ONLY 4% OF THE WORLD'S POPULATION. 10:14:40 IF WE ENACT POLICIES THAT DRIVE DRILLING OUT OF U.S. WATERS 10:14:43 THESE COMPANIES WILL NOT CEASE TO DRILL. 10:14:45 BUT WE WILL CEASE TO BE ABLE TO ENSURE THAT OIL AND GAS 10:14:48 PRODUCTION IS DONE IN A SAFE AND IN AN ENVIRONMENTALLY FRIENDLY 10:14:52 MANNER. AS WE AWAIT THE OUTCOME OF THE 10:14:54 MANY INVESTIGATIONS TAKING PLACE, IT IS VITAL WE LEARN 10:14:58 LESSONS FROM THIS INCIDENT SO THAT WE CAN KEEP OUR WORKERS AND 10:15:01 ENVIRONMENT SAFE WHILE CONTINUING TO PRODUCE OUR 10:15:04 VALUABLE OIL AND GAS RESOURCES. THE MORATORIUM PUT IN PLACE BY 10:15:09 THIS ADMINISTRATION DOES NOT REFLECT THE PRESIDENT'S PREVIEW 10:15:13 AND THIS KNEE-JERK REACTION TO CREATE A MORATORIUM IS SIMPLY A 10:15:17 POLITICAL EXPRESSION EMBRYONIC IN NATURE WHICH HAS NO PLACE IN 10:15:21 A SITUATION THIS SERIOUS. THERE'S STILL MANY QUESTIONS TO 10:15:25 BE ANSWERED ABOUT WHAT HAPPENED ON DEEPWATER HORIZON. 10:15:28 HOWEVER, I THINK WE MUST ALSO QUESTION THE FEDERAL RESPONSE. 10:15:31 GOVERNMENT CANNOT FACILITATE A QUICK, EFFECTIVE RESPONSE AND 10:15:35 THIS EVENT HAS BEEN YET ANOTHER EXAMPLE OF THAT. 10:15:38 TO ECHO SOME OF MY COLLEAGUES, I THINK WE MUST TAKE A LONG, HARD 10:15:42 LOOK AT THE FEDERAL RESPONSE WHILE ALSO LOOKING AT THE 10:15:45 RESPONSE OF BP. THIS DISJOINTED EFFORT HAS NOT 10:15:50 AIDED IN HELPING TO CONTAIN AND END THE SPILL. 10:15:54 THANK YOU. THANK YOU FOR COMING TODAY AND I 10:15:57 LOOK FORWARD TO YOUR TESTIMONY. I YIELD BACK, MR. CHAIRMAN. 10:16:00 GREAT. THE GENTLEMAN'S TIME IS EXPIRED. 10:16:03 THE CHAIR RECOGNIZES THE GENTLEMAN FROM WASHINGTON STATE. 10:16:09 THANK YOU, MR. CHAIR. TODAY'S HEARING IS ENTICELED 10:16:13 DRILLING DOWN ON AMERICA'S DRILLING FUTURE AND SAFETY AND 10:16:16 SECURITY AND WE HAVE THE FIVE LEADERS OF THIS INDUSTRY AND I'M 10:16:20 INTERESTED IN WHAT THEY'RE SAYING IN THREE RESPECTS. 10:16:22 ONE I THINK WE NEED TO ASK IS THE INDUSTRY REALLY SHOWN 10:16:26 ACCOUNTABILITY TO MAKE SURE THAT THE LEADERS ARE ACCOUNTABLE FOR 10:16:30 SAFETY? SO I WILL BE INTERESTED IN 10:16:32 FINDING OUT HOW MANY PEOPLE AT BRITISH PETROLEUM HAVE LOST 10:16:35 THEIR JOBS TO DATE AS A RESULT OF THE MOST HORRIFIC T 10:16:39 ENVIRONMENTAL CATASTROPHE IN AMERICAN HISTORY. 10:16:41 I'LL BE INTERESTED IN THAT NUMBER. 10:16:42 NUMBER TWO, I WILL BE INTERESTED IN THE NUMBERS FROM THE LEADERS 10:16:44 OF THE INDUSTRY WHAT THEY ARE INVESTING IN AN EFFORT TO 10:16:49 DEVELOP TECHNOLOGIES THAT CAN REDUCE THE RISK OF OFFSHORE 10:16:52 DRILLING. THE NUMBERS WE HAVE SEEN IN OUR 10:16:54 QUESTIONS TO THE WITNESSES SO FAR ARE REALLY QUITE ASTOUNDING 10:16:59 IN HOW SMALL THEY ARE. THEY ALL ARE LESS THAN 0.1% OF 10:17:04 THEIR PROFITS HAVE BEEN INVESTED IN CLEANER TECHNOLOGY TO TRY 10:17:09 THOUGH REDUCE THE RISK OF THIS TYPE OF DISASTER. 10:17:12 THAT'S LESS THAN 0.01% OF THEIR GROSS REVENUES. 10:17:16 IT'S STUNNING TO ME IF THAT IS THE FACTS BUT WOULD LIKE TO ASK 10:17:19 THE LEADERS IF THAT'S THE CASE WHY THEY HAVE EXPOSED THIS 10:17:23 COUNTRY TO THIS TYPE OF RISK WITH SUCH REDUCED INVESTMENT. 10:17:26 AND, THIRD, IT IS APPROPRIATE TO ASK ABOUT THE INVESTMENT OF THE 10:17:29 INDUSTRY IN CLEAN ENERGY. IN THE REASON, IN ALL OF THE 10:17:34 LEADERS TODAY WILL ADMIT THIS, EVERY SINGLE OIL WELL WE HAVE 10:17:38 EVER DRILLED IS AN INVISIBLE OIL SPILL. 10:17:42 BECAUSE EVERY SINGLE WELL WE DRILL RESULTS IN PUTTING CARBON 10:17:46 DIOXIDE IN THE AIR WHICH GOES INTO THE ATMOSPHERE WHICH GOES 10:17:49 INTO SOLUTION IN THE OCEANS AND HAVE MADE THE OCEANS 30% MORE 10:17:52 ACIDIC THAN THEY ARE TODAY. THEY WILL BE SO ACIDIC BY THE 10:17:55 TIME MY GRANDCHILD LEAVES THE PLANET WE WON'T HAVE CORAL REEFS 10:18:00 ANYWHERE ON THE PLANET. EVERY SINGLE OIL WELL IS AN OIL 10:18:04 SPILL SO WE WILL BE INTERESTED IN KNOWING WHAT THESE LEADERS 10:18:06 ARE BRINGING TO THE TABLE IN AN EFFORT TO REDUCE OUR DEPENDENCE 10:18:09 ON FOSSIL FUELS IN AN EFFORT TO FIND CLEAN ENERGY AND PREVENT 10:18:13 THIS TYPE OF ENVIRONMENTAL DISASTER. 10:18:15 UNFORTUNATELY, IT WON'T BE THE NUMBERS WE'RE LOOKING FOR, BUT 10:18:17 HOPEFULLY WE'LL INSPIRE SOME CHANGES. 10:18:18 THANK YOU. GREAT, GENTLEMAN'S TIME HAS 10:18:22 EXPIRED. THE CHAIR RECOGNIZES THE 10:18:24 GENTLEMAN FROM KENTUCKY, MR. WHITFIELD. 10:18:27 MR. CHAIRMAN, I WILL WAIVE MY OPENING STATEMENT. 10:18:30 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. HALL. 10:18:35 MR. CHAIRMAN, I CAN LOOK BACK A LOT BETTER THAN I CAN LOOK 10:18:40 FORWARD AND WHEN I LOOK BACK, I LOOKED AT TWO ENTITIES THAT 10:18:43 OUGHT TO BE LOOKED TO THE -- THERE HAVE BEEN SUGGESTIONS THAT 10:18:46 THE FEDERAL GOVERNMENT OUGHT TO PAY A MORE PROMINENT ROLE IN 10:18:49 DISASTERS SUCH AS TAKING OVER THE PROCESS OF CAPPING THE WELL. 10:18:53 WELL, THERE'S TWO THINGS YOU'D LOOK AT THERE AND ONE IS THE 10:18:57 FINANCIAL STATEMENTS OF THE TWO ENTITIES, THE UNITED STATES OF 10:19:00 AMERICA OR BRITISH PETROLEUM AND I FIND BRITISH PETROLEUM IN A 10:19:03 LOT BETTER SHAPE THAN THE UNITED STATES OF AMERICA. 10:19:06 IT'S THEIRS -- I THINK IT INITIALLY WE SHOULD HAVE TURNED 10:19:10 IT OVER TO BRITISH -- TO CAP THEIR WELL AND AFTER THEY CAPPED 10:19:14 THEIR WELL WE'LL TELL THEM HOW MUCH THEY OWE EVERYBODY ELSE AND 10:19:18 I DON'T THINK THIS PRESIDENT KNOWS ANY MORE ABOUT CAPPING A 10:19:21 WELL OR GOING OUT AND COUNTING THOSE BIRDS OR PICKING UP LITTLE 10:19:26 PARTS OF THE WASTE THAN HE KNEW ABOUT THE OLYMPICS AND I RESENT 10:19:31 THE FACT HE'S TRYING TO BLAME SOME OF THIS ON BUSH WHEN BUSH 10:19:34 ON 9/11 I DON'T RECOLLECT HIM EVER ACCUSING CLINTON. 10:19:37 I YIELD BACK MY TIME. THE GENTLEMAN'S TIME HAS 10:19:40 EXPIRED. WE RECOGNIZE THE GENTLE LADY 10:19:45 FROM CALIFORNIA, MISS MATSUI. THANKS FOR CALLING TODAY'S 10:19:48 HEARING. I'D ALSO LIKE TO THANK THE 10:19:53 WITNESSES. THE FAMILIES OF THOSE WHO LOST 10:19:54 THEIR LIVES OR HAD THEIR LIVELIHOODS SEVERELY IMPACTED BY 10:19:58 THE DISASTER OF UNPRECEDENTED PROPORTIONS DESERVE OUR SUPPORT. 10:20:03 NOW AS WE CONTINUE TO SEEK ANSWERS FROM BP AND OTHERS ABOUT 10:20:05 THE CAUSE OF THE ACCIDENT, WE MUST HOLD THOSE RESPONSIBLE 10:20:10 ACCOUNTABLE. THE FIRST PRIORITY OF BP MUST BE 10:20:12 TO STOP THE LEAK FROM CONTINUING TO SPREAD AND TO ENSURE THE 10:20:16 CLEANUP EFFORTS ARE CARRIED OUT TO PROTECT OUR COASTAL 10:20:20 COMMUNITIES AND THE FAMILIES WHOSE LIVELIHOODS DEPEND ON IT 10:20:24 AND IT IS INCUMBENT ON ALL OF US TO MAKE CERTAIN THIS NEVER 10:20:28 HAPPENS AGAIN. THE UNFORTUNATE PART IS WE HAVE 10:20:33 BEEN HERE BEFORE. I REMEMBER MORE THAN 40 YEARS 10:20:37 AGO WHEN UNION OIL'S PLATFORM "A" EXPLODED OFF THE COAST OF MY 10:20:41 HOME STATE. MY CONCERN IS THAT TODAY COULD 10:20:44 BE LIKE 1969 ALL OVER AGAIN. AND THAT WE ARE SETTING 10:20:48 OURSELVES UP FOR ANOTHER FOUR DECADES OF MORE OF THE SAME. 10:20:52 SO THE QUESTION I HAVE TODAY IS, WHAT HAS CHANGED? 10:20:56 WHAT CAN THE OIL COMPANIES TELL US TODAY TO ASSURE US THAT THIS 10:21:00 STORY IS NOT SIMPLY REPEATING ITSELF? 10:21:03 BECAUSE WHAT THE GULF REGION AND THE AMERICAN PEOPLE DO NOT WANT 10:21:07 TO HEAR NOW ARE THE SAME EXCUSES THAT WERE EMPLOYED DECADES AGO 10:21:13 ABOUT OIL BEING OUR LARGEST AND MOST RELIABLE ENERGY OPTION. 10:21:17 IN FACT, THE BP OIL SPILL U 10:21:24 UNDERSCORES THE NEED TO LOOK FOR CLEANER ALTERNATIVES THAT WILL 10:21:26 SAVE OUR ENVIRONMENT FROM HARM. IF WE HAVE LEARNED ANYTHING FROM 10:21:30 THE DISASTER, IT IS THAT WE MUST CONTINUE TO EXPLORE CLEAN TECH 10:21:35 ALTERNATIVES TO BIG OIL. TODAY'S HEARING IS A STEP IN 10:21:38 THAT DIRECTION. THANK YOU, MR. CHAIRMAN. 10:21:40 AND I YIELD BACK THE BALANCE OF MY TIME. 10:21:42 GREAT. GENTLE LADY'S TIME HAS EXPIRED. 10:21:46 WE RECOGNIZE THE GENTLE LADY FROM CALIFORNIA, MISS BONO MACK. 10:21:50 THANK YOU, MR. CHAIRMAN. I THANK YOU FOR YIELDING ME THIS 10:21:52 TIME. I WELCOME THE OPPORTUNITY TO 10:21:54 HEAR FROM THE WITNESSES TODAY ABOUT OUR ENERGY SECURITY AND 10:21:57 THE ONGOING OIL SPILL, OPERATIONS IN THE GULF. 10:21:59 THE COMPANIES REPRESENTED BY THE WITNESSES AT THE TABLE ARE AT 10:22:02 THE FOREFRONT OF ENERGY RESOURCES DEVELOPMENT AND GROWTH 10:22:06 AND YOUR INSIGHTS WILL BE VERY IMPORTANT FOR HOW TO ENSURE A 10:22:08 SPILL OF THE CURRENT MAGNITUDE NEVER HAPPENS AGAIN. 10:22:12 AS WE JUST HEARD FROM MY OTHER COLLEAGUE IN CALIFORNIA MANY OF 10:22:15 US IN CALIFORNIA AND SOUTHERN CALIFORNIA CERTAINLY STILL 10:22:18 RECALL THE OIL SPILL IN SANTA BARBARA FROM 1969. 10:22:21 TO GET A SENSE OF THE MAGNITUDE OF WHAT WE'RE FACING 10:22:24 ADMINISTRATION SCIENTISTS AS OF YESTERDAY WERE ESTIMATING THAT 10:22:27 BP'S WELL COULD BE SPEWING AS MUCH AS FOUR TIMES THAT OIL 10:22:31 EVERY DAY AS WE SPILLED DURING THE ENTIRE SANTA BARBARA 10:22:34 DISASTER. AMERICAN LIVES HAVE ALREADY BEEN 10:22:36 TRAGICALLY LOST AND WE'VE YET TO FULLY UNDERSTAND THE 10:22:39 ENVIRONMENTAL AND ECONOMIC IMPACTS SO THERE IS SIGNIFICANT 10:22:41 WORK AHEAD. OUR PRIORITY FOR OUT AND FOR THE 10:22:44 DAYS AHEAD AS WE'VE ALL SAID MUST BE TO COMPLETELY STOP THE 10:22:48 LEAK. I HOPE OUR WITNESSES ARE WILLING 10:22:50 TO OFFER WHATEVER ASSISTANCE THEY CAN TO ENSURE THAT THAT IS 10:22:53 OUR FOCUS. I'M FAIRLY CERTAIN IT IS WHAT 10:22:55 THE AMERICAN PEOPLE WANT. AS WE SIT HERE TODAY NEARLY TWO 10:22:59 MONTHS HAVE PASSED SINCE THE ORIGINAL DEEPWATER HORIZON 10:23:02 EXPLOSION. WHAT HAVE WE SEEN IN THE 10:23:04 INTERIM? A NUMBER OF CHARGES AGAINST BP 10:23:06 THAT STILL DESERVE ANSWERS, NEW GOVERNMENT COMMITTEES SET UP 10:23:10 ACROSS AGENCIES THAT ARE SLOW IN CRUCIAL DECISIONMAKING AND MOST 10:23:14 IMPORTANTLY THE LIVELIHOODS OF SO MANY GULF RESIDENTS ARE BEING 10:23:18 SEVERELY THREATENED. I WILL BE INTERESTED TO LEARN 10:23:20 ABOUT THE TECHNOLOGIES THAT THESE COMPANIES HAVE INVESTED IN 10:23:23 TO HELP PROTECT AGAINST ANY FUTURE SPILL. 10:23:25 MR. CHAIRMAN, WE AS A FACE OUGHT TO BE DEVOTING ALL OF OUR 10:23:29 RESOURCES TO THIS DISASTER. AS THE ECHOES OF THE SANTA 10:23:32 BARBARA SPILL STILL HAUNT US DECADES LATER AND AS YEARS OF 10:23:36 FAILED ENERGY POLICIES DO AS WELL HOW THIS CRISIS IS MANAGED 10:23:39 OR MISMANAGED MATTERS. WE DO NOT KNOW THE LONG-TERM 10:23:42 CONSEQUENCES YET FROM THE SPILL BUT THE DEVASTATION TO THE 10:23:45 ENVIRONMENT AND THE ECONOMY WILL BE LONG-LASTING AND HAVE 10:23:47 NATIONAL IMPLICATIONS. I APPRECIATE OUR WITNESSES BEING 10:23:50 HERE TODAY AND I YIELD BACK MY TIME. 10:23:52 THANK YOU. WE THANK THE GENTLE LADY. 10:23:54 THE CHAIR RECOGNIZES THE GENTLEMAN FROM CALIFORNIA, 10:23:58 MR. McNERNEY. THANK YOU, MR. CHAIRMAN. 10:24:03 FOR TODAY'S HEARING, I WANT TO WELCOME THE PANELISTS HERE THIS 10:24:07 MORNING. THE EXPLOSION OF THE DEEPWATER 10:24:09 HORIZON AND RESULTING OIL GUSH IS A TRAGEDY WITH TERRIBLE HUMAN 10:24:15 CONSEQUENCES. OUR THOUGHTS AND PRAYERS ARE 10:24:16 WITH THE FAMILIES OF THE VICTIMS AND THE HARD-WORKING AMERICANS 10:24:22 WHO WHOSE WAYS OF LIVES ARE THREATENED. 10:24:24 AMERICANS ARE SHOCKED AND SADDENED BY WHAT OCCURRED BUT 10:24:27 THEY'RE OUTRAGED IS BECAUSE THERE IS NO REAL PLAN TO RESPOND 10:24:31 TO A CRISIS OF THIS MAGNITUDE. THE TECHNOLOGY THAT WAS SUPPOSED 10:24:35 TO FAIL-SAFE FAILED BADLY. HOW COULD COMPANIES LIKE BP HAVE 10:24:41 INVESTED SO MANY MILLIONS OF DOLLARS THIS TECHNOLOGY FOR DEEP 10:24:44 WATER DRILLING BUT FAILED TO DEVELOP EFFECTIVE TECHNOLOGIES 10:24:47 TO PREVENT THIS KIND OF GUSH? I WANT TO KNOW TODAY WHAT STEPS 10:24:52 THE INDUSTRY IS TAKING TO ENSURE THAT THE TECHNOLOGIES DESIGNED 10:24:56 TO BE FAILSAFE WORK AS PROMISED AND WHAT INVESTMENTS THE 10:25:00 INDUSTRY IS MAKING IN TECHNOLOGIES THAT WOULD ALLOW 10:25:03 FOR A FAR MORE EFFECTIVE RESPONSE TO THE DISASTER. 10:25:08 HOWEVER, THE REAL SOLUTION IS TO DELIBERATELY REDUCE OUR 10:25:13 CONSUMPTION OF PETROLEUM FUELS SO THE DEMAND FOR OIL IS 10:25:17 TECHNICALLY MANAGEABLE. I BELIEVE THAT THIS CAN BE DONE 10:25:20 IN A WAY THAT IMPROVES OUR NATIONAL ECONOMY AND I WANT TO 10:25:24 KNOW WHAT THE EXECUTIVES SITTING HERE IN FRONT OF ME TODAY ARE 10:25:28 GOING TO DO TO ACHIEVE THIS GOAL. 10:25:30 THANK YOU, MR. CHAIRMAN, AND I YIELD BACK. 10:25:32 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:25:35 GENTLEMAN FROM FLORIDA, MR. STEARNS. 10:25:38 GOOD MORNING AN THANK YOU, MR. CHAIRMAN AND THANK YOU FOR 10:25:40 HAVING THIS HEARING TOGETHER WITH THE RANKING MEMBER UPTON. 10:25:44 THE TITLE OF THE HEARING IS DRILLING DOWN ON AMERICA'S 10:25:47 ENERGY FUTURE SAFETY SECURITY AND CLEAN ENERGY. 10:25:50 I'M NOT SURE THE TITLE REALLY IS APPROPRIATE AS WELL AS LISTENING 10:25:56 TO SOME OF THESE OPENING STATEMENTS. 10:25:58 THE BOTTOM LINE IS ALL OF US ARE FRUSTRATED HERE AND CONGRESS, AS 10:26:02 WELL AS OBVIOUSLY THE GULF COAST RESIDENTS. 10:26:05 WE DON'T UNDERSTAND WHY BP DIDN'T ACT MORE QUICKLY. 10:26:10 I ASK CEO LAMAR McKAY THE QUESTION IS HOW MANY BARRELS ARE 10:26:14 MANY COULD GO OUT PER DAY. HE SAID 5,000 THEN I READ TO HIM 10:26:17 FROM HIS OWN REPORT THAT HE COULD HANDLE UP TO 300,000 10:26:21 BARRELS A DAY TEN MILES OFF THE SHORE SO THE QUESTION TO HIM IS 10:26:24 WHY CAN'T YOU HANDLE 5,000? WELL, OBVIOUSLY THE 5,000 WASN'T 10:26:28 CORRECT AT LEAST MANY OF US DON'T THINK IT WAS CORRECT. 10:26:31 WE NOW HAVE AN OIL SPILL THAT'S SEVEN TIMES THE "EXXON VALDEZ" 10:26:36 AND YET THERE'S NO END IN SIGHT AT THIS POINT. 10:26:39 SO REALLY THE PURPOSE OF THIS HEARING IS TO ASK THESE 10:26:42 EXECUTIVES, THESE ARE PEOPLE THAT ARE MAKING THE TOP SALARIES 10:26:46 IN THE WORLD TO GET TO THEIR SPOT THEY HAVE UNUSUAL ACUMEN, 10:26:53 FORESIGHT, ENERGY, BUSINESS AWARENESS AND OBVIOUSLY HAVE A 10:26:57 LOT OF CORPORATE POLITICAL SAVVY TO GET WHERE THEY ARE. 10:27:00 THEY WOULDN'T BE HERE TODAY, MR. CHAIRMAN. 10:27:02 SO THE QUESTION IS, CAN EACH ONE OF YOU IN YOUR HEART OF HEARTS 10:27:05 SAY TO US THAT AMERICA IS PROTECTED WITH ALL THE OIL RIGS 10:27:09 YOU HAVE OUT THERE? WE HAVE ALMOST 3,800 IN THE 10:27:12 GULF. CAN YOU TELL US TODAY THAT WE'LL 10:27:15 BE SAFE, THAT AMERICA WILL BE SAFE AND YOU HAVE BACKUP WORST 10:27:19 CASE SCENARIOS? MR. McKAY SAID HE DID BUT HE 10:27:23 DIDN'T. HE DIDN'T EVEN TELL US THE RIGHT 10:27:25 5,000 BARRELS A DAY. OBVIOUSLY IT WAS NOT THAT SO WE 10:27:27 FEED TO HEAR FROM YOU UNDER OATH THAT YOU CAN IN A WORST CASE 10:27:31 SCENARIO PROTECT AMERICA'S SHORES. 10:27:33 THANK YOU, MR. CHAIRMAN. ALL RIGHT. 10:27:35 THE GENTLEMAN'S TIME HAS EXPIRED. 10:27:37 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. GREEN. 10:27:43 THANK YOU, MR. CHAIRMAN FOR HOLDING THE HEARING AND I WANT 10:27:47 TO WELCOME OUR PANELISTS TODAY. STATES ALONG THE GULF COAST ARE 10:27:51 IN THE MIDST OF DEALING WITH THIS TRAGEDY AND MY THOUGHTS AND 10:27:54 PRAYERS GO OUT TO THE FAMILIES AND COMMUNITIES AFFECTED BY THIS 10:27:58 ACCIDENT. FOR THOSE OF US WHO REPRESENT 10:27:59 ENERGY PRODUCING AREAS IT'S LIKE A LOSS IN THE FAMILY AND I THINK 10:28:03 WE NEED TO REMEMBER THAT. WHILE WE ANXIOUSLY AWAIT A 10:28:07 POSITIVE OUTCOME ON EFFORTS TO CONTAIN IT WE ARE BEGINNING THE 10:28:10 PROCESS OF THOROUGHLY EVALUATING ANSWERS ON WHAT WENT WRONG AND 10:28:16 HOLD RESPONSIBLE PARTIES ACCOUNTABLE. 10:28:17 AS WE CONSIDER HOW TO APPROACH THE ISSUES LEGISLATIVE IT'S 10:28:21 CRITICAL WE ALLOW THE FACTS TO COME TO LIGHT AND ALLOW FOR 10:28:24 THOUGHTFUL DELIBERATION FOR MAKING PERMANENT 10:28:26 STATUTORY-SWEEPING CHANGES THAT WOULD END UP TAKING US FURTHER 10:28:29 FROM OUR GOALS OF SAFE, RESPONSIBLE DEVELOPMENT OF OUR 10:28:32 NATURAL RESOURCES. QUICKLY MOVING FORWARD WITH THE 10:28:35 LEGISLATIVE PROPOSALS WOULD HAVE A PROFOUND EFFECT AND POSSIBLY 10:28:38 NEGATIVE CONSEQUENCES FOR AMERICA'S PRODUCTION POTENTIAL 10:28:41 IS NOT THE PATH THAT CONGRESS SHOULD TAKE TO RUSH TO DO 10:28:44 ANYTHING JUST TO BE DOING SOMETHING. 10:28:47 WHILE UNDERSTANDING THERE'S PUBLIC LEARINESS THAT THE DEEP 10:28:51 WATER PRODUCTION I WANT TO NOTE THERE IS STILL A MAJORITY OF THE 10:28:54 AMERICAN PEOPLE WOULD SUPPORT OUTER CONTINENTAL SHELF 10:28:57 DRILLING. I ENCOURAGE ADMINISTRATION 10:28:59 QUICKLY TO DEVELOP AND IMPLEMENT NECESSARY CHANGES IN THE SAFETY 10:29:03 AND PROCEDURAL STANDARDS FOR DEEP WATER AND SHALLOW WATER 10:29:07 DRILLING BECAUSE OF THE LOSS OF JOBS AND DOMESTIC PRODUCTION WE 10:29:10 WILL SEE IF THIS FULL SIX-MONTH DEEP WATER DRILLING MORATORIUM 10:29:15 IS LAST THING -- IT CONTINUES. THAT'S THE LAST THING OUR 10:29:19 RECOVERING ECONOMY NEEDS OR OUR NATION'S ENERGY NEEDS. 10:29:23 I IT'S ALSO ESTIMATED 120,000 JOBS COULD BE LOST AS A RESULT 10:29:26 OF THIS MORATORIUM. FINALLY I LOOK FORWARD TO 10:29:29 HEARING WHAT OUR PANEL PLANS TO DO TO RESTORE AMERICA'S PUBLIC'S 10:29:34 TRUST IN THE OIL AND GAS INDUSTRY. 10:29:35 THERE IS A GREAT RECORD IN THE GULF OF MEXICO, IT'S BEEN SAID 10:29:39 THE LAST TIME I CAN REMEMBER WAS THE WELL IN THE GULF OF MEXICO 10:29:44 WAS ACTUALLY IN THE BAY OF CAMPECHE IN 1979 SO WE HAVE A 10:29:48 GOOD RECORD. WE NEED TO FIND OUT WHY IT 10:29:51 DIDN'T WORK AND ALMOST EVERYTHING WENT WRONG WITH 10:29:54 HORIZON AND WHY IT IS WORKING IN LOTS OF OTHER WELLS THAT ARE 10:29:58 BEING DRILLED. OUR COUNTRY NEEDS A STRONG 10:30:01 STEADY DOMESTIC SUPPLY OF OIL AND GAS AND NATURAL GAS AND AS 10:30:06 WE TRANSITION TO ALTERNATIVE ENERGY SUPPLIES WE MUST NOT 10:30:10 FORGET THAT WE LEGISLATE THE RESPONSE TO THE ACCIDENT AND 10:30:12 LOOK FORWARD TO THE TESTIMONY. MR. CHAIRMAN, I YIELD BACK PIE 10:30:15 TIME. WE THANK THE GENTLEMAN. 10:30:17 WE RECOGNIZE THE GENTLEMAN FROM MR. MISSOURI, MR. BLUNT. 10:30:20 THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HOLDING THIS 10:30:23 HEARING. I HAVE A PREPARED STATEMENT I'LL 10:30:25 PUT IN THE RECORD. LET ME SUMMARIZE THAT A LITTLE 10:30:27 BIT AND FIRST BY SAYING I'M GLAD TO HAVE THESE FIVE INDIVIDUALS 10:30:32 HERE WHO AS MR. BARTON SAID HAVE SO MUCH AT STAKE AND SO MUCH 10:30:36 POTENTIAL TO BE PART OF THIS SOLUTION. 10:30:38 I'M HOPEFUL WE CAN USE THIS HEARING TODAY TO UNDERSTAND 10:30:41 BETTER WHY OUR GOVERNMENT AND BRITISH PETROLEUM COULD HAVE 10:30:45 POSSIBLY BEEN SO POORLY PREPARED FOR THIS DISASTER. 10:30:49 CERTAINLY PEOPLE IN THE FISHING INDUSTRY, THE TOURISM INDUSTRY 10:30:52 WANT ANSWERS TO THIS PROBLEM AND THERE'S PLENTY OF BLAME TO GO 10:30:56 AROUND. I DON'T THINK THE ADMINISTRATION 10:30:59 OR THE GOVERNMENT AGENCY HEADS HAVE DONE EVERYTHING THEY SHOULD 10:31:02 HAVE DONE FROM BEING PREPARED TO PREVENTION TO THE RESPONSE. 10:31:08 INCREDIBLY SEVEN WEEKS AFTER THE DEEPWATER HORIZON EXPLOSION 10:31:11 WE'RE STILL LACKING RESOURCES AND CONTAINMENT, THE BOOMS, THE 10:31:16 SKIMMERS, THE THINGS THAT SHOULD HAVE BEEN READILY AVAILABLE ARE 10:31:19 STILL NOT APPARENTLY THERE IN THE WAYS WE NEED THEM TO GO. 10:31:24 WEEKS AGO I INTRODUCED AND WEEKS NOW INTRODUCED LEGISLATION THAT 10:31:27 WOULD REQUIRE READY ACCESS TO THE THINGS NECESSARY TO CONTAIN 10:31:32 A PROBLEM IF A PROBLEM DEVELOPED IN THE GULF. 10:31:35 WE'RE LEARNING MORE AND MORE EVERY DAY ABOUT THE FAILINGS OF 10:31:40 THE INDUSTRY AND GOVERNMENT AND THE REGULATORS LEADING UP TO THE 10:31:43 INCIDENT, HOWEVER, OUR MAIN FOCUS TODAY AND IN THE NEXT FEW 10:31:47 WEEKS NEEDS TO BE TO STOP -- DO WHAT WE CAN TO STOP THIS PROBLEM 10:31:51 AND THEN TO STUDY THE PROBLEM AND SEE IT DOESN'T OCCUR AGAIN. 10:31:56 I'M CONVINCED THAT WE CAN PROTECT BOTH OUR ENVIRONMENT AND 10:32:00 OUR ECONOIMENT AS WE CONTINUE IN OUR PURSUIT OF MORE 10:32:03 INDEPENDENCE FROM FOREIGN OIL, CONGRESS AND THE ADMINISTRATION 10:32:06 SHOULD WORK TO ENSURE THAT WE CAN PRODUCE DOMESTIC OIL AND GAS 10:32:10 IN AN ENVIRONMENTALLY SOUND MANNER. 10:32:12 I'M AFRAID THAT THE MORATORIUM THAT THE ADMINISTRATION 10:32:15 ANNOUNCED AGAINST THE WISHES OF SECRETARY SALAZAR'S OWN 10:32:19 TECHNICAL ADVISERS WILL COST THOUSANDS OF JOBS AND ULTIMATELY 10:32:24 HARM CONSUMERS. IT'S OBVIOUS WE NEED TO HEAR 10:32:26 FROM THE PANELISTS TODAY. I'M GRATEFUL THEY'RE HERE. 10:32:30 IT'S ALSO OBVIOUS MEMBERS OF THIS COMMITTEE WANT TO SPEAK AND 10:32:32 ARE SPEAKING AND ARE CONCERNED THAT THIS NOT HAPPEN AGAIN AND 10:32:36 WE BE BETTER PREPARED TO TAKE ADVANTAGE OF OUR RESOURCES, NOT 10:32:39 BECOME THE VICTIM OF OUR RESOURCES. 10:32:41 AND I YIELD BACK. WE THANK THE GENTLEMAN. 10:32:43 THE CHAIR RECOGNIZES THE GENTLE LADY FROM CALIFORNIA, MISS 10:32:50 KAPPES. I LOOK FORWARD TO THE 10:32:51 TESTIMONY OF OUR WITNESSES TODAY. 10:32:54 BP'S DEEPWATER HORIZON OIL SPILL IN THE GULF IS AN ENVIRONMENTAL 10:32:58 DISASTER THAT HAS ALREADY CREATED AND TILL THREATENS 10:33:02 PROFOUND HUMAN AND ECONOMIC HARM. 10:33:04 WE ALL MUST DO EVERYTHING POSSIBLE TO CLEAN UP THE DAMAGE 10:33:06 FROM THIS INCIDENT AND PREVENT FUTURE ONES LIKE IT. 10:33:10 THIS MORNING OUR SUBCOMMITTEE NEEDS TO HEAR FROM BP, HOW THE 10:33:13 SPILL OCCURRED AND HOW IT'S GOING TO MAKE THE PEOPLE OF THE 10:33:16 GULF WHOLE. AND MORE BROADLY WE NEED TO HEAR 10:33:19 FROM THE OIL COMPANIES IN GENERAL ABOUT HOW THEY'RE GOING 10:33:22 TO PREVENT SPILLS IN THE FUTURE. UNFORTUNATELY, WE CAN'T STOP 10:33:26 DRILLING OVERNIGHT. AND THESE COMPANIES HAVE THE 10:33:29 RESPONSIBILITY TO DO EVERYTHING IN THEIR POWER TO PREVENT FUTURE 10:33:34 TRAGEDIES. HAVING SEEN THE 1969 OIL SPILL 10:33:37 FIRSTHAND, I CAN TELL YOU THAT SPILL RESPONSE TECHNOLOGY HAS 10:33:42 HARDLY ADVANCED IN THE PAST 40 YEARS. 10:33:45 FINALLY WE NEED TO HEAR FROM EACH WITNESS AND THEIR COMPANIES 10:33:48 WHETHER OR NOT THEY ARE GOING TO PLAY A CONSTRUCTIVE ROLE IN TRAN 10:33:52 SIGNIFICANTING OUR ECONOMY AWAY FROM DRILLING AND ONTO CLEAN 10:33:55 ENERGY SOURCES. THE RECORD TO DATE IS NOT 10:33:59 IMPRESSIVE. THEY NEED TO TRANSITION AWAY 10:34:00 FROM FOSSIL FUELS FOR THE SAKE OF OUR NATIONAL SECURITY, OUR 10:34:04 ECONOMY AND THE ENVIRONMENT. THIS COULD NOT BE MORE APPARENT 10:34:08 THAN IT IS TODAY. PASSING COMPREHENSIVE ENERGY AND 10:34:12 CLIMATE LEGISLATION IS JUST WHAT AMERICA NEEDS TO DO TO HELP GROW 10:34:16 OUR ECONOMY AND TO CREATE JOBS. TAXPAYERS DON'T NEED STATUS QUO 10:34:21 ENERGY POLICIES THAT SEND BILLIONS OVERSEAS TO HOSTILE 10:34:23 GOVERNMENTS. WE FEED A SAFER, A CLEANER AND A 10:34:26 MORE ECONOMICAL APPROACH TO ENERGY DEVELOPMENT. 10:34:28 ONE THAT SHIFTS US AWAY FROM OIL EVENTUALLY AND TOWARD RENEWABLE 10:34:33 SOURCES THAT CAN'T DESTROY OUR COASTLINES. 10:34:36 EVERY DAY WE DELAY OUR ECONOMY GROWS WEAKER. 10:34:39 OUR ENEMIES GROW STRONGER. AND THE PLANET BECOMES MORE 10:34:43 POLLUTED. IT'S TIME FOR REAL SOLUTIONS 10:34:45 THAT PROTECT RATHER THAN ENDANGER OUR COASTAL 10:34:48 COMMUNITIES, OUR LIVELIHOODS, OUR WAY OF LIFE. 10:34:51 I HOPE WE CAN ENACT BIPARTISAN CLIMB AND ENERGY LEGISLATION 10:34:54 THIS YEAR, MR. CHAIRMAN. I PLEDGE TO WORK WITH YOU TO 10:34:58 ACHIEVE THIS VERY IMPORTANT GOAL AND I YIELD BACK. 10:35:00 GREAT. THE GENTLE LADY'S TIME EXPIRED. 10:35:04 THE CHAIR RECOGNIZES THE GENTLEMAN FROM PENNSYLVANIA, 10:35:09 MR. PITTS. THANK YOU FOR HOLING THIS 10:35:12 HEARING. THE BP OIL SPILL IS A TRAGIC 10:35:14 EVENT IN THE HISTORY OF OUR COUNTRY. 10:35:17 NOT ONLY HAVE LIVES BEEN LOST, BUT AN UNKNOWN AMOUNT OF OIL HAS 10:35:22 BEEN LEAKED INTO THE OCEAN CAUSING HORRIBLE EFFECTS. 10:35:25 SOME OF WHICH WE KNOW NOW, SOME OF WHICH WILL TAKE YEARS TO 10:35:30 DISCOVER. FIRST AND FOREMOST, THE LEAKAGE 10:35:32 OF OIL MUST BE STOPPED. I THINK WE ALL KNOW THIS, BUT IT 10:35:35 BEARS REPEATING AND I HOPE OUR WITNESSES WILL TELL US WHAT THEY 10:35:39 THINK MUST BE DONE TO STOP THE LEAK. 10:35:42 ONCE THIS IS DONE, IT IS IMPERATIVE THAT WE THOROUGHLY 10:35:45 UNDERSTAND WHAT HAPPENED ABOARD DEEPWATER HORIZON BEFORE, DURING 10:35:50 AND AFTER THE EXPLOSION. WE MUST KNOW WHAT CAUSED THIS 10:35:53 HORRIFIC EVENT SO THAT IT NEVER HAPPENS AGAIN. 10:35:56 IN THE WAKE OF THIS EVENT, QUESTIONS HAVE NOT ONLY ARISEN 10:36:00 REGARDING THE CAUSE OF THE EXPLOSION AND THE LEAK BUT ALSO 10:36:04 REGARDING THE APPROPRIATENESS OF RESPONSE FROM BP AND THE 10:36:09 ADMINISTRATION. I FIND IT UNFATHOMABLE THAT THE 10:36:12 PRESIDENT IS JUST NOW MEETING WITH TOP BP EXECUTIVES. 10:36:15 IN ADDITION, IT SEEMS TO ME THAT THE ENTIRE FEDERAL RESPONSE HAS 10:36:19 BEEN NOT ONLY DISJOINTED, BUT CONFUSING AND FRUSTRATING FOR 10:36:24 THOSE ON THE GROUND TRYING TO BRING RELIEF. 10:36:27 THE MORATORIUM ANNOUNCED LAST WEEK IS JUST ANOTHER EXAMPLE OF 10:36:30 POOR JUDGMENT WITHOUT REGARD TO THE ECONOMIC LIVELIHOOD OF THE 10:36:35 GULF COAST REGION AND MILLIONS OF AMERICANS WHO BUY GAS EVERY 10:36:37 DAY FOR THEIR VEHICLES. AS I'VE SAID, THIS IS A TRAGIC 10:36:42 EVENT. WE NEED TO MAKE SURE DUE 10:36:44 DILIGENCE IS DONE IN INVESTIGATING THE CAUSES AND THE 10:36:46 APPROPRIATENESS OF RESPONSE IN THE AFTERMATH. 10:36:49 HOWEVER, WE NEED TO MAKE SURE THE RESPONSE OF THIS BODY AND 10:36:53 THE ADMINISTRATION IS PRUDENT, ONE THAT STILL ENCOURAGES OUR 10:36:57 COUNTRY'S ENERGY SECURITY AND INDEPENDENCE. 10:36:59 I LOOK FORWARD TO HEARING FROM OUR WITNESSES TODAY AND I NIELD 10:37:02 BACK. GREAT. 10:37:03 >THE GENTLEMAN'S TIME HAS EXPIRED. 10:37:05 WE RECOGNIZE THE GENTLE LADY FROM CALIFORNIA, HIS HARMAN. 10:37:10 WELCOME TO OUR WITNESSES. I HAVE LONG ARGUED AND SO HAVE 10:37:14 OTHERS THAT WE MUST MOVE AWAY FROM DEPENDENCE ON FOREIGN OIL. 10:37:18 WE KNOW THE NATIONAL SECURITY PITFALLS OF THAT DEPENDENCE. 10:37:23 WE SEE THAT PLAYED OUT EVERY SINGLE DAY IN WHAT'S GOING ON IN 10:37:27 THE MIDDLE EAST, BUT WE ALSO NOW CLEARLY SEE THAT THERE ARE 10:37:30 ENVIRONMENTAL AND ECONOMIC PITFALLS WITH OUR ONGOING 10:37:34 DEPENDENCE ON DOMESTIC OIL. MANY OF THE CALIFORNIANS ON THIS 10:37:37 PANEL INCLUDING ME STAUNCHLY OPPOSE DRILLING OFFSHORE 10:37:42 CALIFORNIA AND I WANT TO APPLAUD OUR PRESIDENT FOR MAKING CLEAR 10:37:46 THAT THAT WILL NOT HAPPEN. BUT IT IS ALSO CLEAR AS OUR 10:37:51 WITNESSES KNOW THAT CALIFORNIA HAS AN ADDICTION TO ONE DRIVER 10:37:55 PER CAR AND THAT, THEREFORE ARE MANY REFINERIES LOCATED 10:38:01 THROUGHOUT THE STATE FOUR OR FIVE IN MY DISTRICT ALONE, EL 10:38:05 SEGUNDO, FOR EXAMPLE, IS NAMED FOR THE SECOND CHEVRON REFINERY 10:38:09 IN THE STATE AND SO ALL OF YOU SITTING HERE LOOKING AT US ARE 10:38:12 SAYING, WELL, HEY, IF YOU'RE NOT FIXING THIS PROBLEM, WHY ARE YOU 10:38:16 BLAMING IT ALL ON US? I JUST WANT TO POINT OUT THE 10:38:19 OBVIOUS THAT SOME OTHER MEMBERS HAVE ALSO ADDRESSED, WHICH IS 10:38:24 THAT ALL THE COMPANIES BEFORE US HAVE IN 2009 YEARLY PROFITS 10:38:29 AMOUNTING TO MORE THAN $64 BILLION. 10:38:34 YOU PAID $37 BILLION IN DIVIDENDS TO YOUR SHAREHOLDERS. 10:38:37 YOU INVESTED MORE THAN $9.5 BILLION IN EXPLORATION, BUT YOU 10:38:42 INVESTED FAR LESS IN RENEWABLE AND ALTERNATIVE ENERGY. 10:38:46 YOU ARE ENERGY COMPANIES AND SO MY URGING WOULD BE WHY NOT 10:38:51 INVEST IN ENERGY PRODUCTS AND ENERGY TECHNOLOGIES THAT ARE FAR 10:38:55 SAFER THAT WILL WEAN US FROM OUR DEPENDENCE ON OIL AND KEEP YOUR 10:39:00 PROFIT LEVEL UP FOR YOUR SHAREHOLDERS BUT THAT OBVIOUSLY 10:39:03 WILL MAKE AMERICA SAFER AND FINALLY LET ME MENTION OUR 10:39:06 CONSTITUENTS ARE VERY SMART. ONE OF THEM APPROACHED ME THE 10:39:09 OTHER DAY AND SAID, "WHY DON'T WE REQUIRE ENERGY COMPANIES THAT 10:39:13 ARE DRILLING ESPECIALLY DEEP WELLS TO DRILL A RELIEF WELL 10:39:17 ALONGSIDE THE ORIGINAL WELL. IF IT WAS DRILLED AT THE SAME 10:39:20 TIME IT WOULD BE THERE IF A CATASTROPHE HAPPENED." 10:39:23 THANK YOU, MR. CHAIRMAN. WE THANK THE GENTLE LADY. 10:39:26 THE CHAIR RECOGNIZES THE GENTLEMAN FROM LOUISIANA, 10:39:29 MR. SCALISE. THANK YOU, MR. CHAIRMAN. 10:39:32 I SPENT LAST FRIDAY ON GRAND ISLE ASSESSING THE DAMAGE AND 10:39:36 TALKING TO LOCAL LEADERS WHO SAY THEY ARE STILL SPENDING MORE 10:39:38 TIME FIGHTING THE FEDERAL GOVERNMENT AND BP THAN THEY ARE 10:39:41 FIGHTING THE OIL. THAT IS UNACCEPTABLE. 10:39:44 YET INDICATIVE OF A SERIOUS LACK OF LEADERSHIP AND COORDINATION 10:39:47 COMING FROM BP AND THE OBAMA ADMINISTRATION. 10:39:51 FIRST AND FOREPOSE OUR FOCUS, BP'S FOCUS AND THE PRESIDENT'S 10:39:54 FOCUS NEEDS TO BE ON PLUGGING THE WELL AND USING EVERY 10:39:57 RESOURCE AVAILABLE TO PROTECT OUR FRAGILE MARSH AND SEAFOOD 10:40:03 BEDS. BP IS THE RESPONSIBLE PARTY AND 10:40:05 NEEDS TO BE HELD ACCOUNTABLE AND I INTEND TO DO EVERYTHING IN NYE 10:40:08 POWER TO MAKE SURE THEY PAY FOR THE FULL COST OF THIS DISASTER. 10:40:10 BUT IN ORDER TO IMPROVE THE INADEQUATE FEDERAL RESPONSE, WE 10:40:13 NEED A CLEAR CHAIN OF COMMAND THAT HOLDS PEOPLE ACCOUNTABLE. 10:40:16 THE OIL POLLUTION ACT OF 1990 STATES THE PRESIDENT SHALL 10:40:20 ENSURE EFFECTIVE AND IMMEDIATE REMOVAL OF A DISCHARGE. 10:40:23 ON NUMEROUS OCCASIONS THE PRESIDENT HAS SAID THAT FROM DAY 10:40:25 ONE HE'S BEEN OTT GROUND AND IN CHARGE BUT IF THAT'S THE CASE, 10:40:28 WHERE WAS THE PRESIDENT WHEN STATE AND LOCAL OFFICIALS WAITED 10:40:31 NEARLY A MONTH FOR APPROVAL ON A PLAN TO CONSTRUCT SAND BERMS TO 10:40:34 PROTECT OUR VALUABLE MARSH AND PREVENT AT LEAST A DOZEN 10:40:38 PELICANS FROM DYING? AND WHY DO BOATS CONTINUE TO SIT 10:40:40 IDLE AT THE DOCKS WHEN FISHERMEN CONSTANTLY HAVING TO SEEK BP'S 10:40:44 APPROVAL TO GET BOOM OR CLEAN UP OUR BEACHES? 10:40:46 THE DELAY OF THE BERM PLAN IS A PRIME EXAMPLE OF THE INCOMPETENT 10:40:50 RESPONSE TO THIS DISASTER. WHILE THE ADMINISTRATION DRAGS 10:40:52 THEIR FEET IN WASHINGTON, MILLIONS OF BARRELS OF OIL 10:40:55 INVADE OUR WETLANDS KILLING SCORES OF WILDLIFE AND 10:40:57 DEVASTATING LOUISIANA'S FISHERIES. 10:40:59 QUICK ACTION AND LEADERSHIP COULD HAVE EFFECTIVELY LIMITED 10:41:01 THE SCOPE OF THIS DISASTER. INSTEAD, THE PRESIDENT RESPONDED 10:41:04 BY MAKING EXCUSES AND SHIFTING BLAME. 10:41:07 FRANKLY, I AND PEOPLE THROUGHOUT LOUISIANA HAVE HAD ENOUGH AND 10:41:10 ARE SICK AND TIRED OF THE EXCUSES WE CONTINUE TO BE GIVEN 10:41:13 BY THE PRESIDENT AND BP. INSTEAD OF LEADING LIKE THE 10:41:16 COMMANDER IN CHIEF, THE PRESIDENT CONTINUES TO AGO LIKE 10:41:18 A SPECTATOR IN THE STANDS. TO ADD INSULT TO INJURY, THE 10:41:21 PRESIDENT'S NOW IMPOSED A SIX-MONTH BAN ON DEEP WATER 10:41:25 DRILLING. MAKE NO MISTAKE IMPLEMENTING 10:41:27 THIS IS LIKE TAKING A JACK HAMMER TO THE BEDROCK OF THE 10:41:30 LOUISIANA ECONOMY. THIS DEVASTATING BAN WILL COST 10:41:32 MY STATE ALONE AT LEAST 40,000 JOBS AND WILL LEAVE OUR NATION 10:41:35 MORE DEPENDENT ON MIDDLE EASTERN OIL COUNTRIES THAT DON'T LIKE 10:41:39 US. WE MUST FIGURE OUT WHAT WENT 10:41:40 WRONG TO PREVENT THIS TYPE OF DISASTER FROM HAPPENING AGAIN IN 10:41:43 THE FUTURE BUT THE PRESIDENT IS NOW EXPLOITING OUR DISASTER AS A 10:41:46 POLITICAL OPPORTUNITY TO ADVANCE HIS RADICAL AGENDA THAT WILL 10:41:50 KILL MORE AMERICAN JOBS. WE NEED ANSWERS AND WE NEED 10:41:52 LEADERSHIP BY THE PRESIDENT, UNFORTUNATELY, WE HAVE NEITHER 10:41:55 AND LOUISIANA'S PEOPLE AND WILDLIFE ARE PAYING THE PRICE. 10:41:57 THANK YOU, MR. CHAIRMAN AND I YIELD BACK. 10:42:00 GREAT. THE GENTLEMAN'S TIME HAS 10:42:02 EXPIRED. THE CHAIR RECOGNIZES THE GENTLE 10:42:05 LADY FROM WISCONSIN, MISS BALDWIN. 10:42:07 THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HOLDING THIS 10:42:10 HEARING TODAY AND CALLING THIS PANEL OF WITNESSES BEFORE US. 10:42:14 THE CATASTROPHE IN THE GULF HAS SHED NEW LIGHT ON THE OPERATIONS 10:42:17 OF THE OIL INDUSTRY. THE SAFETY AND SECURITY MEASURES 10:42:21 THAT THEY HAVE IN PLACE, THE DISASTER PLANS THEY MAINTAIN AND 10:42:24 THEIR EFFORTS TO MOVE US AWAY FROM OUR DEPENDENCE UPON OIL AND 10:42:29 TOWARDS DEVELOPING AND PROMOTING THE USE OF RENEWABLE ENERGY 10:42:32 SOURCES. AS HAS BEEN NOTED, THE COMPANIES 10:42:35 REPRESENTED BEFORE US TODAY HAVE PRODUCED RECORD PROFITS IN 10:42:38 RECENT YEARS. LAST YEAR'S AGGREGATE PROFITS 10:42:41 FOR THE FIVE COMPANIES REPRESENTED HERE TODAY AMOUNT TO 10:42:46 $64 BILLION. UNFORTUNATELY, WHAT APPEARS TO 10:42:50 BE MISSING AMONGST THE DOLLAR SIGNS IS CORPORATE 10:42:54 RESPONSIBILITY. AN OBLIGATION TO OPERATE IN AN 10:42:57 E ENVIRONMENTALLY AND SOCIALLY 10:42:59 RESPONSIBLE MANNER TO PROVIDE SAFE WORKING ENVIRONMENTS, TO BE 10:43:02 GOOD NEIGHBORS AND TO REDUCE ENVIRONMENTAL IMPACTS. 10:43:06 GENERALLY COMPANIES CLAIM THAT STEWARDSHIP IS PART OF THEIR 10:43:10 PHILOSOPHY. I THINK EACH OF THE COMPANIES 10:43:13 REPRESENTED HERE TODAY HAVE MADE THAT REPRESENTATION. 10:43:16 YET, WHAT WE ARE BEGINNING TO FIND AS THIS COMMITTEE AND ITS 10:43:19 OTHER SUBCOMMITTEES INVESTIGATE THIS DISASTER IS THAT RATHER 10:43:23 THAN CORPORATE RESPONSIBILITY, WE MAY HAVE BEFORE US A CULTURE 10:43:26 OF CORPORATE IRRESPONSIBILITY. WE KNOW THAT THE RESULTS OF 10:43:31 LETTING COMPANIES OPERATE UNDER WEAK REGULATION, THEY BEGIN TO 10:43:36 BELIEVE THAT THEY ARE ABOVE THE LAW, THEY IGNORE WARNING SIGNS, 10:43:40 THEY SHORTCUT PROPER PROCEDURES. THEY FAIL TO PROPERLY PAN FOR A 10:43:44 DISASTER AND THEY PUT PROFITS ABOVE ALL ELSE. 10:43:47 YOU KNOW, A LOT OF WHAT I'M OBSERVING IN THIS SECTOR COULD 10:43:51 JUST AS WELL HAVE BEEN SAID ABOUT WHAT WE SAW ON WALL STREET 10:43:54 WITH THE FINANCIAL COLLAPSE IN THE LAST COUPLE OF YEARS. 10:43:58 MR. CHAIRMAN, GOVERNMENT AND INDUSTRY ALL HAVE A ROLE TO PLAY 10:44:02 IN PREVENTING FUTURE ENVIRONMENTAL AND ECONOMIC 10:44:06 DISASTERS AND AS LAWMAKERS, WE HAVE A RESPONSIBILITY TO OUR 10:44:10 CONSTITUENTS, OUR NATION, TO THOSE WHO HAVE LOST JOBS, 10:44:13 PENSIONS AND HEALTH CARE, THOSE WHO HAVE LOST THEIR LIVES TO PUT 10:44:16 AN END TO THIS RECKLESSNESS AND TO HOLD BAD ARCS ACCOUNTABLE. 10:44:19 I LOOK FORWARD TO HEARING FROM OUR WITNESSES ABOUT THE ROLES 10:44:23 THEY SEE THEIR COMPANIES AND THE GOVERNMENT PLAYING IN ENSURING 10:44:26 FUTURE DISASTERS ARE PREVENTED. I YIELD BACK THE BALANCE OF PIE 10:44:30 TIME. WE THANK THE GENTLE LADY. 10:44:32 THE CHAIR RECOGNIZES THE GENTLEMAN FROM ARKANSAS, 10:44:36 MR. ROSS. THANK YOU, MR. CHAIRMAN, FOR 10:44:44 HOLDING TODAY'S HEARING TO DISCUSS THE SAFETY AND SECURITY 10:44:48 OF CURRENT OFFSHORE DRILLING PRACTICES AND THE FUTURE OF 10:44:52 ENERGY PRODUCTION IN OUR NATION. IN THE WAKE OF THE WORST OIL 10:44:57 SPILL IN OUR NATION'S HISTORY, WE MUST NOW LEARN FROM THIS 10:45:01 DISASTER AND RE-EVALUATE OUR OPERATING METHODS AND EXAMINE 10:45:04 HOW OIL WILL BE A PART OF AMERICA'S FUTURE ENERGY POLICY. 10:45:09 AS OIL PRICES AND OIL COMPANY PROFITS HAVE INCREASED 10:45:13 DRAMATICALLY OVER THE LAST DECADE, SO HAS OUR NATION'S 10:45:17 DEPENDENCE ON FOREIGN OIL WITH THE U.S. IMPORTING APPROXIMATELY 10:45:22 52% OF THE OIL IT CONSUMED LAST YEAR. 10:45:25 WHILE I BELIEVE THAT OUR POLICIES MUST BE BROAD ENOUGH TO 10:45:28 CREATE ENERGY FROM A VARIETY OF DOMESTIC SOURCES INCLUDING 10:45:33 DOMESTIC OIL AND NATURAL GAS, I ALSO RECOGNIZE THE IMPORTANCE OF 10:45:36 THOUGHTFUL INVESTMENTS IN BIOFUELS, NUCLEAR, HYDRO POWER, 10:45:40 WIND, SOLAR AND CLEAN COAL TECHNOLOGY. 10:45:44 ON DAY 57 OF THIS DISASTER WITH NO END IN SIGHT, I AM HOPEFUL 10:45:49 THAT THE FIVE COMPANIES TESTIFYING TODAY CAN INFORM US 10:45:53 OF WHAT WENT WRONG, HOW THIS TRAGEDY COULD HAVE BEEN 10:45:57 PREVENTED AND HOW THE AMERICAN PEOPLE CAN HAVE ASSURANCE THAT 10:46:02 THIS WILL NEVER HAPPEN AGAIN. I BELIEVE THE ADMINISTRATION AND 10:46:07 OUR GOVERNMENT MUST DO MORE TO HOLD THESE COMPANIES ACCOUNTABLE 10:46:11 FOR THEIR DRILLING PRACTICES AND ENSURE THE MOST ADVANCED 10:46:15 TECHNOLOGIES AND SAFETY PROCEDURES ARE IN PLACE. 10:46:19 ONCE AGAIN, MR. CHAIRMAN, THANK YOU FOR HOLDING THIS HEARING AND 10:46:22 I LOOK FORWARD TO TODAY'S DISCUSSION. 10:46:24 GREAT. WE THANK THE GENTLEMAN. 10:46:26 THE CHAIR RECOGNIZES THE GENTLEMAN FROM VERMONT, 10:46:29 MR. WELSH. IT'S ABSOLUTELY OUTRAGEOUS 10:46:34 THAT WE ARE HERE TODAY. WHAT HAPPENED IN THE GULF WAS 10:46:38 SOMETHING THAT BP ASSURED US WOULD NEVER EVER HAPPEN, THAT IT 10:46:42 DID HAPPEN, IN FACT, WAS FORESEEABLE AND INEVITABLE AND 10:46:45 WHY WAS THAT? BECAUSE AT EVERY TURN, RECKLESS 10:46:49 DISREGARD OF SAFETY PROCEDURES, CORNER-CUTTING AND DECISIONS 10:46:52 THAT WERE MADE FOR MONEY, NOT SAFETY. 10:46:56 MR. CHAIRMAN, I WANT TO TAKE THIS OPPORTUNITY TO ADDRESS THE 10:46:59 CURRENT CRISIS. AS BP DEBATES WHETHER TO ISSUE A 10:47:02 SECOND QUARTER DIVIDEND ON THEIR ANNUAL $10 BILLION DIVIDEND, WE 10:47:07 HAVE PEOPLE IN THE GULF COAST WHO NEED COMPENSATION. 10:47:12 RESPONSIBLE COMPANIES PAY THEIR OBLIGATIONS THEN THEY PAY 10:47:16 DIVIDENDS. MANY IN CONGRESS HAVE JOINED ME 10:47:19 IN MY CALL ON BP TO DIRECT DIVIDEND FUNDS TO AN ESCROW 10:47:24 ACCOUNT TO BE AVAILABLE TO DEAL WITH THE HEARTACHE AND THE 10:47:27 DESTRUCTION OF LIVELIHOODS IN THE GULF COAST. 10:47:30 BP HAS AFFIRMED ITS INTENTION TO MAKE GOOD ON ITS OBLIGATIONS. 10:47:36 NOW WE ASK THAT BP TAKE FINANCIAL STEPS CONSISTENT WITH 10:47:40 ITS ASSURANCES. PRESIDENT OBAMA AND 54 MEMBERS 10:47:44 OF THE U.S. STAT HAVE CALLED ON THE ESTABLISHMENT OF AN 10:47:47 INDEPENDENTLY ADMINISTERED $20 BILLION ESCROW FUND. 10:47:51 THAT WOULD BE AVAILABLE TO COVER CLEANUP COSTS. 10:47:54 MR. McKAY, I FURTHER CALL ON BP TO DEPOSIT DIVIDEND FUNDS INTO 10:48:00 THIS ESCROW ACCOUNT SO THAT THE CITIZENS OF THE GULF AND THE 10:48:04 TAXPAYERS OF THIS COUNTRY CAN BE ASSURED THAT YOUR COMPANY WILL 10:48:07 MEET ITS OBL GATHS. I YIELD BACK THE BALANCE OF MY 10:48:09 TIME. WE THANK THE GENTLEMAN, THE 10:48:14 CHAIR RECOGNIZES THE GENTLEMAN FROM UTAH, MR. MATH THINKSON. 10:48:20 ALL RIGHT. THANK YOU, MR. CHAIRMAN. 10:48:23 FOR HOLDING THIS HEARING. I KNOW THE -- YOUR TESTIMONY 10:48:27 HIGHLIGHTS THE WAY IN WHICH YOUR COMPANY DOES BUSINESS AND HOW -- 10:48:32 ALSO WE'LL HEAR FROM BP HOW IT CONDUCTED ITSELF IN THE EVENTS 10:48:36 LEADING UP TO THE DEEPWATER HORIZON EXPLOSION. 10:48:39 YOU EACH WILL DISCUSS YOUR SAFETY RECORD AND LESSONS 10:48:42 LEARNED FROM PAST DISASTERS. I THINK IT'S FAIR TO SAY NONE OF 10:48:45 YOUR COMPANIES ARE IMMUNE FROM CRITICISM AND ACCIDENTS CAN 10:48:48 STRIKE ANY PLACE ANY TIME DESPITE THE SAFETY MEASURES YOU 10:48:51 WILL BE TOUTING TODAY. AS MENTIONED FRIDAY NIGHT THE 10:48:55 CHEVRON PIPELINE BEGAN LEAKING IN SALT LAKE CITY AND 10:48:58 BEFORE BEING SHUT OFF LEAKED SOMEWHERE AROUND 33,000 GALLONS 10:49:03 OFOIL IN NORTHERN SALT LAKE CITY WHICH LEADS INTO THE JORDAN 10:49:06 RIVER WHICH EMPTIES INTO THE GREAT SALT LAKE. 10:49:09 THE DATE SALT LAKE IS ONE OF THE MOST IMPORTANT ESTUARIES FOR 10:49:13 MIGRATING BIRDS IN THE WEST. FORTUNATELY CURRENT INFORMATION 10:49:15 INDICATES THAT OIL HAS NOT HIT THE GREAT SALT LAKE AND FURTHER 10:49:18 IT'S FORTUNATE THAT THE DRINKING WATER SUPPLY IS PROTECTED BY 10:49:21 MOST ACCOUNTS THE OIL HAS BEEN CON TAPED. 10:49:24 NOW, 33,000 GALLONS IS A PITTANCE WHEN COMPARED TO THE 10:49:31 IMPACT ON MY CITY'S ECONOMY WILL NOT BE ANYWHERE NEAR WHAT IT IS 10:49:34 FOR THE GULF COAST RESIDENTS. IT FURTHER HIGHLIGHTS THE 10:49:38 IMPORTANT OF FEDERAL GOVERNMENT OVERSIGHT OF OUR ENERGY 10:49:40 INFRASTRUCTURE. THIS PARTICULAR CHEVRON PIPELINE 10:49:44 WAS LAST INSPECTED IN 2008. WE NEED TO FIND OUT WHAT THE 10:49:47 RESULTS WERE OF THAT INSPECTION AND IF ANYTHING IN THAT 10:49:51 INSPECTION GAVE ANY INDICATION OF THE POTENTIAL OF THIS PROBLEM 10:49:53 THAT OCCURRED THIS PAST WEEKEND. RIGHT NOW THE PURPORTED CAUSE OF 10:49:58 THE SPILL IS A BRANCH FELL DURING A HEAVY WINDSTORM AND 10:50:01 CREATED AN ELECTRIC ARC WHICH DROVE A FENCE TO THE JUST INCHEM 10:50:07 THE PIPELINE. IT RAISES QUESTIONS, WHY WAS THE 10:50:10 FENCE POST WITHIN INCHES OF THE PIPELINE. 10:50:12 WHEN THE ELECTRICITY ARCED THROUGH THE FENCE POST, IT 10:50:15 BURNED A HOLE THROUGH THE PIPELINE. 10:50:17 THAT IS THE LATEST EXPLANATION FOR WHAT HAPPENED. 10:50:19 WE NEED ANSWERS TO THAT THE LAST THING WE NEED ANSWERS TO IS 10:50:22 APPARENTLY THE MONITORING EQUIPMENT ON THE PIPELINE FAILED 10:50:25 TO INDICATE THERE WAS A LEAK AND THE FIRST TIME CHEVRON WAS AWARE 10:50:29 OF THE LEAK IS WHETHER THE SALT LAKE CITY FIRE DEPARTMENT CALLED 10:50:31 THEM THE NEXT DAY. SO NUMBER ONE, WHAT WAS THE 10:50:33 RESULT OF THE INSPECTION OF 2008. 10:50:35 MUST BE TWO, WHY WAS A FENCE POST DRILLED WITH INCHES OF 10:50:38 PIPELINE. NUMBER THREE, WHY DID THE 10:50:41 MONITORING EQUIPMENT FAIL IN TERMS OF WHY THE LEAK HAPPENED? 10:50:43 I'M PLANNING OP WORKING WITH THE DEPARTMENT OF TRANSPORTATION, 10:50:47 THE EPA, LOOKING AT THESE ISSUES TO FIND OUT WHY THIS HAND LASTLY 10:50:51 HOW WE DEFINE WHAT CLEAN IS IN TERMS OF THE CLEANUP. 10:50:54 I WILL ACKNOWLEDGE CHEVRON HAS TAKEN RESPONSIBILITY AND WILL 10:50:58 PAY FOR THE CLEANUP IN SALT LAKE. 10:50:59 I APPRECIATE THAT AGGRESSIVE POSITION THEY'VE TAKEN TO REACH 10:51:02 OUT TO THE RESIDENTS OF SALT LAKE CITY. 10:51:05 MR. CHAIRMAN, I'M GLAD YOU BEAR WITH ME, I THOUGHT THIS INCIDENT 10:51:08 OF THE PAST WEEKEND WAS WORTH MENTIONING IN THIS HEARING TO 10:51:12 SHOW THAT ISSUES CAN TOUCH ANYWHERE ALONG THE SUPPLY CHAIN. 10:51:14 IT'S IMPORTANT THAT WE NEED THAT IN MIND, I YIELD BACK. 10:51:19 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:51:26 GENTLEMAN FROM NORTH CAROLINA, MR. BUTTERFIELD. 10:51:28 THANK YOU VERY MUCH, MR. CHAIRMAN. 10:51:30 WE'RE ALL SAYING THE SAME THING, HOW IS HAVE DONE MORE TO PREVENT 10:51:33 THIS UNTHINKABLE DISASTER. EVEN THOUGH SOME SAY SUGGEST 10:51:38 THAT MY HOME STATE OF NORTH CAROLINA IS NOT IN HARM'S WAY, 10:51:42 THE FACT IS WE MAY BE. WE ARE NOT ONLY ANGRY ABOUT THIS 10:51:46 BILL BUT WE ARE SCARED TO DEATH THAT OUR COASTAL AREA WILL BE 10:51:50 AFFECTED. OVER THE PAST 30 YEAR, THE OIL 10:51:52 INDUSTRY HAS USED SOME OF THE WORLD'S MOST ADVANCED 10:51:56 TECHNOLOGIES TO DRILL IN DEEPER WATERS. 10:52:00 THE BROAD INGENUITY THAT ALLOWED THEM TO DRILL MILES UNDER THE 10:52:04 OCEAN'S FLOOR HAS OUTPACED COMMITMENT TO SAFETY AND THAT IS 10:52:08 UNACCEPTABLE. BP IGNORED A VERY SIMPLE RULE. 10:52:10 IF YOU CAN'T PLUG THE HOLE DON'T DRILL THE WELL. 10:52:14 WHAT CONCERNS ME, MR. CHAIRMAN SRNGS WHETHER BP'S MISTAKES ARE 10:52:18 UNIQUE TO THEM OR ARE INDICATIVE OF INDUSTRY-WIDE PRACTICES. 10:52:23 REGARDLESS, WE MUST NOW ENSURE THAT ADEQUATE SAFETY PRACTICES 10:52:26 AND CLEANUP PLANS ARE FIRMLY IN PLACE. 10:52:29 IT WAS ASSUMED THAT THE THIS TYPE OF DISASTER WOULD NEVER 10:52:33 HAPPEN BUT IT DID. I HOPE THIS TRAGIC EVENT 10:52:35 ILLUSTRATES THE NEED FOR ACTION. MANY OF US ON THIS SIDE OF THE 10:52:39 AISLE HAVE ADVOCATED A FUNDAMENTAL OVERHAUL TO OUR 10:52:43 ENERGY STRESSING A BROAD PORTFOLIO OF ENERGY SOURCES AND 10:52:47 ENERGY FISH SICHLT THIS OVERHAUL CAN BE MARKET DRIF FN WE APPLY A 10:52:51 REAL COST TO CARBON AND ITS EFFECTS ON OUR ECONOMY, OUR 10:52:55 QUALITY OF LIFE AND OUR ENVIRONMENT. 10:52:58 THIS DISASTER DEMONSTRATES THAT WE CANNOT DELAY ENACTING 10:53:02 COMPREHENSIVE ENERGY AND CLIMATE CHANGE LEGISLATION TO DIMINISH 10:53:05 OUR DEPENDENCE ON OIL BOTH FOREIGN AND DOMESTIC. 10:53:10 TODAY'S HEARING WILL PROVIDE UNAM BIGGOUS ANSWERS, I HOPE, ON 10:53:15 WHAT TO EXPECT IN THE DAYS, WEEKS AND YEARS TO COME. 10:53:18 FOR MILLIONS OF PEOPLE WHO FACE THIS NIGHTMARE, WE MUST DEMAND 10:53:24 TRANSPARENCY AND A CLEAR ASSESSMENT OF THE FUTURE. 10:53:27 I THANK THE WITNESSES FOR BEING WITH US TODAY AND LET ME JOIN MY 10:53:32 GOOD MR. MR. WELCH IN REQUESTING BP TO CONSENT TO AN ESCROW FUND 10:53:37 TO PROVIDE A MODEST REMEDY FOR THOSE WHO HAVE BEEN HARMED. 10:53:42 I SAY TO THE WITNESSES TODAY, PUT IT ON THE TABLE. 10:53:44 WE MUST KNOW IT OFF. THANK YOU, I YIELD BACK. 10:53:46 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:53:51 GENTLEMAN FROM TEXAS, MR. GONZALES. 10:53:54 THANK YOU VERY MUCH, MR. CHAIRMAN. 10:53:56 I'LL BE VERY BRECHLT I USUALLY DON'T MAKE OPENING STATEMENTS 10:53:58 BUT I THINK I CAN READ THE MINDS OF THE WITNESSES, THEY'RE SAYING 10:54:03 ALL THESE WITNESS ARE STATING THE OBVIOUS IN THE POLITICAL AND 10:54:06 YOU'RE ABSOLUTELY RIGHT AND WHEN WE GET INTO THE QUESTIONING, IT 10:54:10 WILL BE A WHOLE DIFFERENT WORLD. AS FAR AS THE POLITICAL, TO BE 10:54:12 HONEST WITH YOU, ALL THOSE WHO ARE CLAIMING THE PRESIDENT FOR 10:54:16 NOT PETING WITH THE BP CEO IMMEDIATELY. 10:54:20 HAD THE PRESIDENT DONE THAT, TODAY'S STATEMENT WOULD BE WHAT 10:54:26 WAS THE PRESIDENT WITHOUT FIRST VISITING THE AREAS AND MEETING 10:54:29 WITH THE COAST GUARD AND FIRST SPOERNSD. 10:54:31 THAT'S WHAT WOULD HAVE HAPPENED. WHAT I'M HOPING WE'RE GOING TO 10:54:35 ACHIEVE TODAY IS TO HEAR FROM THESE WITNESS, WHAT ARE THE 10:54:38 ENERGY NEEDS OF AMERICA? HOW ARE TRANSPORTATION FUELS 10:54:41 OBVIOUSLY BASED ON OIL? AND WHAT WE'RE GOING DO TO 10:54:45 MOVING FORWARD. THE DIFFERENCE BETWEEN DEEP AND 10:54:48 SHALLOW WATER EXPLORATION AND DRILLING AND HOW WE MEET THE 10:54:51 NEED NEEDS OF OUR PUBLIC, OUR CONSTITUENTS, STENSON OF THIS 10:54:56 COUNTRY AND THE FACTS THAT MEETING THOSE NEEDS IN THE 10:54:59 INTERIM AS WE TRANSITION TO SOMETHING DIFFERENT CAN BE DONE 10:55:04 A IN A POSSIBLE FASHION. WE CAN MEET THE NEED RESPONSIBLY 10:55:06 AND THEY'RE NOT FUTURELY EXCLUSIVE. 10:55:09 THANK YOU VERY MUCH, I YIELD BACK. 10:55:11 WE THANK THE GENTLEMAN FROM TEXAS AND THAT COMPLETES THE 10:55:16 PERIOD FOR OPENING STATEMENTS FROM ALL OF THE MEMBERS OF THE 10:55:24 SUBCOMMITTEE. THE CHAIR DOES NOT SEE ANY OTHER 10:55:28 MEMBERS. I WILL FIRST MAKES -- BEFORE WE 10:55:31 GO TO THE WITNESSES, I WILL FIRST MAKE A UNANIMOUS CONSENT 10:55:36 THAT CHAIRMAN STUPAK AND REPRESENTATIVES BLACKBURN, 10:55:42 CASTOR, WIENER AND JACKSON LEE
HOUSE ENERGY & COMMERCE SUBCOMMITTE W/ OIL COMPANIES P1
House Energy and Commerce Subcommittee holdsa a hearing with Rex Tillerson, Chairman and CEO of ExxonMobil; John Watson, Chairman and CEO of Chevron; James Mulva, Chairman and CEO of ConocoPhillips; Marvin Odum, President of Shell; and Lamar McKay of BP 09:33:02 MARKEY: 57 DAYS AGO IN THE DEAD OF 09:35:30 NIGHT, THE WORST ENVIRONMENTAL NIGHTMARE IN U.S. HISTORY BEGAN. 09:35:35 ON A SCREEN HERE, AND IN HOMES ACROSS THE COUNTRY, WE NOW SEE 09:35:42 THE LIVE VIDEO OF TENS OF THOUSANDS OF BARRELS OF OIL 09:35:48 BILLOWING INTO THE GULF OF MEXICO EVERY DAY. 09:35:52 FOR YEARS THE OIL INDUSTRY SWORE THIS COULD NEVER HAPPEN. 09:35:56 WE WERE TOLD THE TECHNOLOGY HAD ADVANCED, THAT OFFSHORE DRILLING 09:36:01 WAS SAFE. BP SAID THEY DIDN'T THINK THE 09:36:05 RIG WOULD SINK. IT DID. 09:36:07 THEY SAID THEY COULD HANDLE AN EXXON VALDEZ SPILL EVERY DAY. 09:36:14 THEY COULDN'T. BP SAID THE SPILL WAS 1,000 09:36:18 BARRELS PER DAY. IT WASN'T. 09:36:20 AND THEY KNEW IT. NOW THE OTHER COMPANIES HERE 09:36:24 TODAY WILL CONTINUE THE END THAT THIS WAS AN ISOLATED INCIDENT. 09:36:28 THEY WILL SAY A SIMILAR DISASTER COULD NEVER HAPPEN TO THEM. 09:36:34 AND, YET, IT IS THIS KIND OF BLIND FAITH, WHICH IS IRONICALLY 09:36:40 THE NAME OF AN ACTUAL RIG IN THE GULF THAT HAS LED TO THIS KIND 09:36:45 OF DISASTER. IN PREPARATION FOR THIS HEARING, 09:36:48 THE COMMITTEE REVIEWED THE OIL SPILL SAFETY RESPONSE PLANS FOR 09:36:53 ALL OF THE COMPANIES HERE TODAY. WHAT WE FOUND WAS THAT THESE 09:36:59 FIVE COMPANIES HAVE RESPONSE PLANS THAT ARE VIRTUALLY 09:37:04 IDENTICAL. THE PLANS CITE IDENTICAL 09:37:06 RESPONSE CAPABILITIES AND TOUT INEFFECTIVE EQUIPMENT. 09:37:14 IN SOME CASES THEY USE THE EXACT SAME WORD. 09:37:17 WE FOUND ALL OF THESE COMPANIES NOT JUST BP MADE THE EXACT SAME 09:37:24 ASSURANCES. THE COVERS OF THE FIVE RESPONSE 09:37:27 PLANS ARE DIFFERENT COLORS, BUT THE CONTENT IS 90% IDENTICAL. 09:37:34 LIKE BP, THREE OTHER COMPANIES INCLUDE REFERENCES TO PROTECTING 09:37:46 WALRUSSE WHICH HAVE NOT CALLED THE GULF OF MEXICO FOR 3 MILLION 09:37:50 YEARS. TWO OTHERS ARE SUCH DEAD RINGERS 09:37:54 FOR BP THAT THEY LIST THE SAME PHONE NUMBER FOR A LONG DEAD 09:37:58 EXPERT. THE AMERICAN PEOPLE DESERVE OIL 09:38:01 SAFETY PLANS THAT ARE IRON CLAD AND NOT BOILERPLATE. 09:38:05 WE NOW KNOW THE OIL INDUSTRY AND THE GOVERNMENT AGENCY TASKED 09:38:09 REGULATING WITH THEM DETERMINE THAT THERE WAS A ZERO CHANCE 09:38:13 THAT THIS KIND OF UNDER SEA DISASTER COULD EVER HAPPEN. 09:38:17 WHEN YOU BELIEVE THAT THERE IS ZERO CHANCE OF A DISASTER 09:38:22 HAPPENING, YOU DO ZERO DISASTER PLANNING. 09:38:26 AND THE OIL INDUSTRY HAS INVESTED NEARLY ZERO TIME AND 09:38:30 MONEY INTO DEVELOPING SAFETY AND RESPONSE EFFORTS. 09:38:35 THE OIL COMPANIES BEFORE US TODAY AMASSED NEARLY $289 09:38:42 BILLION IN PROFITS OVER THE LAST THREE YEARS. 09:38:48 THEY SPENT $39 BILLION TO EXPLORE FOR NEW OIL AND GAS. 09:38:53 YET, THE AVERAGE INVESTMENT IN RESEARCH AND DEVELOPMENT FOR 09:38:58 SAFETY ACCIDENT PREVENTION AND SPILL RESPONSE WAS A PALTRY $20 09:39:05 MILLION PER YEAR, LESS THAN ONE TENTH OF 1% OF THEIR PROFITS. 09:39:10 THE OIL COMPANIES MAY THINK IT'S FINE TO PRODUCE CARBON COPIES OF 09:39:14 THEIR SAFETY PLANS, BUT THE AMERICAN PEOPLE EXPECT AND 09:39:18 DESERVE MORE. IT IS TIME TO EXPECT MORE FROM 09:39:22 THE OIL INDUSTRY AND THAT NEEDS TO START TODAY. 09:39:28 FIRST, CONGRESS MUST ENSURE THAT THERE IS UNLIMITED LIABILITY FOR 09:39:32 OIL SPILLS BY OIL COMPANIES. WHILE WE TRY TO CAP THIS WELL, 09:39:37 WE MUST LIFT THE CAP ON OIL INDUSTRY LIABILITY. 09:39:43 SECOND, CONGRESS MUST ALSO ENACT WIDE RANGING OF SAFETY REFORMS 09:39:47 FOR OFFSHORE DRILLING. IF OIL COMPANIES ARE GOING TO 09:39:51 PURSUE ULTRADEEP DRILLING, WE MUST ENSURE THAT IT IS 09:39:57 ULTRASAFE, AND THAT COMPANIES CAN RESPOND ULTRAFAST. 09:40:02 THIRD, THE FREE RIDE IS OVER. OIL COMPANIES NEED TO PAY THEIR 09:40:08 FAIR SHARE TO DRILL ON PUBLIC LAND. 09:40:10 RIGHT NOW EVERY SINGLE ONE OF THE COMPANIES HERE TODAY AND 09:40:14 DOZENS OF OTHERS ARE DRILLING FOR FREE IN THE GULF OF MEXICO 09:40:18 ON LEASES THAT WILL COST AMERICAN TAXPAYERS MORE THAN $50 09:40:25 BILLION IN LOST ROYALTIES. AND FOURTH, WE MUST ENSURE THAT 09:40:29 NEW TECHNOLOGIES ARE DEVELOPED FOR CAPPING WELLS, BOOSTING 09:40:34 SAFETY AND CLEANING UP SPILLS. I WILL SOON INTRODUCE THE OIL 09:40:39 SOS ACT TO ASSURE WE HAVE 21st CENTURY TECHNOLOGIES IN PLACE 09:40:44 FOR 21st CENTURY DRILLING RISKS. AND FINALLY, AMERICA MUST MOVE 09:40:48 TO A SAFER, CLEAN ENERGY FUTURE SO THAT WE DON'T HAVE TO RELY AS 09:40:54 MUCH ON OIL TO POWER OUR CARS AND OUR ECONOMY. 09:40:59 THE AMERICAN PEOPLE DESERVE ANSWERS FROM THE OIL INDUSTRY 09:41:02 AND I LOOK FORWARD TO THE TESTIMONY OF OUR WITNESSES. 09:41:06 ILL LIKE NOW TO RECOGNIZE MY DISTINGUISHED COLLEAGUE FROM 09:41:10 MICHIGAN, THE RANKING MEMBER OF THE SUBCOMMITTEE, THE GENTLEMAN, 09:41:15 AGAIN FROM MICHIGAN. THANK YOU, MR. CHAIRMAN. 09:41:18 I THANK YOU FOR CALLING THIS VERY IMPORTANT HEARING. 09:41:22 WHAT HAPPENED ON THE DEEP WATER HORIZON RIG WAS TRULY A NATIONAL 09:41:28 TRAGEDY. THE LOSS OF LIFE WAS 09:41:30 HEARTBREAKING, THE ENVIRONMENTAL AND ECONOMIC DAMAGE THAT WORSENS 09:41:33 BY THE DAY IS GUT WRENCHING. AS I'VE SAID MANY TIMES BEFORE 09:41:38 IT NEED BE MADE CRYSTAL CLEAR TO ALL INVOLVED THAT THE POLLUTER 09:41:43 WILL PAY. THE AMERICAN TAXPAYER SHOULD NOT 09:41:45 AND WILL NOT BE ON THE HOOK FOR THE COST OF THIS ACCIDENT. 09:41:50 BOTH ECONOMIC AND ENVIRONMENTAL. NOR SHOULD CONSUMERS BE PUNISHED 09:41:54 WITH TAX INCREASES PASSED IN THE NAME OF THE BP SPILL. 09:42:02 IT WILL ONLY FURTHER WEAKEN OUR ECONOMY. 09:42:05 WE NOW HAVE THE OPPORTUNITY TO LOOK BP AMERICA IN THE EYE AND 09:42:10 DEMAND THEY FULFILL THEIR RESPONSIBILITY FOR THE DISASTER 09:42:12 IN THE GULF AND AN IMPORTANT STEP IS THE CREATION OF AN 09:42:16 ESCROW ACCOUNT THAT WILL ENSURE AMERICAN TAXPAYERS ARE NOT LEFT 09:42:20 HOLDING THE TAB. IN THE WAKE OF THIS TRAGEDY, WE 09:42:23 MUST WORK TOGETHER TO FIND SOLUTIONS THAT WILL PROTECT 09:42:28 CONSUMERS, TAXPAYERS AND OUR NATIONAL SECURITY. 09:42:31 THE CLEAN UP HAS BEEN TOO SLOW, WAY TOO SLOW AND TOO INDECISIVE. 09:42:37 WE WANT ANSWERS AND WE WANT THEM ALL. 09:42:39 WE HAVE TO WORK TO ASSURE A DISASTER LIKE THIS NEVER HAPPENS 09:42:44 AGAIN. WHEN THAT RIG EXPLODED AND AS 09:42:50 MILLIONS OF GALLON OF OIL LEAKED INTO THE GULF OUR SECURITY 09:42:54 POSTURE HAS WEAKENED. I'M AWARE EACH WITNESS TODAY WAS 09:43:00 GIVEN A LENGTHY LIST OF QUESTIONS TO ANSWER IN ADVANCE. 09:43:03 THEY RELATE TO FRONTAL BOUNDARY AT HAND. 09:43:05 QUESTIONS ABOUT RIG SAFETY, ABOUT WORSE CASE SCENARIOS IF 09:43:09 THERE'S ANOTHER RIG EXPLOSION AND QUESTIONS ABOUT CHEMICAL 09:43:14 DISPERSANTS. LEGITIMATE AND CONSTRUCTIVE 09:43:16 QUESTIONS THAT WILL HELP US FORGE A SOLUTION ORIENTED 09:43:19 POLICY. I AM, HOWEVER, DISHEARTENED TO 09:43:22 LEARN A FEW OF THE QUESTIONS HAVE NOTHING TO DO WITH THE 09:43:27 DISASTER THAT WE'RE TRYING TO SOLVE AND SERVE THE POLITICAL 09:43:32 POINTS THAT WILL RAISE TAXES, ELIMINATE AMERICAN JOBS AND 09:43:35 LEAVE CONSUMERS ALREADY STRUGGLING IN THIS DOWN ECONOMY 09:43:39 WITH HIGH ENERGY COSTS. SOME OF THOSE QUESTIONS ARE HOW 09:43:43 MUCH IS YOUR COMPANY INVESTED IN THE DEPLOYMENT OF RENEWABLE 09:43:49 ALTERNATIVE ENERGY? WHAT STEPS DO YOU BELIEVE THAT 09:43:50 THE U.S. GOVERNMENT AND PRIVATE INDUSTRY SHOULD TAKE TO REDUCE 09:43:55 THE THREAT BY CLIMATE CHANGE. DOES YOUR COMPANY SUPPORT A CAP 09:44:00 ON GREENHOUSE EMISSIONS THAT INCLUDE TRANSPORTATION FUELS. 09:44:03 WOULD YOUR COMPANY BE ABLE TO PASS ANY OF THE COSTS OF 09:44:08 PURCHASING EMISSION ALLOWANCES THROUGH ITS CUSTOMERS. 09:44:11 FRANKLY, I WOULD PREFER TO BRING UP THE CAP AND TRADE BILL ON THE 09:44:15 HOUSE FLOOR BECAUSE I'M CONVINCED THIS YEAR IT WOULD 09:44:18 FAIL RATHER THAN PASS BY THE SEVEN VOTE MARGIN THAT IT DID 09:44:22 LAST SUMMER. BUT THAT'S NOT THE ISSUE AT 09:44:24 HAND. INSTEAD OF TAKING TIME TO TALK 09:44:26 ABOUT CAP AND TAX OR CAP AND TRADE, LET'S FIGURE OUT HOW TO 09:44:31 CAP THE WELL. WE'RE NOT HERE TO DISCUSS 09:44:35 CLIMATE CHANGE BUT RATHER WHAT EACH OF OUR WITNESSES THINK WENT 09:44:39 WRONG ON THE HORIZON RIG AND WHAT POLICY CHANGE COULD BE MADE 09:44:43 TO ENSURE IT NEVER HAPPENS AGAIN. 09:44:46 LEAPT US NOT FORGET WHAT'S ON THE LINE HERE. 09:44:48 JOBS, THE ENVIRONMENT, OUR ECONOMY AND NATIONAL SECURITY. 09:44:53 THREE YEARS AGO WHEN BP WAS CAUGHT INCREASING THE DISCHARGE 09:44:57 INTO LAKE MICHIGAN, I JOINED WITH THE GREAT LAKES CAUCUS AND 09:45:01 OTHER COLLEAGUES ON BOTH SIDES OF THE AISLE, ACROSS THE GREAT 09:45:04 LAKES TO BEAT BACK THE ATTEMPT TO INCREASE POLLUTION IN OUR 09:45:09 LAKE. WE DIDN'T TAKE A PARTISAN 09:45:12 POSTURE, WE WORKED TOGETHER TO SOLVE THE PROBLEM. 09:45:15 WE NEED SIMILAR BIPARTISANSHIP HERE TODAY. 09:45:17 THE GULF OF MEXICO ACCOUNTS FOR ALMOST A THIRD OF U.S. OIL 09:45:21 PRODUCTION. IF WE ELIMINATE THAT SUPPLY AND 09:45:24 OUR DEPENDENCY -- IF WE ELIMINATE THAT SUPPLY, 09:45:28 DEPENDENCY IN FOREIGN OIL WILL, INDEED GO UP. 09:45:32 SAUDI ARABIA WILL BE HAPPY. HUGO CHAVEZ, MAHMOUD 09:45:36 AHMADINEJAD, THEY WILL BE POPPING CHAMPAGNE. 09:45:38 BUT THE AMERICAN CONSUMER WILL BE REMEMBERING THE GOOD OLD DAYS 09:45:41 WHEN GAS WAS ONLY $4 A GALLON. THE TEAM OF ENGINEERS TAPPED BY 09:45:47 SECRETARY SALAZAR TO FIND OUT WHAT WENT WRONG ON THE RIG 09:45:53 RECENTLY I WROTE, WE BELIEVE THE BLOW-OUT WAS BY A COMPLEX CHAIN 09:45:57 OF HUMAN ERRORS COUPLED WITH SEVERAL EQUIPMENT FAILURES AND 09:46:01 WAS PREVENTABLE. THE PETROLEUM INDUSTRY WILL 09:46:04 LEARN FROM THIS. IT CAN AND WILL DO BETTER. 09:46:07 WE SHOULD NOT BE SATISFIED -- WAIT FOR A SECOND. 09:46:16 WE SHOULD NOT BE SATISFIED UNTIL THERE ARE NO DEATHS AND NO 09:46:21 ENVIRONMENTAL IMPACTS OFFSHORE EVER. 09:46:24 HOWEVER, WE MUST UNDERSTAND THAT AS WITH ANY HUMAN ENDEAVOR THERE 09:46:28 WILL ALWAYS BE RISKS, END QUOTE. LET'S LEARN FROM THIS AWFUL 09:46:33 MISTAKE. FIX THE PROBLEM. 09:46:34 CLEAN UP THE GULF. AND MOVE FORWARD TO FIXING OUR 09:46:38 AILING ECONOMY AND CREATE PRIVATE-SECTOR JOBS. 09:46:40 YIELD BACK MY TIME. THANK THE GENTLEMAN. 09:46:43 CHAIR RECOGNIZES THE CHAIRMAN OF THE FULL COMMITTEE, THE 09:46:47 GENTLEMAN FROM CALIFORNIA, MR. WAXMAN. 09:46:50 CHAIRMAN MARKEY, THANK YOU FOR HOLDING THIS HEARING AND 09:46:54 YOUR WORK ON THISH. YOU HAVE BEEN A TRUE CHAMPION 09:46:58 FOR TRANSPARENTSCY AND ACCOUNTABILITY AND YOUR EFFORTS 09:47:02 HAVE KEPT THE CONGRESS AND ADMINISTRATION AND AMERICAN 09:47:04 PEOPLE INFORMED ABOUT ENVIRONMENTAL DISASTER UNFOLDING 09:47:07 IN THE GULF. YESTERDAY, CHAIRMAN STUPAK AND I 09:47:11 RELEASED A LETTER DESCRIBING A SERIES OF QUESTIONABLE DECISIONS 09:47:15 MADE BY BP IN THE DAYS BEFORE THE BLOW-OUT. 09:47:18 TIME AFTER TIME, BP APPEARS TO HAVE TAKEN SHORT CUTS THAT 09:47:23 INCREASE THE RISKS OF CATASTROPHIC BLOW-OUT. 09:47:27 ONE OF THE ESSENTIAL QUESTIONS FOR TODAY'S HEARING IS WHETHER 09:47:31 THE OTHER OIL COMPANIES ARE ANY BETTER PREPARED THAN BP. 09:47:36 LAST WEEK AFTER RECEIVING A REQUEST FROM REPRESENTATIVE 09:47:41 WEHNER, THE COMMITTEE ASKED EACH OF THE FIVE MAJOR OIL COMPANIES 09:47:45 FOR THEIR OIL SPILL RESPONSE PLANS. 09:47:48 ON PAPER THEY ARE VERY IMPRESSIVE. 09:47:52 EACH DOCUMENT HAS MORE THAN 500 PAGES LONG AND IF I MIGHT I'LL 09:47:56 HOLD UP THE DOCUMENT THAT IS THE CONTINGENCY PLAN. 09:48:02 BUT WHAT THEY SHOW IS THAT EXXONMOBIL, CHEVRON, 09:48:07 CONOCOPHILLIPS, SHELL ARE NO BETTER PREPARED TO DEAL WITH THE 09:48:11 MAJOR OIL SPILL THAN BP. THE SAME COMPANY, THE RESPONSE 09:48:17 GROUP, WROTE THE FIVE PLANS AND DESCRIBED THEM AS COOKIE CUTTER 09:48:22 PLANS. MUCH OF THE TEXT IS IDENTICAL. 09:48:24 FOUR OF THE PLANS DISCUSS HOW TO PROTECT WALRUSES BUT THERE ARE 09:48:29 NO WALRUSES IN THE GULF OF MEXICO. 09:48:33 WE ANALYZED TWO KEY PARTS OF THE PLANS. 09:48:35 THE PROVISIONS FOR STOPPING A SUB SEA BLOW-OUT LIKE THE ONE 09:48:41 THAT IS SPEWING OIL ACROSS THE GULF AND THEIR WORST CASE 09:48:45 SCENARIOS. WE FOUND NONE OF THE FIVE OIL 09:48:48 COMPANIES HAS AN ADEQUATE RESPONSE PLAN. 09:48:51 IT'S INSTRUCTIVE TO COMPARE EXXONMOBIL'S PLAN FOR 09:48:55 CONTROLLING THE SUB SEA BLOW-OUT WITH BP'S PLAN. 09:48:59 HERE'S WHAT BP SAYS IN ITS PLAN. IN THE EVENT THE SPILL SOURCE 09:49:04 CANNOT BE CONTROLLED, BY THE FACILITY OPERATOR OR REMOTELY 09:49:09 WITH A SAFETY SYSTEM, BP WILL ACTIVATE THE OIL SPILL RESPONSE 09:49:16 PLAN AND ASSEMBLE A TEAM OF EXPERTS TO RESPOND TO THE 09:49:20 SITUATION. HERE'S WHAT EXXONMOBIL SAYS. 09:49:22 YOU CAN SEE THE TEXT ON THE SCREEN. 09:49:25 IN THE EVENT THE SPILL SOURCE CANNOT BE CONTROLLED BY THE 09:49:30 FACILITY OPERATOR OR RELOTLY WITH A SAFETY SYSTEM, EXXONMOBIL 09:49:34 WILL ACTIVATE THE OIL SPILL RESPONSE AND ASSEMBLE A TEAM OF 09:49:40 TECHNICAL EXPERTS TO RESPOND TO THE SITUATION. 09:49:43 THE PLANS ARE IDENTICAL. AND SO ARE THE PLANS FOR CHEVRON 09:49:48 AND CONOCOPHILLIPS. SHELL DID NOT GIVE US A WELL 09:49:51 CONTROLLED CONTINGENCY PLAN BUT IT SAYS SHELL WOULD USE THE SAME 09:49:56 STRATEGIES OF TOP KILLS AND JUMP SHOTS THAT HAVE ALREADY FAILED. 09:50:02 EACH OF THE FIVE OIL SPILL RESPONSE PLANS ALSO INCLUDE A T 09:50:06 CASE SCENARIO INVOLVING AN OFFSHORE EXPLORATORY WELL. 09:50:12 ON PAPER THESE PLANS LOOK REASSURING. 09:50:15 BP'S PLAN SAYS IT CAN HANDLE A SPILL OF 250,000 BARRELS PER 09:50:21 DAY. BOTH CHEVRON AND SHELL SAY THEY 09:50:23 CAN HANDLE OVER 200,000 BARRELS PER DAY AND EXXON SAYS IT CAN 09:50:28 HANDLE OVER 150,000 BARRELS PER DAY. 09:50:31 THAT IS FAR MORE OIL THAN IS CURRENTLY LEAKING INTO THE GULF 09:50:36 FROM BP'S WELL. BUT WHEN YOU LOOK AT THE 09:50:39 DETAILS, IT BECOMES EVIDENT THESE PLANS ARE JUST PAPER 09:50:45 EXERCISES. BP FAILED MISERABLY WHEN 09:50:48 CONFRONTED WITH A REAL LEAK AND ONE CAN ONLY WONDER WHETHER 09:50:52 EXXONMOBIL AND THE OTHER COMPANIES WOULD DO ANY BETTER. 09:50:56 BP'S PLAN SAYS IT CONTRACTED WITH THE MARINE SPILL RESPONSE 09:51:01 CORPORATION TO PROVIDE EQUIPMENT FOR A SPILL RESPONSE. 09:51:04 ALL THE OTHER COMPANIES RELY ON THE SAME CONTRACTOR. 09:51:09 BP'S PLAN SAYS ANOTHER CONTRACTOR WILL OKAYIZE ITS OIL 09:51:14 SPILL REMOVAL. CHEVRON, SHELL, EXXONMOBIL USE 09:51:19 THE SAME CONTRACTOR. BP'S PLAN RELIES ON 22,000 09:51:25 GALLONS OF DISPERSANT STORED IN KILN, MISSISSIPPI, WELL, SO DO 09:51:30 EXXONMOBIL AND THE OTHER COMPANIES. 09:51:32 I COULD GO ON BUT I THINK YOU CAN GET MY POINT. 09:51:35 THESE ARE COOKIE CUTTER PLANS. EXXONMOBIL, CHEVRON, 09:51:40 CONOCOPHILLIPS AND SHELL ARE AS UNPREPARED AS BP WAS AND THAT'S 09:51:45 A SERIOUS PROBLEM. IN THEIR TESTIMONY AND RESPONSES 09:51:49 TO QUESTIONS, THE COMPANIES SAY THEY ARE DIFFERENT THAN BP. 09:51:53 BUT WHEN YOU EXAMINE THEIR ACTUAL OIL SPILL RESPONSE PLANS 09:51:57 AND COMPARE THEM TO BP, IT'S HARD TO SHARE THEIR CONFIDENCE. 09:52:02 AT THIS HEARING, CONGRESS NEEDS TO PASS -- CONGRESS NEEDS TO 09:52:08 REVIEW THE EVIDENCE AND PASS NEW LAWS THAT PUT TEETH INTO OUR 09:52:11 REGULATORY SYSTEM BUT WE CANNOT STOP THERE. 09:52:14 OUR NATIONAL ENERGY POLICY IS BROKEN. 09:52:17 WE'RE ADDICTED TO OIL, AND THIS ADDICTION IS FOULING OUR 09:52:21 BEACHES, POLLUTING OUR ATMOSPHERE AND UNDERMINING OUR 09:52:24 NATIONAL SECURITY. THANK YOU, MR. CHAIRMAN. 09:52:28 WE THANK THE CHAIRMAN. THE CHAIR RECOGNIZES THE RANKING 09:52:31 MEMBER OF THE FULL COMMITTEE, THE GENTLEMAN FROM TEXAS, 09:52:33 MR. BARTON. THANK YOU, CHAIRMAN MARKEY, 09:52:37 AND I APPRECIATE YOU AND CHAIRMAN WAXMAN HOLDING THIS 09:52:41 HEARING TO BRING OUR MAJOR OIL COMPANY EXECUTIVES BEFORE US AND 09:52:45 IN DOING SO, BEFORE THE AMERICAN PEOPLE. 09:52:47 I HAVE A PREPARED STATEMENT I'LL GIVE TO THE RECORD. 09:52:53 I'VE LISTENED WITH INTEREST TO THE OPENING STATEMENT OF 09:52:58 CHAIRMAN MARKEY AND CHAIRMAN WAXMAN. 09:53:00 I WANT TO SAY IN TERMS OF DOING THE INVESTIGATION, I COMMEND THE 09:53:04 MAJORITY STAFF, ESPECIALLY ON THE OVERSIGHT AND INVESTIGATION 09:53:07 SUBCOMMITTEE THAT MR. STUPAK HOLDS. 09:53:11 WE ARE GETTING THE FACTS ASSEMBLED AND PUTTING THEM OUT 09:53:14 IN AN OPEN AND TRANSPARENT FASHION SO THE AMERICAN PEOPLE 09:53:17 CAN UNDERSTAND TO THE EXTENT IT'S POSSIBLE TO UNDERSTAND 09:53:19 EXACTLY WHAT HAPPENED. IT'S NO QUESTION THAT THE 09:53:25 BRITISH PETROLEUM OIL COMPANY, WHO'S THE OWNER IN CHIEF 09:53:30 OPERATOR OF THE RIG THAT HAD THE ACCIDENT IS RESPONSIBLE FOR THE 09:53:36 ACCIDENT. IT'S ALSO AS MR. WAXMAN HAS 09:53:41 POINTED OUT THE RESPONSIBILITY OF OUR MAJOR OIL COMPANIES TO 09:53:43 HAVE ADEQUATE CONTINGENCY PLANS WHEN THINGS GO WRONG. 09:53:48 SO I'M NOT TRYING TO WHITEWASH THE PRIVATE SECTOR IN TERMS OF 09:53:53 THEIR RESPONSIBILITY FOR CAUSING THIS PROBLEM, BUT I WANT TO 09:53:56 POINT OUT SOMETHING THAT HASN'T YET BEEN POINTED OUT. 09:53:59 THE FIVE PEOPLE MOST CONCERNED ABOUT SOLVING THE PROBLEM ARE 09:54:03 PROBABLY SITTING BEFORE US TODAY. 09:54:06 EXXONMOBIL, CHEVRON, CONOCOPHILLIPS, SHELL OIL AND BP 09:54:11 AMERICA HAVE HUGE INTERESTS IN GETTING IT RIGHT AND PREVENTING 09:54:15 IT FROM EVER BEING WRONG AGAIN. IF YOU ADD THE MARKET CAPS OF 09:54:21 THOSE FIVE COMPANY, THEY WOULD NOT EQUAL THE MARKET CAP OF SOME 09:54:26 OF THE OIL COMPANIES THAT ARE OWNED BY SOVEREIGN NATIONS SUCH 09:54:31 AS SAUDI ARABIA, VENEZUELA, REPUBLIC OF MEXICO, SO I WOULD 09:54:37 STIPULATE, MR. CHAIRMAN, THAT WHILE OUR MAJOR OIL COMPANIES 09:54:42 HAVE CAUSED THIS -- AT LEAST BRITISH PETROLEUM IS THE CAUSE 09:54:46 OF THIS PARTICULAR PROBLEM, I WILL ALSO STIPULATE THAT THE 09:54:50 GENTLEMAN BEFORE US ARE A BIG PART OF THE SOLUTION. 09:54:53 WITH THE PRESIDENT OF THE UNITED STATES HAS GOT A BETTER IDEA OF 09:54:56 HOW TO SOLVE THIS PROBLEM RIGHT NOW, HE CAN PICK UP THE PHONE 09:54:59 AND TELL BP EXACTLY WHAT TO DO. IT IS A FEDERAL ISSUE IN TERMS 09:55:05 OF THE MITIGATION PLAN, IN TERMS OF THE CLEANUP PLAN AND IF 09:55:08 THERE'S ANYBODY FROM PRESIDENT OBAMA ON DOWN WHO REALLY KNOWS 09:55:13 THE SOLUTION, IT CAN STOP THAT OIL FROM SPILLING RIGHT NOW, BY 09:55:19 GOLLY, ALL THEY HAVE TO DO IS PICK UP THE PHONE AND TELL THEM 09:55:22 WHAT TO DO. THE FACT THEY'RE NOT IS SIMPLY 09:55:24 BECAUSE THE LAWS OF NATURE AND THE LAWS OF PHYSICAL SICK DON'T 09:55:27 RESPOND TO 30-SECOND SOUND BITES. 09:55:30 YOU'VE GOT TO KNOW EXACTLY WHAT TO DO, AND YOU'VE GOT TO HAVE 09:55:34 THE INC. NEARING AND TECHNOLOGY AVAILABLE TO DO IT. 09:55:36 AMERICA NEEDS THE ENERGY THAT'S BENEATH THE GULF OF MEXICO AND 09:55:39 IN THE OUTER CONTINENTAL SHELF. 30% OF OUR OIL AND GAS IS COMING 09:55:45 FROM THE OCS RIGHT NOW AND 80% OF THAT IS COMING FROM WHAT ARE 09:55:50 CALLED DEEP RIGS. WE HAVE A DEPLETION RATE OF 09:55:53 EXISTING PRODUCTION IN THIS COUNTRY, MR. CHAIRMAN, OF 30% TO 09:55:57 40%. THAT MEANS OF THE 8 MILLION 09:56:01 BARRELS OF OIL AND GAS WE'RE PRODUCING PER DAY, NEXT YEAR 09:56:04 WE'RE ONLY GOING TO BE ABLE TO PROVIDE 5.5 OR 6 MANAGER. 09:56:08 YOU HAVE TO REPLACE THAT ENERGY, AND SINCE WE HAVE DRILLED 09:56:11 MILLIONS OF WELLS ON SHORE SINCE 1896 OR SINCE 1870s IN 09:56:19 PENNSYLVANIA, THE FACT OF THE MATTER IS IF YOU'RE GOING TO 09:56:21 FIND SIGNIFICANT OIL RESERVES IN THE CONTINENTAL UNITED STATES, 09:56:25 THEY'RE GOING TO BE IN THE OUTER CONTINENTAL SHELF, SO WE NEED 09:56:29 THAT ENERGY. NOW, I AGREE WITH CHAIRMAN 09:56:31 WAXMAN THAT HAVING A 500-PAGE DOCUMENT THAT'S A COOKIE CUTTER 09:56:35 APPROACH TO WHAT TO DO WHEN YOU HAVE A PROBLEM IS NOT AN ANSWER. 09:56:40 IT'S NOT AN ANSWER. YOU CAN'T HAVE A CONTINGENCY 09:56:43 PLAN THAT SAYS CROSS YOUR FINGERS AND HOPE THE BLOW-OUT 09:56:47 PREVENTER WORK AND THAT WAS THE CONTINGENCY PLAN. 09:56:50 WE HAVEN'T HAD A MAJOR ACCIDENT IN THE OCS IN 50 YEARS. 09:56:54 EVERYBODY HAD DECIDED THAT THESE BLOW-OUT PREVENTERS WERE SO GOOD 09:57:02 ALL YOU HAD TO DO IS PUSH THE MAGIC BUTTON AND IT WOULD WORK. 09:57:07 WELL, THEY PUSHED THE MAGIC BUTTON ON THE BP RIG, AND IT 09:57:10 DIDN'T WORK SO CHAIRMAN WAXMAN IS RIGHT, WE NEED MORE THAN A 09:57:15 COOKIE CUTTER CONTINGENCY PLAN. BUT WHERE I DISAGREE OR I THINK 09:57:18 I DISAGREE WITH CHAIRMAN WAXMAN AND CHAIRMAN MARKEY IS THAT THE 09:57:23 GENTLEMEN BEFORE US HAVE THE WHEREWITHAL AND THE EXPERTISE 09:57:27 AND CERTAINLY HAVE THE INCENTIVE TO PUT THAT PLAN TOGETHER. 09:57:30 NOW, I DON'T KNOW WHAT THE ANSWERS ARE. 09:57:33 MAYBE WE NEED A FULL-TIME SAFETY INSPECTOR ON THESE RIGS. 09:57:36 MAYBE WE NEED A REALTIME DATA CENTER SOMEWHERE THAT ALL THE 09:57:42 DRILLING INFORMATION GOES TO A CENTRAL DATA POINT WHERE THERE'S 09:57:45 SOMEBODY IN CHARGE OF SAFETY THAT LOOKS AT IT. 09:57:48 IT DOES APPEAR THAT IF PEOPLE HAD BEEN LOOKING FOR THE PROBLEM 09:57:52 THAT WE NOW KNOW HAPPENED, THE DATA WAS THERE TO TELL THEM WHAT 09:57:55 TO DO. BUT THEY WEREN'T LOOKING FOR 09:57:58 THAT. THIS RIG WAS 40 DAYS BEHIND 09:58:01 SCHEDULE AND MILLIONS OF DOLLARS OVER SCHEDULE AND THERE WAS A 09:58:04 LOT OF PRESSURE TO FINISH THE JOB AND THERE WAS NOBODY ON THAT 09:58:09 RIG WHOSE JOB WAS TO MAKE SURE THAT THEY MADE THE SAFE 09:58:14 DECISION, AND SO WHEN YOU START MAKING DECISION AFTER DECISION 09:58:19 AFTER DECISION THAT IS NOT IN AND OF ITSELF A BAD DECISION BUT 09:58:25 CUMULATIVELY MINIMIZE SAFETY EVENTUALLY YOU REACH A WITT CAL 09:58:30 MASS AND YOU HAVE AN ACCIDENT THAT HAPPENED. 09:58:34 SO OUR JOB, MR. CHAIRMAN, IS THE WATCHDOGS FOR THE AMERICAN 09:58:38 PEOPLE ARE, ONE, GET THE FACTS ON THE TABLE, TWO, LISTEN TO 09:58:42 PEOPLE WHO HAVE POSSIBLE SOLUTIONS, THREE, IF THERE'S A 09:58:46 FEDERAL ISSUE AND A FEDERAL ROLE, LET'S DO IT. 09:58:50 BUT WHEN YOU TAKE A PATIENT TO THE EMERGENCY ROOM, THE SOLUTION 09:58:53 IS NOT NORMALLY TO KILL THE PATIENT. 09:58:57 THE SOLUTION IS TO STABILIZE THE PATIENT, DETERMINE WHAT NEEDS TO 09:59:01 BE DONE TO SAVE THE PATIENT AND THEN IMPLEMENT 10:00:00 10:00:00 BUT, UNFORTUNATELY, THEY APPEAR TO HAVE PLENTY OF COMPANY. 10:00:04 EXXON AND OTHER OIL COMPANIES ARE JUST AS UNPREPARED TO 10:00:06 RESPOND TO A MAJOR OIL SPILL IN THE GULF AS BP. 10:00:11 I'VE BEEN EXAMINING THE OIL SPILL RESPONSE PLAN OF 10:00:15 EXXONMOBIL, THE LARGEST OIL COMPANY IN THE UNITED STATES. 10:00:18 THIS DOCUMENT AS MR. WAXMAN SHOWED US IS OVER 500 PAGES 10:00:22 LONG. IN MANY RESPECTS IT IS VIRTUALLY 10:00:25 INDISTINGUISHABLE FROM BP'S RESPONSE PLAN AND RESPONSE PLANS 10:00:27 OF THE OTHER MAJOR OIL COMPANIES. 10:00:30 AT THIS TIME, MR. CHAIRMAN, I'D ASK UNANIMOUS CONSENT THAT THE 10:00:33 RESPONSE PLANS OF THE MAJOR OIL COMPANIES BE MADE PART OF THE 10:00:36 RECORD. WITHOUT OBJECTION, SO 10:00:38 ORDERED. THANK YOU. 10:00:39 THERE IS ONE MAJOR DIFFERENCE BETWEEN EXXONMOBIL'S PLAN AND 10:00:42 THE OTHER RESPONSE PLAN. THE SECTION DEALING WITH THE 10:00:47 MEDIUM. BP, SHELL, CONOCOPHILLIPS AND 10:00:49 CHEVRON HAVE PLANS WITH SHORT MEDIA RELATION SECTIONS. 10:00:53 EXXONMOBIL HAS AN ENTIRE 0-PAGE APPENDIX DEVOTED TO HOW TO 10:00:58 RESPOND TO THE PRESS. THE MEDIA SECTION IN THE 10:01:01 EXXONMOBIL PLAN DIRECTS PUBLIC AFFAIRS PERSONNEL TO AS YOU CAN 10:01:05 SEE ON DISPLAY MAINTAIN ON CAMERA SKILL PROFICIENCY. 10:01:09 IT ALSO EXPLAINS THAT COMMUNICATIONS WHICH CONVEY CARE 10:01:14 AND CONCERN FOR THE SITUATION AND PROVIDE RELEVANT FACTUAL 10:01:19 INFORMATION ARE AN INTEGRAL PART OF EXXONMOBIL'S RESPONSE. 10:01:23 IT SETS UP A FOUR-TIERED SYSTEM WHO CAN RESPOND TO MEDIA 10:01:26 INQUIRIES. THE HIGHEST LEVEL CATEGORY "D" 10:01:32 DICTATE SPECIAL TREATMENT ABOUT QUESTIONS ABOUT GLOBAL WARMING 10:01:36 AND THE "EXXON VALDEZ" AND CONTAINS 13 PREDRAFTED PRESS 10:01:41 RELEASES FOR ALMOST ANY OCCASION. 10:01:54 THERE IS A FULLY DRAFTED PRESS RELEASE FOR AN ACCIDENT 10:01:59 INVOLVING EXXONMOBIL FACILITY. IF THE INJURY OCCURS OFF-SITE, 10:02:02 THERE IS A SEPARATE PRESS RELEASE FOR THAT. 10:02:04 SIX OF THE STOCKPILED PRESS RELEASES ARE READY TO EXPRESS 10:02:08 THEY DEEPLY REGRET AN OUTCOME WHILE TWO OR MORE PRESS RELEASES 10:02:13 STAND READY TO EXPRESSION THAT EXXONMOBIL IS DEEPLY SADDENED. 10:02:17 THE MEDIA SECTION CONTAINS A TOPIC GUIDE WITH TALKING POINTS 10:02:21 ON OVER 65 ISSUES. AND FIVE DIFFERENT PLACES THE 10:02:24 PLAN DIRECTS THE PUBLIC AFFAIRS AGENTS IS TOY "WE COMPLY WITH 10:02:30 ALL APPLICABLE LAWS AND REGULATIONS AND APPLY REASONABLE 10:02:33 STANDARDS WHERE LAWS AND REGULATIONS DO NOT EXIST." 10:02:36 IF A PUBLIC AFFAIRS OFFICER IS ASKED ABOUT CRIMINAL CHARGES, 10:02:39 THE PLAN INSTRUCTIONS THEM TO SAY "WE BELIEVE THAT THERE ARE 10:02:42 NO GROUNDS FOR SUCH CHARGES. THIS WAS CLEARLY AN ACCIDENT AND 10:02:46 WE ARE WORKING TO RESPOND TO THE IMMEDIATE NEEDS OF THE 10:02:50 INCIDENT." THAT TALKING POINT IS READY TO 10:02:52 GO BEFORE A HYPOTHETICAL INCIDENT EVEN OCCURS, BEFORE 10:02:56 EXXONMOBIL COULD HAVE ANY IDEA OF WHETHER IT WAS ACTUALLY AN 10:02:59 ACCIDENT OR IF THERE ARE ANY GROUNDS FOR CRIMINAL CHARGES. 10:03:02 IN SHORT, EXXONMOBIL HAS METICULOUSLY ANTICIPATED L 10:03:07 VIRTUALLY EVERY CONVERSATION THAT THE COMPANY MIGHT NEED TO 10:03:10 HAVE WITH THE MEDIA IN THE DAYS FOLLOWING AN OIL SPILL IN THE 10:03:12 GULF OF MEXICO. MY PROBLEM IS, THAT EXXONMOBIL 10:03:17 HAS GIVEN FAR LESS ATTENTION TO ACTUALLY CONTROLLING THE SPILL. 10:03:22 WHILE EXXONMOBIL HAS 40 PAGES ON ITS MEDIA RESPONSE STRATEGY, ITS 10:03:26 PLAN FOR RESOURCE PROTECTION IS ONLY 5 PAGES LONG AND ITS PLAN 10:03:30 FOR OIL REMOVAL IS JUST 9 PAGES LONG. 10:03:34 WE'VE ALL SEEN THE HORRIBLE IMAGES OF PELICANS AND OTHER 10:03:39 WILDLIFE COATED IN OIL FROM THE SPILL. 10:03:42 EXXONMOBIL'S PLAN IS MORE WORRIED ABOUT PUBLIC PERCEPTION 10:03:46 THAN WILDLIFE GIVEN THE MEDIA PLAN IS FIVE TIMES LONGER THAN 10:03:49 THE PLAN FOR PROTECTING WILDLIFE AND THE CANNED PREDRAFTED DEEPLY 10:03:54 SADDENED PRESS RELEASE RINGS HOLLOW WITH THE LOSS OF THE 11 10:03:57 PEOPLE WHO DIED ON THE DEEPWATER HORIZON RIG. 10:04:01 EXXONMOBIL'S PLAN IS A PERFECT METAPHOR FOR WHAT'S GOING WRONG 10:04:05 IN THE GULF TODAY. THE OIL COMPANY RESPONSE PLANKS 10:04:07 ARE GREAT FOR PUBLIC RELATIONS. THEY ALLOW THE OIL COMPANY TO 10:04:11 SAY WE HAVE A 500-PAGE PLAN TO SHOWS THEY'RE PREPARED FOR ANY 10:04:17 CONTINGENCY BUT THESE PLANS ARE VIRTUALLY WORTHLESS WHEN A SPILL 10:04:20 ACTUALLY OCCURS AND THAT'S EXACTLY THE KIND OF MISPLACED 10:04:24 PRIORITIES THAT HAS LED TO THIS DISASTER. 10:04:26 I YIELD BACK THE BALANCE OF MY TIME. 10:04:29 WE THANK THE GENTLEMAN. THE CHAIR NOW RECOGNIZES THE 10:04:32 RANKING MEMBER OF THE OVERSIGHT AND INVESTIGATION SUBCOMMITTEE, 10:04:37 THE GENTLEMAN FROM TEXAS, MR. BURGESS. 10:04:39 I THANK THE CHAIRMAN AND I DO HAVE TO WONDER WHAT ANY OF US 10:04:44 EXPECT TO ACHIEVE WITH THIS HEARING TODAY. 10:04:46 I KNOW THAT THE FOLKS AT HOME ARE SAYING AND THINKING THEY 10:04:55 WANT IT TO STOP TODAY BUT IT CONTINUES TO LEAK BUT I DON'T 10:04:58 THINK ANYONE BEHIND THE DAIS WILL TELL US HOW TO TURN THAT 10:05:03 FLOW OFF TODAY. YOU KNOW, THE MAJORITY DID NOT 10:05:05 CALL THIS HEARING TO TALK ABOUT MEANINGFUL SOLUTIONS TO SHUTTING 10:05:10 OFF THAT FLOW IN THE GULF TODAY BECAUSE THIS SITUATION REALLY 10:05:15 PRESENTS ITSELF TOO GREAT AN OPPORTUNITY TO GIVE SOME MEMBERS 10:05:18 OF THIS COMMITTEE THE IMPETUS FOR PASSING EVEN MORE 10:05:23 REGULATIONS. AND LIKELY THERE WILL ALSO BE 10:05:25 THE OPPORTUNITY TO INCREASE ENERGY TAXES THAT AMERICANS WILL 10:05:29 PAY INTO THE FORESEEABLE FUTURE UNDER THE GUISE OF CLEAN ENERGY 10:05:33 OR CLIMATE CHANGE LEGISLATION. THE PRESIDENT'S CHIEF OF STAFF, 10:05:36 RAHM EMANUEL, SPELLED OUT THE DEMOCRATIC STRATEGY FOR NATIONAL 10:05:39 FRG POLICY BEST WHEN HE ANNOUNCED YOU NEVER WANT TO LET 10:05:42 A SERIOUS CRISIS GO TO WASTE AND THIS IS A SERIOUS CRISIS. 10:05:47 BUT IN SOME WAYS, MR. CHAIRMAN, THIS COMMITTEE UNDERMINES ITS 10:05:52 OWN BELIEF, 11 LIVES WERE LOST WHEN WE CAPITALIZE ON A TRAGEDY 10:05:58 TO PUSH FORWARD A POLITICAL AGENDA. 10:06:01 NOW, I HOPE THE MAJORITY MEMBERS PROVE ME WRONG AND I HOPE THAT 10:06:05 DURING THIS HEARING THE MEMBERS OF THIS COMMITTEE WILL HAVE A 10:06:08 LASERLIKE FOCUS ON TRYING TO DISCERN OW WE STOP THIS LEAK. 10:06:11 BECAUSE THAT'S REALLY ALL THAT MATTERS RIGHT NOW. 10:06:14 THAT'S ALL THAT MATTERS TO THE FISHERMEN, TO THE SHRIMPERS AND 10:06:18 INDIVIDUALS WHOSE FAMILIES AND LIVELIHOODS HAVE BEEN PUT ON OIL 10:06:21 WHILE THE WELL CONTINUES TO SPILL INTO THE GULF OF MEXICO, 10:06:24 NOT HOW MUCH WE SPEND IN THE FUTURE ON SOLAR AND WIND 10:06:27 TECHNOLOGY, BOTH OF WHICH I SUPPORT, NOT HOW MUCH WE INVEST 10:06:30 IN NUCLEAR TECHNOLOGY AS CLEAN AS THAT MAY BE AND CERTAINLY HOW 10:06:35 MUCH THIS CONGRESS INTENDS TO CRIPPLE THE AMERICAN ECONOMY 10:06:38 EVEN FURTHER THAN IT ALREADY HAS WITH JOB-KILLING LEGISLATION. 10:06:42 WE'VE HAD THOSE DEBATES. WE'RE GOING TO HAVE THOSE 10:06:45 DEBATES IN THE FUTURE, BUT TODAY, TODAY LET'S KEEP THE 10:06:48 FOCUS WHERE IT BELONGS, AND IT'S PRETTY SIMPLE. 10:06:51 PLUG THE WELL, STOP THE SPILL, CLEAN THE GULF. 10:06:56 SO, MR. CHAIRMAN, I'M GOING TO RESPECTFULLY REQUEST, I KNOW YOU 10:07:00 SUBMITTED A LIST OF QUESTIONS THAT YOU WANT THE WITNESSES TO 10:07:03 ANSWER. I'M GOING TO ASK THEM TO INCLUDE 10:07:05 IN THEIR OPENING REMARKS HOW -- WHAT IDEAS THEY HAVE THAT WILL 10:07:09 STOP THE LEAK BECAUSE THAT'S REALLY THE QUESTION WE WANT 10:07:11 ANSWERED TODAY. IF THIS HEARING IS NOT ABOUT 10:07:14 STOPPING THE LEAK THEN WHY ARE WE HERE? 10:07:17 IN THE ALTERNATIVE IF THE WITNESSES TODAY REALLY DON'T 10:07:20 HAVE AN ANSWER TO THAT QUESTION, THEN RESPECTFULLY ONE MIGHT 10:07:22 SUGGEST THAT THIS COMMITTEE POSTPONE THE HEARING UNTIL WE 10:07:25 HAVE THE WITNESSES IN FRONT OF US WHO CAN ANSWER THAT QUESTION. 10:07:29 FINALLY, I BELIEVE THE MAJORITY IS LOOKING AT CRAFTING 10:07:32 LEGISLATION IN RESPONSE TO THE SPILL AND I'M CONCERNED THAT 10:07:34 THIS TRAGEDY WILL LEAVE CONGRESS TO DO WHAT IT SO OFTEN DOES AND 10:07:39 RUSH INTO WRITING LEGISLATION AND WITH REALLY NO THOUGHT TO 10:07:43 WHAT THE CONSEQUENCES DOWN THE ROAD WILL BE. 10:07:47 A WEEK AGO THE COMMITTEE ON OVERSIGHT AND INVESTIGATIONS HAD 10:07:51 A SUBCOMMITTEE FIELD HEARING IN LOUISIANA. 10:07:53 AND WE HEARD TESTIMONY AND IT WAS PRETTY TOUGH TESTIMONY FROM 10:07:57 TWO OF THE WIDOWS OF -- TWO WOMEN WHO HAD LOST HUSBANDS ON 10:08:02 THE DEEPWATER HORIZON. BOTH WIDOWS STATED UNEQUIVOCALLY 10:08:07 THEY BELIEVE THE CURRENT REGULATORY REQUIREMENTS FOR 10:08:09 OFFSHORE DRILLING ARE MORE THAN SUFFICIENT TO KEEP THE MEN AND 10:08:12 WOMEN WORKING ON THOSE OFFSHORE RIGS SAFE. 10:08:15 THE QUESTION THEN BECOMES IN WHETHER THE REGULATIONS ARE 10:08:19 BEING PROPERLY ENFORCED. MRS. NATALIE RASHTO TOLD OUR 10:08:23 COMMITTEE "AFTER ALL OF THE SAFETY SCHOOLS, MEETINGS, FIRE 10:08:27 DRILLS AND SAFETY REGULATIONS, I JUST KNEW HE WAS SAFE. 10:08:32 WE NEED TO FOCUS ON MAKING SAFETY THE MOST IMPORTANT 10:08:37 PRIORITY, TO THE TO FOCUS ON MAKING MORE SAFETY REGULATIONS, 10:08:40 BUT ON WAYS TO EFFECTIVELY IMPLEMENT AND USE THE ONES 10:08:43 ALREADY IN PLACE." MISS COURTNEY KEMP FOLLOWED WITH 10:08:50 HER STATEMENT, "I'M NOT HERE TODAY TO SUGGEST THAT CONGRESS 10:08:54 IMPLEMENT MORE SAFETY REGULATIONS, BUT RATHER TO 10:08:57 ENCOURAGE YOU TO HOLD COMPANIES ACCOUNTABLE FOR SAFETY 10:09:01 REGULATIONS THAT ARE ALREADY IN PLACE AND MERELY NEGLECTED." 10:09:07 AND MISS KEMP WENT ON TO SAY OFFICE ACCOUNTS FOR 75% TO 80% 10:09:11 OF ALL OF THE JOBS IN HER LITTLE TOWN IN LOUISIANA. 10:09:15 SHE SAID THAT LESS OFFSHORE DRILLING WOULD DEVASTATE THE 10:09:18 LOCAL ECONOMIES OF NOT ONLY COASTAL LOUISIANA BUT ALSO THE 10:09:22 ECONOMIES OF OTHER GULF COAST COMMUNITIES WHO RELY ON OFFSHORE 10:09:26 DRILLING AND OIL RIG JOBS. EVERY JOB ON THE RIG IS TON FOR 10:09:31 FOUR TO FIVE JOBS ONSHORE. WHEN ALL OF THIS IS SAID AND 10:09:34 DONE WE NEED TO FIND OUT WHY THE AGENCY, WHY OUR FEDERAL AGENCIES 10:09:39 CHARGED WITH ENFORCING SAFETY REGULATIONS APPEARED TO FEEL AS 10:09:43 IF THAT JOB WAS UNIMPORTANT. WE NEED TO FIND OUT WHY THEY 10:09:48 WERE ASLEEP AT THE SWITCH AND CERTAINLY WE NEED TO HOLD ANY 10:09:52 PARTY ACCOUNTABLE AT THE FEDERAL LEVEL THAT SKIRTED SAFETY 10:09:56 MEASURES. BUT FIRST WE MUST STOP THE LEAK. 10:10:00 MR. CHAIRMAN, I'LL YIELD BACK THE BALANCE OF MY TIME. 10:10:02 WE THANK THE CHAIRMAN. THE CHAIR RECOGNIZES THE 10:10:05 CHAIRMAN EMERITUS OF THE COMMITTEE, THE GENTLEMAN FROM 10:10:09 MICHIGAN, MR. DINGELL. THANK YOU FOR HOLDING THIS 10:10:16 HEARING. I HAVE A SPLENDID STATEMENT 10:10:18 WHICH I'M SURE EVERYONE WILL ENJOY READING AND IN ORDER TO 10:10:22 SAVE THE TIME OF THE COMMITTEE, I ASK UNANIMOUS CONSENT TO 10:10:27 INSERT IT INTO THE RECORD. WITHOUT OBJECTION, SO 10:10:29 ORDERED. ALL RIGHT. 10:10:39 THE GENTLEMAN'S TIME IS EXPIRED. THE CARE RECOGNIZES THE 10:10:43 GENTLEMAN FROM PENNSYLVANIA, MR. DOYLE. 10:10:44 MR. CHAIRMAN, THANK YOU FOR CONVENING THIS HEARING TODAY TO 10:10:47 EXAMINE THE IMPACTS OF OUR NATION'S DEPENDENCE ON OIL AND 10:10:51 THE SAFETY OF DRILLING OPERATIONS. 10:10:53 WE'RE 57 DAYS INTO THIS ENVIRONMENTAL AND ECONOMIC 10:10:57 TRAGEDY AND THE RESPONSE EFFORT IS ONGOING. 10:10:59 WE'VE LEARNED THAT THIS GULF OIL SPILL IS, IN FACT, THE LARGEST 10:11:03 IN U.S. HISTORY, NEW ESTIMATES SHOW THAT UNLIKE BP'S PREVIOUS 10:11:07 CLAIM OF 5,000 BARRELS LEAKING INTO THE GULF EACH DAY, IT'S 10:11:11 MORE LIKELY ABOUT 40,000 BARELIES ARE LEAKING INTO THE 10:11:14 GULF EACH DAY, BUT NO ONE REALLY KNOWS. 10:11:17 AS SUCH, PRESIDENT OBAMA HAS ISSUED A MORATORIUM ON ALL 33 OF 10:11:21 THE DEEPWATER DRILLING RIGS IN THE GULF OF MEXICO FOR SIX 10:11:25 MONTHS OR UNTIL THE COMPLETION OF THE PRESIDENTIAL COMMISSION 10:11:29 INVESTIGATING THE SPILL. THE NATIONAL OCEANIC AND 10:11:33 ATMOSPHERIC ADMINISTRATION HAS TOLD US ABOUT THE INABILITY OF 10:11:35 THE ADMINISTRATION TO HANDLE AN ADDITIONAL CONCURRENT OIL SPILL 10:11:38 AT THIS TIME AND AS HURRICANE SEASON BEGINS WITH CONDITIONS 10:11:43 RIFE WITH POTENTIAL FOR DISASTROUS STORMS I BELIEVE THE 10:11:47 ADMINISTRATION IS TAKING THE PROPER STEPS TO AVOID AN EVEN 10:11:49 MORE CATASTROPHIC EVENT. IN FACT, RECENT EVENTS ALL OVER 10:11:54 THE COUNTRY MERIT THE NEED FOR A SERIOUS REVIEW OF SAFETY 10:11:57 PRACTICES IN THE ENTIRE OIL AND GAS INDUSTRY. 10:12:00 JUST THIS WEEKEND, CHEVRON SPILLED AS MUCH AS 500 BARRELS 10:12:04 OF OIL INTO A STREAM IN UTAH AND THEN THE LAST FEW WEEKS, THE 10:12:10 MARSELLUS SHELL SAW TWO DIFFERENT BLOW-OUTS OF NATURAL 10:12:12 GAS WELLS ONE IN WEST VIRGINIA AND ONE IN MY HOME STATE OF 10:12:15 PENNSYLVANIA. IN THE BLOW-OUT IN PENNSYLVANIA, 10:12:18 THE BLOW-OUT PREVENTER FAILED ALLOWING NATURAL GAS AND 10:12:24 FRACKING FLUID TO GUSH FOR 16 HOURS WHILE THE CREW WITH THE 10:12:27 SKILLS TO CAP IT HAD TO BE KNOWN IN FROM TEXAS. 10:12:30 ONCE THEY ARRIVED IT ONLY TOOK THEM AN HOUR TO CAP THE WELL. 10:12:33 IN WEST VIRGINIA, THE GAS EXPLOSION CAUSED SEVEN WORKERS 10:12:36 TO BE INJURED AND FLAMES BURNED FOR DAYS BEFORE IT WAS BROUGHT 10:12:39 UNDER CONTROL. OUR GROWING ENERGY DEMANDS 10:12:43 REQUIRE THAT WE WILL CONTINUE TO USE NATURAL RESOURCES UNDER OUR 10:12:46 LAND AND SEA. BUT THERE IS SIMPLY NO REASON WE 10:12:49 SHOULD CONTINUE TO EXTRACT OUR NATURAL RESOURCES IN A 10:12:55 HEDGEMONIC AND VORACIOUS STYLE. THE OIL RESERVOIRS AREN'T GOING 10:12:59 ANYWHERE. THE NATURAL GAS IN THE MARSELLUS 10:13:02 SHELF ISN'T GOING ANYWHERE. I THINK IT'S TIME WE TAKE A STEP 10:13:06 BACK TO LEARN HOW TO DO IT BETTER AND SAFER AND FOR 10:13:10 SUFFICIENTLY. WITH THAT I YIELD BACK MY TIME. 10:13:12 THE CHAIR RECOGNIZES THE GENTLEMAN FROM ILLINOIS, 10:13:19 MR. SHIMKUS. WILL WE GET THE ADDITIONAL 10:13:23 MINUTES FOR QUESTIONS IF WE WAIVE OUR OPENING STATEMENT. 10:13:25 THAT IS CORRECT. I WAIVE MY OPENING STATEMENT. 10:13:29 THE CHAIR RECOGNIZES MR. SHADDOCK. 10:13:35 I SIMILARLY WILL WAIVE MY OPENING STATEMENT. 10:13:38 THE GENTLEMAN WAIVES HIS STATEMENT. 10:13:41 WE RECOGNIZE THE GENTLEMAN FROM MISSOURI, MR. WLUNTS. 10:13:46 WE RECOGNIZE MR. SULLIVAN. I WAIVE MY OPENING STATEMENT 10:13:50 TOO. THE CHAIR RECOGNIZES THE 10:13:52 GENTLEMAN FROM ALABAMA, MR. GRIFFITH. 10:13:55 I'D LIKE TO THANK THE CHAIRMAN AND RANKING MEMBER FOR 10:13:58 CALLING THIS IMPORTANT HEARING TODAY AND THE WITNESSES FOR 10:14:00 TAKING TIME TO COME BEFORE OUR SUBCOMMITTEE TO DISCUSS DRILLING 10:14:04 IN OUR CURRENT AND FUTURE ENERGY PORTFOLIO. 10:14:07 OUR NUMBER ONE PRIORITY MUST BE STOPPING THE FLOW OF OIL. 10:14:10 THAT'S CERTAINLY OBVIOUS. IT'S THE JOB OF THIS CONGRESS TO 10:14:12 DO WHATEVER WE CAN TO AID THE UNIFIED COMMAND IN REACHING THIS 10:14:16 GOAL. THIS IS A TIME OF ENGINEERING 10:14:18 AND ACTION. IT'S NOT A TIME TO HASTILY PUT 10:14:21 TOGETHER KNEE-JERK ENERGY POLICIES THAT WILL JEOPARDIZE 10:14:24 OUR ENERGY AND ECONOMIC SECURITY IN THE FUTURE. 10:14:26 IT IS IMPERATIVE THAT THIS COMMITTEE REMEMBER THAT THE 10:14:29 UNITED STATES IS PART OF THE GLOBAL ENERGY ECONOMY AND, 10:14:32 THEREFORE, ALL POLICIES DISCUSSED MUST TAKE INTO 10:14:35 CONSIDERATION THAT WE ARE ONLY 4% OF THE WORLD'S POPULATION. 10:14:40 IF WE ENACT POLICIES THAT DRIVE DRILLING OUT OF U.S. WATERS 10:14:43 THESE COMPANIES WILL NOT CEASE TO DRILL. 10:14:45 BUT WE WILL CEASE TO BE ABLE TO ENSURE THAT OIL AND GAS 10:14:48 PRODUCTION IS DONE IN A SAFE AND IN AN ENVIRONMENTALLY FRIENDLY 10:14:52 MANNER. AS WE AWAIT THE OUTCOME OF THE 10:14:54 MANY INVESTIGATIONS TAKING PLACE, IT IS VITAL WE LEARN 10:14:58 LESSONS FROM THIS INCIDENT SO THAT WE CAN KEEP OUR WORKERS AND 10:15:01 ENVIRONMENT SAFE WHILE CONTINUING TO PRODUCE OUR 10:15:04 VALUABLE OIL AND GAS RESOURCES. THE MORATORIUM PUT IN PLACE BY 10:15:09 THIS ADMINISTRATION DOES NOT REFLECT THE PRESIDENT'S PREVIEW 10:15:13 AND THIS KNEE-JERK REACTION TO CREATE A MORATORIUM IS SIMPLY A 10:15:17 POLITICAL EXPRESSION EMBRYONIC IN NATURE WHICH HAS NO PLACE IN 10:15:21 A SITUATION THIS SERIOUS. THERE'S STILL MANY QUESTIONS TO 10:15:25 BE ANSWERED ABOUT WHAT HAPPENED ON DEEPWATER HORIZON. 10:15:28 HOWEVER, I THINK WE MUST ALSO QUESTION THE FEDERAL RESPONSE. 10:15:31 GOVERNMENT CANNOT FACILITATE A QUICK, EFFECTIVE RESPONSE AND 10:15:35 THIS EVENT HAS BEEN YET ANOTHER EXAMPLE OF THAT. 10:15:38 TO ECHO SOME OF MY COLLEAGUES, I THINK WE MUST TAKE A LONG, HARD 10:15:42 LOOK AT THE FEDERAL RESPONSE WHILE ALSO LOOKING AT THE 10:15:45 RESPONSE OF BP. THIS DISJOINTED EFFORT HAS NOT 10:15:50 AIDED IN HELPING TO CONTAIN AND END THE SPILL. 10:15:54 THANK YOU. THANK YOU FOR COMING TODAY AND I 10:15:57 LOOK FORWARD TO YOUR TESTIMONY. I YIELD BACK, MR. CHAIRMAN. 10:16:00 GREAT. THE GENTLEMAN'S TIME IS EXPIRED. 10:16:03 THE CHAIR RECOGNIZES THE GENTLEMAN FROM WASHINGTON STATE. 10:16:09 THANK YOU, MR. CHAIR. TODAY'S HEARING IS ENTICELED 10:16:13 DRILLING DOWN ON AMERICA'S DRILLING FUTURE AND SAFETY AND 10:16:16 SECURITY AND WE HAVE THE FIVE LEADERS OF THIS INDUSTRY AND I'M 10:16:20 INTERESTED IN WHAT THEY'RE SAYING IN THREE RESPECTS. 10:16:22 ONE I THINK WE NEED TO ASK IS THE INDUSTRY REALLY SHOWN 10:16:26 ACCOUNTABILITY TO MAKE SURE THAT THE LEADERS ARE ACCOUNTABLE FOR 10:16:30 SAFETY? SO I WILL BE INTERESTED IN 10:16:32 FINDING OUT HOW MANY PEOPLE AT BRITISH PETROLEUM HAVE LOST 10:16:35 THEIR JOBS TO DATE AS A RESULT OF THE MOST HORRIFIC T 10:16:39 ENVIRONMENTAL CATASTROPHE IN AMERICAN HISTORY. 10:16:41 I'LL BE INTERESTED IN THAT NUMBER. 10:16:42 NUMBER TWO, I WILL BE INTERESTED IN THE NUMBERS FROM THE LEADERS 10:16:44 OF THE INDUSTRY WHAT THEY ARE INVESTING IN AN EFFORT TO 10:16:49 DEVELOP TECHNOLOGIES THAT CAN REDUCE THE RISK OF OFFSHORE 10:16:52 DRILLING. THE NUMBERS WE HAVE SEEN IN OUR 10:16:54 QUESTIONS TO THE WITNESSES SO FAR ARE REALLY QUITE ASTOUNDING 10:16:59 IN HOW SMALL THEY ARE. THEY ALL ARE LESS THAN 0.1% OF 10:17:04 THEIR PROFITS HAVE BEEN INVESTED IN CLEANER TECHNOLOGY TO TRY 10:17:09 THOUGH REDUCE THE RISK OF THIS TYPE OF DISASTER. 10:17:12 THAT'S LESS THAN 0.01% OF THEIR GROSS REVENUES. 10:17:16 IT'S STUNNING TO ME IF THAT IS THE FACTS BUT WOULD LIKE TO ASK 10:17:19 THE LEADERS IF THAT'S THE CASE WHY THEY HAVE EXPOSED THIS 10:17:23 COUNTRY TO THIS TYPE OF RISK WITH SUCH REDUCED INVESTMENT. 10:17:26 AND, THIRD, IT IS APPROPRIATE TO ASK ABOUT THE INVESTMENT OF THE 10:17:29 INDUSTRY IN CLEAN ENERGY. IN THE REASON, IN ALL OF THE 10:17:34 LEADERS TODAY WILL ADMIT THIS, EVERY SINGLE OIL WELL WE HAVE 10:17:38 EVER DRILLED IS AN INVISIBLE OIL SPILL. 10:17:42 BECAUSE EVERY SINGLE WELL WE DRILL RESULTS IN PUTTING CARBON 10:17:46 DIOXIDE IN THE AIR WHICH GOES INTO THE ATMOSPHERE WHICH GOES 10:17:49 INTO SOLUTION IN THE OCEANS AND HAVE MADE THE OCEANS 30% MORE 10:17:52 ACIDIC THAN THEY ARE TODAY. THEY WILL BE SO ACIDIC BY THE 10:17:55 TIME MY GRANDCHILD LEAVES THE PLANET WE WON'T HAVE CORAL REEFS 10:18:00 ANYWHERE ON THE PLANET. EVERY SINGLE OIL WELL IS AN OIL 10:18:04 SPILL SO WE WILL BE INTERESTED IN KNOWING WHAT THESE LEADERS 10:18:06 ARE BRINGING TO THE TABLE IN AN EFFORT TO REDUCE OUR DEPENDENCE 10:18:09 ON FOSSIL FUELS IN AN EFFORT TO FIND CLEAN ENERGY AND PREVENT 10:18:13 THIS TYPE OF ENVIRONMENTAL DISASTER. 10:18:15 UNFORTUNATELY, IT WON'T BE THE NUMBERS WE'RE LOOKING FOR, BUT 10:18:17 HOPEFULLY WE'LL INSPIRE SOME CHANGES. 10:18:18 THANK YOU. GREAT, GENTLEMAN'S TIME HAS 10:18:22 EXPIRED. THE CHAIR RECOGNIZES THE 10:18:24 GENTLEMAN FROM KENTUCKY, MR. WHITFIELD. 10:18:27 MR. CHAIRMAN, I WILL WAIVE MY OPENING STATEMENT. 10:18:30 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. HALL. 10:18:35 MR. CHAIRMAN, I CAN LOOK BACK A LOT BETTER THAN I CAN LOOK 10:18:40 FORWARD AND WHEN I LOOK BACK, I LOOKED AT TWO ENTITIES THAT 10:18:43 OUGHT TO BE LOOKED TO THE -- THERE HAVE BEEN SUGGESTIONS THAT 10:18:46 THE FEDERAL GOVERNMENT OUGHT TO PAY A MORE PROMINENT ROLE IN 10:18:49 DISASTERS SUCH AS TAKING OVER THE PROCESS OF CAPPING THE WELL. 10:18:53 WELL, THERE'S TWO THINGS YOU'D LOOK AT THERE AND ONE IS THE 10:18:57 FINANCIAL STATEMENTS OF THE TWO ENTITIES, THE UNITED STATES OF 10:19:00 AMERICA OR BRITISH PETROLEUM AND I FIND BRITISH PETROLEUM IN A 10:19:03 LOT BETTER SHAPE THAN THE UNITED STATES OF AMERICA. 10:19:06 IT'S THEIRS -- I THINK IT INITIALLY WE SHOULD HAVE TURNED 10:19:10 IT OVER TO BRITISH -- TO CAP THEIR WELL AND AFTER THEY CAPPED 10:19:14 THEIR WELL WE'LL TELL THEM HOW MUCH THEY OWE EVERYBODY ELSE AND 10:19:18 I DON'T THINK THIS PRESIDENT KNOWS ANY MORE ABOUT CAPPING A 10:19:21 WELL OR GOING OUT AND COUNTING THOSE BIRDS OR PICKING UP LITTLE 10:19:26 PARTS OF THE WASTE THAN HE KNEW ABOUT THE OLYMPICS AND I RESENT 10:19:31 THE FACT HE'S TRYING TO BLAME SOME OF THIS ON BUSH WHEN BUSH 10:19:34 ON 9/11 I DON'T RECOLLECT HIM EVER ACCUSING CLINTON. 10:19:37 I YIELD BACK MY TIME. THE GENTLEMAN'S TIME HAS 10:19:40 EXPIRED. WE RECOGNIZE THE GENTLE LADY 10:19:45 FROM CALIFORNIA, MISS MATSUI. THANKS FOR CALLING TODAY'S 10:19:48 HEARING. I'D ALSO LIKE TO THANK THE 10:19:53 WITNESSES. THE FAMILIES OF THOSE WHO LOST 10:19:54 THEIR LIVES OR HAD THEIR LIVELIHOODS SEVERELY IMPACTED BY 10:19:58 THE DISASTER OF UNPRECEDENTED PROPORTIONS DESERVE OUR SUPPORT. 10:20:03 NOW AS WE CONTINUE TO SEEK ANSWERS FROM BP AND OTHERS ABOUT 10:20:05 THE CAUSE OF THE ACCIDENT, WE MUST HOLD THOSE RESPONSIBLE 10:20:10 ACCOUNTABLE. THE FIRST PRIORITY OF BP MUST BE 10:20:12 TO STOP THE LEAK FROM CONTINUING TO SPREAD AND TO ENSURE THE 10:20:16 CLEANUP EFFORTS ARE CARRIED OUT TO PROTECT OUR COASTAL 10:20:20 COMMUNITIES AND THE FAMILIES WHOSE LIVELIHOODS DEPEND ON IT 10:20:24 AND IT IS INCUMBENT ON ALL OF US TO MAKE CERTAIN THIS NEVER 10:20:28 HAPPENS AGAIN. THE UNFORTUNATE PART IS WE HAVE 10:20:33 BEEN HERE BEFORE. I REMEMBER MORE THAN 40 YEARS 10:20:37 AGO WHEN UNION OIL'S PLATFORM "A" EXPLODED OFF THE COAST OF MY 10:20:41 HOME STATE. MY CONCERN IS THAT TODAY COULD 10:20:44 BE LIKE 1969 ALL OVER AGAIN. AND THAT WE ARE SETTING 10:20:48 OURSELVES UP FOR ANOTHER FOUR DECADES OF MORE OF THE SAME. 10:20:52 SO THE QUESTION I HAVE TODAY IS, WHAT HAS CHANGED? 10:20:56 WHAT CAN THE OIL COMPANIES TELL US TODAY TO ASSURE US THAT THIS 10:21:00 STORY IS NOT SIMPLY REPEATING ITSELF? 10:21:03 BECAUSE WHAT THE GULF REGION AND THE AMERICAN PEOPLE DO NOT WANT 10:21:07 TO HEAR NOW ARE THE SAME EXCUSES THAT WERE EMPLOYED DECADES AGO 10:21:13 ABOUT OIL BEING OUR LARGEST AND MOST RELIABLE ENERGY OPTION. 10:21:17 IN FACT, THE BP OIL SPILL U 10:21:24 UNDERSCORES THE NEED TO LOOK FOR CLEANER ALTERNATIVES THAT WILL 10:21:26 SAVE OUR ENVIRONMENT FROM HARM. IF WE HAVE LEARNED ANYTHING FROM 10:21:30 THE DISASTER, IT IS THAT WE MUST CONTINUE TO EXPLORE CLEAN TECH 10:21:35 ALTERNATIVES TO BIG OIL. TODAY'S HEARING IS A STEP IN 10:21:38 THAT DIRECTION. THANK YOU, MR. CHAIRMAN. 10:21:40 AND I YIELD BACK THE BALANCE OF MY TIME. 10:21:42 GREAT. GENTLE LADY'S TIME HAS EXPIRED. 10:21:46 WE RECOGNIZE THE GENTLE LADY FROM CALIFORNIA, MISS BONO MACK. 10:21:50 THANK YOU, MR. CHAIRMAN. I THANK YOU FOR YIELDING ME THIS 10:21:52 TIME. I WELCOME THE OPPORTUNITY TO 10:21:54 HEAR FROM THE WITNESSES TODAY ABOUT OUR ENERGY SECURITY AND 10:21:57 THE ONGOING OIL SPILL, OPERATIONS IN THE GULF. 10:21:59 THE COMPANIES REPRESENTED BY THE WITNESSES AT THE TABLE ARE AT 10:22:02 THE FOREFRONT OF ENERGY RESOURCES DEVELOPMENT AND GROWTH 10:22:06 AND YOUR INSIGHTS WILL BE VERY IMPORTANT FOR HOW TO ENSURE A 10:22:08 SPILL OF THE CURRENT MAGNITUDE NEVER HAPPENS AGAIN. 10:22:12 AS WE JUST HEARD FROM MY OTHER COLLEAGUE IN CALIFORNIA MANY OF 10:22:15 US IN CALIFORNIA AND SOUTHERN CALIFORNIA CERTAINLY STILL 10:22:18 RECALL THE OIL SPILL IN SANTA BARBARA FROM 1969. 10:22:21 TO GET A SENSE OF THE MAGNITUDE OF WHAT WE'RE FACING 10:22:24 ADMINISTRATION SCIENTISTS AS OF YESTERDAY WERE ESTIMATING THAT 10:22:27 BP'S WELL COULD BE SPEWING AS MUCH AS FOUR TIMES THAT OIL 10:22:31 EVERY DAY AS WE SPILLED DURING THE ENTIRE SANTA BARBARA 10:22:34 DISASTER. AMERICAN LIVES HAVE ALREADY BEEN 10:22:36 TRAGICALLY LOST AND WE'VE YET TO FULLY UNDERSTAND THE 10:22:39 ENVIRONMENTAL AND ECONOMIC IMPACTS SO THERE IS SIGNIFICANT 10:22:41 WORK AHEAD. OUR PRIORITY FOR OUT AND FOR THE 10:22:44 DAYS AHEAD AS WE'VE ALL SAID MUST BE TO COMPLETELY STOP THE 10:22:48 LEAK. I HOPE OUR WITNESSES ARE WILLING 10:22:50 TO OFFER WHATEVER ASSISTANCE THEY CAN TO ENSURE THAT THAT IS 10:22:53 OUR FOCUS. I'M FAIRLY CERTAIN IT IS WHAT 10:22:55 THE AMERICAN PEOPLE WANT. AS WE SIT HERE TODAY NEARLY TWO 10:22:59 MONTHS HAVE PASSED SINCE THE ORIGINAL DEEPWATER HORIZON 10:23:02 EXPLOSION. WHAT HAVE WE SEEN IN THE 10:23:04 INTERIM? A NUMBER OF CHARGES AGAINST BP 10:23:06 THAT STILL DESERVE ANSWERS, NEW GOVERNMENT COMMITTEES SET UP 10:23:10 ACROSS AGENCIES THAT ARE SLOW IN CRUCIAL DECISIONMAKING AND MOST 10:23:14 IMPORTANTLY THE LIVELIHOODS OF SO MANY GULF RESIDENTS ARE BEING 10:23:18 SEVERELY THREATENED. I WILL BE INTERESTED TO LEARN 10:23:20 ABOUT THE TECHNOLOGIES THAT THESE COMPANIES HAVE INVESTED IN 10:23:23 TO HELP PROTECT AGAINST ANY FUTURE SPILL. 10:23:25 MR. CHAIRMAN, WE AS A FACE OUGHT TO BE DEVOTING ALL OF OUR 10:23:29 RESOURCES TO THIS DISASTER. AS THE ECHOES OF THE SANTA 10:23:32 BARBARA SPILL STILL HAUNT US DECADES LATER AND AS YEARS OF 10:23:36 FAILED ENERGY POLICIES DO AS WELL HOW THIS CRISIS IS MANAGED 10:23:39 OR MISMANAGED MATTERS. WE DO NOT KNOW THE LONG-TERM 10:23:42 CONSEQUENCES YET FROM THE SPILL BUT THE DEVASTATION TO THE 10:23:45 ENVIRONMENT AND THE ECONOMY WILL BE LONG-LASTING AND HAVE 10:23:47 NATIONAL IMPLICATIONS. I APPRECIATE OUR WITNESSES BEING 10:23:50 HERE TODAY AND I YIELD BACK MY TIME. 10:23:52 THANK YOU. WE THANK THE GENTLE LADY. 10:23:54 THE CHAIR RECOGNIZES THE GENTLEMAN FROM CALIFORNIA, 10:23:58 MR. McNERNEY. THANK YOU, MR. CHAIRMAN. 10:24:03 FOR TODAY'S HEARING, I WANT TO WELCOME THE PANELISTS HERE THIS 10:24:07 MORNING. THE EXPLOSION OF THE DEEPWATER 10:24:09 HORIZON AND RESULTING OIL GUSH IS A TRAGEDY WITH TERRIBLE HUMAN 10:24:15 CONSEQUENCES. OUR THOUGHTS AND PRAYERS ARE 10:24:16 WITH THE FAMILIES OF THE VICTIMS AND THE HARD-WORKING AMERICANS 10:24:22 WHO WHOSE WAYS OF LIVES ARE THREATENED. 10:24:24 AMERICANS ARE SHOCKED AND SADDENED BY WHAT OCCURRED BUT 10:24:27 THEY'RE OUTRAGED IS BECAUSE THERE IS NO REAL PLAN TO RESPOND 10:24:31 TO A CRISIS OF THIS MAGNITUDE. THE TECHNOLOGY THAT WAS SUPPOSED 10:24:35 TO FAIL-SAFE FAILED BADLY. HOW COULD COMPANIES LIKE BP HAVE 10:24:41 INVESTED SO MANY MILLIONS OF DOLLARS THIS TECHNOLOGY FOR DEEP 10:24:44 WATER DRILLING BUT FAILED TO DEVELOP EFFECTIVE TECHNOLOGIES 10:24:47 TO PREVENT THIS KIND OF GUSH? I WANT TO KNOW TODAY WHAT STEPS 10:24:52 THE INDUSTRY IS TAKING TO ENSURE THAT THE TECHNOLOGIES DESIGNED 10:24:56 TO BE FAILSAFE WORK AS PROMISED AND WHAT INVESTMENTS THE 10:25:00 INDUSTRY IS MAKING IN TECHNOLOGIES THAT WOULD ALLOW 10:25:03 FOR A FAR MORE EFFECTIVE RESPONSE TO THE DISASTER. 10:25:08 HOWEVER, THE REAL SOLUTION IS TO DELIBERATELY REDUCE OUR 10:25:13 CONSUMPTION OF PETROLEUM FUELS SO THE DEMAND FOR OIL IS 10:25:17 TECHNICALLY MANAGEABLE. I BELIEVE THAT THIS CAN BE DONE 10:25:20 IN A WAY THAT IMPROVES OUR NATIONAL ECONOMY AND I WANT TO 10:25:24 KNOW WHAT THE EXECUTIVES SITTING HERE IN FRONT OF ME TODAY ARE 10:25:28 GOING TO DO TO ACHIEVE THIS GOAL. 10:25:30 THANK YOU, MR. CHAIRMAN, AND I YIELD BACK. 10:25:32 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:25:35 GENTLEMAN FROM FLORIDA, MR. STEARNS. 10:25:38 GOOD MORNING AN THANK YOU, MR. CHAIRMAN AND THANK YOU FOR 10:25:40 HAVING THIS HEARING TOGETHER WITH THE RANKING MEMBER UPTON. 10:25:44 THE TITLE OF THE HEARING IS DRILLING DOWN ON AMERICA'S 10:25:47 ENERGY FUTURE SAFETY SECURITY AND CLEAN ENERGY. 10:25:50 I'M NOT SURE THE TITLE REALLY IS APPROPRIATE AS WELL AS LISTENING 10:25:56 TO SOME OF THESE OPENING STATEMENTS. 10:25:58 THE BOTTOM LINE IS ALL OF US ARE FRUSTRATED HERE AND CONGRESS, AS 10:26:02 WELL AS OBVIOUSLY THE GULF COAST RESIDENTS. 10:26:05 WE DON'T UNDERSTAND WHY BP DIDN'T ACT MORE QUICKLY. 10:26:10 I ASK CEO LAMAR McKAY THE QUESTION IS HOW MANY BARRELS ARE 10:26:14 MANY COULD GO OUT PER DAY. HE SAID 5,000 THEN I READ TO HIM 10:26:17 FROM HIS OWN REPORT THAT HE COULD HANDLE UP TO 300,000 10:26:21 BARRELS A DAY TEN MILES OFF THE SHORE SO THE QUESTION TO HIM IS 10:26:24 WHY CAN'T YOU HANDLE 5,000? WELL, OBVIOUSLY THE 5,000 WASN'T 10:26:28 CORRECT AT LEAST MANY OF US DON'T THINK IT WAS CORRECT. 10:26:31 WE NOW HAVE AN OIL SPILL THAT'S SEVEN TIMES THE "EXXON VALDEZ" 10:26:36 AND YET THERE'S NO END IN SIGHT AT THIS POINT. 10:26:39 SO REALLY THE PURPOSE OF THIS HEARING IS TO ASK THESE 10:26:42 EXECUTIVES, THESE ARE PEOPLE THAT ARE MAKING THE TOP SALARIES 10:26:46 IN THE WORLD TO GET TO THEIR SPOT THEY HAVE UNUSUAL ACUMEN, 10:26:53 FORESIGHT, ENERGY, BUSINESS AWARENESS AND OBVIOUSLY HAVE A 10:26:57 LOT OF CORPORATE POLITICAL SAVVY TO GET WHERE THEY ARE. 10:27:00 THEY WOULDN'T BE HERE TODAY, MR. CHAIRMAN. 10:27:02 SO THE QUESTION IS, CAN EACH ONE OF YOU IN YOUR HEART OF HEARTS 10:27:05 SAY TO US THAT AMERICA IS PROTECTED WITH ALL THE OIL RIGS 10:27:09 YOU HAVE OUT THERE? WE HAVE ALMOST 3,800 IN THE 10:27:12 GULF. CAN YOU TELL US TODAY THAT WE'LL 10:27:15 BE SAFE, THAT AMERICA WILL BE SAFE AND YOU HAVE BACKUP WORST 10:27:19 CASE SCENARIOS? MR. McKAY SAID HE DID BUT HE 10:27:23 DIDN'T. HE DIDN'T EVEN TELL US THE RIGHT 10:27:25 5,000 BARRELS A DAY. OBVIOUSLY IT WAS NOT THAT SO WE 10:27:27 FEED TO HEAR FROM YOU UNDER OATH THAT YOU CAN IN A WORST CASE 10:27:31 SCENARIO PROTECT AMERICA'S SHORES. 10:27:33 THANK YOU, MR. CHAIRMAN. ALL RIGHT. 10:27:35 THE GENTLEMAN'S TIME HAS EXPIRED. 10:27:37 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. GREEN. 10:27:43 THANK YOU, MR. CHAIRMAN FOR HOLDING THE HEARING AND I WANT 10:27:47 TO WELCOME OUR PANELISTS TODAY. STATES ALONG THE GULF COAST ARE 10:27:51 IN THE MIDST OF DEALING WITH THIS TRAGEDY AND MY THOUGHTS AND 10:27:54 PRAYERS GO OUT TO THE FAMILIES AND COMMUNITIES AFFECTED BY THIS 10:27:58 ACCIDENT. FOR THOSE OF US WHO REPRESENT 10:27:59 ENERGY PRODUCING AREAS IT'S LIKE A LOSS IN THE FAMILY AND I THINK 10:28:03 WE NEED TO REMEMBER THAT. WHILE WE ANXIOUSLY AWAIT A 10:28:07 POSITIVE OUTCOME ON EFFORTS TO CONTAIN IT WE ARE BEGINNING THE 10:28:10 PROCESS OF THOROUGHLY EVALUATING ANSWERS ON WHAT WENT WRONG AND 10:28:16 HOLD RESPONSIBLE PARTIES ACCOUNTABLE. 10:28:17 AS WE CONSIDER HOW TO APPROACH THE ISSUES LEGISLATIVE IT'S 10:28:21 CRITICAL WE ALLOW THE FACTS TO COME TO LIGHT AND ALLOW FOR 10:28:24 THOUGHTFUL DELIBERATION FOR MAKING PERMANENT 10:28:26 STATUTORY-SWEEPING CHANGES THAT WOULD END UP TAKING US FURTHER 10:28:29 FROM OUR GOALS OF SAFE, RESPONSIBLE DEVELOPMENT OF OUR 10:28:32 NATURAL RESOURCES. QUICKLY MOVING FORWARD WITH THE 10:28:35 LEGISLATIVE PROPOSALS WOULD HAVE A PROFOUND EFFECT AND POSSIBLY 10:28:38 NEGATIVE CONSEQUENCES FOR AMERICA'S PRODUCTION POTENTIAL 10:28:41 IS NOT THE PATH THAT CONGRESS SHOULD TAKE TO RUSH TO DO 10:28:44 ANYTHING JUST TO BE DOING SOMETHING. 10:28:47 WHILE UNDERSTANDING THERE'S PUBLIC LEARINESS THAT THE DEEP 10:28:51 WATER PRODUCTION I WANT TO NOTE THERE IS STILL A MAJORITY OF THE 10:28:54 AMERICAN PEOPLE WOULD SUPPORT OUTER CONTINENTAL SHELF 10:28:57 DRILLING. I ENCOURAGE ADMINISTRATION 10:28:59 QUICKLY TO DEVELOP AND IMPLEMENT NECESSARY CHANGES IN THE SAFETY 10:29:03 AND PROCEDURAL STANDARDS FOR DEEP WATER AND SHALLOW WATER 10:29:07 DRILLING BECAUSE OF THE LOSS OF JOBS AND DOMESTIC PRODUCTION WE 10:29:10 WILL SEE IF THIS FULL SIX-MONTH DEEP WATER DRILLING MORATORIUM 10:29:15 IS LAST THING -- IT CONTINUES. THAT'S THE LAST THING OUR 10:29:19 RECOVERING ECONOMY NEEDS OR OUR NATION'S ENERGY NEEDS. 10:29:23 I IT'S ALSO ESTIMATED 120,000 JOBS COULD BE LOST AS A RESULT 10:29:26 OF THIS MORATORIUM. FINALLY I LOOK FORWARD TO 10:29:29 HEARING WHAT OUR PANEL PLANS TO DO TO RESTORE AMERICA'S PUBLIC'S 10:29:34 TRUST IN THE OIL AND GAS INDUSTRY. 10:29:35 THERE IS A GREAT RECORD IN THE GULF OF MEXICO, IT'S BEEN SAID 10:29:39 THE LAST TIME I CAN REMEMBER WAS THE WELL IN THE GULF OF MEXICO 10:29:44 WAS ACTUALLY IN THE BAY OF CAMPECHE IN 1979 SO WE HAVE A 10:29:48 GOOD RECORD. WE NEED TO FIND OUT WHY IT 10:29:51 DIDN'T WORK AND ALMOST EVERYTHING WENT WRONG WITH 10:29:54 HORIZON AND WHY IT IS WORKING IN LOTS OF OTHER WELLS THAT ARE 10:29:58 BEING DRILLED. OUR COUNTRY NEEDS A STRONG 10:30:01 STEADY DOMESTIC SUPPLY OF OIL AND GAS AND NATURAL GAS AND AS 10:30:06 WE TRANSITION TO ALTERNATIVE ENERGY SUPPLIES WE MUST NOT 10:30:10 FORGET THAT WE LEGISLATE THE RESPONSE TO THE ACCIDENT AND 10:30:12 LOOK FORWARD TO THE TESTIMONY. MR. CHAIRMAN, I YIELD BACK PIE 10:30:15 TIME. WE THANK THE GENTLEMAN. 10:30:17 WE RECOGNIZE THE GENTLEMAN FROM MR. MISSOURI, MR. BLUNT. 10:30:20 THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HOLDING THIS 10:30:23 HEARING. I HAVE A PREPARED STATEMENT I'LL 10:30:25 PUT IN THE RECORD. LET ME SUMMARIZE THAT A LITTLE 10:30:27 BIT AND FIRST BY SAYING I'M GLAD TO HAVE THESE FIVE INDIVIDUALS 10:30:32 HERE WHO AS MR. BARTON SAID HAVE SO MUCH AT STAKE AND SO MUCH 10:30:36 POTENTIAL TO BE PART OF THIS SOLUTION. 10:30:38 I'M HOPEFUL WE CAN USE THIS HEARING TODAY TO UNDERSTAND 10:30:41 BETTER WHY OUR GOVERNMENT AND BRITISH PETROLEUM COULD HAVE 10:30:45 POSSIBLY BEEN SO POORLY PREPARED FOR THIS DISASTER. 10:30:49 CERTAINLY PEOPLE IN THE FISHING INDUSTRY, THE TOURISM INDUSTRY 10:30:52 WANT ANSWERS TO THIS PROBLEM AND THERE'S PLENTY OF BLAME TO GO 10:30:56 AROUND. I DON'T THINK THE ADMINISTRATION 10:30:59 OR THE GOVERNMENT AGENCY HEADS HAVE DONE EVERYTHING THEY SHOULD 10:31:02 HAVE DONE FROM BEING PREPARED TO PREVENTION TO THE RESPONSE. 10:31:08 INCREDIBLY SEVEN WEEKS AFTER THE DEEPWATER HORIZON EXPLOSION 10:31:11 WE'RE STILL LACKING RESOURCES AND CONTAINMENT, THE BOOMS, THE 10:31:16 SKIMMERS, THE THINGS THAT SHOULD HAVE BEEN READILY AVAILABLE ARE 10:31:19 STILL NOT APPARENTLY THERE IN THE WAYS WE NEED THEM TO GO. 10:31:24 WEEKS AGO I INTRODUCED AND WEEKS NOW INTRODUCED LEGISLATION THAT 10:31:27 WOULD REQUIRE READY ACCESS TO THE THINGS NECESSARY TO CONTAIN 10:31:32 A PROBLEM IF A PROBLEM DEVELOPED IN THE GULF. 10:31:35 WE'RE LEARNING MORE AND MORE EVERY DAY ABOUT THE FAILINGS OF 10:31:40 THE INDUSTRY AND GOVERNMENT AND THE REGULATORS LEADING UP TO THE 10:31:43 INCIDENT, HOWEVER, OUR MAIN FOCUS TODAY AND IN THE NEXT FEW 10:31:47 WEEKS NEEDS TO BE TO STOP -- DO WHAT WE CAN TO STOP THIS PROBLEM 10:31:51 AND THEN TO STUDY THE PROBLEM AND SEE IT DOESN'T OCCUR AGAIN. 10:31:56 I'M CONVINCED THAT WE CAN PROTECT BOTH OUR ENVIRONMENT AND 10:32:00 OUR ECONOIMENT AS WE CONTINUE IN OUR PURSUIT OF MORE 10:32:03 INDEPENDENCE FROM FOREIGN OIL, CONGRESS AND THE ADMINISTRATION 10:32:06 SHOULD WORK TO ENSURE THAT WE CAN PRODUCE DOMESTIC OIL AND GAS 10:32:10 IN AN ENVIRONMENTALLY SOUND MANNER. 10:32:12 I'M AFRAID THAT THE MORATORIUM THAT THE ADMINISTRATION 10:32:15 ANNOUNCED AGAINST THE WISHES OF SECRETARY SALAZAR'S OWN 10:32:19 TECHNICAL ADVISERS WILL COST THOUSANDS OF JOBS AND ULTIMATELY 10:32:24 HARM CONSUMERS. IT'S OBVIOUS WE NEED TO HEAR 10:32:26 FROM THE PANELISTS TODAY. I'M GRATEFUL THEY'RE HERE. 10:32:30 IT'S ALSO OBVIOUS MEMBERS OF THIS COMMITTEE WANT TO SPEAK AND 10:32:32 ARE SPEAKING AND ARE CONCERNED THAT THIS NOT HAPPEN AGAIN AND 10:32:36 WE BE BETTER PREPARED TO TAKE ADVANTAGE OF OUR RESOURCES, NOT 10:32:39 BECOME THE VICTIM OF OUR RESOURCES. 10:32:41 AND I YIELD BACK. WE THANK THE GENTLEMAN. 10:32:43 THE CHAIR RECOGNIZES THE GENTLE LADY FROM CALIFORNIA, MISS 10:32:50 KAPPES. I LOOK FORWARD TO THE 10:32:51 TESTIMONY OF OUR WITNESSES TODAY. 10:32:54 BP'S DEEPWATER HORIZON OIL SPILL IN THE GULF IS AN ENVIRONMENTAL 10:32:58 DISASTER THAT HAS ALREADY CREATED AND TILL THREATENS 10:33:02 PROFOUND HUMAN AND ECONOMIC HARM. 10:33:04 WE ALL MUST DO EVERYTHING POSSIBLE TO CLEAN UP THE DAMAGE 10:33:06 FROM THIS INCIDENT AND PREVENT FUTURE ONES LIKE IT. 10:33:10 THIS MORNING OUR SUBCOMMITTEE NEEDS TO HEAR FROM BP, HOW THE 10:33:13 SPILL OCCURRED AND HOW IT'S GOING TO MAKE THE PEOPLE OF THE 10:33:16 GULF WHOLE. AND MORE BROADLY WE NEED TO HEAR 10:33:19 FROM THE OIL COMPANIES IN GENERAL ABOUT HOW THEY'RE GOING 10:33:22 TO PREVENT SPILLS IN THE FUTURE. UNFORTUNATELY, WE CAN'T STOP 10:33:26 DRILLING OVERNIGHT. AND THESE COMPANIES HAVE THE 10:33:29 RESPONSIBILITY TO DO EVERYTHING IN THEIR POWER TO PREVENT FUTURE 10:33:34 TRAGEDIES. HAVING SEEN THE 1969 OIL SPILL 10:33:37 FIRSTHAND, I CAN TELL YOU THAT SPILL RESPONSE TECHNOLOGY HAS 10:33:42 HARDLY ADVANCED IN THE PAST 40 YEARS. 10:33:45 FINALLY WE NEED TO HEAR FROM EACH WITNESS AND THEIR COMPANIES 10:33:48 WHETHER OR NOT THEY ARE GOING TO PLAY A CONSTRUCTIVE ROLE IN TRAN 10:33:52 SIGNIFICANTING OUR ECONOMY AWAY FROM DRILLING AND ONTO CLEAN 10:33:55 ENERGY SOURCES. THE RECORD TO DATE IS NOT 10:33:59 IMPRESSIVE. THEY NEED TO TRANSITION AWAY 10:34:00 FROM FOSSIL FUELS FOR THE SAKE OF OUR NATIONAL SECURITY, OUR 10:34:04 ECONOMY AND THE ENVIRONMENT. THIS COULD NOT BE MORE APPARENT 10:34:08 THAN IT IS TODAY. PASSING COMPREHENSIVE ENERGY AND 10:34:12 CLIMATE LEGISLATION IS JUST WHAT AMERICA NEEDS TO DO TO HELP GROW 10:34:16 OUR ECONOMY AND TO CREATE JOBS. TAXPAYERS DON'T NEED STATUS QUO 10:34:21 ENERGY POLICIES THAT SEND BILLIONS OVERSEAS TO HOSTILE 10:34:23 GOVERNMENTS. WE FEED A SAFER, A CLEANER AND A 10:34:26 MORE ECONOMICAL APPROACH TO ENERGY DEVELOPMENT. 10:34:28 ONE THAT SHIFTS US AWAY FROM OIL EVENTUALLY AND TOWARD RENEWABLE 10:34:33 SOURCES THAT CAN'T DESTROY OUR COASTLINES. 10:34:36 EVERY DAY WE DELAY OUR ECONOMY GROWS WEAKER. 10:34:39 OUR ENEMIES GROW STRONGER. AND THE PLANET BECOMES MORE 10:34:43 POLLUTED. IT'S TIME FOR REAL SOLUTIONS 10:34:45 THAT PROTECT RATHER THAN ENDANGER OUR COASTAL 10:34:48 COMMUNITIES, OUR LIVELIHOODS, OUR WAY OF LIFE. 10:34:51 I HOPE WE CAN ENACT BIPARTISAN CLIMB AND ENERGY LEGISLATION 10:34:54 THIS YEAR, MR. CHAIRMAN. I PLEDGE TO WORK WITH YOU TO 10:34:58 ACHIEVE THIS VERY IMPORTANT GOAL AND I YIELD BACK. 10:35:00 GREAT. THE GENTLE LADY'S TIME EXPIRED. 10:35:04 THE CHAIR RECOGNIZES THE GENTLEMAN FROM PENNSYLVANIA, 10:35:09 MR. PITTS. THANK YOU FOR HOLING THIS 10:35:12 HEARING. THE BP OIL SPILL IS A TRAGIC 10:35:14 EVENT IN THE HISTORY OF OUR COUNTRY. 10:35:17 NOT ONLY HAVE LIVES BEEN LOST, BUT AN UNKNOWN AMOUNT OF OIL HAS 10:35:22 BEEN LEAKED INTO THE OCEAN CAUSING HORRIBLE EFFECTS. 10:35:25 SOME OF WHICH WE KNOW NOW, SOME OF WHICH WILL TAKE YEARS TO 10:35:30 DISCOVER. FIRST AND FOREMOST, THE LEAKAGE 10:35:32 OF OIL MUST BE STOPPED. I THINK WE ALL KNOW THIS, BUT IT 10:35:35 BEARS REPEATING AND I HOPE OUR WITNESSES WILL TELL US WHAT THEY 10:35:39 THINK MUST BE DONE TO STOP THE LEAK. 10:35:42 ONCE THIS IS DONE, IT IS IMPERATIVE THAT WE THOROUGHLY 10:35:45 UNDERSTAND WHAT HAPPENED ABOARD DEEPWATER HORIZON BEFORE, DURING 10:35:50 AND AFTER THE EXPLOSION. WE MUST KNOW WHAT CAUSED THIS 10:35:53 HORRIFIC EVENT SO THAT IT NEVER HAPPENS AGAIN. 10:35:56 IN THE WAKE OF THIS EVENT, QUESTIONS HAVE NOT ONLY ARISEN 10:36:00 REGARDING THE CAUSE OF THE EXPLOSION AND THE LEAK BUT ALSO 10:36:04 REGARDING THE APPROPRIATENESS OF RESPONSE FROM BP AND THE 10:36:09 ADMINISTRATION. I FIND IT UNFATHOMABLE THAT THE 10:36:12 PRESIDENT IS JUST NOW MEETING WITH TOP BP EXECUTIVES. 10:36:15 IN ADDITION, IT SEEMS TO ME THAT THE ENTIRE FEDERAL RESPONSE HAS 10:36:19 BEEN NOT ONLY DISJOINTED, BUT CONFUSING AND FRUSTRATING FOR 10:36:24 THOSE ON THE GROUND TRYING TO BRING RELIEF. 10:36:27 THE MORATORIUM ANNOUNCED LAST WEEK IS JUST ANOTHER EXAMPLE OF 10:36:30 POOR JUDGMENT WITHOUT REGARD TO THE ECONOMIC LIVELIHOOD OF THE 10:36:35 GULF COAST REGION AND MILLIONS OF AMERICANS WHO BUY GAS EVERY 10:36:37 DAY FOR THEIR VEHICLES. AS I'VE SAID, THIS IS A TRAGIC 10:36:42 EVENT. WE NEED TO MAKE SURE DUE 10:36:44 DILIGENCE IS DONE IN INVESTIGATING THE CAUSES AND THE 10:36:46 APPROPRIATENESS OF RESPONSE IN THE AFTERMATH. 10:36:49 HOWEVER, WE NEED TO MAKE SURE THE RESPONSE OF THIS BODY AND 10:36:53 THE ADMINISTRATION IS PRUDENT, ONE THAT STILL ENCOURAGES OUR 10:36:57 COUNTRY'S ENERGY SECURITY AND INDEPENDENCE. 10:36:59 I LOOK FORWARD TO HEARING FROM OUR WITNESSES TODAY AND I NIELD 10:37:02 BACK. GREAT. 10:37:03 >THE GENTLEMAN'S TIME HAS EXPIRED. 10:37:05 WE RECOGNIZE THE GENTLE LADY FROM CALIFORNIA, HIS HARMAN. 10:37:10 WELCOME TO OUR WITNESSES. I HAVE LONG ARGUED AND SO HAVE 10:37:14 OTHERS THAT WE MUST MOVE AWAY FROM DEPENDENCE ON FOREIGN OIL. 10:37:18 WE KNOW THE NATIONAL SECURITY PITFALLS OF THAT DEPENDENCE. 10:37:23 WE SEE THAT PLAYED OUT EVERY SINGLE DAY IN WHAT'S GOING ON IN 10:37:27 THE MIDDLE EAST, BUT WE ALSO NOW CLEARLY SEE THAT THERE ARE 10:37:30 ENVIRONMENTAL AND ECONOMIC PITFALLS WITH OUR ONGOING 10:37:34 DEPENDENCE ON DOMESTIC OIL. MANY OF THE CALIFORNIANS ON THIS 10:37:37 PANEL INCLUDING ME STAUNCHLY OPPOSE DRILLING OFFSHORE 10:37:42 CALIFORNIA AND I WANT TO APPLAUD OUR PRESIDENT FOR MAKING CLEAR 10:37:46 THAT THAT WILL NOT HAPPEN. BUT IT IS ALSO CLEAR AS OUR 10:37:51 WITNESSES KNOW THAT CALIFORNIA HAS AN ADDICTION TO ONE DRIVER 10:37:55 PER CAR AND THAT, THEREFORE ARE MANY REFINERIES LOCATED 10:38:01 THROUGHOUT THE STATE FOUR OR FIVE IN MY DISTRICT ALONE, EL 10:38:05 SEGUNDO, FOR EXAMPLE, IS NAMED FOR THE SECOND CHEVRON REFINERY 10:38:09 IN THE STATE AND SO ALL OF YOU SITTING HERE LOOKING AT US ARE 10:38:12 SAYING, WELL, HEY, IF YOU'RE NOT FIXING THIS PROBLEM, WHY ARE YOU 10:38:16 BLAMING IT ALL ON US? I JUST WANT TO POINT OUT THE 10:38:19 OBVIOUS THAT SOME OTHER MEMBERS HAVE ALSO ADDRESSED, WHICH IS 10:38:24 THAT ALL THE COMPANIES BEFORE US HAVE IN 2009 YEARLY PROFITS 10:38:29 AMOUNTING TO MORE THAN $64 BILLION. 10:38:34 YOU PAID $37 BILLION IN DIVIDENDS TO YOUR SHAREHOLDERS. 10:38:37 YOU INVESTED MORE THAN $9.5 BILLION IN EXPLORATION, BUT YOU 10:38:42 INVESTED FAR LESS IN RENEWABLE AND ALTERNATIVE ENERGY. 10:38:46 YOU ARE ENERGY COMPANIES AND SO MY URGING WOULD BE WHY NOT 10:38:51 INVEST IN ENERGY PRODUCTS AND ENERGY TECHNOLOGIES THAT ARE FAR 10:38:55 SAFER THAT WILL WEAN US FROM OUR DEPENDENCE ON OIL AND KEEP YOUR 10:39:00 PROFIT LEVEL UP FOR YOUR SHAREHOLDERS BUT THAT OBVIOUSLY 10:39:03 WILL MAKE AMERICA SAFER AND FINALLY LET ME MENTION OUR 10:39:06 CONSTITUENTS ARE VERY SMART. ONE OF THEM APPROACHED ME THE 10:39:09 OTHER DAY AND SAID, "WHY DON'T WE REQUIRE ENERGY COMPANIES THAT 10:39:13 ARE DRILLING ESPECIALLY DEEP WELLS TO DRILL A RELIEF WELL 10:39:17 ALONGSIDE THE ORIGINAL WELL. IF IT WAS DRILLED AT THE SAME 10:39:20 TIME IT WOULD BE THERE IF A CATASTROPHE HAPPENED." 10:39:23 THANK YOU, MR. CHAIRMAN. WE THANK THE GENTLE LADY. 10:39:26 THE CHAIR RECOGNIZES THE GENTLEMAN FROM LOUISIANA, 10:39:29 MR. SCALISE. THANK YOU, MR. CHAIRMAN. 10:39:32 I SPENT LAST FRIDAY ON GRAND ISLE ASSESSING THE DAMAGE AND 10:39:36 TALKING TO LOCAL LEADERS WHO SAY THEY ARE STILL SPENDING MORE 10:39:38 TIME FIGHTING THE FEDERAL GOVERNMENT AND BP THAN THEY ARE 10:39:41 FIGHTING THE OIL. THAT IS UNACCEPTABLE. 10:39:44 YET INDICATIVE OF A SERIOUS LACK OF LEADERSHIP AND COORDINATION 10:39:47 COMING FROM BP AND THE OBAMA ADMINISTRATION. 10:39:51 FIRST AND FOREPOSE OUR FOCUS, BP'S FOCUS AND THE PRESIDENT'S 10:39:54 FOCUS NEEDS TO BE ON PLUGGING THE WELL AND USING EVERY 10:39:57 RESOURCE AVAILABLE TO PROTECT OUR FRAGILE MARSH AND SEAFOOD 10:40:03 BEDS. BP IS THE RESPONSIBLE PARTY AND 10:40:05 NEEDS TO BE HELD ACCOUNTABLE AND I INTEND TO DO EVERYTHING IN NYE 10:40:08 POWER TO MAKE SURE THEY PAY FOR THE FULL COST OF THIS DISASTER. 10:40:10 BUT IN ORDER TO IMPROVE THE INADEQUATE FEDERAL RESPONSE, WE 10:40:13 NEED A CLEAR CHAIN OF COMMAND THAT HOLDS PEOPLE ACCOUNTABLE. 10:40:16 THE OIL POLLUTION ACT OF 1990 STATES THE PRESIDENT SHALL 10:40:20 ENSURE EFFECTIVE AND IMMEDIATE REMOVAL OF A DISCHARGE. 10:40:23 ON NUMEROUS OCCASIONS THE PRESIDENT HAS SAID THAT FROM DAY 10:40:25 ONE HE'S BEEN OTT GROUND AND IN CHARGE BUT IF THAT'S THE CASE, 10:40:28 WHERE WAS THE PRESIDENT WHEN STATE AND LOCAL OFFICIALS WAITED 10:40:31 NEARLY A MONTH FOR APPROVAL ON A PLAN TO CONSTRUCT SAND BERMS TO 10:40:34 PROTECT OUR VALUABLE MARSH AND PREVENT AT LEAST A DOZEN 10:40:38 PELICANS FROM DYING? AND WHY DO BOATS CONTINUE TO SIT 10:40:40 IDLE AT THE DOCKS WHEN FISHERMEN CONSTANTLY HAVING TO SEEK BP'S 10:40:44 APPROVAL TO GET BOOM OR CLEAN UP OUR BEACHES? 10:40:46 THE DELAY OF THE BERM PLAN IS A PRIME EXAMPLE OF THE INCOMPETENT 10:40:50 RESPONSE TO THIS DISASTER. WHILE THE ADMINISTRATION DRAGS 10:40:52 THEIR FEET IN WASHINGTON, MILLIONS OF BARRELS OF OIL 10:40:55 INVADE OUR WETLANDS KILLING SCORES OF WILDLIFE AND 10:40:57 DEVASTATING LOUISIANA'S FISHERIES. 10:40:59 QUICK ACTION AND LEADERSHIP COULD HAVE EFFECTIVELY LIMITED 10:41:01 THE SCOPE OF THIS DISASTER. INSTEAD, THE PRESIDENT RESPONDED 10:41:04 BY MAKING EXCUSES AND SHIFTING BLAME. 10:41:07 FRANKLY, I AND PEOPLE THROUGHOUT LOUISIANA HAVE HAD ENOUGH AND 10:41:10 ARE SICK AND TIRED OF THE EXCUSES WE CONTINUE TO BE GIVEN 10:41:13 BY THE PRESIDENT AND BP. INSTEAD OF LEADING LIKE THE 10:41:16 COMMANDER IN CHIEF, THE PRESIDENT CONTINUES TO AGO LIKE 10:41:18 A SPECTATOR IN THE STANDS. TO ADD INSULT TO INJURY, THE 10:41:21 PRESIDENT'S NOW IMPOSED A SIX-MONTH BAN ON DEEP WATER 10:41:25 DRILLING. MAKE NO MISTAKE IMPLEMENTING 10:41:27 THIS IS LIKE TAKING A JACK HAMMER TO THE BEDROCK OF THE 10:41:30 LOUISIANA ECONOMY. THIS DEVASTATING BAN WILL COST 10:41:32 MY STATE ALONE AT LEAST 40,000 JOBS AND WILL LEAVE OUR NATION 10:41:35 MORE DEPENDENT ON MIDDLE EASTERN OIL COUNTRIES THAT DON'T LIKE 10:41:39 US. WE MUST FIGURE OUT WHAT WENT 10:41:40 WRONG TO PREVENT THIS TYPE OF DISASTER FROM HAPPENING AGAIN IN 10:41:43 THE FUTURE BUT THE PRESIDENT IS NOW EXPLOITING OUR DISASTER AS A 10:41:46 POLITICAL OPPORTUNITY TO ADVANCE HIS RADICAL AGENDA THAT WILL 10:41:50 KILL MORE AMERICAN JOBS. WE NEED ANSWERS AND WE NEED 10:41:52 LEADERSHIP BY THE PRESIDENT, UNFORTUNATELY, WE HAVE NEITHER 10:41:55 AND LOUISIANA'S PEOPLE AND WILDLIFE ARE PAYING THE PRICE. 10:41:57 THANK YOU, MR. CHAIRMAN AND I YIELD BACK. 10:42:00 GREAT. THE GENTLEMAN'S TIME HAS 10:42:02 EXPIRED. THE CHAIR RECOGNIZES THE GENTLE 10:42:05 LADY FROM WISCONSIN, MISS BALDWIN. 10:42:07 THANK YOU, MR. CHAIRMAN AND THANK YOU FOR HOLDING THIS 10:42:10 HEARING TODAY AND CALLING THIS PANEL OF WITNESSES BEFORE US. 10:42:14 THE CATASTROPHE IN THE GULF HAS SHED NEW LIGHT ON THE OPERATIONS 10:42:17 OF THE OIL INDUSTRY. THE SAFETY AND SECURITY MEASURES 10:42:21 THAT THEY HAVE IN PLACE, THE DISASTER PLANS THEY MAINTAIN AND 10:42:24 THEIR EFFORTS TO MOVE US AWAY FROM OUR DEPENDENCE UPON OIL AND 10:42:29 TOWARDS DEVELOPING AND PROMOTING THE USE OF RENEWABLE ENERGY 10:42:32 SOURCES. AS HAS BEEN NOTED, THE COMPANIES 10:42:35 REPRESENTED BEFORE US TODAY HAVE PRODUCED RECORD PROFITS IN 10:42:38 RECENT YEARS. LAST YEAR'S AGGREGATE PROFITS 10:42:41 FOR THE FIVE COMPANIES REPRESENTED HERE TODAY AMOUNT TO 10:42:46 $64 BILLION. UNFORTUNATELY, WHAT APPEARS TO 10:42:50 BE MISSING AMONGST THE DOLLAR SIGNS IS CORPORATE 10:42:54 RESPONSIBILITY. AN OBLIGATION TO OPERATE IN AN 10:42:57 E ENVIRONMENTALLY AND SOCIALLY 10:42:59 RESPONSIBLE MANNER TO PROVIDE SAFE WORKING ENVIRONMENTS, TO BE 10:43:02 GOOD NEIGHBORS AND TO REDUCE ENVIRONMENTAL IMPACTS. 10:43:06 GENERALLY COMPANIES CLAIM THAT STEWARDSHIP IS PART OF THEIR 10:43:10 PHILOSOPHY. I THINK EACH OF THE COMPANIES 10:43:13 REPRESENTED HERE TODAY HAVE MADE THAT REPRESENTATION. 10:43:16 YET, WHAT WE ARE BEGINNING TO FIND AS THIS COMMITTEE AND ITS 10:43:19 OTHER SUBCOMMITTEES INVESTIGATE THIS DISASTER IS THAT RATHER 10:43:23 THAN CORPORATE RESPONSIBILITY, WE MAY HAVE BEFORE US A CULTURE 10:43:26 OF CORPORATE IRRESPONSIBILITY. WE KNOW THAT THE RESULTS OF 10:43:31 LETTING COMPANIES OPERATE UNDER WEAK REGULATION, THEY BEGIN TO 10:43:36 BELIEVE THAT THEY ARE ABOVE THE LAW, THEY IGNORE WARNING SIGNS, 10:43:40 THEY SHORTCUT PROPER PROCEDURES. THEY FAIL TO PROPERLY PAN FOR A 10:43:44 DISASTER AND THEY PUT PROFITS ABOVE ALL ELSE. 10:43:47 YOU KNOW, A LOT OF WHAT I'M OBSERVING IN THIS SECTOR COULD 10:43:51 JUST AS WELL HAVE BEEN SAID ABOUT WHAT WE SAW ON WALL STREET 10:43:54 WITH THE FINANCIAL COLLAPSE IN THE LAST COUPLE OF YEARS. 10:43:58 MR. CHAIRMAN, GOVERNMENT AND INDUSTRY ALL HAVE A ROLE TO PLAY 10:44:02 IN PREVENTING FUTURE ENVIRONMENTAL AND ECONOMIC 10:44:06 DISASTERS AND AS LAWMAKERS, WE HAVE A RESPONSIBILITY TO OUR 10:44:10 CONSTITUENTS, OUR NATION, TO THOSE WHO HAVE LOST JOBS, 10:44:13 PENSIONS AND HEALTH CARE, THOSE WHO HAVE LOST THEIR LIVES TO PUT 10:44:16 AN END TO THIS RECKLESSNESS AND TO HOLD BAD ARCS ACCOUNTABLE. 10:44:19 I LOOK FORWARD TO HEARING FROM OUR WITNESSES ABOUT THE ROLES 10:44:23 THEY SEE THEIR COMPANIES AND THE GOVERNMENT PLAYING IN ENSURING 10:44:26 FUTURE DISASTERS ARE PREVENTED. I YIELD BACK THE BALANCE OF PIE 10:44:30 TIME. WE THANK THE GENTLE LADY. 10:44:32 THE CHAIR RECOGNIZES THE GENTLEMAN FROM ARKANSAS, 10:44:36 MR. ROSS. THANK YOU, MR. CHAIRMAN, FOR 10:44:44 HOLDING TODAY'S HEARING TO DISCUSS THE SAFETY AND SECURITY 10:44:48 OF CURRENT OFFSHORE DRILLING PRACTICES AND THE FUTURE OF 10:44:52 ENERGY PRODUCTION IN OUR NATION. IN THE WAKE OF THE WORST OIL 10:44:57 SPILL IN OUR NATION'S HISTORY, WE MUST NOW LEARN FROM THIS 10:45:01 DISASTER AND RE-EVALUATE OUR OPERATING METHODS AND EXAMINE 10:45:04 HOW OIL WILL BE A PART OF AMERICA'S FUTURE ENERGY POLICY. 10:45:09 AS OIL PRICES AND OIL COMPANY PROFITS HAVE INCREASED 10:45:13 DRAMATICALLY OVER THE LAST DECADE, SO HAS OUR NATION'S 10:45:17 DEPENDENCE ON FOREIGN OIL WITH THE U.S. IMPORTING APPROXIMATELY 10:45:22 52% OF THE OIL IT CONSUMED LAST YEAR. 10:45:25 WHILE I BELIEVE THAT OUR POLICIES MUST BE BROAD ENOUGH TO 10:45:28 CREATE ENERGY FROM A VARIETY OF DOMESTIC SOURCES INCLUDING 10:45:33 DOMESTIC OIL AND NATURAL GAS, I ALSO RECOGNIZE THE IMPORTANCE OF 10:45:36 THOUGHTFUL INVESTMENTS IN BIOFUELS, NUCLEAR, HYDRO POWER, 10:45:40 WIND, SOLAR AND CLEAN COAL TECHNOLOGY. 10:45:44 ON DAY 57 OF THIS DISASTER WITH NO END IN SIGHT, I AM HOPEFUL 10:45:49 THAT THE FIVE COMPANIES TESTIFYING TODAY CAN INFORM US 10:45:53 OF WHAT WENT WRONG, HOW THIS TRAGEDY COULD HAVE BEEN 10:45:57 PREVENTED AND HOW THE AMERICAN PEOPLE CAN HAVE ASSURANCE THAT 10:46:02 THIS WILL NEVER HAPPEN AGAIN. I BELIEVE THE ADMINISTRATION AND 10:46:07 OUR GOVERNMENT MUST DO MORE TO HOLD THESE COMPANIES ACCOUNTABLE 10:46:11 FOR THEIR DRILLING PRACTICES AND ENSURE THE MOST ADVANCED 10:46:15 TECHNOLOGIES AND SAFETY PROCEDURES ARE IN PLACE. 10:46:19 ONCE AGAIN, MR. CHAIRMAN, THANK YOU FOR HOLDING THIS HEARING AND 10:46:22 I LOOK FORWARD TO TODAY'S DISCUSSION. 10:46:24 GREAT. WE THANK THE GENTLEMAN. 10:46:26 THE CHAIR RECOGNIZES THE GENTLEMAN FROM VERMONT, 10:46:29 MR. WELSH. IT'S ABSOLUTELY OUTRAGEOUS 10:46:34 THAT WE ARE HERE TODAY. WHAT HAPPENED IN THE GULF WAS 10:46:38 SOMETHING THAT BP ASSURED US WOULD NEVER EVER HAPPEN, THAT IT 10:46:42 DID HAPPEN, IN FACT, WAS FORESEEABLE AND INEVITABLE AND 10:46:45 WHY WAS THAT? BECAUSE AT EVERY TURN, RECKLESS 10:46:49 DISREGARD OF SAFETY PROCEDURES, CORNER-CUTTING AND DECISIONS 10:46:52 THAT WERE MADE FOR MONEY, NOT SAFETY. 10:46:56 MR. CHAIRMAN, I WANT TO TAKE THIS OPPORTUNITY TO ADDRESS THE 10:46:59 CURRENT CRISIS. AS BP DEBATES WHETHER TO ISSUE A 10:47:02 SECOND QUARTER DIVIDEND ON THEIR ANNUAL $10 BILLION DIVIDEND, WE 10:47:07 HAVE PEOPLE IN THE GULF COAST WHO NEED COMPENSATION. 10:47:12 RESPONSIBLE COMPANIES PAY THEIR OBLIGATIONS THEN THEY PAY 10:47:16 DIVIDENDS. MANY IN CONGRESS HAVE JOINED ME 10:47:19 IN MY CALL ON BP TO DIRECT DIVIDEND FUNDS TO AN ESCROW 10:47:24 ACCOUNT TO BE AVAILABLE TO DEAL WITH THE HEARTACHE AND THE 10:47:27 DESTRUCTION OF LIVELIHOODS IN THE GULF COAST. 10:47:30 BP HAS AFFIRMED ITS INTENTION TO MAKE GOOD ON ITS OBLIGATIONS. 10:47:36 NOW WE ASK THAT BP TAKE FINANCIAL STEPS CONSISTENT WITH 10:47:40 ITS ASSURANCES. PRESIDENT OBAMA AND 54 MEMBERS 10:47:44 OF THE U.S. STAT HAVE CALLED ON THE ESTABLISHMENT OF AN 10:47:47 INDEPENDENTLY ADMINISTERED $20 BILLION ESCROW FUND. 10:47:51 THAT WOULD BE AVAILABLE TO COVER CLEANUP COSTS. 10:47:54 MR. McKAY, I FURTHER CALL ON BP TO DEPOSIT DIVIDEND FUNDS INTO 10:48:00 THIS ESCROW ACCOUNT SO THAT THE CITIZENS OF THE GULF AND THE 10:48:04 TAXPAYERS OF THIS COUNTRY CAN BE ASSURED THAT YOUR COMPANY WILL 10:48:07 MEET ITS OBL GATHS. I YIELD BACK THE BALANCE OF MY 10:48:09 TIME. WE THANK THE GENTLEMAN, THE 10:48:14 CHAIR RECOGNIZES THE GENTLEMAN FROM UTAH, MR. MATH THINKSON. 10:48:20 ALL RIGHT. THANK YOU, MR. CHAIRMAN. 10:48:23 FOR HOLDING THIS HEARING. I KNOW THE -- YOUR TESTIMONY 10:48:27 HIGHLIGHTS THE WAY IN WHICH YOUR COMPANY DOES BUSINESS AND HOW -- 10:48:32 ALSO WE'LL HEAR FROM BP HOW IT CONDUCTED ITSELF IN THE EVENTS 10:48:36 LEADING UP TO THE DEEPWATER HORIZON EXPLOSION. 10:48:39 YOU EACH WILL DISCUSS YOUR SAFETY RECORD AND LESSONS 10:48:42 LEARNED FROM PAST DISASTERS. I THINK IT'S FAIR TO SAY NONE OF 10:48:45 YOUR COMPANIES ARE IMMUNE FROM CRITICISM AND ACCIDENTS CAN 10:48:48 STRIKE ANY PLACE ANY TIME DESPITE THE SAFETY MEASURES YOU 10:48:51 WILL BE TOUTING TODAY. AS MENTIONED FRIDAY NIGHT THE 10:48:55 CHEVRON PIPELINE BEGAN LEAKING IN SALT LAKE CITY AND 10:48:58 BEFORE BEING SHUT OFF LEAKED SOMEWHERE AROUND 33,000 GALLONS 10:49:03 OFOIL IN NORTHERN SALT LAKE CITY WHICH LEADS INTO THE JORDAN 10:49:06 RIVER WHICH EMPTIES INTO THE GREAT SALT LAKE. 10:49:09 THE DATE SALT LAKE IS ONE OF THE MOST IMPORTANT ESTUARIES FOR 10:49:13 MIGRATING BIRDS IN THE WEST. FORTUNATELY CURRENT INFORMATION 10:49:15 INDICATES THAT OIL HAS NOT HIT THE GREAT SALT LAKE AND FURTHER 10:49:18 IT'S FORTUNATE THAT THE DRINKING WATER SUPPLY IS PROTECTED BY 10:49:21 MOST ACCOUNTS THE OIL HAS BEEN CON TAPED. 10:49:24 NOW, 33,000 GALLONS IS A PITTANCE WHEN COMPARED TO THE 10:49:31 IMPACT ON MY CITY'S ECONOMY WILL NOT BE ANYWHERE NEAR WHAT IT IS 10:49:34 FOR THE GULF COAST RESIDENTS. IT FURTHER HIGHLIGHTS THE 10:49:38 IMPORTANT OF FEDERAL GOVERNMENT OVERSIGHT OF OUR ENERGY 10:49:40 INFRASTRUCTURE. THIS PARTICULAR CHEVRON PIPELINE 10:49:44 WAS LAST INSPECTED IN 2008. WE NEED TO FIND OUT WHAT THE 10:49:47 RESULTS WERE OF THAT INSPECTION AND IF ANYTHING IN THAT 10:49:51 INSPECTION GAVE ANY INDICATION OF THE POTENTIAL OF THIS PROBLEM 10:49:53 THAT OCCURRED THIS PAST WEEKEND. RIGHT NOW THE PURPORTED CAUSE OF 10:49:58 THE SPILL IS A BRANCH FELL DURING A HEAVY WINDSTORM AND 10:50:01 CREATED AN ELECTRIC ARC WHICH DROVE A FENCE TO THE JUST INCHEM 10:50:07 THE PIPELINE. IT RAISES QUESTIONS, WHY WAS THE 10:50:10 FENCE POST WITHIN INCHES OF THE PIPELINE. 10:50:12 WHEN THE ELECTRICITY ARCED THROUGH THE FENCE POST, IT 10:50:15 BURNED A HOLE THROUGH THE PIPELINE. 10:50:17 THAT IS THE LATEST EXPLANATION FOR WHAT HAPPENED. 10:50:19 WE NEED ANSWERS TO THAT THE LAST THING WE NEED ANSWERS TO IS 10:50:22 APPARENTLY THE MONITORING EQUIPMENT ON THE PIPELINE FAILED 10:50:25 TO INDICATE THERE WAS A LEAK AND THE FIRST TIME CHEVRON WAS AWARE 10:50:29 OF THE LEAK IS WHETHER THE SALT LAKE CITY FIRE DEPARTMENT CALLED 10:50:31 THEM THE NEXT DAY. SO NUMBER ONE, WHAT WAS THE 10:50:33 RESULT OF THE INSPECTION OF 2008. 10:50:35 MUST BE TWO, WHY WAS A FENCE POST DRILLED WITH INCHES OF 10:50:38 PIPELINE. NUMBER THREE, WHY DID THE 10:50:41 MONITORING EQUIPMENT FAIL IN TERMS OF WHY THE LEAK HAPPENED? 10:50:43 I'M PLANNING OP WORKING WITH THE DEPARTMENT OF TRANSPORTATION, 10:50:47 THE EPA, LOOKING AT THESE ISSUES TO FIND OUT WHY THIS HAND LASTLY 10:50:51 HOW WE DEFINE WHAT CLEAN IS IN TERMS OF THE CLEANUP. 10:50:54 I WILL ACKNOWLEDGE CHEVRON HAS TAKEN RESPONSIBILITY AND WILL 10:50:58 PAY FOR THE CLEANUP IN SALT LAKE. 10:50:59 I APPRECIATE THAT AGGRESSIVE POSITION THEY'VE TAKEN TO REACH 10:51:02 OUT TO THE RESIDENTS OF SALT LAKE CITY. 10:51:05 MR. CHAIRMAN, I'M GLAD YOU BEAR WITH ME, I THOUGHT THIS INCIDENT 10:51:08 OF THE PAST WEEKEND WAS WORTH MENTIONING IN THIS HEARING TO 10:51:12 SHOW THAT ISSUES CAN TOUCH ANYWHERE ALONG THE SUPPLY CHAIN. 10:51:14 IT'S IMPORTANT THAT WE NEED THAT IN MIND, I YIELD BACK. 10:51:19 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:51:26 GENTLEMAN FROM NORTH CAROLINA, MR. BUTTERFIELD. 10:51:28 THANK YOU VERY MUCH, MR. CHAIRMAN. 10:51:30 WE'RE ALL SAYING THE SAME THING, HOW IS HAVE DONE MORE TO PREVENT 10:51:33 THIS UNTHINKABLE DISASTER. EVEN THOUGH SOME SAY SUGGEST 10:51:38 THAT MY HOME STATE OF NORTH CAROLINA IS NOT IN HARM'S WAY, 10:51:42 THE FACT IS WE MAY BE. WE ARE NOT ONLY ANGRY ABOUT THIS 10:51:46 BILL BUT WE ARE SCARED TO DEATH THAT OUR COASTAL AREA WILL BE 10:51:50 AFFECTED. OVER THE PAST 30 YEAR, THE OIL 10:51:52 INDUSTRY HAS USED SOME OF THE WORLD'S MOST ADVANCED 10:51:56 TECHNOLOGIES TO DRILL IN DEEPER WATERS. 10:52:00 THE BROAD INGENUITY THAT ALLOWED THEM TO DRILL MILES UNDER THE 10:52:04 OCEAN'S FLOOR HAS OUTPACED COMMITMENT TO SAFETY AND THAT IS 10:52:08 UNACCEPTABLE. BP IGNORED A VERY SIMPLE RULE. 10:52:10 IF YOU CAN'T PLUG THE HOLE DON'T DRILL THE WELL. 10:52:14 WHAT CONCERNS ME, MR. CHAIRMAN SRNGS WHETHER BP'S MISTAKES ARE 10:52:18 UNIQUE TO THEM OR ARE INDICATIVE OF INDUSTRY-WIDE PRACTICES. 10:52:23 REGARDLESS, WE MUST NOW ENSURE THAT ADEQUATE SAFETY PRACTICES 10:52:26 AND CLEANUP PLANS ARE FIRMLY IN PLACE. 10:52:29 IT WAS ASSUMED THAT THE THIS TYPE OF DISASTER WOULD NEVER 10:52:33 HAPPEN BUT IT DID. I HOPE THIS TRAGIC EVENT 10:52:35 ILLUSTRATES THE NEED FOR ACTION. MANY OF US ON THIS SIDE OF THE 10:52:39 AISLE HAVE ADVOCATED A FUNDAMENTAL OVERHAUL TO OUR 10:52:43 ENERGY STRESSING A BROAD PORTFOLIO OF ENERGY SOURCES AND 10:52:47 ENERGY FISH SICHLT THIS OVERHAUL CAN BE MARKET DRIF FN WE APPLY A 10:52:51 REAL COST TO CARBON AND ITS EFFECTS ON OUR ECONOMY, OUR 10:52:55 QUALITY OF LIFE AND OUR ENVIRONMENT. 10:52:58 THIS DISASTER DEMONSTRATES THAT WE CANNOT DELAY ENACTING 10:53:02 COMPREHENSIVE ENERGY AND CLIMATE CHANGE LEGISLATION TO DIMINISH 10:53:05 OUR DEPENDENCE ON OIL BOTH FOREIGN AND DOMESTIC. 10:53:10 TODAY'S HEARING WILL PROVIDE UNAM BIGGOUS ANSWERS, I HOPE, ON 10:53:15 WHAT TO EXPECT IN THE DAYS, WEEKS AND YEARS TO COME. 10:53:18 FOR MILLIONS OF PEOPLE WHO FACE THIS NIGHTMARE, WE MUST DEMAND 10:53:24 TRANSPARENCY AND A CLEAR ASSESSMENT OF THE FUTURE. 10:53:27 I THANK THE WITNESSES FOR BEING WITH US TODAY AND LET ME JOIN MY 10:53:32 GOOD MR. MR. WELCH IN REQUESTING BP TO CONSENT TO AN ESCROW FUND 10:53:37 TO PROVIDE A MODEST REMEDY FOR THOSE WHO HAVE BEEN HARMED. 10:53:42 I SAY TO THE WITNESSES TODAY, PUT IT ON THE TABLE. 10:53:44 WE MUST KNOW IT OFF. THANK YOU, I YIELD BACK. 10:53:46 WE THANK THE GENTLEMAN. THE CHAIR RECOGNIZES THE 10:53:51 GENTLEMAN FROM TEXAS, MR. GONZALES. 10:53:54 THANK YOU VERY MUCH, MR. CHAIRMAN. 10:53:56 I'LL BE VERY BRECHLT I USUALLY DON'T MAKE OPENING STATEMENTS 10:53:58 BUT I THINK I CAN READ THE MINDS OF THE WITNESSES, THEY'RE SAYING 10:54:03 ALL THESE WITNESS ARE STATING THE OBVIOUS IN THE POLITICAL AND 10:54:06 YOU'RE ABSOLUTELY RIGHT AND WHEN WE GET INTO THE QUESTIONING, IT 10:54:10 WILL BE A WHOLE DIFFERENT WORLD. AS FAR AS THE POLITICAL, TO BE 10:54:12 HONEST WITH YOU, ALL THOSE WHO ARE CLAIMING THE PRESIDENT FOR 10:54:16 NOT PETING WITH THE BP CEO IMMEDIATELY. 10:54:20 HAD THE PRESIDENT DONE THAT, TODAY'S STATEMENT WOULD BE WHAT 10:54:26 WAS THE PRESIDENT WITHOUT FIRST VISITING THE AREAS AND MEETING 10:54:29 WITH THE COAST GUARD AND FIRST SPOERNSD. 10:54:31 THAT'S WHAT WOULD HAVE HAPPENED. WHAT I'M HOPING WE'RE GOING TO 10:54:35 ACHIEVE TODAY IS TO HEAR FROM THESE WITNESS, WHAT ARE THE 10:54:38 ENERGY NEEDS OF AMERICA? HOW ARE TRANSPORTATION FUELS 10:54:41 OBVIOUSLY BASED ON OIL? AND WHAT WE'RE GOING DO TO 10:54:45 MOVING FORWARD. THE DIFFERENCE BETWEEN DEEP AND 10:54:48 SHALLOW WATER EXPLORATION AND DRILLING AND HOW WE MEET THE 10:54:51 NEED NEEDS OF OUR PUBLIC, OUR CONSTITUENTS, STENSON OF THIS 10:54:56 COUNTRY AND THE FACTS THAT MEETING THOSE NEEDS IN THE 10:54:59 INTERIM AS WE TRANSITION TO SOMETHING DIFFERENT CAN BE DONE 10:55:04 A IN A POSSIBLE FASHION. WE CAN MEET THE NEED RESPONSIBLY 10:55:06 AND THEY'RE NOT FUTURELY EXCLUSIVE. 10:55:09 THANK YOU VERY MUCH, I YIELD BACK. 10:55:11 WE THANK THE GENTLEMAN FROM TEXAS AND THAT COMPLETES THE 10:55:16 PERIOD FOR OPENING STATEMENTS FROM ALL OF THE MEMBERS OF THE 10:55:24 SUBCOMMITTEE. THE CHAIR DOES NOT SEE ANY OTHER 10:55:28 MEMBERS. I WILL FIRST MAKES -- BEFORE WE 10:55:31 GO TO THE WITNESSES, I WILL FIRST MAKE A UNANIMOUS CONSENT 10:55:36 THAT CHAIRMAN STUPAK AND REPRESENTATIVES BLACKBURN, 10:55:42 CASTOR, WIENER AND JACKSON LEE 10:55:04 A IN A POSSIBLE FASHION. WE CAN MEET THE NEED RESPONSIBLY 10:55:06 AND THEY'RE NOT FUTURELY EXCLUSIVE. 10:55:09 THANK YOU VERY MUCH, I YIELD BACK. 10:55:11 WE THANK THE GENTLEMAN FROM TEXAS AND THAT COMPLETES THE 10:55:16 PERIOD FOR OPENING STATEMENTS FROM ALL OF THE MEMBERS OF THE 10:55:24 SUBCOMMITTEE. THE CHAIR DOES NOT SEE ANY OTHER 10:55:28 MEMBERS. I WILL FIRST MAKES -- BEFORE WE 10:55:31 GO TO THE WITNESSES, I WILL FIRST MAKE A UNANIMOUS CONSENT 10:55:36 THAT CHAIRMAN STUPAK AND REPRESENTATIVES BLACKBURN, 10:55:42 CASTOR, WIENER AND JACKSON LEE BE PERMITTED TO QUESTION WITNESS 10:55:46 FOLLOWING QUESTIONS BY MEMBERS OF THE SUBCOMMITTEE. 10:55:52 WITHOUT OBJECTION, THE CHAIR HEARS NO OBJECTION FROM ANY OF 10:55:57 THE MEMBERS OF THE SUBCOMMITTEE. SO IT IS SO ORDERED. 10:56:07 IT IS THE POLICY TO SWEAR YOU IN BEFORE YOU TESTIFY. 10:56:13 SO I WOULD ASK EACH OF YOU TO PLEASE RISE AND RAISE YOUR RIGHT 10:56:21 HANDS. DO YOU EACH SOLEMNLY SWEAR TO 10:56:23 TELL THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH? 10:56:30 LET THE RECORD REFLECT THAT EACH OF THE WITNESSES RESPONDED IN 10:56:34 THE AFFIRMATIVE. NOW, WE TURN TO OUR FIRST 10:56:42 WITNESS, MR. REX TILLERSON. MR. TILLERSON IS THE CHAIRMAN 10:56:46 AND THE CHIEF EXECUTIVE OFFICER OF THE EXXONMOBIL CORPORATION. 10:56:52 HE IS ALSO A MEMBER OF THE BUSINESS ROUNDTABLE AND THE 10:56:56 AMERICAN PETROLEUM INSTITUTE. WE WELCOME YOU, MR. TILLERSON, 10:57:01 PLEASE BEGIN WHEN YOU ARE READY. THANK YOU, CHAIRMAN MARKEY. 10:57:05 RANKING MEMBER UPTON, MEMBERS OF THE SUBCOMMITTEE. 10:57:08 OF THE MANY ISSUES ON THE ENERGY AGENDA, NONE IS MORE PRESSING 10:57:12 THAN THE ACCIDENT AND THE SPILL UNFOLDING IN THE GULF OF MEX 10:57:16 KOEMPLT AS SOMEONE WHO HAS SPENT HIS ENTIRE CAREER IN THE ENERGY 10:57:21 INDUSTRY, IT TRULY IS DEEPLY SANDING TO SEE THE LOSS OF LIFE, 10:57:26 THE DAMAGE TO ENVIRONMENTAL SENSITIVE AREAS, THE EFFECT ON 10:57:30 THE ECONOMIC LIVELIHOOD HDS AND THE LOSS OF THE PUBLIC INTEREST 10:57:33 IN THE ENERGY INDUSTRY THAT HAS RESULTED. 10:57:37 CLEARLY THIS INCIDENT AND RESPONSE WILL HAVE IMPORTANT 10:57:40 CONSEQUENCES FOR THE ENVIRONMENT, FOR THE CITIZENS 10:57:41 AND BUSINESSES OF THE GULF COAST AND FOR OUR NATION'S ENERGY 10:57:47 POLICY. IT IS ESSENTIAL THAT WE 10:57:48 UNDERSTAND THE EVENTS THAT LED TO THIS UNPRECEDENTED ACCIDENT. 10:57:54 AND TAKE CORRESPONDING STEPS TO FURTHER REDUCE THE LIKELIHOOD OF 10:57:57 A SIMILAR EVENT EVER OCCURRING AGAIN. 10:57:59 AN EXPERT IMPARTIAL AND THOROUGH APPROACH TO UNDERSTANDING WHAT 10:58:03 HAPPENED IS CRUCIAL BECAUSE THIS INCIDENT REPRESENTS A DRAMATIC 10:58:07 DEPARTURE FROM THE INDUSTRY NORM IN DEEP WATER DRILLING. 10:58:11 UNDERSTANDING THE FACTS SURROUNDING THIS INCIDENT IS 10:58:13 CRITICAL TO INFORMING THE LONG-TERM POLICY AND THE 10:58:18 OPERATIONAL RESPONSE. WE ARE EAGER TO LEARN WHAT 10:58:20 OCCURRED AT THIS WELL THAT DID NOT OCCUR AT THE OTHER 14,000 10:58:26 DEEP WATER WELLS THAT HAVE BEEN SUCCESSFULLY DRILLED AROUND THE 10:58:30 WORLD STMPLT CRITICAL WE UNDERSTAND EXACTLY WHAT HAPPENED 10:58:33 IN THIS CASE. BOTH THE DRILL WELL DESIGN AND 10:58:37 OPERATING PROCEDURES AND THE EXECUTION OF THE DRILLING PLANS 10:58:40 WHICH LED TO SUCH SEVERE CONSEQUENCES. 10:58:43 WE NEED TO KNOW IF THE LEVEL OF RISK TAKEN WENT BEYOND THE 10:58:46 INDUSTRY NORMS. BASED ON THE INDUSTRY'S 10:58:51 EXTENSIVE EXPERIENCE, WHAT WE DO KNOW IS WHEN YOU PROPERLY DESIGN 10:58:55 WELLS FOR THE RANGE OF RISK ANTICIPATED, FOLLOW ESTABLISHED 10:59:00 PROCEDURES, BUILD IN LAYERS OF REDUNDANCY, PROPERLY INSPECT AND 11:00:00 REX TILLERSON: IN THE EARLY 1990s WE BEGAN DEVELOPMENT OF OUR OPERATIONS 11:00:06 INTEGRITY MANAGEMENT SYSTEM, A RIGOROUS REGIME OF 11 SEPARATE 11:00:10 ELEMENTS THAT MEASURES AND MITIGATES SAFETY, SECURITY, 11:00:13 HEALTH AND ENVIRONMENTAL RISK. IT IS SIGNIFICANT THAT THE FIRST 11:00:17 ELEMENT OF OIMS IS MANAGEMENT LEADERSHIP AND ACCOUNTABILITY. 11:00:23 THIS MANAGEMENT SYSTEM APPLIES TO EVERY OPERATION WE UNDERTAKE. 11:00:27 IT IS OUR COMMON GLOBAL LANGUAGE FOR SAFETY AND ACCOUNTABILITY 11:00:31 AND WHEN WE DO HAVE INCIDENTS, WE SEEK TO LEARN FROM THEM SO WE 11:00:36 CONTINUOUSLY IMPROVE OUR PERFORMANCE AND THIS SYSTEM. 11:00:39 IT IS SYSTEM WHICH REQUIRES INTERNAL AND EXTERNAL ASSESSMENT 11:00:43 OF EACH BUSINESS UNIT'S PROGRESS TOWARDS COMPLYING WITH ALL OF 11:00:47 THE 11 ELEMENTS. WITH RESPECT TO DRILLING, 11:00:51 EXXONMOBIL HAS DRILLED ALMOST 8,000 WELLS WORLDWIDE OVER THE 11:00:55 LAST TEN YEARS. OF THESE, 262 HAVE BEEN IN DEEP 11:01:04 WATER INCLUDING THE GULF OF MEXICO. 11:01:07 THE STANDARDS DICTATE OUR APPROACH TO DRILLING AS THEY DO 11:01:10 FOR ALL OF OUR OTHER OPERATIONS. WE HAVE DOCUMENTED STANDARDS FOR 11:01:15 EQUIPMENT AND WELL DESIGN. WE UTILIZE PROPRIETARY 11:01:18 TECHNOLOGY TO PREDICT PRESSURES AND MODEL RESOURCE FLOW AND WE 11:01:24 CAREFULLY ANALYZE THAT INFORMATION TO BOTH UNDERSTAND 11:01:26 AND REDUCE THE RISK. WE ENSURE EVERYONE ON BOARD THE 11:01:31 RIG CONTRACTORS INCLUDED KNOW THEIR ROLES AND RESPONSIBILITIES 11:01:36 AND THAT ALL OPERATIONS MUST BE IN COMPLIANCE WITH EXXONMOBIL'S 11:01:40 EXPECTATIONS AND STANDARDS. AND WE TEST THIS KNOWLEDGE 11:01:44 THROUGH REGULAR DRILLS AND EXERCISES. 11:01:47 STICKING TO THIS SYSTEM HAS REQUIRED TO US MAKE SOME 11:01:49 DIFFICULT DECISIONS. WE DO NOT PROCEED WITH 11:01:53 OPERATIONS IF WE CANNOT DO SO SAFELY. 11:01:56 THE AMERICAN PEOPLE HAVE SHOWN THEIR SUPPORT FOR DEEP WATER 11:01:59 DRILLING BUT THEY EXPECT IT TO BE DONE SAFELY AND IN AN 11:02:03 ENVIRONMENTALLY SENSITIVE WAY. THEY HAVE SUPPORTED IT BECAUSE 11:02:06 THEY UNDERSTAND IT IS IMPORTANT. IN THE GULF OF MEXICO IT 11:02:10 ACCOUNTS FOR ABOUT 24% OF U.S. OIL PRODUCTION. 11:02:14 OIL AND GAS ACTIVITY IN THE GULF INCLUDING DEEP WATER DRILLING 11:02:18 ACCOUNTS FOR APPROXIMATELY 170,000 DIRECT AND INDIRECT 11:02:26 JOBS. WORLDWIDE IT'S ESTIMATED TO 11:02:27 EQUAL IN A FEW YEARS THE ENTIRE PRODUCTION OF SAUDI ARABIA. 11:02:31 AND IT IS A VITAL PART OF AN INDUSTRY THAT SUPPORTS MORE THAN 11:02:37 9 MILLION FULL AND PART-TIME AMERICAN JOBS AND ADD $1 11:02:47 TRILLION TO OUR GROSS DOMESTIC PRODUCT. 11:02:48 WE CAN SECURE THIS TRUST IF WE TAKE THE TIME TO LEARN WHAT 11:02:51 HAPPENED AND DEVELOP OUR RESPONSE APPROPRIATELY TO ENSURE 11:02:55 THAT EVERY PARTICIPATE PANTS ACTS RESPONSIBLY, LEARNS THE 11:02:59 RIGHT LESS SCIENCE AND UPHOLDS THE HIGHEST STANDARDS. 11:03:01 THE AMERICAN PEOPLE DESERVE NOTHING LESS. 11:03:04 THANK YOU. WE THANK YOU, MR. TILLERSON. 11:03:07 OUR NEXT WITNESS IS MR. JOHN WATSON, MR. WATSON IS THE 11:03:12 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CHEVRON 11:03:19 CORPORATION. HE IS A DIRECTOR AND MEMBER OF 11:03:20 THE EXECUTIVE COMMITTEE OF THE AMERICAN PETROLEUM INSTITUTE AS 11:03:23 WELL AS A MEMBER OF THE NATIONAL PETROLEUM COUNCIL. 11:03:25 WE WELCOME YOU, MR. WATSON. THANK YOU, CHAIRMAN MARKEY. 11:03:29 IF YOU COULD TURN ON YOUR MICROPHONE AND MOVE IT IN A 11:03:33 LITTLE CLOSER, MR. WATSON. THANK YOU, MR. CHAIRMAN. 11:03:36 RANKING MEMBER, UPTON. AGAIN, JUST MOVE IT IN A 11:03:40 LITTLE BIT CLOSER. OKAY. 11:03:42 VERY GOOD. THANK YOU, MR. CHAIRMAN AND 11:03:45 RANKING MEMBER UPTON. MY NAME IS JOHN WATSON I DO LEAD 11:03:49 CHEVRON. AS WE MEET TODAY, THE TRAGEDY IN 11:03:52 THE GULF OF MEXICO DOES CONTINUE TO UNFOLD. 11:03:55 OUR THOUGHTS ARE WITH THE FAMILIES WHO LOST LOVED ONES. 11:04:00 WORKERS WHO WERE INJURED AND COMMUNITIES THAT ARE DEALING 11:04:05 WITH THE ECONOMIC AND ECOLOGICAL DAMAGE. 11:04:09 FOR CHEVRON, THIS TRAGEDY IS VERY PERSONAL. 11:04:12 OUR EMPLOYEES, NEW PEOPLE WHO DIED ON THE DEEP WATER HORIZON, 11:04:17 MORE THAN 13,000 CHEVRON EMPLOYEES LIVE AND WORK IN THE 11:04:21 GULF REGION, WE HAVE A VERY PERSONAL STAKE OPERATING SAFELY 11:04:26 BAUGH IT IS OUR HOME, TOO. FOR OUR INDUSTRY, THIS IS A 11:04:32 HUMBLING EXPERIENCE. THE AMERICAN PEOPLE EXPECT THAT 11:04:34 THE ENERGY WE NEED TO BE PRODUCED SAFELY AND RELIABLY AND 11:04:39 THAT DID NOT HAPPEN HERE. THIS MORNING, I'LL FOCUS MY 11:04:43 COMMENTS ON WHAT CHEVRON DID IMMEDIATELY FOLLOWING THE 11:04:46 ACCIDENT AND WHY I BELIEVE DEEP WATER DEVELOPMENT CAN BE DONE 11:04:49 SAFELY OF AFTER THE DEEP WATER HORIZON ACCIDENT, CHEVRON 11:04:52 PROVIDED FULL SUPPORT TO THE RESPONSE. 11:04:54 WE DEPLOYED EXPERTS TO ASSIST BP AND ADVISE THE COAST GRD ON 11:04:58 MARINE TRANSPORTATION PLANNING. WE'VE ALSO BEEN WORK WITH 11:05:02 COMMUNITIES AND OKAY, ACROSS THE GULF REGION. 11:05:05 WE HELPED LEAD THE JOINT INDUSTRY TASK FORCE WHICH MADE 11:05:08 RECOMMENDATIONS TO THE DEPARTMENT OF THE INTERIOR TO 11:05:10 RAISE INDUSTRY STANDARDS TO AN EVEN HIGHER LEVEL. 11:05:13 A MAJORITY OF THESE STANDARDS ARE ALREADY EMBEDDED IN 11:05:17 CHEVRON'S OPERATIONS. WITHIN HOURS, CHEVRON HELD 11:05:21 SAFETY STANDDOWNS ON RIGS AROUND THE WORLD TO REVIEW DRILLING 11:05:24 PROCESSES AND PROCEDURES. WE EXAMINED OUR BLOWOUT 11:05:28 CONTINGENCY PLANS AND SCRUTINIZED OUR DRILLING AND 11:05:30 COMPLETION POLICIES. WE ALSO STRESS THE 11:05:33 RESPONSIBILITY THAT EVERY SINGLE CHEVRON EMPLOYEE AND CONTRACTOR 11:05:37 HAS AND THAT'S THE AUTHORITY TO STOP WORK IMMEDIATELY IF THEY 11:05:41 SEE ANYTHING UNSAFE. AT CHEVRON, WE REWARD PEOPLE WHO 11:05:46 EXERCISE THIS AUTHORITY. AT CHEVRON, ONE GOAL OVERRIDES 11:05:51 ALL OTHERS, MAKING SURE EVERYONE GOES HOME SAFE EVERY DAY. 11:05:55 WE HAVE MULTIPLE SYSTEMS TO PREVENT A TRAGEDY LIKE THE DEEP 11:05:59 WATER HORIZON. OUR DRILLING POLICIES AND 11:06:02 PROCEDURES ARE RIGOROUS. WE REQUIRE CONTINUOUS TRAINING, 11:06:06 WE CERTIFY OUR DRILLING PERSONNEL TO ENSURE THEY ARE 11:06:09 QUALIFIED TO MANAGE UNUSUAL CIRCUMSTANCES AND WE VERIFY THE 11:06:13 CONTRACTORS HAVE THE SKILLS TO EXECUTE WELL CONTROL. 11:06:17 OUR SBERNL REVIEW CONFIRMED WHAT OUR REGULAR AUDITS HAVE TOLD US, 11:06:22 CHEVRON'S DEEP WATER DRILLING AND WELL CONTROL PRACTICES ARE 11:06:25 SAFE AND ENVIRONMENTALLY SOUND. SINCE OUR FIRST YEAR OF DEEP 11:06:29 WATER EXPLORATION IN 1987, WE HAVE DRILLED DEEP WATER WELLS 11:06:36 AROUND THE WORLD BUT WE KNOW THAT WE CAN ALWAYS LEARN AND 11:06:39 IMPROVE. SO WE WELCOME ANY NEW STANDARDS 11:06:41 AND SAFEGUARDS THAT IMPROVE SAFETY AND PREVENT FUTURE 11:06:46 ACCIDENTS. TO THAT END, WE MUST ACT QUICKLY 11:06:49 TO IMPLEMENT THE RECOMMENDATION MADE BY THE JOINT INDUSTRY TASK 11:06:53 FORCE TO ENSURE THAT ALL COMPANIES ARE RATE OPERATING 11:06:55 WITH THE SAME HIGH STANDARDS OF SAFETY AND RELIABILITY. 11:06:59 CHEVRON WILL ACCEPT ANY NEW STANDARD AND ADOPT NEW STANDARDS 11:07:02 THAT DOESN'T ALREADY APPLY. WE MUST ALSO EXPEDITE THE WORK 11:07:06 OF TWO NEW INDUSTRY TASK FORCES, ONE FOCUSED ON SUB SEA WELL 11:07:10 CONTROL AND THE OTHER ON SPILL RESPONSE AND CLEANUP. 11:07:15 WE ALSO COMMITTED TO WORK WITH THE PRESIDENT'S INDEPENDENT 11:07:18 COMMISSION. WE'LL CONTRIBUTE TO IMPROVE 11:07:20 SAFETY IN EVERY WAY THAT WE CAN. NOW WE MUST RESTORE THE 11:07:25 COUNTRY'S CONFIDENCE IN DEEP WATER DRILLING. 11:07:27 I BELIEVE THE INDEPENDENT INVESTIGATION WILL SHOW THAT 11:07:30 THIS TRAGEDY WAS INDEED PREVENTIBLE. 11:07:33 THIS IS NOT A TRADE-OFF OF ENERGY FOR SAFETY. 11:07:36 I STRONGLY BELIEVE THAT RESPONSIBLE DEEP WATER 11:07:40 DEVELOPMENT MUST CONTINUE. AMERICA NEEDS THE ENERGY AND WE 11:07:42 CAN PRODUCE THAT ENERGY SAFELY. OUR NATION WOULD LOSE MORE THAN 11:07:47 IT HAS ALREADY LOST IF THIS ACCIDENT BECOMES THE BASIS FOR 11:07:50 REVERSING THE MANY BENEFITS OF OFFSHORE DEVELOPMENT. 11:07:55 TODAY PRODUCTION IN THE GULF OF MEXICO ACCOUNTS FOR 14% OF OUR 11:07:59 NATURAL GAS, 12% OF OUR DOMESTIC OIL SUPPLY. 11:08:03 GULF OF MEXICO PRODUCTION IS ALSO A FOUNDATION OF LOCAL 11:08:07 ECONOMIES, PROVIDING SIGNIFICANT JOB, ECONOMIC DEVELOPMENT AND 11:08:11 REVENUE. THE DEEP WATER HORIZON TRAGEDY 11:08:14 REINFORCES THAT ALL COMPANIES MUST OPERATE WITH THE SAME HIGH 11:08:17 STANDARDS OF SAFETY AND RELIABILITY. 11:08:20 IT'S CLEAR THAT FAILURE TO DO SO DOES HAVE DIRE CONSEQUENCES. 11:08:24 MR. CHAIRMAN, WE MUST LEARN FROM THIS ACCIDENT, WE MUST MAKE SURE 11:08:27 IT NEVER HAPPENS AGAIN. MY COMPLIMENT TO YOU IS THAT 11:08:30 CHEVRON WILL DO EVERYTHING IN ITS POWER TO SEE THAT IT DIDN'T. 11:08:34 THANK YOU. THANK YOU, MR. WATSON. 11:08:36 OUR NEXT WITNESS IS MR. JAMES MULVA, THE CHAIRMAN AND CHIEF 11:08:44 EXECUTIVE OFFICER OF THE CONOCO-PHILLIPS COMPANY, HE IS 11:08:49 ALSO A MEMBER OF THE NATIONAL PET TROEM YUM COUNCIL AND HAS 11:08:52 SERVED AS CHAIRMAN OF THE NATIONAL PETROLEUM INSTITUTE. 11:08:55 WE WELCOME YOU, WHENEVER YOU FEEL COMFORTABLE, MR. PLEASE 11:09:00 BEGIN. THANK YOU, CHAIRMAN MARKEY, 11:09:04 RANKING MEMBER UPTON AND COMMITTEE MEMBERS, THANK YOU FOR 11:09:06 THE OPPORTUNITY TO APPEAR BEFORE YOU THIS MORNING. 11:09:09 ALL OF US AT CONOCO-PHILLIPS EXTEND OUR CONDOLENCES TO THE 11:09:15 FAMILY AND FRIENDS OF THOSE LOST ON THE DEEP WATER HORIZON. 11:09:21 THOUGHTS AND PRAYERS OF THOSE IMPACT BY THIS SPILL. 11:09:23 THE DEEP WATER HORIZON SINCE A MATTER OF NATIONAL YOU ARE JEN 11:09:27 SICHLT AS AMERICANS WE HAVE A LONG HISTORY OF JOINING TOGETHER 11:09:30 IN TIMES OF NEED. WE THEN WORK TO FIND SOLUTIONS 11:09:33 THAT ARE IN OUR NATIONAL INTEREST. 11:09:37 SO IN THAT SPIRIT AND IN SUPPORT OF THE PEOPLE ALONG THE GULF 11:09:41 COAST WHOSE LIVES AND LIVELIHOODS HAVE BEEN AFFECTED 11:09:45 CONOCO-PHILLIPS IS PROVIDING MANPOWER, MATERIAL AND RESOURCES 11:09:49 TO RESPONDERS AND THE EMERGENCY PERSONNEL THERE. 11:09:53 WE WILL DO SO UNTIL THE SPILL IS CONTAINED AND IN THE AFFECTED 11:09:56 AREAS HAVE BEEN RESTORED. WE ARE NOT IN A POSITION TO KNOW 11:10:02 ABOUT WHAT WENT WRONG AT THE DEEP WATER HORIZON. 11:10:05 THE COMPANIES INVOLVED AND THE REGULATORS CERTAINLY WILL DO 11:10:09 THAT. BUT AS AN INDUSTRY, WE MUST 11:10:11 COMMIT OURSELVES TO LEARNING LESSONS FROM THIS TRAGEDY 11:10:15 ENSURING NOTHING LIKE DEEP WATER HORIZON EVER HAPPENS AGAIN. 11:10:19 SO ANY NECESSARY CHANGES UNDERTAKEN BY CONGRESS, THE 11:10:22 EXECUTIVE BRANCH AND INDUSTRY SHOULD BE ONE ELEMENT FOR 11:10:26 BROADER NATIONAL ENERGY POLICY. THAT'S A POLICY THAT RECOGNIZES 11:10:29 THAT WE HAVE A ROBUST OIL AND GAS INDUSTRY THAT GENERATES 11:10:35 VITAL U.S. JOBS AS WELL AS SUBSTANTIAL STATE AND FEDERAL 11:10:38 REVENUE FROM TAX AND ROYALTY PAYMENTS. 11:10:42 ONE THAT GUARANTEES THE SECURITY OF THE ENERGY THAT DRIVES OUR 11:10:46 NATIONAL ECONOMIC WELL BEING. IT'S ALSO A POLICY THAT ASSURES 11:10:50 THE SAFE ENVIRONMENTALLY RESPONSIBLE PRODUCTION OF ALL 11:10:54 FORMS OF ENERGY OOLG WITH ITS WISE USE. 11:10:57 THESE ARE ESSENTIAL TO A HEALTHY AND TO A GROWING ECONOMY. 11:11:01 ANOTHER KEY ELEMENT OF A COMPREHENSIVE ENERGY POLICY 11:11:05 SHOULD BE FEDERAL ACTION TO ADDRESS GLOBAL CLIMATE CHANGE. 11:11:08 AS YOU ARE AWARE, CONOCO-PHILLIPS SUPPORTS PASSAGE 11:11:11 OF A COMPREHENSIVE FEDERAL LAW ESTABLISHING A CLEAR AND 11:11:16 TRANSPARENT PRICE FOR CARBON. A FEDERAL LEGISLATIVE FRAMEWORK 11:11:20 AT A MINIMUM MUST PROVIDE A PROGRAM TO MANAGE TRANSPORTATION 11:11:25 EMISSIONS, ONE THAT PROTECTS CONSUMERS WHILE ENCOURAGING 11:11:28 INVESTMENT IN LOWER CARBON TECHNOLOGIES. 11:11:32 IT ALSO MUST ADDRESS THE ENERGY INTENSIVE AND TRADE EXPOSED 11:11:36 NATURE OF OUR DOMESTIC REFINERIES. 11:11:38 IT MUST CREATE NEW LEGISLATIVE MECHANISMS SPECIFICALLY FOR 11:11:42 REGULATING GREENHOUSE GAS EMISSIONS. 11:11:46 THIS WOULD BE IN PLACE OF THE CLEAN AIR, CLEAN WATER AND 11:11:49 ENDANGERED SPECIES ACTS AN OTHER FEDERAL AND STATE PROGRAMS. 11:11:53 IT MUST RECOGNIZE ESSENTIAL ROLE OF NATURAL GAS IN ACHIEVING A 11:11:59 LOWER CARBON ENERGY FUTURE. LASTLY, IN ORDER TO ACHIEVE OUR 11:12:04 NATIONAL ENERGY GOALS, U.S. ENERGY POLICY MUST CREATE, 11:12:08 SUPPLY DIVERSITY, PROMOTE TECHNOLOGICAL INNOVATION, 11:12:12 ENCOURAGE ENERGY EFFICIENCY AND ENVIRONMENTAL STEWARDSHIP. 11:12:17 TODAY, OUR COUNTRY IS WORK TOWARD AN ENERGY FUTURE 11:12:20 FEATURING A BROAD PORTFOLIO OF ENERGY SOURCES AND THESE WILL 11:12:24 INCLUDE RENEWABLE SOURCES AND CLEANER FOSSIL FUELS. 11:12:29 BROADER CONSERVATION AND NEW, MORE EFFICIENT ENERGY 11:12:32 TECHNOLOGIES. EACH. 11:12:33 THOSE APPROACHES WILL PROVIDE A PART OF THE LONG-TERM SOLUTION. 11:12:37 AS A NATION, WE'RE ON OUR WAY, WE WILL GET THERE BUT IT IS 11:12:40 GOING TO TAKE US SOME TIME. UNTIL THEN, WE MUST FULFILL 11:12:45 AMERICA'S PRESSING ENERGY NEEDS, IN SHORT PROVIDING FUEL THAT 11:12:49 ENABLES PEOPLE TO TRAVEL, TO WORK AND BACK. 11:12:52 MOVES GOODS AROUND THE WORLD. POWERS THE LIGHTING, HEAT, 11:12:56 ELECTRICITY AND MACHINERY IN WHICH OUR HOMES, FACTORIES AND 11:12:59 HOSPITALS DEPEND AND PROVIDES THE FUEL AND FERTILIZER THAT 11:13:03 ENABLES TO US FEED A GROWING POPULATION. 11:13:05 IN DOING THIS, EVEN WITH STRONG GROWTH AND RENEWABLE SOURCE, 11:13:09 CARBON BASED FUELS MUST KEEP CARRYING THE ENERGY LOAD FAR 11:13:14 INTO THE FUTURE. UNFORTUNATELY WE HAVE NATURAL 11:13:17 GAS. IT'S ONE OF THE MOST IMPORTANT 11:13:20 DOMESTIC RESOURCE AVAILABLE FOR USE BY OUR COUNTRY IN REACHING 11:13:23 ITS CLIMATE AND ENERGY SECURITY OBJECTIVES, IT'S CLEAN, IT'S 11:13:27 AFFORDABLE, IT'S RELIABLE, ABUNDANT AND AVAILABLE HERP AT 11:13:31 HOME. WE BELIEVE THAT THROUGH A 11:13:33 NATIONAL SPIRIT OF SHARED COMMITMENT TO A MUTUALLY 11:13:37 BENEFICIAL OUTCOME, AMERICA CAN ACHIEVE ITS ENERGY GOALS. 11:13:41 AS A COMPANY, CONOCO-PHILLIPS IS COMMITTED TO DOING SO. 11:13:45 SO THANK YOU VERY MUCH FOR THIS OPPORTUNITY. 11:13:47 I LOOK FORWARD TO RESPONDING TO QUESTIONS YOU MAY HAVE. 11:13:49 THANK YOU, MR. MULVA. OUR NEXT WITNESS IS MR. OWED 11:13:58 DEM, THE PRESIDENT OF THE SHELL OIL COMPANY. 11:14:02 HE'S ALSO ON THE BOARD OF THE AMERICAN PETROLEUM INSTITUTE. 11:14:06 PLEASE BEGIN WHEN YOU ARE READY. THANK YOU, CHAIRMAN MARKEY. 11:14:10 I AM MARVIN ODUM, PRESIDENT SHELL OIL COMPANY. 11:14:18 I WOULD LIKE TO ACKNOWLEDGE THE SITUATION IN THE GULF OF MEXICO 11:14:20 ON THE MINDS OF EVERY AMERICAN. ALL OF US ARE DEEPLY SADDENED BY 11:14:24 THE DEEP WATER HORIZON EXPLOSION AND AFTERMATH. 11:14:27 A TERRIBLE TRAGEDY FOR THE FAMILIES OF THOSE WHO LOST THEIR 11:14:30 LIVES OR WERE INJURED. MANY OF OUR EMPLOYEES AND 11:14:33 CUSTOMERS LIVE ALONG THE GULF COAST AND FEEL THAT PAIN 11:14:38 FIRSTHAND. GETTING TO THE ROOT CAUSE OF 11:14:40 THIS INCIDENT IS CRITICAL. LIKE YOU, WE WANT TO KNOW WHAT 11:14:43 WENT WRONG WITH THIS BELL WEL AND THE EXECUTION OF THIS WELL 11:14:48 DESIGN. AS AN INVESTIGATION FINDINGS 11:14:51 WERE AVAILABLE, SHELL WILL INCORPORATE ANY LEARNINGS INTO 11:14:55 OUR OPERATIONS WORLDWIDE. SINCE THE BEGIN, SHELL HAS MADE 11:14:58 EXPERTS EQUIPMENT AND FACILITIES AVAILABLE TO BP AND THE 11:15:02 RESPONDERS YOU INCLUDING OUR ROBERT TRAINING CENTER OUTSIDE 11:15:04 OF NEW ORLEANS AS A SITE FOR UNIFIED COMMAND. 11:15:09 WE TOOK IMMEDIATE STEPS TO REINFORCE THE SAFETY OF OUR 11:15:13 OPERATIONS GLOBALLY INCLUDING A REVIEW OF OPERATING PRACTICES, 11:15:16 TESTING FREQUENCIES AND TRAINING PROTOCOLS. 11:15:20 WE REMAIN CONFIDENT IN OUR EXPERTISE AND PROCEDURES AND 11:15:24 THAT COMES FROM FOCUS ON FIVE CRITICAL AND INTEGRATED AREAS TO 11:15:29 ENSURE SAFE WELL DESIGN AND DRILLING IN THE DEEP WATER. 11:15:32 AND THOSE ARE OUR GLOBAL STANDARDS, OUR RIGOROUS TRAINING 11:15:36 AND CERTIFICATION OF THE ENGINEERS, A SAFETY CASE 11:15:42 APPROACH WITH OUR CONTRACTORS TO IDENTIFY THE RISK AND MITIGATE 11:15:45 THOSE RISKS. ENSURING ROW BUST AND MULTIPLE 11:15:49 BEAR YERTS IN OUR WELLS AND 24/7 REMOTE MONITORING BY SKILLED 11:15:56 PROFESSIONALS WHO PROVIDE IMMEDIATE SUPPORT ON CRITICAL 11:15:59 ISSUES SUCH AS WELL PRESSURE CHANGES. 11:16:03 SAFETY AND ENVIRONMENTAL PROTECTION ARE AND ALWAYS WILL 11:16:05 BE SHELL'S TOP PRIORITIES. WE WELCOME THE RECOMMENDATIONS 11:16:09 OUTFLIND SECRETARY SALAZAR'S MAY 27th REPORT TO THE PRESIDENT AND 11:16:14 THE JUNE NOTICE TO LEASEHOLDERS. MANY ELEMENTS ARE ALREADY 11:16:18 ALIGNED WITH OUR GLOBAL PRACTICES AND WE WILL WORK TO 11:16:21 INCORPORATE ALL OF THEM. IN THE CONTEXT OF THIS TRAGEDY, 11:16:27 WE ACKNOWLEDGE THE REASONS FOR THE PRESIDENT'S DECISION TO 11:16:29 PAUSE DEEP WATER DRILLING, BUT IT IS NOT WITHOUT CONSEQUENCES. 11:16:33 THOUSANDS OF JOBS LOST AND BILLIONS IN LOST WAMPS AND 11:16:36 SPENDING. AND NOT ONLY ON THE GULF COAST 11:16:38 BUT ALSO IN PLACES LIKE ALASKA. THIS BRINGS ME TO THE TOPIC THAT 11:16:43 YOU ASKED TO US SPEAK ABOUT TODAY. 11:16:45 AMERICA'S ENERGY FUTURE. AT SHELL, WE BELIEVE THAT 11:16:49 POPULATION AND ECONOMIC GROWTH WILL DRIVE GLOBAL ENERGY DEMAND 11:16:52 TO POTENTIALLY DOUBLE TODAY'S USE BY 2050 EVEN WITH STRONG 11:16:57 EFFICIENCY GAINS. ENERGY SUPPLY FROM ALL SOURCES, 11:17:01 OIL, GAS, NUCLEAR, RENEWABLE AND OTHERS WILL STRUGGLE TO KEEP UP 11:17:04 WITH THIS DEMAND. ENVIRONMENTAL STRESSES WILL 11:17:08 GROW, MAKING THE TRANSITION TO LOWER CARBON ECONOMIES EVEN MORE 11:17:12 URGENT. WITH THIS AS A BACK DROP IT IS 11:17:14 CLEAR THE WORLD NEEDS A MORE SUSTAINABLE ENERGY SYSTEM. 11:17:18 ALTERNATIVE AND RENEWABLE ENERGY SYSTEMS COULD BE 30% OF THE NEW 11:17:23 ENERGY MIX BY 2050, THE SCALE AND MASSIVE INFRASTRUCTURE OF 11:17:26 THE GLOBAL ENERGY SYSTEM DOES MEAN THAT CHANGE TAKES TIME. 11:17:29 AT SHELL, WE BELIEVE OUR INDUSTRY CAN BEST CONTRIBUTE BY 11:17:34 MAKING MORE ENERGY AVAILABLE, BY REDUCING EMISSIONS AND BY 11:17:38 INCREASING OUR LOWER CARBON ENERGY SHARE WHILE JEN RALT 11:17:41 RATING JOBS AND DOING SO SAFELY AND RESPONSIBLY. 11:17:45 NATURAL IT WAS IS NOT RENEWABLE BUT IT IS ABUNDANT IN THE U.S. 11:17:50 AND A LOWER CO 2 ENERGY SOURCE. IT IS FAR THE QUICK EFFORT AND 11:17:56 LEAST EXPENSIVE ROUTE TO CLEANER AIR. 11:18:00 WITHIN A COUPLE OF YEARS, SHELL WILL BE PRODUCING MORE GAS THAN 11:18:03 OIL AND MUCH OF THAT IN NORTH AMERICA. 11:18:06 BIOFUELS ARE ALSO ONE OF THE BEST OPPORTUNITIES FOR REDUCING 11:18:09 CO 2 FROM TRANSPORTATION FOR THE AT LEAST THE NEXT 20 YEARS. 11:18:13 AS SHELL IS THE LARGEST SUPPLIER OF RENEWABLE BLEND FUELS AN 11:18:17 INVEFRTING IN LOWEST CO 2 BIOFUELS MADE FROM SUGAR CANE 11:18:23 ETHANOL WITH A JOINT VENTURE PROPOSED FOR BRAZIL. 11:18:27 INVESTMENT IN TECHNOLOGIES SUCH AS THESE ARE CREATING JOBS. 11:18:30 ONE OUT OF EVERY FIVE DOLLARS NOTICE U.S. COMES FROM 11:18:33 INVESTMENTS MADE BY OUR ENERGY. OUR INDUSTRY, WHICH ALREADY 11:18:38 SUPPORTS MORE THAN 9.2 MILLION AMERICAN JOBS. 11:18:40 WE NEED TO RETAIN THESE JOBS AND CREATE NEW ONES TO FUEL THE 11:18:44 ECONOMY OF THE FUTURE. SOCIETY, GOVERNMENT AND BUSINESS 11:18:48 MUST ALL DO THEIR PART. ABSENCE OF A REBUST ENERGY 11:18:52 POLICY HAS BEEN A DISADVANTAGE TO THIS NATION. 11:18:54 SHELL SUPPORTS LEGISLATING A SOLUTION TO ENERGY AND CLIMATE 11:18:58 ISSUES AS A MEANS TO CREATE, SECURE -- A SECURE U.S. ENERGY 11:19:04 FUTURE, TO REDUCE DEPENDENCE ON IMPORTED OIL AND TO REDUCE 11:19:10 GREENHOUSE GAS EMISSION, THIS REQUIRES SETTING A PRICE FOR 11:19:13 CARBON. BUT SHYING AWAY FROM OIL AND GAS 11:19:16 DEVELOPMENT DURING THE TRANSITION IS NOT THE ANSWER. 11:19:18 OIL AND GAS DEVELOPMENT IS TOO IMPORTANT TO THE U.S. ENERGY 11:19:21 SUPPLIES AND OUR ECONOMY TO NOT SAFELY AND RESPONSIBLY MOVE 11:19:24 FORWARD. SHELL STANDS READY AND ABLE WITH 11:19:27 SKILLED PEOPLE AND STATE-OF-THE-ART TECHNOLOGY TO 11:19:29 CONTINUE MEETING AMERICA'S NEEDS. 11:19:31 THANK YOU FOR YOUR TIME. I LOOK FORWARD TO ADDRESSING 11:19:33 YOUR QUESTIONS. THANK YOU, MR. ODUM. 11:19:36 OUR FINAL WITNESS IS MR. LAMAR McKAY. 11:19:39 MR. McKAY IS THE PRESIDENT AND CHAIRMAN OF BP AMERICA. 11:19:44 MR. McKAY, PLEASE BEGIN WHEN YOU ARE READY. 11:19:49 THANK YOU. CHAIRMAN MARKEY, RANKING MEMBER 11:19:52 UPTON, MEMBERS OF THE COMMITTEE, MY NAME IS LAMARING IN KAY, I AM 11:19:56 CHAIRMAN AND PRESIDENT OF BP AMERICA. 11:19:58 BEFORE ADDRESSING THE MAIN TOPIC OF TODAY'S HEARING, I WOULD LIKE 11:20:02 TO REITERATE THE PROFOUND SORROW AND REGRET THAT ALL OF US AT BP 11:20:07 FEEL FOR THE LOSS OF LIFE AND THE OIL SPILL RESULTING FROM THE 11:20:12 DEEP WATER HORIZON EXPLOSION AND FIRE. 11:20:16 THIS IS VERY PERSONAL BOTH TO ME AND TO BP. 11:20:19 I AM FROM MISSISSIPPI. I GREW UP IN MISSISSIPPI. 11:20:23 I SPENT SUMMERS ON THE GULF COAST. 11:20:25 MOST OF MY FAMILY IS IN NEW ORLEANS. 11:20:28 AND I HAVE MOST OF MY RELATIVES AND FRIENDS ALONG THE GULF 11:20:32 COAST. THE GULF COAST STATES HAVE 11:20:35 HOSTED BP AND BP'S HERITAGE COMPANIES FOR DECADES. 11:20:39 THOUSANDS OF OUR EMPLOYEES, CONTRACTOR AND THEIR FAMILIES 11:20:43 CALL THE GULF COAST STATES HOME. THIS HORRENDOUS ACCIDENT HAS 11:20:51 PROFOUNDLY TOUCHED ALL OF US. THERE'S BEEN TREMENDOUS SHOCK 11:20:55 THAT SUCH AN ACCIDENT COULD HAVE HAPPENED. 11:20:58 AND GREAT SORROW FOR THE LIVES LOST AND INJURIES SUSTAINED. 11:21:02 I'D LIKE TO MAKE ONE THING VERY CLEAR. 11:21:04 BP WILL NOT REST UNTIL THE WELL IS UNDER CONTROL, WHEN WE 11:21:09 DISCOVER WHAT HAPPENED AND WHY. IN ORDER TO ENSURE THAT IT NEVER 11:21:13 HAPPENS AGAIN. AS A RESPONSIBLE PARTY UNDER THE 11:21:17 OIL POLLUTION ACT OF 1990, WE WILL CARRY OUT OUR 11:21:21 RESPONSIBILITIES TO MITIGATE THE ENVIRONMENTAL AND ECONOMIC 11:21:24 IMPACT OF THIS ACCIDENT. IN FACT, BP IS GOING BEYOND 11:21:31 OBLIGATIONS UNDER OPA TO AGREE TO PAY ALL LEGITIMATE CLAIMS FOR 11:21:36 ECONOMIC DA DAMAGES ULTIMATING FROM THE SPILL. 11:21:41 WHILE IT'S DIFFICULT TO DIVERT FROM THE HERE AND NOW, WE CANNOT 11:21:45 LOSE SIGHT FOR THE NEED TO SHAPE THE COUNTRY'S FUTURE ENERGY AND 11:21:48 CLIMATE POLICY. BP IS KMILTED TO WORKING WITH 11:21:50 THE CONGRESS AND THE BROAD CROSS SECTION OF ENERGY PRODUCER, 11:21:54 ENERGY CONSUMERS AND OTHER STAKEHOLDERS TO ADDRESS THE 11:21:57 CHALLENGES OF CLIMATE CHANGE IN THE CON TEGT OF INCREASING U.S. 11:22:02 ENERGY DEMAND. WE APPRECIATE THE OPPORTUNITY TO 11:22:05 SHARE OUR VIEWS ON ENERGY AND CLIMATE POLICY AS WELL AS THE 11:22:09 CHANCE TO DISCUSS THE MAJOR ROLE OF NATURAL GAS THAT IT CAN PLAY 11:22:14 IN SPEED SPOOEDING EMISSION REDUCTIONS IN THE POWER SECTOR, 11:22:18 DELIVERING THE GREAT EFFORT REDUCTIONS AT THE LOWEST COST 11:22:20 FOR CONSUMERS USING TECHNOLOGY THAT IS AVAILABLE TODAY. 11:22:24 BP ADVOCATES AND HAS ADVOCATED FOR QUITE A TIME AN ALL OF THE 11:22:30 ABOVE APPROACH TO TACKLING CLIMATE CHANGE. 11:22:33 ENHANCING U.S. ENERGY SECURITY AND MEETING THE NATION'S GROWING 11:22:35 NEED FOR ENERGY. WE DO SUPPORT POLICIES THAT 11:22:40 ENCOURAGE CONSERVATION. ENERGY EFFICIENCY AND GREATER 11:22:44 PRODUCTION OF DOMESTIC ENERGY INCLUDING ALTERNATIVES, OIL AND 11:22:48 GAS AND NUCLEAR. OUR VIEWS ON CLIMATE POLICY FLOW 11:22:52 FROM THE FACT THAT A TON OF CARBON IS A TON OF CARBON 11:22:56 WHETHER IT COMES OUT OF A TAIL PIPE OR A SMOKE STACK AND THE 11:22:59 BELIEF THAT EVERY TON SHOULD BE TREATED THE SAME. 11:23:03 WE SUPPORT A NATIONAL CLIMATE POLICY THAT CREATES A LEVEL 11:23:06 PLAYING FIELD FOR ALL FORMS OF ENERGY THAT PRODUCE CARBON 11:23:11 EMISSIONS. WE FAVOR AN ECONOMY-WIDE PRICE 11:23:14 FOR CARBON BASED ON FAIR AND EQUITABLE APPLICATION ACROSS ALL 11:23:19 SECTORS. MARKET BASED SOLUTIONS LIKE CAP 11:23:21 AND TRADE OR LINKED FEE ARE THE BEST SOLUTIONS TO MANAGE 11:23:25 GREENHOUSE GAS EMISSIONS, APPLIED NATIONALLY, THESE WOULD 11:23:28 ACHIEVE NATIONAL ENVIRONMENTAL EFFECTIVENESS AT REDUCING 11:23:32 EMISSIONS, TREAT ALL ENERGY CONSUMERS EQUITABLY AND 11:23:36 FACILITATE INVESTMENT IN SUSTAINING AND CREATING JOBS. 11:23:38 WE HAVE LONG SUPPORTED TRANSITIONAL INCENTIVES FOR 11:23:42 ALTERNATIVES TO ASSIST OUR DEVELOPMENT AND ACCELERATE THEIR 11:23:46 MARKET ENTRY, ADDITIONALLY, WE THINK NATURAL GAS HOLDS GREAT 11:23:50 PROMISE IN BECOMING A LARGER COMPONENT OF THE U.S. ENERGY 11:23:53 POOL AND CAN PROVIDE A CRITICAL DOWN PAYMENT AT DELIVERING UPON 11:23:57 OUR CARBON REDUCTION GOALS. NOW I'D LIKE TO CONCLUDE BY 11:24:01 NOTING THAT WHILE BP IS IN THE MIDST OF A CRISIS RIGHT NOW AND 11:24:05 WE ARE PREFISHD JUDGED BY OUR RESPONSE TO THAT CRISIS, WE 11:24:09 CANNOT LOSE SIGHT OF THE FUTURE. THANK YOU AND I LOOK FORWARD TO 11:24:12 YOUR QUESTIONS. THANK YOU, MR. McKAY. 11:24:17 THAT COMPLETES THE OPENING STATEMENTS OF OUR WITNESSES. 11:24:21 WE WILL NOW TURN TO QUESTIONS BY THE SUBCOMMITTEE MEMBERS. 11:24:27 THE CHAIR WILL RECOGNIZE HIMSELF. 11:24:30 AS I MENTIONED IN MY OPENING STATEMENT, THE GULF OF MEXICO 11:24:33 RESPONSE PLANS FOR EXXONMOBIL, CHEVRON, CONOCO-PHILLIPS AN 11:24:40 SHELL ARE VIRTUALLY IDENTICAL TO BP'S. 11:24:43 AND JUST AS DEFICIENT. AS YOU CAN SEE BY LOOKING AT THE 11:24:49 COVERS OF THESE FIVE PLANS, ON THE SCREEN AND OVER MY HEAD, THE 11:24:55 PICTURES ARE THE SAME FOR EACH PLAN. 11:24:57 ALL THAT IS CHANGED IS THE COLOR OF THE COVER OF THE PLAN FROM 11:25:03 EACH OF THE COMPANIES SEATED AT THE TABLE. 11:25:08 MR. TILLERSON, LIKE BP ON PAGE 11-6 OF YOUR PLAN, EXXONMOBIL'S 11:25:14 GULF OF MEXICO OIL SPILL RESPONSE PLAN LISTS WALRUSES 11:25:19 UNDER SENSITIVE BIOLOGICAL AND HUMAN RESOURCES. 11:25:23 AS I AM SURE YOU KNOW, THERE AREN'T ANY WALRUSES IN THE GULF 11:25:27 OF MEXICO. AND THERE HAVE NOT BEEN FOR 3 11:25:30 MILLION YEARS. HOW CAN EXXONMOBIL HAVE WALRUSES 11:25:37 IN THEIR RESPONSE PLAN FOR THE GULF OF MEXICO? 11:25:43 CONGRESSMAN MARKEY, THOSE RESPONSE PLANS INCORPORATE A 11:25:46 NUMBER OF BROAD BASED STUDIES, MARINE MAMMAL STUDIES, MANY OF 11:25:52 WHICH ARE PART OF THE EIS AND EIA STATEMENTS PUT TOGETHER BY 11:25:57 THE MMS AND MUCH OF THE RESPONSE PLAN WHAT IS CONTAINED IN IT IS 11:26:02 PRESCRIBED BY REGULATION. INCLUDING THE MODELS THAT ARE 11:26:06 USED TO PROJECT DIFFERENT SCENARIOS FOR ALL SPILLS AND 11:26:09 MANY OF THE STATEMENTS AND REPRESENTATION THAT ARE IN THE 11:26:12 PLANS -- THESE ARE REGIONAL. 11:26:14 I UNDERSTAND. OIL SPILL RESPONSE PLANS. 11:26:17 HOW CAN WALRUSES BE IN A RESPONSE PLAN FOR THE GULF OF 11:26:22 MEXICO? THIS IS A REGIONAL RESPONSE PLAN 11:26:25 THAT EACH OF YOU HAD TO PUT TOGETHER. 11:26:27 I UNDERSTAND THE QUESTION. IT'S UNFORTUNATE THAT WALRUSES 11:26:31 ARE INCLUDED. AND IT'S AN EMBARRASSMENT THAT 11:26:35 THEY WERE INCLUDED BUT THAT'S PART OF A LARGER MARINE MAMMAL 11:26:38 STUDY THAT IS USED IN PREPARING REGIONAL RESPONSE PLANS. 11:26:41 MR. MULVA, YOUR PLAN AS WELL INCLUDES WALRUSES. 11:26:47 MR. WATSON, YOUR PLAN HAS THEM ON PAGE 11-6. 11:26:53 HOW DO YOU RESPOND TO HAVING WALRUSES IN YOUR PLAN? 11:26:58 I RESPOND IN A SIMILAR FASHION. 11:27:04 THE PLANS ARE PUT TOGETHER IN RESPONSE TO GUIDELINES FROM THE 11:27:10 MINERALS MANAGEMENT SERVICE. DO YOU AGREE THAT IT'S AN 11:27:13 EMBARRASSMENT TO HAVE WALRUSES IN A RESPONSE PLAN FOR THE GULF 11:27:15 OF MEXICO, MR. WATSON. CERTAINLY FOR THE GULF OF 11:27:19 MEXICO IT'S NOT APPROPRIATE. MR. MULVA, DO YOU AGREE IT'S 11:27:24 AN EMBARRASSMENT TO HAVE IT INCLUDED IN THE PLAN. 11:27:27 I AGREE IT'S NOT APPROPRIATE FOR THAT REGION. 11:27:31 IN YOUR RESPONSE PLAN, MR. TILLERSON AS WELL AS SOME OF 11:27:37 THE OTHER PLANS INCLUDING CONOCO-PHILLIPS, THERE IS A DR. 11:27:43 LUTZ WHO IS REFERRED TO AS AN EXPERT. 11:27:46 A TECHNICAL SUPPORT PERSON. MR. LUTZ DIED IN 2005, FOUR 11:27:51 YEARS BEFORE THE PLAN WAS ACTUALLY FILED. 11:27:57 HOW, MR. TILLERSON, CAN YOU JUMP IN A RESPONSE PLAN HAVING A 11:28:01 PERSON WHO HAS BEEN DEAD FOR FOUR YEARS? 11:28:04 IS THAT ALSO AN EMBARRASSMENT IT. 11:28:07 IS BUT LET ME POINT OUT THAT DR. LUTZ IS PART OF THE 11:28:10 UNIVERSITY OF MIAMI'S MARINE MAMMAL RESEARCH DIVISION WHICH 11:28:13 HAS BEEN AN IMPORTANT RESOURCE FOR PREPARATION OF THESE PLANS 11:28:16 FOR YEARS. THE FACT THAT DR. LUTZ DIED IN 11:28:19 2005 DOES NOT MEAN HIS WORK AND THE IMPORTANCE OF HIS WORK DIED 11:28:22 WITH HIM. THERE ARE MANY OTHER INDIVIDUALS 11:28:26 IDENTIFIED IN THE PLAN -- NO I APPRECIATE THAT. 11:28:30 EXPERTISE -- IT'S 2010. 11:28:31 A. AND THOSE NUMBERS ARE ALL 11:28:33 VALID IN THE PLAN. IT'S 2010, IT JUST SEEMS TO 11:28:37 ME THAT WHEN YOU INCLUDE DR. LUTZ' PHONE NUMBER IN YOUR PLAN 11:28:45 FOR RESPONSE, THAT YOU HAVE NOT TAKEN THIS RESPONSIBILITY 11:28:51 SERIOUSLY. MR. MULVA, THE SAME IS TRUE FOR 11:28:54 YOU. IS IT AN EMBARRASSMENT TO 11:28:57 CONOCO-PHILLIPS TO HAVE THAT AS PART OF YOUR PLAN? 11:29:00 WELL, THE PLANS NEED TO BE UPDATED MORE FREQUENTLY. 11:29:04 IT'S IMPORTANT IS THE INSTITUTION THAT'S WHO WE 11:29:07 REFER TO FOR SUPPORT. OBVIOUSLY, IT EMBARRASSING. 11:29:10 BUT WE REALLY LOOK TOWARDS THE INSTITUTION AND NOT NECESSARILY 11:29:14 THE INDIVIDUAL. IT JUST SEEMS TO ME THAT FOR 11:29:17 EACH YOUR COMPANIES, THE ONLY TECHNOLOGY YOU SEEM TO BE 11:29:20 RELYING UPON IS A XEROX MACHINE TO PUT TOGETHER YOUR RESPONSE 11:29:25 PLANS. THAT THERE WASN'T ENOUGH EFFORT 11:29:29 PUT TOGETHER TO ENSURE THAT IN THE GULF IF A CATASTROPHE 11:29:33 OCCURRED THAT YOU WOULD BE ABLE TO RESPOND. 11:29:35 AND YOU A, MR. McKAY, IN THE FIRST WEEK, YOUR COMPANY 11:29:40 DEVELOPED A DOCUMENT THAT SHOWED THAT YOUR RANGE OF POSSIBILITIES 11:29:45 FOR AN ACCIDENT WAS ONE,000 TO WOULDN'T 14,000 BARRELS PER DAY. 11:29:58 YET YOUR COMPANY CONTINUALLY LOWBALLED THE NUMBER SAYING IT'S 11:30:03 1,000 BARRELS A DAY. NOW YOU'RE ESTIMATING IT COULD 11:30:06 BE UPWARDS OF 40,000 BARRELS A DAY AND YOU ARE TODAY CAPTURING 11:30:13 15,000 BARRELS A DAY OF OIL FROM THAT GUSHER. 11:30:16 ARE YOU READY TO APOLOGIZE TO THE AMERICAN PEOPLE FOR GETTING 11:30:20 THAT NUMBER SO WRONG? HAVING BEEN SO INCOMPETENT OR 11:30:26 DECEPTIVE TO THE AMERICAN PEOPLE THAT PROPER PREPARATIONS WERE 11:30:30 NOT PUT IN PLACE BECAUSE OF BP'S LOWBALLING OF THE ACTUAL AMOUNT 11:30:36 OF OIL THAT WAS GOING INTO THE GULF OF MEXICO? 11:30:40 FIRST, JUST TO BE CLEAR. THOSE WERE UNIIED AREA COMMAND 11:30:51 ESTIMATES. THE 5,000 BARRELS A DAY WAS DONE 11:30:55 GUY NOAA OUR INPUT AFTER THAT WAS A RANGE OF 1,000 TO 14,000 11:31:02 BARRELS A DAY AND OUR BEST ESTIMATE WAS ABOVE 5,000 BARRELS 11:31:06 A DAY, BUT THE UNIFIED AREA COMMAND ESTIMATE WAS FOIFR 11:31:15 5,000 BARRELS A DAY. 11:31:16 THINGS HAVE MOVE THING A -- THIS DOCUMENT I HAVE IS BP 11:31:20 CONFIDENTIAL IN THE FIRST WEEK T SAYS 1,000 TO 14,000. 11:31:25 THIS IS BP CONFIDENTIAL. ONUS, THE BURDEN, THE 11:31:36 RESPONSIBILITY WAS ON YOUR SHOULDERS. 11:31:38 YOU WERE ABLE THROUGH YOUR INTERNET TEASE TO MAKE THIS 11:31:40 DETERMINATION. I DO BELIEVE IT'S EITHER 11:31:43 DELIBERATE DECEPTION OR GROSS INCOMPETENCE BECAUSE ULTIMATELY 11:31:45 THE AMOUNT OF BOOM, SKIMERS, CLEANUP OF THE BEACHES AND 11:31:50 MARSHES AND RESCUE OF BIRDS AND TURTLES, THE CHAFLT WHICH YOU 11:31:55 NEEDED IN ORDER TO CAPTURE THE OIL COMING OUT OF THAT SPILL, 11:32:00 TESTING FOR THE HEALTH OF THE WORKERS, IT WAS ALL DEPENDENT 11:32:03 UPON HOW LARGE THE SPILL WAS. ARE YOU READY TO APOLOGIZE FOR 11:32:09 GETTING THAT NUMBER SO GROSSLY WRONG THAT THE CAPACITY OF 11:32:15 FEDERAL AND STATE GOVERNMENTS TO PUT IN PLACE A RESPONSE WAS 11:32:20 DELAYED BECAUSE YOU DID NOT DO THE JOB? 11:32:23 I WILL JUST REITERATE WHAT COMMANDANT ALLEN SAID, THOSE 11:32:30 WERE UNIFIED AREA COMMAND ESTIMATES. 11:32:32 THEY WERE YOUR CAMERAS AT THE BOTTOM OF THE OCEAN. 11:32:39 THAT'S TRUE. WE PROVIDED -- 11:32:41 YOU GOT IT MR., McKAY. B 11:32:51 GOT IT WRONG. WE HAVE PROVIDE ALL THE 11:32:54 INFORMATION TO THE COAST GUARD, NOAA WITH THE DATA WE HAVE. 11:32:58 ON THE DAY, MR. McKAY, THAT YOU ARE READY TO APOLOGIZE -- 11:33:01 WHAT'S THAT? ON THE DAY THAT YOU ARE READY 11:33:03 TO APOLOGIZE, THAT IS THE DAY THAT WE CAN BEGIN TO MOVE 11:33:06 FORWARD AND PUT TOGETHER THE KINDS OF PLANS THAT MAKE SURE 11:33:09 THIS NEVER HAPPENS AGAIN. IT WAS BP'S SPILL BUT IT WAS 11:33:14 AMERICA'S OCEAN. WELL, WE ARE -- 11:33:16 WE NEED YOU TO ADMIT THAT YOU KNEW OR SHOULD HAVE KNOWN VERY 11:33:21 EARLY ON THAT THIS WAS NOT A SPILL OF 1,000 OR 5,000 BARRELS 11:33:26 PER DAY. THEY WERE YOUR CAMERAS, YOUR 11:33:29 TECHNOLOGY, YOUR EXPERTISE THAT THE AMERICAN PEOPLE WERE RELYING 11:33:33 UPON AND YOU GOT IT COMPLETELY WRONG. 11:33:36 EITHER IN ORDER TO LIMIT YOUR LIABILITY OR OUT OF 11:33:48 INCOMPETENCE, BUT THE ULTIMATE IMPACT ON REGION WILL LAST FOR 11:33:52 GENERATIONS. PLEASE, ONE FINAL CHANCE, 11:33:53 APOLOGIZE FOR GETTING THAT NUMBER WRONG. 11:33:55 WE ARE SORRY FOR EVERYTHING THE GULF COAST IS GOING THROUGH 11:33:59 AND. WE ARE SORRY FOR THAT AND THE 11:34:01 SPILL. WHAT I CAN SAY IS WE HAVE 11:34:02 PROVIDED EVERY BIT OF DATA AND INFORMATION WE HAVE TO THE 11:34:05 UNIFIED KPAND, TO THE GOVERNMENT, TO EVERY SCIENTIST 11:34:07 THAT'S WORKING ON THIS FULL-TIME AND FROM THAT DAY YOU'RE TALKING 11:34:13 ABOUT. SO WE DO NOT HAVE THE TECHNOLOGY 11:34:15 TO MEASURE THAT. THAT IS STILL UNDER EVALUATION. 11:34:18 I CONTINUE TO BELIEVE THAT BP IS STILL MORE INTERESTED IN ITS 11:34:22 LIABILITY THAN IT IS IN THE LIVEABILITY OF THE GULF AND THIS 11:34:27 HEARING IS JUST ONE FURTHER INDICATION OF THAT. 11:34:29 MY TIME IS EXPIRED. LET ME TURN AND RECOGNIZE THE 11:34:34 GENTLEMAN FROM MICHIGAN. MR. UPTON. 11:34:37 THANK YOU, MR. McKAY, YOU INDICATED THAT BP IS LOOKING TO 11:34:42 PAY ALL LEGITIMATE DAMPS. ARE YOU WILLING TO PUT INTO AN 11:34:46 ESCROW ACCOUNT ENOUGH MONEY TO PAY FOR SUCH DAMAGES AS MIGHT BE 11:34:51 EXPECTED? WELL, WE'VE BEEN VERY, VERY 11:34:53 CLEAR FROM DAY ONE THAT WE, AS A RESPONSIBLE PARTY UNDER OPA-90 11:34:59 WE ARE GOING TO BE LIVING UP TO THE RESPONSIBILITIES OF OPA-90. 11:35:05 I CAN NOT COMMENT ON WHETHER THERE WILL BE A FUND SET ASIDE 11:35:08 OR NOT. WE MADE IT CLEAR THE COMPANY 11:35:10 STANDS BEHIND THESE COMMITMENTS. SWE A STRONG BALANCE SHEET AND A 11:35:13 STRONG COMPANY, WE WILL STAND BEHIND THOSE. 11:35:16 I CANNOT COMMIT ONE WAY OR THE OTHER WHETHER A FUND WOULD SERVE 11:35:20 THAT FURTHERANCE. SO THAT'S A NO AT THIS POINT? 11:35:23 I CAN'T COMMENT YES OR NO. WHY NOT? 11:35:27 THE BUCK STOPS THERE. WE, WHAT WE'VE SAID IS WE'LL 11:35:31 HONOR ALL LEGITIMATE CLAIMS AND THE FULL COMPANY STANDS BEHIND 11:35:36 THAT. IF YOU ASKED THE FEDERAL 11:35:37 GOVERNMENT FOR ANY HELP THAT YOU'VE NOT RECEIVED? 11:35:42 NOT THAT I KNOW OF. WHAT GRADE WOULD YOU GIVE THE 11:35:46 ADMINISTRATION IN ITS EFFORTS TO STOP THIS SPILL? 11:35:50 WE'VE BEEN COOPERATING IN EVERY WAY WE KNOW HOW WITH THE 11:35:55 ADMINISTRATION. A, B, C, D. 11:35:56 I CAN'T GIVE A GRADE. THIS HAS BEEN A UNIFIED COMMAND 11:36:00 THAT WE'VE BEEN A PARTICIPANT IN WITH MANY GOVERNMENT AGENCIES, 11:36:05 INDUSTRY, WE'VE GOT 140 COMPANIES WORKING ON THIS. 11:36:08 I CAN'T COMMENT ON A GRADE OF INDIVIDUAL COMPONENTS OF THAT. 11:36:12 OF YOUR COUNTERPARTS THAT ARE AT THE TABLE, HAVE ANY OF THEM, 11:36:17 ARE YOU WORKING WITH ANY OF THEM TO TRY AND STOP THE LEAK? 11:36:19 YES, ALL OF THESE COMPANIES HAVE BEEN TREMENDOUSLY 11:36:22 SUPPORTIVE IN HELPING US. QUESTION FOR ALL OF YOU, AS 11:36:28 YOU DO DRILLS, DRILLING ACROSS THE WORLD, WHICH COUNTRY HAS THE 11:36:35 TOUGHEST REGULATIONS THAT ENFORCE THOSE REGULATIONS AND IF 11:36:40 THAT COUNTRY GETS AN A, WHERE WOULD YOU PUT THE U.S. WITH THE 11:36:45 ENFORCEMENT BY THE MMS? MR. TILLERSON? 11:36:48 WELL, I THINK THE UNITED STATES AND THE NORTH SEA 11:36:52 COUNTRIES HAVE THE MOST MATURE REGULATORY STRUCTURE AROUND 11:36:56 OFFSHORE DRILLING ACTIVITIES BECAUSE THAT'S WHERE IT'S TAKEN 11:36:59 PLACE THE LONGEST AND I CAN TELL YOU THOSE STANDARDS THEN GET 11:37:02 TAKEN TO COUNTRIES THAT DO NOT HAVE ESTABLISHED REGULATORY 11:37:07 STRUCTURES IN THE SAME STANDARDS ARE APPLIED EVERYWHERE. 11:37:09 SO THE SAME STANDARDS THAT ARE IN THE GULF AS IN THE NORTH 11:37:13 SEA? BY AND LARGE, THEY ARE THE 11:37:15 SAME. FOR EXXONMOBIL, WE TAKE WHAT WE 11:37:18 BELIEVE TO BE THE BEST PRACTICE, THE BEST AND APPLY THAT GLOBALLY 11:37:21 BECAUSE IT REALLY DOESN'T MATTER WHERE YOU ARE, IF YOU HAVE A 11:37:26 WELL CONTROL INCIDENT, YOU NEED TO USE THE BEST YOU HAVE 11:37:30 EVERYWHERE IN DEEP WATER DRILLING. 11:37:32 IT'S NOT AN AREA WHERE YOU MAKE A DISTINCTION STINGS I CAN GOING 11:37:36 TO CUT A CORNER BECAUSE I CAN. I KNOW THAT IN THE NORTH SEA 11:37:39 WHEN THEY HAD THE ACCIDENT BACK IN 1988 AND 180 FOLKS -- 11:37:44 PIPER ALPHA. RIGHT. 11:37:47 THE CHANGES WERE MADE IN TO SPLIT THE ENFORCEMENT AGENCY 11:37:55 SIMILAR TO WHAT THE ADMINISTRATION IS NOW PROPOSING 11:37:58 WITH THE MMS. IS THAT A BETTER SYSTEM THAN 11:38:00 WHAT WE HAVE IN THE UNITED STATES, RIGHT? 11:38:02 I DON'T NOPE THAT THE STRUCTURE IS AS IMPORTANT AS THE 11:38:06 COMPETENCY AND THE PROCESS BY WHICH THE OVERSIGHT OCCURS. 11:38:09 MR. WATSON? I'M NOT SURE I CAN GRADE ALL 11:38:14 THE DIFFERENCES ACROSS THE JURISDICTIONS. 11:38:16 I JUST WANT TO KNOW WHAT IS THE -- WHAT MODEL SHOULD WE BE 11:38:20 LOOKING AT? WE START WITH THE REGULATIONS 11:38:23 IN EACH COUNTRY. THEN WE APPLY OUR STANDARDS ON 11:38:26 TOP OF THOSE REGULATIONS. AND THEY ARE VERY SIMILAR. 11:38:30 THE APPLICATION OF OUR PROCESSES AND PROCEDURES ARE VERY SIMILAR 11:38:35 IN ALL THE COUNTRIES. WHERE THERE ARE PARTICULAR 11:38:38 REQUIREMENTS IN A PARTICULAR COUNTRY, WE, OF COURSE, COMPLY 11:38:42 WITH THOSE. OUR VIEW IS CERTAINLY THAT THE 11:38:43 UK AND THE U.S. HAVE VERY HIGH STANDARDS. 11:38:46 MR. MULVA? THE GREATEST PART OF OUR 11:38:52 EXPERIENCE AND OPERATION HAS BEEN IN THE NORTH SEA. 11:38:56 PARTICULARLY NORWAY AND THE UNITED KINGDOM AND IN THE NORWAY 11:39:00 AND THE UNITED KINGDOM, ESPECIALLY DEVELOPED SOME OF THE 11:39:05 BEST PRACTICES APPLICABLE AND USED AROUND THE WORLD. 11:39:07 SO IT'S BASED ON OUR EXPERIENCE OVER SEVERAL DECADES THAT THOSE 11:39:12 BEST PRACTICES AND OVERSIGHT REVIEW HAVE BEEN AMIND USED IN 11:39:18 THE INDUSTRY AND OTHER PRAISE PLACE OF THE WORLD. 11:39:20 SO I WOULD SAY THAT THEY RANK RIGHT UP AT THE TOP IN TERMS OF 11:39:25 CAPABILITY AND DEVELOPMENT OF PRACTICES. 11:39:28 MR. ODUM. SIMILAR ANSWER IN THAT I 11:39:33 THINK THE U.S. DOES HAVE ONE OF THE MOST COMPREHENSIVE SET OF 11:39:37 RECOMMENDATION FOR THE INDUSTRY IN THE WORLD. 11:39:38 YOU CAN FIND OTHER AREAS WHERE A PARTICULAR REGULATION MAY BE 11:39:42 MORE STRINGENT THAN WHAT YOU SEE IN THE U.S. 11:39:43 THE IMPORTANT PART FOR US AS A COMPANY IS GOING BACK TO WHAT I 11:39:47 CALLED MY TESTIMONY OUR GLOBAL STANDARDS. 11:39:49 HOW WE DO THINGS EVERYWHERE, THOSE OFTEN EXCEED THE 11:39:53 REGULATIONS IN ANY COUNTRY. MR. McKAY? 11:39:56 YES, I WOULD AGREE WITH THAMPL THE STANDARDS ARE SIMILAR 11:39:59 IN MANY PLACES WITH SOME SPECIFIC DIFFERENCES BUT THE 11:40:02 U.S. HAS A STRONG SET OF STANDARDS. 11:40:04 I WOULD ADD A COMMENT THAT I THINK LEARNING WHAT WE'RE 11:40:07 LEARNING THROUGH THIS WILL AUGMENT SOME OF THOSE STANDARDS 11:40:09 AND WILL BE HELPFUL. GENTLEMEN FROM MICHIGAN'S 11:40:16 TIME HAS ECK SPIDER SPOOIED. CHAIR RECOGNIZES THE GENTLEMAN 11:40:20 FROM CALIFORNIA, MR. WAXMAN. YESTERDAY, CHAIRMAN STUPAK 11:40:24 AND I SENT A LETTER TO TONY HAYWARDS CEO OF BP RAISING 11:40:31 QUESTIONS BE AT DESIGN AND SAFETY DECISIONS MADE BY BP AT 11:40:38 ITS McCONDO WELL. THE LETTER QUESTIONED DECISIONS 11:40:44 MADE BY BP THAT SEEMS TO INCREASE THE RISK OF 11:40:48 CATASTROPHIC BLOWOUT. I WOULD LIKE TO ASK EACH OF YOU 11:40:52 IF YOU THINK MISS TAKES WERE MADE BY BPP MR. TILLERSON. 11:40:57 WELL, IN REVIEWING THE LETTER THAT YOU BOTH SENT, IT APPEARS 11:41:00 CLEAR TO ME THAT A NUMBER OF DESIGN STANDARDS A THAT I WOULD 11:41:05 CONSIDER TO BE THE INDUSTRY NORM WERE NOT FOLLOWED. 11:41:07 LET ME GET THROUGH THIS QUICKLY. 11:41:08 YOU THINK THAT THEY MADE MISTAKES? 11:41:11 THE ANSWER YOU WOULD GIVE WOULD BE YES? 11:41:14 WE WOULD NOT HAVE DRILLED THE WELL THE WAY THEY DID. 11:41:16 HOW ABOUT YOU, MR. WATSON? WE'VE JUST HAD A CHANCE TO 11:41:20 TAKE A LOOK AT YOUR LETTER. IT'S QUITE LENGTHY OF COURSE 11:41:24 WITH A NUMBER OF DETAILED COMMENTS. 11:41:27 OUR EXPERTS ARE TAKING A LOCK AT T I'VE TRED MYSELF. 11:41:30 AND FROM WHAT I'VE SEEN, IT'S CONSISTENT WITH WHAT THE JOINT 11:41:34 INDUSTRY TASK FORCE FOUND, WE HAVE AN OPPORTUNITY TO RAISE THE 11:41:38 BAR, IF YOU WILL, ON STANDARDS IN THE INDUSTRY AND IT CERTAINLY 11:41:42 APPEARS FROM YOUR LETTER THAT NOT ALL STANDARDS THAT WE WOULD 11:41:48 RECOMMEND OR THAT WE WOULD EMPLOY WERE IN PLACE. 11:41:50 DO ANY OF YOU DISAGREE WITH THE STATEMENT THAT BP MADE 11:41:56 MISTAKES? OKAY. 11:41:58 IT'S NOT A DISAGREEMENT, IT'S JUST CONFIRMATION THAT WE DON'T 11:42:02 HAVE ALL THE INFORMATION DPUT BUTT FROM THE INFORMATION IN 11:42:04 YOUR LETTER AND WHAT WE KNOW ABOUT THE WELL, A SIMILAR 11:42:07 STATEMENT IT'S THAT NOT A WELL THAT WE WOULD HAVE DRILLED WITH 11:42:11 THAT MEK SETUP AND THERE ARE OPERATIONAL CONCERNS. 11:42:15 MR. WATSON, YOU'RE QUOTED IN THE "THE WALL STREET JOURNAL" AS 11:42:17 SAYING THIS INCIDENT WAS PREVENTIBLE. 11:42:18 YES. WHAT MISS TAKES DID BP MAKE 11:42:21 THAT YOU WOULD NOT HAVE MADE? FIRST, WE WOULD SAY THAT AS 11:42:27 WE LOOK AT THIS INCIDENT, WE NEED TO LET THE INVESTIGATION 11:42:31 RUN ITS COURSE. WHAT WE HAVE DONE IS SINCE THE 11:42:33 FIRST DAYS OF THIS INVESTIGATION AND THIS ACCIDENT, WE'VE 11:42:38 PARTICIPATED IN THE JOINT INDUSTRY TASK FORCE WHERE THE 11:42:41 INDUSTRY -- NOW, YOU MADE THE 11:42:43 STATEMENT -- YOU WERE QUOTED AS SAYING THIS INCIDENT WAS 11:42:47 PREVENTIBLE. YES. 11:42:48 WHAT WOULD YOU HAVE DONE DIFFERENTLY TO PREVENT THE 11:42:51 DISASTER THAT WE'VE NOW ENCOUNTERED? 11:42:54 THERE ARE SEVERAL AREAS THAT APPEAR BASED ON THE INFORMATION 11:42:57 WE'VE SEEN IN THE JOINT INDUSTRY TASK FORCE AND BASED ON THE 11:43:00 INFORMATION WE'VE BEEN ABLE TO GATHER THAT SUGGEST THAT 11:43:03 PRACTICES WE WOULD NOT PUT IN PLACE WERE EMPLOYED HERE? 11:43:06 SPECIFICALLY. FOR EXAMPLE THE CASING DESIGN 11:43:09 AND THE MECHANICAL BARRIERS THAT WERE PUT IN PLACE APPEAR TO BE 11:43:15 DIFFERENT THAN WHAT WE WOULD USE. 11:43:16 GARY LICKETT HEADS CHEVRON'S EXPLOATION AND PRODUCTION UNIT. 11:43:22 HE SAID IN "THE WALL STREET JOURNAL" THAT CHEVRON USES A 11:43:24 SAFER WELL DESIGN. CAN YOU TELL US WHY THE CHEVRON 11:43:27 WELL DESIGN IS SAFER THAN BP'S? IT'S THOSE TWO 11:43:33 CHARACTERISTICS I COMMENT THERE ON TOP OF WHAT WE THINK ARE 11:43:35 EFFECTIVE PROCEDURES AND OTHER AUTHORITIES THAT WE HAVE IN 11:43:38 PLACE THAT WOULD HAVE PREVENTED THIS INCIDENT. 11:43:42 WELL, IN THE WELL DESIGN, BP HAS A CHOICE OF TWO PRIMARY 11:43:48 OPTIONS, CAN COULD LOWER A FULL STRING OF CASING FROM THE TOP OF 11:43:51 THE WELL TO THE BOTTOM OF THE WELL OR HANG A LIFTER -- HANG A 11:43:55 LINER FROM THE LOWER END OF THE CASING ALREADY IN THE WELL AND 11:43:58 INSTALL A TIE-BACK ON TOP OF THE LINER. 11:44:02 BP PLAN REVIEW RECOMMENDED AGAINST THE FULL STRING OF 11:44:06 CASING BECAUSE IT WAS IT WOULD CREATE AN OPEN ANALYST TO THE 11:44:11 WELL HEAD AND MAKE THE SEAL ASSEMBLY THE ONLY BAYER TO GAS 11:44:15 FLOW IF THE CEMENT JOB FAILED. WOULD YOU HAVE CHOSEN THE OTHER 11:44:19 OPTION? AND DO YOU CHOOSE THE OTHER 11:44:21 OPTION IN YOUR WELLS? WE WOULD NOT HAVE RUN A FULL 11:44:24 STRING. YOU WOULD NOT HAVE? 11:44:26 OKAY. MR. TILLERSON, YOU MADE A 11:44:29 SIMILAR CLAIM TODAY, YOU TESTIFIED THAT QUOTE, WHAT WE DO 11:44:31 KNOW IS THAT WHEN YOU PROPERLY DESIGN WELLS FROM THE RANGE OF 11:44:36 RISK ANTICIPATED FOLLOW ESTABLISHED PROCEDURE, BUILD IN 11:44:39 LAYERS OF REDUNDANCY, PROPERLY INSPECT AN MAINTAIN EQUIPMENT, 11:44:43 TRAIN OPERATORS, CONDUCT TESTS AND DRILLS, AND FOCUS ON SAFE 11:44:48 OPERATIONS AND RISK MANAGEMENT, TRAGIC INCIDENTS LIKE THE ONE IN 11:44:51 THE GULF OF MEXICO TODAY SHOULD NOT OCCUR. 11:44:54 MR. TILLERSON, YOU'VE SAID THIS BLOWOUT WOULD NOT HAVE HAPPENED 11:44:58 IF EXXONMOBIL HAD BEEN DRILLING THE WELL. 11:45:01 TELL US WHAT YOU WOULD HAVE DONE DIFFERENTLY IN AND PLEASE BE 11:45:05 SPECIFIC. WELL IT WOULD HAVE BEEN A 11:45:07 DIFFERENT WELL DESIGN. WE WOULD HAVE RUN A LINER, A 11:45:10 TIE-BACK LINER. WE WOULD HAVE USED A DIFFERENT 11:45:13 CEMENT FORMULATION, WE HAVE TESTED FOR CEMENT INTEGRITY 11:45:17 BEFORE WE CIRCULATED THE KILL WEIGHT MUD OUT. 11:45:20 WE WOULD HAVE HAD THE LOCK ARE SEAL RING BEFORE PROCEEDING. 11:45:24 AND LEADING UP TO ALL OF THAT, THOUGH, THERE WAS CLEARLY AND 11:45:28 THIS IS JUST BASED ON WHAT'S BEEN PUBLICLY MADE AVAILABLE, 11:45:32 THERE WERE CLEARLY A LOT OF INDICATIONS OR PROBLEMS WITH 11:45:35 THIS WELL GOING ON FOR SOME PERIOD OF TIME LEADING UP TO THE 11:45:39 FINAL LOSS OF CONTROL. AND WHY THOSE WEREN'T 11:45:48 DEALT WITH DIFFERENTLY, I DON'T KNOW. 11:45:49 WE DON'T HAVE ALL THE INFORMATION, SO I WANT TO ECHO 11:45:52 WHAT MR. WATSON SAID. WE ARE VERY INTERESTED, AS I 11:45:54 SAID IN MY REMARK, WE WANT TO SEE THE FULL INVESTIGATION 11:45:57 BECAUSE WE WANT TO UNDERSTAND, WAS THERE SOMETHING ELSE PEOPLE 11:46:02 WERE LOOKING AT THAT CAUSED THEM TO MAKE THE DECISIONS THEY MADE 11:46:09 AS OPPOSED TO DECISIONS THAT WE WOULD HAVE MADE DIFFERENTLY THAT 11:46:12 LED TO THE ULTIMATE LOSS OF THE WELL. 11:46:13 THANK YOU, MY TIME IS RUNG OUT, BUT LET ME JUST MAKE A 11:46:17 STATEMENT, MR. CHAIRMAN. I FEEL MORE CONFIDENT IN THESE 11:46:19 ASSURANCES IF I DIDN'T REALIZE THAT EACH THE OIL SPILL 11:46:25 RESPONSES PLANS FROM THE COMPANIES ARE VIRTUALLY 11:46:29 IDENTICAL TO BP'S. YOU SAY YOU WOULD HAVE DONE 11:46:32 THINGS DIFFERENTLY. I WOULD THINK THAT CERTAINLY IN 11:46:36 RETROSPECT THAT'S A STATEMENT YOU WOULD CERTAINLY MAKE I HOPE 11:46:38 THAT'S TRUE, BUT THE RECORD DOES NOT SUPPORT THAT THE OTHER 11:46:42 COMPANIES HERE TODAY HAVE BEEN MORE PREPARED THAN BP. 11:46:50 SO I THANK YOU FOR YOUR TESTIMONY. 11:46:53 WE'VE GOT TO LEARN FROM THIS EXPERIENCE AND MOVE ON, BUT WE 11:46:56 HAVE TO LEARN THAT THESE THINGS HAVE TO BE THOUGHT OUT AND THE 11:47:00 PLANS SHOULD NOT JUST BEEN COOKIE CUTTER PLANS. 11:47:03 THANK YOU, MR. CHAIRMAN. OKAY. 11:47:05 THE CHAIRMAN'S TIME HAS EXPIRED. THE CHAIR RECOGNIZES THE RANKING 11:47:10 MEMBER OF THE FULL COMMITTEE THE GENTLEMAN FROM TEXAS, 11:47:12 MR. BARTON. THANK YOU, MR. CHAIRMAN. 11:47:14 THE STAKES ARE A LOT HIGHER AND CONSEQUENCES ARE MUCH MORE DIRE 11:47:18 BUT THIS REMINDS A LITTLE BIT OF MONDAY MORNING CALL IN RADIO 11:47:24 TALK SHOW AFTER THE RED SKOES HAVE BLOWN ANOTHER ONE. 11:47:27 EVERYBODY HAS AN IDEA OF WHAT SHOULD HAVE BEEN DONE AND NOW 11:47:30 THAT THEY KNOW WHAT WAS DONE AND IT WASN'T DONE PROPERLY, THEY'RE 11:47:34 MUCH SMARTER THAN THE COACH ON THE FIELD AND THE QUARTERBACK ON 11:47:37 THE FIELD AT THE TIME. SO IT'S VERY EASY TO SECOND 11:47:42 GUESS AND TO POINT OUT THE PROBLEMS. 11:47:47 THERE'S KIND OF GOOD NEWS/BAD NEWS. 11:47:49 THE BAD NEWS IS THAT I AGREE WITH CHAIRMAN WAXMAN. 11:47:53 JUDGMENT CALLS WERE MADE THAT NOW THAT WE'RE -- NOW THAT WE 11:48:01 KNOW WHAT HAPPENED, THOSE WERE THE IMBRORP JUDGMENT. 11:48:03 THAT'S BAD. BUT THE GOOD NEWS IS AND THIS IS 11:48:07 WHAT OUR INDUSTRY CEOs ARE SAYING, I THINK, IS THAT IT 11:48:11 PREVENTIBLE. YOU KNOW, I DON'T KNOW WHAT THIS 11:48:13 TASK FORCE IS GOING DO RECOMMEND THAT MR. TILLERSON HAS ALLUDED 11:48:19 TO, BUT IF THE RECOMMENDATION IS THAT BEST PRACTICES ON THESE 11:48:23 DEEP WELLS OUGHT TO HAVE THESE DOUBLE SLEEVES, I THINK WE COULD 11:48:27 PUT THAT INTO REGULATION. IF WE NEED TO. 11:48:30 IF THE BEST PRACTICES IS YOU OUGHT TO PUT THE LOCKOUT COLLAR 11:48:33 ON THE WELL BEFORE YOU DO THE FINAL CEMENTING JOB, I THINK 11:48:36 THAT'S SOMETHING THAT CAN BE DONE. 11:48:37 IF THE BEST PRACTICES IS THAT WE OUGHT TO REALLY FOCUS ON 11:48:43 DEGASSING THE MUD BEFORE YOU RECIRCULATE IT AND DO THAT FINAL 11:48:48 STAGE WHEN THIS ACCIDENT OCCURRED, I THINK WE'LL GO ALONG 11:48:51 WITH THAT. THESE ARE NOT HUGE TECHLY 11:48:55 COMPLEX, WE JUST DON'T KNOW HOW TO SOLVE THAT PARTICULAR 11:48:59 PROBLEM. SO THAT'S THE GOOD NEWS. 11:49:02 NOW MY FIRST QUESTION IS TO THE CEO OF BRITISH PETROLEUM OR THE 11:49:08 PRESIDENT OF BRITISH PETROLEUM, US HATS FEDERAL GOVERNMENT TOLD, 11:49:13 ASKED THAT YOU DO ANYTHING THAT YOU JUST FLAT SAID NO TO? 11:49:17 HAVE THEY PROPOSED SOME SOLUTIONS THAT YOU'VE TURNED 11:49:20 DOWN THAT IN HIND SIGHTS IF YOU WOULD HAVE JUST DONE WHAT YOU 11:49:24 WERE TOLD DO, THE WELL WOULDN'T CONTINUE TO BE LEAKING? 11:49:27 NO, I DON'T KNOW OF ANY SOLUTIONS THAT HAVE BEEN BOROUGH 11:49:31 POSED THAT WE HAVEN'T DONE. AND IT IS BP'S RESPONSIBILITY 11:49:36 FOR THE WELL, I MEAN YOU ARE THE OWNER OF THE WELL. 11:49:38 BUT IN TERMS OF MITIGATION AND IN TERMS OF THE CLEANUP ON THE 11:49:43 BEACH, DID BP TELL THE PRESIDENT OF THE UNITED STATES THAT WE 11:49:47 SHOULDN'T LET LOUISIANA PEOPLE GO OUT AND DO THOSE SAND BERMS? 11:49:50 WELL, WHAT WE -- NO, WHAT WE'VE ALWAYS SAID IS WHAT WE'RE 11:49:55 TRYING TO DO IS WORK THROUGH UNIFIED COMMAND. 11:49:58 DECISIONS FOR OPERATIONAL MATTERS LIKE THAT GO THROUGH 11:50:01 UNIFIED COMMAND. THEY DID GO THROUGH UNIFIED 11:50:06 THAT WAS A UNIFIED COMMAND DECISION. 11:50:10 ARE ANY OF THESE GOVERNMENT HERE BECAUSE YOU WERE 11:50:15 SUBPOENAED? YOU ARE ALL HERE VOLUNTARILY? 11:50:18 YOU HAVE CHOSE ON THE BE HERE? ISN'T THAT CORRECT? 11:50:21 IN TERMS OF BP, THIS TELEVISION CAMERA THAT'S SHOWING THE OIL, 11:50:26 ISN'T THAT YOUR TELEVISION CAMERA? 11:50:30 THAT'S THE REMOTE OPERATE TORE A REQUEST. 11:50:42 YOU HAVEN'T BEEN TOLD BY FEDERAL LAW THAT YOU HAVE TO DO THAT? 11:50:45 NO. WE AGREED WITH DEPARTMENT OF 11:50:48 INTERIOR AND OTHERS TO SUPPLY RIGHT OFF THE BAT. 11:50:52 WE HAVE RESPONDED TO REQUESTS TO OPEN THAT UP TO THE PUBLIC AND 11:50:55 OTHER CONGRESSIONAL MEMBERS. I WANT TO ASK THIS QUESTION 11:51:01 TO EXXON MOBILE AND CHEVRON. IF WE WERE TO MAINTAIN THIS 11:51:08 M MORATORIUM, HOW DOES THAT AFFECT 11:51:11 YOUR DECISION ON HOW THE GET THE INFORMATION THAT AMERICA NEEDS 11:51:17 TO AMERICA? DO YOU SIT ON YOUR HANDS OR LOOK 11:51:24 FOR THE ENERGY SOMEWHERE ELSE? WE WILL REDIRECT OUR HUMAN 11:51:28 RESOURCES TO OTHER PARTS OF THE WORLD WHERE WE ARE ALLOWED TO 11:51:32 WORK AND WILL REDIRECT THE RIGS AND EQUIPMENT. 11:51:35 THIS STUFF IS TOO EK PENSIVE TO LET IT SIT AROUND. 11:51:39 WHAT'S IT COST PER DAY? WELL THE SPREAD RATE IS ABOUT 11:51:43 A MILLION DOLLARS A DAY? DO YOU ECHO WHAT MR. EXXON 11:51:50 JUST SAID? TWO OF WHICH WE ARE OPERATING 11:51:57 AT THE TIME OF THE INCIDENT. NOW I AM TOLD THAT THE 11:52:07 CHINESE OIL COMPANIES ARE DRILLING OFF THE COAST OF CUBA 11:52:11 WHICH MEANS THEY ARE DRILLING OFF THE COAST OF FLORIDA. 11:52:15 DO ANY OF YOU GENTLEMEN HAVE REASON TO BELIEVE THAT THE 11:52:19 CHINESE OIL COMPANIES ARE SAFER AND MORE CONCERNED ABOUT SAFETY 11:52:23 THAN U.S. OIL COMPANIES? WITH I CAN'T SPEAK FOR THOSE 11:52:39 COMPANIES. HAVE THEY LED THE WAY IN ANY 11:52:43 AREA THAT YOU ARE AWARE OF? I AM NOT AWARE OF THOSE. 11:52:45 OKAY. OKAY. 11:52:50 LAST QUESTION. WE HAVE HEARD A LOT IN THE 11:52:54 SCIENTIFIC COMMUNITY ABOUT NEW IDEAS TO ONCE YOU HAVE AN OIL 11:52:59 SPILL TO INSERT NATURAL ORGANISMS THAT BIODEGRADE AND 11:53:05 TURN IT INTO NON-HARMFUL SUBSTANCES. 11:53:10 WE WANT TO PREVENT THE SPILL. IF WE CAN'T PREVENT IT WE WANT 11:53:13 TO STOP IT. IF YOU HAVE ONE IS THERE HOPE 11:53:16 THAT WE WILL HAVE ORGANISMS THAT BIODEGRADE THE OIL QUICKLY SO 11:53:23 THAT IT DOESN'T HARM THE ENVIRONMENT? 11:53:31 I WOULD ONLY COMMENT THAT IN EFFECT, THAT'S PART OF WHAT THE 11:53:45 D DISPERSENT ACTION DOES. 11:53:59 THEY ARE ACTUALLY LESS TOXIC THAN SOAP. 11:54:03 I WANT TO THANK YOU FOR LETTING ME GO OVER IS AND KEEP 11:54:11 OUR INDUSTRY AND ENVIRONMENT SAFE AND GROWING. 11:54:17 THE CHAIR RECOGNIZES THE GENTLEMAN FROM MICHIGAN. 11:54:28 GENTLEMEN, YES OR NO, EACH IF YOU PLEASE. 11:54:32 YOU HAVE SEEN, WELL, THIS DOCUMENT WHICH IS THE DEPARTMENT 11:54:36 OF INTERIOR'S DO ANY OF YOU HAVE ANY ON JEGSS TO THE 11:54:49 R RECOMMENDATIONS CONTAINED THERE 11:54:53 IN. I HAVE LOOKED AT THE DOCUMENT 11:54:56 AND HAD SIGNIFICANT INPUT THEY MAY BE INTRODUCING MORE RISK IN 11:55:13 AN EFFORT, THEY MAY ACTUALLY BE INCREASING THE RISK IN SOME 11:55:20 AREAS. WHAT RISK ARE WE TRYING TO 11:55:32 MITIGATE. THERE ARE AREAS I DO HAVE 11:55:48 CONCERNS ABOUT. DOES THAT GENERALLY ADDRESS 11:55:50 YOUR FEELINGS EACH? THANK YOU. 11:56:04 THE DEEP WATER HORIZONS CONTAINS A SINGLE SET OF BLIND SHEER 11:56:10 RAMS. THEY WERE SUPPOSED TO CUT 11:56:12 THROUGH THE PIPE IN THE CASE OF EMERGENCY AND STOP THE FLOW OF 11:56:15 OIL AND GAS INTO THE WATER. THEY OBVIOUSLY FAILED TO CARRY 11:56:22 OUT THAT FUNCTION. DO YOU SUPPORT THE IDEA THAT WE 11:56:25 SHOULD HAVE DOUBLE OR REDUNDANT ONES? 11:56:29 WE HAVE RECOMMENDED ADDITIONAL REDUNDANCY. 11:56:41 AGAIN, IF YOU PLEASE, HOW MANY VESSELS DO YOU HAVE DOWN 11:56:52 THERE IN THE TO COLLECT THE OIL THAT IS ACHIEVED. 11:57:01 DO YOU HAVE ONE, SEVERAL, MORE ON THE ROAD. 11:57:05 ARE YOU GOING RUN OUT OF CAPACITY TO RECEIVE THE OIL THAT 11:57:08 YOU ARE RETRIEVING? AND THEN WE HAVE AN ADDITIONAL 11:57:22 TWO ON THE WAY THAT SHOULD BE OUTFITTED AND FUNCTIONAL 11:57:27 POTENTIALLY BY MID JULY. IN TERMS OF TAKE PROGRESS 11:57:35 DUCTION OFF THE WELL, WE WILL HAVE UP TO ROUGHLY SIX THAT 11:57:38 WOULD TAKE DIRECT PRODUCTION IN THE VERY NEAR FUTURE. 11:57:41 NOW I NOTE THAT YOU ARE HAUFR BURNING SOME OF THE RETRIEVED 11:57:48 OIL FOR ONE OF SPACER CAPACITY TO HANDLE IT. 11:57:51 IS THAT STILL GOING ON? THE OFFSHORE BURNING OCCURS 11:57:58 WHEN THERE IS ENOUGH OIL TO BOOM AND BURN. 11:58:09 WE HAVE CAPACITY TO BURN OIL THAT IS PRODUCED UP TO THAT 11:58:16 VESSEL. YOU ARE SUPPOSED TO, I 11:58:19 BELIEVE, HAVE A PLAN TO ADDRESS SPILLS OR CATASTROPHIC EVENTS. 11:58:27 I AM ASSUMING THAT EACH OF YOU DO. 11:58:29 WHAT IS THE DATE -- FIRST OF ALL, IS THAT PLAN FOR THE WHOLE 11:58:36 OF YOUR OPERATION OR IS IT. THERE IS A GULF REGIONAL PLAN 11:59:02 THE 12:00:24 REX TILLERSON: THE COAST GUARD HAS COMMAND OF THE INCIDENT AFTER 12:00:29 YOU HAVE THE SPILL. THE RESPONSIBLE PARTY WORKS WITH 12:00:34 THE COAST GUARD YOUR ACTIONS HAVE TO BE APPROVED BY THE COAST 12:00:46 GUARD BUT IT IS DONE IN A JOINT FASHION AND THE COAST GUARD 12:00:50 MAKES DETERMINATION OF WHEN CLEAN UP ACTIVITIES SHOULD BE 12:00:54 UNDERTAKEN AND WHEN YOU SHOULD STOP. 12:01:10 BUT I ALSO AGREE WITH THE STATEMENT THAT MUCH OF THIS. 12:01:20 NOW, IF YOU PLEASE, MR. McKAY, IN THE CASE THAT WE'RE 12:01:31 DISCUSSING HERE, HAS THE COAST GUARD MADE ANY RECOMMENDATIONS 12:01:35 WITH WHICH BP DID NOT AGREE? NO, I DON'T THINK THERE HAVE 12:01:44 BEEN ANY RECOMMENDATIONS. THE DECISIONS HAVE BEEN WORKED 12:01:48 TOGETHER THROUGH THE UNIFIED STRUCTURE AND MAJOR DECISIONS 12:01:52 HAVE OCCURRED UNDER THAT STRUCTURE AND WITH OUR SUPPORT. 12:01:55 HAS THERE BEEN ANY CONFLICT BETWEEN THE ADMINISTRATION AND 12:02:02 BP WITH REGARD TO THE CLEAN UP THAT HAS BEEN GOING FORWARD? 12:02:12 THERE HAVE BEEN DEA BAITS ABOUT EMPLOYMENT AND THAT IS 12:02:17 PART OF THE STRUCTURE BUT I THINK ALL THE MAJOR DECISIONS 12:02:20 THAT HAVE BEEN MADE HAVE BEEN SUPPORTED BY BP. 12:02:27 IS IT YOUR VIEW THAT THE GOVERNMENT SHOULD TAKE OVER THE 12:02:30 CLEAN UP OR IS IT YOUR VIEW THAT THAT SHOULD REMAIN AS IT IS OR 12:02:39 SHOULD IT BE THE PRESENCE PL AND SOLE RESPONSIBILITY OF THE 12:02:45 OPERATOR OR THE. THIS IS EFFECTIVE. 12:02:53 I THINK THIS ACTUALLY -- I UNDERSTAND EVERYONE'S 12:02:59 FRUSTRATION WITH HOW LONG THIS IS TAKING. 12:03:07 IT'S UNFORTUNATE THAT WE CAN'T GET IT STOPPED AT THE SOURCE. 12:03:11 I THINK THE C NOW IN ONE RECOMMENDATION HE 12:03:29 RECOMMENDS THAT THERE BE THE FINALIZATION OF A RULE THAT 12:03:31 WOULD REQUIRE THE OPERATORS OF DRILLING WELLS TO DEVELOP ROBUST 12:03:38 SAFETY AND MANAGEMENT SYSTEMS FOR OFFSHORE DRILLING 12:03:42 OPERATIONS. IN 2009 WHEN THIS WAS FIRST 12:03:45 PROPOSED, THE OFF-SHORE R OPERATORS COMMITTEE RAISED KURNS 12:03:55 ABOUT IT. WOULD YOU SUPPORT -- IS THERE 12:04:02 ANYONE AT THE TABLE WHO WOULD NOT SUPPORT THE FINALIZATION OF 12:04:07 THAT RULE? I NOTICE YOU HAVE THE SAME 12:04:14 PROBLEM AS I DO. I JUST WANT TO BE CLEAR WHAT 12:04:22 YOU ARE REFERRING TO. I'M NOT SURE I UNDERSTAND 12:04:30 EXACTLY WHAT RULE YOU ARE REFERRING TO. 12:04:32 ONE OF THE SECRETARY'S RECOMMENDATION IS THAT THE 12:04:36 FINALIZATION OF THE RULES R 12:04:41 REQUIRING OPERATORS OF DRILLING WELLS TO DEVELOP ROBUST SAFETY 12:04:49 AND MY QUESTION TO YOU, GENTLEMEN, WOULD YOU SUPPORT 12:04:57 SUCH A RECOMMENDATION? I WOULD HAVE TO GO BACK AND 12:05:06 LOOK AT THE SPECIFICS. I DON'T REMEMBER ENOUGH OF THE 12:05:12 DETAILS. I AM. 12:05:25 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS. 12:05:34 I WANT TO POSE THE SAME QUESTION. 12:05:36 EVERYONE IN THE PANEL BEFORE US IS THERE ANY IDEA THAT YOU HAVE 12:05:43 AT THIS POINT THAT WOULD STOP IS THERE SOMETHING YOU COULD SHARE 12:05:50 WITH US THAT HAS NOT BEEN TRIED THAT WILL BRING A RAPID 12:05:54 CONCLUSION TO THIS? WE KNOW BP DOESN'T HAVE THAT 12:05:57 IDEA. DO ANY OF THE REST OF YOU?
SENATE OIL SPILL PRESSER P1
Gulf Oil Spill hearing/Senate Homeland Security and Govt Affairs Cmte Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. PANEL #1 The Honorable Janet A. Napolitano Secretary U.S. Department of Homeland Security Rear Admiral Peter V. Neffenger Deputy National Incident Commander, U.S. Coast Guard U.S. Department of Homeland Security 14:36:18 Napolitano & Neffenger arrive 14:36:58 LIEBERMAN STATEMENT 14:37:46 our focus is on preparedness and response of our government and the private businesses 14:39:13 secretary of HS charged with coordinating response to major disasters 14:39:40 USCG responsible for managing oil spill cleanup *14:40:17 in fact much of the work being done by contractors hired by BP 14:40:39 oil companies spill response must be approved by MMS 14:41:59 did government have knowledge of disaster independent of what BP was telling it? 14:42:51 I regret that MMS leadership has chosen not appear before our committee today. *14:43:59 Bp required to submit plan to MMS. Under law this can be specific to rig. Only 10 years ago BP filed only regional plan. MMS satisfied without asking for more. (*satisfied with only regional response plan, rather than specific? *14:48:35 until those questions are answered satisfactorily, I don't see how any new offshore wells can be drilled 14:49:14 COLLINS statement 14:49:34 remember personal tragedy for 11 workers 14:51:23 how do we turn off this faucet of oil that is stuck open nearly a mile under water? 14:53:27 we must examine whether we need special requirements for drilling permits in these challenging conditions - believe president is right 14:54:05 we need to explore what level of preparedness MMS requires. 14:56:46 need to take a close look at liability caps to see if they are still accurate 14:56:58 this oil spill will be recorded as an epic catastrophe 14:57:31 NAPOLITANO statement 14:58:26 thanks men and women of coast guard *14:59:04 government has brought all resources to bear to limit impacts and make sure.made whole by British Petroleum SEGMENT [1] 2010/05/17 ************************************************ Gulf Coast Oil Spill Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. PANEL #1 The Honorable Janet A. Napolitano Secretary U.S. Department of Homeland Security Rear Admiral Peter V. Neffenger Deputy National Incident Commander, U.S. Coast Guard U.S. Department of Homeland Security 14:36:45 SENATOR JOE LIEBERMAN: GOOD AFTERNOON. THE HEARING WILL COME TO ORDER. 14:36:54 WE CONVENE TODAY TO ASSESS THE PRIVATE AND PUBLIC SECTOR 14:36:59 RESPONSE TO WHAT IS RAPIDLY AND OMINOUSLY BECOMING THE WORST OIL 14:37:04 SPILL IN AMERICA'S HISTORY. WE DO SO AS PART OF BELIEVE 14:37:08 COMMITTEE'S RESPONSIBILITY TO OVERSEE THE OPERATIONS OF 14:37:10 GOVERNMENT. AND IN THIS CASE SPECIFICALLY 14:37:15 THE INCIDENT MANAGEMENT OPERATIONS OF THE DEPARTMENT OF 14:37:18 HOMELAND SECURITY AND THE UNITED STATES COAST GUARD. 14:37:20 WE'RE NOT HERE TO DETERMINE HOW THE EXPLOSION OF THE OIL 14:37:25 WELL-KNOWN AS DEEPWATER HORIZON HAPPENED NOR DO WE SEEK TO 14:37:31 DETERMINE WHICH ELEMENTS OF THE WELL FAILED AND WHO'S 14:37:32 RESPONSIBLE TO THAT. THOSE ARE CRITICALLY IMPORTANT 14:37:34 QUESTIONS. BUT OTHER CONGRESSIONAL 14:37:39 COMMITTEES, EXECUTIVE BRANCH AGENCIES AND PRIVATE GROUPS HAVE 14:37:41 ALREADY BEGUN TO EXPLORE THOSE QUESTIONS. 14:37:46 OUR FOCUS TODAY IS ON PREPAREDNESS AND RESPONSE. 14:37:50 THE PREPAREDNESS AND RESPONSE OF OUR GOVERNMENT AND THE PRIVATE 14:37:57 BUSINESSES INVOLVED TO THIS ACCIDENT AND OIL SPILL AFTER 14:37:59 THEY OCCURRED. WHERE THE OIL COMPANIES AND 14:38:05 GOVERNMENT AGENCIES PREPARED FOR A DEEP WATER BLOWOUT LIKE THIS 14:38:08 ONE. AND HOW HAVE THEY PERFORMED IN 14:38:10 RESPONSE? THOSE ARE THE BIG QUESTIONS THAT 14:38:15 WE HOPE TO BEGIN TO ANSWER THIS AFTERNOON. 14:38:18 WE OWE IT TO THE AMERICAN PEOPLE TO LEARN FROM THIS CATASTROPHE, 14:38:21 NOT ONLY SO THAT WE CAN DO EVERYTHING WE CAN TO PREVENT 14:38:24 ANYTHING LIKE IT FROM HAPPENING AGAIN, BUT ALSO HAVING IN MIND 14:38:31 OUR FOCUS ON PREPAREDNESS IN RESPONSE SO THAT WE CAN 14:38:34 GUARANTEE THAT IF IT DOES HAPPEN AGAIN, THE OIL COMPANIES AND THE 14:38:39 GOVERNMENT WILL NOT BE LEFT TO SCURRY ABOUT TRYING TO FIGURE 14:38:42 OUT HOW TO STOP THE OIL GUSHING INTO THE GULF LIKE FIREFIGHTERS 14:38:48 TRYING TO EXTINGUISH FIRES ALREADY BURNING AND CONSUMING A 14:38:51 NEIGHBORHOOD. INSTEAD, HOPEFULLY THEY WILL 14:38:55 HAVE LEARNED LESSONS FROM THIS SPILL AND WILL BE MUCH BETTER 14:38:59 PREPARED TO RESPOND QUICKLY. UNDER THE HOMELAND SECURITY ACT, 14:39:05 AND HOMELAND SECURITY PRESIDENTIAL DIRECTIVE NUMBER 14:39:08 FIVE, THE SECRETARY OF HOMELAND SECURITY IS CHARGED WITH 14:39:12 COORDINATING THE FEDERAL RESPONSE TO MAJOR DISASTERS. 14:39:17 THE SECRETARY IS FURTHER CHARGED WITH COORDINATING THE ACTIVITIES 14:39:19 OF THE PRIVATE SECTOR AND NONGOVERNMENTAL PLAYERS IN 14:39:25 RESPONSE TO A DISASTER AND MUST ENSURE THAT DISASTER INFORMATION 14:39:27 IS GATHERED AND DISSEMINATED TO THE PUBLIC AND PUBLIC AND 14:39:31 PRIVATE SECTOR OFFICIALS. THE UNITED STATES COAST GUARD IS 14:39:38 SPECIFICALLY RESPONSIBLE FOR MANAGING A MARINE OIL SPILL 14:39:40 CLEANUP. A HOST OF OTHER AGENCIES OF OUR 14:39:46 GOVERNMENT, THE MINERALS MANAGEMENT SERVICE WITHIN THE 14:39:49 DEPARTMENT OF INTERIOR, THE NATIONAL OCEAN OGRAPHIC AND THE 14:39:58 ENVIRONMENTAL PROTECTION AGENCY HAVE RESPONSIBILITIES IN THIS 14:40:00 KIND OF CRISIS AND, OF COURSE, THE PRIVATE SECTOR COMPANIES 14:40:05 INVOLVED HERE HAVE ENORMOUS OBLIGATIONS UNDER LAW. 14:40:07 IN FACT, MUCH OF THE ACTUAL CLEANUP IS BEING CONDUCTED BY 14:40:13 CONTRACTORS BP HAS HIRED TO RESPOND TO THE SPILL. 14:40:17 AND IS PROVIDED BY LAW THE PRIVATE COMPANIES RESPONSIBLE 14:40:22 FOR THIS SPILL WILL PAY FOR THE CLEANUP REGARDLESS OF WHO WAS 14:40:25 ACTUALLY CARRYING OUT THE RESPONSE. 14:40:31 WE KNOW THAT THE OIL COMPANIES SPILL RESPONSE PLANS MUST BE 14:40:36 FILED AND APPROVED BY THE MINERALS AND MINING SERVICE FOR 14:40:42 WELLS AND BY THE U.S. COAST GUARD FOR DRILLING VESSELS OR 14:40:47 RIGS BEFORE ANY DRILLING CAN BEGIN. 14:40:51 THIS AFTERNOON WE'RE GOING TO ASK WHETHER BP HAD ADEQUATE 14:40:55 INCIDENT MANAGEMENT AND RESPONSE PLANS IN PLACE AHEAD OF TIME TO 14:41:00 GUIDE THEIR RESPONSE EFFORTS. DID THE MMS REQUIRE SUCH 14:41:07 ADEQUATE INCIDENT MANAGEMENT AND RESPONSE PLANS? 14:41:11 DID THE PLANS SPECIFICALLY COVER THE CONSEQUENCES OF A BLOWOUT 14:41:15 AND OIL GUSHING 5,000 FEET UNDER WATER? 14:41:18 WE WANT TO KNOW WHAT PLANS WERE IN PLACE TO GUIDE THE COAST 14:41:22 GUARD AND OTHER FEDERAL AGENCIES INVOLVED IN THE RESPONSE. 14:41:27 WHAT CAPABILITIES DID THE DEPARTMENT OF HOMELAND SECURITY, 14:41:29 THE DEPARTMENT OF DEFENSE AND OTHER AGENCIES MAKE AVAILABLE IN 14:41:33 THE EARLY DAYS OF THE OIL SPILL. DID THEY ACT QUICKLY ENOUGH? 14:41:39 AND WHAT RESPONSE CAPABILITIES WILL BE MADE AVAILABLE AS THE 14:41:42 DISASTER CONTINUES. WE'RE ALSO GOING TO ASK WHETHER 14:41:46 OUR GOVERNMENT WAS FORCED TO OVERRELY ON THE OIL COMPANIES 14:41:52 EXPERTISE HERE. DID THE GOVERNMENT HAVE 14:41:56 KNOWLEDGE OF THE DISASTER INDEPENDENT OF WHAT BP WAS 14:41:58 TELLING IT? I WOULD SAY MYSELF THAT I'VE 14:42:07 SPENT, SINCE THIS ACCIDENT AND SPILL, SOME TIME STUDYING WHAT 14:42:12 THE LAW REQUIRES OF THE OIL DRILLING COMPANIES IN OUR 14:42:14 GOVERNMENT. AND WHAT SHOULD BE ON THE 14:42:21 RESPONSE PLANS THAT WERE FILED AND APPROVED BY THE U.S. COAST 14:42:26 GUARD AND THE MINERALS AND MINING SERVICE FOR THE DEEP 14:42:29 HORIZON WELL. AND I MUST SAY THAT I EMERGENCY 14:42:34 WITH AN UNSETTLING TENTATIVE CONCLUSION AND QUESTIONS THAT I 14:42:40 HOPE CAN BE ANSWERED TODAY BY OUR WITNESSES. 14:42:44 THERE'S ONE SET OF WITNESSES THAT ARE NOT HERE. 14:42:46 AND I MUST SAY THAT'S FROM MMS. I REGRET THAT THE MMS LEADERSHIP 14:42:53 HAS CHOSEN NOT TO APPEAR BEFORE OUR COMMITTEE TODAY BECAUSE 14:42:58 REALLY THEY NEED TO BE ASKED THE SAME QUESTIONS I'M GOING TO ASK 14:43:02 HOMELAND SECURITY, COAST GUARD AND BP. 14:43:04 BECAUSE MMS, AS I MENTIONED, MUST APPROVE OR REJECT THE OIL 14:43:10 SPILL RESPONSE PLANS FOR WELLS, WHICH IS WHERE THIS ACCIDENT 14:43:15 OCCURRED BEFORE THOSE WELLS CAN BE DRILLED. 14:43:17 THE SECRETARY OF THE INTERIOR IN WHICH MMS IS HOUSED WILL FIRST 14:43:21 APPEAR TOMORROW BEFORE ITS COMMITTEE -- THE DEPARTMENT'S 14:43:25 COMMITTEE OF ORIGINAL JURISDICTION, THE ENERGY AND 14:43:26 NATURAL RESOURCES COMMITTEE. BUT I DO WANT TO SAY HERE THIS 14:43:30 AFTERNOON THAT IF APPROPRIATE AND CONSTRUCTIVE, OUR COMMITTEE 14:43:33 WILL ASK THE SECRETARY AND/OR LEADERSHIP OF THE MMS TO APPEAR 14:43:38 BEFORE US AT A LATER DATE. BUT HERE IN BRIEF IS SOME OF 14:43:43 THE -- WHAT I'VE CONCLUDED TENTATIVELY BASED ON MY OWN 14:43:47 INQUIRY AND THE QUESTIONS I BELIEVE MOST NEED TO BE ANSWERED 14:43:50 BY OUR WITNESSES. BP WAS REQUIRED TO SUBMIT AN OIL 14:43:54 RESPONSE PLAN TO THE MMS. UNDER THE LAW, THIS PLAN CAN BE 14:44:02 REGIONAL OR SPECIFIC TO A PARTICULAR WELL AND RIG. 14:44:05 ALMOST TEN YEARS AGO, IN DECEMBER, 2000, BP FILED ONLY A 14:44:10 REGIONAL RESPONSE PLAN. AND THE MMS ACCEPTED IT WITHOUT 14:44:15 ASKING FOR MORE. SO BP SATISFIED ITS LEGAL 14:44:19 REQUIREMENT. BUT THE QUESTION IS, WAS IT 14:44:28 ADEQUATE AND SHOULD THE MMS ASKED FOR MORE. 14:44:31 IT WAS MOST RECENTLY REVISED IN JANUARY OF LAST YEAR. 14:44:34 SO MY FIRST QUESTION IS, SHOULD THE GOVERNMENT HAVE BEEN 14:44:37 SATISFIED WITH ONLY A REGIONAL RESPONSE PLAN INSTEAD OF ONE FOR 14:44:40 EACH WELL? AND A REGIONAL RESPONSE PLAN 14:44:43 THAT WAS FILED ALMOST A DECADE AGO. 14:44:46 SECOND AND MORE IMPORTANT, DID OUR GOVERNMENT THROUGH THE 14:44:52 MINERALS AND MINING SERVICE REQUIRE AN OIL SPILL RESPONSE 14:44:56 PLAN ADEQUATE TO THE WIDEST RANGE OF POSSIBLE DANGERS 14:45:02 INCLUDING THE FAILURE OF A BLOWOUT PREVENTER? 14:45:04 IT SURE APPEARS THAT THEY DID NOT. 14:45:08 THE RESPONSE PLAN WHICH BP FILED AND WHICH WAS APPROVED BY THE 14:45:13 MINERALS AND MINING SERVICE AS REQUIRED INCLUDED AN APPENDIX 14:45:19 WHICH IDENTIFIES WORST CASE SPILL SCENARIOS AND PROPOSED 14:45:21 METHODS FOR RESPONDING. UNDER MMS REGULATIONS, THE PLAN 14:45:29 MUST ADDRESS AN UNCONTROLLED BLOWOUT AT A WELLS HIGHEST 14:45:37 CAPACITY AND AT ITS PLAN BP FORESAW A WORST CASE SCENARIO 14:45:41 FOR A DEEP WATER BLOWOUT RESULTING IN MORE THAN 250,000 14:45:49 BARRELS OF CRUDE OIL BEING DISCHARGED EVERY DAY. 14:45:52 AS PEOPLE WHO HAVE BEEN FOLLOWING THIS CRISIS KNOW, THAT 14:45:56 IS MUCH MORE THAN IS ACTUALLY BEING DISCHARGED IN THIS 14:45:59 HORRIFIC SPILL OCCURRING IN THE GULF TODAY. 14:46:01 THE ESTIMATES RANGE FROM A LOW OF 5,000 BARRELS DAILY TO A HIGH 14:46:06 OF 100,000 BARRELS DAILY. BUT HERE'S THE PROBLEM AS I SEE 14:46:11 IT AND WANT TO ASK ABOUT IT. IN ITS PROPOSED RESPONSE PLAN, 14:46:18 OIL SPILL RESPONSE PLAN APPROVED BY THE MINERAL AND MINING 14:46:22 SERVICE. BP SAID IT COULD USE BOOMS AND 14:46:28 DISBURSEMENTS TO COUNTER AND COLLECT MORE THAN 490,000 14:46:30 BARRELS A DAY. BUT THAT WAS AS I SEE IT MOSTLY 14:46:34 FROM THE SURFACE. WHERE BOOMS AND SKIMMING VESSELS 14:46:40 AND DISBURSEMENTS ARE MOSTLY EFFECTIVE. 14:46:45 AS FAR AS I CAN TELL AND KNOW AND WANT TO ASK, THOSE METHODS 14:46:51 DON'T EFFECTIVELY DEAL WITH THE ENORMOUS ACCUMULATION OF OIL 14:46:55 FORMING NOW UNDER WATER IN THE GULF. 14:46:59 REPORTEDLY AS LARGE AS 10 MILES LONG, 3 MILES WIDE AND 300 FEET 14:47:04 THICK. WAS THAT A FORESEEN CONSEQUENCE 14:47:12 OF A DEEP WATER WELL BLOWOUT? AND IF IT WAS, WHY DIDN'T THE 14:47:17 MINERAL AND MINING SERVICE OF THE DEPARTMENT OF INTERIOR 14:47:21 REQUIRE THAT OIL COMPANIES HAVE A BETTER PLAN FOR RESPONDING TO 14:47:24 THAT CONSEQUENCE? AND FINALLY, PERHAPS MOST 14:47:30 IMPORTANT, IN THE APPROVED BP RESPONSE PLANS, THERE APPEARS TO 14:47:34 BE IN THE END TOTAL RELIANCE ON THE BLOWOUT PREVENTER AS THE 14:47:38 LAST LINE OF DEFENSE. AS IF A BLOWOUT PREVENTER COULD 14:47:43 NOT FAIL. BUT BLOWOUT PREVENTERS HAVE 14:47:48 FAILED IN THE PAST. NONE WITH ANYWHERE NEAR THE 14:47:51 CONSEQUENCES OF THIS ONE. BUT THEY HAVE FAILED. 14:47:56 AND NO PLANS WERE FILED OR REQUESTED FOR WHAT TO DO TO 14:48:02 CONTROL AND STOP A SPILL IF A BLOWOUT PREVENTER IN DEEP WATER 14:48:08 FAILED, AS IT DID IN THE CURRENT CASE. 14:48:12 SO I WANT TO ASK WHY NOT? WHAT COULD BE DONE TO PREVENT 14:48:17 ANOTHER FAILURE OF A BLOWOUT PREVENTER OF DEEP WATER OR 14:48:21 CONTROL THE SPILL MORE QUICKLY AND EFFECTIVELY IF IT DOES? 14:48:28 UNTIL THOSE QUESTIONS ARE ANSWERED SATISFACTORILY, I DON'T 14:48:31 SEE HOW OUR GOVERNMENT CAN ALLOW ANY NEW DEEP WATER WELLS TO BE 14:48:34 PERMITTED AND DRILLED. AND I SAY THAT WITH REGRET 14:48:40 BECAUSE I KNOW HOW IMPORTANT OFFSHORE AMERICAN OIL IS TO OUR 14:48:44 NATION'S ENERGY INDEPENDENCE. BUT THE U.S. GOVERNMENT HAS A 14:48:50 RESPONSIBILITY FOR PROTECTING THE PUBLIC SAFETY THAT IS MORE 14:48:52 IMPORTANT. AND THAT RESPONSIBILITY, I FEAR, 14:48:56 WAS NOT FULFILLED IN THIS CASE. PRIOR TO THE ACCIDENT OCCURRING. 14:49:04 THE RESULT IS THE HUMAN ENVIRONMENTAL AND ECONOMIC 14:49:07 CATASTROPHE WE ARE NOW WITNESSING IN THE GULF. 14:49:09 SENATOR COLLINS? THANK YOU, MR. CHAIRMAN. 14:49:15 MR. CHAIRMAN, AS WE BEGIN THIS OVERSIGHT HEARING INTO WHAT IS 14:49:21 CERTAINLY AN ENVIRONMENTAL CATASTROPHE AND WHAT IS LIKELY 14:49:27 TO BE AN ECONOMIC DISASTER, LET US ALSO REMEMBER WHAT A PERSONAL 14:49:34 TRAGEDY THIS INCIDENT IS FOR THE FAMILIES OF THE 11 WORKERS WHO 14:49:41 LOST THEIR LIVES AFTER THE EXPLOSION ROCKED AND THEN SANK 14:49:46 THE DEEP WATER HORIZON OIL DRILLING PLATFORM NEARLY FOUR 14:49:49 WEEKS AGO. WHEN THIS CATASTROPHE BEGAN BUT 14:49:57 NONE OF US KNOWS WHEN IT WILL END. 14:50:02 TODAY, 27 DAYS AFTER THE FATAL EXPLOSION AND FIRE, OIL 14:50:07 CONTINUES TO GUSH FROM THE WELL HEAD NEARLY A MILLION BELOW THE 14:50:10 SURFACE OF THE GULF OF MEXICO. DESPITE RECENT SUCCESSFUL 14:50:16 EFFORTS TO SIPHON OFF A PORTION OF THE OIL SPEWING FROM THE 14:50:22 BROKEN PIPE, THE WATERS OF THE GULF ARE SLOWLY BECOMING A SEA 14:50:26 OF CRUDE OIL. THE EXPANDING PLUME IS MENACING 14:50:33 THE FRAGILE ECOSYSTEMS IN THE GULF POTENTIALLY DAMAGING A VAST 14:50:39 ARRAY OF SEA LIFE, THE ENVIRONMENT AND THE FUTURES OF 14:50:44 AMERICANS WHO WILL LIVE AND WORK ALONG THE GULF COAST. 14:50:49 NOAA HAS ESTIMATED THAT EACH DAY SOME 5,000 BARRELS OF OIL ARE 14:50:53 FLOWING INTO THE WATERS OF THE GULF. 14:50:59 BUT RECENT EXPERTS ESTIMATES PLACE THAT NUMBER AS HIGH AS 14:51:03 70,000 BARRELS. HUNDREDS OF FEDERAL OFFICIALS, 14:51:09 COAST GUARD PERSONNEL, SCIENTISTS, ENGINEERS AND 14:51:13 OFFICIALS FROM BRITISH PETROLEUM SEARCH FOR SOLUTIONS TO FIX THIS 14:51:15 URGENT PROBLEM. HOW DO WE TURN OFF THIS FAUCET 14:51:22 OF OIL THAT IS STUCK OPEN NEARLY A MILE UNDER THE WATER? 14:51:28 IN THE RECENT WEEKS, WE HAVE LEARNED MUCH ABOUT THE 14:51:33 EXPLOSION, FIRE AND CHALLENGING RESPONSE EFFORTS. 14:51:36 BUT THERE IS STILL FAR TOO MANY UNANSWERED QUESTIONS. 14:51:39 AT TODAY'S HEARING WE WILL ASK WHAT THE GOVERNMENT AND INDUSTRY 14:51:44 COULD HAVE DONE DIFFERENTLY IT OFF AVOID THIS CATASTROPHE AND 14:51:53 HOW THE DAMAGE OF THE GULF OF MEXICO CAN BE MITIGATED AND HOW 14:51:55 THE SPILL CAN EVENTUALLY BE STOPPED. 14:51:58 AS THE COAST GUARD COMMANDANT HAS NOTED, THE TECHNOLOGICAL 14:52:02 FEATS AND INGENUITY NOTED TO STOP THIS LEAK HAVE PARALLELS TO 14:52:09 THE APRIL 1970 RESCUE MISSION FOR APOLLO 13. 14:52:14 IN RESPONDING TO THIS CATASTROPHE, OUR NATION FACES A 14:52:20 SIMILAR HERCULEAN ENGINEERING TASK. 14:52:23 BUT THIS TIME IN A DEEP OCEAN ENVIRONMENT THAT IS DARK, COLD 14:52:26 AND UNFORGIVING. THERE ARE SOME 90 RIGS DRILL IN 14:52:33 THE GULF RIGHT NOW PROVIDING 1.7 MILLION BARRELS OF OIL A DAY. 14:52:38 OR NEARLY ONE-THIRD OF TOTAL U.S. PRODUCTION. 14:52:45 ACCORDING TO THE FEDERAL MINERALS MANAGEMENT SERVICE, 14:52:49 ONLY .7% OF ACTIVE DRILLING PLATFORMS ARE SEARCHING FOR OIL 14:52:55 IN WATERS DEEPER THAN 1,000 FEET. 14:53:00 YET, MORE THAN 14:53:44 , TO THE APPROVAL OF FURTHER DRILLING IN 14:53:45 DEEP WATERS. MMS HAS THE RESPONSIBILITY FOR 14:53:53 REVIEWING AND APPROVING OIL RESPONSE PLANS FOR DRILLING 14:53:57 CONDUCTED ON OFFSHORE RIGS LIKE THE DEEP WATER HORIZON. 14:54:02 WE NEED TO EXPLORE WHAT LEVEL OF PREPAREDNESS MMS REQUIRES OF 14:54:08 COMPANIES SEEKING TO DRILL IN THIS HAZARDOUS ENVIRONMENT. 14:54:10 . ... -- 14:54:12 FOR THE COAST GUARD TO EFFECTIVELY PERFORM ITS ROLE IN 14:54:16 MARINE ENVIRONMENTAL PROTECTION, IT MUST WORK CLOSELY WITH MMS 14:54:20 AND THE PRIVATE SECTOR TO BE PREPARED FOR A WORST-CASE 14:54:23 SCENARIO. TO THAT END, I WAS SURPRISED TO 14:54:26 LEARN THAT THE CURRENT LEASE HAS NO REQUIREMENT FOR MMS TO SHARE 14:54:36 OIL SPILL RESPONSE PLANS WITH THE COAST GUARD. 14:54:38 HOW CAN THAT BE? IT SEEMS TO ME THAT MANDATING 14:54:42 CONCURRENT COAST GUARD APPROVAL OF THESE PLANS IS THE COMMON 14:54:46 SENSE CHANGE THAT WE SHOULD MAKE IMMEDIATELY. 14:54:50 TODAY WE WILL ALSO HEAR MORE ABOUT THE DEPARTMENT OF 14:54:53 HOMELAND SECURITY'S COORDINATION OF THE RESPONSE TO THE SPILL. 14:54:58 THE FEDERAL GOVERNMENT AND THE PRIVATE SECTOR HAVE COMMITTED 14:55:02 SUBSTANTIAL RESOURCES TO RESPOND TO THE SPILL. 14:55:06 THOSE EFFORTS WILL CERTAINLY CONTINUE. 14:55:09 BUT CONCERNS HAVE BEEN RAISED REGARDING THE ADEQUACY AND 14:55:15 TIMELINESS OF RESOURCES COMMITTED TO THIS EFFORT IN THE 14:55:20 INITIAL DAYS OF THE BLOWOUT. FURTHERMORE, WITH THE 14:55:27 ADMINISTRATION'S PROPOSED $75 MILLION CUT IN THE COAST GUARD 14:55:32 BUDGET, IT IS A QUESTION IN MY MIND WHETHER THE COAST GUARD CAN 14:55:37 CONTINUE TO MAINTAIN SUFFICIENT CAPABILITIES TO RESPOND TO THIS 14:55:41 AND FUTURE DISASTERS ALONG WITH PERFORMING ITS MYRIAD OTHER 14:55:49 MISSIONS. SURELY, THIS CATASTROPHE SHOULD 14:55:51 PROMPT THE ADMINISTRATION TO RECONSIDER THE ILL-CONCEIVED AND 14:55:57 BUDGET CUTS. IT IS ALWAYS THE COAST GUARD, 14:56:01 WHETHER IT IS HURRICANE KATRINA, THE CRISIS IN HAITI, OR THE OIL 14:56:08 SPILL IN THE GULF COAST REGION, THAT IS ALWAYS FIRST TO RESPOND. 14:56:13 AND THE LAST THING WE SHOULD BE DOING IS REDUCING THE NUMBER OF 14:56:18 COAST GUARD PERSONNEL, UNIFORMED PERSONNEL, BY MORE THAN 1000 14:56:22 INDIVIDUALS, AS THE ADMINISTRATION'S BUDGET 14:56:27 PROPOSES. FINALLY, THE PRIVATE SECTOR MUST 14:56:30 ACCEPT RESPONSIBILITY FOR THIS FAILURE IN MODERN ENGINEERING, 14:56:38 AT THE LIABILITY -- AND WE NEED TO TAKE A CLOSE LOOK AT THE 14:56:43 LIABILITY CAPS TO SEE IF THEY ARE STILL ADEQUATE. 14:56:46 THIS OIL SPILL, WHEN IT FINALLY DOES CONCLUDE, WILL BE RECORDED 14:56:50 AS AN EPIC CATASTROPHE WHOSE IMPACTS ARE LIKELY TO BE FELT 14:56:55 FOR A LONG TIME TO COME. THANK YOU VERY MUCH, SENATOR 14:57:01 COLLINS. WE WILL GO RIGHT TO SECRETARY 14:57:03 BOLLER TOTTEN. -- SECRETARY NAPOLITANO. 14:57:08 TO SAY THE OBVIOUS, YOU HAVE ONE OF THE TOUGHEST JOBS IN AMERICA 14:57:12 BUT I APPRECIATE WHAT YOU DO EVERY DAY AND YOUR WILLINGNESS 14:57:14 TO COME BEFORE US. THE OVERSIGHT OF ORIGINAL 14:57:18 JURISDICTION OVER YOUR DEPARTMENT FOR THIS TESTIMONY 14:57:23 THIS AFTERNOON. THANK YOU. 14:57:28 THANK YOU, MR. CHAIRMAN, SENATOR COLLINS, MEMBERS OF THE 14:57:32 COMMITTEE. I LOOK FORWARD TO THE 14:57:34 OPPORTUNITY TO TESTIFY ABOUT THE RESPONSE TO THE BP OIL SPILL IN 14:57:40 THE GULF OF MEXICO. SOME OF YOUR QUESTIONS ARE 14:57:43 PROBABLY BETTER DIRECTED TO THE DEPARTMENT OF INTERIOR OR 14:57:47 BRITISH PETROLEUM ITSELF, BUT I WILL NOT BE -- I WILL BE 14:57:54 TESTIFYING ABOUT WHAT HAPPENED, THE ORI 14:57:57 AND THEN REAR ADMIRAL PETER NEFFENGER IS HERE TO ANSWER ANY 14:58:01 QUESTIONS OF A TECHNICAL NATUREA THAT I'M NOT MYSELF ABLE TO 14:58:05 ANSWER, ALTHOUGH I MUST SAY I ARE NOT ABLE 14:58:07 HAVE LEARNED, AS WE ALL HAVE, AE UTT ABOUT OIL SPILLS OVER THEBO 14:58:12 LAST FOUR WEEKS.IL I WANT TO BEGIN BY THANKING THE 14:58:16 MEN AND WOMEN OF THE COAST GUARD WHO HAVE BEEN AT THIS EVENT FROM 14:58:21 ITS BEGINNING. THEY HAVE WORKED SWIFTLY, THEY 14:58:24 HAVE WORKED TIRELESSLY INTIRELEY RESPONSE TO WHAT, AS SENATOR 14:58:29 COLLINS RIGHTLY NOTED, IS ONE OY THE MOST DEVASTATING 14:58:33 ENVIRONMENTAL DISASTERS THIS NATION HAS EVER FACED. 14:58:35 AND I ALSO WOULD LIKE TO EXPRESS MY OWN SYMPATHIES TO THE ENVMENL 14:58:40 EVMILIES OF THE WORKERS WHO WERE KILLED IN THE INITIAL EXPLOSION. 14:58:43 IT WAS A TERRIBLE HUMAN TRAGEDY EVEN AS WE CONTINUE TO DEAL WITE 14:58:48 THE ENVIRONMENTAL OUTFLOW FROM IT. 14:58:50 IT IS A CONSTANTLY-EVOLVING CONT SITUATION. 14:58:54 THE FEDERAL GOVERNMENT HAS BROUGHT ALL RESOURCES TO BEAR TH 14:58:56 LIMIT THE SPILL'S ENVIRONMENTALO ECONOMIC AND PUBLIC HEALTH 14:59:00 IMPACTS AND INSURE THAT COMMUNITIES AND NATURAL LIMIT 14:59:03 RESOURCES OF THE GULF COAST ARE RESTORED AND MADE WHOLE BY 14:59:09 BRITISH PETROLEUM. DHS, AS YOU NOTED S THEDHS 14:59:15 PRINCIPAL COORDINATING AGENCY. I BELIEVE THIS IS THE FIRST TIME 14:59:20 IT'S ACTUALLY BEEN OVERLAID ON THE NATIONAL RESPONSE FRAMEWORK 14:59:24 ENABLING US TO COORDINATE ACROSS NO. 5 14:59:26 THE MANY FEDERAL AGENCIES AND TO DO THE INTERAGENCY CONSULTATIONC 14:59:31 AND INVOLVEMENT NECESSARY FORENA THIS BILL. 14:59:36 WE ARE LITERALLY WORKING 24/7 TN INSURE THE EFFICIENT DEPLOYMENT 14:59:43 OF RESPAPONSE, ASSETS, PERSONNEL AND EQUIPMENT, AND THE IMPACT TI 14:59:47 DATE SPEAKS OF THEIR EXTENSIVE EFFORTS. SAKS 14:59:50 FIRST, I'D LIKE TO GIVE YOU A QUICK UPDATE ON THE CURRENTIVE 14:59:53 STATUS AS OF THE TIME I LEFT,STS AND THEN I WOULD LIKE TO GIVE 15:00:20 more than 17-thousand personnel in gulf region, 2100 volunteers trained, 750 vessels currently responding: skimmers, tugs, barges, recovery vessels 15:00:55 deployed 1.7 million foot of boom, another 1.9 million foot in supply chain *15:01:20 insure we can respond within 24 hours, or 4 or 5 miles reported of oil hitting shore. 15:01:45 more than 6.6 million gallons oily water recovered 15:02:06 17 staging areas set up - 17,500 national guard members approved. No reported delays or closures to shipping. No vessels required decontamination 15:02:43 yesterday BP attempted another test by inserting small pipe 15:02:56 BP reports the pipe is recovering some oil and gas, no confirmation on rate and flow 15:03:21 we will continue to bring all resources to bear until well is tapped, oil is cleaned up, and claims are paid 15:03:41 federal scientists continue provide oversight and expertise to BP **15:04:07 the response to this incident began immediately and has remained constant and strong over the last four weeks 15:04:24 coast guard was first on scene 15:04:38 april 21: named mary landry regional response coordinator 15:05:37 [Napolitano reads timeline of 'immediate' govt response] *15:06:04 no oil leak was apparent. *15:06:24 the next day, Saturday april 24th BP found the first two leaks. 15:06:51 on Wednesday first controlled boom 15:06:58 later that day BP discovered additional leak *15:08:02 doing everything we can to make sure personnel and equipment efficiently deployed and utilized. 15:08:52 government has mobilized best scientists and experts to work with BP 15:09:31 we are keeping the public engaged and making sure people who want *15:09:41 we are ensuring BP as responsible party is paying cost of cleanup and compensating 15:09:58 claims can be filed online, an access point we've been urging BP to make available for weeks *15:10:15 BP has not yet denied a claim 15:11:18 LIEBERMAN questions *why not prepared to deal with this kind of blowout?* *15:12:46 NAP: before the blowout it is clear there was assumption BOP would never fail. Plans submitted based on that assumption. 15:13:12 NAP: there have been extensive plans prepared under national response framework 15:13:34 NAP: those plans not only exist but are exercised 15:14:15 NAP; before spill there was overreliance on BOP. Post-spill there was extensive planning exercise framework in place. *but those drills were not for deepwater blowout?* 15:15:05 JOE what do you do when deepwater blows? What do you do with oil under the water *trained for dealing with consequences of deepwater?* 15:15:45 NEFF we do however drill for massive oil releases *prepare for possibility of BOP failure?* 15:18:38 NEFF this spill raises a lot of questions like that *15:18:48 NEFF we certainly never anticipated ongoing release of this magnitude. Have to go back and look at planning for various contingency plans. 15:19:54 NAP further deepwater permits are going to be stopped until this is investigated 15:20:15 all working together to say 'what power should MMS have had that it didn't?' 'was there overreliance on the BOP?' *15:20:45 this isn't about who's responsible for paying. Our work is to make sure the well is capped, make sure it is cleaned up, make sure oil is prevented from hitting landfall, make sure claims are paid 15:21:30 COLLINS questions *why wouldn't you have coast guard share info with MMS, also be responsible for co-approval of plan?-one agency approves plan above water, different agency approves plan for wellehead. Broaden USCG responsibility?* 15:22:30 NAP a lot will be looked at 15:22:42 NEFF I would concur, we need to look *what is assessment of expertise we have today in government to deal with spills of national significance?* 15:26:04 NEFF we have capability now and people who have looked at this. In private industry *15:26:25 NEFF I do believe we have capability.been impressed with what ive seen. *resources adequately deployed by BP?* 15:28:37 NAP this was an evolving spill *15:28:45 NAP I would like to reserve judgment on adequacy of private sector response 15:29:00 NAP heads were in Washington very quickly.they have been in command centers 15:29:24 15:29:24 15:30:12 McCAIN questions *best/worse case scenarios* 15:31:15 NAP worst case scenario is we'll be at this for quite a while *optimism?* **15:32:04 I'm just taking it day by day. We are in middle of this crisis. 15:33:55 *border crisis* 15:35:43 I want to know whether you're going to send Guard to the border or not? 15:36:39 homes being violated. 15:38:00 NAP not the kind of law I would have signed. Bad law enforcement. 15:39:49 LANDRIEU questions *when will flow be stopped? Others, etc.* 15:48:39 PRYOR questions 15:49:21 NEFF what OPA of 1990 provides is op to reach into emergency fund 15:49:37 NEFF initial 50 million dollars available, can take one time 100 million dollars *budget hampered? 15:50:38 NEFF budget situation has not hampered *exercises* *15:52:54 NEFF there has been improved response. Improved over Valdez 15:53:35 NEFF we think we have pretty robust exercise program 15:55:31 LIEBERMAN questions *consequences (plume)* 15:55:48 NAP we have to be careful about what is being assumed about undersea plume 15:56:04 NAP some of early reports made based on observation 15:56:20 NAP need to continue to watch undersea plume as one develops 15:56:37 NAP that process being looked at with consortium of govt scientists 15:56:52 NAP NOAA director responsed to statements that seemed inaccurate 15:57:03 NAP EPA has approved undersea use of dispersants *plumes: can move from source?* 15:58:42 NEFF we're preparing for potential impact on southern florida coast 15:58:53 NEFF likely oil picked up will be heavily weatherd. Likely to be tarballs, a little easier to cleanup. More manageable. SEGMENT [1] 2010/05/17 ************************************************ Gulf Coast Oil Spill Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. 15:00:01 YOU SOME DETAIL ON THE ORIGINAL RESPONSE BECAUSE IT IS OF SOME 15:00:07 IMPORTANT INTEREST BY H OF YOU.E BY MANY OF YOU. 15:00:11 MORE THAN 17,000 PERSONNEL ARE CURRENTLY IN THE GULF REGION 15:00:14 CONDUCTING RESPONSE ACTIVITIES. IN ADDITION, MORE THAN 2100 15:00:19 VOLUNTEERS HAVE BEEN TRAINED TO HELP DEAL WITH ANY POTENTIAL 15:00:22 EFFECTS OF OIL ONSHORE. MORE THAN 750 VESSELS ARE 15:00:26 CURRENTLY RESPONDING TO THIS SPILL INCLUDING SKIMMERS, TUGS, 15:00:32 BARGES AND RECOVERY VESSELS THAT ASSIST IN CONTAINMENT AND 15:00:36 CLEAN-UP EFFORTS. THIS IS IN ADDITION TO DOZENS OF 15:00:39 AIRCRAFT, REMOTELY-OPERATED VEHICLES AND OTHER ASSETS BEING 15:00:43 DEPLOYED. WE HAVE DEPLOYED 1.7 MILLION 15:00:48 FOOT OF BOOM TO DATE, AND WE HAVE ANOTHER 1.9 MILLION FEET OF 15:00:53 BOOM IN THE SUPPLY CHAIN. AIRCRAFT ARE CONSTANTLY 15:00:57 MONITORING THE INTEGRITY OF THE BOOM AND ARE DIRECTING POLLUTION 15:01:01 RESPONSE TEAMS TO MAKE NECESSARY ADJUSTMENT TO THE LINES. 15:01:06 WE HAVE, ARE ABLE WITH THESE SUPPLIES TO INSURE THAT WE CAN 15:01:13 RESPOND WITHIN 24 HOURS OR 5 MILES OF OIL HITTING SHORE, 15:01:19 WHICHEVER WOULD BE SOONER. LET ME JUST SAY THAT THE BOOM IS 15:01:23 SET UP AND DEPLOYED IN STAGING AREAS SO THAT IT CAN BE DEPLOYED 15:01:27 WITHIN 24 HOURS OR 5 MILES OF OIL, WHICHEVER WOULD BE SOONER. 15:01:32 MORE THAN 6.6 MILLION GALLONS OF OILY WATER HAVE BEEN RECOVERED, 15:01:38 APPROXIMATELY 625,000 GALLONS OF DISPERSANT HAVE BEEN APPLIED. 15:01:42 THIS INCLUDES APPROXIMATELY 45,000 GALLONS APPLIED SUBSEA, A 15:01:48 METHOD THAT HAS BEEN APPROVED BY THE NATIONAL RESPONSE TEAM. 15:01:52 AND FOR THE FIRST TIME.ND FOR SEVENTEEN STAGING AREAS ARE 15:01:57 CURRENTLY SET UP TO PROTECTRRENO VITAL SHORELINE. 15:02:00 WE HAVE APPROVED THE USE OF UP TO 17,500 NATIONAL GUARDTO 15:02:04 MEMBERS, MORE THAN 1450 AREMBER, CURRENTLY DEPLOYED. 15:02:08 ALL SHIPPING CHANNELS AND PORTSG REMAIN OPEN IN THE GULF COAST 15:02:12 REGION. THERE ARE NO REPORTED DELAYS OR 15:02:15 CLOSURES TO SHIPPING. NO VESSELS HAVE REQUIRED 15:02:18 CLEANING OR DECONTAMINATION, BUT OUR TEAMS ARE ON STANDBY IF SUCH 15:02:23 A NEED ARISES.RISES. DRILLING HAS COMMENCED ON BOTH 15:02:28 RELIEF WELLS WHICH WILL RELIEVE PRESSURE AND PERMANENTLY STOP 15:02:31 THE FLOW OF OIL. FLOW YESTERDAY BP ATTEMPTED ANOTHER 15:02:34 TEST TO CONTAIN SOME OF THE OILF LEAKING FROM THE RISER BY 15:02:39 INSERTING A SMALL PIPE INTO IT M CARRYING OIL DIRECTLY UP TO THE 15:02:43 SURFACE TO A COLLECTION VESSEL.O AS OF THIS MORNING, BP REPORTSFS 15:02:47 THE PIPE IS RECOVERING SOME OILS AND GAS. 15:02:50 THERE'S NO CONFIRMATION YET ON THE RATE OF FLOW. 15:02:55 MNS AND BP ARE MONITORING THIS TEST CLOSELY TODAY AND ADJUSTING 15:03:00 PRESSURES TO ACHIEVE THE HIGHEST TONCENTRATIONS OF OIL BEING 15:03:03 BROUGHT TO THE SURFACE. NOW, IT'S IMPORTANT TO NOTE THAT 15:03:07 EVEN IF THIS EFFORT IS SUCCESSFUL, IT WILL NOT CHANGE 15:03:11 OUR POSTURE.F WE WILL CONTINUE TO BRING ALL 15:03:14 RESOURCES TO BEAR UNTIL THE WELL IS TAPPED, THE OIL IS CLEANED 15:03:17 UP, AND THE CLAIMS ARE PAID. THAT SAID, WE ARE ALSO ACTIVELY 15:03:23 EXPLORING OTHER METHODS TO TETIGATE THE SPILL'S IMPACT. 15:03:27 RIGHT NOW FEDERAL SCIENTISTS ARE CONTINUING TO PROVIDE OVERSIGHT 15:03:31 AND EXPERTISE TO BP AS THEY MOVE FORWARD WITH OTHER STRATEGIES TO 15:03:35 CONTAIN THE SPILL AND STOP THE FLOW OF OIL. 15:03:39 AND THIS WEEKEND BP STAGED OI 15:03:42 EQUIPMENT FOR A TECHNIQUE CALLED THE TOP KILL WHICH WILL PUMP 15:03:46 HEAVY FLUIDS INTO THE WELL AND ATTEMPT TO STOP THE FLOW OF OIL. 15:03:50 THIS OPERATION IS EXPECTED TO IN 15:03:52 START AT THE END OF THIS WEEK.T NOW, AS I SAID EARLIER, THED OF. 15:03:56 RESPONSE TO THIS INCIDENT BEGAN IMMEDIATELY AND HAS REMAINED 15:04:00 CONSTANT AND STRONG OVER THE PAST FOUR WEEKS. 15:04:04 WHEN THE EXPLOSION ON THE DEEP SHORE -- DEEPWATER HORIZON 15:04:10 OCCURRED LATE AT NIGHT ON TUESDAY, APRIL THE 20, THE COAST 15:04:14 GUARD WAS FIRST ON THE SCENE WITH TWO CUTTERS AND AIRCRAFT 15:04:18 BEGINNING A LARGE-SCALE SEARCH AND RESCUE EFFORT. 15:04:21 BY THE MORNING, 115 CREW MEMBERS WERE ACCOUNTED FOR. 15:04:26 ON APRIL THE 21ST, WE NAMED MARY LANDRY THE FEDERAL ON-SCENE 15:04:32 COORDINATOR TO HEAD UP THE REGIONAL RESPONSE TEAM COMPRISED 15:04:35 OF FEDERAL, STATE AND LOCAL REPRESENTATIVES AND LAUNCHED AN 15:04:39 INTERAGENCY INVESTIGATION. IN OTHER WORDS, FROM APRIL THE 15:04:43 21ST WE WERE ALREADY BEGINNINGRE TO BRING RESOURCES TO BEAR IN AN 15:04:46 INTERGOVERNMENTAL WAY TO THIS TRAGEDY. 15:04:48 ON THE MORNING OF THURSDAY, TRA. APRIL, THE OIL RIG SANK 15:04:53 WITH 700,000 OF GALLONS OFTHIS DIESEL FUEL ONBOARD. 15:05:01 THIS PROMPTED THE NATIONAL RESPONSE TEAM WHICH INCLUDES 15:05:05 LEADERSHIP FROM THE WHITE HOUSE TO DHS TO THE EPA AND THE A BRIS 15:05:09 DEPARTMENTS OF DEFENSE, COMMERCE AND INTERIOR. DEPARTMT 15:05:12 I LEAD THE NRT AS THE PRINCIPALE FEDERAL OFFICIAL RESPONSIBLE FOR 15:05:18 COORDINATING THE FEDERAL RESPONSE. 15:05:19 THE DERAL DAY PRESIDENT OBAMA CONVENED A PRINCIPALS MEETINGIDT 15:05:24 HADUT THE INCIDENT. AT THIS TIME THERE WERE NO 15:05:28 APPARENT OIL LEAKS, BUT 100,000 APPARE 15:05:31 GALLONS OF DISPERSANTS WERE PREPOSITIONED. 15:05:34 WE ALSO INITIATED INTERGOVERNMENTAL CALLS TO 15:05:37 PROVIDE UPDATES ON THE SITUATION TO POTENTIALLY AFFECTED 15:05:41 POTENTLLYES ALONG THE GULF COAST. AFFEC 15:05:43 ONTED FRIDAY, APRIL THE 23RD, E SUNKEN RIG WAS FOUND ON THE 15:05:49 OCEAN FLOOR WITH AN OIL SHEEN ESTIMATED AT 8400 GALLONS 15:05:55 NEARBY. THE NO OIL LEAK WAS APPARENT, BUT NT 15:05:57 THE NRT CONVENED IN ORDER TO PLAN AHEAD IN CASE THE SITUATION 15:06:02 DETERIORATED CONTINUING TO PREPOSITION VESSELS AND 15:06:05 DISPERSANTS AND HUNDREDS OF THOUSANDS OF FEET OF BOOM IN 15:06:09 PREPARATION FOR SUCH A WORST-CASE SCENARIO. 15:06:11 THE NEXT DAY, SATURDAY, APRIL THE 24TH, BP FOUND THE FIRST TWI 15:06:17 LEAKS AND ALERTED THE FEDERAL GOVERNMENT. 15:06:19 THE FIRST THREE EQUIPMENT-STAGING LOCATIONS WERE 15:06:22 STOOD UP AT VENICE, LOUISIANA, BILOXI, MISSISSIPPI, AND 15:06:26 PENSACOLA, FLORIDA. ADDITIONAL PERSONNEL AND VESSELS 15:06:32 WERE DEPLOYED TO THE AREA. WE BEGAN TO ACTUALLY MOVE 15:06:35 ADDITIONAL BOOM THERE THE NEXT DAY. 15:06:38 ON WEDNESDAY, APRIL THE 28TH, THE FIRST CONTROLLED BURN 15:06:42 OPERATION WAS CONDUCTED, AND IT WAS SUCCESSFUL. 15:06:45 LATER THAT DAY BP DISCOVERED AN ADDITIONAL LEAK FROM THE OIL 15:06:50 WELL. BY THIS TIME THE DISCOVERY OF 15:06:52 THE THIRD LEAK, WE HAD ALREADY MUSTERED 50 RESPONSE VESSELS, 15:06:58 ROUGHLY 150,000 FEET OF BOOM HAD BEEN DEPLOYED. 15:07:01 WE HAD APPLIED 56,000 GALLONS OF DISPERSANTS, AND WE HAD OVER A 15:07:06 THOUSAND PERSONNEL WORKING THE SCENE. 15:07:09 ON THURSDAY, APRIL THE 29TH, I DESIGNATED THE EVENT A SPILL OF 15:07:16 NATIONAL SIGNIFICANCE WHICH BUILT ON THE OPERATIONAL AND 15:07:19 POLICY COORDINATION ALREADY UNDERWAY FROM THE BEGINNING OF 15:07:22 THIS RESPONSE. NOW, BY THIS DAY WE HAD 70 15:07:27 VESSELS ALREADY ON SCENE, 1100 PERSONNEL AND MORE BOOM AND 15:07:31 DISPERSANT AT THE READY. ON MAY THE 1ST, WE ANNOUNCED 15:07:35 THAT ADMIRAL THAT'D ALLEN, THE OUTGOING COMMANDANT OF THE COAST 15:07:42 COMMR. WOULD SERVE AS THE INCIDENT COMMANDER. 15:07:44 LET ME BRIEFLY DESCRIBE THE ONGOING ACTIVITIES. 15:07:49 WE ARE DOING EVERYTHING WE CAN TO INSURE THAT VITAL RESPONSE 15:07:52 ASSETS, PERSONNEL AND EQUIPMENT ARE EFFICIENTLY AND EFFECTIVELY 15:07:56 DEPLOYED AND UTILIZED. I HAVE VISITED EACH OF THE 15:08:00 RESPECTIVE STATES TO SEE THAT EFFORTS ARE UNDERWAY AND 15:08:04 FIRSTHAND MEETING WITH GOVERNORS, MAYORS, FIRST 15:08:06 RESPONDERS AND IMPACTED COMMUNITIES. 15:08:08 WE ARE WORKING CLOSELY WITH STATE AND LOCAL GOVERNMENTS 15:08:11 EVERY STEP OF THE WAY ON JOINT RESPONSE PLANS AND THROUGH THE 15:08:14 COMMAND CENTERS. WE HAVE DAILY CALLS WITH 15:08:17 GOVERNORS, MAYORS AND MEMBERS OF THE CONGRESS. 15:08:20 WE ARE OVERSEEING BP, THE RESPONSIBLE PARTY, IN ITS 15:08:24 EFFORTS TO STOP THE LEAK AT ITS SOURCE, REDUCE THE SPREAD OF 15:08:28 OIL, PROTECT THE SHORELINE AND MITIGATE DAMAGES. 15:08:32 DRILLING RELIEF WELLS, WHICH WILL RELIEVE PRESSURE AND 15:08:36 PERMANENTLY STOP THE PRESSURE OF OIL AS I MENTIONED, IS UNDERWAY. 15:08:40 THE FEDERAL GOVERNMENT HAS MOBILIZED ITS BEST SCIENTISTS 15:08:44 AND INDUSTRY EXPERTS TO WORK WITH BP TO IDENTIFY OTHER 15:08:48 STRATEGIES FOR SEALING THE WELL. AND THE PRESIDENT HAS TASKED THE 15:08:51 DEPARTMENT OF ENERGY TO PROVIDE EXPERTISE ON THAT FRONT. 15:08:55 ABOVE THE SURFACE WE CONTINUE TO CONDUCT CONTROLLED BURNS, SKIMEI 15:08:59 OIL AND APPLY CHEMICAL DISPERSANTS TO REDUCE THE AMOUNT 15:09:03 OF OIL AND BREAK UP THE SLICKEDE FAR OFFSHORE. 15:09:06 OF WE ARE DEPLOYING BOOM TO PROTECT 15:09:08 WE ARE SHORELINE AND WILDLIFE IN ALL 15:09:10 THE GULF STATES THAT COULD BE AFFECTED, AND IMMEDIATELY 15:09:14 DISPATCHING CLEAN-UP TEAMS WHEN OIL -- GENERALLY IN THE FORM OF 15:09:19 TARBALLS -- REACHES THE SHORE. WE ARE KEEPING THE PUBLIC 15:09:22 ENGAGED AND MAKING SURE THAT PEOPLE WHO WANT TO VOLUNTEER FOR 15:09:26 CLEAN UP, FOR HELPING TO DEPLOY BOOM OR IN OTHER WAYS CAN HELP. 15:09:30 AND WE ARE INSURING THAT BRITISH PETROLEUM AS THE RESPONSIBLE 15:09:34 PARTY IS PAYING THE COSTS OF THE CLEAN UP AND COMPENSATING 15:09:38 INDIVIDUALS, COMMUNITIES AND BUSINESSES THAT HAVE SUFFERED 15:09:41 ALREADY AS A RESULT OF THISCOMMD SPILL. 15:09:45 ACTUALLY, BEGINNING TODAY THEIR CLAIMS CAN ACTUALLY BE FILED 15:09:50 ONLINE, AN ACCESS POINT WE'VE BEEN USUALING BP TO MAKE. 15:09:54 AVAILABLE FOR THE PAST FEW WEEKS. 15:09:56 SO FAR OVER 16,000 CLAIMS HAVE BEEN FILED BY AFFECTEDED 15:10:00 INDIVIDUALS AND BUSINESSES.BY BP HAS PAID OUT OVER $9.6 15:10:05 MILLION, IT HAS NOT YET DENIED A CLAIM. 15:10:08 LOOKING AHEAD, THE ADMINISTRATION WILL CONTINUE THA 15:10:11 STRONG RESPONSE THAT WE HAVE SUSTAINED SINCE THE 20TH OF WEAE 15:10:14 APRIL. WE WILL MOBILIZE EVERY AVAILABLE 15:10:17 RESOURCE TO PROTECT THE ENVIRONMENT, ECONOMY AND PUBLIC 15:10:20 HEALTH IN THE GULF REGION WITHIE ALL HANDS ONNT DECK. 15:10:23 THANK YOU, MR. CHAIRMAN, FOR THIS OPPORTUNITY TO BE WITH YOU 15:10:27 TODAY. I'LL BE HAPPY TO ANSWER YOUR 15:10:29 QUESTIONS. THANKS VERY MUCH, MADAM 15:10:32 SECRETARY. BEFORE I ASK MY QUESTIONS, I 15:10:34 WILL DO A SEVEN-MINUTE ROUND. I HAVE A CIRCUIT IN MY HEAD, I 15:10:41 THINK I KEPT REFERRING TO MMS BY THE WRONG NAME. 15:10:45 IT'S THE MINERALS MANAGEMENT MIN SERVICE, SO LET THE RECORDER SH. 15:10:49 I APPRECIATE VERY MUCH THE RESPONSE EFFORTS, IT'S REALLY 15:10:53 QUITE ENORMOUS, THAT YOU'VE DESCRIBED, SECRETARY NAPOLITANO, 15:10:57 THAT THE GOVERNMENT IS INVOLVED THIS AND THAT BP IS INVOLVED INE 15:11:02 BUT I WANT TO GO BACK AGAIN TO SOME OF THE QUESTIONS I RAISED O 15:11:06 IN MY OPENING STATEMENT, ANDOPEG THIS REALLY GOES TO PREPAREDNESS 15:11:10 UNIQUELY FOR A PROBLEM WITH THEE DEEPWATER WRELL, AND I'LL ASK 15:11:17 YOU, MADAM SECRETARY. MAY W END UP THAT THIS ISYOU, 15:11:21 TECHNICAL AND YOU WANT THE SECR, ADMIRAL TO RESPOND IS, BUT B 15:11:23 HERE'S THE QUESTION AND LET METE JUST SPEAK AS SOMEBODY WHO'SUES, 15:11:26 BEEN WATCHING THIS. A SPEAK TO AS YOU W SATCOMH, AS WE WATCH TE 15:11:30 COMPANY, THE GOVERNMENT TRYING E DESPERATELY TO FIGURE OUT HOW TO 15:11:35 CLOSE THIS WELL, TO STOP THISTO SPILL IN THE GULF WE, OBVIOUSLY, 15:11:42 HAVE TO CONCLUDE THAT PEOPLE WEREN'T PREPARED TO DO IT, 15:11:45 WEREN'T PREPARED TO DEAL WITH THIS KIND OF PROBLEM. 15:11:49 IN FACT, AS THE COMPANY SAID QUITE HONESTLY, THEY HAD CAPPED 15:11:55 WELLS BEFORE, PERHAPS SOME THAT HAD A FAILURE OF THE BLOWOUT 15:11:59 PREVENTER, BUT NEVER AT THIS DEPTH. 15:12:02 SO WHY SHOULDN'T THE COMMITTEE, I OR ANYBODY IN THIS COUNTRY 15:12:08 CONCLUDE THAT, IN FACT, WE WERE, WE WERE NOT PREPARED, EITHER THE 15:12:14 GOVERNMENT OR THE COMPANY BY DEMAND OF THE PERMITTING 15:12:20 AUTHORITIES, TO DEAL WITH THIS KIND OF BLOWOUT OF A DEEPWATER 15:12:25 WELL? LET ME DIVIDE IT, IF I MIGHT, 15:12:28 MR. CHAIRMAN, INTO BEFORE THE BLOWOUT AND AFTER THE BLOWOUT. 15:12:34 OKAY.ORE THE I THINK BEFORE THE BLOWOUT IT 15:12:39 IS CLEAR THAT THERE WAS AN ASSUMPTION THAT A BOP WOULD 15:12:44 NEVER FAIL AND THAT PLANS WERE SUBMITTED BASED TO THE MMS WHICH 15:12:49 IS PART OF THE DEPARTMENT OF INTERIOR BASED ON THAT 15:12:52 ASSUMPTION. AND I'VE READ SOME OF THE SAMEIE 15:12:56 MATERIALS THAT YOU HAVE. BUT FROM THE POINT OF VIEW OF AN 15:13:01 EXPLOSION AND A SPILL, THERE HAVE BEEN EXTENSIVE PLANS 15:13:05 PREPARED UNDER THE NATIONAL PLAS RESPONSE FRAMEWORK. 15:13:08 THERE ARE AREA CON TIN GENERALTY CITY -- CON TIN GIN SI PLANS PUT 15:13:15 FRGETHER THAT INCLUDE INTENSIVE EFFORTS THERE STATES, 15:13:19 LOCALITIES, PARISHES, THERE ARED THE REGIONAL RESPONSE PLANS AND 15:13:22 THEN THERE'S THE NATIONAL RESPONSE FRAMEWORK. 15:13:25 THOSE PLANS NOT ONLY EXIST, BUT ARE EXERCISED ON A REGULAR 15:13:29 BASIS. INDEED, I THINK THERE WAS AN 15:13:32 AREA RESPONSE PLAN FOR AN OIL-RELATED INCIDENT JUST IN 15:13:37 MARCH OFF OF THE COAST OF MAINE, SENATOR COLLINS. 15:13:43 AND THERE WAS A NATIONAL EXERCISE WITH THE EXACT PREMISE 15:13:47 OF THIS WHICH IS A MAJOR SPILL IN THE GULF COAST. 15:13:51 RIGHT. THAT WAS DONE IN 2002, AND 15:13:55 ADMIRAL ALLEN WAS THE NATIONAL COMMANDER FOR THAT EXERCISE AND, 15:13:59 INDEED, HE'S THE NATIONAL INCIDENT COMMANDER HERE. 15:14:03 SO TO THE EXTENT THAT BEFORE SPILL THERE WAS OVERRELIANCE, 15:14:09 PERHAPS, ON THE B.O.P., THAT WILL BECOME MORE CLEAR AS THE 15:14:13 INVESTIGATION PROCEEDS. RIGHT. 15:14:15 ISN'T IT -- POST-SPILL, THOUGH, THERE WAS 15:14:20 AN EXTENSIVE PLANNING EXERCISE FRAMEWORK IN PLACE. 15:14:24 YEAH. BUT ISN'T IT TRUE THAT, AND, 15:14:27 ADMIRAL, I WELCOME YOU TO COMMENT ON THIS, THAT THOSE 15:14:31 KINDS OF DRILLS WERE NOT REALLY TO DEAL WITH A BLOWOUT IN A 15:14:36 DEEPWATER WELL? IN OTHER WORDS, THERE WAS A LOT 15:14:37 OF WORK DONE, AND THERE'S BEEN ENORMOUS EFFORT AT RESPONSE. 15:14:42 AND I THINK IT'S REALLY HAD AN EFFECT ON THE WATER ON THE 15:14:45 SURFACE. BUT NOW WE'VE GOT TWO ENORMOUS 15:14:48 PROBLEMS THAT I DON'T BELIEVEAVS UNLESS YOU CAN CONVINCE ME 15:14:51 OTHERWISE THAT WE WERE READY TO, DEAL WITH AND THE COMPANY WASN'T 15:14:54 EITHER WHICH IS WHAT DO YOU DOTA WHEN A DEEPWATER WELL BLOWS, AND 15:14:57 THEN WHAT DO YOU DO ABOUT THE OIL UNDER THE WATER THAT IS NOWR 15:15:01 ACCUMULATING IN THIS MASSIVEH PLUME? 15:15:03 ADMIRAL, DOES THE COAST GUARD -- COASARD -- DO A LOT OF DRILLING, 15:15:08 DO YOU DRILL FOR DEALING WITH, T MEAN, YOU KNOW, TRAIN FOR 15:15:15 DEALING WITH THE CONSEQUENCES OF A DEEPWATER WELL EXPLOSION? 15:15:21 MR. CHAIRMAN, WE DON'T DRILL THIS SPECIFIC SCENARIO, NO.RILL 15:15:26 WHAT WE, AND WHAT THE SECRETARYN WAS REFERRING TO WAS THE SPILL A 15:15:29 OF NATIONAL SIGNIFICANCE EXERCISE THAT WE DO EVERY THREE 15:15:32 YEARS THROUGHOUT THE COUNTRY. RIGHT. 15:15:34 WE DO, HOWEVER, DRILL FOR DRF MASSIVE OIL RELEASES, AND INLEAS 15:15:38 THIS CASE WE DID DRILL IN 2002 FOR MASSIVE OIL RELEASE FROM A 15:15:42 WELLHEAD DISCHARGE IN THE GULFE. OF MEXICO, ALTHOUGH IT WAS NOT 15:15:45 AT ALL LIKE THIS SPECIFICIKE SCENARIO. 15:15:48 AND WAS IT AS DEEP AS THISN'P WELL? 15:15:50 NO, SIR, IT WAS NOT. THI AND AS SENATOR COLLINS SAID, 15:15:53 MY UNDERSTANDING THAT INCREASINGLY IN THE GULF ANDY US 15:15:56 ELSEWHERE WE'RE USING DEEPWATERL WELLS, IS THAT TRUE BASED ON 15:15:59 WHAT YOU KNOW? WE'RE DEEPWATER DRILLING. 15:16:02 I DON'T KNOW THE EXACT NUMBEI OF DEEPWATER WELLS. 15:16:05 I KNOW IT'S SOME 1% OF ALL THE WELLS THAT ARE OUT THERE, AND I. 15:16:10 GUESS I WOULD HAVE TO REFER TO F MMS FOR THE EXACT NUMBER. WLD 15:16:13 BUT THERE IS AN INCREASINGEFER T AMOUNT OF ACTIVITY IN THE DEEPER 15:16:16 PARTS OF THE OUTER CONTINENTAL V SHELF, YES, SIR. 15:16:18 I KNOW EPTHATER THE COAST GU, AND CORRECT ME IF I'M WRONG, HAS 15:16:23 CONT RESPONSIBILITY FOR APPROVING OIL 15:16:25 SPILL RESPONSE PLANS THAT COME O FROM WHAT IS CALLED THE VEZ EL 15:16:29 OR WHAT I WOULD CALL THE RIG, WHAT'S ON THE SURFACE OF THE 15:16:33 WATER, AND THE MINERALS MANAGEMENT SERVICE HAS TOTVICE 15:16:38 APPROVE THE PLAN FOR A SPILL THOSE 15:16:40 FROM A WELL NO MATTER WHAT DEPTH. 15:16:42 BUT I WANTED TO ASK YOU IF TWO THINGS. 15:16:47 ONE IS GOING BACK TO SOMETHING G SAID IN MYOING OPENING STATEMENY 15:16:50 DOES IT MAKE SENSE THAT BP WAS ENABLED TO FILE JUST A REGIONAL 15:16:57 RESPONSE PLAN WHICH PRESUMABLY WOULD COVER BOTH DEEPWATER AND 15:17:01 MORE SHALLOW WATER WELLS ASCOVER OPPOSED TO A SPECIFIC RESPONSE 15:17:05 PLAN FOR EACH WELL, PARTICULARLS THE DEEPWATER WELLS?E 15:17:09 WELL, I CAN TELL YOU, YOU S? 15:17:12 KNOW, IN OUR CASE WE REQUIRE SPECIFIC RESPONSE PLANS PERRE SI 15:17:15 VESSEL THAT'S REQUIRED TO, THATL WE THINK MIGHT HAVE THE W 15:17:18 POTENTIAL TO DISCHARGE -- OKAY, THAT'S VERY IMPORTANT. 15:17:20 SO YOU HAVE A DIFFERENT APPROACH THAN MMS DOES ON THAT. 15:17:24 YES, SIR, WE DO. DOES ON WELL, THAT'S IMPORTANT. 15:17:27 LET ME JUST ASK YOU, FINALLY, BECAUSE MY TIME IS WINDING DOWN, 15:17:36 I THINK SECRETARY SAID ITI CORRECTLY AND I AGREE WITH HER D 15:17:39 FROM WHAT I'VE LOOKED AT, THERE FROM 15:17:41 WAS TOTAL RELIANCE PUT ON THIS W BLOWOUT PREVENTER. 15:17:44 BUT IN THE END LIKE SO MUCH, YOU , ENDIN LIFE, IT'S A PIECE OF 15:17:48 EQUIPMENT, AND THEY FAIL. IN FACT, THERE WAS SOMEUIPMENT. 15:17:50 EVIDENCE, AS I SAID, THAT THE EE BLOWOUT PREVENTERS HAD FAILE 15:17:53 SOME IN THE PAST.OU NOT A LARGE NUMBER AND NEVER THE 15:17:57 WITH A SPILL OF THIS KIND. BUT BECAUSE COAST GUARD HASE COD 15:18:05 RESPONSIBILITY FOR MARINE OIL SPILLS WHAT DO YOU THINK SHOULD 15:18:09 BE DONE TO TRY TO HAVE A LEVEL OF PREPAREDNESS THAT ALLOWS FOR 15:18:17 THE POSSIBILITY WHICH MAY BE ALE RARE, BUT AS WE SEE NOW IN THE E 15:18:21 GULF, CONSEQUENCES ARE ENORMOUSS OF A FAILURE OF A BLOWOUT 15:18:26 PREVENTER? WELL, SENATOR, I THINK THAT 15:18:28 THIS SPILL RAISES A LOT OF QUESTIONS LIKE THAT THAT WE'RE 15:18:31 GOING TO HAVE TO TAKE A GOOD, R HARD LOOK AT.IONS LIKE THAT 15:18:33 I MEAN, CLEARLY, THIS IS BEYONDD WHAT WE ANTICIPATED BEING 15:18:37 SOMETHING THAT COULD HAPPEN. WE CERTAINLY NEVER ANTICIPATEDAN 15:18:40 NN ONGOING RELEASE OF THIS HAPPE MAGNITUDE OVER THIS PERIOD OF 15:18:42 TIME.IPATED A SO I THINKN THAT THAT IS A VERY 15:18:45 QUESTION THAT HAS TO BE VERREALE ADDRESSED.HA 15:18:48 AT A MINIMUM,T WE'RE GOING TOWEH REVE TO LOOK AT OUR PLANNING 15:18:52 ADDRSED.FOR FUTURE REVISIONS OF OUR VARIOUS CONTINGENCY PLANS.OO 15:18:55 MADAM SECRETARY, I KNOW THAT YOU'RE WORKING WITH SECRETARYPL. 15:18:58 SALAZAR AND MAYBE ONE OR TWO I U OTHERS ON THIS SHORT-TERM WITH 15:19:04 SECRET INVESTIGATION STUDY THAT THE 15:19:05 PRESIDENT HAS ASKED ON YOU TO D, AND I HOPE -- I'M SURE YOU AED T 15:19:07 PROBABLY WERE O DOING IT SUR ALREADY -- THAT YOU'LL TAKE AG T 15:19:10 CLOSE LOOK AT THE SPECIAL SPECIL REQUIREMENTS FOR PROTECTION THAT 15:19:15 IT SEEMS TO ME WE NOW HAVE ALL V LEARNED HAVE TO APPLY TO 15:19:19 DEEPWATER DRILLING, INCLUDING THE BLOWOUT PREVENTERS THAT IBRD 15:19:23 FEAR OR WERE NOT APPLIED BY MMS BEFORE. 15:19:26 IF I MIGHT, MR. CHAIRMAN, YOU KNOW, WITH EVERY INCIDENT THAT 15:19:33 OCCURS LESSONS ARE LEARNED.NTS T RIGHT. W 15:19:35 AND I THINK THAT'S ONE OF THE REASONS WHY THE PRESIDENT HAS WT 15:19:39 BEEN SO VERY CLEAR THAT FURTHER DEEPWATER DRILLING PERMITS ARE 15:19:44 GOING TO BE STOPPED UNTIL THISDR CAN BE INVESTIGATED AND 15:19:50 WSURANCES CAN BE GAINED THATTHS THINGS HAVE BEEN CHANGED SO THAS 15:19:53 WE DON'T HAVE A DUPLICATION OF THE DEEPWATER HORIZON INCIDENT. 15:19:57 AND I THINK, YOU KNOW, PRUDENCE WOULD DICTATE THAT THAT WOULD BE 15:20:01 WHAT WOULD HAPPEN. AND SO I THINK WE'RE ALL WORKING 15:20:04 TOGETHER TO SAY, ALL RIGHT, WHAD HAPPENS HERE -- WHAT HAPPENED 15:20:11 HERE, WHAT POWER SHOULD MMS HAVE THAT IT SHOULDN'T HAVE HAD, WHAD 15:20:16 POWERS DID IT NOT EXERCISE, WASE THERE OVERRELIANCE ON THE EXERC? 15:20:20 B.O.P., WHAT HAPPENED WITH THE B.O.P.? 15:20:25 I SAID I THINK THAT PERHAPS THERE MAY BE A FEW LAWYERS THAT 15:20:29 GET INVOLVED IN SOME OF THAT AS THE LITIGATION HAPPENS, BUT I 15:20:33 THINK THE PRESIDENT WAS HAPPENS ABSOLUTELY RIGHT LAST FRIDAY TO 15:20:36 SAY THIS ISN'T ABOUT, YOU KNOW, FOR'S RESPONSIBLE FOR PAYING. 15:20:42 OUR WORK IS TO MAKE SURE THAT THIS WELL IS CAPPED, TO MAKE 15:20:46 SURE THAT IT IS CLEANED UP, TO A MAKE SURE THAT OIL IS PREVENTEDO 15:20:51 FROM HITTING LANDFALL, AND WHEN NT DOES, THAT IT IS CLEANED UP,E 15:20:55 THAT ALL CLAIMS ARE PAID AND THAT THEY ARE DONE SO PROMPTLY. 15:20:58 AND TO ME, THAT'S THE DEFINITIOP RIGHT NOW OF THIS RESPONSE AND R 15:21:04 WHEN WE WILL DECLARE THE RESPONSE OVER. 15:21:06 THANK YOU. SENATOR COLLINS. 15:21:08 THANK YOU, MR. CHAIRMAN. C THE CHAIRMAN MENTIONED THE 15:21:13 DIVIDED RESPONSIBILITY FOR APPROVAL OF THE OIL RESPONSE THE 15:21:18 PLANS BETWEEN MMS AND THE COASTT GUARD.HE 15:21:23 THIS MY STATEMENT -- IN MY STATEMENT I RAISED THE QUESTION 15:21:26 OF WHY WOULDN'T YOU HAVE THE NOT COAST GUARD HAVE SOME SHARING OF 15:21:31 INFORMATION WITH MEASURING MS -- MMS SUCH THAT THE COAST GUARD 15:21:36 WOULD BE RESPONSIBLE FOR SOME BE SORT OF CONCURRENT APPROVAL OF 15:21:40 THE PLAN. IT DOESN'T MAKE A LOT OF SPENCE 15:21:44 AT FIRST -- SENSE AT FIRST BLUSH TO HAVE ONE AGENCY RESPONSIBLE 15:21:48 FOR APPROVING THE PLAN IF IT'S E ABOVE THE WATER FOR THE VESSELE 15:21:53 AND ONE, A DIFFERENT AGENCY ANDN A DIFFERENT DEPARTMENT EVEN, DEM 15:21:59 RESPONSIBLE IF THE PLAN APPLIES TO THE WELLHEAD. 15:22:03 HAS THERE BEEN ANY THOUGHT TO AT LEAST BROADENING THE COAST T COT 15:22:10 GUARD'S RESPONSIBILITY IN THISDB AREA, MADAM SECRETARY? 15:22:13 SENATOR COLLINS, I THINK SEN 15:22:15 THERE'LL BE A LOT OF DIFFERENT THINGS LOOKED AT AS TO WHO HAS 15:22:19 WHAT AUTHORITIES AND WHATWHAT AUTHORITIES NEED TO BE ADJUSTED 15:22:22 IN LIGHT OF THIS. SPEAKING FOR MYSELF RIGHT NOW, I 15:22:26 THINK THAT'S ONE OF THE AUGITIMATE QUESTIONS OR WHAT 15:22:29 AUTHORITIES THAT WE NEED TO BE LOOKING INTO. BE IN LIGH 15:22:30 ADMIRAL? QUESTNS I WOULD CONCUR WITH THE>> 15:22:34 SECRETARY. I THINK THAT MOVING FORWARD WE 15:22:36 NEED TO LOOK AT WHETHER OR NOTMO THERE NEEDS TO BE AVI DEFINITIVE 15:22:39 STATEMENT WITH RESPECT TO THAT O CONCURRENT REVIEW. 15:22:41 AS YOU KNOW, WE DO CURRENTLYWE HAVE MEMORANDUMS OFAVE 15:22:45 UNDERSTANDING WITH THE MMS WHICE WOULD ALLOW US TO REVIEW THOSE 15:22:47 WOULD PLANS, BUT THERE IS NOW 15:22:49 REQUIREMENT TO DO SO. ADMIRAL, THIS CATASTROPHE IS 15:22:52 THE FIRST SPILL TO BE CLASSIFIED AS A SPILL OF NATIONAL 15:22:59 SIGNIFICANCE SINCE THAT TERM WAI FIRST COINED IN THE WAKE OF THE 15:23:04 EXXONIN VALDEZ DISASTER IN 1989S DURING THE INTERVENING 20-PLUS 15:23:11 YEARS, SOME HAVE EXPRESSED THE CONCERN THAT BECAUSE OUR NATION, 15:23:18 FORTUNATELY, HAS NOT BEEN FORCED TO RESPOND TO A MAJOR OIL SPILL 15:23:22 IN SUCH A LONG TIME THAT WE'VE LOST THE EXPERTISE AND 15:23:28 INSTITUTIONAL KNOWLEDGE THAT IS NECESSARY FOR A QUICK AND THA 15:23:32 EFFECTIVE RESPONSE.TIVE AND, INDEED, IN 2004 WHEN THEN 15:23:38 COAST GUARD DID AN EXERCISE IN THIS AREA, THE AFTER-ACTION 15:23:45 REPORT HAD SOME TROUBLING I WALUSIONS, AND I WANT TO READ 15:23:48 FROM THAT. THE AFTER-ACTION REPORTTHE 15:23:53 CONCLUDED, QUOTE, THAT OIL SPILL RESPONSE PERSONNEL DID NOTONNELT 15:23:58 APPEAR TO HAVE EVEN A BASIC KNOWLEDGE OF THE EQUIPMENT OF TE 15:24:03 REQUIRED TO SUPPORT SALVAGE OR O SPILL CLEAN-UP OPERATIONS.LEAN-P 15:24:07 THERE WAS A SHORTAGE OF PERSONNEL WITH THE EXPERIENCE TO 15:24:12 FILL KEY POSITIONS.FILL MANY MID-LEVEL SPILL MANAGEMENT- 15:24:16 STAFF HAD NEVER WORKED ON A WOR LARGE SPILL AND SOME HAD NEVER 15:24:21 BEEN INVOLVED IN AN EXERCISE.ANH ..AD 15:24:26 I KNOW THERE HAVE BEEN TWO SUBSEQUENT EXERCISES SINCE THEN, 15:24:30 INCLUDING THE ONE HOSTED BY THE STATE OF MAINE THIS SPRING, FOR 15:24:34 WHICH THE AFTER ACTION REPORT HAS NOT YET BEEN WRITTEN. 15:24:38 WHAT IS YOUR ASSESSMENT OF THE EXPERTISE THAT WE HAVE TODAY IN 15:24:45 GOVERNMENT AND IN THE INDUSTRY TO DEAL WITH A MAJOR OIL SPILL? 15:24:50 SENATOR, I THINK YOU ARE REFERRING TO THE 2004 DRILLING 15:24:55 IN LOS ANGELES AND LONG BEACH HARBOR. 15:24:57 I WAS A UNIFIED COMMANDER FOR THAT EXERCISE. 15:25:00 THOSE WERE MY RECOMMENDATIONS THAT YOU JUST READ THAT CAME OUT 15:25:02 OF THAT. BUT YOU TEND TO AGREE WITH THEM. 15:25:07 I DID AT THE TIME. -- YOU TEND TO AGREE WITH 15:25:12 THEM. I DID AT THAT TIME. 15:25:15 WE HAVE DONE A LOT TO IMPROVE OUR ABILITY. 15:25:18 IF YOU LOOK AT THE SUBSEQUENT EXERCISES IN THE INTERVENING 15:25:22 PERIODIC ANNUAL AND TRY ANNUAL EXERCISES THAT WE DO, -- 15:25:28 TRIANNUAL EXERCISES THAT WE DO, WE HAVE LEARNED A LOT. 15:25:33 WE HAVE NOT HAD A MAJOR OIL SPILL, BUT THAT DOES NOT KEEP US 15:25:36 FROM PREPARING EFFECTIVELY FOR IT. 15:25:40 DO WE HAVE THAT EXPERTISE NOW? 15:25:44 CLEARLY, IF YOU ARE ACTUALLY CLEANING UP OIL, THERE IS AN 15:25:49 EXPERTISE AT YOU DEVELOP THAT CANNOT BE DEVELOPED IN ANY OTHER 15:25:53 WAY. I THINK WE HAVE THE CAPABILITY 15:25:56 NOW. WE HAVE A LOT OF PEOPLE WHO LOOK 15:25:57 AT THIS OVER AN EXTENDED TIME PERIOD. 15:26:03 YOU THE CAPABILITY IN THE PRIVATE INDUSTRY WITH RESPECT TO 15:26:05 THE ORGANIZATIONS WHO ARE REQUIRED TO MAINTAIN 15:26:12 EXPERTISE. WE STILL HAVE A NUMBER OF 15:26:13 ONGOING MINOR SPILLS THAT PROVIDE OPPORTUNITIES FOR 15:26:16 TRAINING PEOPLE IN RESPONDING. WE HAVE THE CAPABILITY. 15:26:20 IN THE CASE OF THIS OIL SPILL, I HAVE BEEN VERY IMPRESSED. 15:26:24 I'VE SPENT QUITE A BIT OF THE LAST COUPLE OF WEEKS DOWN IN THE 15:26:27 GULF, AROUND THE AREA AND AT THE COMMAND CENTER, AND WATCHING THE 15:26:35 OPERATIONS. I HAVE BEEN VERY IMPRESSED WITH 15:26:36 WHAT I HAVE SEEN. MADAM SECRETARY, YOU 15:26:40 MENTIONED THE FEDERAL RESOURCES THAT HAVE BEEN BROUGHT TO BEAR 15:26:44 ON THIS CATASTROPHE AND THE FACT THAT THE COWS ARE -- THE COAST 15:26:51 GUARD WAS ON SEEN IMMEDIATELY. THERE HAVE BEEN SOME QUESTIONS 15:26:53 ABOUT WHETHER RESOURCES -- THE COAST GUARD WAS ON-SCENE 15:27:02 IMMEDIATELY. THERE HAVE BEEN SOME QUESTIONS 15:27:04 ABOUT WHETHER RESOURCES WERE DISPERSED IMMEDIATELY. 15:27:13 SEARCH AND RESCUE WAS NOT FOCUSED ON CONTAINING THE OIL 15:27:18 SPILL. WHAT IS YOUR ASSESSMENT OF THE 15:27:23 RESOURCES, THE ADEQUACY, AND THE TIMELINESS IN OF THE 15:27:29 RESOURCES THAT BRITISH PETROLEUM AND ITS PARTNERS BROUGHT TO THE 15:27:33 TASK IN THOSE INITIAL DAYS. I THOUGHT YOU WERE GOING TO 15:27:39 ASK A DIFFERENT QUESTION. WELL, I THOUGHT OF ASKING YOU 15:27:44 WHETHER YOU WERE SATISFIED WITH THE FEDERAL RESPONSE. 15:27:47 BUT I HAVE A FEELING -- I KNOW WHAT THE ANSWER TO THAT WOULD 15:27:49 BE. SO I DECIDED TO ASK YOU ABOUT 15:27:53 THE PRIVATE SECTOR RESPONSE. WELL, AND YES, AND THAT'S ONE 15:27:57 OF THE REASONS WHY I WANTED TO GIVE YOU REALLY THE TICK TOCK OF 15:27:59 THE FEDERAL RESPONSE. BECAUSE RECOGNIZING THAT THE 15:28:05 EXPLOSION OCCURRED LATE ON THE EVENING OF THE 20th, THEN YOU GO 15:28:10 ON THE 22nd, THE RIG SINKS. YOU GO THE 24TH AND YOU BEGIN 15:28:19 SEEING FIRST SIGNS OF LEAKING HOLLYWOOD AND THEN ON THE 28th 15:28:24 IS WHEN YOU HAD SIGNS OF THE THIRD LEAK OF THE RISERS. 15:28:34 I WOULD LIKE TO, IF I MIGHT, RESERVE JUDGMENT ON THE ADEQUACY 15:28:40 OF THE PRIVATE SECTOR RESPONSE. I WILL SAY THAT BRITISH 15:28:45 PETROLEUM LEADERSHIP, BOTH THE AMERICAN HEAD OF BRITISH 15:28:49 PETROLEUM AND THE INTERNATIONAL HEAD, WERE IN WASHINGTON VERY 15:28:51 QUICKLY. THEY WERE IMMEDIATELY ASSUMING 15:28:56 RESPONSIBILITY AS THE RESPONSIBLE PARTY, WHICH THEY 15:28:58 SHOULD AND SHOULD HAVE. THEY HAVE BEEN IN THE COMMAND 15:29:05 CENTERS AND IN THE STAGING AREAS. 15:29:10 THEY HAVE BEEN WORKING IN TERMS OF CLEANUP AND GETTING -- 15:29:15 HIRING, FOR EXAMPLE, LOCAL FISHERMAN TO DEPLOY BOOM AND THE 15:29:19 REST. WHETHER THE EXACT HOURS AROUND 15:29:23 THE SINKING -- EXPLOSION AND SINKING OF THE RIG, THEY SHOULD 15:29:26 HAVE HAD MORE OR DIFFERENT EQUIPMENT THERE OR MORE OR 15:29:30 DIFFERENT KINDS OF EXPERTISE THERE, IT WOULD BE PREMATURE OF 15:29:32 ME TO SAY. THANK YOU. 15:29:36 THANKS VERY MUCH, SENATOR COLLINS. 15:29:40 SENATOR McCAIN AND THEN SENATOR LANDRIEU IN ORDER OF APPEARANCE. 15:29:42 GOOD AFTERNOON. THANK YOU. 15:29:46 THANK YOU FOR BEING HERE, MADAM SECRETARY AND ADMIRAL. 15:29:51 MAYBE, MADAM SECRETARY, TO LIFT THIS UP A LITTLE BIT. 15:29:54 WHAT'S YOUR BEST CASE SCENARIO AND WORSE CASE SCENARIO ABOUT 15:29:57 THIS CRISIS RIGHT NOW? WELL, OBVIOUSLY WE WOULD LIKE 15:30:05 TO SEE THE INSERTION PIPE CONTINUE TO WORK AND LIFT OIL 15:30:07 OFF THE SURFACE. WE'D LIKE TO SEE WHEN AND IF THE 15:30:13 TOP-KILL METHODOLOGY IS DEPLOYED AND THAT IT WORKS AND THAT OIL 15:30:18 IMMEDIATELY BEGINS TO BE LIFTED OFF THE SEA FLOOR AS TO THE SEA 15:30:23 SURFACE. IF THEY ARE DRILLING THE RELIEF 15:30:27 WELL AND HIT IT THE FIRST TIME. AND WHEN YOU'RE DRILLING THESE 15:30:31 WELLS MY UNDERSTANDING YOU DON'T NECESSARILY HIT THE PLACE YOU 15:30:33 NEED TO HIT THE FIRST TIME. THAT WOULD BE THE BEST CASE 15:30:36 SCENARIO. WE ON THE OTHER HAND HAVE FROM 15:30:43 THE BEGINNING NOT PLANNED OUR RESPONSE BASED ON NUMBERS OR 15:30:47 BASED ON -- WHETHER 5,000 BARRELS OR 25,000 BARRELS. 15:30:54 OUR RESPONSE IS GEARED TO WHAT IS NECESSARY TO FIGHT THE OIL ON 15:30:56 THE SEA. TO PREVENT THE OIL FROM HITTING 15:30:59 LAND. AND IF IT HITS LAND, TO CLEAN IT 15:31:01 UP IMMEDIATELY. WORSE CASE SCENARIO? 15:31:07 WORSE CASE SCENARIO IS THAT WE'LL BE AT THIS FOR QUITE A 15:31:09 WHILE. AND THE -- AND WHERE DO YOU 15:31:15 THINK WE ARE IN EITHER SCENARIO? WELL, YOU KNOW, IF THE 15:31:21 INSERTION -- THE RRT IS IN RIGHT NOW. 15:31:24 AND IF IT BEGINS TO LIFT OIL AS IT LOOKS PROMISING THAT IT IS, 15:31:27 AND THEY'RE ABLE TO DO THE JUNK-FILL, THAT WOULD HAPPEN BY 15:31:30 THE END OF THE WEEK. BUT IN TERMS OF DRILLING ANOTHER 15:31:38 RELIEF WELL, I THINK WE'RE SOME WEEKS AWAY, WELL INTO THE 15:31:40 SUMMER. I THINK THERE'S A BP WITNESS 15:31:42 AFTER ME. YOU MIGHT ASK HIM. 15:31:46 AND WHERE'S YOUR LEVEL OF OPTIMISM? 15:31:54 I'M JUST TAKING IT DAY BY DAY. 15:31:56 AND I THINK THAT'S WHAT WE NEED TO DO. 15:31:59 I THINK WE NEED TO JUST SAY, LOOK, WE'RE IN THE MIDDLE OF 15:32:01 THIS CRISIS. WE'RE NOT AT THE BEGINNING. 15:32:07 WE'VE BEEN AT IT A MONTH ALMOST. BUT WE'RE NOT AT THE END AS 15:32:09 WELL. BUT IN MY VIEW, OUR JOB IS TO 15:32:14 JUST KEEP MOVING AND JUST KEEP ASSEMBLING, DEPLOYING, 15:32:19 PREPARING, CLEANING AND KEEPING TRACK OF WHAT WE'RE SPENDING 15:32:22 BECAUSE ULTIMATELY THE TAXPAYERS SHOULDN'T HAVE TO BEAR THIS 15:32:24 COST. AND YOU HAVE DISPATCHED 15:32:30 17,000 NATIONAL GUARD TO HELP OUT AND CLEANUP AND OTHER 15:32:34 EFFORTS TO BE MADE ON THE GULF; IS THAT RIGHT? 15:32:39 THERE HAVE BEEN UP TO 17,000 THAT HAVE BEEN AUTHORIZED. 15:32:42 I BELIEVE THERE ARE A THOUSAND OR SO THAT ARE ACTUALLY WORKING 15:32:43 RIGHT NOW. AND WHAT DO YOU EXPECT? 15:32:47 IT DEPENDS. IT DEPENDS ON WHETHER WE 15:32:55 CONTINUE TO SEE OIL REACHING THE SHORE. 15:32:57 IT DEPENDS -- WE'RE GOING TO HAVE TO START ROTATING PEOPLE IN 15:32:59 AND OUT. IN TERMS OF DOING AIR FLIGHTS 15:33:04 OVER THE BOOM AND MONITORING IT AND REPLACING IT BECAUSE IT 15:33:07 DOESN'T LAST, YOU KNOW, FOREVER OUT THERE. 15:33:08 IT GETS -- IT GETS BROKEN. WE'RE GOING TO NEED TO REPLACE 15:33:14 PEOPLE IN TERMS OF STAFFING, THE FORWARD OPERATING CENTERS AND 15:33:17 THE LIKE. SO I THINK OVER THE COURSE OF 15:33:22 THE SUMMER, WE'LL SEE A NUMBER OF THE GUARD DEPLOYED. 15:33:25 IN THOSE KINDS OF CAPACITIES, SIR. 15:33:27 WELL, IF YOU'LL INDULGE ME, WE THINK WE HAVE ANOTHER CRISIS 15:33:32 ON THE BORDER. AND I SENT YOU A LETTER ON APRIL 15:33:36 6th -- EXCUSE ME, BACK IN MARCH. YOU SENT ME A LETTER BACK ON 15:33:40 APRIL 9th, WELL OVER A MONTH AGO, IN RESPONSE TO OUR REQUEST 15:33:46 THAT THE GUARD BE SENT TO THE ARIZONA/MEXICO BORDER, AND I 15:33:51 QUOTE FROM YOUR RESPONSE, THE NATIONAL GUARD HAS A POTENTIAL 15:33:54 TO CONTRIBUTE ADDITIONAL CAPABILITIES AND CAPACITIES TO 15:33:57 ASSIST LAW ENFORCEMENT AGENCIES AND THEIR BORDER SECURITY AND 15:33:58 LAW ENFORCEMENT MISSIONS. THE USE OF THE GUARD TO SUPPORT 15:34:02 LAW ENFORCEMENT EFFORTS IS ONE OF THE MANY OPTIONS BEING 15:34:07 CONSIDERED IN THE ADMINISTRATION'S OVERALL BORDER 15:34:09 SECURITY STRATEGY. I'LL KEEP YOU INFORMED AS OUR 15:34:13 FORCE MULTIPLICATION ALONG THE SOUTHWEST BORDER CONTINUES. 15:34:17 DO YOU HAVE NOW IN THE INTERVENING MONTH AND -- OVER A 15:34:21 MONTH ANYTHING TO KEEP ME INFORMED ABOUT? 15:34:23 YES, I DO ACTUALLY BECAUSE WE'VE BEEN WORKING THE SOUTHWEST 15:34:29 BORDER ISSUE CONSTANTLY. AND HARD. 15:34:33 BUT LET ME -- IF I MIGHT, SENATOR, WE'LL GIVE YOUR STAFF 15:34:38 IF WE HAVE NOT ALREADY, I APOLOGIZE A MORE EXTENSIVE 15:34:40 BRIEFING. BUT WE HAVE -- I'M GOING TO USE 15:34:45 AS MY START DATE, THE DATE OF THE MURDER OF ROB KRENZ THE 15:34:51 RANCHER NEAR DOUGLAS. WE HAVE INCREASED FLIGHT HOURS, 15:34:57 50% OVER THE TUCSON SECTOR SINCE THE DAY OF THAT MURDER. 15:35:03 WE HAVE 24/7 COVERAGE THERE. AND WE CONTINUE TO INCREASE ON 15:35:12 BOTH THE FIXED AND ROTOR WING AIRCRAFT. 15:35:16 JUST ON THE TUCSON AREA, NOT JUST AT THE BORDER. 15:35:20 WE WILL MOVE AND I WILL GIVE YOU EXACT NUMBERS, MOBILE 15:35:23 SURVEILLANCE -- I DON'T MEAN TO INTERRUPT, 15:35:25 GOVERNOR, BUT I'M NOT -- MADAM SECRETARY. 15:35:27 BUT I KNOW ALL THOSE THINGS ARE GOING ON. 15:35:29 I WANT TO KNOW ABOUT WHETHER YOU'RE GOING TO SEND THE GUARDS 15:35:31 TO THE BORDER OR NOT? AS YOU KNOW, IF I MIGHT, GIVE 15:35:37 YOU ONE OTHER THING THAT WE HAVE ADDED IN ADDITION TO NUMBERS. 15:35:42 AND THAT WILL BE STARTING AT THE END OF THIS MONTH. 15:35:47 BUT BEGINNING AGAIN THE PROCESS OF INTERIOR REPATRIATION OF 15:35:49 EVERYBODY THAT WE PICK UP. BUT WITH RESPECT TO THE GUARD, 15:36:00 THOSE REQUESTS AS YOU KNOW ARE INVOLVED IN THE DEPARTMENT OF 15:36:03 DEFENSE. THEY INVOLVE THE DEPARTMENT OF 15:36:07 HOMELAND SECURITY AND INVOLVE THE WHITE HOUSE. 15:36:10 THAT QUEST AND THAT ANALYSIS REMAINS IN THAT INTERAGENCY 15:36:13 PROCESS. AND DO WE HAVE ANY IDEA AS TO 15:36:16 WHEN THAT DECISION MIGHT BE MADE? 15:36:19 I WOULD LIKE IT TO BE MADE AS SOON AS POSSIBLE. 15:36:21 BUT I CANNOT GIVE YOU A DATE CERTAIN. 15:36:26 WELL, MEANWHILE, PEOPLE'S HOMES ARE BEING VIOLATED AND 15:36:29 THEIR FAMILIES CAN'T TAKE KIDS TO THE BUS STOP. 15:36:34 AND YOU'RE VERY FAMILIAR WITH THE ISSUE BECAUSE YOU YOURSELVES 15:36:39 YOURSELF ASKED FOR THE GUARD TO GO TO THE BORDER BACK IN 2006. 15:36:43 SO I DON'T KNOW WHAT IT TAKES FOR US TO GET A DECISION ON IT. 15:36:47 AT LEAST THE PEOPLE IN MY STATE HAVE THE RIGHT TO KNOW WHETHER, 15:36:55 SINCE THIS IS A LONG-STANDING REQUEST, IN FACT, IT WAS 15:37:00 REQUESTED BACK IN 2009 -- I THINK THEY HAVE A RIGHT TO KNOW 15:37:02 WHETHER THEY ARE GOING TO BE SENT OR NOT. 15:37:08 I WOULD HOPE YOU WOULD EXPEDITE THAT PROCESS AT LEAST TELLING US 15:37:13 WHETHER THEY'RE GOING TO BE SENT OR NOT. 15:37:17 FINALLY, IF I MIGHT ASK OF YOU, HAVE YOU HAD A CHANCE TO REVIEW 15:37:20 THE NEW LAW THAT WAS PASSED BY THE STATE OF ARIZONA? 15:37:24 I'VE NOT REVIEWED IT IN DETAIL. 15:37:25 I CERTAINLY KNOW OF IT, SENATOR. SO YOU'RE NOT PREPARED TO 15:37:29 MAKE A JUDGMENT ON IT? SENATOR, THAT IS NOT A LAW -- 15:37:41 LET ME JUST SAY THIS. AS YOU KNOW, AND ARE WELL AWARE, 15:37:49 THAT'S NOT THE KIND OF LAW I WOULD HAVE SIGNED? 15:37:50 FOR WHAT REASON? BECAUSE I BELIEVE IT'S A BAD 15:37:55 LAW ENFORCEMENT LAW. I BELIEVE IT MANDATES AND 15:37:59 REQUIRES LOCAL LAW ENFORCEMENT -- OR PUTS THEM IN A 15:38:01 POSITION MANY DO NOT WANT TO BE PLACED IN. 15:38:05 WHEN I WAS DEALING WITH LAWS HAVE THAT ILK, MOST OF THE LAW 15:38:11 ENFORCEMENT ORGANIZATIONS IN ARIZONA AT THAT TIME WERE 15:38:14 OPPOSED TO SUCH LEGISLATION. WELL, I'D BE PLEASED MAYBE IN 15:38:18 WRITING TO HEAR WHAT SPECIFIC ASPECT OF THE LAW WOULD IMPEDE 15:38:23 OR HARM LAW ENFORCEMENT SINCE THE MAJORITY OF LAW ENFORCEMENT 15:38:27 IN ARIZONA STRONGLY SUPPORTS THIS LEGISLATION. 15:38:33 AND UNFORTUNATELY BOTH THE PRESIDENT OF THE UNITED STATES 15:38:34 AND -- THE PRESIDENT OF THE UNITED STATES PORTRAYED IT AS 15:38:38 A -- THAT SOMEONE CAN'T EVEN GO OUT FOR ICE CREAM WITHOUT BEING 15:38:42 HARASSED, WHICH IS ONE OF THE MORE OUTRAGEOUS STATEMENTS I'VE 15:38:44 EVER HEARD. AND NOW OUR OWN ATTORNEY GENERAL 15:38:50 HAS -- AFTER CONDEMNING THE LAW SAID HE HADN'T EVEN READ IT. 15:38:54 THIS IS AN IMPORTANT ISSUE, NOT JUST IN ARIZONA, BUT AROUND THIS 15:38:57 COUNTRY. I WOULD HOPE THAT WE WOULD AT 15:39:00 LEAST HAVE A DECISION ON WHETHER THE GUARD IS GOING TO BE SENT TO 15:39:02 THE BORDER. AND I WOULD LIKE TO HAVE 15:39:06 SPECIFICS, IF YOU GET TIME, AND I KNOW IT'S NOT IN YOUR AREA OF 15:39:10 EXPERTISE ANYMORE -- BUT I KNOW ALSO AS A FORMER GOVERNOR OF THE 15:39:15 STATE, YOU HAVE A SIGNIFICANT INTEREST OF WHAT PARTICULAR 15:39:18 ASPECTS OF THAT LAW THAT YOU WOULD FIND OBJECTIONABLE. 15:39:20 THANK YOU, MR. CHAIRMAN. THANKS, SENATOR MARION. 15:39:23 -- McCAIN. SENATOR LANDRIEU, THANKS FOR 15:39:27 BEING HERE. YOU'VE COME TO ONE OF THESE 15:39:31 INQUIRIES AS YOU DID SO OFTEN DURING THE KATRINA 15:39:35 INVESTIGATIONS WITH A REAL PERSONAL INTEREST ON BEHALF OF 15:39:36 YOUR STATE. SO I APPRECIATE THAT YOU'RE 15:39:37 HERE. AND I LOOK FORWARD TO YOUR 15:39:39 QUESTIONS NOW. THANK YOU, MR. CHAIRMAN. 15:39:42 MY JOB IS MADE SOMEWHAT EASIER BECAUSE OF THE WORK THAT YOU AND 15:39:45 THE RANKING MEMBER HAVE DONE. AND I MEAN THAT SINCERELY. 15:39:47 AND I THANK YOU. SENATOR COLLINS FOR CALLING THIS 15:39:52 HEARING. I'VE ACTUALLY ENCOURAGED THE 15:39:55 CALLING OF HEARINGS OF A VARIETY OF DIFFERENT HEARINGS BECAUSE 15:39:59 OBVIOUSLY THE PEOPLE THAT I REPRESENT WOULD LIKE TO ANSWERS. 15:40:00 THEY'RE EXTREMELY CONCERNED. EVERYONE IN THE STATE, ALONG THE 15:40:05 GULF COAST PARTICULARLY THOSE ALONG THE COASTAL COMMUNITIES. 15:40:09 SO I WANT TO BEGIN, MR. CHAIRMAN, BY SAYING THAT THE 15:40:12 QUESTIONS THAT YOU ASKED IN YOUR OPENING STATEMENT, I HOPE THAT 15:40:15 WE WILL GET ANSWERS TO. AND I THOUGHT THAT THEY WERE 15:40:18 EXCELLENT AND RIGHT ON POINT. SECONDLY, MADAM SECRETARY, I 15:40:24 WANT TO THANK YOU FOR YOUR MULTIVISITS TO LOUISIANA OVER 15:40:28 THE LAST SEVERAL MONTHS BEFORE THIS INCIDENT HAPPENED. 15:40:32 WORKING ON THE LAST INCIDENT THAT OCCURRED AS WELL AS YOUR 15:40:35 TIME FOCUSED ON THIS ONE. AND THE MANY SENIOR-LEVEL 15:40:42 OFFICIALS THAT HAVE BEEN ON THE GROUND FROM THE COAST GUARD TO 15:40:44 THE INTERIOR DEPARTMENT TO NOAA, TO EPA. 15:40:48 YOU ALL HAVEN'T JUST SENT YOUR MIDMANAGERS OR YOUR NEWLY 15:40:54 APPOINTED DIRECTORS BUT YOUR CABINET OFFICIALS THERE HAVE 15:40:56 BEEN AND CONTINUE. AND I GET GOOD FEEDBACK FROM 15:41:01 REPUBLICAN AND DEMOCRATIC LOCAL OFFICIALS BECAUSE OF THAT. 15:41:05 AND I WANT ON THEIR BEHALF EXPRESS OUR THANKS. 15:41:09 I WOULD SAY THAT THE PEOPLE IN LOUISIANA ARE VERY INTERESTED IN 15:41:11 A COUPLE OF IMPORTANT QUESTIONS. SOME OF WHICH YOU HIT. 15:41:16 WHEN HAVE WILL THIS UNCONTROLLED FLOW BE STOPPED? 15:41:20 IS EVERYTHING BEING DONE THAT CAN POSSIBLY BE DONE? 15:41:22 WHEN AND HOW WILL CLAIMS BE PAID? 15:41:23 WILL THEY BE TRANSPARENT? WILL THEY BE ADEQUATE? 15:41:27 WHAT ARE THE LONG-TERM IMPACTS TO OUR FISHERIES, WHICH IS A 15:41:30 MULTIBILLION DOLLAR INDUSTRY, AS YOU KNOW. 15:41:33 AND HOW CAN THIS INDUSTRY BE MADE SAFER FOR THE FUTURE? 15:41:39 I'M NOT GOING TO ASK YOU TO RESPOND TO ALL A FOUR OF THOSE 15:41:42 NOW. BUT IN WRITING I WOULD LIKE SOME 15:41:45 RESPONSE. I WOULD LIKE TO TAKE A MINUTE OF 15:41:47 MY QUESTIONS, MR. CHAIRMAN, TO PUT SOME THINGS IN PERSPECTIVE 15:41:51 FOR THIS SITUATION. I THINK IT'S IMPORTANT. 15:41:54 I DID THIS AT THE OVERSIGHT HEARING ON ENERGY. 15:41:58 I DID THIS AT THE OVERSIGHT HEARING FOR THE EPW HEARING. 15:42:00 AND I'D LIKE TO DO IT TODAY. THERE ARE 42,645 WELLS THAT HAVE 15:42:09 BEEN DRILLED IN STATE AND FEDERAL WATERS IN THE GULF OF 15:42:10 MEXICO. ALONE. 15:42:14 THE FIRST DEEP WELL WAS DRILLED 31 YEARS AGO. 15:42:17 NOT LAST WEEK. THE FIRST DEEP WELL 31 YEARS AGO 15:42:21 IN 1979. FROM THAT TIME UNTIL 2008, THERE 15:42:29 HAVE BEEN 2,239 DEEP WATER WELLS DRILLED AVERAGING APPROXIMATELY 15:42:35 133 WELLS PER YEAR. GETTING TO YOUR POINT, RANKING 15:42:42 MEMBER COLLINS, IN 1990, YOU'RE CORRECT. 15:42:45 ONLY 4% OF THE OIL COMING FROM THE GULF WAS RESPONSIBLE IN THE 15:42:48 DEEP WATER. ONLY 4%. 15:42:51 BUT TODAY 60% OF THE OIL COMING FROM THE GULF COMES FROM DEEP 15:42:55 WATER AND ULTRA DEEP WATER. THE RECORD WILL SHOW THAT FROM 15:43:01 1947 TO 2009, ONLY 1, -- I'M SORRY 175,000 BARRELS HAVE BEEN 15:43:07 SPILLED OUT OF 16 BILLION PRODUCED. 15:43:10 THAT'S ABOUT ONE THOUSANDTH OF 1% OF TOTAL PRODUCTION. 15:43:13 SO UNTIL THIS HAPPENED, THE RECORD WAS PRETTY GOOD. 15:43:18 THE PROBLEM IS, THIS BLOWOUT IS PUTTING MORE OIL IN THE WATER IN 15:43:24 ONE AND A HALF DAYS THAN HAS BEEN PUT IN THIS WATER IN THE 15:43:25 LAST DECADE. THAT IS STARTLING TO THOSE OF US 15:43:30 THAT ARE FAIRLY FAMILIAR WITH THE INDUSTRY. 15:43:32 AND WE'RE EXTREMELY CONCERNED AND WANT IT TO BE SAFER. 15:43:37 SO, ONE, I SUPPORT THE PRESIDENT'S 30-DAY LOOK. 15:43:41 I MOST CERTAINLY SUPPORT TIGHTER CONTROLS OVER DEEP WATER WELLS. 15:43:44 AND WOULD SAY TO THIS COMMITTEE, WE PIONEERED THIS TECHNOLOGY IN 15:43:46 THE GULF. GULF OF MEXICO. 15:43:49 WE DID. IT'S IMPORTANT THAT WE GET THIS 15:43:53 RIGHT BECAUSE IT HAS A MAJOR IMPACT ON HOW THESE WELLS ARE 15:43:55 DRILLED AROUND THE WORLD. IF OURS ARE SAFE, MOST OTHER 15:43:59 COUNTRIES WILL BE SAFE. AND WE HAVE AN OBLIGATION NOT 15:44:04 JUST TO OURSELVES BUT TO THE PEOPLE OF THE PLANET ACTUALLY. 15:44:08 SO LET ME ASK A COUPLE THINGS 'CAUSE I'M EXTREMELY INTERESTED 15:44:12 IN HOW MUCH MONEY OUR GOVERNMENT HAS SPENT ON RESEARCH AND 15:44:18 DEVELOPMENT, EITHER THROUGH HOMELAND SECURITY, EPA, NOAA, OR 15:44:20 INTERIOR? DO YOU ALL HAVE A RECORD? 15:44:24 NOW YOU WON'T HAVE FROM THOSE OTHER AGENCIES BUT MADAM 15:44:27 SECRETARY, FROM YOUR OWN AGENCY, DO YOU KNOW IF ANY MONEY? 15:44:30 AND IF SO WHAT THE DOLLAR AMOUNT IS OR WHAT PERCENTAGE IS SPENT 15:44:35 ON RESPONSE TO A CATASTROPHE LIKE THIS? 15:44:38 AND IF YOU DON'T HAVE THAT EXACT NUMBER, COULD YOU GIVE IT TO ME 15:44:42 IN WRITING AND MAYBE COMMENT GENERALLY ON IF YOU THINK 15:44:46 HOMELAND SECURITY IS DOING WHAT IT NEEDS TO DO TO BE BETTER 15:44:49 PREPARED OR PREPARED FOR AN INCIDENT LIKE THIS? 15:44:53 WELL, WE'RE ALWAYS -- YOU KNOW, AS I SAID EARLIER, YOU 15:44:57 LEARN FROM EVERY INCIDENT. YOU BEGIN WITH THE PLANS AND YOU 15:45:00 EXERCISE THE PLANS. BUT THEN AS ANY INCIDENT 15:45:03 COORDINATOR OR COMMANDER WILL TELL YOU, YOU'VE GOT TO WORK THE 15:45:06 PROBLEM AT THAT POINT. YOU'VE GOT TO GO AT IT. 15:45:09 AND THAT'S WHAT WE HAVE BEEN DOING. 15:45:14 I WILL TELL YOU, WE ARE ACCUMULATING WITHIN THE 15:45:17 DEPARTMENT OF HOMELAND SECURITY THE COSTS THAT WE ARE EXPENDING. 15:45:21 AND OUR DEPARTMENT'S RESPONSE, THAT INCLUDES THE COAST GUARD. 15:45:26 IT WILL NOT BE AN INSIGNIFICANT SUM. 15:45:29 AND WE HAVE ASKED THROUGH THE NRT THAT THE OTHER FEDERAL 15:45:32 AGENCIES KEEP TRACK OF THE COSTS THAT THEY ARE EXPENDING. 15:45:35 IT WOULD BE -- SINCE WE ARE REALLY IN THE MIDDLE OF 15:45:39 RESPONSES, I INDICATED TO SENATOR McCAIN, I THINK IT WOULD 15:45:41 BE PREMATURE TO GIVE YOU AN ESTIMATE OF THAT. 15:45:46 AND I JUST WANT TO RESTATE AND I DON'T HAVE THE FULL COST 15:45:51 OF WHAT THE ESTIMATES WILL BE, AND I'M ASSUMING BP HAVE STEPPED 15:45:54 UP AS THEY HAVE SAID AND COVER ALL OF THESE COSTS FOR 15:45:57 INDIVIDUALS, FOR BUSINESSES, FOR THE GOVERNMENT AT EVERY LEVEL. 15:46:03 AND I KNOW THAT THEY HAVE BEEN FORTHCOMING WITH SOME OF THE 15:46:05 REQUESTS FROM OUR GOVERNORS, $25 MILLION IN AUTHORITY UP TO A 15:46:10 MILLION DOLLARS FOR SOME OF THE COUNTIES, WHICH HAS BEEN 15:46:12 IMPRESSIVE BUT WE MAY NEED MORE THAN THAT. 15:46:15 BUT IT'S THE RESEARCH AND DEVELOPMENT DOLLARS IN THESE 15:46:19 MAJOR AGENCIES THAT I'M WONDERING CONSIDERING THIS 15:46:22 INDUSTRY, JUST THE INDUSTRY FOR BONUSES AND SEVERANCE, HAVE 15:46:28 CONTRIBUTED $165 BILLION TO THE FEDERAL TREASURY SINCE 1955. 15:46:33 $165 BILLION. WHAT PERCENTAGE OF OUR BUDGETS 15:46:39 AND THEIR BUDGETS I'M GOING TO BE ASK THEM IS GOING TO RESEARCH 15:46:44 AND DEVELOPMENT ON SPECIFICALLY SAFETY, EQUIPMENT, NEW 15:46:46 TECHNOLOGY, AND CLEANUP. BECAUSE WE MAY NEED TO SUGGEST 15:46:52 MORE MONEY TO MAKE SURE THIS NEVER HAPPENS AGAIN. 15:46:55 SO WE'RE GOING TO TRY TO COLLECT THOSE -- THAT DATA, 15:46:57 MR. CHAIRMAN. AND MY TIME HAS EXPIRED. 15:47:02 SO THANK YOU. SENATOR PRYOR? 15:47:04 THANK YOU, MR. CHAIRMAN. I WANT TO THANK YOU AND SENATOR 15:47:07 COLLINS FOR LEADING THE EFFORT ON THIS. 15:47:10 AND LET ME, IF I MAY, MADAM SECRETARY, START WITH YOU. 15:47:15 AND THAT IS JUST, YOU KNOW, ABOUT THE STAFFORD ACT. 15:47:19 AND TYPICALLY A DISASTER HAPPENS AND GOVERNORS MAKE REQUESTS. 15:47:23 I'M ASSUMING THAT YOU'VE ALREADY DONE QUITE A BIT OF WORK WITH 15:47:26 THE GOVERNORS TO UNDERSTAND THE SCOPE AND THE NATURE OF THEIR 15:47:28 REQUEST. AND COULD YOU GIVE US JUST A 15:47:33 LITTLE OUTLINE ON WHAT YOU THINK THIS NEXT FEW WEEKS MIGHT LOOK 15:47:36 LIKE DOWN THERE? YES. 15:47:39 WELL, WE HAVE REPRESENTATIVES OF THE GOVERNORS IN ALL OF THE 15:47:46 VARIOUS COMMAND CENTERS DOWN THERE AS WELL AS -- WE HAVE A 15:47:48 DAILY CALL WITH THE GOVERNORS. WE ARE WORKING WITH THEM NOW ON 15:47:56 WHAT THE CLAIMS PROCESS SHOULD BE FOR STATES AND LOCALITIES. 15:47:59 WE'RE VERY COGNIZANT OF LONG-TERM ECONOMIC DAMAGES THAT 15:48:03 MIGHT PERTAIN SUCH AS TO SOME OF THE FISHERIES DOWN THERE THAT 15:48:07 HAVE BEEN CLOSED BY NOAA ALREADY. 15:48:10 AND SO WE'RE WORKING OUR WAY THROUGH THAT. 15:48:13 THIS IS -- AS YOU KNOW, SENATOR, THIS IS NOT A STAFFORD ACT 15:48:16 SITUATION. THIS COMES UNDER ANOTHER STATUTE 15:48:20 ALL TOGETHER. AND THE DIFFERENCE IS HUGE 15:48:24 BECAUSE UNDER THE STAFFORD ACT, THE TAXPAYERS OF THE UNITED 15:48:29 STATES PAY FOR THE RESPONSE. UNDER THIS ONE, THE RESPONSIBLE 15:48:33 PARTY IS GOING TO PAY. AND SO WE'RE IN THE PROCESS OF 15:48:37 MAKING SURE THERE'S A GOOD AND EASY PROCEDURE FOR THOSE CLAIMS 15:48:40 TO BE MADE. OKAY. 15:48:41 GOOD. AND LET ME ASK REAR ADMIRAL 15:48:51 NEFFENGER, IF I MAY, WITH YOU. I KNOW THAT, FOR EXAMPLE, OTHER 15:48:56 CIRCUMSTANCES, FEMA, FOR EXAMPLE, MIGHT BURN THROUGH 15:49:00 RESOURCES VERY RAPIDLY ON A MAJOR DISASTER. 15:49:03 IS THAT TRUE WITH YOUR AGENCY AND HOW YOU'RE DEALING WITH 15:49:05 THIS? WELL, AS A THE SECRETARY 15:49:11 MENTIONED, YOU KNOW, WE ARE SPENDING MONEY EVERY DAY TO 15:49:12 MANAGE THIS RESPONSE. BUT AS SHE ALSO MENTIONED, WHAT 15:49:16 THE OIL POLLUTION ACT OF 1990 PROVIDES IS AN ABILITY TO REACH 15:49:20 INTO THE OIL SPILL LIABILITY TRUST FUND. 15:49:26 THE EMERGENCY FUND OF THAT. THERE'S AN INITIAL $50 MILLION 15:49:29 AVAILABLE. WE CAN TAKE A ONE-TIME TRANSFER 15:49:33 OF ANOTHER $100 MILLION INTO THAT EMERGENCY FUND, WHICH WE 15:49:35 HAVE DONE. WE'VE ASKED FOR AND HAS BEEN 15:49:37 GRANTED. SO THAT PROVIDED $150 MILLION TO 15:49:42 THE FEDERAL GOVERNMENT FOR ITS RESPONSE ACTION. 15:49:46 AND THAT'S PRIMARILY PAYING FOR COAST GUARD ACTIVITIES AT THIS 15:49:47 POINT. AND I KNOW EITHER IN THIS 15:49:52 COMMITTEE OR IN OTHER COMMITTEES, WE'VE TALKED ABOUT 15:49:56 THE COAST GUARD BEFORE AND HOW YOU GUYS JUST DO GREAT WORK. 15:50:00 AND WE SAW IT DOWN ON THE GULF COAST AFTER KATRINA AND WE'VE 15:50:03 SEEN IT MANY, MANY TIMES. BUT ALSO WE RECOGNIZE THAT 15:50:07 REALLY IN MANY WAYS, YOU'RE UNDERRESOURCED. 15:50:11 AND YOU HAVE A BACKLOG OF OLDER SHIPS THAT YOU'RE TRYING TO 15:50:14 UPDATE OR REPLACE AND ALL THAT. HAS THE FACT THAT YOU'VE BEEN 15:50:20 HAMPERED FROM A BUDGETARY SENSE -- CAN YOU SEE THAT AND 15:50:24 HOW ARE YOU ABLE TO RESPOND TO THIS? 15:50:28 OUR BUDGET SITUATION IS NOT HAMPERED OUR RESPONSE INITIALLY 15:50:31 TO THIS. OBVIOUSLY, FOR ANY AGENCY, A 15:50:34 LONG-TERM SUSTAINED RESPONSE TO SOMETHING OF THIS MAGNITUDE 15:50:36 BECOMES A CHALLENGE. AND THAT WOULD BE THE CASE NO 15:50:38 MATTER HOW MANY PEOPLE YOU HAVE. I THINK AS THE SECRETARY SAID, 15:50:43 SUSTAINABILITY IS ONE OF THE CRITICAL CONCERNS THAT WE'RE 15:50:44 LOOKING AT RIGHT NOW. HOW DO YOU -- HOW DO YOU DO THIS 15:50:48 IF IT WERE TO GO ON FOR SOME EXTENDED PERIOD OF TIME. 15:50:52 WE HAVE QUITE A FEW FORCES SURGED TO THAT AREA RIGHT NOW. 15:50:54 AT SOME POINT WE HAVE TO LOOK AT WHAT THE IMPACT AND THE RISK 15:50:57 POSITION WE TAKE THROUGHOUT THE REST OF THE COUNTRY AS WE PULL 15:51:00 THOSE RESOURCES FROM OTHER PARTS OF THE COUNTRY. 15:51:05 AND I KNOW YOUR OFFICE AS WELL AS FEMA AND MANY OTHER 15:51:12 FEDERAL, LOCAL STATE AGENCIES TRY TO ANTICIPATE VARIOUS 15:51:16 DISASTERS AND, YOU KNOW, RUN THROUGH EXERCISES AND GAME THEM 15:51:19 OUT TO TRY TO UNDERSTAND WHAT ALL WOULD HAPPEN, WERE YOU ABLE 15:51:21 TO DO THIS? HAVE YOU BEEN DOING THIS IN 15:51:26 YEARS PAST WITH A MAJOR OIL EVENT LIKE THIS? 15:51:30 WELL, EVERY THREE YEARS SOMEWHERE IN THE COUNTRY WE DO 15:51:32 WHAT WE CALL A SPILL OF NATIONAL SIGNIFICANCE EXERCISE. 15:51:36 AND THAT'S A FULL SCALE DEPLOYMENT EXERCISE WHERE WE 15:51:40 SIMULATE A MASSIVE OIL DISCHARGE OF SOME SORT. 15:51:43 THE MOST RECENT ONE WAS ON THE NORTHEAST OFF THE COAST OF 15:51:47 PORTLAND, MAYBE McCAIN WHERE WE DID A SPILL OF SIGNIFICANT 15:51:51 SIMULATING A LARGE TANKER OIL SPILL. 15:51:55 THE ONE THAT SENATOR COLLINS WAS ONE THAT I PARTICIPATED IN 2004 15:51:58 OFF THE SOUTHERN COAST OF CALIFORNIA. 15:52:02 AGAIN SIMULATING A TANKSHIP RUPTURING AND SPILLING A LOT OF 15:52:06 OIL. WE DO EXERCISE FOR MASSIVE OIL 15:52:10 DISCHARGES PERIODICALLY THROUGHOUT THE COUNTRY. 15:52:12 AND IN EVERY CAPTAIN OF THE PORT ZONE AND FEDERAL ZONE, THERE'S A 15:52:18 CYCLE OF EXERCISES THAT ARE REQUIRED TO BE CONDUCTED ON AN 15:52:24 ANNUAL, BIANNUAL AND TRIANNUAL BASIS. 15:52:25 I WOULD SAY WE EXERCISE QUITE A BIT. 15:52:28 ALTHOUGH THOSE FULL SCALE EXERCISES ARE EVERY THREE YEARS 15:52:30 AND THEY'RE NOT NECESSARILY IN EVERY ZONE EVERY THREE YEARS. 15:52:34 BUT IT SOUNDS LIKE THOSE EXERCISES HAVE PAID OFF FOR YOU 15:52:37 IN HOW YOU'VE BEEN ABLE TO RESPOND TO THIS? 15:52:38 WELL, I THINK THEY HAVE. CLEARLY, THE RESPONSE THAT WE 15:52:44 WERE ABLE TO MOUNT TO THIS SPILL IS A SIGNIFICANT IMPROVEMENT 15:52:46 OVER WHAT YOU'VE MIGHT HAVE SEEN 20 YEARS AGO PRIOR TO THE EXXON 15:52:49 SPILL. BEFORE WE HAD THIS PROGRAM IN 15:52:51 PLACE. THERE'S A ROBUST EXERCISE 15:52:56 OVERSIGHT PROGRAM THAT WE HAVE CALLED THE PREP, 06:53:44 15:53:47 AND THANK YOU VERY MUCH FOR YOUR ANSWERS. 15:53:49 MR. CHAIRMAN, I'D LIKE TO NOTE IN OUR SUBCOMMITTEE, THE STATE, 15:53:52 LOCAL PRIVATE SECTOR PREPAREDNESS AND INTEGRATION 15:53:56 SUBCOMMITTEE, WE'RE ACTUALLY HAVING A HEARING ON MAY 25th 15:54:00 ABOUT THIS AND GO INTO MORE DETAIL ABOUT WHAT STATE, LOCAL 15:54:04 AND PRIVATE SECTOR HAVE BEEN DOING FOR THIS. 15:54:06 THANK YOU, SENATOR PRYOR, I APPRECIATE YOUR SUBCOMMITTEE IS 15:54:08 DOING THAT. I'D LIKE IF YOU WOULD STICK 15:54:14 AROUND AND WE'LL DO A SECOND ROUND. 15:54:16 AS I HEAR THE QUESTIONS BACK AND FORTH, IT SEEMS TO ME THAT 15:54:22 POST-EXXON VALDEZ, THE INVOLVEMENT AND THE OIL INDUSTRY 15:54:25 HAVE WORKED TOGETHER TO GET VERY GOOD AT DEALING WITH A MAJOR 15:54:28 SPILL AT THE SURFACE. BUT I STILL REMAIN TO BE 15:54:34 CONVINCED, ONE, THAT WE DID ENOUGH TO PREVENT THIS DEEP 15:54:37 WATER ACCIDENT IN THE WELL FROM OCCURRING. 15:54:38 AND, TWO, THAT WE'RE READY TO DEAL WITH THE UNBELIEVABLE 15:54:43 CONSEQUENCES OF IT UNDER WATER. IN THAT REGARD, I WANTED TO ASK 15:54:48 BOTH OF YOU THIS QUESTION -- WE'VE BEEN READING IN THE MEDIA 15:54:53 IN THE LAST FEW DAYS THAT THERE ARE SCIENTISTS WHO BELIEVE -- 15:54:59 WHO HAVE ESSENTIALLY DISCOVERED AND ARE REPORTING GIANT DEEP SEA 15:55:03 PLUMES OF OIL IN THE GULF AS A RESULT OF THIS ACCIDENT. 15:55:06 ONE OF WHICH MEASURED 10 MILES LONG, 3 MILES WIDE, AND 300 FEET 15:55:11 THICK IN SPOTS. WHAT ARE WE CAPABLE OF DOING TO 15:55:21 TRY TO BREAK THAT UP? AND IF WE DON'T, WHAT'S GOING TO 15:55:26 HAPPEN TO IT? IN OTHER WORDS, THE CONSEQUENCES 15:55:30 HERE FOR THE ENVIRONMENT, OBVIOUSLY, THE GULF'S 15:55:33 ENVIRONMENT ARE POTENTIALLY VERY SEVERE. 15:55:34 INDEED, MR. CHAIRMAN. I THINK FIRST OF ALL WE HAVE TO 15:55:43 BE CAREFUL RIGHT NOW ABOUT WHAT IS BEING ASSUMED ABOUT THE 15:55:46 UNDERSEA PLUME AND NOT. YEAH. 15:55:48 I THINK THE HEAD OF NOAA THIS AFTERNOON PUT OUT A STATEMENT 15:55:53 SAYING THAT SOME OF THOSE EARLY REPORTS THAT HAD BEEN MADE WERE 15:55:58 NOT BASED ON OBSERVATION. AND HAD NOT BEEN VERIFIED AND 15:56:01 CONFIRMED. CERTAINLY BY SOME OF THE OTHER 15:56:05 WORK THAT WAS BEING -- WELL, THAT'S IMPORTANT FOR US 15:56:06 TO HEAR. OBVIOUSLY, WE NEED TO 15:56:11 CONTINUE TO WATCH THE UNDERSEA PLUME TO THE EXTENT ONE DEVELOPS 15:56:19 VERSUS, YOU KNOW, IN ADDITION TO THE TOP OF THE SEA SPILL. 15:56:26 SO THAT PROCESS IS BEING LOOKED AT WITH A CONSORTIUM REALLY OF 15:56:31 GOVERNMENT SCIENTISTS WHO CONTINUE TO LOOK AT WHAT'S GOING 15:56:33 ON UNDERNEATH THE SURFACE OF THE OCEAN? 15:56:34 WHAT'S HAPPENING THERE? AND AGAIN, I THINK NOAA DIRECTOR 15:56:40 REALLY RESPONDED VERY STRONGLY TO SOME OF THESE EARLY 15:56:46 STATEMENTS THAT HAD NOT BEEN VERIFIED AND SEEM INACCURATE. 15:56:51 NOW SECONDLY, THE EPA HAS APPROVED THE UNDERSEA USE OF 15:56:54 DISBURSEMENTS. -- DISPERSEMENTS. 15:57:02 IT'S VERY NOVEL AND IT'S DONE IN A CONTROLLED WAY. 15:57:03 EVERY TIME WE DO SOMETHING LIKE THAT, YOU HAVE -- YOU KNOW, YOU 15:57:09 HAVE TO EXPLORE KIND OF THE ENVIRONMENTAL TRADEOFFS THAT ARE 15:57:10 BEING MADE. BUT EPA HAS A VERY RIGOROUS 15:57:17 PROTOCOL HOW THAT WILL BE DONE AND THE CONTINUOUS MONITORING 15:57:20 THAT WILL BE HAPPENING. AND SO THOSE UNDERSEA 15:57:27 DISPERSANTS ARE BEING INJECTED IN THE LAST FEW DAYS. 15:57:32 IT SEEMS WE'RE EXPERIMENTING BECAUSE THIS IS SOMETHING 15:57:36 UNPRECEDENTED AND UNANTICIPATED BY THE REGULATORY PROCESS. 15:57:41 ANY, THE ONE THAT THE MINERALS MANAGEMENT SERVICE IMPOSED ON 15:57:43 THE COMPANIES PRIOR TO GRANTING PERMISSION ON THIS WELL. 15:57:48 ADMIRAL, LET ME ASK YOU INSOFAR AS THE COAST GUARD OBVIOUSLY HAS 15:57:54 SUPERVISION OVER MARINE OIL SPILLS, ISN'T THERE A DANGER 15:57:59 THAT THESE ENORMOUS PLUMES WILL BE TAKEN BY THE CURRENT AND 15:58:03 MOVED FAR AWAY FROM THE ACTUAL SOURCE OF THE SPILL NOW? 15:58:08 AND THAT COULD HAVE VERY, VERY WIDE-RANGING AND BAD 15:58:10 ENVIRONMENTAL EFFECTS? I THINK -- MR. CHAIRMAN, I 15:58:15 THINK YOU'RE REFERRING TO THE LOOP CURRENT THAT'S BEEN TALKED 15:58:17 ABOUT. YES, YES. 15:58:18 I KNOW THAT WE'VE BEEN WATCHING THAT VERY CAREFULLY. 15:58:21 WE'RE USING -- NOAA IS HELPING US TO MODEL THE LOCATION. 15:58:24 CURRENTLY IT SHOWS TO BE SOMEWHERE IN THE NEIGHBORHOOD OF 15:58:27 40 TO 50 MILES FROM THE SOUTHERN EDGE OF THE SPILL. 15:58:29 SO WE ARE WATCHING THAT CAREFULLY. 15:58:34 AND AS A RESULT OF THAT, WE'RE PREPARING FOR THE SOUTHERN 15:58:38 FLORIDA COAST. I WILL SAY THE OTHER THING, THE 15:58:45 MATERIAL THAT WILL BE PICKED UP IN THE LOOP CURRENT IS HEAVILY 15:58:48 WEATHERED OIL. TAR BALLS FORMING ON THE 15:58:51 BEACHES. THEY COME ASHORE IN WAYS IN 15:58:57 WHICH IT'S RELATIVELY EASY TO CLEAN UP. 15:58:58 IT'S NOT A GOOD THING. IT WILL BE A MORE MANAGEABLE 15:59:01 PIECE THAT WE'LL DEAL WITH THERE THAN WHAT WE'RE CURRENTLY 15:59:05 LOOKING OUT IN THE GULF, SIR. WE'LL GO TO THE FINAL WORD TO 15:59:07 THE SECRETARY. HAVE YOU ENCOUNTERED UNDERWATER 15:59:15 SEA PLUMES OF OIL OF THE DIMENSIONS BEING DISCUSSED IN 15:59:19 YOUR EXPERIENCE WITH THE COAST GUARD? 15:59:20 NO, SIR. THIS IS THE FIRST TIME I'VE SEEN 15:59:23 A LEAK OF THIS DEPTH THAT POSES THESE KINDS OF COMPLEXITIES. 15:59:25 SECRETARY? I WAS JUST GOING TO MENTION 15:59:28 THAT. IN RESPECT TO THE LOOP CURRENT, 15:59:34 THE NUMBERS ARE AS THE REAR ADMIRAL SAID IN TERMS OF 15:59:36 DISTANCE, WE'RE MONITORING IT VERY CLOSELY. 15:59:38 BUT WE'RE ACTUALLY TREATING IT AS IF IT WERE ITS OWN COASTLINE. 15:59:44 IN OTHER WORDS, THAT IF WE WERE TO SEE THAT THE OIL REALLY WAS 15:59:46 BEGINNING TO MOVE TOWARD THE LOOP CURRENT, WE WOULD BEGIN 15:59:52 DOING SOME THINGS BY WAY OF DISPERSANT AND BOOMING AS IF THE 15:59:56 LOOP CURRENT ITSELF WERE A PIECE OF THE COAST. 15:59:57 THANK YOU. MY TIME IS UP. 15:59:59 SENATOR COLLINS? THANK YOU. 16:01:51 COLLINS questions *relief well? A sure thing?* 16:03:18 NAP a question you want to address to BP 16:03:33 NEFF in talking to those who are. 16:03:45 NEFF the topkill - the tech they're using to shut the well is tested method 16:07:10 LANDRIEU questions 16:07:15 *trust fund* 16:08:25 NAP there is a claims process, there are rollover numbers PANEL #2 Lamar McKay Chairman and President BP America, Inc. 16:12:30 McKAY statement 16:15:10 why did blowout preventer fail?
Gulf Oil Spill Hearing 1300-1400
gulf oil spill The Oversight and Investigations Subcommittee of House Energy and Commerce holds a hearing with Lamar Mckay, President and Chair of BP America Inc., Steve Newman, President and CEO, Transocean ltd., Timothy Probert, of Halliburton and others THIS PART NOT ON DISC SCALISE: We, of course, all in south Louisiana are fighting every day to not only do what we can to urge and push B.P. and all the parties involved to stop this oil from leaking into the Gulf of Mexico, but also to prevent it from coming into our marshlands and our seafood beds that's such a vital part of Louisiana's culture. And clearly, as we look at -- at all of the things that are involved in the working coast, that -- that the Gulf of Mexico and south Louisiana is, it's not just an area where 80 percent of all the continental drilling and exploration is done for the United States, but it's also an area where many people make their livelihoods in the seafood industry, and -- and that's all at risk right now. And it's another reason that it really underscores why those of us in south Louisiana have been pushing to get our fair share of royalties. We don't get that same share of royalties for the drilling that's done off of our coast as every other state gets, and this is a glaring example of why it's so critical that we do get to finally participate in the revenue sharing and -- and not wait until 2017, but do that immediately, because this has a dramatic impact on our livelihood. I have a number of questions for the panel that I'm going to get into. I also have a number of questions for MMS, which I wish we had the opportunity to ask, as well. We had a closed hearing where they were asked some questions, but unfortunately, they've never participated in a public hearing. I've asked them for a number of documents that they've yet to get me on exemptions that have been granted on various processes related to the Horizon, as well as other exemptions that they've given in the past. But let me ask you, Mr. McKay, START OF DISC 13:07:05 can you tell me how many exemptions were requested for all the activities related to this well and how many were granted by MMS? MCKAY: I'm not sure I know what you mean by... SCALISE: Exemptions to various processes. It's my understanding that you were given exemptions on environmental impacts... (CROSSTALK) MCKAY: Can I explain that real quick? The categorical exclusion that's talked about is because environmental impact statements have already been done. They're done with the lease sale by the government. Then... SCALISE: So did you not get an exemption on that? MCKAY: You file for a categorical exclusion because those environmental assessments have been done, yes, and we did them. SCALISE: So you did file for that and you were granted that by MMS? MCKAY: Yes. SCALISE: OK. Were there any other exclusions or exemptions that you filed for -- through MMS for this particular well? MCKAY: Not that I know of, but I may not know of everything. SCALISE: And as you find out any of them, please get those to me. I've asked that same information from MMS. I've yet to receive it. MCKAY: OK. SCALISE: So hopefully they'll be forthcoming in that, as well. Mr. Moore, the BOP that's so in question here, there have been a number of studies done. I've got a study that goes back to 1999 that was performed for MMS. There's another study in 2004 that was done for MMS that described various problems with blowout preventers, not just in the Outer Continental Shelf, but also looking at other places around the world where they're used in deep water. Are you familiar, first of all, with these studies? MOORE: Our teams are familiar with those studies, yes. SCALISE: Have you all made any changes in the design of the blowout preventer over the years as these deficiencies have been identified? MOORE: Well, most of those reports cover the results of testing in the field, which is very regimented, and its component failures that would result from -- it could be maintenance. It could be just the life of -- you've got a blowout preventer that has over 100,000 moving parts. They -- they do from time to time have to be serviced and replaced. And so that's what those testing of components... (CROSSTALK) SCALISE: Serviced and replaced, but in terms of design change -- and let me read you one section. This is the 1999 study on page 13. It said it was decided not to pull the BOP to repair the failure after MMS had granted a waiver. The failures in question were typically failures in components that were backed up by another component in the BOP stack. So what it seems to indicate is, because they're multiple redundant systems, if they found a problem in a bop, they would just say, well, there's other redundancies, so don't worry about that problem, because something else will catch it. That doesn't seem to me to be a good process to handle a problem with a BOP, if you've got five redundant systems and one of them fails, to say, well, we've got four others. It'd seem to me you'd go and fix that problem. MOORE: Well, I think those problems are repaired when the -- when the stacks are put back to surface, if it's a deepwater stack. SCALISE: OK, it didn't seem to be the case in this one, but I move on to my next question. Whether it's Mr. Newman or McKay, how many times were operations shut down on the B.P. Horizon, the -- their drilling that was done on the Horizon in relation to this well? Do you know how many times operations were shut down because of various problems? Start with Mr. Newman and then ask Mr. McKay. NEWMAN: During the life of the Mississippi Canyon 252 well... SCALISE: That's correct. NEWMAN: ... I don't -- I don't have a record of how many times operations were suspended. SCALISE: OK. Mr. McKay? MCKAY: I'm sorry. I don't know. SCALISE: OK, well, let me ask you about a few specific problems. There was a story in the Times-Picayune, the New Orleans newspapers, yesterday that does into detail. They actually started interviewing some of the people that were working on the well, talked about problems that go back to weeks prior to the explosion. They said a constant theme was that gas kicks were more frequent in this oil field than others and the crew worked on and members were concerned. Quote, "One gas kick that occurred as they got towards the bottom of the hole, approximately 10,000 feet below the floor, had such a large kick that they had to shut down operations. They were concerned about spark sources on the rig at the surface so they had to shut it down, because there were so much -- there was so much gas coming out of the rig and they were afraid of the explosion." Now, are you familiar -- that was according to this report a few weeks prior... STUPAK: Mr. Scalise, this will have to be your last question. SCALISE: OK. Do -- do you know about that, that shutdown? And can you get me a list of all of the times that this rig was shut down due to various problems prior to the explosion? And thank you, Mr. Chairman. STUPAK: We look forward to that information at later time. You may want to put that in writing, because we'll have 10 days after this hearing to submit further questions in writing. A member of the subcommittee, Mr. Green, for questions, five minutes please? 13:11:55 GREEN: Thank you, Mr. Chairman. Mr. Newman, it's recently been reported that some of the Transocean workers that were rescued from the drilling platform were told to sign statements denying they were hurt or witnessed the blast before they were allowed to contact their families and leave and literally were just rescued. Additionally, Mr. McKay's testimony, he mentioned how B.P. is speaking to those witnesses they have, quote, "access to." Can you comment on the statements that these employees were forced to take? And is there a copy we could see? NEWMAN: We absolutely will provide the copy of the statements. And I can categorically deny that they were forced to sign. GREEN: OK. Well, we're just going by pressure ports. That's why you all are here today. And believe me, we know sometimes it's not always accurate. Will Transocean make all these workers that were on the rig at the time of the explosion fully available to investigators? NEWMAN: Congressman, we -- we -- we want to understand what happened just as badly as Congress does, and we will make anything available that will help in understanding what happened. GREEN: OK, I appreciate that. Mr. Newman, Halliburton maintains that their seamen and personnel were instructed to record the drill pipe pressure test, but that the drilling operator told them that the negative pressure test had been already -- had already been completed and they would put on standby. The drilling contractor then proceeded to displace the riser with seawater. Is it common for the drilling contractor to perform the duties of the subcontractor? And why did it happen in this case? NEWMAN: I don't believe that the drilling contractor -- in this case, Transocean -- performed the duties of any other subcontractor. GREEN: OK. Mr. McKay, in your testimony, you acknowledge that B.P. is one of the leaseholders and the operator of the exploration well has acknowledged it's responsible in the clean-up and will pay all legitimate claims. And I know just from experience, nobody has -- nobody can afford to drill those wells without partners. And it's been reported in the press other minority leaseholders as Anadarko and Mitsui Oil Exploration. Is that correct? MCKAY: That is correct. GREEN: OK. Mr. Probert, you said that, contrary to earlier reports, the final cement plug in the well was not set, and the plug would have been the final barrier before the well -- before the well would have been temporarily suspended. Is this correct? PROBERT: That is correct. It would have been necessary to set that plug before the blowout preventer could have been removed and the well secured. GREEN: OK. And you said that the Deepwater Horizon rig met or exceeded the number of safety devices required by the federal government, including an independent method of making the blowout preventer function, correct? Is that correct? Or the method of making the blowout preventer function? PROBERT: I think that may be best directed at Mr. Newman. GREEN: OK. Mr. Newman? NEWMAN: The blowout preventer and the BOP control system on the Deepwater Horizon were fitted with a number of methods of activating the BOP. GREEN: OK. NEWMAN: Manual activation from the rig. And where the regulations require two independent stations, the -- the Horizon was actually fitted with three independent stations. NEWMAN: The -- in addition to manual activation, the blowout preventer control system on the Horizon was fitted with two automatic response systems, one of which the industry refers to as a dead man, and the other one is -- is referred to as an auto share. Those are two systems, under certain conditions, the BOP will automatically respond. And the BOP was also fitted with ROV intervention, remote- operated vehicle intervention. GREEN: OK. And I understand there's lots of redundancies -- also, the benefit of East Harris County, I have lots of unofficial consultants who are chemical engineers -- and there's lots of redundancies built in. And -- and you confirmed that the blowout preventer device, that it was supposed to shut off the oil flow in the ocean floor, but it did fail. NEWMAN: It has not been effective in shutting off the flow. GREEN: OK. Thank you. And then you go on in your testimony to say that there's no reason to believe that the blowout preventer wouldn't work and it might have been clogged by debris shooting up from the well. Is that correct? NEWMAN: I believe that's a possibility that needs to be investigated. GREEN: Now, I understand your argument that the well has been sealed with casing and cement. And within a few days, the blowout protection would have been removed. And according to you at that point, the well barriers, the cement and casing, were responsible for controlling any pressure from the reservoir, so the BOP's failure could not be held responsible. Is that a statement you made? NEWMAN: The ineffectiveness of the BOP to control the flow is not the root cause of the event. GREEN: OK. So the cement plug would have to be set before -- before the blowout prevention could be removed? NEWMAN: Setting a cement plug is -- is a normal process of abandoning the well. GREEN: OK. And I know it's too soon, because the blowout -- to know exactly what happened with the blowout prevention, but there are lots of redundancies. And, again, this is not the first well we've drilled in deep water Gulf of Mexico. And some folks I know in the industry maintain that, even with the debris, the blowout protection should have still worked. After all, it's a secondary means of controlling pressure, if the drilling mud is inadequate. Is that generally correct, it should have worked, the blowout preventer? NEWMAN: Provided that the BOP was asked to function within its design specifications, there's no reason to believe that it would not have worked within its design specifications. GREEN: OK. Mr. Cameron (sic), would you like to comment? MOORE: I would agree with his comments. GREEN: OK. Thank you, Mr. Chairman, for your time. 13:17:56 STUPAK: Thank you, Mr. Green. Mr. Newman and Mr. McKay, Mr. Scalise had asked a question the minority would like to see if you guys can answer it. He asked -- his last question was, six weeks ago, according to the Times-Picayune newspaper, that six weeks ago there was a gas kick and the operations were shut down. Do you have any information on that shutdown when you had the gas kick about six weeks ago? Is that a fair assessment of your question? Mr. McKay, do you have any information on that? MCKAY: I'm not aware of that, but we will get the data to the committee. STUPAK: OK. Mr. Newman? NEWMAN: I'm not familiar with the specific circumstances of that particular incident. STUPAK: OK. OK. Then I would next turn to Mr. Stearns for questions, a member of the full committee. Five minutes, please. 13:18:35 STEARNS: Mr. Chairman, thank you very much for allowing me to participate even though I'm not on the subcommittee. Mr. McKay, I'm just going to ask you a basic question. I was down there, and we saw that the Sombrero (ph) did not work, and we saw the start to slant drilling (ph). Here's a basic question. When will you cap that well? What's your best guess? MCKAY: We have multiple efforts underway that... STEARNS: No, no. I mean, if you had... MCKAY: I can't give you a deterministic -- we have multiple efforts that we're working simultaneously. STEARNS: Well, are you going to cap it in 90 days, yes or no? MCKAY: I believe we'll get the -- I believe the relief well will be down in roughly 90 days. STEARNS: Do you think you'll cap it in 90 days with the slant drilling? MCKAY: With that, with the relief wells, or sooner with other methods. STEARNS: What other methods? Because... MCKAY: We're still working on the blowout preventer itself and trying to do a top kill, which could be successful, but we are also trying to get a containment system subsea to... STEARNS: OK, so your best guess is within 90 days that you will close this rig of the evacuation of all the gasoline. That's your best guess? MCKAY: I believe we -- that or better. STEARNS: Now, you're in a room all alone, just you and the governor of Florida, and he asked you this question. He said, when is your best estimate when it will hit the Florida coast? What would you say? MCKAY: I don't have any estimates of it hitting the Florida coast. I don't know. STEARNS: Do you think it will ever hit the Florida coast in these 90 days that you predict that there will be closing this -- the oil? MCKAY: I don't have a way of predicting that. All I can say is that we're trying to get a containment system in such that that oil is collected before... STEARNS: Well, let's take a worst-case scenario. If -- as I understand, the wind doesn't have an impact. It's basically the current. Is there a worst-case scenario where it could hit the Florida coast? MCKAY: That is a possibility. That's why we're organizing to be able to... (CROSSTALK) STEARNS: Let's say it's a possibility. If you had to be a betting man, would you say it would hit the West Coast -- hit the Florida coast in 90 days? MCKAY: I'm not speculating on that. STEARNS: OK. MCKAY: We are doing everything we can to make sure it doesn't. STEARNS: A constituent sent me a little video. It showed a large basin of water, and they poured oil into it. They took blue hay and other types of hay and they dropped it into it. And in about a minute-and-a-half, it absorbed all of the oil in the basin of water. What's the possibility -- can you drop hay in the area? They take the hay out, and then it becomes fuel. Why couldn't you have just dropped something to absorbed all that oil instantly to give you more time to make decisions? Have you ever thought of that? MCKAY: Yes. Some of that absorbent-type material will be used in the near shore and the beach areas, if -- if... (CROSSTALK) STEARNS: But you could have dropped it right on the site, then take barges out, pick it all up. It absorbs all the oil off the top. And then you could have made the oil into things that you could actually burn. Has that ever occurred to you folks? MCKAY: Well, we're under Unified Area Command with the Coast Guard, and I don't believe that is as scaleable as it needs to be for the -- for the farthest offshore. STEARNS: If it was a good idea, do you need the federal government to approve it or can you do it on your own? MCKAY: Well, we work -- we work together with the federal government under the Unified Area Command. And every decision is... STEARNS: OK. MCKAY: ... authorized by the Unified Area Command. STEARNS: In tab 11 of page 7-1, in its application to explore to the site, B.P. -- do you want to get that tab, or you just want me to read it to you? MCKAY: In this book? STEARNS: Yes. MCKAY: OK. STEARNS: It reports it has the capability to respond to spills of 300,000 barrels per day, OK? This is you folks telling us that you have the capability to respond adequately to spills of 300,000 barrels per day. It's on page 7-1, section 7.0. This is your oil spill information graph, worst-case scenario. This is you talking, worst-case scenario. And you say, volumes uncontrolled blowout per day, 300,000 barrels per day. Is that correct, the information in here? Do you still stand by that? MCKAY: I see that, yes. STEARNS: OK. What is the current spill per day right today? MCKAY: The current estimate's 5,000 barrels a day. STEARNS: OK. So, basically, that's 60 times less than you say the worst-case scenario that you can adequately respond to. Is that correct? MCKAY: That's the math, yes. STEARNS: So why are you having so much trouble responding to this when even by your own literature you're saying you could handle up to 300,000 barrels a day? You have something that's 60 times less, and yet your -- this thing is starting to hit the Chandeleur coast in Louisiana, and the possibility it might even move -- it's hitting Alabama and possibly going to Florida. So why -- why can't you -- why didn't you have an adequate response even when your worst-case scenario says you can handle up to 300,000 barrels per day? MCKAY: Well, this -- this particular incident is very difficult because we've got a... (CROSSTALK) STEARNS: This says worst-case scenario. This is your words. MCKAY: The mechanical configuration of this is very difficult, and the relief efforts that we're doing include three drilling rigs that are working simultaneously to try to contain and stop this. STEARNS: So are you saying today's situation is more than a worst-case scenario that you outlined in your report to us? MCKAY: No, I'm not saying that. STEARNS: Well, you see why I'm -- I'm puzzled why you folks are sitting here saying you don't have a control when your worst-case scenario said you could handle 300,000 barrels a day? BARTON: Would the gentleman yield for clarification? STEARNS: Yes. 13:24:16 BARTON: Is the reason you think you can handle a 300,000-barrel- a-day worst-case is because the assumption is the blowout prevention actually works? MCKAY: It's part of the assumption in dealing with this. STEARNS: OK, thank you. Well, I appreciate the chairman. The only thing I would conclude is that I assume, in the worst-case scenario, that that would take -- be part of the worst-case scenario, so that's the only concern I have. Thank you, Mr. Chairman. (UNKNOWN): The chair recognizes the gentleman from Vermont for five minutes. 13:24:45 WELCH: Thank you, Mr. Chairman. What -- as we all know, we were told that what could never happen did happen. We were told that, if the unimaginable happened, we had a failsafe mechanism that would make certain there would be no harm. And of course, the tragedy is that these assurances prove wrong. Pardon me. And we're learning -- one of the reasons that they're wrong, drillers have been relying on the -- on the device known as a blowout preventer, and in theory it's designed to shear off the pipe and completely close the well, as you all well know, in the event of a catastrophe like a Deepwater Horizon. Mr. McKay, I want to quote from your testimony. You say, and I quote, "The blowout preventer was to be failsafe in case of an accident." Is that correct, you were counting on that blowout preventer as the last line of defense? MCKAY: That is considered the last line of defense, yes. WELCH: OK. I want to ask you about that and the basis for that reliance. As you know, we received a document that was part of our investigation called "The Blowout Preventer Assurance Analysis." This was something that you had, B.P. had. It was commissioned in March of 2001. The risk assessment of the blowout preventer of the Horizon rig identifies 260 different failure modes. And this, it says, specifically includes over 20 that pose high or very high risk on the blowout preventer. It describes a potential failure of the blowout preventer to unlatch from the riser, the failure of rams to close, the failure to shear pipe as examples of the many possible, quote, "high- consequence failures" of the blowout preventer. And these are exactly the type of problems that led to the uncontrolled leak on the Deepwater Horizon. So the question I have is, if B.P. had a report that it commissioned for review of the safety mechanism of the blowout preventer, and it contains 260 failure modes, under what construction of the English language is a device with 260 failure modes failsafe? MCKAY: I'm sorry. I'm not familiar with that report. And is that a B.P.-requested report? WELCH: It's an R&B Falcon Deepwater Horizon BOP assurance report that's dated March of 2001. And it literally lays out... (CROSSTALK) MCKAY: That may be a Transocean report. WELCH: Well, we'll get to that you, because what it does specifically outline are anticipated problems with the blowout preventer. We also learned about other critical problems with the blowout preventers. One problem was they -- is we understand that they can't cut joints in the drill pipe. And as I understand it, those are referred to as tool joints. Mr. Moore, you made this blowout preventer. And let me ask: Is it correct that it was not designed to cut joints in the drill pipe? MOORE: No, it is not. WELCH: So this is not a minor risk, because we've been told that the pipe joints can take up to about 10 percent of the pipe's length. Does that sound about right to you? MOORE: That's correct. WELCH: So, basically, we've got a blowout preventer that won't work on 10 percent of the -- of the mechanism it's supposed to operate on. You know, there were multiple failures that led to the disaster in the gulf, and one of the most critical, obviously, was that the blowout preventer on the Deepwater Horizon just didn't work. And B.P. and Transocean were relying on the device as if it was the ultimate failsafe, even though there was a report in March of 2001 outlining 260 separate failure modes. And, obviously, we're all now left -- and, most importantly, the folks who live in the gulf region -- to deal forever with the consequences of this catastrophe. Mr. Chairman, I yield back. (UNKNOWN): The chair now recognizes the gentleman from Louisiana, Mr. Melancon, for five minutes. 13:29:08 MELANCON: Thank you, Mr. Chairman. I appreciate the opportunity to ask some questions. First, let me start by saying my condolences to the families of the 11 victims. We're all regretful of such an incident. On a lighter side, Mr. Moore, I understand your son, Daniel's, engaged, and I understand his friends are even accepting and saying he's got a good catch, so being a father-in-law, a good catch is a great phenomenon, even though during these troubled times. I've been a pro-oil-and-gas person here. And -- and I want to thank my colleagues on both sides of the aisle that have refrained from saying "I told you so," because I have been a defender of offshore drilling. MORE .ETX Reut14:46 05-12-10 XXX of offshore drilling. MELANCON: I think the record for the shallow water offshore drilling speaks for itself. I think it's very good, it's very reliable. I think this accident demonstrates that maybe our government in the form of Minerals Management in -- in working with the industry that we have to figure out what do we need to do to do this better because I can't in all good -- with a good heart encourage the continuation of deep water until I know that all safety precautions are there, that all backup systems are there, that all systems will work under the conditions, whether it's depth, temperature or whatever. So moving forward, I -- you know, I guess one of the questions I've got is when you went to apply for the deep water Horizon and you received a categorical exclusion from the NEEP (ph) in 2009, what's the process by which you secured this exclusion? In retrospect, should we have looked at it even more? I mean, was this an exclusion that as companies you knew you always had that option, even though the law said -- didn't say exclusions were viable or acceptable? Was it a commonplace thing? I think that would be more for Mr. McKay and Mr. Newman. MCKAY: It's a categorical exclusion that relies on the environmental impact statements that the MMS and the government has done for the lease sale itself. And then smaller areas within that lease sale an environment assessment is done specifically for those areas by the government. And the industry generally uses those environmental assessments in their -- in their permit and files an environmental statement with those. So it's used -- it's common, yes. MELANCON: Is -- is that where the -- as I understand it -- the comment came that we're 50 miles off, we'll have no impact? Because, as you know, my concern is the estuaries and the marshlands of South Louisiana that I grew up hunting and fishing in. And while my heart is heavy, I know those folks that make their living and actually live in those marshes -- the frustration, the helplessness that they're feeling. So, I mean, is -- should that have been, in good conscience, something that you're -- is that a negotiated thing between the companies and -- and MMS? MCKAY: No, it's not negotiated. I think -- I think through all of this we're going to learn a lot and need to look at the -- at the qualifications and the -- and the -- the -- the regulations and the permits that are required to -- to do work. I'll acknowledge that. This is not something that's unusual. It's utilizing environmental assessments that have been done. And it's in a conventional sense. Conventional sense may not be right going forward. MELANCON: Yes, I -- and as I said, I guess at the depth -- and we've got a whole new animal that we're dealing with. And we need to know what it is and -- and better. Mr. Chairman, I guess my question to the chair would be is -- is there some method -- my concern right now, especially after what happened in Colorado, I think, a year or so ago brought to light with MMS, some ability for the committee to get an independent auditor, investigator, inspector general or something to look into how we do this and to make some recommendations so that this never happens again to anyone in this country, much less this world? We're the United States, and I would have thought if this was going to happen, it would have been in maybe a South African continent or some third world country that just looked the other way or said, you know, if there's still such a thing -- and I'm sure there is -- is kickbacks, that that would have happened there and not here in the United States. And, of course, having come through Katrina, Rita, Gustav, Ike and now Horizon, it's just -- I guess the -- the anxiety is building on South Louisiana as though there's a bull's eye on us. And -- and I'm running out of time. I have one other quick question. But thank you, Mr. Chairman. I turn back my time. STUPAK: Thank you, Mr. Melancon. This is only the first of many hearings we'll probably have on this issue. And all avenues will be explored. MELANCON: Thank you. STUPAK: Ms. Blackburn, five minutes for questions, please -- member of the subcommittee? 13:34:34 BLACKBURN: Yes, thank you, Mr. Chairman. I appreciate that. And, Mr. McKay, I wanted to talk with you on -- on a couple of things. One, people that have come down from the federal government -- did -- do they have an understanding of offshore drilling? Do they have any real world experience in that that has proven helpful? Or have you had to kind of give a -- give them a tutorial or -- or an understanding of that process? MCKAY: Well, I think it's in different categories for different -- different folks. A lot of people are learning a lot about the oil business and -- and the technology and issues that -- that are being dealt with. Coast Guard -- obviously, we drill with the Coast Guard. They've been involved in lots of things in the Gulf Coast around the oil business for many, many years. So they're very familiar with what they're doing. Other government agencies -- MSS, very familiar with what we're doing, obviously. Other government agencies are learning, to be honest, learning and -- and -- and understanding and -- and trying to help. BLACKBURN: I also want to ask you if -- very quickly because we have limited time. And if you want to do some of this in submitting it, write and submit it, that's fine. Your protocol for capping a well -- if you can just step through that. And was that protocol explicitly followed in this case? MCKAY: I think we'll need to get back to you as part of the investigation. What was the procedure? How valid was it? Did it work? Would it have worked, the design, et. cetera? Then was it followed correctly? And then what decisions were made critically between once the signals were that we may be in a well-control event? BLACKBURN: OK. And then on the controlled burns, I know you started some of the controlled burns. And there were some days the weather wasn't good. How much did you -- how many days did you use the controlled burns? If you eliminated those, why did you make that decision? MCKAY: It's -- it's weather-dependent. And it's been used when -- when the weather permits. And -- and we think it's a very valid tool, and we're trying to use it when we can. But we've not had the weather available to use it as much as we'd like. BLACKBURN: OK. And let's see. Mr. Moore, the BOP system that you discussed -- what is the best secondary BOP system? You know, you talked a little bit about what you all had developed. Then what is the best secondary system? How often is it used? Is there anything else for a well that has a history of producing a lot of gas? Like, it's my understanding that this one did. Then what is the -- you know, what is the best secondary or alternative plan for that? MOORE: Other than using a BOP? BLACKBURN: Yes. MOORE: I know of -- I know of no other one. There's several -- several ways to control a well, obviously, when it's being drilled through the -- you know, through various processes. BLACKBURN: OK. MOORE: Mud is obviously the biggest one. BLACKBURN: OK. So what you're saying is what was being used is considered the best and the only way to address this? MOORE: Well, I think there's numbers of ways to control the flow of a well when you're -- when you're drilling it. As I said, mud systems are -- are the most -- I think -- most common. BOPs are -- are put in a situation where they must close on a flowing well when -- when certain controls are lost. And provided they're maintained, provided that they're activated and provided there's nothing put in the flow path that it can't -- that it can't close on, they're pretty reliable, very reliable. BLACKBURN: OK. And, Mr. Newman, I have one question for you. When the explosion first occurred, were your SWAT teams notified? And how quickly were they on the scene? NEWMAN: If I could just clarify for the congresswoman what a SWAT team is. This is a team that we use when the BOP is on surface, on the rig, in between wells. And they are there to provide additional support to the normal complement of rig crew for conducting the thorough program of between wells maintenance that is performed on the BOP. So in this particular situation where the BOP is -- remains on bottom, the SWAT team, in terms of providing actual on-site expertise, what they have done is mobilized to the offshore operations. So they are providing support and guidance to the remote operated vehicle operators as they continue to attempt to manipulate and intervene on the BOP. We have members of that same expertise or function providing support to B.P. in their West Lake facility in Houston and similarly in our own continuing crisis response team in our offices in Houston. BLACKBURN: So as soon as word came to you that there was a need, you all were in action? NEWMAN: Absolutely. BLACKBURN: Thank you, sir. I yield back. STUPAK: Thank you. Mr. Dingell for questions, please -- member of the subcommittee? 13:39:56 DINGELL: Mr. Chairman, I thank you. Mr. McKay, how much has B.P. spent on the response so far? MCKAY: I -- I don't have an accurate number. I saw -- I saw... DINGELL: Would you submit that for the record? MCKAY: Yes. DINGELL: How much do you anticipate that B.P. will spend before this matter is over? MCKAY: I -- I don't know. DINGELL: This question for all witnesses -- was the blowout preventer modified in any way, yes or no? NEWMAN: The blowout preventer has been modified since it was delivered from Cameron in 2001. DINGELL: You say it was -- it was, to be specific, for the particular installation? Is that what you're telling me? NEWMAN: The blowout preventer was modified. It was modified in 2005 as a result of an agreement between Transocean and B.P. DINGELL: Why? NEWMAN: It was modified at B.P.'s request and at B.P.'s expense. DINGELL: Why was it modified, and how was it modified? You and Mr. McKay will want to be answering that question. MCKAY: Yes. I'm not sure the details of that modification. And I think the investigation should look into that as well as whether there were any other modifications made other than that. DINGELL: Were the modifications entirely in accord with the manufacturer's instructions? Or were they at variance with the manufacturer's instructions? MCKAY: I don't know. DINGELL: Sir, do you know? NEWMAN: The modifications to the Cameron BOP that were performed in 2005 utilized Cameron equipment. They were done under the direction of B.P. and in coordination with oversight from the MMS. DINGELL: Now, this is for all -- all witnesses. Yes or no, were there shear rams installed, and were they tested to ensure functionalities at the depths of this particular well, yes or no? MOORE: The BOP is outfitted with two sets of shear rams, one of which is referred to as a super shear ram. And the other one is referred to as a blind shear ram. DINGELL: Mr. McKay? MCKAY: I don't know. DINGELL: Next witness, sir, please? MOORE: Yes, Mr. Newman is correct. DINGELL: All right. Did the deep water have a backup remote trigger to activate the blowout preventer, yes or no? NEWMAN: The answer to that question, Congressman, is yes. The BOP system on the deep water Horizon was fitted with two automatic backup response systems, one of which the industry refers to as a dead man. And the other one the industry refers to as an auto shear. Both of those systems were fitted on the deep water Horizon's BOP control system. DINGELL: Thank you. Do the other witnesses agree with that statement? MCKAY: Yes. MOORE: Yes. DINGELL: Now, Mr. McKay and Mr. Probert, was the cement used in this case the same chemical makeup as the cement used by Halliburton for other wells, yes or no? PROBERT: Yes, the cement had been used -- this type of cement had been used in approximately 100 applications in the Gulf of Mexico. DINGELL: Mr. McKay? MCKAY: I don't know. DINGELL: For all witnesses, were the survivors of the explosions asked to sign medical or legal liability waivers after the explosion, yes or no? NEWMAN: The documents that the Transocean survivors of the incident were asked to sign were categorically not waivers. DINGELL: Mr. McKay? MCKAY: For the B.P. employees, no. DINGELL: Next witness? PROBERT: No. DINGELL: Next witness? MOORE: Congressman, we had no one on the rig. DINGELL: Now, it is my understanding, gentlemen -- and this is for all -- all of the witnesses, if you please. It is my understanding that local fishermen have been contacted by your companies to help with the cleanup in different ways. Have these contractors been asked to sign any kind of liability waiver? MCKAY: We are -- we are the -- a responsible party that's operating in the cleanup efforts with the Coast Guard. There was originally a standard form that was put out -- I've lost track of time -- a couple of weeks ago -- that -- that was a problem. That was torn up, started over. And so your practical answer is no. And that was fixed right after. DINGELL: So the answer to that question is no? NEWMAN: They are not. MCKAY: They are not signing liability waivers. DINGELL: Is -- is that a categorical or a qualified no? MCKAY: I believe it's a categorical. DINGELL: Very good. Now, I have a curiosity. I had intended to ask -- did the Minerals Management Service exempt B.P.'s lease on the well from an environmental impact statement as required by NEEP (ph)? B.P. apparently requested that exemption. MCKAY: There is a categorical exclusion that was utilized that -- that makes use of the government's environmental impact statement that's done with the lease sale. And then the government's environmental assessments that are done by grid in smaller area within that lease sale. And those are utilized with the permit. Thank you, Mr. Chairman. STUPAK: Thank you. Ms. Castor for questions, please? 13:45:34 CASTOR: Thank you, Mr. Chairman. Mr. McKay, in your testimony, you state that BP recognizes that, beyond the environmental impacts, there are also economic impacts to the people of the Gulf Coast states. BP will pay all necessary clean- up costs and is committed to paying legitimate claims for other loss and damages caused by this spill and that you are determined to do everything humanly possible to minimize the environmental and economic impacts of the resulting oil disaster. Now, in Florida, the Deepwater Horizon disaster is causing losses and damages to our most important industries, to our tourism industry, to the fishing industry. Vacations are being canceled. Hotels don't know what to do. They're very scared. This is having a devastating impact on the hard-working people of Florida, like the other Gulf Coast states. So when you state that BP is committed to taking responsibility for paying claims, are you willing to begin a high-level dialogue with the political leadership of the state of Florida to talk about ameliorating and addressing the impacts on our industries? MCKAY: Yes. CASTOR: Thank you. Mr. McKay, is there anyone who now works for BP America or BP parent or any BP subsidiary who previously worked for the U.S. Department of Interior and/or MMS? MCKAY: I believe so, yes. CASTOR: Who is that? MCKAY: I believe Jim Grant worked for the MMS. CASTOR: In what role? MCKAY: In what role for the MMS? I'm not sure. CASTOR: Could you -- could you answer that question in detail for the committee, moving forward, go through your records and see? MCKAY: Yes. CASTOR: OK. And what about vice versa? Is there anyone currently employed by the Department of Interior or MMS who previously worked for BP America or BP parent or a subsidiary? MCKAY: I know of one person, but I'm not sure they're still employed, but they were, yes. CASTOR: Who is that? MCKAY: Sylvia Baka (ph). CASTOR: In what role? MCKAY: I don't know. I don't know what her role is exactly. CASTOR: So you'll get that information to this committee? MCKAY: I'll get that to you, yes. CASTOR: Mr. Newman and Mr. Probert, same question, except substitute Transocean and/or Halliburton. NEWMAN: I'm not aware of anybody, but we can certainly check our records and confirm. CASTOR: Thank you. PROBERT: Neither am I of anyone, but we will certainly check our records for you. CASTOR: Thank you very much. I wanted to ask some questions about how the blowout preventer was tested. Mr. Newman, in your testimony, you say that the blowout preventer was tested regularly and found to be functional. Is that correct? NEWMAN: Yes. CASTOR: Mr. Newman, I want you -- I want to read to you a document that we obtained late last night. This document is from February 10th, and it is labeled as the "Deepwater Horizon Blowout Preventer Subsea Test." We have been told that there were additional tests conducted after this February test in March and April, but they went down with the rig. So this February test is the last detailed information we currently have on subsea testing of the blowout preventer. In particular, I want you to focus on the test for their casing shear rams. There are no test results here, and it actually says, "Do not function as per exemption." Mr. Newman, what does this mean? NEWMAN: I'm not familiar with the particular exemption that would be in place, so I can't comment right now. CASTOR: What does it mean when the document states, "Casing shear rams open"? NEWMAN: "Casing shear rams open" would be the test that would be performed to confirm that the casing shear rams do, in fact, open, so the shear rams retract. CASTOR: And same thing for close, same explanation. So what does it mean when it says, "Do not function," "Do not function as per exemption"? NEWMAN: I believe that it means it's part -- as part of this test, those casing shear rams are not functioned. CASTOR: So I want to be fair. My understanding is that there is evidence that the casing shear rams worked, so this failure to test may not have had an effect on the response, but it is indicative of the problems with the testing regime. You want to comment on that? We have other documents that discuss the testing of the blowout preventer, and one is a document prepared by BP on April 27th, after the blowout, one week after the explosion. I'd like to bring that up on the screen. This document makes a number of key points about problems with the BOP tests. It states, "BOP stack emergency systems are not typically tested once the BOP stack is on the seabed." It also says that the subsea testing of the emergency systems would show whether the system will work when installed and show that there were no leaks that would diminish system integrity. Mr. Newman, what is your reaction to this document? NEWMAN: While the BOP is on the surface, prior to being deployed for well operations, all of the systems on the BOP are tested, including simulation of the conditions that would trigger the automatic functions on the BOP control system. CASTOR: So were the emergency systems of the blowout preventer tested after the device was installed on the seabed? NEWMAN: Those systems are not tested once the BOP system is on the seabed. CASTOR: Why not? NEWMAN: The -- if -- if we could talk about the auto-shear function, the auto-shear function... CASTOR: I'm a little over my time, Mr. Chairman. OK. NEWMAN: If we could talk about the auto-shear function, the auto-shear function is installed on the BOP control system to simulate the disconnection between the lower portion of the BOP stack and the lower marine riser package. So these are two sets of components that come together and, taken together, they constitute the entirety of the BOP stack. The auto- shear function is designed to -- to activate when the lower marine riser package inadvertently disconnects from the BOP, the lower BOP. There is -- there is a way to do that subsea, but it introduces significant risk in the well construction operations. Disconnecting the LMRP inadvertently from the BOP is not an expected, not a -- not a normal part of the well construction process. It's an emergency response. And so testing that emergency response while the BOP is on the seabed would introduce significant risk. CASTOR: Thank you very much. Thank you, Mr. Chairman. STUPAK: Thank you. Mr. Inslee for questions, please? 13:52:35 INSLEE: Thank you. Mr. McKay, would you agree that the industry ought to be using the best available technology to avoid these cataclysmic blowouts? MCKAY: Yes. INSLEE: Now, I'm told that, in other places in the world -- let me back up for a moment. We've learned through some of the investigation that a possible source of failure was the failure for an activation signal in some sense to be given to the blowout preventer. I don't think that's been categorically proven, but there's some suggestion that that's what happened, from some interruption of the connection to the -- to the activation switch. We're advised that in other places in the world, in Norway and Brazil, an acoustically triggered switch is available that is remote to the rig so that it's not dependent on a physical linkage between the blowout preventer and the rig, that it receives an acoustic signal of a blowout occurring and immediately sends through, I believe, a sonar system to activate the blowout preventer. And the safety that seems to me common sense, in the sense it's not dependent on a physical connection, as this one was, and that physical connection may have been interrupted in the explosion, in the blowout, to me that seems to be another inherent safety feature that is used in other countries. Was that system used in this particular rig? MCKAY: Well, I'm not a blowout preventer expert, and maybe these guys can answer, as well, but I think it's something that needs to be looked at. As I understand it, the acoustic signaling, you know, is not always applicable in some of the places like the deepwater Gulf of Mexico. We did have redundant systems here to try to trigger the blowout preventer, including physical manual intervention... (CROSSTALK) INSLEE: I understand that. And I guess those all depend on a physical connection to the -- to the rig platform. MCKAY: Or the lack of. INSLEE: Or the lack of. This one has a remote system, and it seems to be used by giving you an additional redundancy, if you will. Let's just be clear: Was this system in place on this rig? Does anybody have a suggestion that it was? No one's shaking their head yes, so we're assuming there was no acoustical-activated trigger. Now, assuming that -- that -- and I'll just ask Mr. McKay. Assuming that this acoustically-triggered system would provide an added layer of redundancy that could operate even in the absence of any physical connection between the blowout preventer and the rig, would BP be willing to accept that technology as the best available technology? MCKAY: We -- we would absolutely accept anything that -- that would improve upon what we have in terms of redundancy. So I would ask some of the experts that. But we would be willing to do that, if looked like it would help anything, yes. INSLEE: And was it ever considered by British Petroleum to require that in its operations at any time? MCKAY: I don't know. INSLEE: Could you find that out and let us know? Do any of the other witnesses have information about that as to whether or not the acoustically triggered device was ever considered by British Petroleum? Do you have any information, any of the other witnesses? (UNKNOWN): I would not. PROBERT: No information, no. (UNKNOWN): I don't think it would be appropriate for me to comment on what BP may or may not have considered. INSLEE: Well, we'll look forward to your letting us know, Mr. McKay. There have been some press reports that the cost dissuaded British Petroleum from installing this additional safety mechanism, so we'll be interested to see what you find out in your review. I want to ask about the -- the capability of this sharing system. And I have to just tell you, as a layperson, I've been disturbed by the lack of reliability of this system from what I've been able to look at. I'm looking at a document. It's -- it's a study done from the U.S. Minerals Management Service by WEST Engineering Services of December 2002. And the report suggests that they tested several of these blowout preventers and said, if you take in -- if -- if operational considerations of the initial drilling program were accounted for, shearing success dropped to 3 of 6, 50 percent; 50 percent is not something that gives you huge confidence. The report goes on to say, WEST -- that's the contractor here who did the investigation -- WEST is unaware of any regulatory requirements that state the obvious, that the BOP must be capable of shearing pipe planned for use in the current drilling program. And apparently there's no regulatory requirement that there's been a demonstration of a particular BOP to shear a particular pipe of a particular metallurgical situation. Is that accurate? Mr. Moore, you might be the one most knowledgeable. MOORE: Let me respond to that, because Cameron -- Cameron took -- took a position on this in 2007 with the study that we did with our own information on shearing capabilities, where we plotted across a matrix of low, medium and high shear rates to shear certain size drill pipe. We took the top end of that. We took the maximum range in which shear pipes should be sheared, because shear pipe is different strengths at different hardness, so it's not altogether exactly consistent, so... INSLEE: Thank you. I appreciate that, Mr. Moore. I just have a real quick question I want to ask Mr. McKay. Mr. McKay, in September 14, 2009, BP sent a letter to the U.S. Department of Interior Minerals Management. And you said, quote, "While BP is supportive of companies having a system in place to reduce risks, accidents, injuries and spills, we are not supportive of the extensive proscriptive regulations as proposed in this rule." That's signed by Richard Morrison, vice president, GOM production. Do you plan on revisiting that position by BP in light of this incident? MCKAY: I think -- I think everything we learn in this incident will be relevant in terms of what regulations should be going forward. INSLEE: Well, I appreciate that. I'll be introducing a bill here shortly that will require the use to best available technologies. It's motivated in part because of the absence of this particular safety device, this acoustic device we're talking about, so I would appreciate your consideration. Thank you.
HOUSE: OIL SPILL HEARING WITH SALAZAR 1300
GULF COAST OIL SPILL The House Natural Resources hearing with Interior Secretary, Ken Salazar, Rear Admiral Peter Neffenger, and Mary. Kendall, acting inspector general for the U.S. Department of the Interior 13:00:00 RESPECT, WE'RE BEING INUNDATED WITH REQUESTS FOR INFORMATION AT 13:00:01 THE SAME TIME THAT WE ARE DEVOTING AN INCREDIBLE EFFORT AT 13:00:06 ADDRESSING THE -- I COULD UNDERSTAND WHEN YOU 13:00:09 WAIT EIGHT MNTS TO REQUEST TO QUESTIONS WE ASK IT MUST BUILD 13:00:13 UP SIGNIFICANTLY OVER TIME. BUT IF WE COULD JUST THE COPIES 13:00:17 OF WHAT HAS HAPPENED, IT DOESN'T DO YOU ANY GOOD TO COME IN AND 13:00:21 SAY WE'RE -- GOT ALL THE REQUESTS BUILDING UP WHEN YOU 13:00:24 KEEP LETTING THEM BUILD UP OVER MONTHS. 13:00:27 WELL, MY TIME -- ONE OF THE PROBLEMS OF HAVING FIVE MINUTES, 13:00:29 LET ME GET TO THIS. WE HEARD SECRETARY SALAZAR 13:00:33 MENTION, QUOTE, A PRIOR ADMINISTRATION WHEN INDUSTRY WAS 13:00:38 RUNNING THE SHOW. AND HE SAYS A RELATIONSHIP 13:00:41 BETWEEN MMS AND BIG OIL AND ARM'S LENGTH NOW. 13:00:44 WE HAVE HAD HEARINGS IN THIS ROOM. 13:00:47 WE HAVE HAD THE IG COME IN AND GOT DOWN TO TWO PEOPLE WHO MAY 13:00:52 HAVE KNOWN ABOUT THAT PRIOR ADMINISTRATION WHEN INDUSTRY WAS 13:00:55 RUNNING THINGS IN 1998 AND 1999 AND THEY LEFT OUT THE LANGUAGE 13:00:59 ON THE PRICE CONTROL FOR THE LEASES THAT JUST MADE MILLIONS 13:01:03 FOR BIG OIL AND COST OUR FEDERAL TREASURY MILLIONS AND MILLIONS 13:01:07 OF DOLLARS. AND WHEN WE -- WHEN I ASKED THE 13:01:10 INSPECTOR GENERAL, WHY DIDN'T YOU TALK TO THESE TWO PEOPLE, HE 13:01:13 SAID THEY LEFT GOVERNMENT SERVICE. 13:01:15 THERE'S NOTHING I CAN DO. I COULDN'T BELIEVE HE WOULDN'T 13:01:17 TRY TO CALL THEM AND SEE IF THEY WOULD VOLUNTARILY RESPOND BUT HE 13:01:22 DIDN'T. AND IT TURNS OUT ONE OF THOSE 13:01:25 WENT FROM THE CLINTON ADMINISTRATION TO BECOME FIRST 13:01:29 VICE PRESIDENT OF THE HEALTH, SAFETY AND ENVIRONMENT FOR 13:01:32 BRITISH PETROLEUM NORTH AMERICA AND THEN PROMOTED TO DIRECTOR OF 13:01:36 GLOBAL SAFETY AND EMERGENCY RESPONSE FOR BRITISH PETROLEUM 13:01:39 AND THEN GENERAL MANAGER FOR SOCIAL INVESTMENT PROGRAMS 13:01:44 STRATEGIC PROGRAMS AT BRITISH PETROLEUM AND THEN LAST SUMMER 13:01:48 SECRETARY SALAZAR SAYS SHE UNDERSTANDS THE VALUE OF 13:01:51 PARTNERSHIPS SO HE'S NOW PUT HER WITH MINERALS AND MANAGEMENT IN 13:01:56 THE DEPARTMENT OF INTERIOR. AND SO, I HOPE THAT YOU'LL LOOK 13:02:01 CLOSELY INTO THAT COZY RELATIONSHIP THE PRESIDENT HAS 13:02:04 TALKED ABOUT WANTING TO END. AND I'M VERY CONCERNED THAT IF 13:02:08 MINERALS AND MANAGEMENT IS OVERSEES BRITISH PETROLEUM JUST 13:02:13 HOW COZY THIS HAS GOTTEN AND I REALIZE MY TIME'S EXPIRED BUT 13:02:17 I'M JUST ASKING, PLEASE, LOOK INTO THIS. 13:02:20 THE INSPECTOR GENERAL REFUSED AND WE HAVE TO RELY ON YOU TO 13:02:23 HELP BECAUSE CONGRESS IS NOT ADEQUATELY LOOKING INTO IT. 13:02:26 THANK YOU. JUST FOR THE -- 13:02:28 YIELD BACK. JUST FOR THE RECORD, SILL VIA 13:02:32 BACKA IS RECUSED FROM THE MATTER BECAUSE OF THE PRIOR EMPLOYMENT 13:02:36 WITH BP. WHEN YOU SAY COMPLETELY 13:02:39 RECUSED FROM THIS MATTER, DOES THAT LEADING UP TO THE BLOWOUT 13:02:43 PREVENTER FAILING TO -- SHE'S NOT INVOLVED IN 13:02:48 OFFSHORE ENERGY ISSUES. GENTLEMAN'S TIME IS EXPIRED. 13:02:51 GENTLEMAN FROM WISCONSIN, MR. KIND. 13:02:54 THANK YOU, MR. CHAIRMAN. DEPUTY SECRETARY, THANK YOU FOR 13:02:56 BEING HERE ALONG WITH THE SECRETARY TO GIVE US AN UPDATE 13:02:58 ON WHAT'S TAKEN PLACE. YOU KNOW, I DO APPRECIATE WHAT 13:03:02 THE ADMINISTRATION, WHAT THE DEPARTMENT IS INTERIOR IS TRYING 13:03:04 TO DO IN LIGHT OF THIS ACCIDENT AND MY RECOLLECTION IS CORRECT, 13:03:08 SINCE COMING TO OFFICE, THE DEPARTMENT OF INTERIOR HAS BEEN 13:03:13 ELIMINATING THE SCANDAL PLAGUE ROYALTY IN KIND PROGRAM. 13:03:19 ESTABLISHED NEW ETHICS STANDARDS IF I RECALL WITHIN THE 13:03:22 DEPARTMENT. BALANCED MMS MISSION TO INCLUDE 13:03:26 RENEWABLE ENERGY PRODUCTION AS PART OF ITS PORTFOLIO. 13:03:28 YOU HAVE SLOWED DOWN THE NEW LEASING THAT WAS TAKING PLACE 13:03:32 FOR MORE THOROUGH REVIEW AND BEFORE THE LEASING DECISIONS ARE 13:03:37 ULTIMATELY MADE. MOVED IN A DIRECTION OF MORE 13:03:41 SCIENCE-BASED DETERMINATION AS FAR AS LEASE APPROVAL WITHIN THE 13:03:44 AGENCY. AND, OBVIOUSLY, THE SECRETARY 13:03:46 ANNOUNCED THE DIVISION OF MMS NOW INTO A SEPARATE ENTITIES. 13:03:52 ALL NECESSARY STEPS. BUT I KNOW THE PEOPLE IN WESTERN 13:03:55 WISCONSIN ARE WONDERING WHY THIS HAPPENED AND WHAT STEPS CAN BE 13:03:59 TAKEN TO AVOID IT FROM OCCURRING IN THE FUTURE. 13:04:03 HOW MUCH THE DEPARTMENT BE TAKING INTO CONSIDERATION WHAT 13:04:04 OTHER COUNTRIES HAVE BEEN REQUIRED, ESPECIALLY IN THE AREA 13:04:07 OF DEEP WATER DRILLING AS FAR AS IMPROVEMENTS THAT WE NEED TO BE 13:04:11 MAKING TO ENSURE THAT ANY FUTURE PROJECT OR EVEN CURRENT PROJECT 13:04:15 THAT'S TAKING PLACE RIGHT NOW MEETS THE OPTIMAL MEASUREMENTS 13:04:20 OF SAFETY AND, AGAIN, SCIENCE-BASED DETERMINATION TO 13:04:25 AVOID SOMETHING LIKE THIS FROM OCCURRING IN THE FUTURE? 13:04:28 IF I RECALL, I THINK CANADA ALREADY REQUIRES A SECONDARY 13:04:34 PIPE OR A SECONDARY VALVE TO BE DRILLED AT THE SAME TIME THE 13:04:39 PRIMARY ONE IS AND ANY OF THEIR DEEP WATER DRILLING. 13:04:42 AM I CORRECT IN THAT? I DON'T KNOW THE DETAILS OF 13:04:46 THAT SPECIFIC POINT BUT TO YOUR MORE GENERAL POINT WE ARE VERY 13:04:50 INTERESTED IN HAVING WORLD CLASS STANDARDS AND THAT MEANS 13:04:55 BENCHMARKING AGAINST OTHER COUNTRIES AND TAKING THE BEST 13:04:58 THAT THEY HAVE TO OFFER AND, IN FACT, IN THE REPORT WE'RE 13:05:02 PREPARING FOR THE PRESIDENT, WE HAVE STARTED THAT FUNCTION. 13:05:06 THERE ALREADY IS A LOT OF INTERNATIONAL DISCUSSION ALONG 13:05:11 THESE LINES. AND -- BUT WE TAKE YOUR POINT. 13:05:16 WE WANT TO BE -- HAVE THE BEST STANDARDS IN THE WORLD. 13:05:19 IS THAT GOING TO BE PART OF THE COMMISSION'S PER VIEW, AS 13:05:22 WELL? ABSOLUTELY. 13:05:24 -- BEST PRACTICES IN THE INDUSTRY -- 13:05:26 ABSOLUTELY, ABSOLUTELY, YES. ALL RIGHT. 13:05:28 ALSO, I THINK TAKING A LOOK AT THE OPPORTUNITY FOR SECONDARY 13:05:31 SAFETY VALVES TO BE ESTABLISHED IN CASE WE GET A BLOWOUT OF THIS 13:05:34 ORDER -- YES. 13:05:36 -- THAT THERE'S A SECOND AND THIRDAL TERNIVE TO IN ORDER TO 13:05:39 SHUT SOMETHING LIKE THIS OFF QUICKLY? 13:05:41 YES, CONGRESSMAN. NOW, OBVIOUSLY, THE INSPECTOR 13:05:45 GENERAL WILL BE TESTIFYING B 13:05:49 BRIEFLY BEFORE US, TOO. I THINK SHE INDICATED VERY 13:05:53 CLEARLY A LOT OF THIS IS HUMAN NATURE. 13:05:55 PLAYING OUT. WE HAVE A TERRIBLE PROBLEM WITH 13:05:57 THE REVOLVING DOOR OF THOSE IN THE INDUSTRY, GOING INTO THE 13:06:01 OVERSEEING AGENCIES TO CONDUCT OVERSIGHT FROM THE PLACE THEY 13:06:03 JUST CAME FROM AND ALSO VICE VERSA. 13:06:06 THOSE WITHIN GOING TO THE PRIVATE INDUSTRY KNOWING HOW TO 13:06:09 PLAY THE GAME. I DON'T KNOW WHAT WE CAN REALLY 13:06:13 TO DO TO GET AT THAT OTHER THAN BRIGHTER LINE RULES TO PREVENT 13:06:17 WHAT APPEARS TO BE A VERY COZY RELATIONSHIP AND A LOT OF 13:06:21 TRANSITION FROM PUBLIC AND PRIVATE SECTOR WORK THAT'S BEEN 13:06:23 GOING ON FOR A VERY LONG TIME. HAVE YOU GUYS BEEN THINKING 13:06:28 ABOUT THIS AND COMING UP WITH RECOMMENDATIONS FOR US TO 13:06:32 CONSIDER AS FAR AS THE REVOLVING DOOR PROBLEM I THINK I AND 13:06:36 OTHERS SEE? WE ABSOLUTELY HAVE. 13:06:38 AS THE INSPECTOR GENERAL, ACTING INSPECTOR GENERAL MAY TESTIFY, 13:06:44 AS SOON AS WE RECEIVED THE DRAFT REPORT, WE WERE LOOKING 13:06:48 INTERNALLY AT SOME NEW RULES THAT WE MIGHT CONSIDER. 13:06:51 AND WE'VE -- WE'RE IN A DIALOGUE WITH THE INSPECTOR GENERAL ABOUT 13:06:55 SOME NEW REQUIREMENTS THAT WE WOULD HAVE ON THE REVOLVING DOOR 13:07:00 THEORY. SO WE'RE ABSOLUTELY ATTUNED TO 13:07:02 THAT. NOW, IS IT -- MAYBE ETHICALLY 13:07:06 BUT IS IT PROHIBITED BY LAW OR BY CRIMINAL PENALTIES FROM 13:07:10 ACCEPTING GIFTS OR KICKBACKS OR THINGS OF THAT NATURE FROM THE 13:07:13 INDUSTRY THAT YOU'RE SUPPOSED TO BE OVERSEEING? 13:07:16 THERE ARE SOME VERY BRIGHT LINES IN TERMS OF WHAT CAN BE 13:07:20 ACCEPTED AS GIFTS. AND, I THINK THERE THE LINES ARE 13:07:25 MUCH CLEARER AND THE ABILITY TO TAKE DISCIPLINARY ACTION IS MUCH 13:07:30 MORE CLEAR. I THINK THE ISSUE THAT MARY 13:07:36 KINDLE RAISED APPROPRIATE SLI THE CULTURAL QUESTION OF THE 13:07:40 FRIENDSHIPS AND CLOSE RELATIONSHIPS, ET CETERA. 13:07:42 THAT'S A HARDER NUT TO CRACK AND WE LOOK FORWARD TO WORKING WITH 13:07:45 THE INSPECTOR GENERAL. I WILL SAY THAT WE HAVE REALLY 13:07:51 ENJOYED A VERY GOOD PROFESSIONAL RELATIONSHIP WITH THE ACTING 13:07:56 INSPECTOR GENERAL AND WE, IN FACT, SHE'S WORKING WITH US ON A 13:08:01 SPECIAL SAFETY OVERSIGHT COMMITTEE FUNCTION MOVING 13:08:05 FORWARD FOR PRECISELY THIS REASON. 13:08:08 IT'S VERY INSTRUCTIVE TO GET REPORTS FROM THE INSPECTOR 13:08:13 GENERAL'S OFFICE. IT IS EVEN, I THINK, MORE 13:08:15 HELPFUL TO GET THE INPUT AND EXPERIENCE OF THE INSPECTOR 13:08:18 GENERAL AS WE LOOK GOING FORWARD AT NEW THINGS WE CAN DO TO AVOID 13:08:23 THE PROBLEMS SO THAT WE DON'T HAVE -- 13:08:26 I APPRECIATE THAT RESPONSE. IT IS CRUCIAL FOR THAT 13:08:29 COLLABORATION AND COOPERATION WHEN WE MOVE FORWARD. 13:08:31 WHEN YOU GET COMMENTS WE'RE ALL OIL INDUSTRY IT'S TROUBLING AND 13:08:35 NOT THE WAY IT IS SUPPOSED TO WORK SO WE'LL LOOK FORWARD TO 13:08:38 WORKING WITH YOU AS WE MOVE FORWARD. 13:08:40 THANK YOU, MR. CHAIRMAN. GENTLEMAN'S TIME IS EXPIRED. 13:08:44 WE FORMALLY RECOGNIZE HIM AS A NEW MEMBER. 13:08:48 THANK YOU, MR. CHAIRMAN. I LOOK FORWARD TO WORKING WITH 13:08:51 YOU, WITH THE COMMITTEE MEMBERS AND STAFF, AS WELL, TO REALLY 13:08:54 MAKE A DIFFERENCE HERE, MR. CHAIRMAN. 13:08:58 DEPUTY SECRETARY, FOLLOWING THE '89 EXXON VALDEZ SPILL, WE HEARD 13:09:02 REFERENCE TO THE 1990 OIL POLLUTION ACT THAT WAS BROUGHT 13:09:08 FORTH AND WHAT THAT DID TO SHIFT RESPONSIBILITY TO THESE 13:09:11 COMPANIES. PUTTING THE FEDERAL GOVERNMENT 13:09:13 ON A BACK STEP, IF YOU WILL, AS FAR AS HAVING THAT DIRECT 13:09:17 INVOLVEMENT. LEARNING FROM THAT, HOW CAN WE 13:09:20 INSURE IN THE FUTURE THAT THE FEDERAL GOVERNMENT WILL HAVE THE 13:09:22 CAPABILITY TO TAKE GREATER CONTROL OF CLEANUP EFFORTS, 13:09:25 WHETHER IT'S CREATING OR ESTABLISHING AN ENTITY WHERE WE 13:09:30 CAN UTILIZE PERSONNEL, EQUIPMENT, TECHNICAL EXPERTISE 13:09:35 TO DRIVE THIS HOME AND DOING THE THINGS WE SHOULD BE DOING OFF 13:09:37 THE BAT? CONGRESSMAN, I THINK THAT 13:09:40 WILL BE PART OF OUR DEBRIEF, IF YOU WILL, AFTER THIS INCIDENT 13:09:46 HAS BEEN CONTROLLED. I THINK A LOT OF THE CONFUSION 13:09:53 IS -- IS MORE IN TERMS OF THE RELATIVE ROLES. 13:09:55 I MEAN, THE -- THE OIL POLLUTION ACT, YOU'RE CORRECT. 13:10:00 DID MAKE IT CLEAR THAT THE COMPANIES HAVE RESPONSIBILITY. 13:10:05 BP IN THIS CASE ALONG WITH SOME OTHER PARTIES ARE RESPONSIBLE 13:10:08 HAVE TO OPEN THEIR CHECKBOOKS, ARE TO MAKE IT HAPPEN. 13:10:12 BUT THE REALITY IS THAT THE FEDERAL GOVERNMENT ALSO IS THE 13:10:17 PRIMARY PLAYER HERE IN TELLING THEM WHAT THEY HAVE TO PAY FOR. 13:10:20 AND THAT IS WHAT WE ARE DOING THROUGHED THAT ALLEN AND THE 13:10:26 NATIONAL INCIDENT COMMAND BUT LIKE EVERYTHING ELSE ASSOCIATED 13:10:29 WITH THIS INCIDENT, WE'LL LOOK FORWARD TO LOOKING BACK AND 13:10:33 SEEING WHETHER IT WOULD BE USEFUL TO CLARIFY THE LAW OR 13:10:37 CLARIFY THE RESPONSIBILITIES. AND DEPUTY SECRETARY, I KNOW 13:10:43 THAT THERE'S BEEN A LOT BEEN SAID BY THIS -- MR. DUDLEY FROM 13:10:47 BP, MR. SUBTLES FROM BP, AS WELL, TALKING ABOUT SOME OF 13:10:53 THESE ATTEMPTS THAT -- FAILED ATTEMPT IT IS STOP THE LEAK, 13:10:55 IT'S NEVER BEEN DONE BEFORE, THAT THERE'S SO CERTAINTY THAT 13:10:58 THESE KINDS OF DEPTHS. WHY WAS IT THAT BP DID NOT MOVE 13:11:02 FORWARD WITH TRYING TO KILL THE WELL TO BEGIN WITH? 13:11:05 WHY IS IT THAT THEY -- THESE FLOWS, LOOKS LIKE THE ATTEMPTS 13:11:09 WAS TO KEEP THE FLOWS ARRIVE AS OPPOSED TO JUST GOING IN AND 13:11:12 SHUT IT OFF? THIS WAS A CATASTROPHIC 13:11:17 FAILURE, AND IF THERE HAD BEEN A TECHNICAL WAY TO STOP TO KILL 13:11:21 THE DRILL -- THE WELL EARLIER, YOU CAN BE ASSURED THEY WOULD 13:11:25 HAVE DONE IT AND WE HAVE REQUIRED THEM TO DO IT. 13:11:29 THE -- WHAT HAPPENED WAS ESSENTIALLY THE ENTIRE 13:11:33 INFRASTRUCTURE ASSOCIATED WITH KILLING THE WELL WAS LOST WITH 13:11:39 THE EXPLOSION. SO WHAT'S BEEN HAPPENING OVER 13:11:41 THE LAST COUPLE OF WEEKS, IN PARTICULAR, HAS BEEN A 13:11:45 RECONSTRUCTION EFFORT TO ENABLE WHAT IS SCHEDULED FOR TODAY, THE 13:11:50 TOP KILL, WHICH REQUIRES UNDER PRESSURE VERY LARGE VOLUMES OF 13:11:57 DRILLING FLUIDS TO BE INJECTED IN THE WELL. 13:12:00 AND AT 5,000 FEET WITHOUT DELIVERY MECHANISMS, THOSE 13:12:05 MECHANISMS HAD TO BE CONSTRUCTED AND IT'S BEEN A 24/7 OPERATION 13:12:09 TO GET TO THIS POINT TODAY. AND I THINK THERE'S A LOT OF 13:12:14 CONCERN THERE BECAUSE IN SOME RECENT ARTICLES OUT OF 13:12:17 "WASHINGTON POST," THIS ONE FROM YESTERDAY, IT CITES THAT THERE'S 13:12:21 RIG WORKERS AND LAWMAKERS HAVE FAULTED BP FOR FAILING TO PAY 13:12:25 ENOUGH ATTENTION TO A SPIKE IN PRESSURE IN THE DRILL PIPE, 13:12:29 NEKTING TO ASK FOR A SECOND CEMENT PLUG IN THE WELL, BOTH OF 13:12:32 WHICH COULD HAVE BEEN ADDRESSED WITH MORE TIME. 13:12:34 INSTEAD RIG WORKERS HAVE SAID BP PRESSED AHEAD WITH SUBSTITUTING 13:12:39 SEA WATER FOR DRILLING MUD IN PREPARATION FOR CLOSING THE WELL 13:12:42 AND MOVING THE RIG OFF THE SITE. IT THEN GOES ON TO SAY THAT TIME 13:12:46 WORRIES WEREN'T THE EXCLUSIVE PROVINCE OF BP N. A 2006 TRADE 13:12:50 JOURNAL, TRANSOCEAN, GENERAL ELECTRIC ENGINEERS WROTE ABOUT 13:12:53 HOW TO SAVE TIME ON A TEST BY LEAVING TEST VALVES IN PLACE. 13:13:01 A SPOKESMAN TALKED ABOUT HOW TO GET CEMENT TO SET FASTER AND IN 13:13:06 A CONFERENCE CALL LAST AUGUST, WE HEARD ABOUT WHAT THAT MEANS 13:13:09 TO SAVING COST. LEAVING THE TEST VALVES IN THEM, 13:13:13 TURNING THERE WHERE THERE WERE OTHER WAYS TO SHUT THEM OFF, I 13:13:16 HOPE THEY'RE THINGS WE HOPE TO LOOK TO DO AND I HOPE WITH NOW 13:13:19 WHAT'S BEEN DONE WITH RESTRUCTURING OF MMS THAT WE ARE 13:13:24 ABLE TO ADDRESS THE NOTICE OF ISSUING BACK TO AT LEAST 2002 13:13:31 THAT REQUIREMENT WAS LIFTED FOR MOST WELLS IN THE CENTRAL AND 13:13:33 WESTERN GULF OF MEXICO TO HAVE SOME OF THESE CONTINGENCY PLANS, 13:13:38 AS WELL. GOING FORWARD, I HOPE WE ARE 13:13:40 ABLE TO CONDUCT A THOROUGH AUDIT OF THOSE WITHOUT THE PLANS IN 13:13:43 PLACE. I HOPE THAT WE CAN LEARN THAT 13:13:46 AGENCIES CAN WORK CLOSE WITH ONE ANOTHER AS YOU HAVE DONE TO 13:13:49 BRING EXPERTS NECESSARY HERE TO ADDRESS THE ISSUES. 13:13:52 BUT MAKE SURE WE'RE USING MODELS AND SIMULATION TO FIND OUT IF 13:13:56 THE PLANS ARE TRULY GOING TO WORK BECAUSE WE HAVE SEEN THAT 13:13:58 THAT ABSOLUTELY IS NOT THE CASE. THEY'RE STILL SAYING TODAY THEY 13:14:03 KNOW IT'S NOT WORKING. WITH THAT, MR. CHAIRMAN, I 13:14:05 APPRECIATE IT VERY MUCH AND YIELD BACK MY TIME. 13:14:08 GENTLEMAN FROM OREGON, MR. DEFAZIO. 13:14:11 THANK YOU, MR. CHAIRMAN. I'M PUZZLED. 13:14:14 IS THERE OR IS THERE NOT A M 13:14:19 MORATORIUM? PRESS ACCOUNTS SAY PERMITS HAVE 13:14:21 BEEN ISSUED. STATEMENT BY THE SECRETARY SAID 13:14:25 YOU'RE REQUIRED TO ISSUE THE PERMITS WITHIN 30 DAYS OF 13:14:29 APPROVAL OR DISAPPROVAL. ARE YOU UNDER A MORATORIUM OR 13:14:32 NOT ON PERMITTING? WE ARE NOT APPROVING ANY -- 13:14:36 WE HAVE NOT APPROVED ANY NEW APPLICATIONS FOR DRILLING IN THE 13:14:41 DEEP WATER SINCE APRIL 20th. AND WE PUT A FULL STOP ON ALL -- 13:14:48 AFTER MAY 6th ALL NEW APPLICATIONS TO PERMIT TO DRILL. 13:14:53 PERIOD. SHALLOW WATER AND DEEP WATER. 13:14:58 THE CONFUSION, CONGRESSMAN, HAS BEEN THAT THERE ARE REVISIONS TO 13:15:01 PERMITS SO-CALLED SIDE TRACKS, BYPASSES. 13:15:06 THOSE APPEAR ON THE MMS WEBSITE AS THOUGH THEY'RE NEW PERMITS. 13:15:10 THEY'RE NOT NEW PERMITS IN THE SENSE OF NEW OPERATIONS 13:15:13 STARTING. THEY'RE ONGOING OPERATIONS, 13:15:16 DRILLING'S ALREADY OCCURRED. THEY NEED A BYPASS. 13:15:18 THEY NEED TO DO A SIDE DRILL. MOVE AROUND THE PROBLEM. 13:15:22 WE ARE ALLOWING THOSE TO GO FORWARD HERE DURING THIS PERIOD. 13:15:26 THOSE ARE NOT NEW APPLICATIONS FOR DRILLING. 13:15:30 AND ALSO, THE IMPORTANT THING, ALSO, CONGRESSMAN, IS THAT THIS 13:15:33 WAS IN PLACE UNTIL THE PRESIDENT GETS THE REPORT WHICH LOOKS LIKE 13:15:37 WILL BE TOMORROW. AND THEN, DECISIONS WILL BE MADE 13:15:41 ABOUT THE FUTURE. OKAY. 13:15:44 NOW, ON THE CASE OF THE TEST WELLS IN THE ARCTIC, DO THEY 13:15:50 HAVE TO HAVE A CATASTROPHIC PLAN FOR A CATASTROPHIC FAILURE 13:15:57 BEFORE THEY DRILL THE TEST WELLS? 13:15:59 WE HAVE NOT RECEIVED YESTERDAY THE APD REQUESTS FROM 13:16:03 SHELL FOR THOSE PROPOSED EXPLORATORY WELLS. 13:16:06 -- REQUEST THAT -- THEY ALSO HAVE TO SUBMIT AN 13:16:11 APD, AN APPLICATION FOR PERMIT TO DRILL. 13:16:13 RIGHT. SO, WHAT -- THEY HAVE AN 13:16:19 EXPLORATION PLAN BUT THE NEXT STEP IS FOR THEM TO SEND US 13:16:23 SO-CALLED APDs, WHICH ARE THE FINAL STEP FOR REVIEW. 13:16:26 AT THAT POINT, WE REVIEW THE ENTIRE SITUATION AND DECIDE 13:16:29 WHETHER TO ALLOW THE EXPLORATION ACTIVITY TO GO FORWARD OR NOT. 13:16:33 BUT EXPLORATION ACTIVITIES DO REQUIRE A CATASTROPHIC RESPONSE 13:16:37 PLAN? YES, YES, THEY DO. 13:16:39 YES, ABSOLUTELY. OKAY. 13:16:40 I MEAN, YOU KNOW, I MEAN, YOU CAN ENVISION THE CONCERN ABOUT, 13:16:45 YOU KNOW -- SURE. 13:16:47 SPILL EVEN A FRACTION OF THIS MAGNITUDE IN THE DIFFICULT 13:16:50 CONDITIONS IN THE ARCTIC. YES, YES. 13:16:54 I WOULD ASSUME THERE'S EXTRAORDINARY SCRUTINY APPLIED 13:16:58 TO THEIR -- WHAT THEY ALLEGE THEY HAVE NO PLACE TO DEAL WITH 13:17:01 THIS CATASTROPHIC EVENT. THAT'S AN APPROPRIATE 13:17:04 ASSUMPTION, CONGRESSMAN. OKAY. 13:17:06 NOW, IN A HEARING LAST WEEK, IT CAME OUT THAT -- I MEAN, THERE'S 13:17:09 A LOT ABOUT THE BLOWOUT PREVENTER HAVING BEEN MODIFIED 13:17:14 AND WHETHER OR NOT IT HAS A HYDRAULIC LEAK AND FUNCTIONING 13:17:17 PROPERLY, THE CONDITION OF THE BATTERIES AND THAT. 13:17:19 THERE WAS ONE THING EVEN MORE DISTURBING THAN THAT BEYOND 13:17:23 POTENTIAL FOR MALFUNCTION OR ACTUAL MALFUNCTION. 13:17:26 IS THAT IT TURNS OUT THAT THESE BLOWOUT PREVENTERS CANNOT SEVER 13:17:32 THE PIPE WHERE IT'S JOINED. 10% OF THE PIPE BEING USED ON 13:17:36 THESE DEEP WATER WELLS, THESE BLOWOUT PREVENTERS ARE NOT 13:17:40 DESIGNED TO DEAL WITH. HOW CAN WE ALLOW IT TO GO 13:17:44 FORWARD WITH BLOWOUT PREVENTERS THAT CAN'T DO THE JOB EVEN IF 13:17:48 THEY WERE? THAT'S A REALLY SERIOUS 13:17:50 ISSUE. THERE'S TWO ISSUES THERE, AS YOU 13:17:52 MAY KNOW. ONE IS WHETHER THE PIPE RATING 13:17:56 IS -- MATCHES THE ABILITY OF THE SHEERS TO CUT THROUGH IT. 13:17:59 AND THEN THE SECOND ISSUE IS THAT WHERE THE PIPES ARE PUT 13:18:04 TOGETHER YOU'VE GOT THICKER MATERIAL AND THE LIKELY FAILURE 13:18:09 OF THOSE SHEERS. WE'RE GOING TO NEED TO LOOK INTO 13:18:13 THIS. MY UNDERSTANDING IS -- I'VE BEEN 13:18:15 TOLD THAT IN THIS CASE THE SHEER RAMS HAD THE CAPABILITY OF 13:18:23 CUTTING THROUGH THIS QUALITY OF PIPE. 13:18:25 BUT THAT, OBVIOUSLY, IS GOING TO BE A FACTUAL QUESTION FOR THIS 13:18:29 MATTER AND WILL BE PART OF THE MORE GENERAL REVIEW. 13:18:33 MMS HAS DONE STUDIES THROUGH THE YEARS ON THIS YEARS AND 13:18:37 TIGHTENED UP THESE REGULATIONS BUT WE'LL LOOK AT WHETHER THEY 13:18:40 HAVE TO BE TIGHTENED UP MORE. RIGHT. 13:18:43 PRESS ACCOUNTS SAY THERE WAS A STUDY DONE BY MMS, SUBSEQUENT 13:18:47 STUDY WHICH WAS '07, BP ENGINEERS SAYING THAT BASICALLY 13:18:52 THAT MOST OR MANY BLOWOUT PREVENTERS WERE NOT CAPABLE OF 13:18:57 CUTTING PIPE OF THIS THICKNESS. SO, YOU KNOW, THAT'S A VERY 13:19:01 SERIOUS CONCERN. RIGHT. 13:19:03 WE DON'T WANT BLOWOUT PREVENTERS ABOUT A FEEL-GOOD 13:19:07 DEVICE. I DON'T FEEL TOO GOOD ABOUT THIS 13:19:09 RIGHT NOW. ABSOLUTELY. YOU REALLY NEED TO BE LOOKING 13:19:12 AT. WITH THAT, MR. CHAIRMAN, THANK 13:19:14 YOU. YEAH, CERTAINLY YIELD. 13:19:17 I THINK THAT THE -- THANK THE GENTLEMAN FOR YIELDING. 13:19:19 YOU PUT YOUR FINGER ON A VERY IMPORTANT POINT HERE. 13:19:24 WHAT WE HAVE HAD DEMONSTRATED OVER THE LAST 37 DAYS IS IF THE 13:19:28 OIL IS OUT OF THE PIPE, WE HAVE NO MEANS TO CONTROL IT WHEN IT 13:19:31 COMES TO THE SURFACE. WE JUST HAVE NO ABILITY TO DO 13:19:34 THIS. WE CAN TRY TO MANAGE IT AND ALL 13:19:35 THAT SO WE'RE BACK NOW TO RELIANCE ON THESE BLOWOUT 13:19:41 DEVICES AND UNTIL SUCH TIME, I MEAN, YOU CAN HAVE ALL OF THESE 13:19:46 PLANS YOU WANT, BUT THE ONLY THING THAT STANDS BETWEEN US AND 13:19:49 A CATASTROPHIC EVENT IS THAT BLOWOUT DEVICE BECAUSE WE NOW 13:19:55 KNOW I DON'T CARE WHAT THEY FILE ABOUT THE SHIPS IN PLACE AND THE 13:19:58 REST OF IT, YOU CAN'T DEAL WITH IT ONCE IT'S IN THE WATER. 13:20:02 SO I THINK -- I JUST HOPE THAT YOU -- THIS IS KIND OF THE 13:20:08 FAILSAFE POINT FOR THE MOMENT UNLESS TECHNOLOGY CHANGES. 13:20:12 I THINK MR. DEFAZIO RAISED A CRITICAL POINT HERE. 13:20:15 THE IDEA OF GOING FORWARD, RELYING ON SHEERS THAT MAY 13:20:21 NOT -- YOU DON'T KNOW ON OTHER EXISTING WELLS WHETHER THEY'RE 13:20:24 SUFFICIENT OR PLACED IN THE RIGHT PLACE. 13:20:27 GENTLEMAN YIELD FOR ONE LAST QUESTION? 13:20:28 YES, I YIELD. WHAT ABOUT THE POSSIBILITY OF 13:20:32 SECONDARY PIPE ALSO GOING IN THE SAME TYPE AS THE PRIMARY PIPE 13:20:38 PUMPING IT OUT? WOULD THAT BE ANOTHER 13:20:39 ALTERNATIVE TO AVOIDING SOMETHING LIKE THIS? 13:20:40 I'M NOT YET A PETROLEUM ENGINEER, CONGRESSMAN. 13:20:44 I SEEM TO BE HEADING THAT WAY, BUT I REALLY CAN'T SPEAK TO 13:20:48 THAT. WE ALL SEEM TO BE AND THAT'S 13:20:50 WHAT'S SCARY. YEAH, RIGHT. 13:20:52 ALL RIGHT. THANK YOU. 13:20:53 GENTLEMAN'S TIME IS EXPIRED. GENTLEMAN FROM MARYLAND. 13:20:56 THANK YOU, MR. CHAIRMAN. MR. DEPUTY SECRETARY, FIRST OF 13:20:59 ALL, THANK YOU FOR BEING HERE AND FOR YOUR SERVICE AND WHAT 13:21:02 CLEARLY MUST BE A VERY, VERY DIFFICULT AND STRESSFUL 13:21:06 SITUATION. YOU KNOW, OFTENTIMES WHEN WE 13:21:08 HAVE THESE KINDS OF EVENTS THE FIRST REACTION, OBVIOUSLY, IS TO 13:21:12 GO AFTER SOMEONE AND FIGURE OUT WHO'S TO BLAME. 13:21:14 IT SEEMS TO ME THE FIRST ISSUE AS YOU HAVE CORRECTLY POINTED 13:21:18 OUT IS FIGURING OUT HOW DO WE STOP THE LEAK? 13:21:21 IN THAT REGARD, ASSUMING TODAY WHAT WE'RE TRYING TO DO TODAY 13:21:25 DOESN'T WORK, THEN WHAT? THERE IS A BACKUP PLAN THAT 13:21:34 SECRETARY ALLUDED TO BRIEFLY THAT -- THAT THE SECRETARY CHU 13:21:40 AND DIRECTORS OF THE NATIONAL LABS HAVE BEEN WORKING ON WITH 13:21:44 BP THAT WOULD CONTAIN ALL OF THE FLOW AND THAT WOULD SWING INTO 13:21:51 ACTION. I'M SURE THAT IF THE TOP KILL 13:21:55 FAILS, THERE WILL BE A LOT MORE DISCUSSION OF THAT BACKUP PLAN. 13:22:00 BUT, AGAIN, I'M PROBABLY NOT THE BEST PERSON TO SPEAK TO THE Ps 13:22:05 AND Qs OF IT. LET ME GO BACK TO A NUMBER OF 13:22:08 OBVIOUSLY THERE'S BEEN A LOT ON THE ISSUE OF THE BLOWOUT. 13:22:13 IT'S MY UNDERSTANDING THAT BACK IN 2001 MMS ISSUED A SAFETY 13:22:18 ALERT RECOMMENDING THAT ALL OF THESE OS -- OCS OPERATORS 13:22:24 INCLUDING A SECONDARY ACTIVATION SYSTEM. 13:22:27 AND IT'S STILL THERE IS NO REGULATION REQUIRING THAT. 13:22:33 CORRECT? THE -- THERE IS A -- THERE IS 13:22:39 A REQUIREMENT FOR REDUNDANCY IN THE MMS REGULATIONS FOR B.O.P.s. 13:22:46 IS THAT WHAT YOU'RE REFERRING TO? 13:22:47 YES. YEAH. 13:22:48 THERE'S A LOT OF CONFUSION ABOUT THIS AND I KNOW THAT MS. 13:22:52 BIRNBAUM IS ON YOUR WITNESS LIST. 13:22:54 I'D RECOMMEND THAT YOU GO THROUGH THAT WITH HER. 13:22:56 OKAY. AND IN TERMS OF THE EXPLORATION 13:23:02 PLANS BEING REQUIRED TO HAVE A BLOWOUT SCENARIO, THAT EXPLAINS 13:23:05 HOW THEY'D RESPOND, WHY HAVE THOSE BEEN IN A SENSE WAIVED? 13:23:12 PRIMARY REASON FOR THE CAT GORE CALL EXCLUSION APPLICATION 13:23:18 FOR EXPLORATION PLANS IS THAT THE ONLY 30 DAYS SAY LOUED UNDER 13:23:23 THE OUTER CONTINENTAL SHELF LANDS ACT SO THERE'S NO WAY TO 13:23:27 DO A CERTAINLY A COMPLETE ENVIRONMENTAL ANALYSIS AND IT'S 13:23:31 SOMETHING THE ADMINISTRATION HAS REQUESTED THAT CONGRESS ADDRESS 13:23:34 SO THAT'S THE PRIMARY REASON. AND, AS I MENTIONED BEFORE, IN 13:23:41 RESPONSE TO CONGRESSMAN HEINRICH'S QUESTION, WE ARE 13:23:43 DOING A THOROUGH TOP TO BOTTOM REVIEW OF THE NATIONAL 13:23:45 ENVIRONMENTAL POLICY ACT'S APPLICATION UNDER THE OUTER 13:23:50 CONTINENTAL SHELF ACT. MR. BOURN RAISED THE 13:23:55 DIFFERENCE BETWEEN THE DEEP WATER WELLS AND NON-DEEP WATER 13:23:59 WELLS. I GATHER THERE ISN'T A 13:24:01 DISTINCTION IN THE TAX ASSOCIATED WITH THE LIABILITY 13:24:03 FUND AS IT RELATES -- MAKING A DISTINCTION BETWEEN DEEP WATER 13:24:07 AND NON-DEEP WATER. YOU THINK THERE SHOULD BE? 13:24:13 I HAVE NOT THOUGHT ABOUT THAT QUESTION. 13:24:17 OKAY. ONE OF THE AREAS -- SWITCHING TO 13:24:23 MORE LOCAL AREA. ONE OF THE AREAS THEY'RE TALKING 13:24:26 ABOUT DRILLING IS OFF THE COAST OF VIRGINIA, AND OBVIOUSLY, 13:24:30 CERTAIN AREAS HAVE BEEN DETERMINED TO BE TOO 13:24:34 ENVIRONMENTALLY SENSITIVE. CAN YOU GIVE ME AN IDEA OF WHY 13:24:38 AN AREA THAT'S VERY, VERY CLOSE TO THE CHESAPEAKE BAY WOULDN'T 13:24:45 QUALIFY SIMILARLY TO THE OTHER AREAS DETERMINED TO BE 13:24:51 ENVIRONMENTALLY SENSITIVE? IT MIGHT. 13:24:55 THE DECISION WAS TO GO FORWARD TO SEE WHETHER A LEASE SALE 13:24:58 SHOULD GO FORWARD SO THAT ENVIRONMENTAL IMPACT ANALYSIS 13:25:00 HAS NOT BEEN DONE. OKAY. 13:25:02 THERE ARE OTHER ISSUES RELATED TO THAT SPECIFIC LOCATION AS YOU 13:25:05 MAY KNOW. YES. 13:25:06 RELATED TO THE NAVY, RELATED TO NASA. 13:25:09 RIGHT. WHAT KIND OF COORDINATION IS 13:25:11 DONE WHEN THAT DECISION IS MADE TO OPEN UP AN AREA LIKE THAT 13:25:15 WITH OTHER AGENCIES AND ENTITIES THAT MAY BE AFFECTED BY IT? 13:25:18 WE WORK VERY CLOSELY WITH THE DEPARTMENT OF DEFENSE. 13:25:21 IN FACT, THE DEPARTMENT OF DEFENSE HAS RECENTLY GONE PUBLIC 13:25:25 WITH AN EVALUATION OF EXPRESSING CONCERN ABOUT MOST OF THAT 13:25:30 PROPOSED LEASE SALE AREA AS BEING NEEDED FOR TRAINING 13:25:34 PURPOSES. I KNOW. 13:25:36 BUT WHY NOT DO THAT BEFORE MAKING THE DECISION TO EXPLORE 13:25:39 OPENING THAT UP? AGAIN, THE DECISION IS 13:25:42 CONTINGENT UPON BRINGING IN ALL SORTS OF EVIDENCE. 13:25:44 THE NEXT STEP WOULD BE A SCOPING PROCESS, PARTICULARLY TO GET 13:25:48 THIS KIND OF INFORMATION. THE VIRGINIA LEASE SALE WAS PUT 13:25:52 ON THE EXISTING FIVE-YEAR PLAN BY THE PREVIOUS ADMINISTRATION. 13:25:56 IT'S SOMETHING THAT WE HAD THAT WAS ALREADY PRESENTED TO US. 13:25:59 OKAY. THANK YOU. 13:26:00 I YIELD BACK. GENTLEMAN FROM NEW JERSEY. 13:26:05 THANK YOU, MR. CHAIRMAN. AND MR. SECRETARY, IN ALL 13:26:11 FAIRNESS, I SHOULD PROBABLY PREFACE MY QUESTIONS BY SAYING 13:26:13 THAT I PERSONALLY WAS VERY DISAPPOINTED IN THE 13:26:20 ADMINISTRATION'S DECISION TO EXPAND LEASING TO THE ATLANTIC 13:26:23 AND, YOU KNOW, BEYOND WHAT HAD BEEN THE AREA PRIOR TO WHEN WE 13:26:30 HAD A MORATORIUM IN DRILLING. WE HAD PRESIDENTS THROUGH 13:26:34 EXECUTIVE ORDER OR THROUGH THE APPROPRIATIONS PROCESS THAT THEY 13:26:38 SUPPORTED A MORATORIUM ON ANY EXPANDED LEASING AND I WAS VERY 13:26:42 DISAPPOINTED TO SEE THAT THIS ADMINISTRATION, YOU KNOW, BROKE 13:26:45 THAT AND STARTED EXPANDING THE LEASING TO INCLUDE PARTS OF THE 13:26:48 ATLANTIC AND OTHER AREAS THAT WERE DEEP WATER AND I SUSPECTED 13:26:53 THAT WE WOULD HAVE ANOTHER SPILL, CATASTROPHIC SPILL LIKE 13:26:57 THIS BECAUSE YOU'RE GOING IN THE DEEP WATER WHERE THE 13:27:00 TECHNOLOGY'S NOT THERE TO PREVENT A SPILL OR CAP A SPILL 13:27:03 AFTER IT OCCURS AND MY HOPE IS THAT THE ADMINISTRATION HAS 13:27:06 LEARNED ITS LESSON AFTER THIS AND WOULD GO BACK TO THE 13:27:11 MORATORIUM WE HAD BEFORE. YOU KNOW, EITHER THE PRESIDENT 13:27:13 ISSUES AN EXECUTIVE ORDER THAT HAD BEEN IN UNDER EFFECT UNDER 13:27:17 CLINTON AND BUSH AND OTHERS OR WE ADOPT THROUGH THE INTERIOR 13:27:21 APPROPRIATIONS PROCESS ANOTHER MORATORIUM AS WE HAVE HAD IN THE 13:27:24 PAST. I GUESS MY QUESTIONS RELATE TO 13:27:28 THAT. I HAVEN'T SEEN ANY INDICATION 13:27:30 THAT THE PRESIDENT IS WILLING TO CHANGE HIS POSITION. 13:27:32 IN OTHER WORDS, HE'S SAYING HE'S SETTING UP THIS COMMISSION. 13:27:35 THERE'S GOING TO BE INVEST. BUT ON SEVERAL OCCASIONS SINCE 13:27:38 THE SPILL HE'S MADE IT QUITE CLEAR I THINK THAT HIS INTENTION 13:27:42 IS WHEN THIS IS OVER AND WHEN THE SO-CALLED TECHNOLOGY IS 13:27:45 AVAILABLE, THAT WE WILL NOW, YOU KNOW, EXPAND AND HE'S NOT 13:27:50 RECONSIDERING. CAN I JUST ASK YOU THREE 13:27:52 QUESTIONS RELATIVE TO THAT, THOUGH? 13:27:54 IS THERE ANY REASON TO BELIEVE THAT THE PRESIDENT'S WILLING TO 13:27:56 SIGN AN EXECUTIVE ORDER THAT WOULD PROHIBIT ANY FURTHER LEASE 13:28:02 SALES, EISs OR EXPLORATIONS IN AREAS NOW OPEN TO LEASING 13:28:07 SIMILAR TO WHAT WAS IN EFFECT UNDER THE FIRST BUSH, CLINTON 13:28:10 AND MOST OF THE TIME UNDER THE SECOND PRESIDENT BUSH? 13:28:15 ANY REASON TO BELIEVE HE WOULD SIGN THAT EXECUTIVE ORDER? 13:28:19 I CERTAINLY CAN'T SPEAK TO THAT, CONGRESSMAN. 13:28:21 THE SPTH FOCUSED ENTIRELY AS ARE WE ON DEALING WITH THE CURRENT 13:28:25 UNFOLDING CRISIS. IS THERE ANY REASON TO 13:28:28 BELIEVE HE WOULD SUPPORT A LEGISLATIVE MORATORIUM IN THE 13:28:32 INTERIOR APPROPRIATIONS BILL SIMILAR TO WHAT WE HAD FOR 20 13:28:35 YEARS? I CAN'T SPEAK TO THAT AT THIS 13:28:37 POINT. OKAY. 13:28:38 WE ARE FOCUSED ON THE UNFOLDING DISASTER THAT'S -- 13:28:41 MIDDLE MANAGEMENT IN ANY WAY CONSIDERING REVISITING THE 13:28:48 FIVE-YEAR PLAN WHICH CONTINUES TO OPEN UP THE ATLANTIC COAST 13:28:52 AND OTHER POTENTIALLY ENVIRONMENTAL DEVASTATION AREAS? 13:28:57 ANY SUGGESTION TO RECONSIDER THE DECISION TO EXPAND PUSUANT TO 13:29:04 YOUR FIVE-YEAR PLAN? THAT DECISION WAS A DRAFTD. 13:29:06 THERE IS NO NEW FIVE-YEAR PLAN IN EFFECT. 13:29:09 IT WILL NOT GO INTO EFFECT UNTIL 2012. 13:29:13 THE DECISION THAT WAS MADE WAS TO BEGIN AN EVALUATION OF 13:29:16 POTENTIAL ADDITIONS TO THE OUTER CONTINENTAL SHELF. 13:29:19 IS THERE ANY SUGGESTION THAT MIGHT BE RECONSIDERED IN LIGHT 13:29:22 OF THIS SPILL? WE ARE PUTTING ALL OF OUR 13:29:26 ATTENTION ON THE SPILL RIGHT NOW, CONGRESSMAN. 13:29:28 WHAT ABOUT THE -- SO I MEAN, I TAKE IT SINCE YOU'RE NOT 13:29:34 RESPONDING, I SHOULD ASSUME THAT THERE REALLY AREN'T ANY CHANGE 13:29:37 THAT IS ARE BEING SUGGESTED -- I DON'T THINK THAT'S FAIR TO 13:29:45 MAKE ANY ASSUMPTION BASED ON MY R 13:29:47 RESPONSE. I LISTENED TO SECRETARY'S 13:29:49 REMARKS AND SORT OF TRYING TO SEPARATE HIMSELF FROM THE 13:29:52 PREVIOUS POLICIES OF MID LEVEL MANAGEMENT AND SEEMS TO ME IN 13:29:58 MANY WAYS YOU ARE CONTINUING THEM. 13:30:01 AS LONG AS WE SAY WE'LL CONTINUE TO OPEN UP THE AREAS TO MORE 13:30:05 LEASING, MORE EISs, YOU KNOW, THAT ESSENTIALLY CONTINUES THE 13:30:10 POLICY AND -- OF THE PREVIOUS ADMINISTRATION. 13:30:13 AND THAT'S VERY DISAPPOINTING TO ME. 13:30:15 I WOULD JUST MAKE A COMMENT HERE THAT I THINK AS THE 13:30:21 SECRETARY POINTED OUT, THE APPROACH THAT WE HAVE TAKEN IS A 13:30:26 VERY CAUTIOUS APPROACH. WERE ASKED, REQUIRED BY COURT 13:30:35 ACTION TO RE-REVIEW DECISIONS THAT THE PRIOR ADMINISTRATION 13:30:44 MADE. AS A RESULT OF THAT OPPORTUNITY, 13:30:46 WE CANCELED FIVE LEASE SALES SCHEDULED FOR THE CHUCKCHEE AND 13:30:55 BIOFORD SEAS AND IN FACT, THE PRESIDENT WITHDREW BRISTOL BABY 13:31:01 PRESIDENTIAL PROCLAMATION. OUR APPROACH HERE HAS BEEN AND 13:31:05 WILL CONTINUE TO BE A PRUDENT APPROACH. 13:31:07 I WOULD JUST ASK THAT YOU REVISIT THE APPROACH. 13:31:10 WE DON'T REALLY WANT TO SEE ANY DRILLING IN THE ATLANTIC AND WE 13:31:13 THINK THIS OIL SPILL SHOWS THAT IT CAN'T BE DONE WITHOUT A 13:31:18 CATASTROPHIC SPILL. THANK YOU. 13:31:19 THANK YOU. GENTLEMAN'S TIME EXPIRED. 13:31:21 GENTLELADY OF CALIFORNIA. THANK YOU, MR. CHAIR. 13:31:26 MR. HAYS, SECRETARY HAYS, HOW ARE YOU, SIR? 13:31:30 I HAVE SEVERAL QUESTIONS AND WILL RATTLE THEM IN AND MAY NOT 13:31:34 HAVE TIME TO GET THEM ANSWERED. THIS IS THE SECOND HEARING I 13:31:37 HAVE ATTENDED. ONE WAS IN TRANSPORTATION WITH 13:31:40 REGARD TO THE SPILL AND THERE'S STILL SOME OF THE QUESTIONS THAT 13:31:47 REMAIN ARE, HOW MANY DEEP WELLS DOES BP HAVE AND HOW MANY DO 13:31:51 OTHER OIL COMPANIES HAVE IN THE SAME DEPTH AS THIS PARTICULAR 13:32:00 ONE? DOES ANY OTHER COMPANY HAVE THE 13:32:03 SAME RECORD OR I WOULD SAY THE WANTON DISREGARD FOR THE 13:32:06 GOVERNMENT REGULATIONS AND THE WORKERS' SAFETY? 13:32:11 BECAUSE THIS IS NOT ONLY HURTING OUR COUNTRY, IT IS ALSO GIVING 13:32:14 THE INDUSTRY A BAD NAME. THE -- ONE OF THE 13:32:18 RECOMMENDATIONS THAT'S COME TO MY ATTENTION IS THAT MAYBE WE 13:32:23 MIGHT HAVE CONGRESS PASS A BILL TO FORCE BP TO DIVEST ALL OF THE 13:32:28 U.S. INTERESTS WHICH WOULD SEND A STRONG MESSAGE TO ALL OF THE 13:32:32 OTHER COMPANIES THAT ARE CONSIDERING TRYING TO GET AWAY 13:32:34 WITH THAT KIND OF AN ACTION. SECONDLY, DO WE HAVE ADEQUATE 13:32:43 BASELINE INFORMATION OR MAPS OF THE SHORELINES, THE BARRIER 13:32:46 ISLANDS AND THE WETLANDS TO BE ABLE TO QUANTIFY THE IMPACT THE 13:32:51 OIL SPILL IS HAVING ON THESE VALUABLE RESOURCES? 13:32:55 IF NOT -- I KNOW YOU ARE UTILIZING RESOURCES FROM THE BUT 13:33:01 OWE AND ASSESS THE DAMAGES THAT BP CAN BE HELD ACCOUNTABLE FOR. 13:33:05 AND REFERRING TO THE EXXON VALDEZ, THAT WAS 41 YEARS AGO, I 13:33:10 BELIEVE. AND THEY'RE STILL HAVING 13:33:13 IMPACTS. I KNOW BP PROFESSES AT LEAST IN 13:33:16 THE LAST HEARING THAT THEY WILL BE RESPONSIBLE FOR PAYING ANY 13:33:19 AND ALL CLAIMS. WELL, THAT MAY BE WELL AND GOOD, 13:33:24 BUT CAN THEY REPLACE LIVES? HOW ABOUT THE PEOPLE THAT WERE 13:33:28 KILLED? WHAT ABOUT IN THE THIRD ISSUE IS 13:33:31 MENTAL HEALTH SERVICES. THAT SOME OF THE FAMILIES AND 13:33:34 SOME OF THE PEOPLE THAT ARE BEING AFFECTED BY THE SPILL IN 13:33:37 THAT WHOLE AREA WILL HAVE NEED OF BECAUSE THERE WERE SOME 13:33:44 SUICIDES IF I REMEMBER CORRECTLY OUT OF SOME OF THE OTHER 13:33:47 ACCIDENTS THAT HAPPENED. AND THEN ARE YOU CONSIDERING ANY 13:33:50 GUIDELINES, ADDITION TO YOUR GUIDELINES FOR EMPLOYEES IN 13:33:55 ENTERING OF SUCH A STATEMENT AS TO THERE WILL BE FEDERAL 13:33:59 PROSECUTION FOR THOSE THAT HAVE BEEN PLAYING PATSY WITH THE 13:34:03 INDUSTRIES? AND MY UNDERSTANDING, OF COURSE, 13:34:05 IS THAT WE ALSO HAVE THAT SAME KIND OF ISSUE WITH WATER. 13:34:11 NOW YOU CAN REPLY. THANK YOU, CONGRESSWOMAN. 13:34:16 AND IT'S A PLEASURE TO WORK WITH YOU ON WATER ISSUES. 13:34:19 THIS IS A DIFFERENT KIND OF WATER ISSUE THAN WE HAVE BEEN 13:34:22 WORKING ON. JUST TO TAKE YOUR QUESTIONS IN 13:34:27 ORDER. I WILL DEFER TO LIZ BIRNBAUM IN 13:34:31 TERMS OF THE BP WELLS IN TERMS 13:34:35 OF THE NUMBERS. I WILL SAY THAT THERE ARE IN THE 13:34:37 GULF OF MEXICO 1,988 DEEP WATER WELLS CURRENTLY AND 35,000 13:34:46 SHALLOW WATER WELLS SO THIS IS A -- THERE'S BEEN A SIGNIFICANT 13:34:51 AMOUNT OF DRILLING ACTIVITY HERE OVER THE LAST SEVERAL YEARS. 13:34:55 IN TERMS OF YOUR SECOND QUESTION, DO WE HAVE GOOD MAPS? 13:34:59 ARE WE DOING A CAREFUL JOB OF EVALUATING THE POTENTIAL IMPACTS 13:35:03 ON COASTAL RESOURCES? THAT'S ACTUALLY BEEN A VERY 13:35:08 IMPORTANT INITIATIVE WE HAVE HAD IN THE RECENT WEEKS. 13:35:12 WE HAVE HAD NATIONAL PARK SERVICE, FISH AND WILDLIFE 13:35:15 SERVICE, BLM AND OTHER, NOAA, EPA FOLKS, BUT PARTICULARLY THE 13:35:25 RESOURCE AGENCY FOLKS DOING A BASELINE ANALYSIS BEFORE THE OIL 13:35:27 HITS SO THAT WE'LL BE ABLE TO QUANTIFY THE DAMAGE AND THE FACT 13:35:34 THAT THE SPILL STAYED OFFSHORE FOR THE FIRST COUPLE OF WEEKS 13:35:37 PROVIDE US WITH THAT OPPORTUNITY TO DO THAT. 13:35:40 OKAY. MR. HAYS, BEFORE YOU GO ON, YOU 13:35:43 DID NOT FULLY ANSWER THE NUMBER OF QUESTION. 13:35:46 BP WELLS, DEEP SEA WELLS. I'LL HAVE TO DEFER TO -- 13:35:50 OKAY. -- THE DIRECTOR OF M MS. 13:35:54 I DO NOT KNOW THE ANSWER TO THAT, UNFORTUNATELY. 13:35:57 THANK YOU. IN TERMS OF MENTAL HEALTH 13:36:01 ASSISTANCE, I ASSUME THAT THAT IS AVAILABLE AND SHOULD BE 13:36:06 AVAILABLE. AND WILL BE HAPPY TO PASS ALONG 13:36:08 THAT CONCERN TO THAD ALLEN WHO RUNS THE NATIONAL INCIDENT 13:36:14 COMMAND. AND FINALLY, HAVE WE PROVIDED 13:36:19 GUIDELINES TO EMPLOYEES, MADE IT CLEAR THAT EMPLOYEES WHO HAVE 13:36:25 ETHICAL ISSUES WILL BE PROSECUTED? 13:36:27 THE ANSWER IS, YES. IN FACT, JUST YESTERDAY MORNING 13:36:31 IN CONNECTION WITH THE RELEASE OF THE INSPECTOR GENERAL'S 13:36:35 REPORT THE SECRETARY MADE CLEAR THAT IF THERE WERE VIOLATIONS OF 13:36:40 ETHICAL CONCERNS, FOLKS WOULD BE FIRED, PROSECUTED, WHATEVER WAS 13:36:44 APPROPRIATE. AND IN FACT, HE IMMEDIATELY PUT 13:36:47 THE INDIVIDUALS IDENTIFIED IN THE INSPECTOR GENERAL'S REPORT 13:36:50 ON ADMINISTRATIVE LEAVE PRECISELY FOR THAT PURPOSE. 13:36:53 THAT FOLLOWS UP ON THE SAME APPROACH THAT HE TOOK UPON 13:36:59 COMING INTO OFFICE IN 2009 IN CONNECTION WITH THE LAKEWOOD, 13:37:03 COLORADO, CONCERN THAT IS HAD BEEN RAISED BY THE INSPECTOR 13:37:06 GENERAL. RIGHT. THAT -- AND NOT ONLY IN THIS 13:37:09 PARTICULAR AGENCY BUT ALL THE OTHER AGENCIES AND DEPARTMENT OF 13:37:12 INTERIOR -- YES. 13:37:14 -- SIMPLY BECAUSE THIS COULD HAPPEN AGAIN AND IT'S PROBABLE. 13:37:18 BUREAUCRACY MAINTAINS. RIGHT. 13:37:19 AND UNLESS WE TAKE STEPS TO ENSURE THAT THEY'RE AWARE THAT 13:37:26 THEY ARE DILLY DALLYING THEY WILL BE ALL RESPONSIBLE TO THE 13:37:29 FULLEST EXTENT OF THE LAW. YES. 13:37:31 WE HAVE -- WE HAVE REALLY WORKED HARD TO PROMOTE A NEW 13:37:38 SENSITIVITY TO ETHICS IN THE DEPARTMENT. 13:37:40 IT'S ONE OF THE SECRETARY'S HIGHEST PRIORITIES AND WILL 13:37:44 REMAIN VIGILANT THROUGHOUT THE DEPARTMENT, CONGRESSWOMAN. 13:37:47 NOT JUST AT MMS. THANK YOU VERY MUCH. 13:37:51 THANK YOU, MR. CHAIR. WE UNDERSTAND YOU HAVE A 13:37:55 MEETING AT THE WHITE HOUSE IN 20 MINUTES AND WILL ALLOW YOU TO 13:37:59 LEAVE AT THIS POINT. THANK YOU VERY MUCH. 13:38:02 APPRECIATE THE CHANCE TO BE WITH YOU AND I'M IMPRESSED WITH YOUR 13:38:06 ABILITY TO AVOID LUNCH AND BATHROOM BREAKS AND YOUR 13:38:11 COMMITMENT TO PUBLIC SERVICE IN ALL THAT REGARD. 13:38:12 I'M THE ONLY ONE THAT'S BEEN ABLE TO LAST. 13:38:16 MR. DEPUTY SECRETARY, I JOIN WITH MANY OF MY COLLEAGUES THAT 13:38:19 HAVE ALREADY EXPRESSED DEEP APPRECIATION TO YOU FOR THE 13:38:22 TREMENDOUS NUMBER OF HOURS THAT YOU HAVE SPENT ON THIS TRAGEDY. 13:38:27 TREMENDOUS SACRIFICE TO YOURSELF, TO YOUR FAMILY AND WE 13:38:30 REALLY APPRECIATE IT. THANK YOU FOR YOUR SERVICE. 13:38:36 OUR NEXT WITNESS IS MISS MARY L. KINDLE, THE ACTING INSPECTOR 13:38:45 GENERAL, U.S. DEPARTMENT OF INTERIOR. 13:38:47 WHO HAS BEEN WITH US ALL MORNING. 13:38:51 AND WE DO APPRECIATE YOUR PATIENCE. 13:38:55 AND YOU MAY PROCEED AS YOU DESIRE. 13:39:03 THANK YOU, MR. CHAIRMAN. MR. CHAIRMAN, AND MEMBERS OF THE 13:39:07 COMMITTEE, I THANK YOU FOR THE OPPORTUNITY TO TESTIFY TODAY 13:39:11 ABOUT A RECENT OFFICE OF INSPECTOR GENERAL REPORT THAT 13:39:14 ADDRESSES A NUMBER OF ISSUES CONCERNING THE MINERALS 13:39:17 MANAGEMENT SERVICE AT THE DEPARTMENT OF INTERIOR. 13:39:20 AS YOU WELL KNOW, WE HAVE PREVIOUSLY IDENTIFIED PROGRAM 13:39:26 ATTIC WEAKNESSES AND CONDUCT WITHIN MMS, THE LATTER OF WHICH 13:39:33 RECEIVED CONSIDERABLE COVERAGE IN THE PRESS AND SCRUTINY BY 13:39:34 THIS COMMITTEE AS WELL AS OTHERS. 13:39:36 IN THE REPORT RELEASED THIS WEEK, WE FOUND MORE OF THE SAME, 13:39:40 ALTHOUGH THE MISCONDUCT IS DATED, ARGUABLY LESS EGREGIOUS 13:39:46 AND CONSIDERABLY LESS SALACIOUS THAN THAT IN OUR REPORT ISSUED 13:39:50 IN 2008 ABOUT MISCONDUCT IN THE ROYALTY IN KIND PROGRAM. 13:39:54 AS A RESULT, WE ISSUED OUR MOST RECENT INVESTIGATIVE REPORT 13:39:58 ACCORDING TO OUR ROUTINE PROTOCOL PROVIDING A COPY TO THE 13:40:01 DEPARTMENT AND REQUESTING A FORMAL RESPONSE IN 90 DAYS. 13:40:05 AT WHICH POINT WE WOULD PROVIDE COPIES OF THE REPORT TO 13:40:09 COGNIZANT COMMITTEES AND POST IT TO OUR WEBSITE. 13:40:11 GIVEN THE EVENTS OF APRIL 20th OF THIS YEAR, HOWEVER, THIS 13:40:16 REPORT HAD BECOME ANYTHING BUT ROUTINE. 13:40:19 WE EXPEDITED ITS RELEASE. WHILE I NEITHER CONDONE OR 13:40:23 EXCUSE THE BEHAVIOR CHRONICLED IN THIS, OUR MOST RECENT REPORT 13:40:28 ON MMS, FOR THE MOST PART THE IMPROPER CONDUCT OF THE 13:40:31 EMPLOYEES AT THE LATE CHARLES DISTRICT OFFICE PROCEEDED THE 13:40:35 TERMINATION OF THE REGIONAL SUPERVISOR IN 2007 FOR HIS GIFT 13:40:41 ACCEPTANCE. AND AS OUR REPORT INDICATES, 13:40:43 THIS BEHAVIOR APPEARS OF THE DRASTICALLY DECLINED AS SUCH, 13:40:49 I'M MORE CONCERNED ABOUT THE ENVIRONMENT IN WHICH THESE 13:40:52 INSPECTORS OPERATE AND THE EASE WITH WHICH THEY MOVE BETWEEN 13:40:55 INDUSTRY AND GOVERNMENT. I AM ALSO CONCERNED ABOUT THE 13:40:59 CONDUCT OF INDUSTRY REPRESENTATIVES, SOMETHING WE 13:41:02 ALSO IDENTIFIED IN OUR 2008 REPORT. 13:41:06 THAT THEY SHOULD THINK IT PERMISSIBLE TO FRATER NIZ AND 13:41:09 PROVIDE FEDERAL GOVERNMENT EMPLOYEES WITH GIFTS AFTER ALL 13:41:12 THE MEDIA COVERAGE OF THIS PRACTICE IS HARD TO FATHOM BUT 13:41:17 MAY BE INFORMED BY THE ENVIRONMENT, AS WELL. 13:41:20 WHILE NOT INCLUDED IN OUR REPORT, WE DISCOVERED THAT THE 13:41:24 INDIVIDUALS INVOLVED IN THE FRATERIZATION AND GIFT EXCHANGE 13:41:28 BOTH GOVERNMENT AND INDUSTRY, HAVE OFTEN KNOWN ONE ANOTHER 13:41:32 SINCE CHILDHOOD. THEIR RELATIONSHIPS WERE FORMED 13:41:35 WELL BEFORE THEY JOINED EITHER INDUSTRY OR GOVERNMENT. 13:41:40 MMS RELIES ON THE ABILITY TO HIRE THOSE WITH INDUSTRY 13:41:46 EXPERIENCE AND IN MY EXPERIENCE, THE PAST MONTH OR SO, THE MMS 13:41:51 EMPLOYEES THAT I HAVE MET WHO HAVE COME FROM INDUSTRY ARE 13:41:54 HIGHLY PROFESSIONAL, EXTREMELY KNOWLEDGEABLE AND PASSIONATE 13:41:58 ABOUT THE JOB THEY DO. AS YOU KNOW, ALL OF THE OIG 13:42:03 REPORTS RELATED TO MMS HAVE MADE HEADLINES, SOME MORE SENSATIONAL 13:42:08 THAN OTHERS. THIS REPORT HAS DONE THE SAME. 13:42:12 HEADLINES, HOWEVER, ARE NOT OUR GOAL. 13:42:15 RATHER, OUR GOAL HAS ALWAYS BEEN AND IS TODAY TO EFFECT POSITIVE 13:42:20 CHANGE. TO THIS END, I MUST CREDIT THE 13:42:23 DEPARTMENT FOR THE SERIOUS WITH WHICH IT HAS TAKEN THE FINDINGS 13:42:27 CONTAINED THIS REPORT AND FOR TAKING SWIFT REACTION IN AND 13:42:34 TO CHALLENGES INHERENT TO THE DILEMMA. 13:42:37 AS YOU ALSO KNOW, SECRETARY SALAZAR HAS ANNOUNCED THAT MMS 13:42:41 WILL BE SPLIT INTO TWO DISTINCT BUREAUS UNDER THE ASIS ABOUT THE 13:42:47 SECRETARY AND A THIRD INDEPENDENT OFFICE FOR THE 13:42:49 COLLECTION OF ROYALTIES UNDER THE ASSISTANT SECRETARY FOR 13:42:52 POLICY MANAGEMENT AND BUDGET. AS THIS REORGANIZATION 13:42:57 PROGRESSES, I AM HOPEFUL THAT THE DEPARTMENT WILL INCORPORATE 13:43:00 OUR RECOMMENDATIONS FOR PROGRAM ATTIC IMPROVEMENTS. 13:43:04 THESE MUST, HOWEVER, BE BOLSTERED WITH AN EMPHASIS ON 13:43:08 ETHICS TO INCLUDE CONTROLS AND STRONG OVERSIGHT. 13:43:11 WE ARE PLEASED WITH SECRETARY SALAZAR'S CONTINUED EMPHASIS ON 13:43:16 ETHICS AND MMS' PRELIMINARY RESPONSE TO THE MOST RECENT 13:43:21 REPORT INDICATING IT WILL AMONG OTHER THINGS ENHANCE ETHICS 13:43:24 TRAININGS SPECIFICALLY FOR ITS INSPECTORS AND ESTABLISH 13:43:28 CONTROLS LIKE A TWO-YEAR WAITING PERIOD TO FURTHER ENSURE ETHICAL 13:43:33 COMPLIANCE. THE FINAL ELEMENT IS STRONG 13:43:36 OVERSIGHT. IN THE FALL OF 2008, INSPECK IRV 13:43:46 DEVANI TESTIFYING BEFORE THIS COMMITTEE NOW CALLED A ROYALTY 13:43:49 INITIATIVES GROUP. SINCE THAT TIME, WE HAVE ALSO 13:43:54 ESTABLISHED AN INVESTIGATION GAITIVE UNIT DEDICATED TO ENERGY 13:43:57 ISSUES AND HAVE EXPANDED OUR OVERSIGHT COVERAGE TO THE ENERGY 13:44:00 AND MINERALS PROGRAM AT THE BUREAU OF LAND MANAGEMENT. 13:44:04 UNTIL RECENTLY, THESE TWO OFFICES HAD BEEN DEDICATED TO 13:44:07 THE ROYALTIES RELATED OVERSIGHT AND IMPROVEMENTS. 13:44:11 SINCE THE EVENTS OF APRIL 20th, IT'S BECOME INCREASINGLY CLEAR 13:44:16 WE MUST EXPAND THEIR SCOPE TO PROVIDING OVERSIGHT OF THE 13:44:20 OPERATIONAL, ENVIRONMENTAL, SAFETY ICKES ENSPEX AND 13:44:25 ENFORCEMENT ASPECTS OF ENERGY PRODUCTION ON OUTER LANDS AND 13:44:29 THE INTERCONTINENTAL SHELF. WE HAVE BEGUN AN EFFORT TO 13:44:33 ADDRESS THE ISSUES AS QUICKLY AND THOROUGHLY AS POSSIBLE, 13:44:36 INCLUDING AN INQUIRY INTO WHETHER OR NOT THE ETHICS ISSUES 13:44:39 IN MMS HAVE, IN FACT, CEASED. WE ARE ALSO CONDUCTING AN 13:44:45 INVESTIGATION INTO THE ACTIONS OF MMS OFFICIALS CONCERNING THE 13:44:50 APPROVAL AND INSPECTION OF THE OPERATIONS ON DEEPWATER HORIZON. 13:44:55 BEYOND THESE EFFORTS, WHICH ARE CLEARLY SPURRED BY THE IMMEDIATE 13:44:59 URGENCY OF THE MATTER AT HAND, WE WILL FOCUS ON BUILDING OUR 13:45:03 OVERSIGHT CAPACITY BEYOND ROYALTIES INTO THE AREAS OF 13:45:07 SAFETY AND OVERSIGHT OF DRILLING OPERATIONS, BOTH OFF AND 13:45:12 ONSHORE. THIS CONCLUDES MY PREPARED 13:45:14 TESTIMONY TODAY. I WOULD BE HAPPY TO ANSWER ANY 13:45:16 QUESTIONS. THANK YOU VERY MUCH FOR YOUR 13:45:24 TESTIMONY. AND, THE WORK, OBVIOUSLY, BY 13:45:29 THIS OFFICE AND CERTAINLY THE TESTIMONY EARLY ON IN THE 13:45:35 INVESTIGATION'S DONE I THINK POINTED OUT ALL OF THE PROBLEMS 13:45:38 WE HAVE DISCUSSED HERE TODAY. AND I THINK THERE, OBVIOUSLY, 13:45:43 ARE IMPORTANT AND I APPRECIATE YOUR TELLING THE COMMITTEE THAT 13:45:46 YOU BELIEVE THAT THERE HAS BEEN A VERY SERIOUS RESPONSE BY THE 13:45:53 SECRETARY AND THE ASSISTANT SECRETARY AND THE DIRECTOR OF 13:45:57 MMS WITH REGARD TO THESE BECAUSE I KNOW THAT'S HOW THIS COMMITTEE 13:46:00 AND CERTAINLY THE CHAIRMAN THAT'S LED THE WAY ON THESE 13:46:05 INVESTIGATIONS -- WE TAKE THIS VERY, VERY SERIOUSLY. 13:46:07 IT'S TAXPAYER MONEYS. IT'S THE ENVIRONMENT. 13:46:10 IT'S A LOT OF VERY SERIOUS ISSUES BUT I WOULD LIKE TO MOVE, 13:46:13 IF I CAN, ON YOUR LAST PAGE. I'M CHAIR OF EDUCATION AND LABOR 13:46:21 COMMITTEE AND DEAL WITH WORKER SAFETY AND THE CHAIRMAN AND 13:46:24 MYSELF JUST RETURNED FROM A HEARING ON THE COAL MINE SAFETY 13:46:27 AND THE ACCIDENT THAT TOOK PLACE AT THE BIG BRANCH MINE. 13:46:32 AND I KNOW -- APPARENTLY YOU ARE NOW GOING TO BE PART OF A 13:46:35 COMMITTEE THAT'S GOING TO BE REVIEWING SAFETY. 13:46:38 IS THAT CORRECT? YES. 13:46:39 IT'S THE -- ARE WE TALKING ABOUT SAFETY 13:46:41 IN TERMS OF THE RIGS AND THE ENVIRONMENT OR SAFETY WITH THE 13:46:44 TRAGIC LOSS OF LIFE OF THE 11 WORKERS? 13:46:48 IT COVERS BOTH. IT WILL COVER BOTH? 13:46:51 YES. BECAUSE I THINK -- YOU KNOW, 13:46:54 THIS IS A VERY HAZARDOUS INDUSTRY. 13:46:57 AS WE SEE, WHEN THINGS GO WRONG, THEY CAN GO WRONG IN A VERY BIG 13:47:01 WAY AND THAT'S NOT TO SAY IT HAS, YOU KNOW, I THINK THERE'S 13:47:05 BEEN A GREAT REDUCTION OR APPEARS TO BE A SUBSTANTIAL 13:47:08 REDUCTION IN INJURIES AND THE REST OF IT. 13:47:10 WE'LL FIND OUT THAT BUT WE HAVE A NUMBER OF INDUSTRIES WHERE 13:47:13 THAT DOESN'T TELL YOU WHAT CAN HAPPEN WHEN THINGS GO WRONG. 13:47:16 AND THERE ARE PROCESSES IN PLACE IN OTHER AREAS, NOT BECAUSE -- 13:47:21 NOT IN THE MINERAL MANAGEMENT SERVICE AT THE TIME BUT WHERE 13:47:25 WE, YOU KNOW, WE CHANGED THE BURDEN OF PROOF WHEN YOU'RE 13:47:27 ENGAGED IN ACTIVITIES OR CHANGES WITHIN THE CHEMICAL INDUSTRY AND 13:47:30 OTHER PLACES IF YOU'RE MOVING AROUND. 13:47:32 IN THIS CASE, THEY WERE GOING TO ENGAGE IN CAPPING THIS WELL, I 13:47:39 BELIEVE, THE EXPLORATION WAS DONE. 13:47:40 YOU GET THIS RIG OFF AND BRING IN A PRODUCTION FACILITY 13:47:44 SOMETIME IN THE FUTURE. AND I DON'T KNOW BUT I REALLY 13:47:46 WOULD BE INTERESTED IN KNOWING WHETHER THEN THERE'S A CHECKLIST 13:47:50 THAT PEOPLE GO THROUGH ABOUT WHERE PEOPLE ARE GOING TO BE 13:47:53 ENGAGED IN THIS PROCESS, HOW IS THIS GOING TO BE HANDLED? 13:47:56 AND WHETHER THE -- I KNOW THE COAST GUARD I DON'T THINK DOES 13:48:00 THESE PERMANENT -- THESE RIGS. THEY DO SHIPS AND VESSELS. 13:48:06 THIS IS NEITHER FISH NOR FOUL BUT IN MY DISTRICT IF YOU WOULD 13:48:12 GOING TO SHUT DOWN A REFINERY, YOU GO THROUGH A CHECKLIST JUST 13:48:15 AS IF YOU'RE GOING TO RESTART THAT REFINERY AND I WOULD HOPE 13:48:20 THAT YOU WOULD LOOK AT THIS IN TEMPS OF EVENTS THAT TAKE PLACE 13:48:26 ON THESE RIGS WHERE YOU MAY WANT PEOPLE TO STOP AND THINK ABOUT 13:48:31 HOW DO YOU WANT THIS TRANSACTION TO TAKE PLACE? 13:48:33 COULD BE UNLOADING AND LOADING CARGO OR WHETHER OR NOT YOU ARE 13:48:37 GOING TO CAP A WELL AND CHANGE OUT A DRILLING FOR PRODUCTION. 13:48:41 DOES THIS -- AM I MAKING ANY SENSE TO YOU? 13:48:44 NO, YES, SIR, YOU ARE. WOULDN'T BE THE FIRST TIME A 13:48:48 WITNESS LOOKED AT ME LIKE I'M NOT MAKING ANY SENSE. 13:48:51 I THINK IT IS A VERY SERIOUS CONCERN. 13:48:53 I PUT ON OUR OTHER HATS. WE LOST 11 PEOPLE ON THIS RIG 13:48:57 AND WE ARE STARTING TO GET SOME INFORMATION OF WHAT TOOK PLACE 13:49:00 AND IT IS NOT WHAT YOU WOULD LIKE TO BE THE REGULAR ORDER 13:49:04 GIVEN THE TRANSACTION THAT THEY WERE GOING THROUGH AND SWAPPING 13:49:07 OUT THIS WELL. ABSOLUTELY. 13:49:10 PART OF THE RESPONSIBILITY OF THIS OVERSIGHT BOARD IS TO BE 13:49:14 INFORMED BY WHAT IT LEARNS FROM THE INVESTIGATION AND I THINK WE 13:49:17 HAVE LEARNED A GREAT DEAL. THE NEXT QUESTION BECOMES, WHAT 13:49:23 NEEDS TO BE DONE IN TERMS OF IMPROVEMENTS IN THE PROCESS AND 13:49:28 MMS' OVERSIGHT AND THE LIKE? WHAT I IDENTIFIED AS OUR NEXT 13:49:37 TASK WHICH IS TO SEND OUT OFFICE OF INSPECTOR GENERAL TEAMS TO 13:49:43 REALLY DIVE INTO THESE AREAS AND BRING BACK INFORMATION PROBABLY 13:49:47 TO BE REVIEWED BY A SERIES OF EXPERTS SINCE WE DO NOT HAVE 13:49:53 THAT TECHNOLOGICAL EXPERTISE IN OUR OFFICE BUT WE DO HAVE THE 13:49:58 CAPABILITY TO GO OUT, COLLECT INFORMATION QUICKLY, MAKE A 13:50:01 QUICK ANALYSIS AND PRESENT IT THROUGH THE SAFETY OVERSIGHT 13:50:05 BOARD TO THE SECRETARY WHO THEN WILL PROBABLY EMPLOY A SERIES OF 13:50:10 EXPERTS EATER FROM THE NATIONAL ACADEMY OF ENGINEERING OR FROM 13:50:14 THE PRESIDENT'S COMMISSION TO REVIEW THIS INFORMATION. 13:50:18 IF I CAN JUST FINISH UP, SO THE THINKING IS THAT THIS WOULD 13:50:23 THEN BE INCORPORATED INTO THE DISCUSSIONS OF THE 13:50:26 REORGANIZATION -- ABSOLUTELY. 13:50:28 -- ARCHITECTURE OF MMS, MAYBE EVEN THE COAST GUARD AND I WOUL 13:50:34 YES. THANK YOU. 13:50:40 T THANK YOU VERY MUCH. 13:50:42 VERY HELPFUL. THANK YOU, MR. CHAIRMAN. 13:50:45 THERE IS LITTLE BIT OF A MIXED MENL FROM YOUR REPORT. 13:50:49 YOU SPEAK OF CONCERN THAT FOLKS HAVE ARE KNOWN SO LONG THEY FRAT 13:50:59 NERIZE. IS IT THE FRAT NICING PER SE 13:51:02 OR -- YOU SEE WHERE I'M GOING WITH THAT. 13:51:03 I DO. THE FRATERNIZING CERTAINLY IS 13:51:09 NOT ACCEPTABLE, BUT ONE OF THE -- MAYBE ONE OF THE 13:51:14 WEAKNESSES IS A WEAKNESS IN THE ETHICS REGULATIONS WHICH ALLOWS 13:51:20 GIFT ACCEPTANCE IF IT'S BASED ON A PERSONAL RELATIONSHIP. 13:51:23 BUT I THINK GIFTS ARE ALLOWED TO BE, IF THERE'S A PREEXISTING 13:51:28 RELATIONSHIP. SO IF TWO KIDS WENT TO SULFUR 13:51:30 HIGH SCHOOL, THEY BOTH GO TO TEXAS A & M -- THERE'S NOT THAT 13:51:37 MANY PETROLEUM ENGINEERING SCHOOLS. 13:51:39 THERE'S ONE WITH OR TWO DEGREES OF SEPARATION OF EVERYONE IN THE 13:51:43 FIELD. DOES THAT MAKE SENSE? 13:51:44 YES. SO IT ALMOST SEEMS IF THEY 13:51:48 PLAYED ON THE STATE CHAMPIONSHIP TEAM AT SULFUR HIGH SCHOOL IN 13:51:51 1971 AND NOW THEY'RE IN THE INDUSTRY, ONE IS REGULATORY, 13:51:55 ONE'S PRIVATE, IS THAT THE TIME OF FRATERNIZING YOU'RE CONCERNED 13:52:00 ABOUT? IT IS SIMPLY BECAUSE IT IS -- 13:52:03 IF YOU LOOK AT THE GIFT GIVING REGULATIONS, IT WOULD BE IN 13:52:08 VIOLATION OF THE GIFT GIVING REGULARS WHICH ARE DESIGNED NOT 13:52:14 ONLY TO AFFECT OR PREVENT REAL EFFECT OVER A GOVERNMENT 13:52:21 EMPLOYEE'S JOB AND HOW HE OR SHE -- 13:52:24 NOW, I SEE YOUR POINT. DON'T MEAN TO INTERRUPT. 13:52:27 I JUST HAVE LIMITED TIME. THE FRAT -- TELLS ME THEY ARE 13:52:41 WILLING TO THROW THE OTHER INTO THE POKEY IF THEY'RE DOING A BAD 13:52:44 JOB. DO YOU HAVE ANY DATA ON THE 13:52:47 YOOER BY YEAR NUMBER OF FRACTIONS AN INTENSITY OF 13:52:51 INFRACTIONS THAT HAVE BEEN MEET METED OUT? 13:52:55 I DO NOT. THAT SEEMS LIKE THAT'S 13:52:59 CRITICAL. IF YOU HAVE A CORRELATION WHERE, 13:53:01 IN FACT I'M A LITTLE SURPRISED YOU DON'T. 13:53:03 THERE SHOULD BE -- WHAT YOU'RE ALLEGING BUT KIND OF I'M A 13:53:09 LITTLE SCHIZOPHRENIC IS BECAUSE OF THE FRATERNIZING THERE ARE 13:53:12 PEOPLE THEY'RE GOING LIGHTER ON BUT ON THE OTHER HAND THERE'S 13:53:15 STILL A LEVEL OF PROFESSIONALISM. 13:53:18 THAT BOTH STATEMENTS ARE IN YOUR TESTIMONY OR REPORT. 13:53:21 BUT ON THE OTHER HAND THE REAL ISSUE IS, IS IT IMPACTING 13:53:25 ENFORCEMENT? WELL, WE DID NOT FIND A QUID 13:53:31 PRO QUO INVOLVED IN THIS INVESTIGATION WHERE -- 13:53:34 WHEN YOU SAY THIS, YOU MEAN THE DEEP WATER HORIZON. 13:53:37 NO. THE LAKE CHARLES INVESTIGATION. 13:53:42 WE DID NOT FIND QUID PRO QUO EITHER IN THIS OR IN THE MMS 13:53:46 INVESTIGATION THAT WE CONDUCTED OUT ON THE ROYALTY IN KIND 13:53:51 GROUP. BUT THERE IS A CLEAR VIOLATION 13:53:54 OF THE ETHICS REGULATIONS IN THE ACCEPTANCE IN BOTH INSTANCES. 13:53:59 SO I'M NOT -- PUT IT THIS WAY. 13:54:02 I THINK THERE'S A LOT OF ATTENTION AND ALMOST A 13:54:04 PRESUMPTION IF THERE IS A VIOLATION OF ETHICS CODE THAT IN 13:54:07 SOME WAY IT'S IMPACTING THE IMPLEMENTATION OR ENFORCEMENT OF 13:54:12 REGULATIONS. BUT I THINK WHAT I'M HEARING IS 13:54:14 WHAT WE'RE CONCERNED ABOUT IS THE VIOLATION OF THE CODE ETHICS 13:54:19 CODE. I DON'T KNOW IF IT HAD AN 13:54:22 IMPACT. WE DID NOT FIND QUID PRO QUO 13:54:24 KIND OF EXAMPLES. YOUR SUGGESTION THAT WE LOOK AT 13:54:28 THE DATA OF THE INSPECTION FREQUENCY AND EXTENT I THINK IS 13:54:34 A GOOD ONE. IT ALSO SEEMS TO ME YOU'RE 13:54:38 GOING TO HAVE A VERY HARD TIME IN THE FUTURE MONITORING -- LET 13:54:41 ME BACK UP A LITTLE BIT. I'M STRUCK THAT THE ADVANCED 13:54:46 PERMIT TO DRILL, THE APD, IS SUPPOSED TO BE GIVING ABILITY TO 13:54:51 SIGN OFF ON A DRILLING PLAN, IN EFFECT DOING WHAT MR. MILLER WAS 13:54:55 SPEAKING OF, SIGNING OFF ON THE PLAN, IS IT WISE? 13:54:58 IS IT NOT? WAS THAT NOT DONE IN THIS CASE? 13:55:01 PUT IT THIS WAY, IS THAT NOT DONE REGULARLY? 13:55:08 DO YOU SEE WHERE I'M GOING? I'M NOT SURE I DO. 13:55:14 APD MUST BE APPROVED BY MMS. I DON'T KNOW THE TECHNICALIIES 13:55:21 INVOLVED IN THE APD PROCESS SO I REALLY CAN'T SPEAK TO THAT. 13:55:25 OKAY. NOW, IT ALSO SEEMS -- AGAIN, 13:55:28 THERE'S ONE DEGREE OF SEPARATION BETWEEN EVERY PETROLEUM ENGINEER 13:55:31 IN THE UNITED STATES. IT'S GOING TO BE A RELATIVELY 13:55:34 SMALL FRATERNITY, IF YOU WILL. IF YOU'RE GOING TO HAVE A SAFETY 13:55:37 BOARD WHICH IS GOING TO ACTUALL BEGIN TO DO OVERSIGHT, EITHER 13:55:40 YOU'RE GOING TO PUT PEOPLE IN A BOX AND NOT LET THEM GO TO AN 13:55:47 LSU FOOTBALL GAME OR YOU'RE GOING TO SAY, YOU KNOW THE GUY. 13:55:51 YOU WENT TO GRAD SCHOOL TOGETHER. 13:55:53 NOW HE'S EARNING THREE TIMES AS MUCH AS YOU IN THE PRIVATE 13:55:56 SECTOR AND YOU'RE IN THE PUBLIC SECTOR BUT WE'RE NOT GOING TO 13:55:59 LET YOU TRANSITION. IT ALMOST SEEMS INHERENT IN THE SMALLNESS 13:56:02 OF THE INDUSTRY IS PROBLEMS WITH THE DETAIL. 13:56:05 I THINK YOU'RE RIGHT, BUT THE SIMPLE FIX WOULD BE, GO TO THE 13:56:09 LSU GAME AND PAY YOUR OWN WAY. THAT'S ABSOLUTELY TRUE. 13:56:12 BUT I'M GOING BACK TO WHAT YOU SAID, HOW MANY OF THESE PEOPLE 13:56:15 HAVE PREEXISTING RELATIONSHIPS AND SOMEHOW WE'RE SUPPOSED TO 13:56:18 PUT A CHINESE WALL BETWEEN THEM ONCE THEY GO INTO THE REGULATORY 13:56:22 ENVIRONMENT. I DON'T THINK THAT'S WHAT I'M 13:56:24 SAYING. I'M SAYING THAT YOU REMOVE THE 13:56:28 APPEARANCE MUCH FAVORITISM AND IMPROPRIETY IF YOU STOP THE GIFT 13:56:32 GIVING. PEOPLE CAN BE FRIENDS. 13:56:35 CAN I ASK ONE MORE QUESTION? IN YOUR FOLLOW-UP REPORT, 13:56:38 WILL YOU DO AN ANALYSIS OF THE, AGAIN, NUMBER OF INFRACTIONS AND 13:56:42 SEVERITY OF INFRACTIONS METED OUT OVER DIFFERENT TIME PERIODS? 13:56:47 WE COULD CERTAINLY DO THAT. THE DIRECTOR OF MMS MAY BE ABLE 13:56:52 TO GIVE YOU THAT INFORMATION MORE QUICKLY THAN I CAN. 13:56:56 THANK YOU. THANK YOU. 13:57:00 LET ME ASK MY QUESTIONS HERE FIRST. 13:57:04 THANK YOU VERY MUCH FOR THE WORK THAT YOU'VE DONE. 13:57:07 THIS REPORT IS RATHER DETAILED AND EXTENSIVE AND CERTAINLY IT 13:57:12 TOOK A LOT OF LONG HOURS AND WE APPRECIATE IT. 13:57:15 YOU MAY HAVE HEARD ME EARLIER SINCE YOU'VE BEEN HERE ALL 13:57:19 MORNING MENTION TO THE SECRETARY THAT, YOU KNOW, AS MUCH AS WE'D 13:57:23 LIKE TO SEE IT IN A PERFECT WORLD WE'RE NEVER GOING TO HAVE 13:57:26 100% HONESTY, INTEGRITY, PURITY, IF YOU WILL. 13:57:30 THAT'S JUST IMPOSSIBLE TO LEGISLATE OR MAKE HAPPEN. 13:57:37 MY QUESTION I GUESS IS -- MY THOUGHT FIRST IS THAT YOU NEED 13:57:42 STIFFER PENALTIES IN ORDER TO MAKE IT AS LITTLE AS POSSIBLE 13:57:46 WHAT HAS OCCURRED HERE. BUT WHAT RECOMMENDATIONSES DO 13:57:49 YOU MAKE? I'M NOT SURE, FOR EXAMPLE, 13:57:51 MAKING MMS UP INTO THREE DIFFERENT DEPARTMENTS OR 13:57:55 AGENCIES OR WHATEVER YOU WANT TO CALL WILL IT IS GOING TO ADDRESS 13:57:58 THE PROBLEMS THAT YOU HAVE ADDRESSED IN YOUR REPORT. 13:58:01 SO WHAT RECOMMENDATIONS WOULD YOU MAKE TO THE SECRETARY OR 13:58:04 HAVE YOU MADE TO THE SECRETARY OR TO MMS TO ADDRESS THE 13:58:13 PROBLEMS YOU'VE FOUND? WE'VE MADE A NUMBER OF 13:58:15 RECOMMENDATIONS, MOST HAVE TO DO WITH STRENGTHENING ETHICS 13:58:21 REQUIREMENTS AND ENSURING -- MORE THAN WHAT THE SECRETARY 13:58:24 HAS ALREADY PROMULGATED? YES. 13:58:26 AND ENSURING THAT THAT, IN FACT, HAS HAPPENED. 13:58:28 AND PART OF THE EFFORT THAT WE'LL BE UNDERTAKING IN THE NEXT 13:58:33 COUPLE MONTHS WILL BE TO ENSURE THAT THAT, IN FACT, HAS 13:58:36 OCCURRED. THE OTHER IS, I THINK THAT THE 13:58:41 SECRETARY CAN TAKE SOME VERY SHORT-TERM MEASURES LIKE THE 13:58:48 INSTITUTING A TWO-YEAR WAITING PERIOD ON INSPECTORS WHO, SAY, 13:58:52 COMES FROM SHELL MOVES TO MMS SHOULD NOT BE ALLOWED TO INSPECT 13:58:56 A SHELL PLATFORM OR RIG FOR AT LEAST TWO YEAR
OIL SPILL HEARING 1500
Gulf Coast Oil Spill Senate Homeland Security and Governmental Affairs Committee hearing with Janet Napolitano, Secretary of Homeland Security, and Lamar McKay, the president and CEO of BP, America. 15:00:01 YOU SOME DETAIL ON THE ORIGINAL RESPONSE BECAUSE IT IS OF SOME 15:00:07 IMPORTANT INTEREST BY H OF YOU.E BY MANY OF YOU. 15:00:11 MORE THAN 17,000 PERSONNEL ARE CURRENTLY IN THE GULF REGION 15:00:14 CONDUCTING RESPONSE ACTIVITIES. IN ADDITION, MORE THAN 2100 15:00:19 VOLUNTEERS HAVE BEEN TRAINED TO HELP DEAL WITH ANY POTENTIAL 15:00:22 EFFECTS OF OIL ONSHORE. MORE THAN 750 VESSELS ARE 15:00:26 CURRENTLY RESPONDING TO THIS SPILL INCLUDING SKIMMERS, TUGS, 15:00:32 BARGES AND RECOVERY VESSELS THAT ASSIST IN CONTAINMENT AND 15:00:36 CLEAN-UP EFFORTS. THIS IS IN ADDITION TO DOZENS OF 15:00:39 AIRCRAFT, REMOTELY-OPERATED VEHICLES AND OTHER ASSETS BEING 15:00:43 DEPLOYED. WE HAVE DEPLOYED 1.7 MILLION 15:00:48 FOOT OF BOOM TO DATE, AND WE HAVE ANOTHER 1.9 MILLION FEET OF 15:00:53 BOOM IN THE SUPPLY CHAIN. AIRCRAFT ARE CONSTANTLY 15:00:57 MONITORING THE INTEGRITY OF THE BOOM AND ARE DIRECTING POLLUTION 15:01:01 RESPONSE TEAMS TO MAKE NECESSARY ADJUSTMENT TO THE LINES. 15:01:06 WE HAVE, ARE ABLE WITH THESE SUPPLIES TO INSURE THAT WE CAN 15:01:13 RESPOND WITHIN 24 HOURS OR 5 MILES OF OIL HITTING SHORE, 15:01:19 WHICHEVER WOULD BE SOONER. LET ME JUST SAY THAT THE BOOM IS 15:01:23 SET UP AND DEPLOYED IN STAGING AREAS SO THAT IT CAN BE DEPLOYED 15:01:27 WITHIN 24 HOURS OR 5 MILES OF OIL, WHICHEVER WOULD BE SOONER. 15:01:32 MORE THAN 6.6 MILLION GALLONS OF OILY WATER HAVE BEEN RECOVERED, 15:01:38 APPROXIMATELY 625,000 GALLONS OF DISPERSANT HAVE BEEN APPLIED. 15:01:42 THIS INCLUDES APPROXIMATELY 45,000 GALLONS APPLIED SUBSEA, A 15:01:48 METHOD THAT HAS BEEN APPROVED BY THE NATIONAL RESPONSE TEAM. 15:01:52 AND FOR THE FIRST TIME.ND FOR SEVENTEEN STAGING AREAS ARE 15:01:57 CURRENTLY SET UP TO PROTECTRRENO VITAL SHORELINE. 15:02:00 WE HAVE APPROVED THE USE OF UP TO 17,500 NATIONAL GUARDTO 15:02:04 MEMBERS, MORE THAN 1450 AREMBER, CURRENTLY DEPLOYED. 15:02:08 ALL SHIPPING CHANNELS AND PORTSG REMAIN OPEN IN THE GULF COAST 15:02:12 REGION. THERE ARE NO REPORTED DELAYS OR 15:02:15 CLOSURES TO SHIPPING. NO VESSELS HAVE REQUIRED 15:02:18 CLEANING OR DECONTAMINATION, BUT OUR TEAMS ARE ON STANDBY IF SUCH 15:02:23 A NEED ARISES.RISES. DRILLING HAS COMMENCED ON BOTH 15:02:28 RELIEF WELLS WHICH WILL RELIEVE PRESSURE AND PERMANENTLY STOP 15:02:31 THE FLOW OF OIL. FLOW YESTERDAY BP ATTEMPTED ANOTHER 15:02:34 TEST TO CONTAIN SOME OF THE OILF LEAKING FROM THE RISER BY 15:02:39 INSERTING A SMALL PIPE INTO IT M CARRYING OIL DIRECTLY UP TO THE 15:02:43 SURFACE TO A COLLECTION VESSEL.O AS OF THIS MORNING, BP REPORTSFS 15:02:47 THE PIPE IS RECOVERING SOME OILS AND GAS. 15:02:50 THERE'S NO CONFIRMATION YET ON THE RATE OF FLOW. 15:02:55 MNS AND BP ARE MONITORING THIS TEST CLOSELY TODAY AND ADJUSTING 15:03:00 PRESSURES TO ACHIEVE THE HIGHEST TONCENTRATIONS OF OIL BEING 15:03:03 BROUGHT TO THE SURFACE. NOW, IT'S IMPORTANT TO NOTE THAT 15:03:07 EVEN IF THIS EFFORT IS SUCCESSFUL, IT WILL NOT CHANGE 15:03:11 OUR POSTURE.F WE WILL CONTINUE TO BRING ALL 15:03:14 RESOURCES TO BEAR UNTIL THE WELL IS TAPPED, THE OIL IS CLEANED 15:03:17 UP, AND THE CLAIMS ARE PAID. THAT SAID, WE ARE ALSO ACTIVELY 15:03:23 EXPLORING OTHER METHODS TO TETIGATE THE SPILL'S IMPACT. 15:03:27 RIGHT NOW FEDERAL SCIENTISTS ARE CONTINUING TO PROVIDE OVERSIGHT 15:03:31 AND EXPERTISE TO BP AS THEY MOVE FORWARD WITH OTHER STRATEGIES TO 15:03:35 CONTAIN THE SPILL AND STOP THE FLOW OF OIL. 15:03:39 AND THIS WEEKEND BP STAGED OI 15:03:42 EQUIPMENT FOR A TECHNIQUE CALLED THE TOP KILL WHICH WILL PUMP 15:03:46 HEAVY FLUIDS INTO THE WELL AND ATTEMPT TO STOP THE FLOW OF OIL. 15:03:50 THIS OPERATION IS EXPECTED TO IN 15:03:52 START AT THE END OF THIS WEEK.T NOW, AS I SAID EARLIER, THED OF. 15:03:56 RESPONSE TO THIS INCIDENT BEGAN IMMEDIATELY AND HAS REMAINED 15:04:00 CONSTANT AND STRONG OVER THE PAST FOUR WEEKS. 15:04:04 WHEN THE EXPLOSION ON THE DEEP SHORE -- DEEPWATER HORIZON 15:04:10 OCCURRED LATE AT NIGHT ON TUESDAY, APRIL THE 20, THE COAST 15:04:14 GUARD WAS FIRST ON THE SCENE WITH TWO CUTTERS AND AIRCRAFT 15:04:18 BEGINNING A LARGE-SCALE SEARCH AND RESCUE EFFORT. 15:04:21 BY THE MORNING, 115 CREW MEMBERS WERE ACCOUNTED FOR. 15:04:26 ON APRIL THE 21ST, WE NAMED MARY LANDRY THE FEDERAL ON-SCENE 15:04:32 COORDINATOR TO HEAD UP THE REGIONAL RESPONSE TEAM COMPRISED 15:04:35 OF FEDERAL, STATE AND LOCAL REPRESENTATIVES AND LAUNCHED AN 15:04:39 INTERAGENCY INVESTIGATION. IN OTHER WORDS, FROM APRIL THE 15:04:43 21ST WE WERE ALREADY BEGINNINGRE TO BRING RESOURCES TO BEAR IN AN 15:04:46 INTERGOVERNMENTAL WAY TO THIS TRAGEDY. 15:04:48 ON THE MORNING OF THURSDAY, TRA. APRIL, THE OIL RIG SANK 15:04:53 WITH 700,000 OF GALLONS OFTHIS DIESEL FUEL ONBOARD. 15:05:01 THIS PROMPTED THE NATIONAL RESPONSE TEAM WHICH INCLUDES 15:05:05 LEADERSHIP FROM THE WHITE HOUSE TO DHS TO THE EPA AND THE A BRIS 15:05:09 DEPARTMENTS OF DEFENSE, COMMERCE AND INTERIOR. DEPARTMT 15:05:12 I LEAD THE NRT AS THE PRINCIPALE FEDERAL OFFICIAL RESPONSIBLE FOR 15:05:18 COORDINATING THE FEDERAL RESPONSE. 15:05:19 THE DERAL DAY PRESIDENT OBAMA CONVENED A PRINCIPALS MEETINGIDT 15:05:24 HADUT THE INCIDENT. AT THIS TIME THERE WERE NO 15:05:28 APPARENT OIL LEAKS, BUT 100,000 APPARE 15:05:31 GALLONS OF DISPERSANTS WERE PREPOSITIONED. 15:05:34 WE ALSO INITIATED INTERGOVERNMENTAL CALLS TO 15:05:37 PROVIDE UPDATES ON THE SITUATION TO POTENTIALLY AFFECTED 15:05:41 POTENTLLYES ALONG THE GULF COAST. AFFEC 15:05:43 ONTED FRIDAY, APRIL THE 23RD, E SUNKEN RIG WAS FOUND ON THE 15:05:49 OCEAN FLOOR WITH AN OIL SHEEN ESTIMATED AT 8400 GALLONS 15:05:55 NEARBY. THE NO OIL LEAK WAS APPARENT, BUT NT 15:05:57 THE NRT CONVENED IN ORDER TO PLAN AHEAD IN CASE THE SITUATION 15:06:02 DETERIORATED CONTINUING TO PREPOSITION VESSELS AND 15:06:05 DISPERSANTS AND HUNDREDS OF THOUSANDS OF FEET OF BOOM IN 15:06:09 PREPARATION FOR SUCH A WORST-CASE SCENARIO. 15:06:11 THE NEXT DAY, SATURDAY, APRIL THE 24TH, BP FOUND THE FIRST TWI 15:06:17 LEAKS AND ALERTED THE FEDERAL GOVERNMENT. 15:06:19 THE FIRST THREE EQUIPMENT-STAGING LOCATIONS WERE 15:06:22 STOOD UP AT VENICE, LOUISIANA, BILOXI, MISSISSIPPI, AND 15:06:26 PENSACOLA, FLORIDA. ADDITIONAL PERSONNEL AND VESSELS 15:06:32 WERE DEPLOYED TO THE AREA. WE BEGAN TO ACTUALLY MOVE 15:06:35 ADDITIONAL BOOM THERE THE NEXT DAY. 15:06:38 ON WEDNESDAY, APRIL THE 28TH, THE FIRST CONTROLLED BURN 15:06:42 OPERATION WAS CONDUCTED, AND IT WAS SUCCESSFUL. 15:06:45 LATER THAT DAY BP DISCOVERED AN ADDITIONAL LEAK FROM THE OIL 15:06:50 WELL. BY THIS TIME THE DISCOVERY OF 15:06:52 THE THIRD LEAK, WE HAD ALREADY MUSTERED 50 RESPONSE VESSELS, 15:06:58 ROUGHLY 150,000 FEET OF BOOM HAD BEEN DEPLOYED. 15:07:01 WE HAD APPLIED 56,000 GALLONS OF DISPERSANTS, AND WE HAD OVER A 15:07:06 THOUSAND PERSONNEL WORKING THE SCENE. 15:07:09 ON THURSDAY, APRIL THE 29TH, I DESIGNATED THE EVENT A SPILL OF 15:07:16 NATIONAL SIGNIFICANCE WHICH BUILT ON THE OPERATIONAL AND 15:07:19 POLICY COORDINATION ALREADY UNDERWAY FROM THE BEGINNING OF 15:07:22 THIS RESPONSE. NOW, BY THIS DAY WE HAD 70 15:07:27 VESSELS ALREADY ON SCENE, 1100 PERSONNEL AND MORE BOOM AND 15:07:31 DISPERSANT AT THE READY. ON MAY THE 1ST, WE ANNOUNCED 15:07:35 THAT ADMIRAL THAT'D ALLEN, THE OUTGOING COMMANDANT OF THE COAST 15:07:42 COMMR. WOULD SERVE AS THE INCIDENT COMMANDER. 15:07:44 LET ME BRIEFLY DESCRIBE THE ONGOING ACTIVITIES. 15:07:49 WE ARE DOING EVERYTHING WE CAN TO INSURE THAT VITAL RESPONSE 15:07:52 ASSETS, PERSONNEL AND EQUIPMENT ARE EFFICIENTLY AND EFFECTIVELY 15:07:56 DEPLOYED AND UTILIZED. I HAVE VISITED EACH OF THE 15:08:00 RESPECTIVE STATES TO SEE THAT EFFORTS ARE UNDERWAY AND 15:08:04 FIRSTHAND MEETING WITH GOVERNORS, MAYORS, FIRST 15:08:06 RESPONDERS AND IMPACTED COMMUNITIES. 15:08:08 WE ARE WORKING CLOSELY WITH STATE AND LOCAL GOVERNMENTS 15:08:11 EVERY STEP OF THE WAY ON JOINT RESPONSE PLANS AND THROUGH THE 15:08:14 COMMAND CENTERS. WE HAVE DAILY CALLS WITH 15:08:17 GOVERNORS, MAYORS AND MEMBERS OF THE CONGRESS. 15:08:20 WE ARE OVERSEEING BP, THE RESPONSIBLE PARTY, IN ITS 15:08:24 EFFORTS TO STOP THE LEAK AT ITS SOURCE, REDUCE THE SPREAD OF 15:08:28 OIL, PROTECT THE SHORELINE AND MITIGATE DAMAGES. 15:08:32 DRILLING RELIEF WELLS, WHICH WILL RELIEVE PRESSURE AND 15:08:36 PERMANENTLY STOP THE PRESSURE OF OIL AS I MENTIONED, IS UNDERWAY. 15:08:40 THE FEDERAL GOVERNMENT HAS MOBILIZED ITS BEST SCIENTISTS 15:08:44 AND INDUSTRY EXPERTS TO WORK WITH BP TO IDENTIFY OTHER 15:08:48 STRATEGIES FOR SEALING THE WELL. AND THE PRESIDENT HAS TASKED THE 15:08:51 DEPARTMENT OF ENERGY TO PROVIDE EXPERTISE ON THAT FRONT. 15:08:55 ABOVE THE SURFACE WE CONTINUE TO CONDUCT CONTROLLED BURNS, SKIMEI 15:08:59 OIL AND APPLY CHEMICAL DISPERSANTS TO REDUCE THE AMOUNT 15:09:03 OF OIL AND BREAK UP THE SLICKEDE FAR OFFSHORE. 15:09:06 OF WE ARE DEPLOYING BOOM TO PROTECT 15:09:08 WE ARE SHORELINE AND WILDLIFE IN ALL 15:09:10 THE GULF STATES THAT COULD BE AFFECTED, AND IMMEDIATELY 15:09:14 DISPATCHING CLEAN-UP TEAMS WHEN OIL -- GENERALLY IN THE FORM OF 15:09:19 TARBALLS -- REACHES THE SHORE. WE ARE KEEPING THE PUBLIC 15:09:22 ENGAGED AND MAKING SURE THAT PEOPLE WHO WANT TO VOLUNTEER FOR 15:09:26 CLEAN UP, FOR HELPING TO DEPLOY BOOM OR IN OTHER WAYS CAN HELP. 15:09:30 AND WE ARE INSURING THAT BRITISH PETROLEUM AS THE RESPONSIBLE 15:09:34 PARTY IS PAYING THE COSTS OF THE CLEAN UP AND COMPENSATING 15:09:38 INDIVIDUALS, COMMUNITIES AND BUSINESSES THAT HAVE SUFFERED 15:09:41 ALREADY AS A RESULT OF THISCOMMD SPILL. 15:09:45 ACTUALLY, BEGINNING TODAY THEIR CLAIMS CAN ACTUALLY BE FILED 15:09:50 ONLINE, AN ACCESS POINT WE'VE BEEN USUALING BP TO MAKE. 15:09:54 AVAILABLE FOR THE PAST FEW WEEKS. 15:09:56 SO FAR OVER 16,000 CLAIMS HAVE BEEN FILED BY AFFECTEDED 15:10:00 INDIVIDUALS AND BUSINESSES.BY BP HAS PAID OUT OVER $9.6 15:10:05 MILLION, IT HAS NOT YET DENIED A CLAIM. 15:10:08 LOOKING AHEAD, THE ADMINISTRATION WILL CONTINUE THA 15:10:11 STRONG RESPONSE THAT WE HAVE SUSTAINED SINCE THE 20TH OF WEAE 15:10:14 APRIL. WE WILL MOBILIZE EVERY AVAILABLE 15:10:17 RESOURCE TO PROTECT THE ENVIRONMENT, ECONOMY AND PUBLIC 15:10:20 HEALTH IN THE GULF REGION WITHIE ALL HANDS ONNT DECK. 15:10:23 THANK YOU, MR. CHAIRMAN, FOR THIS OPPORTUNITY TO BE WITH YOU 15:10:27 TODAY. I'LL BE HAPPY TO ANSWER YOUR 15:10:29 QUESTIONS. THANKS VERY MUCH, MADAM 15:10:32 SECRETARY. BEFORE I ASK MY QUESTIONS, I 15:10:34 WILL DO A SEVEN-MINUTE ROUND. I HAVE A CIRCUIT IN MY HEAD, I 15:10:41 THINK I KEPT REFERRING TO MMS BY THE WRONG NAME. 15:10:45 IT'S THE MINERALS MANAGEMENT MIN SERVICE, SO LET THE RECORDER SH. 15:10:49 I APPRECIATE VERY MUCH THE RESPONSE EFFORTS, IT'S REALLY 15:10:53 QUITE ENORMOUS, THAT YOU'VE DESCRIBED, SECRETARY NAPOLITANO, 15:10:57 THAT THE GOVERNMENT IS INVOLVED THIS AND THAT BP IS INVOLVED INE 15:11:02 BUT I WANT TO GO BACK AGAIN TO SOME OF THE QUESTIONS I RAISED O 15:11:06 IN MY OPENING STATEMENT, ANDOPEG THIS REALLY GOES TO PREPAREDNESS 15:11:10 UNIQUELY FOR A PROBLEM WITH THEE DEEPWATER WRELL, AND I'LL ASK 15:11:17 YOU, MADAM SECRETARY. MAY W END UP THAT THIS ISYOU, 15:11:21 TECHNICAL AND YOU WANT THE SECR, ADMIRAL TO RESPOND IS, BUT B 15:11:23 HERE'S THE QUESTION AND LET METE JUST SPEAK AS SOMEBODY WHO'SUES, 15:11:26 BEEN WATCHING THIS. A SPEAK TO AS YOU W SATCOMH, AS WE WATCH TE 15:11:30 COMPANY, THE GOVERNMENT TRYING E DESPERATELY TO FIGURE OUT HOW TO 15:11:35 CLOSE THIS WELL, TO STOP THISTO SPILL IN THE GULF WE, OBVIOUSLY, 15:11:42 HAVE TO CONCLUDE THAT PEOPLE WEREN'T PREPARED TO DO IT, 15:11:45 WEREN'T PREPARED TO DEAL WITH THIS KIND OF PROBLEM. 15:11:49 IN FACT, AS THE COMPANY SAID QUITE HONESTLY, THEY HAD CAPPED 15:11:55 WELLS BEFORE, PERHAPS SOME THAT HAD A FAILURE OF THE BLOWOUT 15:11:59 PREVENTER, BUT NEVER AT THIS DEPTH. 15:12:02 SO WHY SHOULDN'T THE COMMITTEE, I OR ANYBODY IN THIS COUNTRY 15:12:08 CONCLUDE THAT, IN FACT, WE WERE, WE WERE NOT PREPARED, EITHER THE 15:12:14 GOVERNMENT OR THE COMPANY BY DEMAND OF THE PERMITTING 15:12:20 AUTHORITIES, TO DEAL WITH THIS KIND OF BLOWOUT OF A DEEPWATER 15:12:25 WELL? LET ME DIVIDE IT, IF I MIGHT, 15:12:28 MR. CHAIRMAN, INTO BEFORE THE BLOWOUT AND AFTER THE BLOWOUT. 15:12:34 OKAY.ORE THE I THINK BEFORE THE BLOWOUT IT 15:12:39 IS CLEAR THAT THERE WAS AN ASSUMPTION THAT A BOP WOULD 15:12:44 NEVER FAIL AND THAT PLANS WERE SUBMITTED BASED TO THE MMS WHICH 15:12:49 IS PART OF THE DEPARTMENT OF INTERIOR BASED ON THAT 15:12:52 ASSUMPTION. AND I'VE READ SOME OF THE SAMEIE 15:12:56 MATERIALS THAT YOU HAVE. BUT FROM THE POINT OF VIEW OF AN 15:13:01 EXPLOSION AND A SPILL, THERE HAVE BEEN EXTENSIVE PLANS 15:13:05 PREPARED UNDER THE NATIONAL PLAS RESPONSE FRAMEWORK. 15:13:08 THERE ARE AREA CON TIN GENERALTY CITY -- CON TIN GIN SI PLANS PUT 15:13:15 FRGETHER THAT INCLUDE INTENSIVE EFFORTS THERE STATES, 15:13:19 LOCALITIES, PARISHES, THERE ARED THE REGIONAL RESPONSE PLANS AND 15:13:22 THEN THERE'S THE NATIONAL RESPONSE FRAMEWORK. 15:13:25 THOSE PLANS NOT ONLY EXIST, BUT ARE EXERCISED ON A REGULAR 15:13:29 BASIS. INDEED, I THINK THERE WAS AN 15:13:32 AREA RESPONSE PLAN FOR AN OIL-RELATED INCIDENT JUST IN 15:13:37 MARCH OFF OF THE COAST OF MAINE, SENATOR COLLINS. 15:13:43 AND THERE WAS A NATIONAL EXERCISE WITH THE EXACT PREMISE 15:13:47 OF THIS WHICH IS A MAJOR SPILL IN THE GULF COAST. 15:13:51 RIGHT. THAT WAS DONE IN 2002, AND 15:13:55 ADMIRAL ALLEN WAS THE NATIONAL COMMANDER FOR THAT EXERCISE AND, 15:13:59 INDEED, HE'S THE NATIONAL INCIDENT COMMANDER HERE. 15:14:03 SO TO THE EXTENT THAT BEFORE SPILL THERE WAS OVERRELIANCE, 15:14:09 PERHAPS, ON THE B.O.P., THAT WILL BECOME MORE CLEAR AS THE 15:14:13 INVESTIGATION PROCEEDS. RIGHT. 15:14:15 ISN'T IT -- POST-SPILL, THOUGH, THERE WAS 15:14:20 AN EXTENSIVE PLANNING EXERCISE FRAMEWORK IN PLACE. 15:14:24 YEAH. BUT ISN'T IT TRUE THAT, AND, 15:14:27 ADMIRAL, I WELCOME YOU TO COMMENT ON THIS, THAT THOSE 15:14:31 KINDS OF DRILLS WERE NOT REALLY TO DEAL WITH A BLOWOUT IN A 15:14:36 DEEPWATER WELL? IN OTHER WORDS, THERE WAS A LOT 15:14:37 OF WORK DONE, AND THERE'S BEEN ENORMOUS EFFORT AT RESPONSE. 15:14:42 AND I THINK IT'S REALLY HAD AN EFFECT ON THE WATER ON THE 15:14:45 SURFACE. BUT NOW WE'VE GOT TWO ENORMOUS 15:14:48 PROBLEMS THAT I DON'T BELIEVEAVS UNLESS YOU CAN CONVINCE ME 15:14:51 OTHERWISE THAT WE WERE READY TO, DEAL WITH AND THE COMPANY WASN'T 15:14:54 EITHER WHICH IS WHAT DO YOU DOTA WHEN A DEEPWATER WELL BLOWS, AND 15:14:57 THEN WHAT DO YOU DO ABOUT THE OIL UNDER THE WATER THAT IS NOWR 15:15:01 ACCUMULATING IN THIS MASSIVEH PLUME? 15:15:03 ADMIRAL, DOES THE COAST GUARD -- COASARD -- DO A LOT OF DRILLING, 15:15:08 DO YOU DRILL FOR DEALING WITH, T MEAN, YOU KNOW, TRAIN FOR 15:15:15 DEALING WITH THE CONSEQUENCES OF A DEEPWATER WELL EXPLOSION? 15:15:21 MR. CHAIRMAN, WE DON'T DRILL THIS SPECIFIC SCENARIO, NO.RILL 15:15:26 WHAT WE, AND WHAT THE SECRETARYN WAS REFERRING TO WAS THE SPILL A 15:15:29 OF NATIONAL SIGNIFICANCE EXERCISE THAT WE DO EVERY THREE 15:15:32 YEARS THROUGHOUT THE COUNTRY. RIGHT. 15:15:34 WE DO, HOWEVER, DRILL FOR DRF MASSIVE OIL RELEASES, AND INLEAS 15:15:38 THIS CASE WE DID DRILL IN 2002 FOR MASSIVE OIL RELEASE FROM A 15:15:42 WELLHEAD DISCHARGE IN THE GULFE. OF MEXICO, ALTHOUGH IT WAS NOT 15:15:45 AT ALL LIKE THIS SPECIFICIKE SCENARIO. 15:15:48 AND WAS IT AS DEEP AS THISN'P WELL? 15:15:50 NO, SIR, IT WAS NOT. THI AND AS SENATOR COLLINS SAID, 15:15:53 MY UNDERSTANDING THAT INCREASINGLY IN THE GULF ANDY US 15:15:56 ELSEWHERE WE'RE USING DEEPWATERL WELLS, IS THAT TRUE BASED ON 15:15:59 WHAT YOU KNOW? WE'RE DEEPWATER DRILLING. 15:16:02 I DON'T KNOW THE EXACT NUMBEI OF DEEPWATER WELLS. 15:16:05 I KNOW IT'S SOME 1% OF ALL THE WELLS THAT ARE OUT THERE, AND I. 15:16:10 GUESS I WOULD HAVE TO REFER TO F MMS FOR THE EXACT NUMBER. WLD 15:16:13 BUT THERE IS AN INCREASINGEFER T AMOUNT OF ACTIVITY IN THE DEEPER 15:16:16 PARTS OF THE OUTER CONTINENTAL V SHELF, YES, SIR. 15:16:18 I KNOW EPTHATER THE COAST GU, AND CORRECT ME IF I'M WRONG, HAS 15:16:23 CONT RESPONSIBILITY FOR APPROVING OIL 15:16:25 SPILL RESPONSE PLANS THAT COME O FROM WHAT IS CALLED THE VEZ EL 15:16:29 OR WHAT I WOULD CALL THE RIG, WHAT'S ON THE SURFACE OF THE 15:16:33 WATER, AND THE MINERALS MANAGEMENT SERVICE HAS TOTVICE 15:16:38 APPROVE THE PLAN FOR A SPILL THOSE 15:16:40 FROM A WELL NO MATTER WHAT DEPTH. 15:16:42 BUT I WANTED TO ASK YOU IF TWO THINGS. 15:16:47 ONE IS GOING BACK TO SOMETHING G SAID IN MYOING OPENING STATEMENY 15:16:50 DOES IT MAKE SENSE THAT BP WAS ENABLED TO FILE JUST A REGIONAL 15:16:57 RESPONSE PLAN WHICH PRESUMABLY WOULD COVER BOTH DEEPWATER AND 15:17:01 MORE SHALLOW WATER WELLS ASCOVER OPPOSED TO A SPECIFIC RESPONSE 15:17:05 PLAN FOR EACH WELL, PARTICULARLS THE DEEPWATER WELLS?E 15:17:09 WELL, I CAN TELL YOU, YOU S? 15:17:12 KNOW, IN OUR CASE WE REQUIRE SPECIFIC RESPONSE PLANS PERRE SI 15:17:15 VESSEL THAT'S REQUIRED TO, THATL WE THINK MIGHT HAVE THE W 15:17:18 POTENTIAL TO DISCHARGE -- OKAY, THAT'S VERY IMPORTANT. 15:17:20 SO YOU HAVE A DIFFERENT APPROACH THAN MMS DOES ON THAT. 15:17:24 YES, SIR, WE DO. DOES ON WELL, THAT'S IMPORTANT. 15:17:27 LET ME JUST ASK YOU, FINALLY, BECAUSE MY TIME IS WINDING DOWN, 15:17:36 I THINK SECRETARY SAID ITI CORRECTLY AND I AGREE WITH HER D 15:17:39 FROM WHAT I'VE LOOKED AT, THERE FROM 15:17:41 WAS TOTAL RELIANCE PUT ON THIS W BLOWOUT PREVENTER. 15:17:44 BUT IN THE END LIKE SO MUCH, YOU , ENDIN LIFE, IT'S A PIECE OF 15:17:48 EQUIPMENT, AND THEY FAIL. IN FACT, THERE WAS SOMEUIPMENT. 15:17:50 EVIDENCE, AS I SAID, THAT THE EE BLOWOUT PREVENTERS HAD FAILE 15:17:53 SOME IN THE PAST.OU NOT A LARGE NUMBER AND NEVER THE 15:17:57 WITH A SPILL OF THIS KIND. BUT BECAUSE COAST GUARD HASE COD 15:18:05 RESPONSIBILITY FOR MARINE OIL SPILLS WHAT DO YOU THINK SHOULD 15:18:09 BE DONE TO TRY TO HAVE A LEVEL OF PREPAREDNESS THAT ALLOWS FOR 15:18:17 THE POSSIBILITY WHICH MAY BE ALE RARE, BUT AS WE SEE NOW IN THE E 15:18:21 GULF, CONSEQUENCES ARE ENORMOUSS OF A FAILURE OF A BLOWOUT 15:18:26 PREVENTER? WELL, SENATOR, I THINK THAT 15:18:28 THIS SPILL RAISES A LOT OF QUESTIONS LIKE THAT THAT WE'RE 15:18:31 GOING TO HAVE TO TAKE A GOOD, R HARD LOOK AT.IONS LIKE THAT 15:18:33 I MEAN, CLEARLY, THIS IS BEYONDD WHAT WE ANTICIPATED BEING 15:18:37 SOMETHING THAT COULD HAPPEN. WE CERTAINLY NEVER ANTICIPATEDAN 15:18:40 NN ONGOING RELEASE OF THIS HAPPE MAGNITUDE OVER THIS PERIOD OF 15:18:42 TIME.IPATED A SO I THINKN THAT THAT IS A VERY 15:18:45 QUESTION THAT HAS TO BE VERREALE ADDRESSED.HA 15:18:48 AT A MINIMUM,T WE'RE GOING TOWEH REVE TO LOOK AT OUR PLANNING 15:18:52 ADDRSED.FOR FUTURE REVISIONS OF OUR VARIOUS CONTINGENCY PLANS.OO 15:18:55 MADAM SECRETARY, I KNOW THAT YOU'RE WORKING WITH SECRETARYPL. 15:18:58 SALAZAR AND MAYBE ONE OR TWO I U OTHERS ON THIS SHORT-TERM WITH 15:19:04 SECRET INVESTIGATION STUDY THAT THE 15:19:05 PRESIDENT HAS ASKED ON YOU TO D, AND I HOPE -- I'M SURE YOU AED T 15:19:07 PROBABLY WERE O DOING IT SUR ALREADY -- THAT YOU'LL TAKE AG T 15:19:10 CLOSE LOOK AT THE SPECIAL SPECIL REQUIREMENTS FOR PROTECTION THAT 15:19:15 IT SEEMS TO ME WE NOW HAVE ALL V LEARNED HAVE TO APPLY TO 15:19:19 DEEPWATER DRILLING, INCLUDING THE BLOWOUT PREVENTERS THAT IBRD 15:19:23 FEAR OR WERE NOT APPLIED BY MMS BEFORE. 15:19:26 IF I MIGHT, MR. CHAIRMAN, YOU KNOW, WITH EVERY INCIDENT THAT 15:19:33 OCCURS LESSONS ARE LEARNED.NTS T RIGHT. W 15:19:35 AND I THINK THAT'S ONE OF THE REASONS WHY THE PRESIDENT HAS WT 15:19:39 BEEN SO VERY CLEAR THAT FURTHER DEEPWATER DRILLING PERMITS ARE 15:19:44 GOING TO BE STOPPED UNTIL THISDR CAN BE INVESTIGATED AND 15:19:50 WSURANCES CAN BE GAINED THATTHS THINGS HAVE BEEN CHANGED SO THAS 15:19:53 WE DON'T HAVE A DUPLICATION OF THE DEEPWATER HORIZON INCIDENT. 15:19:57 AND I THINK, YOU KNOW, PRUDENCE WOULD DICTATE THAT THAT WOULD BE 15:20:01 WHAT WOULD HAPPEN. AND SO I THINK WE'RE ALL WORKING 15:20:04 TOGETHER TO SAY, ALL RIGHT, WHAD HAPPENS HERE -- WHAT HAPPENED 15:20:11 HERE, WHAT POWER SHOULD MMS HAVE THAT IT SHOULDN'T HAVE HAD, WHAD 15:20:16 POWERS DID IT NOT EXERCISE, WASE THERE OVERRELIANCE ON THE EXERC? 15:20:20 B.O.P., WHAT HAPPENED WITH THE B.O.P.? 15:20:25 I SAID I THINK THAT PERHAPS THERE MAY BE A FEW LAWYERS THAT 15:20:29 GET INVOLVED IN SOME OF THAT AS THE LITIGATION HAPPENS, BUT I 15:20:33 THINK THE PRESIDENT WAS HAPPENS ABSOLUTELY RIGHT LAST FRIDAY TO 15:20:36 SAY THIS ISN'T ABOUT, YOU KNOW, FOR'S RESPONSIBLE FOR PAYING. 15:20:42 OUR WORK IS TO MAKE SURE THAT THIS WELL IS CAPPED, TO MAKE 15:20:46 SURE THAT IT IS CLEANED UP, TO A MAKE SURE THAT OIL IS PREVENTEDO 15:20:51 FROM HITTING LANDFALL, AND WHEN NT DOES, THAT IT IS CLEANED UP,E 15:20:55 THAT ALL CLAIMS ARE PAID AND THAT THEY ARE DONE SO PROMPTLY. 15:20:58 AND TO ME, THAT'S THE DEFINITIOP RIGHT NOW OF THIS RESPONSE AND R 15:21:04 WHEN WE WILL DECLARE THE RESPONSE OVER. 15:21:06 THANK YOU. SENATOR COLLINS. 15:21:08 THANK YOU, MR. CHAIRMAN. C THE CHAIRMAN MENTIONED THE 15:21:13 DIVIDED RESPONSIBILITY FOR APPROVAL OF THE OIL RESPONSE THE 15:21:18 PLANS BETWEEN MMS AND THE COASTT GUARD.HE 15:21:23 THIS MY STATEMENT -- IN MY STATEMENT I RAISED THE QUESTION 15:21:26 OF WHY WOULDN'T YOU HAVE THE NOT COAST GUARD HAVE SOME SHARING OF 15:21:31 INFORMATION WITH MEASURING MS -- MMS SUCH THAT THE COAST GUARD 15:21:36 WOULD BE RESPONSIBLE FOR SOME BE SORT OF CONCURRENT APPROVAL OF 15:21:40 THE PLAN. IT DOESN'T MAKE A LOT OF SPENCE 15:21:44 AT FIRST -- SENSE AT FIRST BLUSH TO HAVE ONE AGENCY RESPONSIBLE 15:21:48 FOR APPROVING THE PLAN IF IT'S E ABOVE THE WATER FOR THE VESSELE 15:21:53 AND ONE, A DIFFERENT AGENCY ANDN A DIFFERENT DEPARTMENT EVEN, DEM 15:21:59 RESPONSIBLE IF THE PLAN APPLIES TO THE WELLHEAD. 15:22:03 HAS THERE BEEN ANY THOUGHT TO AT LEAST BROADENING THE COAST T COT 15:22:10 GUARD'S RESPONSIBILITY IN THISDB AREA, MADAM SECRETARY? 15:22:13 SENATOR COLLINS, I THINK SEN 15:22:15 THERE'LL BE A LOT OF DIFFERENT THINGS LOOKED AT AS TO WHO HAS 15:22:19 WHAT AUTHORITIES AND WHATWHAT AUTHORITIES NEED TO BE ADJUSTED 15:22:22 IN LIGHT OF THIS. SPEAKING FOR MYSELF RIGHT NOW, I 15:22:26 THINK THAT'S ONE OF THE AUGITIMATE QUESTIONS OR WHAT 15:22:29 AUTHORITIES THAT WE NEED TO BE LOOKING INTO. BE IN LIGH 15:22:30 ADMIRAL? QUESTNS I WOULD CONCUR WITH THE>> 15:22:34 SECRETARY. I THINK THAT MOVING FORWARD WE 15:22:36 NEED TO LOOK AT WHETHER OR NOTMO THERE NEEDS TO BE AVI DEFINITIVE 15:22:39 STATEMENT WITH RESPECT TO THAT O CONCURRENT REVIEW. 15:22:41 AS YOU KNOW, WE DO CURRENTLYWE HAVE MEMORANDUMS OFAVE 15:22:45 UNDERSTANDING WITH THE MMS WHICE WOULD ALLOW US TO REVIEW THOSE 15:22:47 WOULD PLANS, BUT THERE IS NOW 15:22:49 REQUIREMENT TO DO SO. ADMIRAL, THIS CATASTROPHE IS 15:22:52 THE FIRST SPILL TO BE CLASSIFIED AS A SPILL OF NATIONAL 15:22:59 SIGNIFICANCE SINCE THAT TERM WAI FIRST COINED IN THE WAKE OF THE 15:23:04 EXXONIN VALDEZ DISASTER IN 1989S DURING THE INTERVENING 20-PLUS 15:23:11 YEARS, SOME HAVE EXPRESSED THE CONCERN THAT BECAUSE OUR NATION, 15:23:18 FORTUNATELY, HAS NOT BEEN FORCED TO RESPOND TO A MAJOR OIL SPILL 15:23:22 IN SUCH A LONG TIME THAT WE'VE LOST THE EXPERTISE AND 15:23:28 INSTITUTIONAL KNOWLEDGE THAT IS NECESSARY FOR A QUICK AND THA 15:23:32 EFFECTIVE RESPONSE.TIVE AND, INDEED, IN 2004 WHEN THEN 15:23:38 COAST GUARD DID AN EXERCISE IN THIS AREA, THE AFTER-ACTION 15:23:45 REPORT HAD SOME TROUBLING I WALUSIONS, AND I WANT TO READ 15:23:48 FROM THAT. THE AFTER-ACTION REPORTTHE 15:23:53 CONCLUDED, QUOTE, THAT OIL SPILL RESPONSE PERSONNEL DID NOTONNELT 15:23:58 APPEAR TO HAVE EVEN A BASIC KNOWLEDGE OF THE EQUIPMENT OF TE 15:24:03 REQUIRED TO SUPPORT SALVAGE OR O SPILL CLEAN-UP OPERATIONS.LEAN-P 15:24:07 THERE WAS A SHORTAGE OF PERSONNEL WITH THE EXPERIENCE TO 15:24:12 FILL KEY POSITIONS.FILL MANY MID-LEVEL SPILL MANAGEMENT- 15:24:16 STAFF HAD NEVER WORKED ON A WOR LARGE SPILL AND SOME HAD NEVER 15:24:21 BEEN INVOLVED IN AN EXERCISE.ANH ..AD 15:24:26 I KNOW THERE HAVE BEEN TWO SUBSEQUENT EXERCISES SINCE THEN, 15:24:30 INCLUDING THE ONE HOSTED BY THE STATE OF MAINE THIS SPRING, FOR 15:24:34 WHICH THE AFTER ACTION REPORT HAS NOT YET BEEN WRITTEN. 15:24:38 WHAT IS YOUR ASSESSMENT OF THE EXPERTISE THAT WE HAVE TODAY IN 15:24:45 GOVERNMENT AND IN THE INDUSTRY TO DEAL WITH A MAJOR OIL SPILL? 15:24:50 SENATOR, I THINK YOU ARE REFERRING TO THE 2004 DRILLING 15:24:55 IN LOS ANGELES AND LONG BEACH HARBOR. 15:24:57 I WAS A UNIFIED COMMANDER FOR THAT EXERCISE. 15:25:00 THOSE WERE MY RECOMMENDATIONS THAT YOU JUST READ THAT CAME OUT 15:25:02 OF THAT. BUT YOU TEND TO AGREE WITH THEM. 15:25:07 I DID AT THE TIME. -- YOU TEND TO AGREE WITH 15:25:12 THEM. I DID AT THAT TIME. 15:25:15 WE HAVE DONE A LOT TO IMPROVE OUR ABILITY. 15:25:18 IF YOU LOOK AT THE SUBSEQUENT EXERCISES IN THE INTERVENING 15:25:22 PERIODIC ANNUAL AND TRY ANNUAL EXERCISES THAT WE DO, -- 15:25:28 TRIANNUAL EXERCISES THAT WE DO, WE HAVE LEARNED A LOT. 15:25:33 WE HAVE NOT HAD A MAJOR OIL SPILL, BUT THAT DOES NOT KEEP US 15:25:36 FROM PREPARING EFFECTIVELY FOR IT. 15:25:40 DO WE HAVE THAT EXPERTISE NOW? 15:25:44 CLEARLY, IF YOU ARE ACTUALLY CLEANING UP OIL, THERE IS AN 15:25:49 EXPERTISE AT YOU DEVELOP THAT CANNOT BE DEVELOPED IN ANY OTHER 15:25:53 WAY. I THINK WE HAVE THE CAPABILITY 15:25:56 NOW. WE HAVE A LOT OF PEOPLE WHO LOOK 15:25:57 AT THIS OVER AN EXTENDED TIME PERIOD. 15:26:03 YOU THE CAPABILITY IN THE PRIVATE INDUSTRY WITH RESPECT TO 15:26:05 THE ORGANIZATIONS WHO ARE REQUIRED TO MAINTAIN 15:26:12 EXPERTISE. WE STILL HAVE A NUMBER OF 15:26:13 ONGOING MINOR SPILLS THAT PROVIDE OPPORTUNITIES FOR 15:26:16 TRAINING PEOPLE IN RESPONDING. WE HAVE THE CAPABILITY. 15:26:20 IN THE CASE OF THIS OIL SPILL, I HAVE BEEN VERY IMPRESSED. 15:26:24 I'VE SPENT QUITE A BIT OF THE LAST COUPLE OF WEEKS DOWN IN THE 15:26:27 GULF, AROUND THE AREA AND AT THE COMMAND CENTER, AND WATCHING THE 15:26:35 OPERATIONS. I HAVE BEEN VERY IMPRESSED WITH 15:26:36 WHAT I HAVE SEEN. MADAM SECRETARY, YOU 15:26:40 MENTIONED THE FEDERAL RESOURCES THAT HAVE BEEN BROUGHT TO BEAR 15:26:44 ON THIS CATASTROPHE AND THE FACT THAT THE COWS ARE -- THE COAST 15:26:51 GUARD WAS ON SEEN IMMEDIATELY. THERE HAVE BEEN SOME QUESTIONS 15:26:53 ABOUT WHETHER RESOURCES -- THE COAST GUARD WAS ON-SCENE 15:27:02 IMMEDIATELY. THERE HAVE BEEN SOME QUESTIONS 15:27:04 ABOUT WHETHER RESOURCES WERE DISPERSED IMMEDIATELY. 15:27:13 SEARCH AND RESCUE WAS NOT FOCUSED ON CONTAINING THE OIL 15:27:18 SPILL. WHAT IS YOUR ASSESSMENT OF THE 15:27:23 RESOURCES, THE ADEQUACY, AND THE TIMELINESS IN OF THE 15:27:29 RESOURCES THAT BRITISH PETROLEUM AND ITS PARTNERS BROUGHT TO THE 15:27:33 TASK IN THOSE INITIAL DAYS. I THOUGHT YOU WERE GOING TO 15:27:39 ASK A DIFFERENT QUESTION. WELL, I THOUGHT OF ASKING YOU 15:27:44 WHETHER YOU WERE SATISFIED WITH THE FEDERAL RESPONSE. 15:27:47 BUT I HAVE A FEELING -- I KNOW WHAT THE ANSWER TO THAT WOULD 15:27:49 BE. SO I DECIDED TO ASK YOU ABOUT 15:27:53 THE PRIVATE SECTOR RESPONSE. WELL, AND YES, AND THAT'S ONE 15:27:57 OF THE REASONS WHY I WANTED TO GIVE YOU REALLY THE TICK TOCK OF 15:27:59 THE FEDERAL RESPONSE. BECAUSE RECOGNIZING THAT THE 15:28:05 EXPLOSION OCCURRED LATE ON THE EVENING OF THE 20th, THEN YOU GO 15:28:10 ON THE 22nd, THE RIG SINKS. YOU GO THE 24TH AND YOU BEGIN 15:28:19 SEEING FIRST SIGNS OF LEAKING HOLLYWOOD AND THEN ON THE 28th 15:28:24 IS WHEN YOU HAD SIGNS OF THE THIRD LEAK OF THE RISERS. 15:28:34 I WOULD LIKE TO, IF I MIGHT, RESERVE JUDGMENT ON THE ADEQUACY 15:28:40 OF THE PRIVATE SECTOR RESPONSE. I WILL SAY THAT BRITISH 15:28:45 PETROLEUM LEADERSHIP, BOTH THE AMERICAN HEAD OF BRITISH 15:28:49 PETROLEUM AND THE INTERNATIONAL HEAD, WERE IN WASHINGTON VERY 15:28:51 QUICKLY. THEY WERE IMMEDIATELY ASSUMING 15:28:56 RESPONSIBILITY AS THE RESPONSIBLE PARTY, WHICH THEY 15:28:58 SHOULD AND SHOULD HAVE. THEY HAVE BEEN IN THE COMMAND 15:29:05 CENTERS AND IN THE STAGING AREAS. 15:29:10 THEY HAVE BEEN WORKING IN TERMS OF CLEANUP AND GETTING -- 15:29:15 HIRING, FOR EXAMPLE, LOCAL FISHERMAN TO DEPLOY BOOM AND THE 15:29:19 REST. WHETHER THE EXACT HOURS AROUND 15:29:23 THE SINKING -- EXPLOSION AND SINKING OF THE RIG, THEY SHOULD 15:29:26 HAVE HAD MORE OR DIFFERENT EQUIPMENT THERE OR MORE OR 15:29:30 DIFFERENT KINDS OF EXPERTISE THERE, IT WOULD BE PREMATURE OF 15:29:32 ME TO SAY. THANK YOU. 15:29:36 THANKS VERY MUCH, SENATOR COLLINS. 15:29:40 SENATOR McCAIN AND THEN SENATOR LANDRIEU IN ORDER OF APPEARANCE. 15:29:42 GOOD AFTERNOON. THANK YOU. 15:29:46 THANK YOU FOR BEING HERE, MADAM SECRETARY AND ADMIRAL. 15:29:51 MAYBE, MADAM SECRETARY, TO LIFT THIS UP A LITTLE BIT. 15:29:54 WHAT'S YOUR BEST CASE SCENARIO AND WORSE CASE SCENARIO ABOUT 15:29:57 THIS CRISIS RIGHT NOW? WELL, OBVIOUSLY WE WOULD LIKE 15:30:05 TO SEE THE INSERTION PIPE CONTINUE TO WORK AND LIFT OIL 15:30:07 OFF THE SURFACE. WE'D LIKE TO SEE WHEN AND IF THE 15:30:13 TOP-KILL METHODOLOGY IS DEPLOYED AND THAT IT WORKS AND THAT OIL 15:30:18 IMMEDIATELY BEGINS TO BE LIFTED OFF THE SEA FLOOR AS TO THE SEA 15:30:23 SURFACE. IF THEY ARE DRILLING THE RELIEF 15:30:27 WELL AND HIT IT THE FIRST TIME. AND WHEN YOU'RE DRILLING THESE 15:30:31 WELLS MY UNDERSTANDING YOU DON'T NECESSARILY HIT THE PLACE YOU 15:30:33 NEED TO HIT THE FIRST TIME. THAT WOULD BE THE BEST CASE 15:30:36 SCENARIO. WE ON THE OTHER HAND HAVE FROM 15:30:43 THE BEGINNING NOT PLANNED OUR RESPONSE BASED ON NUMBERS OR 15:30:47 BASED ON -- WHETHER 5,000 BARRELS OR 25,000 BARRELS. 15:30:54 OUR RESPONSE IS GEARED TO WHAT IS NECESSARY TO FIGHT THE OIL ON 15:30:56 THE SEA. TO PREVENT THE OIL FROM HITTING 15:30:59 LAND. AND IF IT HITS LAND, TO CLEAN IT 15:31:01 UP IMMEDIATELY. WORSE CASE SCENARIO? 15:31:07 WORSE CASE SCENARIO IS THAT WE'LL BE AT THIS FOR QUITE A 15:31:09 WHILE. AND THE -- AND WHERE DO YOU 15:31:15 THINK WE ARE IN EITHER SCENARIO? WELL, YOU KNOW, IF THE 15:31:21 INSERTION -- THE RRT IS IN RIGHT NOW. 15:31:24 AND IF IT BEGINS TO LIFT OIL AS IT LOOKS PROMISING THAT IT IS, 15:31:27 AND THEY'RE ABLE TO DO THE JUNK-FILL, THAT WOULD HAPPEN BY 15:31:30 THE END OF THE WEEK. BUT IN TERMS OF DRILLING ANOTHER 15:31:38 RELIEF WELL, I THINK WE'RE SOME WEEKS AWAY, WELL INTO THE 15:31:40 SUMMER. I THINK THERE'S A BP WITNESS 15:31:42 AFTER ME. YOU MIGHT ASK HIM. 15:31:46 AND WHERE'S YOUR LEVEL OF OPTIMISM? 15:31:54 I'M JUST TAKING IT DAY BY DAY. 15:31:56 AND I THINK THAT'S WHAT WE NEED TO DO. 15:31:59 I THINK WE NEED TO JUST SAY, LOOK, WE'RE IN THE MIDDLE OF 15:32:01 THIS CRISIS. WE'RE NOT AT THE BEGINNING. 15:32:07 WE'VE BEEN AT IT A MONTH ALMOST. BUT WE'RE NOT AT THE END AS 15:32:09 WELL. BUT IN MY VIEW, OUR JOB IS TO 15:32:14 JUST KEEP MOVING AND JUST KEEP ASSEMBLING, DEPLOYING, 15:32:19 PREPARING, CLEANING AND KEEPING TRACK OF WHAT WE'RE SPENDING 15:32:22 BECAUSE ULTIMATELY THE TAXPAYERS SHOULDN'T HAVE TO BEAR THIS 15:32:24 COST. AND YOU HAVE DISPATCHED 15:32:30 17,000 NATIONAL GUARD TO HELP OUT AND CLEANUP AND OTHER 15:32:34 EFFORTS TO BE MADE ON THE GULF; IS THAT RIGHT? 15:32:39 THERE HAVE BEEN UP TO 17,000 THAT HAVE BEEN AUTHORIZED. 15:32:42 I BELIEVE THERE ARE A THOUSAND OR SO THAT ARE ACTUALLY WORKING 15:32:43 RIGHT NOW. AND WHAT DO YOU EXPECT? 15:32:47 IT DEPENDS. IT DEPENDS ON WHETHER WE 15:32:55 CONTINUE TO SEE OIL REACHING THE SHORE. 15:32:57 IT DEPENDS -- WE'RE GOING TO HAVE TO START ROTATING PEOPLE IN 15:32:59 AND OUT. IN TERMS OF DOING AIR FLIGHTS 15:33:04 OVER THE BOOM AND MONITORING IT AND REPLACING IT BECAUSE IT 15:33:07 DOESN'T LAST, YOU KNOW, FOREVER OUT THERE. 15:33:08 IT GETS -- IT GETS BROKEN. WE'RE GOING TO NEED TO REPLACE 15:33:14 PEOPLE IN TERMS OF STAFFING, THE FORWARD OPERATING CENTERS AND 15:33:17 THE LIKE. SO I THINK OVER THE COURSE OF 15:33:22 THE SUMMER, WE'LL SEE A NUMBER OF THE GUARD DEPLOYED. 15:33:25 IN THOSE KINDS OF CAPACITIES, SIR. 15:33:27 WELL, IF YOU'LL INDULGE ME, WE THINK WE HAVE ANOTHER CRISIS 15:33:32 ON THE BORDER. AND I SENT YOU A LETTER ON APRIL 15:33:36 6th -- EXCUSE ME, BACK IN MARCH. YOU SENT ME A LETTER BACK ON 15:33:40 APRIL 9th, WELL OVER A MONTH AGO, IN RESPONSE TO OUR REQUEST 15:33:46 THAT THE GUARD BE SENT TO THE ARIZONA/MEXICO BORDER, AND I 15:33:51 QUOTE FROM YOUR RESPONSE, THE NATIONAL GUARD HAS A POTENTIAL 15:33:54 TO CONTRIBUTE ADDITIONAL CAPABILITIES AND CAPACITIES TO 15:33:57 ASSIST LAW ENFORCEMENT AGENCIES AND THEIR BORDER SECURITY AND 15:33:58 LAW ENFORCEMENT MISSIONS. THE USE OF THE GUARD TO SUPPORT 15:34:02 LAW ENFORCEMENT EFFORTS IS ONE OF THE MANY OPTIONS BEING 15:34:07 CONSIDERED IN THE ADMINISTRATION'S OVERALL BORDER 15:34:09 SECURITY STRATEGY. I'LL KEEP YOU INFORMED AS OUR 15:34:13 FORCE MULTIPLICATION ALONG THE SOUTHWEST BORDER CONTINUES. 15:34:17 DO YOU HAVE NOW IN THE INTERVENING MONTH AND -- OVER A 15:34:21 MONTH ANYTHING TO KEEP ME INFORMED ABOUT? 15:34:23 YES, I DO ACTUALLY BECAUSE WE'VE BEEN WORKING THE SOUTHWEST 15:34:29 BORDER ISSUE CONSTANTLY. AND HARD. 15:34:33 BUT LET ME -- IF I MIGHT, SENATOR, WE'LL GIVE YOUR STAFF 15:34:38 IF WE HAVE NOT ALREADY, I APOLOGIZE A MORE EXTENSIVE 15:34:40 BRIEFING. BUT WE HAVE -- I'M GOING TO USE 15:34:45 AS MY START DATE, THE DATE OF THE MURDER OF ROB KRENZ THE 15:34:51 RANCHER NEAR DOUGLAS. WE HAVE INCREASED FLIGHT HOURS, 15:34:57 50% OVER THE TUCSON SECTOR SINCE THE DAY OF THAT MURDER. 15:35:03 WE HAVE 24/7 COVERAGE THERE. AND WE CONTINUE TO INCREASE ON 15:35:12 BOTH THE FIXED AND ROTOR WING AIRCRAFT. 15:35:16 JUST ON THE TUCSON AREA, NOT JUST AT THE BORDER. 15:35:20 WE WILL MOVE AND I WILL GIVE YOU EXACT NUMBERS, MOBILE 15:35:23 SURVEILLANCE -- I DON'T MEAN TO INTERRUPT, 15:35:25 GOVERNOR, BUT I'M NOT -- MADAM SECRETARY. 15:35:27 BUT I KNOW ALL THOSE THINGS ARE GOING ON. 15:35:29 I WANT TO KNOW ABOUT WHETHER YOU'RE GOING TO SEND THE GUARDS 15:35:31 TO THE BORDER OR NOT? AS YOU KNOW, IF I MIGHT, GIVE 15:35:37 YOU ONE OTHER THING THAT WE HAVE ADDED IN ADDITION TO NUMBERS. 15:35:42 AND THAT WILL BE STARTING AT THE END OF THIS MONTH. 15:35:47 BUT BEGINNING AGAIN THE PROCESS OF INTERIOR REPATRIATION OF 15:35:49 EVERYBODY THAT WE PICK UP. BUT WITH RESPECT TO THE GUARD, 15:36:00 THOSE REQUESTS AS YOU KNOW ARE INVOLVED IN THE DEPARTMENT OF 15:36:03 DEFENSE. THEY INVOLVE THE DEPARTMENT OF 15:36:07 HOMELAND SECURITY AND INVOLVE THE WHITE HOUSE. 15:36:10 THAT QUEST AND THAT ANALYSIS REMAINS IN THAT INTERAGENCY 15:36:13 PROCESS. AND DO WE HAVE ANY IDEA AS TO 15:36:16 WHEN THAT DECISION MIGHT BE MADE? 15:36:19 I WOULD LIKE IT TO BE MADE AS SOON AS POSSIBLE. 15:36:21 BUT I CANNOT GIVE YOU A DATE CERTAIN. 15:36:26 WELL, MEANWHILE, PEOPLE'S HOMES ARE BEING VIOLATED AND 15:36:29 THEIR FAMILIES CAN'T TAKE KIDS TO THE BUS STOP. 15:36:34 AND YOU'RE VERY FAMILIAR WITH THE ISSUE BECAUSE YOU YOURSELVES 15:36:39 YOURSELF ASKED FOR THE GUARD TO GO TO THE BORDER BACK IN 2006. 15:36:43 SO I DON'T KNOW WHAT IT TAKES FOR US TO GET A DECISION ON IT. 15:36:47 AT LEAST THE PEOPLE IN MY STATE HAVE THE RIGHT TO KNOW WHETHER, 15:36:55 SINCE THIS IS A LONG-STANDING REQUEST, IN FACT, IT WAS 15:37:00 REQUESTED BACK IN 2009 -- I THINK THEY HAVE A RIGHT TO KNOW 15:37:02 WHETHER THEY ARE GOING TO BE SENT OR NOT. 15:37:08 I WOULD HOPE YOU WOULD EXPEDITE THAT PROCESS AT LEAST TELLING US 15:37:13 WHETHER THEY'RE GOING TO BE SENT OR NOT. 15:37:17 FINALLY, IF I MIGHT ASK OF YOU, HAVE YOU HAD A CHANCE TO REVIEW 15:37:20 THE NEW LAW THAT WAS PASSED BY THE STATE OF ARIZONA? 15:37:24 I'VE NOT REVIEWED IT IN DETAIL. 15:37:25 I CERTAINLY KNOW OF IT, SENATOR. SO YOU'RE NOT PREPARED TO 15:37:29 MAKE A JUDGMENT ON IT? SENATOR, THAT IS NOT A LAW -- 15:37:41 LET ME JUST SAY THIS. AS YOU KNOW, AND ARE WELL AWARE, 15:37:49 THAT'S NOT THE KIND OF LAW I WOULD HAVE SIGNED? 15:37:50 FOR WHAT REASON? BECAUSE I BELIEVE IT'S A BAD 15:37:55 LAW ENFORCEMENT LAW. I BELIEVE IT MANDATES AND 15:37:59 REQUIRES LOCAL LAW ENFORCEMENT -- OR PUTS THEM IN A 15:38:01 POSITION MANY DO NOT WANT TO BE PLACED IN. 15:38:05 WHEN I WAS DEALING WITH LAWS HAVE THAT ILK, MOST OF THE LAW 15:38:11 ENFORCEMENT ORGANIZATIONS IN ARIZONA AT THAT TIME WERE 15:38:14 OPPOSED TO SUCH LEGISLATION. WELL, I'D BE PLEASED MAYBE IN 15:38:18 WRITING TO HEAR WHAT SPECIFIC ASPECT OF THE LAW WOULD IMPEDE 15:38:23 OR HARM LAW ENFORCEMENT SINCE THE MAJORITY OF LAW ENFORCEMENT 15:38:27 IN ARIZONA STRONGLY SUPPORTS THIS LEGISLATION. 15:38:33 AND UNFORTUNATELY BOTH THE PRESIDENT OF THE UNITED STATES 15:38:34 AND -- THE PRESIDENT OF THE UNITED STATES PORTRAYED IT AS 15:38:38 A -- THAT SOMEONE CAN'T EVEN GO OUT FOR ICE CREAM WITHOUT BEING 15:38:42 HARASSED, WHICH IS ONE OF THE MORE OUTRAGEOUS STATEMENTS I'VE 15:38:44 EVER HEARD. AND NOW OUR OWN ATTORNEY GENERAL 15:38:50 HAS -- AFTER CONDEMNING THE LAW SAID HE HADN'T EVEN READ IT. 15:38:54 THIS IS AN IMPORTANT ISSUE, NOT JUST IN ARIZONA, BUT AROUND THIS 15:38:57 COUNTRY. I WOULD HOPE THAT WE WOULD AT 15:39:00 LEAST HAVE A DECISION ON WHETHER THE GUARD IS GOING TO BE SENT TO 15:39:02 THE BORDER. AND I WOULD LIKE TO HAVE 15:39:06 SPECIFICS, IF YOU GET TIME, AND I KNOW IT'S NOT IN YOUR AREA OF 15:39:10 EXPERTISE ANYMORE -- BUT I KNOW ALSO AS A FORMER GOVERNOR OF THE 15:39:15 STATE, YOU HAVE A SIGNIFICANT INTEREST OF WHAT PARTICULAR 15:39:18 ASPECTS OF THAT LAW THAT YOU WOULD FIND OBJECTIONABLE. 15:39:20 THANK YOU, MR. CHAIRMAN. THANKS, SENATOR MARION. 15:39:23 -- McCAIN. SENATOR LANDRIEU, THANKS FOR 15:39:27 BEING HERE. YOU'VE COME TO ONE OF THESE 15:39:31 INQUIRIES AS YOU DID SO OFTEN DURING THE KATRINA 15:39:35 INVESTIGATIONS WITH A REAL PERSONAL INTEREST ON BEHALF OF 15:39:36 YOUR STATE. SO I APPRECIATE THAT YOU'RE 15:39:37 HERE. AND I LOOK FORWARD TO YOUR 15:39:39 QUESTIONS NOW. THANK YOU, MR. CHAIRMAN. 15:39:42 MY JOB IS MADE SOMEWHAT EASIER BECAUSE OF THE WORK THAT YOU AND 15:39:45 THE RANKING MEMBER HAVE DONE. AND I MEAN THAT SINCERELY. 15:39:47 AND I THANK YOU. SENATOR COLLINS FOR CALLING THIS 15:39:52 HEARING. I'VE ACTUALLY ENCOURAGED THE 15:39:55 CALLING OF HEARINGS OF A VARIETY OF DIFFERENT HEARINGS BECAUSE 15:39:59 OBVIOUSLY THE PEOPLE THAT I REPRESENT WOULD LIKE TO ANSWERS. 15:40:00 THEY'RE EXTREMELY CONCERNED. EVERYONE IN THE STATE, ALONG THE 15:40:05 GULF COAST PARTICULARLY THOSE ALONG THE COASTAL COMMUNITIES. 15:40:09 SO I WANT TO BEGIN, MR. CHAIRMAN, BY SAYING THAT THE 15:40:12 QUESTIONS THAT YOU ASKED IN YOUR OPENING STATEMENT, I HOPE THAT 15:40:15 WE WILL GET ANSWERS TO. AND I THOUGHT THAT THEY WERE 15:40:18 EXCELLENT AND RIGHT ON POINT. SECONDLY, MADAM SECRETARY, I 15:40:24 WANT TO THANK YOU FOR YOUR MULTIVISITS TO LOUISIANA OVER 15:40:28 THE LAST SEVERAL MONTHS BEFORE THIS INCIDENT HAPPENED. 15:40:32 WORKING ON THE LAST INCIDENT THAT OCCURRED AS WELL AS YOUR 15:40:35 TIME FOCUSED ON THIS ONE. AND THE MANY SENIOR-LEVEL 15:40:42 OFFICIALS THAT HAVE BEEN ON THE GROUND FROM THE COAST GUARD TO 15:40:44 THE INTERIOR DEPARTMENT TO NOAA, TO EPA. 15:40:48 YOU ALL HAVEN'T JUST SENT YOUR MIDMANAGERS OR YOUR NEWLY 15:40:54 APPOINTED DIRECTORS BUT YOUR CABINET OFFICIALS THERE HAVE 15:40:56 BEEN AND CONTINUE. AND I GET GOOD FEEDBACK FROM 15:41:01 REPUBLICAN AND DEMOCRATIC LOCAL OFFICIALS BECAUSE OF THAT. 15:41:05 AND I WANT ON THEIR BEHALF EXPRESS OUR THANKS. 15:41:09 I WOULD SAY THAT THE PEOPLE IN LOUISIANA ARE VERY INTERESTED IN 15:41:11 A COUPLE OF IMPORTANT QUESTIONS. SOME OF WHICH YOU HIT. 15:41:16 WHEN HAVE WILL THIS UNCONTROLLED FLOW BE STOPPED? 15:41:20 IS EVERYTHING BEING DONE THAT CAN POSSIBLY BE DONE? 15:41:22 WHEN AND HOW WILL CLAIMS BE PAID? 15:41:23 WILL THEY BE TRANSPARENT? WILL THEY BE ADEQUATE? 15:41:27 WHAT ARE THE LONG-TERM IMPACTS TO OUR FISHERIES, WHICH IS A 15:41:30 MULTIBILLION DOLLAR INDUSTRY, AS YOU KNOW. 15:41:33 AND HOW CAN THIS INDUSTRY BE MADE SAFER FOR THE FUTURE? 15:41:39 I'M NOT GOING TO ASK YOU TO RESPOND TO ALL A FOUR OF THOSE 15:41:42 NOW. BUT IN WRITING I WOULD LIKE SOME 15:41:45 RESPONSE. I WOULD LIKE TO TAKE A MINUTE OF 15:41:47 MY QUESTIONS, MR. CHAIRMAN, TO PUT SOME THINGS IN PERSPECTIVE 15:41:51 FOR THIS SITUATION. I THINK IT'S IMPORTANT. 15:41:54 I DID THIS AT THE OVERSIGHT HEARING ON ENERGY. 15:41:58 I DID THIS AT THE OVERSIGHT HEARING FOR THE EPW HEARING. 15:42:00 AND I'D LIKE TO DO IT TODAY. THERE ARE 42,645 WELLS THAT HAVE 15:42:09 BEEN DRILLED IN STATE AND FEDERAL WATERS IN THE GULF OF 15:42:10 MEXICO. ALONE. 15:42:14 THE FIRST DEEP WELL WAS DRILLED 31 YEARS AGO. 15:42:17 NOT LAST WEEK. THE FIRST DEEP WELL 31 YEARS AGO 15:42:21 IN 1979. FROM THAT TIME UNTIL 2008, THERE 15:42:29 HAVE BEEN 2,239 DEEP WATER WELLS DRILLED AVERAGING APPROXIMATELY 15:42:35 133 WELLS PER YEAR. GETTING TO YOUR POINT, RANKING 15:42:42 MEMBER COLLINS, IN 1990, YOU'RE CORRECT. 15:42:45 ONLY 4% OF THE OIL COMING FROM THE GULF WAS RESPONSIBLE IN THE 15:42:48 DEEP WATER. ONLY 4%. 15:42:51 BUT TODAY 60% OF THE OIL COMING FROM THE GULF COMES FROM DEEP 15:42:55 WATER AND ULTRA DEEP WATER. THE RECORD WILL SHOW THAT FROM 15:43:01 1947 TO 2009, ONLY 1, -- I'M SORRY 175,000 BARRELS HAVE BEEN 15:43:07 SPILLED OUT OF 16 BILLION PRODUCED. 15:43:10 THAT'S ABOUT ONE THOUSANDTH OF 1% OF TOTAL PRODUCTION. 15:43:13 SO UNTIL THIS HAPPENED, THE RECORD WAS PRETTY GOOD. 15:43:18 THE PROBLEM IS, THIS BLOWOUT IS PUTTING MORE OIL IN THE WATER IN 15:43:24 ONE AND A HALF DAYS THAN HAS BEEN PUT IN THIS WATER IN THE 15:43:25 LAST DECADE. THAT IS STARTLING TO THOSE OF US 15:43:30 THAT ARE FAIRLY FAMILIAR WITH THE INDUSTRY. 15:43:32 AND WE'RE EXTREMELY CONCERNED AND WANT IT TO BE SAFER. 15:43:37 SO, ONE, I SUPPORT THE PRESIDENT'S 30-DAY LOOK. 15:43:41 I MOST CERTAINLY SUPPORT TIGHTER CONTROLS OVER DEEP WATER WELLS. 15:43:44 AND WOULD SAY TO THIS COMMITTEE, WE PIONEERED THIS TECHNOLOGY IN 15:43:46 THE GULF. GULF OF MEXICO. 15:43:49 WE DID. IT'S IMPORTANT THAT WE GET THIS 15:43:53 RIGHT BECAUSE IT HAS A MAJOR IMPACT ON HOW THESE WELLS ARE 15:43:55 DRILLED AROUND THE WORLD. IF OURS ARE SAFE, MOST OTHER 15:43:59 COUNTRIES WILL BE SAFE. AND WE HAVE AN OBLIGATION NOT 15:44:04 JUST TO OURSELVES BUT TO THE PEOPLE OF THE PLANET ACTUALLY. 15:44:08 SO LET ME ASK A COUPLE THINGS 'CAUSE I'M EXTREMELY INTERESTED 15:44:12 IN HOW MUCH MONEY OUR GOVERNMENT HAS SPENT ON RESEARCH AND 15:44:18 DEVELOPMENT, EITHER THROUGH HOMELAND SECURITY, EPA, NOAA, OR 15:44:20 INTERIOR? DO YOU ALL HAVE A RECORD? 15:44:24 NOW YOU WON'T HAVE FROM THOSE OTHER AGENCIES BUT MADAM 15:44:27 SECRETARY, FROM YOUR OWN AGENCY, DO YOU KNOW IF ANY MONEY? 15:44:30 AND IF SO WHAT THE DOLLAR AMOUNT IS OR WHAT PERCENTAGE IS SPENT 15:44:35 ON RESPONSE TO A CATASTROPHE LIKE THIS? 15:44:38 AND IF YOU DON'T HAVE THAT EXACT NUMBER, COULD YOU GIVE IT TO ME 15:44:42 IN WRITING AND MAYBE COMMENT GENERALLY ON IF YOU THINK 15:44:46 HOMELAND SECURITY IS DOING WHAT IT NEEDS TO DO TO BE BETTER 15:44:49 PREPARED OR PREPARED FOR AN INCIDENT LIKE THIS? 15:44:53 WELL, WE'RE ALWAYS -- YOU KNOW, AS I SAID EARLIER, YOU 15:44:57 LEARN FROM EVERY INCIDENT. YOU BEGIN WITH THE PLANS AND YOU 15:45:00 EXERCISE THE PLANS. BUT THEN AS ANY INCIDENT 15:45:03 COORDINATOR OR COMMANDER WILL TELL YOU, YOU'VE GOT TO WORK THE 15:45:06 PROBLEM AT THAT POINT. YOU'VE GOT TO GO AT IT. 15:45:09 AND THAT'S WHAT WE HAVE BEEN DOING. 15:45:14 I WILL TELL YOU, WE ARE ACCUMULATING WITHIN THE 15:45:17 DEPARTMENT OF HOMELAND SECURITY THE COSTS THAT WE ARE EXPENDING. 15:45:21 AND OUR DEPARTMENT'S RESPONSE, THAT INCLUDES THE COAST GUARD. 15:45:26 IT WILL NOT BE AN INSIGNIFICANT SUM. 15:45:29 AND WE HAVE ASKED THROUGH THE NRT THAT THE OTHER FEDERAL 15:45:32 AGENCIES KEEP TRACK OF THE COSTS THAT THEY ARE EXPENDING. 15:45:35 IT WOULD BE -- SINCE WE ARE REALLY IN THE MIDDLE OF 15:45:39 RESPONSES, I INDICATED TO SENATOR McCAIN, I THINK IT WOULD 15:45:41 BE PREMATURE TO GIVE YOU AN ESTIMATE OF THAT. 15:45:46 AND I JUST WANT TO RESTATE AND I DON'T HAVE THE FULL COST 15:45:51 OF WHAT THE ESTIMATES WILL BE, AND I'M ASSUMING BP HAVE STEPPED 15:45:54 UP AS THEY HAVE SAID AND COVER ALL OF THESE COSTS FOR 15:45:57 INDIVIDUALS, FOR BUSINESSES, FOR THE GOVERNMENT AT EVERY LEVEL. 15:46:03 AND I KNOW THAT THEY HAVE BEEN FORTHCOMING WITH SOME OF THE 15:46:05 REQUESTS FROM OUR GOVERNORS, $25 MILLION IN AUTHORITY UP TO A 15:46:10 MILLION DOLLARS FOR SOME OF THE COUNTIES, WHICH HAS BEEN 15:46:12 IMPRESSIVE BUT WE MAY NEED MORE THAN THAT. 15:46:15 BUT IT'S THE RESEARCH AND DEVELOPMENT DOLLARS IN THESE 15:46:19 MAJOR AGENCIES THAT I'M WONDERING CONSIDERING THIS 15:46:22 INDUSTRY, JUST THE INDUSTRY FOR BONUSES AND SEVERANCE, HAVE 15:46:28 CONTRIBUTED $165 BILLION TO THE FEDERAL TREASURY SINCE 1955. 15:46:33 $165 BILLION. WHAT PERCENTAGE OF OUR BUDGETS 15:46:39 AND THEIR BUDGETS I'M GOING TO BE ASK THEM IS GOING TO RESEARCH 15:46:44 AND DEVELOPMENT ON SPECIFICALLY SAFETY, EQUIPMENT, NEW 15:46:46 TECHNOLOGY, AND CLEANUP. BECAUSE WE MAY NEED TO SUGGEST 15:46:52 MORE MONEY TO MAKE SURE THIS NEVER HAPPENS AGAIN. 15:46:55 SO WE'RE GOING TO TRY TO COLLECT THOSE -- THAT DATA, 15:46:57 MR. CHAIRMAN. AND MY TIME HAS EXPIRED. 15:47:02 SO THANK YOU. SENATOR PRYOR? 15:47:04 THANK YOU, MR. CHAIRMAN. I WANT TO THANK YOU AND SENATOR 15:47:07 COLLINS FOR LEADING THE EFFORT ON THIS. 15:47:10 AND LET ME, IF I MAY, MADAM SECRETARY, START WITH YOU. 15:47:15 AND THAT IS JUST, YOU KNOW, ABOUT THE STAFFORD ACT. 15:47:19 AND TYPICALLY A DISASTER HAPPENS AND GOVERNORS MAKE REQUESTS. 15:47:23 I'M ASSUMING THAT YOU'VE ALREADY DONE QUITE A BIT OF WORK WITH 15:47:26 THE GOVERNORS TO UNDERSTAND THE SCOPE AND THE NATURE OF THEIR 15:47:28 REQUEST. AND COULD YOU GIVE US JUST A 15:47:33 LITTLE OUTLINE ON WHAT YOU THINK THIS NEXT FEW WEEKS MIGHT LOOK 15:47:36 LIKE DOWN THERE? YES. 15:47:39 WELL, WE HAVE REPRESENTATIVES OF THE GOVERNORS IN ALL OF THE 15:47:46 VARIOUS COMMAND CENTERS DOWN THERE AS WELL AS -- WE HAVE A 15:47:48 DAILY CALL WITH THE GOVERNORS. WE ARE WORKING WITH THEM NOW ON 15:47:56 WHAT THE CLAIMS PROCESS SHOULD BE FOR STATES AND LOCALITIES. 15:47:59 WE'RE VERY COGNIZANT OF LONG-TERM ECONOMIC DAMAGES THAT 15:48:03 MIGHT PERTAIN SUCH AS TO SOME OF THE FISHERIES DOWN THERE THAT 15:48:07 HAVE BEEN CLOSED BY NOAA ALREADY. 15:48:10 AND SO WE'RE WORKING OUR WAY THROUGH THAT. 15:48:13 THIS IS -- AS YOU KNOW, SENATOR, THIS IS NOT A STAFFORD ACT 15:48:16 SITUATION. THIS COMES UNDER ANOTHER STATUTE 15:48:20 ALL TOGETHER. AND THE DIFFERENCE IS HUGE 15:48:24 BECAUSE UNDER THE STAFFORD ACT, THE TAXPAYERS OF THE UNITED 15:48:29 STATES PAY FOR THE RESPONSE. UNDER THIS ONE, THE RESPONSIBLE 15:48:33 PARTY IS GOING TO PAY. AND SO WE'RE IN THE PROCESS OF 15:48:37 MAKING SURE THERE'S A GOOD AND EASY PROCEDURE FOR THOSE CLAIMS 15:48:40 TO BE MADE. OKAY. 15:48:41 GOOD. AND LET ME ASK REAR ADMIRAL 15:48:51 NEFFENGER, IF I MAY, WITH YOU. I KNOW THAT, FOR EXAMPLE, OTHER 15:48:56 CIRCUMSTANCES, FEMA, FOR EXAMPLE, MIGHT BURN THROUGH 15:49:00 RESOURCES VERY RAPIDLY ON A MAJOR DISASTER. 15:49:03 IS THAT TRUE WITH YOUR AGENCY AND HOW YOU'RE DEALING WITH 15:49:05 THIS? WELL, AS A THE SECRETARY 15:49:11 MENTIONED, YOU KNOW, WE ARE SPENDING MONEY EVERY DAY TO 15:49:12 MANAGE THIS RESPONSE. BUT AS SHE ALSO MENTIONED, WHAT 15:49:16 THE OIL POLLUTION ACT OF 1990 PROVIDES IS AN ABILITY TO REACH 15:49:20 INTO THE OIL SPILL LIABILITY TRUST FUND. 15:49:26 THE EMERGENCY FUND OF THAT. THERE'S AN INITIAL $50 MILLION 15:49:29 AVAILABLE. WE CAN TAKE A ONE-TIME TRANSFER 15:49:33 OF ANOTHER $100 MILLION INTO THAT EMERGENCY FUND, WHICH WE 15:49:35 HAVE DONE. WE'VE ASKED FOR AND HAS BEEN 15:49:37 GRANTED. SO THAT PROVIDED $150 MILLION TO 15:49:42 THE FEDERAL GOVERNMENT FOR ITS RESPONSE ACTION. 15:49:46 AND THAT'S PRIMARILY PAYING FOR COAST GUARD ACTIVITIES AT THIS 15:49:47 POINT. AND I KNOW EITHER IN THIS 15:49:52 COMMITTEE OR IN OTHER COMMITTEES, WE'VE TALKED ABOUT 15:49:56 THE COAST GUARD BEFORE AND HOW YOU GUYS JUST DO GREAT WORK. 15:50:00 AND WE SAW IT DOWN ON THE GULF COAST AFTER KATRINA AND WE'VE 15:50:03 SEEN IT MANY, MANY TIMES. BUT ALSO WE RECOGNIZE THAT 15:50:07 REALLY IN MANY WAYS, YOU'RE UNDERRESOURCED. 15:50:11 AND YOU HAVE A BACKLOG OF OLDER SHIPS THAT YOU'RE TRYING TO 15:50:14 UPDATE OR REPLACE AND ALL THAT. HAS THE FACT THAT YOU'VE BEEN 15:50:20 HAMPERED FROM A BUDGETARY SENSE -- CAN YOU SEE THAT AND 15:50:24 HOW ARE YOU ABLE TO RESPOND TO THIS? 15:50:28 OUR BUDGET SITUATION IS NOT HAMPERED OUR RESPONSE INITIALLY 15:50:31 TO THIS. OBVIOUSLY, FOR ANY AGENCY, A 15:50:34 LONG-TERM SUSTAINED RESPONSE TO SOMETHING OF THIS MAGNITUDE 15:50:36 BECOMES A CHALLENGE. AND THAT WOULD BE THE CASE NO 15:50:38 MATTER HOW MANY PEOPLE YOU HAVE. I THINK AS THE SECRETARY SAID, 15:50:43 SUSTAINABILITY IS ONE OF THE CRITICAL CONCERNS THAT WE'RE 15:50:44 LOOKING AT RIGHT NOW. HOW DO YOU -- HOW DO YOU DO THIS 15:50:48 IF IT WERE TO GO ON FOR SOME EXTENDED PERIOD OF TIME. 15:50:52 WE HAVE QUITE A FEW FORCES SURGED TO THAT AREA RIGHT NOW. 15:50:54 AT SOME POINT WE HAVE TO LOOK AT WHAT THE IMPACT AND THE RISK 15:50:57 POSITION WE TAKE THROUGHOUT THE REST OF THE COUNTRY AS WE PULL 15:51:00 THOSE RESOURCES FROM OTHER PARTS OF THE COUNTRY. 15:51:05 AND I KNOW YOUR OFFICE AS WELL AS FEMA AND MANY OTHER 15:51:12 FEDERAL, LOCAL STATE AGENCIES TRY TO ANTICIPATE VARIOUS 15:51:16 DISASTERS AND, YOU KNOW, RUN THROUGH EXERCISES AND GAME THEM 15:51:19 OUT TO TRY TO UNDERSTAND WHAT ALL WOULD HAPPEN, WERE YOU ABLE 15:51:21 TO DO THIS? HAVE YOU BEEN DOING THIS IN 15:51:26 YEARS PAST WITH A MAJOR OIL EVENT LIKE THIS? 15:51:30 WELL, EVERY THREE YEARS SOMEWHERE IN THE COUNTRY WE DO 15:51:32 WHAT WE CALL A SPILL OF NATIONAL SIGNIFICANCE EXERCISE. 15:51:36 AND THAT'S A FULL SCALE DEPLOYMENT EXERCISE WHERE WE 15:51:40 SIMULATE A MASSIVE OIL DISCHARGE OF SOME SORT. 15:51:43 THE MOST RECENT ONE WAS ON THE NORTHEAST OFF THE COAST OF 15:51:47 PORTLAND, MAYBE McCAIN WHERE WE DID A SPILL OF SIGNIFICANT 15:51:51 SIMULATING A LARGE TANKER OIL SPILL. 15:51:55 THE ONE THAT SENATOR COLLINS WAS ONE THAT I PARTICIPATED IN 2004 15:51:58 OFF THE SOUTHERN COAST OF CALIFORNIA. 15:52:02 AGAIN SIMULATING A TANKSHIP RUPTURING AND SPILLING A LOT OF 15:52:06 OIL. WE DO EXERCISE FOR MASSIVE OIL 15:52:10 DISCHARGES PERIODICALLY THROUGHOUT THE COUNTRY. 15:52:12 AND IN EVERY CAPTAIN OF THE PORT ZONE AND FEDERAL ZONE, THERE'S A 15:52:18 CYCLE OF EXERCISES THAT ARE REQUIRED TO BE CONDUCTED ON AN 15:52:24 ANNUAL, BIANNUAL AND TRIANNUAL BASIS. 15:52:25 I WOULD SAY WE EXERCISE QUITE A BIT. 15:52:28 ALTHOUGH THOSE FULL SCALE EXERCISES ARE EVERY THREE YEARS 15:52:30 AND THEY'RE NOT NECESSARILY IN EVERY ZONE EVERY THREE YEARS. 15:52:34 BUT IT SOUNDS LIKE THOSE EXERCISES HAVE PAID OFF FOR YOU 15:52:37 IN HOW YOU'VE BEEN ABLE TO RESPOND TO THIS? 15:52:38 WELL, I THINK THEY HAVE. CLEARLY, THE RESPONSE THAT WE 15:52:44 WERE ABLE TO MOUNT TO THIS SPILL IS A SIGNIFICANT IMPROVEMENT 15:52:46 OVER WHAT YOU'VE MIGHT HAVE SEEN 20 YEARS AGO PRIOR TO THE EXXON 15:52:49 SPILL. BEFORE WE HAD THIS PROGRAM IN 15:52:51 PLACE. THERE'S A ROBUST EXERCISE 15:52:56 OVERSIGHT PROGRAM THAT WE HAVE CALLED THE PREP, 06:53:44 15:53:47 AND THANK YOU VERY MUCH FOR YOUR ANSWERS. 15:53:49 MR. CHAIRMAN, I'D LIKE TO NOTE IN OUR SUBCOMMITTEE, THE STATE, 15:53:52 LOCAL PRIVATE SECTOR PREPAREDNESS AND INTEGRATION 15:53:56 SUBCOMMITTEE, WE'RE ACTUALLY HAVING A HEARING ON MAY 25th 15:54:00 ABOUT THIS AND GO INTO MORE DETAIL ABOUT WHAT STATE, LOCAL 15:54:04 AND PRIVATE SECTOR HAVE BEEN DOING FOR THIS. 15:54:06 THANK YOU, SENATOR PRYOR, I APPRECIATE YOUR SUBCOMMITTEE IS 15:54:08 DOING THAT. I'D LIKE IF YOU WOULD STICK 15:54:14 AROUND AND WE'LL DO A SECOND ROUND. 15:54:16 AS I HEAR THE QUESTIONS BACK AND FORTH, IT SEEMS TO ME THAT 15:54:22 POST-EXXON VALDEZ, THE INVOLVEMENT AND THE OIL INDUSTRY 15:54:25 HAVE WORKED TOGETHER TO GET VERY GOOD AT DEALING WITH A MAJOR 15:54:28 SPILL AT THE SURFACE. BUT I STILL REMAIN TO BE 15:54:34 CONVINCED, ONE, THAT WE DID ENOUGH TO PREVENT THIS DEEP 15:54:37 WATER ACCIDENT IN THE WELL FROM OCCURRING. 15:54:38 AND, TWO, THAT WE'RE READY TO DEAL WITH THE UNBELIEVABLE 15:54:43 CONSEQUENCES OF IT UNDER WATER. IN THAT REGARD, I WANTED TO ASK 15:54:48 BOTH OF YOU THIS QUESTION -- WE'VE BEEN READING IN THE MEDIA 15:54:53 IN THE LAST FEW DAYS THAT THERE ARE SCIENTISTS WHO BELIEVE -- 15:54:59 WHO HAVE ESSENTIALLY DISCOVERED AND ARE REPORTING GIANT DEEP SEA 15:55:03 PLUMES OF OIL IN THE GULF AS A RESULT OF THIS ACCIDENT. 15:55:06 ONE OF WHICH MEASURED 10 MILES LONG, 3 MILES WIDE, AND 300 FEET 15:55:11 THICK IN SPOTS. WHAT ARE WE CAPABLE OF DOING TO 15:55:21 TRY TO BREAK THAT UP? AND IF WE DON'T, WHAT'S GOING TO 15:55:26 HAPPEN TO IT? IN OTHER WORDS, THE CONSEQUENCES 15:55:30 HERE FOR THE ENVIRONMENT, OBVIOUSLY, THE GULF'S 15:55:33 ENVIRONMENT ARE POTENTIALLY VERY SEVERE. 15:55:34 INDEED, MR. CHAIRMAN. I THINK FIRST OF ALL WE HAVE TO 15:55:43 BE CAREFUL RIGHT NOW ABOUT WHAT IS BEING ASSUMED ABOUT THE 15:55:46 UNDERSEA PLUME AND NOT. YEAH. 15:55:48 I THINK THE HEAD OF NOAA THIS AFTERNOON PUT OUT A STATEMENT 15:55:53 SAYING THAT SOME OF THOSE EARLY REPORTS THAT HAD BEEN MADE WERE 15:55:58 NOT BASED ON OBSERVATION. AND HAD NOT BEEN VERIFIED AND 15:56:01 CONFIRMED. CERTAINLY BY SOME OF THE OTHER 15:56:05 WORK THAT WAS BEING -- WELL, THAT'S IMPORTANT FOR US 15:56:06 TO HEAR. OBVIOUSLY, WE NEED TO 15:56:11 CONTINUE TO WATCH THE UNDERSEA PLUME TO THE EXTENT ONE DEVELOPS 15:56:19 VERSUS, YOU KNOW, IN ADDITION TO THE TOP OF THE SEA SPILL. 15:56:26 SO THAT PROCESS IS BEING LOOKED AT WITH A CONSORTIUM REALLY OF 15:56:31 GOVERNMENT SCIENTISTS WHO CONTINUE TO LOOK AT WHAT'S GOING 15:56:33 ON UNDERNEATH THE SURFACE OF THE OCEAN? 15:56:34 WHAT'S HAPPENING THERE? AND AGAIN, I THINK NOAA DIRECTOR 15:56:40 REALLY RESPONDED VERY STRONGLY TO SOME OF THESE EARLY 15:56:46 STATEMENTS THAT HAD NOT BEEN VERIFIED AND SEEM INACCURATE. 15:56:51 NOW SECONDLY, THE EPA HAS APPROVED THE UNDERSEA USE OF 15:56:54 DISBURSEMENTS. -- DISPERSEMENTS. 15:57:02 IT'S VERY NOVEL AND IT'S DONE IN A CONTROLLED WAY. 15:57:03 EVERY TIME WE DO SOMETHING LIKE THAT, YOU HAVE -- YOU KNOW, YOU 15:57:09 HAVE TO EXPLORE KIND OF THE ENVIRONMENTAL TRADEOFFS THAT ARE 15:57:10 BEING MADE. BUT EPA HAS A VERY RIGOROUS 15:57:17 PROTOCOL HOW THAT WILL BE DONE AND THE CONTINUOUS MONITORING 15:57:20 THAT WILL BE HAPPENING. AND SO THOSE UNDERSEA 15:57:27 DISPERSANTS ARE BEING INJECTED IN THE LAST FEW DAYS. 15:57:32 IT SEEMS WE'RE EXPERIMENTING BECAUSE THIS IS SOMETHING 15:57:36 UNPRECEDENTED AND UNANTICIPATED BY THE REGULATORY PROCESS. 15:57:41 ANY, THE ONE THAT THE MINERALS MANAGEMENT SERVICE IMPOSED ON 15:57:43 THE COMPANIES PRIOR TO GRANTING PERMISSION ON THIS WELL. 15:57:48 ADMIRAL, LET ME ASK YOU INSOFAR AS THE COAST GUARD OBVIOUSLY HAS 15:57:54 SUPERVISION OVER MARINE OIL SPILLS, ISN'T THERE A DANGER 15:57:59 THAT THESE ENORMOUS PLUMES WILL BE TAKEN BY THE CURRENT AND 15:58:03 MOVED FAR AWAY FROM THE ACTUAL SOURCE OF THE SPILL NOW? 15:58:08 AND THAT COULD HAVE VERY, VERY WIDE-RANGING AND BAD 15:58:10 ENVIRONMENTAL EFFECTS? I THINK -- MR. CHAIRMAN, I 15:58:15 THINK YOU'RE REFERRING TO THE LOOP CURRENT THAT'S BEEN TALKED 15:58:17 ABOUT. YES, YES. 15:58:18 I KNOW THAT WE'VE BEEN WATCHING THAT VERY CAREFULLY. 15:58:21 WE'RE USING -- NOAA IS HELPING US TO MODEL THE LOCATION. 15:58:24 CURRENTLY IT SHOWS TO BE SOMEWHERE IN THE NEIGHBORHOOD OF 15:58:27 40 TO 50 MILES FROM THE SOUTHERN EDGE OF THE SPILL. 15:58:29 SO WE ARE WATCHING THAT CAREFULLY. 15:58:34 AND AS A RESULT OF THAT, WE'RE PREPARING FOR THE SOUTHERN 15:58:38 FLORIDA COAST. I WILL SAY THE OTHER THING, THE 15:58:45 MATERIAL THAT WILL BE PICKED UP IN THE LOOP CURRENT IS HEAVILY 15:58:48 WEATHERED OIL. TAR BALLS FORMING ON THE 15:58:51 BEACHES. THEY COME ASHORE IN WAYS IN 15:58:57 WHICH IT'S RELATIVELY EASY TO CLEAN UP. 15:58:58 IT'S NOT A GOOD THING. IT WILL BE A MORE MANAGEABLE 15:59:01 PIECE THAT WE'LL DEAL WITH THERE THAN WHAT WE'RE CURRENTLY 15:59:05 LOOKING OUT IN THE GULF, SIR. WE'LL GO TO THE FINAL WORD TO 15:59:07 THE SECRETARY. HAVE YOU ENCOUNTERED UNDERWATER 15:59:15 SEA PLUMES OF OIL OF THE DIMENSIONS BEING DISCUSSED IN 15:59:19 YOUR EXPERIENCE WITH THE COAST GUARD? 15:59:20 NO, SIR. THIS IS THE FIRST TIME I'VE SEEN 15:59:23 A LEAK OF THIS DEPTH THAT POSES THESE KINDS OF COMPLEXITIES. 15:59:25 SECRETARY? I WAS JUST GOING TO MENTION 15:59:28 THAT. IN RESPECT TO THE LOOP CURRENT, 15:59:34 THE NUMBERS ARE AS THE REAR ADMIRAL SAID IN TERMS OF 15:59:36 DISTANCE, WE'RE MONITORING IT VERY CLOSELY. 15:59:38 BUT WE'RE ACTUALLY TREATING IT AS IF IT WERE ITS OWN COASTLINE. 15:59:44 IN OTHER WORDS, THAT IF WE WERE TO SEE THAT THE OIL REALLY WAS 15:59:46 BEGINNING TO MOVE TOWARD THE LOOP CURRENT, WE WOULD BEGIN 15:59:52 DOING SOME THINGS BY WAY OF DISPERSANT AND BOOMING AS IF THE 15:59:56 LOOP CURRENT ITSELF WERE A PIECE OF THE COAST. 15:59:57 THANK YOU. MY TIME IS UP. 15:59:59 SENATOR COLLINS? THANK YOU.