Oil spill: BP allegedly underestimated oil spill and neglected maintenance
FR3 / France 3
US Oil 2
AP-APTN-2330: US Oil 2 Thursday, 17 June 2010 STORY:US Oil 2- WRAP Congress hearing into Gulf oil spill; BP CEO, briefing LENGTH: 03:21 FIRST RUN: 2030 RESTRICTIONS: AP Clients Only TYPE: English/Nat SOURCE: AP TELEVISION/POOL/BP Handout STORY NUMBER: 648778 DATELINE: Washington DC, 17 June 2010 LENGTH: 03:21 AP TELEVISION - AP CLIENTS ONLY POOL - AP CLIENTS ONLY BP HANDOUT - AP CLIENTS ONLY SHOTLIST (FIRST RUN 1630 EUROPE PRIME NEWS - 17 JUNE 2010) POOL - AP CLIENTS ONLY Washington, DC 1. Various, BP Chief Executive Tony Hayward swearing an oath before the committee 2. Various, woman identified as Diane Wilson interrupting Hayward, being restrained 3. UPSOUND: (English) Diane Wilson, protester: "You need to charged with a crime. You need to go to jail about (unintelligible) ... You need to be charged with a crime." 4. SOUNDBITE: (English) Tony Hayward, BP CEO: ++Soundbite starts on back view of Hayward testifying++ "The explosion and fire aboard the Deepwater Horizon and the resulting oil spill in the Gulf of Mexico never should have happened and I am deeply sorry that it did. " 5. Back view of Hayward testifying 6. SOUNDBITE: (English) Bart Stupak, Democrat representative from Michigan, the panel's chairman: ++Includes cutaway of Hayward listening++ "Mr Hayward, you owe it to all Americans. We are not small people, but we wish to get our lives back. For the Americans who live and work on the Gulf coast it may be years before they get their lives back. For the Americans who lost their lives on the rigs, their families may never get their lives back." 7. Mid shot of hearing ++NEW (FIRST RUN 2030 LATAM PRIME NEWS - 17 JUNE 2010) POOL - AP CLIENTS ONLY Washington, DC 8. SOUNDBITE: (English) Tony Hayward, BP CEO: ++Soundbite starts on Congressman Henry Waxman listening:++ "I'm not prepared to draw conclusions about this accident until such time as the investigation is concluded." 9. SOUNDBITE: (English) Henry Waxman, Democrat representative for California: "Are you failing to cooperate with other investigators as well? Because they are going to have a hard time reaching conclusions if you stonewall them, which is what we seem to be getting today." 10. SOUNDBITE: (English) Tony Hayward, BP CEO: "I'm not stonewalling. I simply was not involved in the decision making process." 11. SOUNDBITE: (English) Henry Waxman, Democrat representative for California: "What is your conclusion?" 12. SOUNDBITE: (English) Tony Hayward, BP CEO: "I haven't drawn a conclusion, Mr Chairman." 13. SOUNDBITE: (English) Henry Waxman, Democrat representative for California: "I see. My time has expired and I'm just amazed at this testimony Mr Hayward. You are not taking responsibility, you're kicking the can down the road and acting as if you have nothing to do with this company and nothing to do with the decisions." 14. SOUNDBITE: (English) Steve Scalise, Republican representative - Louisiana: "This shouldn't be happening (holding up a photograph of a pelican covered in oil). We put plans in place to stop this from happening and our plans are not being approved. Now I would love it if our plans were being rejected because there were better alternatives that were being offered by somebody that were being approved - but there are no other alternatives." 15. Pull out of Congressmen 16. SOUNDBITE: (English) Joe Barton, Republican Representative - Texas: "But, I am ashamed of what happened in the White House yesterday. I think it is a tragedy of the first proportion that a private corporation can be subjected to what I would characterise as a shakedown." 17. SOUNDBITE: (English) Bruce Braley, Democrat representative - Iowa: "Did you consider that to be a slush fund?" 18. SOUNDBITE: (English) Tony Hayward, BP CEO: "As I said in my testimony, I hope people will now see that we are good for our word." 19. SOUNDBITE: (English) Bruce Braley, Democrat representative - Iowa: "And can we take that as a no in response to my question, sir, that you did not consider this to be a slush fund?" 20. SOUNDBITE: (English) Tony Hayward, BP CEO: "I certainly didn't think it was a slush fund." ++NEW (FIRST RUN 2030 LATAM PRIME NEWS - 17 JUNE 2010) AP TELEVISION - AP CLIENTS ONLY Washington, DC 21. SOUNDBITE: (English) Joseph Biden, US Vice President: "There is no shakedown; it's insisting on responsible conduct and a responsible response to something they caused. And I find it outrageous to suggest that if in fact we insisted that BP demonstrate their preparedness to put aside (b) billions of (US) dollars; in this case 20 (b) billion (US dollars) to take care of the immediate needs of people who are drowning." ++NEW (FIRST RUN 2030 LATAM PRIME NEWS - 17 JUNE 2010) BP HANDOUT - AP CLIENTS ONLY Gulf of Mexico 22. Underwater shot of oil spill STORYLINE: American Members of Congress channelled the nation's anger over the oil spill calamity at the boss of the company that caused it, subjecting BP chief executive Tony Hayward to a withering day of judgment on Thursday. The stoic oil man said he was out of the loop on all decisions at the well and coolly asserted, "I'm not stonewalling." That infuriated members of Congress even more, Democrats and Republicans alike. The pillorying had been anticipated for days and unfolded at a nearly relentless pace. Chastened by heavy criticism from American lawmakers, a grim-faced Hayward said on Thursday he was "deeply sorry" for his company's catastrophic oil spill in the Gulf of Mexico. More than eight weeks after the spill began and a day after BP agreed to a 20 (b) billion US dollar victims' compensation fund, Hayward said under oath to lawmakers that he was "personally devastated" by the April explosion of the Deepwater Horizon oil rig that triggered the giant spill. As Hayward began to testify, a woman protester disrupted the hearing and had to be forcibly removed from the room by Capitol police. The woman, identified as Diane Wilson, shouted to Hayward from the back of the room: "You need to be charged with a crime." A group of protesters milled in the hallway outside the hearing room, including Wilson, a 61-year-old fourth-generation fisher from Seadrift, Texas, near the Gulf Coast. Wilson, appearing with a black-stained hand, said she wanted to send a message that Hayward should go to jail. She was grabbed by Capitol police and taken from the room. "The fire and explosion on the Deepwater Horizon never should have happened and I'm deeply sorry that it did," Hayward told the panel. And, while "we need to know what went wrong" Hayward also said that it was still too early to say what caused the incident. But before testifying, Hayward had to endure more than an hour of mostly unrelenting criticism from Democrats and Republicans alike. The panel's chairman Democratic Congressman Bart Stupak told Hayward, "We are not small people, but we wish to get our lives back." Stupak was throwing back at the oil giant comments made the day before by BP Chairman Carl-Henric Svanberg - about how BP sympathised with the "small people" of the Gulf - and Hayward's earlier remark that he wanted his "life back." With multiple investigations continuing and primary efforts focused on stopping the leak, there was little chance the nation would learn much from Hayward's appearance about what caused the disaster. Yet even those modest expectations were not met as the CEO told lawmakers at every turn that he was not tuned in to operations at the well. He said his underlings made the decisions and federal regulators were responsible for vetting them. Hayward spoke slowly and calmly in his clipped British accent as he sought to deflect accusations - based on internal BP documents obtained by congressional investigators - that BP chose a particular well design that was riskier but cheaper by at least 7 (m) million US dollars. At one point a frustrated California Representative, Henry Waxman, Democratic chairman of the House Energy and Commerce Committee, interrupted the CEO. "You are not taking responsibility, you're kicking the can down the road and acting as if you have nothing to do with this company and nothing to do with the decisions." Hayward calmly insisted: "I'm not stonewalling. I simply was not involved in the decision-making process." Louisiana Republican Steve Scalise, expressing the frustration felt along the Gulf Coast, demanded Hayward's assistance in getting more relief to stopping the oil from coming ashore. In a jarring departure that caught fellow Republicans by surprise, Congressman Joe Barton, the top Republican on the panel, used his opening statement to apologise - twice - to BP for the pressure put on the company by President Barack Obama to contribute to a compensation fund for people in the afflicted Gulf of Mexico states. Barton called the 20 (b) billion US dollar fund that BP agreed to Wednesday a "shakedown" and "slush fund." He later backed off, saying BP should "do everything possible to make good on the consequences" and apologised in the event his earlier apologies were misconstrued. Barton's received at least 100,470 US dollars in political contributions from oil and gas interests since the beginning of 2009, the second-highest amount among all the committee members. Iowan Democrat Bruce Braley sought Hayward's opinion on the "shakedown." In response, Hayward admitted that he didn't think the amount set aside after meetings at the White House Wednesday was a "slush fund." Vice President Joe Biden later called the shakedown comment "outrageous." "There is no shakedown; it's insisting on responsible conduct and a responsible response to something they caused." As of Thursday morning, the BP well has gushed as many as 118 million gallons (447 million litres) of oil into the Gulf of Mexico. Clients are reminded: (i) to check the terms of their licence agreements for use of content outside news programming and that further advice and assistance can be obtained from the AP Archive on: Tel +44 (0) 20 7482 7482 Email: infoaparchive.com (ii) they should check with the applicable collecting society in their Territory regarding the clearance of any sound recording or performance included within the AP Television News service (iii) they have editorial responsibility for the use of all and any content included within the AP Television News service and for libel, privacy, compliance and third party rights applicable to their Territory. APTN APEX 06-17-10 1933EDT
US Oil Profits - Hearing at Capitol Hill on high oil prices
NAME: US OIL PROFITS 091105N TAPE: EF05/0995 IN_TIME: 11:12:18:19 DURATION: 00:03:50:04 SOURCES: APTN/POOL/VNR DATELINE: Various - 9 Nov 2005/File RESTRICTIONS: SHOTLIST POOL Washington DC - 9 November 2005 1. Oil executives seated at table 2. Senators seated on panel 3. SOUNDBITE (English) Senator Pete Domenici (R- New Mexico): "Most Americans in most of the polls show, that our people have a growing suspicion that the oil companies are taking unfair advantage of the current market conditions to line their coffers with excess profits." 4. Exxon and Chevron executives listening 5. SOUNDBITE (English) Senator Pete Domenici (R- New Mexico): "The oil company witnesses owe company an explanation and they owe it to us as those who represent the people. I expect the witnesses to answer whether you think your current profits are excessive?" 6. Conoco Phillips and BP America executives listening 7. Pan of oil executives 8. SOUNDBITE (English) Lee Raymond, Chairman and CEO, Exxon Mobil Corporation: "The increases in energy prices following Hurricanes Katrina and Rita have put a strain on American household budgets. We recognise that." 9. Senator Byron Dorgan listening and taking notes 10. SOUNDBITE (English) Lee Raymond, Chairman and CEO, Exxon Mobil Corporation: "First, given the scale and the long term nature of the energy industry there are no quick fixes and there are no short term solutions. Second, petroleum company earnings go up and down since prices for the openly and globally traded commodities in which we deal are volatile." 11. Senators Lott and Hutchison listening 12. Wide of hearing 13. SOUNDBITE (English) David O'Reilly, Chairman of Chevron: "Price volatility was also driven by localised panic buying which led to temporary shortages of gasoline and as we began to normalise in the days and weeks that followed, prices began to moderate. But the more important issue is that we've been operating in a tighter supply situation for some time now." 14. O'Reilly speaking 15. SOUNDBITE (English) John Hofmeister, President of Shell Oil Company: "And yes, industry profits are large in total dollars. But they represent an average return on sales in cross-industry comparisons." 16. Senators listening 17. SOUNDBITE (English) Senator Barbara Boxer (D- California): "Mr Chairman, today's hearing in the mind of most of my constituents is about shared sacrifices and tough times versus big oil company greed. And gentlemen, to all of you, I hope I can give you a bit of reality check. Working people struggle with high gas prices and your sacrifices , gentlemen, appears to be nothing." 18. Boxer aide holding up chart comparing Oil exec bonuses to typical American salaries FILE - APTN Miami, Florida - 26 October, 2005 19. Various of people in line for fuel FILE - Washington DC - 27 October, 2005 20. Man pumping fuel 21. Fuel prices while man pumps 22. Sign of fuel prices FILE -EXXON MOBIL VNR Location Unknown 23. Various of Exxon Mobil Operations FILE - APTN Gulf of Mexico- October 2005 24. Various aerial of oil refineries and storage facilities flooded by hurricanes STORYLINE: The chiefs of five major oil companies defended the industry's huge profits Wednesday at a US Senate hearing where lawmakers said they should explain prices and assure people they're not being gouged. There is a "growing suspicion that oil companies are taking unfair advantage," Senator Pete Domenici said as the hearing opened in a packed Senate committee room. "The oil companies owe the country an explanation," he said. Lee Raymond, chairman of Exxon Mobil Corp., said he recognises that high gasoline prices "have put a strain on Americans' household budgets" but he defended his companies huge profits, saying petroleum earnings "go up and down" from year to year. ExxonMobil, the worlds' largest privately owned oil company, earned nearly 10 billion (b) US dollars in the third quarter. Raymond was joined at the witness table by the chief executives of Chevron, ConocoPhillips, BPAmerica and Shell Oil USA.` Together the companies earned more than 25 billion (b) US dollars in profits in the July-September (2005) quarter as the price of crude oil hit $70 a barrel and gasoline surged to record levels after the disruptions of Hurricanes Katrina and Rita. John Hofmeister, president of Shell Oil Company said the profits are in line with other industries when profits are compared to the industry's enormous revenues. Democrats had wanted the executives to testify under oath, but Republicans rejected the idea. A number of Democrats, joined by a few Republicans, have called for a windfall profits tax on oil companies. The executives hoped to dampen any further momentum for calls for taxing windfall oil company profits, something still viewed as a longshot but also no longer out of the question. Such a tax could inhibit investment in refineries or oil exploration and production, the industry argues. David O'Reilly, chairman of Chevron, attributed the high energy prices to tight supplies even before the Gulf hurricanes hit and said his company is "investing aggressively in the development of new energy supplies." The oil industry's record third-quarter profits - at a time when motorists were reeling from unprecedentedly high gasoline costs and warned of huge heating bills this winter - have caught the attention of both Republicans and Democrats in Congress. Senator Barbara Boxer of California put up a chart showing the annual salaries and bonuses of the oil executives, comparing them to the average income of an American taxpayer. She urged the men to use some of their income to fund charities helping people with their high heating bills this winter. Some analysts predict the 29 largest oil companies will earn 96 billion (b) US dollars this year. The industry argues that the run-up of gasoline prices, which began earlier in the year, stems from high global crude oil costs and growing demand for gasoline this past summer, followed by a disruption of gasoline supplies when the hurricanes shut down more than a dozen refineries on the Gulf Coast. Prices since have retreated from more than 3 US dollars a gallon to an average nationwide last week of 2.37 dollars, according to the Energy Department.
US Oil - Prices up despite Saudi output increase
NAME: US OIL 20080623Ix TAPE: EF08/0650 IN_TIME: 10:26:46:02 DURATION: 00:03:09:09 SOURCES: AP TELEVISION/PETROLEUM INSTITUTE DATELINE: New York - 23 June 2008/ File RESTRICTIONS: SHOTLIST: AP Television New York - 16 June, 2008 1. Interior New York Mercantile Exchange (NYMEX) 2. Traders on floor of NYMEX AP Television New York - 23 June 2008 3. SOUNDBITE (English) Anthony Grisanti, GRZ Trading: "We expected them (Saudi Arabia) to commit, really truly commit, to an increase in production and they didn't really do that. I mean, they didn't want to get pinned down on anything and so they said, 'We will increase it if the conditions kind of deserve it.' And, you know, I think if you ask most people around the world, the conditions do deserve it. But they haven't committed to anything so I think most traders looked at that as pretty much as a non-issue coming out of that meeting and you know the buyers came in, right back in again." American Petroleum Institute FILE: Exact location unknown - June, 2001 4. Aerial shot oil tanker 5. Aerial shot oil platform AP Television New York - 23 June 2008 6. SOUNDBITE (English) Anthony Grisanti, GRZ Trading: "You know, this has been going on for a couple of years and it didn't matter at one point, only because there was other oil in the world to make it up, but now there really isn't any more oil to make up any short-falls, so this is why news like this kind of spikes the market." AP Television New York - 16 June, 2008 7. Traders on NYMEX floor AP Television New York - 23 June 2008 8. SOUNDBITE (English) Anthony Grisanti, GRZ Trading: "I'm not necessarily in the camp of that speculation is the reason why oil is trading 135 dollars a barrel. It's because it's being used is the reason why it's trading at 135 dollars a barrel. It's also because the dollar's where it is. I mean, in 2000, where was the dollar versus the euro? I think it was about a dollar, it was one-to-one, kind of a flat thing. Now it's, the Euro's at 1.50 dollars, so that's not helped the price of oil at all. No, I'm not in the camp that speculation has caused it." AP Television FILE: Washington DC - Exact date unknown 9. Wide US Capitol AP Television Washington DC - 23 June 2008 10. Senate hearing room 11. SOUNDBITE (English) Joe Barton, Congressman: "Speculators are not the cause of high energy prices. We have high energy prices because there's less than a one or two percent margin of supply over demand in world markets today. When you have that tight of a supply margin, a surplus reserve margin, you create a situation where speculators can drive the price higher because of the uncertainty principle concerning who's going to get that next barrel of oil." 12. Men about to testify at hearing 13. SOUNDBITE (English) Fadel Ghelt, Managing Director and Senior Oil Analyst, Oppenheimer and Company: "Oil prices are inflated. They are not supported by market fundamentals. And the reason I base my conclusion are extremely high is that, I've been in this business almost 30 years. I talk regularly to the CEOs of oil companies, from the largest of them all to the very small, independent, oil and gas companies. They all come to the same conclusion: that oil prices do not reflect market fundamentals. In my view we can produce oil profitably at less than half the current price levels." 14. Senate hearing room STORYLINE: Oil prices rose on Monday due to disappointment over Saudi Arabia's modest production increase and concerns that output from Nigeria will decline. Light, sweet crude for August delivery has gained 1.38 US dollars to settle at 136.74 US dollars a barrel Monday on the New York Mercantile Exchange, while in Washington, DC, lawmakers blamed the endless rise in oil prices on speculators. On Sunday, Saudi authorities attending a meeting of oil producing and consuming nations in the Saudi city of Jeddah said they would increase production, but not by much. The kingdom said it would add 200-thousand barrels per day in July to a 300-thousand barrel per day production increase it first announced in May, raising total daily output to 9.7 (m) million barrels. The increase fell far short of US hopes for a larger increase. The United States and other nations argue that oil production has not kept up with increasing demand, especially from China, India and the Middle East. Saudi Arabia and other Organisation of Petroleum Exporting Countries (OPEC) say there is no shortage of oil and instead blame financial speculation and the falling US Dollar. Anthony Grisanti, a trader on the New York Mercantile Exchange, said the news out of Saudi Arabia did not do much to stop oil's climb. "We expected them to commit, really truly commit, to an increase in production and they didn't really do that," Grisanti said. Concerns about Nigerian production also boosted prices on Monday. Royal Dutch Shell PLC said it cannot meet contractual obligations to export oil from a Nigerian oil field following a militant attack last Thursday, and news reports say Chevron Corp has been forced to shut down a Nigerian oil facility following a militant attack. Those production outages appeared to overshadow Sunday's ceasefire declaration by the Movement for the Emancipation of the Niger Delta, or MEND, the main militant group in Africa's largest oil producing nation. Attacks by MEND have sliced about one quarter from Nigeria's normal oil daily oil output, helping buoy crude prices in international markets. Despite the ceasefire, investors are not convinced that lost Nigerian oil production will resume any time soon, analysts say. Grisanti said trouble in Nigeria didn't cause much of a ripple in the price of oil a couple of years ago. "This has been going on for a couple of years and it didn't matter at one point, only because there was other oil in the world to make it up, but now there really isn't any more oil to make up any short-falls, so this is why news like this kind of spikes the market," he said. Many analysts have blamed the rise in oil prices on speculators. Speculators have increased their share of oil futures contracts on the New York Mercantile Exchange to 71 percent this year, up from 37 percent in 2000, according to figures released by the office of, Representative Bart Stupak, the chair of a House Energy and Commerce subcommittee. At the same time contracts held by traditional oil users have fallen to less than 30 percent from over 60 percent. In Washington on Monday, Stupak led a hearing to consider whether or not the government should regulate oil futures trading and several speakers blamed the precipitous hikes on speculation. However, Representative Joe Barton, a Republican from Texas, disagreed. "We have high energy prices because there's less than a one or two percent margin of supply over demand in world markets today," Barton said. The Texas lawmaker called for increased domestic production of oil, natural gas and coal. But Oppenheimer oil analyst Fadel Gheit disagreed, and said oil prices were not supported by market fundamentals. "In my view we can produce oil profitably at less than half the current price levels," Gheit said. Pension funds, Wall Street banks and other large investors that have no intention of taking delivery of fuel have increasingly pumped money into contracts for oil and other commodities as a hedge against inflation when the dollar falls. After more than a half dozen hearings in Congress on the issue, Democratic House lawmakers said they intend to tighten restrictions on pension funds, investment banks and other large investors which they blame for driving up fuel prices. Many Republicans, analysts and regulators, however, say soaring oil prices are a reflection of macro-economic factors, including the falling dollar, unrest in the Middle East and increased demand from countries like China and India. There are currently nine bills in Congress which attempt to control speculation on oil prices and futures. Only one of them is co-sponsored by a Republican.
House Natural Resources Committee Hearing on Oil Spill 1300-1400
oil disaster House Natural Resources Committee hearing with Lamar Mckay, Chairman & President of BP America, Steven Newman, President & CEO of transocean, Jack Gerard, president & CEO of the American petroleum institute, & others 13:02:29 mcKAY we've been clear we're not going to recognize cap. 13:02:44 McKAY not going to exercise reimbursement for trust fund *blowout preventer examination?* 13:04:13 NEWMAN once well is permanently capped, we will recover BOP and conduct evaluation 13:04:55 DefAZIO questions *witnesses testify? Undisclosed illness?* 13:06:16 McKAY I do not know state of medical condition *dispersants* 13:08:24 DeFAZIO response letter non-responsive and insulting *COREXIT* *is your company going to honestly respond to EPA?* 13:10:05 McKAY as I understand it, corexit has been most available, most effective, least toxic of dispersants 13:10:24 DeFAZIO CORRECTS McKAY 13:10:52 McKAY there are ingredients we have concerns about 13:11:02 McKAY we will not do anything anything the EPA tells us not to do 13:11:20 McKAY we did commit and we look at every dispersant we can find. We have committed to that. We will do that. 13:12:15 HOLT questions *should liability be raised?* 13:14:08 McKAY we are ignoring and taking that cap away. 13:14:20 NEWMAN public policy congress should weigh, would hope congress considers commercial consideration of smaller operators *why the delay?* 13:17:13 McKAY we had piece of equipment that failed 13:17:31 McKAY I don't think configuration could have been predicted 13:17:50 McKAY subsea intervention has to be approved 13:18:06 BORDALLO questions *BP operating faster than implied to MMS?* 13:19:05 McKAY procedure was being followed, well control event occurred and stopped procedure 13:20:23 McKAY I believe procedure met MMS requirements 13:23:21 MILLER questions 13:24:01 COSTA questions *enough time to prevent explosion?* 13:24:44 McKAY there was a well control event and it could have been caught 13:27:08 anyone on rig - if they were concerned - could have asked to have shut down *how are you going to restore faith of being safe?* 13:29:28 MckAY stop it. Clean it up. Must know what happened, the facts of what happened 13:29:53 NEWMAN we will do everything to understand what happened, do everything to make sure it never happens again 13:30:11 SHEA-PORTER questions 13:31:57 McKAY cement bond log was not run on this well, that's right 13:32:45 there were 6 centralizers rather than 21, I don't know the logic of that *international help* 13:34:30 McKAY we are using every good idea we can find *has your company turned down offers?* 13:35:14 McKAY I don't know if we've turned offers down for cost or from countries 13:35:30 CHRISTENSEN questions *training workers?* 13:36:41 McKAY getting assistance from OSHA 13:36:54 McKAY there are instances 13:37:01 we have had instances where people have gotten sick. What we are trying to do is make sure we don't put anybody in that situation 13:37:21 McKAY no one can touch a tarball unless they're trained. It's not perfect. 13:37:53 McKAY OPA '90 provides for personal care to be taken care of *Transocean liable?* 13:38:37 NEWMAN we will satisfy all of our legal obligations *other oil companies assisting?* 13:39:10 McKAY this is an industry effort now 13:39:23 McKAY competitors are working with us 13:40:45 KIND questions 13:41:26 KIND I am less than impressed with your testimony *lack of info* 13:42:44 KIND spoken with anyone about fight on rig? 13:42:46 McKAY no I have not. 13:43:12 KIND I think your companies are hanging by a thread. 13:43:43 KIND I think BP went cheap on the casings that was used.they bypassed basic safety procedures.because you're being charged 500,000 dollars a day by transocean *why BP let employees leave without conducting special test on cement bond?* 13:45:01 McKAY I don't know why, but that decision was made 13:47:25 DeGETTE questions *cement bond log?* 13:48:39 McKAY the whole operation concerns me 13:48:47 McKAY the cement operation? Yes. 13:49:45 McKAY looked like effective cement job 13:52:16 CAPPS questions *should fed govt raise safety standards for offshore operators?* 13:52:58 McKAY I believe they should be, yes *in September, BP opposed proposed rule: too expense & extensive* *BP profits?* 13:56:15 McKAY I don't know exact number. I think 16 billion 13:57:03 GOHMERT questions *mitigation plan?* 13:58:15 McKAY a first step was marine deployment *MMS visit?*
++US MF Global
AP-APTN-2230: ++US MF Global Thursday, 8 December 2011 STORY:++US MF Global- NEW Corzine denies knowledge of where missing $1.2bn is LENGTH: 02:49 FIRST RUN: 2230 RESTRICTIONS: AP Clients Only TYPE: English/Nat SOURCE: AP TELEVISION/POOL STORY NUMBER: 718189 DATELINE: Various- 8 Dec 2011 LENGTH: 02:49 POOL/AP TELEVISION - AP CLIENTS ONLY SHOTLIST POOL - AP CLIENTS ONLY Washington, DC 1. Various of John Corzine, former U.S. Senator and CEO of MF Global, standing before House Agriculture Committee raising his right hand to take oath 2. Corzine sitting at table 43 SOUNDBITE: (English) John Corzine, Former US Senator and CEO of MF Global "Like all of you, I am devastated by the enormous impact on many people's lives resulting from the events surrounding the MF Global bankruptcy. Of course, my distress and sadness pale in comparison to the losses and hardships that customers, farmers and ranchers and others, employees and investors have suffered. Their plight weighs on my mind every day. As the Chief Executive Officer of MF Global at the time of its bankruptcy, I truly apologise to all those affected." 4. Wide shot from behind Corzine of committee room while he testifies 5. SOUNDBITE: (English) John Corzine, Former US Senator and CEO of MF Global "I was stunned when I was told on Sunday, October 30, 2011 that MF Global could not account for many hundreds of (m) millions of dollars of client money. I remain deeply concerned about the impact that the unreconciled and frozen funds have on MF Global's customers and others. I simply do not know where the money is or why the accounts have not been reconciled to date." AP TELEVISION - AP CLIENTS ONLY New York, New York 6. Various of Robert Heim , former SEC (Securities and Exchange Commission) Enforcement Attorney, sitting at table reading through book 7. SOUNDBITE: (English) Robert Heim, Former SEC (Securities and Exchange Commission) Enforcement Attorney "Corzine could say the the money was invested appropriately, but it still doesn't get him to the point where he can explain why the money was commingled with the firm's money. The fundamental failing of MF Global was that client's money was commingled with MF Global's money and regardless of how the money was invested it was a fundamental violation of industry rules to commingled the investor money with the firm's money." POOL - AP CLIENTS ONLY Washington, DC 9. Corzine sitting at witness table in hearing room AP TELEVISION - AP CLIENTS ONLY New York, New York 10. SOUNDBITE: (English) Robert Heim, Former SEC (Securities and Exchange Commission) Enforcement Attorney "The MF Global situation is unique. It is stunning actually as a former regulator, the firms like MF Global have a very high responsibility to safeguard customer funds, those monies are supposed to be kept separate from the firm's business. It is one of the most fundamental regulatory rules that operate in this business and for a financial institution like MF Global to apparently have violated that rule is really stunning. What comes out of that will be perhaps new rules by the CFTC (Commodity Futures Trading Commission) and SEC to help safeguard customer funds, but I think some sort of charges, whether they are civil enforcement charges or criminal charges are going to be very likely in this case." POOL - AP CLIENTS ONLY Washington, DC 11. Corzine sitting at witness table as hearing wraps up STORYLINE: Former MF Global chief and US Senator Jon Corzine told a congressional panel on Thursday in Washington DC that he never intended to break rules requiring the failed securities firm to safeguard client funds. He also said he doesn't know what happened to an estimated 1.2 (b) billion US dollars that went missing. Corzine testified before the House Agriculture Committee about the firm's bankruptcy on October 31, which followed disastrous bets on European debt that were made while Corzine was CEO. Corzine said he accepts responsibility for the firm's risky bets and said its customers' losses weigh on his mind "every day, every hour." "Like all of you, I am devastated by the enormous impact on many people's lives resulting from the events surrounding the MF Global bankruptcy. Of course, my distress and sadness pale in comparison to the losses and hardships that customers, farmers and ranchers and others, employees and investors have suffered. Their plight weighs on my mind every day," he told the panel. The former US senator was subpoenaed to explain how MF Global, which he led for about 20 months, collapsed into the eighth-largest bankruptcy in US history and why client funds remain unaccounted for. Corzine resigned as CEO on November 3 and hasn't spoken publicly since. He apologised to all to "all those affected" by MF Global's failure. And he insisted he does not know where the hundreds of millions of lost client dollars went. "I simply do not know where the money is, or why the accounts have not been reconciled to date," Corzine said. He says he can't say whether there were "operational errors" at MF Global or whether other companies have held onto money that should be returned to MF Global. Corzine defended his tenure at the firm. He said MF Global toppled, in part, because of a large quarterly loss caused by his predecessors' accounting moves. Rating agencies responded to the loss by downgrading the firm's credit rating, which panicked investors and trading partners. He said he made the high-stakes bets only after discussions with company executives who traded European debt long before he arrived. And he said that he reduced MF Global's investment risks by some measures. Lawmakers in both parties have a lot to ask Corzine. Some have heard from farmers, ranchers and small business owners in their districts who are missing money deposited with the firm. Agricultural businesses use brokerage firms to help reduce their risks in an industry vulnerable to swings in oil, corn and other commodity prices. But MF Global increased risks by making big bets on European government debt - bets that proved disastrous. Corzine disputed media reports that he personally pushed the company to make big, doomed bets on risky European debt using too much borrowed money. He insisted the company's revenue was "drying up" when he arrived because of competition from online and high-tech brokerages. Still, legal experts say Corzine could be held personally liable for the missing funds. "Corzine could say the the money was invested appropriately but it still doesn't get him to the point where he can explain why the money was commingled with the firm's money," said Robert Heim, a former prosecuting attorney for the US Securities and Exchange Commission. "The fundamental failing of MF Global was that client's money was commingled with MF Global's money and regardless of how the money was invested it was a fundamental violation of industry rules to commingled." This is the first time in more than 100 years that Congress has subpoenaed a former senator to testify. The occasion blends the two worlds Corzine has occupied for his professional life - Wall Street and public office. A Democrat, Corzine represented New Jersey in the Senate from 2001 through 2005. He later served as the state's governor. Before entering politics, he was CEO of Goldman Sachs from 1994 to 1999. 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INTERVIEW W/ REP. HENRY WAXMAN
Interview with Representative Henry Waxman for a Jonathan Karl GMA / GOOD MORNING AMERICA Spot RS25 / 79 SLUGGED: 1700 WAXMAN INTV RS25 79 DISC # 548 AR: 16X9 17;04;53;02 Well we're going to hear from the Chief Executive Officer of BP. (4) We want to hear from him directly, under oath, before the Congress of the United States (10) 17;05;03;13 In advance of this hearing we sent him a letter outlining five specific instances where BP cut corners. (7) Saving themselves money and time. (10) 17;05;29;19 We're looking forward to hearing from the head of BP himself - the Chief Executive Officer. (7) And in advance of this hearing we sent him a letter outlining five specific instances where BP could have done things that would have minimized the risk of the blowout that we're now paying the price for (20). 17;05;49;04 Five things where BP cut corners instead of doing the things that they should have done, taking the tests that the people in their industry recommended, that their contractors recommended. And that their own internal people suggested that they should do before they proceed with the drilling. (18) 17;06;12;23 It looks like it could have been prevented (3). We asked one of the chief executive officers of another oil company if he thought it could be prevented and said it absolutely was preventable. (11) 17;06;23;13 Another industry spokesman when we showed them the things that BP didn't do, or did incorrectly, they said this was completely preventable and in fact it was gross negligence (11). 17;06;48;29 2-shot 17;06;56;21 Well I think BP has to account for the disaster we're now facing, to the economy of the gulf coast, to the environment and the damage done there, to the lives of the people who were lost in the rig (14) and people who were injured (16). 17;07;12;16 BP has to be held accountable, but more importantly than that, we have to understand how this happened so we make sure it doesn't happen again (8) 17;07;29;29 Well he hasn't answered these questions, that's why we sent them to him in advance. (4) We wanted to prepare him for the questions we wanted answered (8) 17;07;39;05 We've had people testify, CEOs of major corporations where they said how sorry they were. (5) That's not enough. We expect he's sorry, I'm sure he is. (9) 17;07;48;20 But we went through their documents and their emails and found instances where they could have handled it differently (8) And they were being told to handle it differently by so many others, even within BP itself. (17) and yet they cut the corners and took on the extra risk, which turned out to be a very serious mistake. (24) 17;08;23;04 BP never knew how much oil they were spilling into the ocean from the very beginning. And thanks to the work of Congressman Ed Markey we were finally able to recognize that what they claim, which was a very small amount of oil coming out of that leak turned out to be far in excess of what anybody imagined. (20) 17;09;06;18 There's a lot of anger about what's happened in the Gulf (4) and a lot of people hold the man on the top responsible (8). But anger is not a policy. Anger is an emotion. And what we need to do is to be clear and calculated to get the facts. That's our job. (18) 17;09;24;25 And once we get the facts we can see where they lead us. (4) We've got to hold the people accountable responsible, and we've got to correct the policies for the future. (9) 17;09;44;22 Why didn't they take the time to put in the extra equipment to center the well, so there would not have been a problem with the cementing? (8) 17;09;52;28 Why didn't they do a test to be sure that the cementing was already in place? (4) Why didn't they test the blowout preventer before they started the drilling on the well? (8) 17;10;00;25 These are things that other oil companies have told us are standard practice (5) that they would never start drilling without making sure that the construction was done in a way that minimized the risk. (12) 17;10;12;20 Why, why, why? (3) 17;10;33;17 Well it is an emotional issue, the families who have lost their loved ones are feeling that pain and will for the rest of their lives. (8) 17;10;40;29 People have lost their businesses and their economy in their region are suffering. (7) And we don't know all the consequences both to health and to the environment in the Gulf region. (13) 17;10;53;27 It's going to take millions if not billions of dollars to right the situation. (4) 17;11;02;11 We are faced with a situation that had BP done some of the things that they might have done, could have been prevented. (8) And prevention is far better than having to deal with a problem like this. (13) 17;11;15;06 Prevention is far better than having to deal with any disease or any consequence that maybe we didn't have to have to suffer (9) 17;11;25;27 I don't have the answer to that but it seems highly unlikely. (5) 17;11;44;07 This isn't personal to him. (2) And it's, he recognizes and has expressed regrets over and over again about the situation we're facing. (8) We want to get him to directly answer the questions. (14) And I expect him to cooperate, and we'll then have to go on from there and see how we can deal with making this situation better for everybody involved (16) 17;12;21;27 two shot
House Energy Hearing with Tony Hayward / Switched / 1000-1100
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP BP CEO Tony Hayward testifies before the Oversight Subcommittee of House Energy and Commerce - CSPAN SWITCHED (LOGGING SHOTS ONLY) RS26 / 76 SLUGGED: 0945 4X3 SW HAYWARD HRG RS26 76 DISC # 965 AR: 4X3 **** FED TO NY ON RS 5106 **** 09:54:08 Hayward enters room and walks to table 09:54:24 Hayward with back to most press - facing camera 09:54:36 CU Hayward in crowd 09:55:34 wide push - Hayward surrounded by press 09:56:26 Hayward 09:58:08 Waxman talking to Hayward 09:58:36 BP Lies / BP Kills signs in crowd 09:58:54 more anti-BP Signs in crowd 10:01:46 Various Representatives arrive and settle into seats 10:02:03 Stupak arrival and seated 10:02:31 Backshot of Hayward sitting 10:02:50 gavel - 10:02:57 push to stupak 10:03:10 side of Hayward 10:03:36 Stupak calling hearing to order 10:04:58 waxman opening remarks 10:02:03 BART STUPAK: THIS MEETING WILL COME TO 10:03:10 ORDER, WE'RE GOING TO ASK THE PRESS TO PLEASE CLEAR. 10:03:51 THIS HEARING OF THE SUBCOMMITTEE OF THE ENERGY AND 10:03:55 COMMERCE COMMITTEE, THE SUBCOMMITTEE ON OVERSIGHT 10:03:59 INVESTIGATIONS WILL COMMENCE OUR HEARING. 10:04:01 TODAY WE HAVE A HEARING TITLED BP'S ROLE IN THE DEEP WATER 10:04:11 HORIZON ENERGY SPILL. I WELCOME THE MEMBERS OF THE 10:04:16 ENERGY AND COMMERCE COMMITTEE AND THEY WILL BE ALLOWED TO 10:04:21 SUBMIT WRITTEN STATEMENTS FOR THE RECORD, BUT WILL NOT DELIVER 10:04:25 VERBAL OPENING STATEMENTS AND IN ADDITION MEMBERS WHO ARE NOT ON 10:04:34 THE SUBCOMMITTEE OR ON THE ENERGY AND COMMERCE COMMITTEE 10:04:38 ARE WILL BE TO OBSERVE, BUT THEY WILL NOT BE ALLOWED TO ASK 10:04:43 QUESTIONS DUE TO TIME CONSTRAINTS, THE CHAIRMAN, THE 10:04:47 RANKING MEMBER AND THE CHARITY EMERITUS WILL BE RECOGNIZED FOR 10:04:52 THREE MINUTE OPENING STATEMENTS. I WILL YIELD TO THE CHAIRMAN OF 10:05:01 THE FULL COMMITTEE MR. WAXMAN FOR THE FIRST OPENING STATEMENT. 10:05:05 THANK YOU VERY MUCH MR. CHAIRMAN, THANK YOU FOR HOLDING 10:05:09 THIS VERY IMPORTANT HEARING. AND MR. HAYWARD, THANK YOU FOR 10:05:12 BEING HERE TODAY. YESTERDAY BP PLEDGED TO 10:05:15 ESTABLISH A $20 BILLION ESCROW ACCOUNT AND TO SUSPEND ITS 10:05:20 DIVIDEND PAYMENTS FOR THE REST OF THE YEAR. 10:05:23 I'M SURE THESE WERE NOT EASY DECISIONS FOR YOU, BUT THEY WERE 10:05:26 THE RIGHT ONES AND I COMMEND YOU FOR THEM. 10:05:30 CONGRESS HAS MULTIPLE COMMITTEES EXAMINING THE GULF OIL SPILL, 10:05:34 SOME ARE EVALUATING THE IMPACT OF THE SPILL, SOME ARE WORKING 10:05:38 ON THE REORGANIZATION OF THE REGULATORY AGENCIES AND SOME 10:05:42 INCLUDING CHAIRMAN MARKEY'S SUBCOMMITTEE ARE DRAFTING 10:05:46 LEGISLATION TO REFORM OUR OIL EXPLORATION LAWS. 10:05:50 YOU ARE TESTIFYING TODAY BEFORE THE OVERSIGHT AND INVESTIGATION 10:05:55 SUBCOMMITTEE AND THIS SUBCOMMITTEE HAS A SPECIAL ROLE. 10:05:59 SO EXAMINE THE FACTS AND DETERMINE WHAT WENT WRONG AND TO 10:06:02 MAKE RECOMMENDATIONS TO PREVENT FUTURE SPILLS. 10:06:06 WHEN IT'S TIME FOR QUESTIONING, I AND OTHER MEMBERS OF THE 10:06:09 SUBCOMMITTEE WILL ASK YOU ABOUT A SERIES OF INTERNAL BP 10:06:12 DOCUMENTS. THEY APPEAR TO SHOW THAT BP 10:06:18 REPEATEDLY TOOK SHORTCUTS THAT ENDANGERED LIVES AND INCREASED 10:06:22 THE RISKS OF A CATASTROPHIC BLOWOUT. 10:06:26 AND I SENT YOU A LETTER IN ADVANCE INDICATING THAT WE'RE 10:06:29 GOING TO QUESTION YOU ABOUT THOSE ISSUES. 10:06:32 BUT WHAT IS EQUALLY IMPORTANT IS WHAT IS MISSING FROM THE 10:06:34 DOCUMENTS. WHEN YOU BECAME CEO OF BP, YOU 10:06:41 PROMISED TO FOCUS LIKE A LASER ON SAFE AND RELIABLE OPERATIONS. 10:06:45 WE WANTED TO KNOW WHAT YOU HAD DONE TO KEEP THIS PROMISE. 10:06:49 SO WE ASKED WHAT E-MAILS YOU HAD RECEIVED, WHAT DOCUMENTS YOU HAD 10:06:53 REVIEWED. ABOUT THE DEEP WATER HORIZON RIG 10:07:00 OR TO THE McCONDO WELL BEFORE THE BLOWOUT. 10:07:03 DEEP WATER DRILLING IS INHERENTLY DANGEROUS, AS THE 10:07:09 ENTIRE COUNTRY NOW KNOWSES, AN UNCONTROLLED BLOWOUT CAN KILL 10:07:15 RIG WORKERS AND CAUSE AN ENVIRONMENTAL DISASTER. 10:07:18 WE WANT TO KNOW IF YOU WERE BRIEFED BE THE RISKS AND WERE 10:07:22 MONITORING THE SAFETY OF THE DRILLING OPERATION. 10:07:27 WE CAN FIND NO EVIDENCE THAT YOU PAID ANY ATTENTION TO THE 10:07:30 TREMENDOUS RISKS BP WAS TAKING. WE HAVE REVIEWED 30,000 PAGES OF 10:07:38 DOCUMENTS FROM BP INCLUDING YOUR E-MAILS, THERE IS NOT A SINGLE 10:07:44 E-MAIL OR DOCUMENT THAT SHOWS YOU PAID EVEN THE SLIGHTEST 10:07:47 ATTENTION TO THE DANGERS AT THIS WELL. 10:07:49 YOU ARE THE CEO. SO WE CONSIDER THE POSSIBILITY 10:07:51 THAT YOU MAY HAVE DELEGATED THE OVERSIGHT RESPONSIBILITY TO 10:07:59 SOMEONE ELSE WE REVIEWED THE EMAILS AND BELIEVING DOCUMENTS 10:08:04 RECEIVED BY THE CHIEF EXECUTIVE FOR EXPLORATION AND PRODUCTION 10:08:09 AND DOUG SUTTLES, THE CHIEF OPERATING OFFICER FOR 10:08:17 PRODUCTION. ACCORDING TO BP, THESE ARE THE 10:08:25 SENIOR OFFICIALS RESPONSIBLE FOR THE McCONDO WELL, BUT THEY TOO 10:08:31 WERE APPARENTLY BLIVIOUS TO WHAT WAS HAPPENING. 10:08:37 WE CAN SEE NO E-MAILS OR DEBRIEFINGS ABOUT THE DEEP WATER 10:08:44 HORIZON. BP'S CORPORATE COMPLACENCY IS 10:08:50 ASTONISHING, THE DRILLING ENGINE FOR THE RIG, CALLED McCONDO, A 10:08:56 NIGHTMARE WELL. OTHER BP EMPLOYEES PREDICTED 10:08:59 THAT THE CEMENT JOB WOULD FAIL. HALLIBURTON WARNED OF A SEVERE 10:09:03 GAS FLOW PROBLEM. THESE WARNINGS FELL ON DEAF 10:09:08 EARS. BP'S CORPORATE ATTITUDE MAY BEST 10:09:11 BE SUMMED UP IN AN E-MAIL FROM HIS OPERATIONS DRILLING ENGINEER 10:09:16 WHO OVERSAW BP'S TEAM OF DRILLING ENGINEERS. 10:09:21 AFTER LEARNING OF THE RISKS AND BP'S DECISION TO IGNORE THEM, HE 10:09:26 WROTE, QUOTE, WHO CARES? IT'S DONE, END OF STORY, WE'LL 10:09:30 PROBABLY BE FINED, END QUOTE. THERE IS A COMPLETE 10:09:37 CONTRADICTION BETWEEN BP'S WORDS AND DEEDS. 10:09:39 YOU WERE BROUGHT IN TO MAKE SAFETY THE TOP PRIORITY OF BP, 10:09:44 BUT UNDER YOUR LEADERSHIP, BP HAS TAKEN THE MOST EXTREME 10:09:50 RISKS. BP CUT CORNER AFTER CORNER TO 10:09:53 SAVE A MILLION DOLLARS HERE A FEW HOURS OR DAYS THERE AND NOW 10:09:57 THE WHOLE GULF COAST IS PAYING THE PRICE. 10:10:00 TODAY'S HEARING WILL FOCUS ON BP'S ACTIONS, BUT WE LEARNED 10:10:04 FROM OUR HEARING EARLIER THIS WEEK THAT THE OTHER OIL 10:10:07 COMPANIES ARE JUST AS UNPREPARED TO DEAL WITH A MASSIVE SPILL AS 10:10:10 BP. WE ARE SEE IN THE OIL INDUSTRY 10:10:16 THE SAME CORPORATE INDIFFERENCE TO RISK THAT CAUSED THE COME 10:10:18 LANCE ON WALL STREET. AND THAT IS WHY REFORM IS SO 10:10:24 URGENTLY NEEDED, PART OF THIS REFORM MUST BE LEGISLATION TO 10:10:28 PUT TEETH INTO OUR REGULATORY SYSTEM BUT PART MUST ALSO BE A 10:10:33 TRANSITION TO A CLEAN ENERGY ECONOMY. 10:10:36 WE'RE ADDICTED TO OIL, THIS ADDICTION IS FOULING OUR 10:10:40 BEACHES, POLLUTING OUR ATMOSPHERE AND UNDERMINING OUR 10:10:42 NATIONAL SECURITY. WE CAN'T SNAP OUR FINGERS OR 10:10:49 TRANSFORM OUR ENERGY ECONOMY OVERNIGHT, BUT WE NEED TO START 10:10:52 DOWN A PATH TO A CLEAN ENERGY FUTURE. 10:10:55 MR. CHAIRMAN, I LOOK FORWARD TO TODAY'S HEARING AND MR. HAYWARD 10:11:00 I THANK YOU FOR APPEARING AND COOPERATING WITH OUR 10:11:04 INVESTIGATION. NEXT GO TO THE FULL COMMITTEE 10:11:08 REMEMBER BART STUPAK OF TEXAS. THANK YOU, MR. CHAIRMAN, 10:11:15 THANK YOU MR. HAYWARD FOR APPEARING BEFORE US. 10:11:19 WE HAVE KIND OF A DUAL TRACK UNDERWAY IN MY OPINION. 10:11:25 WE OBVIOUSLY ARE TRYING TO GATHER THE FACTS, WHAT HAPPENED 10:11:27 IN THE OIL SPILL IN THE GULF OF MEXICO A MONTH AND A HALF AGO, 10:11:35 TRYING TO FIND OUT THE CLOSE. WE HAVE A SYSTEM BUILT UP BASED 10:11:58 ON THE BRITISH TRADITION OVER 200 YEARS OF DUE PROCESS AND 10:12:02 FAIRNESS WHERE PEOPLE THAT DO BAD THINGS OR IN THIS CASE A 10:12:08 CORPORATION THAT'S RESPONSIBLE FOR A BAD ACCIDENT, WE WANT TO 10:12:13 HOLD THEM RESPONSIBLE, DO WHAT WE CAN TO MAKE THE LIABLE 10:12:16 PARTIES PAY FOR THE DAMAGES. MR. STUPAK AND MR. WAXMAN ARE 10:12:20 DOING AN EXCELLENT JOB WORKING WITH DR. BURR NEGLIGENCE AND 10:12:27 MYSELF IN CONDUCTING I THINK A FAIR OVERSIGHT 10:12:30 INVESTIGATION. BOAR GOING TO GET INTO A NUMBER 10:12:38 OF THOSE ISSUES. I'M SPEAKING TOTALLY FOR MYSELF, 10:12:42 I'M NOT SPEAKING FOR THE REPUBLICAN PARTY, I'M NOT 10:12:45 SPEAKING FOR ANYBODY IN THE HOUSE OF REPRESENTATIVES BUT 10:12:46 MYSELF. BUT I'M ASHAMED OF WHAT HAPPENED 10:12:51 IN THE WHITE HOUSE YESTERDAY. I THINK IT IS A TRAGEDY IN THE 10:13:04 FIRKS PROPORTION THAT I WOULD CHARACTERIZE AS A SHAKEDOWN, IN 10:13:11 THIS CASE A $20 BILLION SHAKEDOWN, WITH THE ATTORNEY 10:13:16 GENERAL OF THE UNITED STATES WHO IS CONDUCTING A CRIMINAL 10:13:19 INVESTIGATION AND HAS EVERY RIGHT TO DO THAT TO PROTECT THE 10:13:25 AMERICAN PEOPLE. PARTICIPATING IN WHAT AMOUNTS TO 10:13:30 A $20 MILLION SLUSH FUND WHICH I THINK SET ASTER RIBL PRECEDENT 10:13:35 FOR THE FUTURE. IF I CALLED YOU INTO MY OFFICE. 10:13:41 AVSHTD AND I HAD THE SUBCOMMITTEE CHAIRMAN MR. STUPAK 10:13:45 WITH ME WHO WAS LEGITIMATELY SUBJECTING AN OVERSIGHT 10:13:49 INVESTIGATION ON YOUR COMPANY AND SAID IF YOU PUT SO MANY 10:13:53 MILLIONS OF DOLLARS IN A PROJECT IN MY CONSTITUTIONAL DISTRICT I 10:14:02 COULD GO TO JAIL AND SHOULD GO TO JAIL. 10:14:09 NO THERE IS NO QUESTION THAT BRITISH PETROLEUM OWNS THIS K 10:14:21 LEAK, THAT BP MADE DECISIONS THAT PEOPLE MAY QUESTION. 10:14:27 THERE IS NO QUESTION THAT BP IS LIABLE FOR THE DAMAGES, BUT WE 10:14:31 HAVE A DUE PROCESS SYSTEM WHERE WE GO THROUGH HEARINGS, IN SOME 10:14:36 CASES COURT CASES, LITIGATION AND DETERMINE WHAT THOSE DAMAGES 10:14:38 ARE AND WHEN THOSE DAMAGES SHOULD BE PAID. 10:14:45 SO I'M ONLY SPEAKING FOR MYSELF, I'M NOT SPEAKING FOR ANYBODY 10:14:52 ELSE, BUT I APOLOGIZE, I DO NOT WANT TO LIVE IN A COMPANY WHERE 10:14:56 ANY TIME A CITIZEN FOR A CORPORATION DOES SOMETHING THAT 10:14:59 IS LEGITIMATELY WRONG IS SUBJECT TO SOME SORT OF POLITICAL 10:15:08 PRESSURE THAT IS AGAIN IN MY WORDS AMOUNTS TO SHAKEDOWN. 10:15:10 SO I APOLOGIZE. SO ON THIS HEARING TODAY, I AM 10:15:17 WITH MR. WAXMAN, WITH MR. STUPAK, THERE ARE QUESTIONS THAT 10:15:23 NEED TO BE ASKED THAT ARE LEGITIMATE BECAUSE WE DON'T WANT 10:15:27 ANOTHER OIL SPILL OF THIS MAGNITUDE OR OF ANY MAGNITUDE IN 10:15:32 THE GULF OF MEXICO AND IF THIS SUBCOMMITTEE CAN DO THINGS THAT 10:15:37 MAKE IT MUCH MORE DIFFICULT FOR THIS TYPE OF AN INCIDENT TO 10:15:40 OCCUR IN THE FUTURE, THEN WE WILL HAVE DONE OUR WORK FOR THE 10:15:42 AMERICAN PEOPLE. WITH THAT, MR. CHAIRMAN, I YIELD 10:15:47 BACK. TODAY IS THE 59th DAY OF THE 10:15:57 BP OIL SPILL THAT HAS DEVASTATED MUCH OF THE GULF OF MEXICO. 10:15:59 11 MEN LOST THEIR LIVES THE DAY THE DEEP WATER HORIZON DRILLING 10:16:04 RIG EXPLODED AND IN THE 59 DAYS THAT HAVE FOLLOWED, COUNTLESS 10:16:10 PEOPLE HAVE LOST THEIR LIVELIHOOD AS THE OIL POLLUTES 10:16:16 FISHING GROUNDS AND DAMAGES THE BEACHES OF THE UNITED STATES. 10:16:22 OUR FIRST HEARING EXPOSED PROBLEMS DISCOVERED WITH THE 10:16:26 BLOWOUT PREVENTSER AND SEVERAL OTHER FACTORS THAT CONTRIBUTED 10:16:31 TO THE DISASTER. OUR SECOND HEARING WAS A FIELD 10:16:37 HEARING IN NEW ORLEANS WHERE WE HEARD FROM THE WIDOWS OF TWO 10:16:41 WOMEN WHOSE HUSBANDS DIED IN THE DEEP WATER HORIZON. 10:16:54 WE HAVE BEEN SITTING THROUGH MORE THAN 50 HOURS OF BRIEFINGS 10:16:58 OF CORPORATE, GOVERNMENTAL EXPERTS TO DETERMINE WHAT WENT 10:17:02 WRONG WITH EXPLORATION OF THE McCONDO WELL. 10:17:05 WE HAVE REVIEWED SEVERAL QUESTIONABLE DECISIONS MADE BY 10:17:09 BP IN THE DAYS AND HOURS LEADING UP TO THE EXPLOSION AND WHAT WE 10:17:13 HAVE LEARNED SO FAR IS ALARMING. WE HAVE LEARNED THAT TIME AFTER 10:17:17 TIME, BP HAD WARNING SIGNS THAT THIS WAS AS ONE EMPLOYEE PUT IT 10:17:23 A NIGHTMARE WELL. FOR EXAMPLE, BP DISREGARDED 10:17:31 QUESTIONABLE RESULTS FROM PRESSURE TESTS AFTER CEMENTS IN 10:17:34 THE WELL. BP SELECTED THE RISKIER OF TWO 10:17:38 OPTIONS FOR THEIR WELL DESIGN. THEY COULD HAVE HUNG A LINER 10:17:41 FROM THE LOWER END OF THE CASING ALREADY IN THE WELL AND INSTALL 10:17:44 A TIE BACK ON THE TOP OF THE LINER WHICH WOULD HAVE PROVIDED 10:17:48 ADDITIONAL BARRIERS TO THE RELEASE OF HYDROCARBONS, INSTEAD 10:17:53 THEY LOWERED A FULL STRING OF THE NEW CASING WHICH TOOK LESS 10:17:59 TIME AND COST LESS BUT DID NOT PROVIDE THE SAME PROTECTION OF 10:18:04 ESCAPING HYDROCARBONS. BP WAS WARNED BY HALLIBURTON 10:18:13 COULD HAVE A BIG PROBLEM IF THEY -- BP REJECTED 10:18:20 HALLIBURTON'S ADVICE TO USED ADDITIONAL CENTRALIZERS IN AN 10:18:25 E-MAIL ON APRIL 16. A BP OFFICIAL INVOLVED IN THE 10:18:28 DECISION EXPLAINED AND I QUOTE, IT WILL TAKE TEN HOURS TO 10:18:32 INSTALL THEM, I DON'T LIKE THIS. BP CHOSE NOT TO FULLY CIRCULATE 10:18:36 THE MUD IN THE WELL FROM THE BOTTOM TO THE TOP, WHICH WAS AN 10:18:40 INDUSTRY RECOMMENDED BEST PRACTICE THAT WOULD HAVE ALLOWED 10:18:44 THEM TO TEST FOR GAS IN THE MUD. BP CHOSE NOT TO USE A CASING 10:18:49 HANGAR LOCKDOWN SLEEVE WHICH WOULD HAVE PROVIDED EXTRA 10:18:52 PROTECTION AGAINST A BLOWOUT FROM BELOW. 10:18:54 THESE ARE JUST A FEW OF THE ISSUES THAT LED TO THE DISASTER. 10:18:59 ONCE DEEP WATER HORIZON EXPLODED AND SAN TO BE THE BOTTOM OF THE 10:19:07 SEA, BP'S DECISION TO CLEAN UP THE SPILL WAS EQUALLY AS POOR. 10:19:14 THEY ISSUED ESTIMATES WHICH MAY HAVE LED TO A SCALED BACK 10:19:17 RESPONSE. WE DISCOVERED THAT BP'S OIL 10:19:20 SPILL RESPONSE PLAN WAS VIRTUALLY IDENTICAL TO OTHER OIL 10:19:25 COMPANIES' PLANS, IN A HEARING TUESDAY, EXXONMOBIL CEO REX 10:19:31 TILLERSON SAID THAT ONCE THE SPILLS OCCUR, WE'RE NOT EQUIPPED 10:19:36 TO HANDLE THEM, END QUOTE. OUR WITNESS TODAY MR. TONY 10:19:44 HAYWARD IS A CHIEF EXECUTIVE OFFICER OF BP, SHORTLY AFTER MR. 10:19:48 HAYWARD TOOK OVER AS THE CEO IN 2007, HE HELD A TOWN HALL 10:19:52 MEETING WITH EMPLOYEES IN HOUSTON THAT. 10:19:55 MEETING HE DISCUSSED THE NEED FOR BP TO BE A LEADER WITH FEWER 10:19:59 PEOPLE IN DECISION MAKING PROCESS. 10:20:01 THIS ARTICLE AND I ASK YOU TO PUT UP THE GUARDIAN ARTICLE. 10:20:06 IN AN ARTICLE FROM SEPTEMBER 2007, GUARDIAN NEWSPAPER, 10:20:12 HAYWARD SAYS OIL COMPANY HAS BECOME TOO CAUTIOUS, ASSURANCE 10:20:15 IS KILLING US, MR. HAYWARD TOLD U.S. STAFF NOTING THAT TOO MANY 10:20:21 PEOPLE WERE ENGAGED IN DECISION MAKING LEADING TO EXCESSIVE 10:20:25 CAUTIOUSNESS SOMETHING THAT CRITICS OF ITS SAFETY 10:20:27 PERFORMANCE IN THE U.S. MIGHT QUESTION. 10:20:29 LET ME PUT UP THESE OTHER NOTES FROM THE SAME MEETING. 10:20:32 WE RECEIVED NOTES FROM BP OF EMPLOYEES AND THEIR NOTE TAKING 10:20:36 FROM THIS MEETING. THE EMPLOYEE NOTES SUMMIT RISED 10:20:40 MR. HAYWARD'S STATEMENTS AS FOLLOWS. 10:20:42 I DON'T THINK HAVING ALL THESE LAYERS OF ASSURANCE REDUCES 10:20:48 RISKS AND IT CAN ACTUALLY INCREASE IT. 10:20:51 INDIVIDUALS NEED TO BE ACCOUNTABLE FOR RISK AND TO 10:20:54 MANAGE IT, END OF QUOTE. I FIND THIS CAVALIER ATTITUDE 10:20:58 TOWARD ASSESSING RISK UNBELIEVABLE, GIVEN THE FACT 10:21:01 THAT AT THE TIME OF THESE STATEMENTS, BP HAD JUST BEEN 10:21:04 RESPONSIBLE FOR THE LARGEST OIL LEAK IN ALASKA HISTORY ON THE 10:21:07 NORTH SLOPE AS WELL AS THE 2005 TEXAS CITY REFINERY EXPLOSION 10:21:13 WHICH KILLED 50 WORKERS AND INJURED ANOTHER 170. 10:21:16 I MUST ASK MR. HAYWARD WHETHER IT WAS WISE TO ADOPT THIS LEANER 10:21:22 DECISION-MAKING PROCESS WITH INPUT FROM FEWER PEOPLE AND A 10:21:24 NEW APPROACH TO MANAGING RISK. UNDER THE LEADERSHIP OF THE 10:21:30 FORMER CHAIRMAN OF BP AMERICA, BP CREATED AN INDEPENDENT OFFICE 10:21:36 OF THE OMBUDSMAN. THE OMBUDSMAN OFFICE WAS 10:21:39 ESTABLISHED BECAUSE LINE WORKERS REPORTED FEARING RETALIATION IF 10:21:43 THEY REPORTED SAFETY CONCERNS TO MANAGEMENT. 10:21:46 WHEN THE CURRENT CHAIRMAN AND PRESIDENT LAMAR McKAY TOOK OVER, 10:21:49 I MET WITH HIM AND HE SUGGESTED THAT HE HOPED TO IMPROVE THE 10:21:53 CULTURE ENOUGH TO MAKE THE OMBUDSMAN OFFICE UNNECESSARY SO 10:21:58 HE COULD SHUT IT DOWN. I URGED HIM NOT TO ELIMINATE THE 10:22:01 OFFICE BECAUSE IT SERVES A SIGNIFICANT ROLE IN 10:22:04 INVESTIGATING EMPLOYEE COMPLAINTS. 10:22:06 I'M MORE CONCERNED THAN EVER ABOUT BP'S SAFETY AND THE ROLE 10:22:09 THEY TAKE IN ASSUMING RISK. I'M CONCERNED THAT THE CORPORATE 10:22:18 CULTURE, THE CHAIRMAN OF PRESIDENT OF LAMAR McKAY THAT 10:22:24 THERE'S A WILLINGNESS TO CUT COSTS AND TAKE GREATER RISKS, I 10:22:29 LOOK FORWARD TO HEARING THE ANSWERS OF MR. HAYWARD OUR MANY 10:22:33 HARD HITTING COMMITTEE MEMBER ALSO HEAR TODAY. 10:22:36 I HOPE WE WILL HEAR HONEST, CONTRITE AND SUBSTANTIVE 10:22:41 ANSWERS. MR. HAYWARD, YOU OWE IT TO ALL 10:22:45 AMERICANS, FOR THE AMERICANS WHO LIVE AND WORK ON THE GULF COAST, 10:22:48 IT MAY BE YEARS BEFORE THEY GET THEIR LIVES BACK, FOR THE 10:22:51 AMERICANS WHO LOST THEIR LIVES ON THE RIGS, THEIR FAMILIES MAY 10:22:54 NEVER GET THEIR LIVES BACK. MR. HAYWARD, I'M SURE YOU WILL 10:22:57 GET YOUR LIFE BACK AND WITH A GOLDEN PARACHUTE BACK TO 10:23:02 ENGLAND. BUT WE IN AMERICA ARE LEFT WITH 10:23:05 A TERRIBLE CONSEQUENCES OF BP'S RECKLESS DISREGARD FOR SAFETY. 10:23:12 I YIELD BACK MY TIME. TODAY IT DOES OPEN OUR THIRD 10:23:20 HEARING AND A VERY CRITICAL HEARING IN THE DEEP WATER 10:23:32 HORIZON OIL SPILL. THIS HEARING PROVIDES THE 10:23:36 SUBCOMMITTEE WITH AN IMPORTANT OPPORTUNITY TO DIRECTLY QUESTION 10:23:39 THE MAN WHO ULTIMATELY LEADS BP, MR. TONY HAYWARD AND BP'S ROLE 10:23:44 HAS BEEN CENTRAL TO THE CAUSES OF THE INCIDENT AND TO THE 10:23:47 RESPONSE OVER THE COURSE OF OUR INQUIRY TODAY, COMMITTEE 10:23:51 INVESTIGATORS WORKING IN A BY PARTISAN FASHION HAVE CONDUCTED 10:23:56 NUMEROUS INTERVIEWS AND BRIEFINGS AND REVIEWED TENS OF 10:23:59 THOUSANDS OF PAGES OF DOCUMENTS, OUR SUBCOMMITTEE HAS DONE AN 10:24:04 EXCELLENT JOB AND THIS SUB COMMITTEE HAS BEEN FOCUSED ON 10:24:07 GATHERING THE FACTS RATHER THAN RUSHING TO JUDGMENT. 10:24:09 AND FROM THIS INTENSIVE EFFORT WE HAVE BEGUN TO HAVE A SERIES 10:24:16 OF QUESTIONS, EXPLORING THESE AND RELATED QUESTIONS TODAY WILL 10:24:20 HELP US IDENTIFY FOR CONGRESS AND IDENTIFY FOR THE COUNTRY 10:24:24 WHAT WENT WRONG ON APRIL 20th AND THE DAYS THEREAFTER, AND 10:24:27 WHILE WE ARE INVESTIGATING, A PICTURE OF THE CHAIN OF EVENTS 10:24:30 LEADING TO THIS INCIDENT IS EMERGING. 10:24:33 MR. CHAIRMAN, YOU AND CHAIRMAN WAXMAN RECENTLY OUTLINED SOME 10:24:37 CRITICAL QUESTIONS THAT WE HOPE MR. HAYWARD WILL ADDRESS, FOR 10:24:41 EXAMPLE YOU NOTED THE INVESTIGATION HAS IDENTIFIED 10:24:44 QUESTIONABLE CHOICES BY BP ENGINEERS TO USE A PARTICULAR 10:24:47 WELL DESIGN OVER ANOTHER ONE THAT WOULD APPEAR TO HAVE 10:24:51 PROVIDED MORE BUILT IN BARRIERS TO AN UNCRIMINALED GADDIS 10:24:53 CHARGE. THERE WAS THE CHOICE MADE BY BP 10:24:57 TO MOVE FORWARD WITH WHAT APPEARS TO BE AN INADEQUATE 10:25:02 CEMENTING PLAN AND THE RELATED FAILURE DESPITE CLEAR WARNINGS 10:25:06 TO TEST THAT THE CEMENT WAS PROPERLY IN PLACE. 10:25:08 AND IT APPEARS THERE MAY HAVE BEEN A RUSH TO MOVE OFF THIS 10:25:12 WELL, WHETHER THERE MAY HAVE BEEN ECONOMIC OR OTHER TIME AND 10:25:16 PERFORMANCE MEASURES OR SOME COMBINATION THEREOF, IT IS NOT 10:25:21 CLEAR BURKS THAT CLARITY NEEDS TO EMERGE TODAY. 10:25:24 THE QUESTION OUTLINED IN THE CENTRAL ROLE OF BP'S DECISION 10:25:27 MAKING APPEARS THAT BP'S DECISION MAKING APPEARS TO HAVE 10:25:30 HAD IN THIS INCIDENT. WE NEED TO UNDERSTAND THAT 10:25:34 DECISION MAKING, MR. HAYWARD. WHAT FACTORS INFLUENCED IT, 10:25:38 WHETHER THE DECISIONS REFLECTED A MANAGEMENT AND AN OPERATIONAL 10:25:42 MIND SET THAT FAILED, FAILED TO MAXIMIZE SAFETY IN A CHALLENGING 10:25:45 DEEP SEA ENVIRONMENT. IT IS IMPORTANT TO NOTE THAT THE 10:25:49 PICTURE DEVELOPING FROM THIS INVESTIGATION IS NOT ONE OF 10:25:53 TECHNOLOGICAL LIMITS IN DEEP SEA DRILLING, THE CONSTRUCTION OF AN 10:25:58 18,000-FOOT WELL WAS NOT PUSHING THE ENVELOPE OF ENGINEERING KNOW 10:26:01 HOW SO FAR AS WE IDENTIFIED, BUT THE PICTURE DEVELOPING IS ONE OF 10:26:06 UNSAFE INDUSTRY PRACTICES, ALTHOUGH CLEARER MORE FOCUSEDED 10:26:11 INDUSTRY STANDARDS MAY BE ABLE GOING FORWARD, THE BEST INDUSTRY 10:26:16 PRACTICE WOULD HAVE RESULTED IN MORE CAUTIOUS DESIGNS AND MORE 10:26:21 TESTING, MORE SAFEGUARDS AND ULTIMATELY NO LOSS OF CONTROL OF 10:26:24 THE WELL. RATHER AND QUITE CLEARLY THE 10:26:29 PICTURE IS QUESTIONING DECISION MAKING BY PEOPLE CHARGED WITH 10:26:32 DESIGNING AND SUCCESSFULLY DRILLING, AND CONTROLLING A WELL 10:26:37 THAT IS A MILE UNDER WATER. IT IS A SERIES OF CHOICES WHICH 10:26:41 TAKEN TOGETHER CREATED AN OIL WELL PARTICULARLY VULNERABLE TO 10:26:44 A BLOWOUT AND OF ALL THE PEOPLE WHO MAY HAVE BEEN DISTRACTED, 10:26:48 UNAWARE OR RESISTANT TO RECOGNIZING THE PROBLEMS AROUND 10:26:52 THEM. DOCUMENTS SHOW THAT BP WAS 10:26:54 PREPARED TO RUN A TEST ON THE QUALITY OF THE CEMENT SHOT, BUT 10:26:58 CHOSE NOT TO. I CAN'T UNDERSTAND WHY GIVEN THE 10:27:01 HISTORY OF THIS PARTICULAR WELL WITH FOUR PREVIOUS WELL 10:27:04 CONTROLLED INCIDENTS IN THE TWO MONTHS PRY YOU TO APRIL 20. 10:27:08 THE RIG PERSONNEL APPEAR TO HAVE TAKEN THEIR EYE OFF THE BALL. 10:27:13 BP EMPLOYEES WERE THE KEY D 10:27:18 DECISION MAKERS. CERTAINLY OTHERS MAY HAVE 10:27:21 CONTRIBUTED TO THIS INCIDENT. THE OVERALL EFFECTIVENESS OF THE 10:27:28 RESPONSE AND THE EFFORT TO HELP THOSE HARMED BY THE INCIDENT IS 10:27:34 SOMETHING WE MUST -- BUT IT IS BP'S DECISION MAKING ABOUT THE 10:27:37 WELL DESIGN, THE CEMENTING PROGRAM, THE PREPARATION, THE 10:27:44 INTEGRITY TESTS OR JUST THE GENERAL LACK OF CURIOSITY AS TO 10:27:47 WHY THESE WOULD BE NECESSARY T FAILURE TO FOLLOW BEST PRACTICES 10:27:51 THAT OUR INVESTIGATION TO DATE IS SHOWING WERE CRITICAL FACTORS 10:27:55 IN THIS INCIDENT. BUT THIS DECISION MAKING IS 10:27:58 DIFFICULT TO SQUARE WITH THE PRIORITIES OF BP'S CHIEF 10:28:04 EXECUTIVE. BEFORE YOU BECAME CHIEF 10:28:05 EXECUTIVE YOU DESCRIBED OUT THE DEPTH OF A WORKER SHAPED YOUR 10:28:10 OPINIONS, YOU SAID AND I'M QUOTING, I WENT TO THE FUNERAL 10:28:13 TO PAY MY RESPECTS. AT THE END OF THE SERVICE, HIS 10:28:17 MOTHER CAME UP TO ME AND BEAT ME ON THE CHEST, WHY DID YOU LET IT 10:28:21 HAPPEN, SHE ASKED. IT CHANGED THE WAY I THINK ABOUT 10:28:24 SAFETY. LEADERS MUST MAKE SAFETY OF ALL 10:28:26 WHO WORK FOR THEM A PRIORITY, END QUOTE. 10:28:29 MR. HAYWARD, I RESPECTFULLY REQUEST THAT YOU ANSWER THIS 10:28:33 QUESTION IN YOUR OPENING STATEMENT IF NOT FOR ME, THEN 10:28:35 FOR THE TWO LADIES WHO TESTIFIED BEFORE OUR COMMITTEE ON THE 10:28:38 FIELD HEARING WHO LOST THEIR HUSBANDS ON THE DEEP WATER 10:28:44 HORIZON. YOU HAVE BEEN CHIEF EXECUTIVE 10:28:46 SINCE 2007, YOU SAID SAFETY IS YOUR NUMBER ONE PRIORITY AND YOU 10:28:53 WOULD FOCUS LIKE A LASER BEAM ON SAFETY. 10:28:56 WE HAVE NOW LEARNED FROM THIS INVESTIGATION THAT BP EMPLOYEES 10:29:00 MADE FIVE CRITICAL DECISIONS THAT MAY HAVE CONTRIBUTED TO 10:29:04 WELL FAILURE WHERE WELL SAFETY WAS TRADED OFF. 10:29:06 IN FACT IT WAS NOT THE PRIORITY. SO TODAY, WILL YOU ASSERT BEFORE 10:29:10 THIS SUBCOMMITTEE THAT ALL DECISIONS BY BP EMPLOYEES 10:29:13 RELATED TO THE DEEP WATER HORIZON REFLECTED YOUR PRIORITY, 10:29:17 YOUR PRIORITY OF SAFETY FIRST. MR. CHAIRMAN, THE DISASTER IN 10:29:24 THE GULF OF MEXICO SHOWS A SERIES OF UNCHECKED BAD 10:29:27 DECISIONS, WE IN CONGRESS AND THE FEDERAL GOVERNMENT MUST ALSO 10:29:31 BE MINDFUL OF THE CONSEQUENCES OF BAD DECISION MAKING. 10:29:35 THE SUBCOMMITTEE HEARD SOME OF THE ADMINISTRATION'S DECISIONS 10:29:38 ARE THREATENING THE LIVELIHOODS OF WORKERS AND FAMILIES WHO 10:29:42 DEPEND UPON THE ENERGY INDUSTRY. WE HAVE KILLED HALF OF THEIR 10:29:45 FISHING WITH THE DEEP WATER HORIZON SPILL AND IT LOOKS LIKE 10:29:48 WE'RE GOING TO KILL THE OTHER HALF OF THEIR COMMITTEE WITH OUR 10:29:54 MORATORIUM. OUR HEARING TODAY LOOKS AT THE 10:29:56 CONSEQUENCES OF BAD DECISIONS AND THE LESSONS LEARNED, MAY WE 10:29:59 HAVE THE WISDOM AND HUMILITY TO TAKE SOME OF THOSE LESSONS AND 10:30:03 APPLY THEM TO OURSELVES? AND I YOOELTD YIELD BACK THE 10:30:08 BALANCE OF MY TIME. I WOULD LIKE TO TURN TO 10:30:10 CHAIRMAN OF THE ENERGY AND ENVIRONMENT SUBCOMMITTEE AND 10:30:12 CHAIRMAN OF THE SUBCOMMITTEE ON CLIMATE MR. MARKEY, FIVE MINUTES 10:30:19 FOR AN OPENING STATEMENT. THANK YOU, MR. CHAIRMAN, VERY 10:30:24 MUCH. I WANT TO BEGIN BY DISAGREES IN 10:30:26 THE STRONGEST POSSIBLE TERMS WITH WHAT MR. BARTON SAID IN HIS 10:30:34 OPENING STATEMENT. NOT ONLY IS THE COMPENSATION 10:30:38 FUND THAT WAS CREATED YESTERDAY AT THE WHITE HOUSE IN AN 10:30:48 AGREEMENT REACHED BY PRESIDENT OBAMA, NOT A SLUSH FUND AND NOT 10:30:53 A SHAKEUP, RATHER IT WAS THE GOVERNMENT OF THE UNITED STATES 10:31:00 WORKING TO PROTECT THE MOST VULNERABLE CITIZENS THAT WE HAVE 10:31:04 IN OUR COUNTRY RIGHT NOW. # WE CANNOT WAIT AS 10:31:29 INFORTUNATELY SO MANY CITIZENS WHO WERE VICTIMS OF THE "EXXON 10:31:35 VALDEZ" SPILL HAD TO WAIT YEARS IN ORDER TO SEE THOSE FAMILIES 10:31:38 COMPENSATED. WE CAN'T LOSE SIGHT OF THE FACT 10:31:47 THAT THE 1984 BOPAUL DISASTER AND THE LAWSUITS THAT WERE 10:31:54 RELATED TO IT WERE ONLY SETTLED LAST WEEK. 10:32:32 AFTER EXAMINING THE DOCUMENTS BP GAVE THE FAMILY $5,000. 10:32:40 THE FAMILIES IN THE GULF WILL BE CRUSHED FINANCIALLY UNLESS THIS 10:32:49 COMPENSATION FUND IS PUT INTO PLACE. 10:32:52 AS EACH DAY AND WEEK AND MONTH GOES BY, THE HISTORY OF THESE 10:32:58 FAMILIES ARE GOING TO BE ALTERED. 10:33:01 AND PERMANENTLY ALTERED UNLESS THEY ARE GIVEN THE FINANCIAL 10:33:06 CAPACITY TO TAKE CARE OF THEIR LOVED ONES, THEIR CHILDREN, 10:33:11 THEIR FAMILIES. IS THAT'S WHY THIS COMPENSATION 10:33:24 FUND IS SO IMPORTANT, THAT'S WHY IT IS NOT A SHAKEDOWN. 10:33:29 IT IS IN FACT PRESIDENT OBAMA ENSURING THAT A COMPANY WHICH 10:33:34 HAS SPOILED THE WATERS OF OUR NATION IS MADE ACCOUNTABLE FOR 10:33:39 THE HARM WHICH IS DONE TO OUR PEOPLE. 10:33:42 A COMPANY WHICH SAID FOR THE FIRST WEEK THAT IT WAS ONLY 10:33:46 1,000 BARRELS OF OIL PER DAY WHEN WE NOW KNOW THAT THEY KNEW 10:33:51 IT WAS AT LEAST 1,000 TO 14,000 BARRELS. 10:33:56 A COMPANY WHICH CONTINUES TO DENY THAT THERE WERE UNDERWATER 10:34:00 TOXIC PLUMES, A COMPANY WHICH HAS NOT BEEN PROVIDING THE 10:34:04 PROPER PROTECTIVE GEAR, A COMPANY THAT SAYS THEY COULD -- 10:34:21 THIS IS NOT A SHAKEDOWN OF THEIR COUNTRY, THIS IS THE AMERICAN 10:34:25 GOVERNMENT, PRESIDENT OBAMA ENSURING THAT THIS COMPANY IS 10:34:28 MADE ACCOUNTABLE AND SENDING A SIGNAL TO ALL OTHER COMPANIES 10:34:34 THAT SEEK TO TREAT ORDINARY AMERICAN FAMILIES IN A WAY THAT 10:34:40 CAN DESTROY THEIR ENTIRE FAMILY'S HISTORY. 10:34:43 THIS IS IN MY OPINION THE AMERICAN GOVERNMENT WORKING AT 10:34:45 ITS BEST. THIS IS CREATING TRULY THE KIND 10:34:50 OF PARTNERSHIP BETWEEN THE PUBLIC AND PRIVATE SECTOR. 10:34:54 THAT CAN MAKE SURE THAT INNOCENT VICTIMS ARE NOT ROAD KILL AS A 10:35:01 RESULT OF CORPORATE PLANS THAT DID NOT ACTUALLY FACTOR IN THE 10:35:05 HARM THAT CAN OCCUR TO ORDINARY FAMILIES. 10:35:08 SO I JUST COULD NOT DISAGREE MORE STRONGLY. 10:35:13 I THINK THAT THIS IS IN MY OPINION ONE OF THE MOST 10:35:17 IMPORTANT HEARINGS THAT THIS CONGRESS WILL EVER HAVE BECAUSE 10:35:20 IT IS ENDING A SIGNAL TO ANY CORPORATIONS OUT THERE INCLUDING 10:35:29 THE ONES THAT TESTIFIED ON TUESDAY THAT THEY HAD TO RESPOND 10:35:34 TO THE HARM WHICH COULD BE DONE IN THE GULF IF ONE OF THEIR RIGS 10:35:37 HAD THE SAME KIND OF CATASTROPHIC EVENT THAT THEY 10:35:41 WILL BE MADE ACCOUNTABLE. SO I THANK YOU, MR. CHAIRMAN FOR 10:35:47 HOLDING THIS HEARING AND I THANK YOU MR. HAYWARD BECAUSE 10:35:51 YESTERDAY WAS THE DAY WHERE THE PAGE BEGAN TO BE TURNED AND WE 10:35:57 MOVE TO A NEW ERA, WHERE IN FACT YOUR COMPANY IS MADE ACCOUNTABLE 10:36:03 AND THE CITIZENS OF THE GULF ARE MADE WHOLE. 10:36:05 THANK YOU, MR. CHAIRMAN. MR. SULLIVAN, HOLD YOUR 10:36:14 OPENING STATEMENT TO THREE MINUTES, PLEASE SIR. 10:36:17 CHAIRMAN, STUPAK, THANK YOU FOR HOLDING THIS HEARING TODAY. 10:36:23 ON APRIL 20, 2010, A FIRE -- THIS TERRIBLE DISASTER RESULTED 10:36:29 IN THE LOSS OF 11 LIVES AND INJURED MANY MORE MEMBERS OF THE 10:36:34 126-PERSON CREW. THERE IS NO QUESTION THAT THE BP 10:36:36 OIL SPILL IS A TRAGEDY. IN FACT IT IS THE WORST 10:36:41 ENVIRONMENTAL DISASTER IN OUR NATION'S HISTORY. 10:36:44 I BELIEVE WE MUST DO EVERYTHING IN OUR POWER TO CAP THE LEAK, 10:36:47 FIND OUT WHAT CAUSED THE EXPLOSION AND ENSURE NOTHING 10:36:50 LIKE THIS EVER HAPPENS AGAIN. BP MUST BEAR THE ENTIRE 10:36:56 FINANCIAL BURDEN FOR THIS DISASTER AND THE AMERICAN 10:36:58 TAXPAYER SHOULD NOT BE ON THE HOOK FOR A DIME. 10:37:02 ACCORDING TO THE OCCUPATION SAFETY HEALTH ADMINISTRATION, 10:37:05 THERE'S MOUNTING EVIDENCE THAT BP HAS ONE OF THE WORST SAFETY 10:37:09 RECORDS OF ANY MAJOR OIL COMPANY OPERATING IN THE UNITED STATES. 10:37:13 TO THIS END, I'M LOOKING FORWARD TO EXAMINING WITH MR. HAYWARD 10:37:18 WHETHER THERE IS A DEFICIENT SAFETY CULTURE AT BP THAT LED TO 10:37:22 THIS DISASTER AND OTHER RECENT ONES INCLUDING THE BP REFINELY 10:37:27 EXPLOSION IN 2005 IN TEXAS CITY, TEXAS AND A BP PIPELINE SPILL IN 10:37:34 2007 WE RELEASED 200,000 GALLONS OF OIL INTO THE ALASKAN 10:37:40 WILDERNESS. MR. HAYWARD WHY IS BP'S RECORD 10:37:43 ON SAFETY SO SPOTTY? WHAT IS EQUALLY AS IMPORTANT TO 10:37:48 COMBAT THE SPILL IS THE KNEE JERK LEGISLATION REACTION FROM 10:37:51 THE CONGRESS. RIGHT NOW THE ADMINISTRATION AND 10:37:53 THEIR ALLIES IN THE HOUSE ARE MORE FOCUSSED ON PUTTING THE OIL 10:37:57 AND GAS INDUSTRY OUT OF BUSINESS ON SOLUTIONS TO THE PROBLEM. 10:38:01 INSTEAD OF WORKING IN A BUY PART AN WAY FOR RIGOROUS SAFETY 10:38:07 STANDARDS ON ALL OFFSHORE RIGS, THE M IS EXPLOITING THIS 10:38:10 DISASTER TO ADVANCE THIS DISASTROUS CAP AND TRADE ENERGY 10:38:14 POLICY, WHICH WON'T STOP THE WELL FROM LEAKING BUT RATHER 10:38:19 WILL ONLY SERVE AS A NATIONAL TAX ON -- CRIPPLING OUR ECONOMY 10:38:23 AND MAKING THE UNEMPLOYMENT LINES LONGER. 10:38:26 I BELIEVE CONGRESS SHOULD WORK TOWARDS SAFETY INSPECTIONS ON 10:38:35 ALL OFFSHORE WELLS. A BAN ON OFFSHORE DRILLING WILL 10:38:38 ONLY PUT AMERICANS OUT OF WORK. BUT IT WILL SEND A -- IT WILL 10:38:43 SEND ENERGY AND GAS PRICES THROUGH THE ROOF AND INCREASE 10:38:47 OUR RELIANCE ON FOREIGN, IMPORTED OIL. 10:38:49 WE STILL HAVE WORK TO DO TO UNCOVER EXACTLY WHAT WENT WRONG 10:38:53 AND MR. QUESTIONS REMAIN ON THE ONGOING EFFORTS TO PLUG IS LEAK. 10:38:58 THIS SHOULD NOT BE AN EXCUSE TO -- AS WE WILL NEED MORE OIL 10:39:04 AND NATURAL GAS TO MEET THE CRUCIAL NEEDS OF OUR NATION, AND 10:39:07 I YIELD BACK THE BALANCE OF MY TIME. 10:39:11 I WOULD LIKE TO HEAR FROM THE CHAIRMAN EMERITUS OF THE ENERGY 10:39:16 COMMITTEE, MR. DINGLE FOR FIVE MINUTES, PLEASE, SIR. 10:39:19 CHAIRMAN, I COMMEND YOU FOR HOLDING THIS IMPORTANT HEARING 10:39:21 TODAY. WE SIT HERE ON DAY 59 OF THE 10:39:27 WORST ENVIRONMENTAL DISASTER IN THE HISTORY OF THIS COUNTRY. 10:39:31 11 PEOPLE ARE DEAD, THE ALREADY FRAGILE ECONOMY OF AN ENTIRE 10:39:38 REGION IS IN REAL DANGER OF SHATTERING. 10:39:40 WE WILL BE FEELING THE ENVIRONMENTING CONSEQUENCES FOR 10:39:41 YEARS TO COME. AND GOD ALMIGHTY ALONE KNOWS 10:39:47 WHAT THE HEALTH AND ENVIRONMENTAL EFFECTS OF THE 10:39:50 CONTAINMENT AND CLEANUP STRATEGIES WILL BE. 10:39:53 MILLIONS OF GALLONS OF CHEMICAL DISPERSANTS AND CONTROLLED 10:39:59 BURNS. SADLY WE CAN'T EVEN GET A DECENT 10:40:01 ESTIMATE OF THE AMOUNT OF OIL AND GAS THAT'S SPEWING OUT INTO 10:40:04 THE WATER. BP HAS BEEN BEFORE THIS 10:40:09 COMMITTEE MANY TIMES. AND RARELY HAS IT BEEN APLEASANT 10:40:12 MEETING. BECAUSE IN VARIABLY THEY HAVE 10:40:17 APPEARED HERE TO DEFEND SERIOUS FAILURES ON THE PART OF THE 10:40:20 COMPANY. THE COMPANY HAS A HISTORY OF 10:40:25 CUTTING CORNERS, APPARENTLY, FOR THE ALMIGHTY DOLLAR. 10:40:29 TEXAS CITY, THEY PAID THERE $50 MILLION IN CRIMINAL FINES, 10:40:36 ALASKA'S NORTH SIDE SLOPE WHICH WAS INVESTIGATED BY THIS 10:40:39 SUBCOMMITTEE, WHERE A PIPE CORRODED, ALLOWING 1 MILLION 10:40:42 LITERS OF OIL TO SPILL. IN EACH INSTANCE, WE WERE HOPING 10:40:48 THAT THE ASSURANCES GIVEN BY BP THAT THIS WOULD NOT HAPPEN AGAIN 10:40:55 HAVE BEEN REGRETTABLY UNTRUE. IN REFERENCE TO A DECISION ON 10:41:02 HOW TO SECURE THE FINAL 1,200 FEET OF THE WELL, A SINGLE 10:41:05 CASING OR TIE BACK OF BP ENGINEER SAID NOT RUNNING THE 10:41:10 TIE BACK 15I6S A GOOD DEAL OF TIME AND MONEY. 10:41:21 IN REFERENCE TO INSTALLING FOR CENTRALIZERS, A BP INSPECTOR 10:41:25 SAID, IT WILL TAKE TEN HOURS TO INSTALL THEM, I AM CONCERNED, I 10:41:32 DON'T WANT TO USE IT. SO WERE WE. 10:41:35 EVEN IF THE HOLE IS PERFECTLY STRAIGHT, AS STRAIGHT PIECE OF 10:41:40 PIPE, EVEN IN TENSION WILL NOT SEEK THE CENTER OF THE HOLE 10:41:44 UNLESS IT HAS SOMETHING TO CENTRALIZE IT. 10:41:47 I WANT YOU TO LISTEN TO THIS, BUT WHO CARES? 10:41:50 IT'S DONE, END OF STORY. IT WILL PROBABLY BE FINE. 10:41:53 AND NOTE THE WORD PROBABLY. AND WE'LL GET A GOOD CEMENT JOB. 10:41:57 I WOULD RATHER HAVE TO SQUEEZE THAT GETS STUCK, SO GUARD RIGHT 10:42:03 ON THE RISK-REWARD OCCASION. MR. CHAIRMAN, THE COMMENTS OF 10:42:09 OUR WITNESS TODAY REVEAL LITTLE SORROW FOR THE EVENTS THAT HAVE 10:42:13 OCCURRED. AND HERE HE SAID, THE GULF OF 10:42:16 MEXICO IS A VERY BIG OCEAN, THE AMOUNT OF VOLUME OF OIL AND 10:42:23 DISPERANT WE ARE PUTTING IN IS TINY IN RELATION TO THE TOTAL 10:42:28 WATER VOLUME AND THEN THE ENVIRONMENTAL IMPACT OF THE 10:42:32 DISASTER IS LIKELY TO BE VERY, VERY MODEST. 10:42:35 I WONDER IF HE WISHES TO STAND ON THAT STATEMENT TODAY. 10:42:39 WHEN MR. HAYWARD RESPONDED TO THE CLAIMS THAT CLEANUP WORKERS 10:42:43 WERE BECOMING ILL BECAUSE OF OIL FUMES AND SUCH, HE SAID THIS, 10:42:48 FOOD POISONING IS CLEARLY A BIG ISSUE. 10:42:51 FINALLY MOST FAMOUSLY, MR. HAYWARD INFORMS US HE WANTS HIS 10:42:58 LIFE BACK, LAST YEAR MR. HAYWARD ENJOYED A SPLENDID 40% PAY RAISE 10:43:05 EVEN THOUGH BP'S PROFITS DROPPED. 10:43:08 I JUST HAPPEN TO BE A POOR POLISH LAWYER FROM DETROIT. 10:43:11 BUT IT SEEMS TO ME THAT THIS IS A CURIOUS RESPONSE TO A DROP IN 10:43:15 PROFITS. IT MAKES ME WONDER WHAT THE 10:43:17 COMPENSATION PACKAGE OF OUR WITNESS WILL BE THIS YEAR. 10:43:21 MR. CHAIRMAN, AGAIN, I THANK YOU FOR YOUR DILIGENCE AND HARD WORK 10:43:24 ON THIS ISSUE. I LOOK FORWARD TO HEARING FROM 10:43:27 OUR WITNESSES TODAY AND LOOK FORWARD TO WORKING WITH YOU ON 10:43:29 THIS MATTER. THANK YOU. 10:43:32 THANK YOU, MR. CHAIRMAN. NEXT MS. BLACKBURN, IF YOU WILL 10:43:38 MAKE YOUR OPENING STATEMENT PLEASE. 10:43:40 THANK YOU, MR. CHAIRMAN, I THANK YOU AND RANKING MEMBER 10:43:43 BURGESS FOR HOLDING THE HEARING TODAY. 10:43:45 MR. HAYWARD, I THANK YOU FOR YOUR WILLINGNESS TO TESTIFY 10:43:48 BEFORE THIS COMMITTEE. YOU KNOW, WHEN NEWS OF THE BP 10:43:53 SPILL BEGAN AND INFORMATION ABOUT THE WELL STARTED TO 10:43:55 CIRCULATE, IT SEEMEDA THERE WAS PROBLEMS NOT ONLY WITH BP, BUT 10:44:00 ALSO WITH MMS BUREAUCRACY AND MAYBE THE PROBLEM LAY THERE 10:44:07 RATHER THAN WITH ANYTHING THAT COULD HAVE GONE WRONG WITH BP, 10:44:10 THAT IT WAS THERE WITH MMS. WHAT WELEARNED AND 10:44:17 CONFIRMED THAT THAT IS NOT CORRECT, THAT THE PROBLEM DOES 10:44:20 LIE WITH BP AND WHAT WENT WRONG, WHILE THERE ARE MANY FAULTS WITH 10:44:26 MMS ON SAFETY AND OVERSIGHT, MOST OF THE DATA POINTS TO WRONG 10:44:31 DECISION MAKING BY BP'S MANAGEMENT AND THIS IS NOT THE 10:44:33 FIRST TIME AND WE HAVE TALKED ABOUT THAT IN SEVERAL OF OUR 10:44:37 OPENING STATEMENTS THIS MORNING. IT'S NOT THE FIRST TIME WE HAVE 10:44:41 BEEN BEFORE THIS COMMITTEE ON SAFETY PROBLEMS, AND MOST 10:44:45 RECENTLY AS THE TEXAS CITY 2005 AND ALASKA INCIDENTS WHICH 10:44:49 REVEALED INSUFFICIENT PROTOCOLS IN BP'S MANAGEMENT AND SAFETY 10:44:55 HIERARCHY, THERE WAS A STATEMENT FROM BP THAT YOU ALL WOULD 10:44:59 QUOTE, UNQUOTE FOCUS LIKE A LIZZER ON SAFETY. 10:45:01 AND IT IS CONCERNING TO US THAT THE APPEARANCE IS, MR. HAYWARD 10:45:06 THAT BP HAS NOT LEARNED FROM PREVIOUS MISTAKES, SO IT LEAVES 10:45:10 US ASKING THE QUESTIONS OF YOU AND OF BP, WAS THIS ACCIDENT 10:45:16 CAUSED BY NEGLIGENCE? WAS IT CAUSED BY RISK TAKING? 10:45:21 WAS IT CAUSED BY COST CUTTING MEASURES? 10:45:24 BY BP DECISION MAKERS AND UNFORTUNATELY FOR CITIZENS, 10:45:30 BEACHES AND WILDLIFE ALL ALONG THE COASTAL REGION, THEY ARE 10:45:34 PAYING A PRICE FOR THOSE MISPLACED DECISIONS. 10:45:39 BP CANNOT BLAME MOTHER NATURE OR EQUIPMENT FAILURE OR EVEN OTHER 10:45:45 SUBCONTRACTORS. THEIR ACTIONS HAVE PUT AT RISK 10:45:48 THE LIVELIHOOD OF COMMUNITIES AND BUSINESSES THAT DEPEND ON 10:45:52 THE GULF, NOT ONLY FOR SEAFOOD AND TOURISM, BUT ALSO ENERGY 10:45:57 PRODUCTION THAT THIS NATION AS A WHOLE RELIES UPON. 10:46:02 IN ADDITION, THE CURRENT ADMINISTRATION ALSO SHARES A 10:46:05 SIGNIFICANT PORTION OF THE BLAME FOR THE OIL SPILL. 10:46:07 I MENTIONED MMS EARLIER AND THE MMS OFFICIALS APPROVED 10:46:12 INADEQUATE SPILL RESPONSE PLANS AND FIELD INSPECTORS RUBBER 10:46:17 STAMPED INSPECTION PAPERS SUBMITTED BY OIL COMPANIES. 10:46:20 THIS IS ANOTHER AREA WHERE WE AS MEMBERS OF CONGRESS IN DOING OUR 10:46:25 DUE DILIGENCE WILL ASK YOU ALL AND MMS WHY. 10:46:28 BUT WHAT IS THE MOST DAMAGING IS THAT THE PRESIDENT AND SENIOR 10:46:32 OFFICIALS KNEW ON DAY ONE THE BLOWOUT PREVENTER WAS NOT 10:46:35 WORKING AND KNEW OF THE POTENTIAL SPILLAGE. 10:46:39 WHILE BP SHOULDERS MUCH OF THE RESPONSIBILITY FOR THIS SPILL, 10:46:42 THE LACK OF EFFORT BY THIS ADMINISTRATION TO CONTAIN THE 10:46:45 SPILL HAS DOOMED THE ECONOMY AND WILDLIFE OF THE GULF COAST FROM 10:46:50 AN OIL SPILL WHICH COULD HAVE BEEN CONTAINED. 10:46:55 AND NOW RECENTLY IMPOSED DRILLING MORATORIUMS WILL 10:46:59 FURTHER DEVASTATE AMERICA'S ENERGY PRODUCTION AND WILL 10:47:02 DESTROY HUNDREDS OF THOUSANDS OF JOBS IN THE GULF COAST REGION. 10:47:06 THANK YOU FOR BEING WITH US TODAY, MR. CHAIRMAN, I YIELD THE 10:47:09 BALANCE OF MY TIME. THANK YOU. 10:47:13 I NEXT TURN TO VICE CHAIRMAN OF THE SUBCOMMITTEE, OPENING THREE 10:47:19 MINUTES SIR. MR. HAYWARD, YOU'RE NOT GOING 10:47:26 TO GET A LEK SCHUR FROM ME TODAY AND YOU'RE NOT GOING TO GET AN 10:47:31 APOLOGIES. QUITE FRANKLY THE PEOPLE WHO 10:47:33 LIVE ALONG THE AFFECTED AREA OF THE GULF COAST DESERVE ANSWERS 10:47:36 FROM YOU. WE WERE IN LOUISIANA LAST WEEK 10:47:38 AND WE HAD THE OPPORTUNITY TO HEAR FROM A VARIETY OF 10:47:43 INDIVIDUALS WHOSE LIVES HAVE BEEN DEVASTATED BY THIS OIL 10:47:45 DISASTER AND I USE THE WORD DISASTER SPECIFICALLY BECAUSE I 10:47:49 DON'T THINK SPILL QUITE CAPTURES THE MAGNITUDE OF WHAT'S GOING 10:47:51 ON. THE AMERICAN PEOPLE ARE 10:47:55 FRUSTRATED BECAUSE WE WERE FIRST TOLD THAT THIS WAS A 1,000 10:47:58 BARREL BER DAY RELEASE AND ABOUT A WEEK LATER THAT WAS UPDATED TO 10:48:03 5,000 BARRELS PER DAY. AND AT THE END OF MAY IT WAS 10:48:06 ADJUSTED UPWARDS OF 15,000 TO 19,000 BARRELS A DAY AND THIS 10:48:11 WEEK IT COULD BE AS HIGH AS 60,000 BARRELS A DAY. 10:48:18 THAT'S 17.5 MILLION GALLONS BER WEEK AND OVER THE LENGTH OF THIS 10:48:26 DISASTER IT COULD BE THE LARGEST RELEASE OF OIL IN THE NORTH 10:48:29 AMERICAN CONTINENT IN HISTORY, UNINTENDED. 10:48:31 ONE OF THE THINGS I THINK WE NEED TO KNOW ABOUT TODAY IS THE 10:48:35 DECISIONS THAT YOUR COMPANY MADE AND WHO AHEAD THEM THAT LED TO 10:48:39 THIS EXPLOSION AND SUBSEQUENT DISASTER, WHAT YOUR COMPANY IS 10:48:47 DOING TO FIX THIS PROBLEM AND WHAT YOUR COMPANY IS DOING FOR 10:48:49 ALL THE FAMILIES AND COMMUNITIES THAT HAVE BEEN DEVASTATED BY 10:48:52 THIS DISASTER AND I THINK IT WOULD BE HELP FOLLOW FOR YOU AND 10:48:57 EVERYBODY IN THIS HEARING ROOM TO HEAR FROM THOSE WOMEN WHO 10:49:02 TESTIFIED LAST WEEK, BECAUSE THEY RAISED VERY POINTED 10:49:05 QUESTIONS THAT WERE DIRECTED TO YOUR COMPANY, SIR, AND THEY WERE 10:49:08 QUESTIONED THAT WERE RAISED AFTER THEY GAVE PASSIONATE 10:49:10 TESTIMONY OF WANTING THE OIL AND GAS BUSINESS TO CONTINUE IN 10:49:15 LOUISIANA AND THE GULF COAST REGION. 10:49:17 SO I WOULD LIKE TO HAVE YOU LISTEN TO THEIR KMENTS IN THE 10:49:20 HEARING. THIS IS NATALEE ROSCO. 10:49:24 I WOULD LIKE TO LEAVE HERE TODAY KNOWING THAT BECAUSE OF MY 10:49:28 HUSBAND'S TRAGIC DEATH, WE CAN BEGIN TO FOCUS ON MAKING SAFETY 10:49:32 THE MOST IMPORTANT PRIORITY. NOT TO FOCUS ON MAKING MORE 10:49:38 SAFETY REGULATIONS, BUT ON WAYS TO SAFELY IMPLEMENT THE ONES 10:49:42 THAT WE ALREADY HAVE. THIS CHALLENGE WILL NOT BE IN 10:49:51 VAIN BECAUSE RIGHT NOW MY HUSBAND'S DEATH IS IN VAIN. 10:49:55 IT WILL NOT BE IN VAIN IF IT MAKE THE TOP PRIORITY 10:49:59 AND CAUSE THESE POWERFUL OIL COMPANIES TO KNOW THEY WILL BE 10:50:03 HELD ACCOUNTABLE FOR THEIR ACTIONS. 10:50:07 WILE I UNDERSTAND COMPANIES MUST MAKE A PROFIT. 10:50:11 THIS IS COURTNEY. I DO NOT BELIEVE IT SHOULD BE 10:50:13 AT THE EXPENSE OF RISKING LIVES OR DESTROYING FAMILIES I'M 10:50:17 ASKING TO YOU PLEASE CONSIDER HARSH PUNISHMENTS ON COMPANIES 10:50:21 WHO CHOOSE TO IGNORE SAFETY STANDARDS BEFORE OTHER FAMILIES 10:50:25 ARE DESTROYED. MY FAMILY CAN NEVER AND WILL 10:50:28 NEVER BE ADEQUATELY COMPENSATED FOR OUR LOSS. 10:50:32 THESE ARE NOW WIDOWS WITH SMALL CHILDREN TO TAKE CARE OF 10:50:36 AND THEY ARE THE SYMBOLS AND THE FACES OF THIS DISASTER AND I 10:50:40 LOOK FORWARD TO YOUR TESTIMONY. YIELD BACK THE BALANCE OF MY 10:50:42 TIME. THANK YOU. 10:50:46 NEXT TURN TO MR. GINGREY OF GEORGIA FOR OPENING STATEMENTS. 10:51:00 FIRST OF ALL, I WANT TO EXPRESS MY CONDOLENCES, WE MUST 10:51:05 REMEMBER THOSE LIVES AND THE LIVES OF THEIR FAMILIES AS WE 10:51:07 JUST SAW THAT WERE FOREVER CHANGED ON THAT FATEFUL APRIL 10:51:12 DAY AND WE MUST CONTINUE TO KEEP THEM IN OUR THOUGHTS AND 10:51:16 PRAYERS. FURTHER, WE HAVE AN OBLIGATION 10:51:17 NOT ONLY TO THOSE FAMILIES BUT TO EVERYONE AFFECTED BY THE 10:51:21 AFTERMATH TO GET TO THE BOTTOM OF THE CAUSES OF THIS ACCIDENT 10:51:24 AND THE FAILURE TO SECURE THE SITUATION AND STOP THE 10:51:28 DEVASTATION WRECKED UPON THE GULF COAST. 10:51:31 MR. CLARM, WE HAVE AN OPPORTUNITY IN THIS OVERSIGHT 10:51:34 HEARING TO ASK QUESTIONS TO GET TO THE FACTS OF WHAT HAPPENED. 10:51:37 HOWEVER, TODAY'S HEARING IS INCOMPLETE. 10:51:39 WE CAN ONLY ASCERTAIN HALF OF THE STORY TODAY BECAUSE WE DO 10:51:43 NOT HAVE ANYONE REPRESENTING THE ADMINISTRATION. 10:51:47 THE MINERAL MANAGEMENT SERVICE TO DISCUSS THEIR OVERSIGHT ROLE 10:51:50 AND THEIR RESPONSIBILITY IN ENSURING THAT AN ACCIDENT LIKE 10:51:53 THIS DIDN'T HAPPEN. DEEP OCEAN DRILLING IS NOT NEW. 10:51:57 IN FACT, WE BEEN DOING IT FOR DECADES IN THE GULF COAST. 10:52:00 WHY DID THIS HAPPEN NOW? I'VE HEARD SOME ASSERT THAT IT 10:52:05 WAS A LAX OVERSIGHT OF THE PREVIOUS ADMINISTRATION THAT LED 10:52:07 TO THIS ACCIDENT. WELL FW, THAT'S THE CASE, WHY 10:52:10 DID THIS NOT HAPPEN DURING THE LAST DECADE. 10:52:12 WHY DID THIS OCCUR ALMOST A YEAR AND A HALF INTO THE CURRENT 10:52:16 ADMINISTRATION. WE NEED TO HEAR FROM OUR OWN 10:52:19 DEPARTMENT OF INTERIOR. AND THE MINERAL MANAGEMENT 10:52:22 SERVICES. CERTAINLY, MR. HAYWARD SHOULD BE 10:52:24 PREPARED TO ANSWER BP'S RESPONSIBILITY BUT WE WILL ALSO 10:52:27 NEED ANSWERS FROM THE ADMINISTRATION SO THAT WE CAN 10:52:30 DEMAND ACCOUNTABILITY AND IMPLEMENT PRUDENT REFORMS TO 10:52:33 RETURN US TO SAFE DRILLING IN OUR OCEANS BECAUSE SIMPLY SAYING 10:52:37 NO TO FURTHER AND NEW DRILLING IS NOT A REALISTIC ANSWER. 10:52:42 I FURTHER REALIZE THERE ARE IN THIS ADMINISTRATION WHO HAVE 10:52:47 A PEN CLANT FOR NOT LETTING A CRISIS GO TO WASTE, BUT FOR A 10:52:51 NATION DEPENDENT ON FOREIGN OIL, FOR A NATION WITH UNEMPLOYMENT 10:52:55 HOVERING AT 10%, WE CAN'T JUST SAY WE CAN'T DO THIS. 10:52:58 WE CAN'T TAKE OUR BALL AND GO HOME WHETHER THE CONSEQUENCES 10:53:01 MEAN A WEAKER AMERICA. EVERYONE DEPENDING ON FOREIGN 10:53:06 FUELS, ALL TOO INCLINED IT SEEMS, TO LET JOBS LEAVE THIS 10:53:09 COUNTRY. NO, MR. CHAIRMAN, WE HAVE TO 10:53:12 UNDERSTAND WHAT HAPPENED ON AND LEADING UP TO APRIL 20th. 10:53:16 WE NEED TO ANSWER THOSE QUESTIONS TO DETERMINE IF THE 10:53:18 RULES OR AGENCY OVERNIGHT WIN SUFFICIENT OR IF THIS WAS PURELY 10:53:21 AN ACT OF NEGLIGENCE OR WANTON DISREGARD FOR SOUND REGULATIONS. 10:53:26 NOW WE CAN TRY TO ENACT THE PERFECT REFORM THAT ENSURES THIS 10:53:31 NEVER HAPPENS AGAIN BOUGHT IT WILL NOT CHANGE THE PAST OR THE 10:53:33 TOLL UPON THE LIVES FOREVER CHANGED. 10:53:35 MR. HAYWARD, THE RESPONSIBILITY TO MAKE THESE FAMILIES WHOLE 10:53:39 FALLS TO YOU AND YOUR COMPANY BP YOU HAVE AN OBLIGATION TO RIGHT 10:53:43 THIS WRONG AND NOT ONLY THE PUBLIC TRUST BUT ALSO TO BELIEVE 10:53:46 IN THE FREE MARKET AND ENTREPRENEURSHIP DEMAND IT. 10:53:49 MR. CHAIRMAN, I WAIT THE OPPORTUNITY TO ASK QUESTIONS 10:53:53 WITH THE HOPE THAT WE WILL SOON DISCUSS THESE SAME MATTERS WITH 10:53:56 OUR OWN ADMINISTRATION. AND I YIELD BACK. 10:53:58 THANK YOU, MR. GINGREY. MR. GETT FOR AN OPENING 10:54:06 STATEMENT. AS THIS SAN INVESTIGATIVE 10:54:08 HEARING. LIE SUBMIT MY EXCELLENT OPENING 10:54:12 STATEMENT FOR THE RECORD IN ORDER TO HAVE MORE TIME TO 10:54:15 QUESTION THE WITNESS. VERY WELL. 10:54:17 MR. DOYLE, OPENING STATEMENT. MR. CHAIRMAN, THANK YOU FOR 10:54:20 CONVENING THIS HEARING TODAY SO WE CAN BEGIN TO UNDERSTAND WHAT 10:54:23 WENT SO TRAGICALLY WRONG ON THE DEEP WATER HORIZON. 10:54:28 WE'RE NOW 59 DAYS INTO THIS TRAGEDY AND OIL CONTINUES TO 10:54:34 GUSH INTO THE GULF OF MEXICO. THE ESTIMATES FOR HOW MUCH OIL 10:54:37 SPILLS INTO THE GULF EACH DAY CONTINUE TO RISE AND WE STILL 10:54:40 HAVE NO WAY TO CAP THE WELL IN THE NEAR FUTURE. 10:54:43 WE SIT HELPLESSLY AS WE WAIT FOR A RELIEF WELL TO BE COMPLETED. 10:54:47 AS THE DETAILS AND FACTS ABOUT DEEP WATER HORIZON COME TO LIGHT 10:54:52 IT IS CLEAR TO US ALL THAT THE DECISIONS MADE BY OFFICIALS AT 10:54:57 BP THAT REFLEKTDED BAD JUDGMENT AT BEST AND CRIMINAL NEMPS AT 10:55:01 WORST, THROUGH THIS COMMITTEE'S INVESTIGATION, WE'VE LEARNED 10:55:04 THAT AT NEARLY EVERY TURN, BP CUT CORNERS. 10:55:08 AND N WELL DESIGN, THE NUMBER OF CENTRALIZERS THEY USED, WHETHER 10:55:11 TO RUN A CEMENT BOND LOCK, CIRCULATING DRILLING MUDS AND 10:55:16 SECURING THE WELL HEAD WITH A LOCKDOWN SLEEVE, BP TOOK THE 10:55:20 PATH OF LEAST RESISTANCE. ON TUESDAY, COLLEAGUES AND 10:55:23 COMPETITIVES FROM THE OIL AND GAS INDUSTRY PROVIDED SWORN 10:55:29 TESTIMONY THAT THEY BELIEVED BP DELINQUENCIES IN WELL DESIGN AND 10:55:32 FAILED TO FOLLOW THE BEST PRACTICES OF THE INDUSTRY. 10:55:35 NOW WE LEARN THAT BP HAD SEVERAL WARNINGS ABOUT THE McCONDO WELL 10:55:39 WITH ONE OF THEIR OWN ENGINEERS CALLING IT A NIGHTMARE WELL. 10:55:42 BUT INSTEAD OF TREATING THE WELL WITH CAUTION IT SEEMS THAT BP'S 10:55:46 ONLY INTEREST WAS IN COMPLETING THE WELL QUICKLY AND CHEAPLY. 10:55:51 MANY QUESTIONS STILL NEED TO BE ANSWERED. 10:55:54 WERE BP EMPLOYEES ON THE DEEP WATER HORIZON GIVE ORDERS FROM 10:55:58 BP OFFICIALS TO SPEED UP THE McCONDO WELL? 10:56:00 WERE THEY TOLD TO SLASH COSTS WHEREVER POSSIBLE? 10:56:04 WHY WOULD A TEAM ON BOARD THE RIG TO TEST THE CEMENTING OF THE 10:56:09 WELL BE SENT HOME BEFORE PERFORMING THE TEST? 10:56:13 SURELY IF A CEMENT BOND LOCK WAS EVER NECESSARY, IT WOULD BE IN A 10:56:17 NIGHTMARE WELL SITUATION. BUT SENDING THE TEAM HOME, BP 10:56:22 SAVED $100,000 AND NINE OR TEN HOURS OF WORK. 10:56:25 MR. HAYWARD, I HOPE YOU'RE HERE TODAY TO ANSWER QUESTIONS ABOUT 10:56:29 THE DECISION MADE ON DEEP WATER HORIZON THAT LED TO THIS TRAGIC 10:56:32 AND DEADLY BLOWOUT. EARLIER THIS WEEK, THIS 10:56:37 COMMITTEE SENT YOU A LETTER WITH DETAILED INFORMATION ABOUT 10:56:39 TOPICS WE WOULD LIKE YOU TO ADDRESS TODAY. 10:56:42 IN REVIEWING YOUR STATEMENTS SUBMITTED FOR TODAY'S HEARING, 10:56:45 I'M EXTREMELY DISAPPOINTED IN YOUR AVOIDANCE OF THE REQUESTED 10:56:49 TOPICS. I CERTAINLY HOPE THAT YOU USE 10:56:52 THE OPPORTUNITY TODAY TO ANSWER OUR QUESTIONS OPENLY AND 10:56:58 TRUTHFULLY. I KNOW BP COMMITTED TO CLEAN UP 10:56:59 THE GULF REGION AND I EXPECT THAT COMMITMENT TO BE ONGOING. 10:57:02 I WELCOME YOUR PLEDGE TO PAY DAMPS THROUGH A $20 BILLION 10:57:07 ESCROW FUND BUT THAT'S JUST THE TIP OF THE ICEBERG. 10:57:10 REBUILDING THE PUBLIC'S TRUST IN YOUR COMPANY AND YOUR INDUSTRY 10:57:13 WILL TAKE YEARS AND MANY SERIOUS CHANGES IN THE WAY YOU DO 10:57:18 BUSINESS. WHEN YOU OPERATE ON OUR LAND AND 10:57:21 IN OUR WATERS, YOU'RE ONLY THERE BECAUSE THE PUBLIC'S TRUST HAS 10:57:26 ALLOWED YOU TO BE THERE. YOU VIOLATED THAT TRUST IN THE 10:57:29 WORST POSSIBLE WAY. MR. HAYWARD, I LOOK FORWARD TO 10:57:32 YOUR TESTIMONY. I LOOK FORWARD TO ANSWERS TO OUR 10:57:35 QUESTIONS AND YOUR ONGOING EFFORTS TO GAIN AMERICA'S TRUST. 10:57:38 MR. CHAIRMAN, I YIELD BACK. THANK YOU, MR. DOYLE. 10:57:44 MR. GRIFFITH FOR OPENING STATEMENTS. 10:57:46 THREE MINUTES, PLEASE. THANK YOU. 10:57:48 MR. CHAIRMAN AND RANKING MEMBER FOR CALLING THIS IMPORTANT 10:57:52 HEARING TODAY. MR. HAYWARD FOR TAKING TIME TO 10:57:55 COME BEFORE OUR SUBCOMMITTEE TO DISCUSS WHAT HAPPENED ON THE 10:57:58 DEEP WATER HORIZON. I KNOW THAT LIKE US, YOUR NUMBER 10:58:01 ONE PRIORITY IS STOPPING THE FLOW OF OIL. 10:58:06 CONGRESS AND THIS COMMITTEE OWE IT TO THE AMERICAN PEOPLE DO 10:58:09 WHATEVER WE CAN TO AID THE UNIFIED COMMAND IN REACHING THIS 10:58:12 GOAL. THIS IS A TIME FOR ENGINEERING 10:58:14 AND ACTION I HOPE YOU WILL LET US KNOW WHAT WE CAN DO IN 10:58:17 CONGRESS TO BE HELPFUL. THERE ARE STILL MANY QUESTIONS 10:58:19 TO BE ANSWERED ABOUT WHAT HAPPENED ON THE DEEP WATER 10:58:21 HORIZON AND UNFORTUNATELY WE DO KNOW THAT THE DOCUMENTS THAT 10:58:24 WE'RE REVIEWING IT DOES NOT LOOK GOOD. 10:58:28 MY HOPE FOR OUR HEARING TODAY IS THAT WE WILL BE ABLE TO PUT 10:58:31 POLITICAL PUBLIC RELATIONS SHENANIGANS ASIDE AND FOCUS 10:58:35 UNDERSTANDING WHY DECISIONS WERE MADE AND HOW BP AND THE INDUSTRY 10:58:38 CAN ENSURE THAT THEY LEARN FROM THIS INCIDENT SO THAT DRILLING 10:58:42 SAFELY FOR OUR VALUABLE RESOURCES CAN CONTINUE. 10:58:45 AND I MIGHT SAY THIS TO YOU, YOU'RE NEVER AS GOOD AS THEY SAY 10:58:50 YOU ARE OR AS BAD AS THEY SAY YOU ARE. 10:58:52 SO THIS HEARING WILL GO BACK AND FORTH. 10:58:54 THE OTHER THING I'D LIKE TO REMIND THE COMMITTEE IS THAT THE 10:59:00 GREATEST ENVIRONMENTAL DISASTER IN AMERICA HAS BEEN CIGARETTES.
House Energy Hearing with Tony Hayward / Witness / 1000-1100
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 10:02:03 BART STUPAK: THIS MEETING WILL COME TO 10:03:10 ORDER, WE'RE GOING TO ASK THE PRESS TO PLEASE CLEAR. 10:03:51 THIS HEARING OF THE SUBCOMMITTEE OF THE ENERGY AND 10:03:55 COMMERCE COMMITTEE, THE SUBCOMMITTEE ON OVERSIGHT 10:03:59 INVESTIGATIONS WILL COMMENCE OUR HEARING. 10:04:01 TODAY WE HAVE A HEARING TITLED BP'S ROLE IN THE DEEP WATER 10:04:11 HORIZON ENERGY SPILL. I WELCOME THE MEMBERS OF THE 10:04:16 ENERGY AND COMMERCE COMMITTEE AND THEY WILL BE ALLOWED TO 10:04:21 SUBMIT WRITTEN STATEMENTS FOR THE RECORD, BUT WILL NOT DELIVER 10:04:25 VERBAL OPENING STATEMENTS AND IN ADDITION MEMBERS WHO ARE NOT ON 10:04:34 THE SUBCOMMITTEE OR ON THE ENERGY AND COMMERCE COMMITTEE 10:04:38 ARE WILL BE TO OBSERVE, BUT THEY WILL NOT BE ALLOWED TO ASK 10:04:43 QUESTIONS DUE TO TIME CONSTRAINTS, THE CHAIRMAN, THE 10:04:47 RANKING MEMBER AND THE CHARITY EMERITUS WILL BE RECOGNIZED FOR 10:04:52 THREE MINUTE OPENING STATEMENTS. I WILL YIELD TO THE CHAIRMAN OF 10:05:01 THE FULL COMMITTEE MR. WAXMAN FOR THE FIRST OPENING STATEMENT. 10:05:05 THANK YOU VERY MUCH MR. CHAIRMAN, THANK YOU FOR HOLDING 10:05:09 THIS VERY IMPORTANT HEARING. AND MR. HAYWARD, THANK YOU FOR 10:05:12 BEING HERE TODAY. YESTERDAY BP PLEDGED TO 10:05:15 ESTABLISH A $20 BILLION ESCROW ACCOUNT AND TO SUSPEND ITS 10:05:20 DIVIDEND PAYMENTS FOR THE REST OF THE YEAR. 10:05:23 I'M SURE THESE WERE NOT EASY DECISIONS FOR YOU, BUT THEY WERE 10:05:26 THE RIGHT ONES AND I COMMEND YOU FOR THEM. 10:05:30 CONGRESS HAS MULTIPLE COMMITTEES EXAMINING THE GULF OIL SPILL, 10:05:34 SOME ARE EVALUATING THE IMPACT OF THE SPILL, SOME ARE WORKING 10:05:38 ON THE REORGANIZATION OF THE REGULATORY AGENCIES AND SOME 10:05:42 INCLUDING CHAIRMAN MARKEY'S SUBCOMMITTEE ARE DRAFTING 10:05:46 LEGISLATION TO REFORM OUR OIL EXPLORATION LAWS. 10:05:50 YOU ARE TESTIFYING TODAY BEFORE THE OVERSIGHT AND INVESTIGATION 10:05:55 SUBCOMMITTEE AND THIS SUBCOMMITTEE HAS A SPECIAL ROLE. 10:05:59 SO EXAMINE THE FACTS AND DETERMINE WHAT WENT WRONG AND TO 10:06:02 MAKE RECOMMENDATIONS TO PREVENT FUTURE SPILLS. 10:06:06 WHEN IT'S TIME FOR QUESTIONING, I AND OTHER MEMBERS OF THE 10:06:09 SUBCOMMITTEE WILL ASK YOU ABOUT A SERIES OF INTERNAL BP 10:06:12 DOCUMENTS. THEY APPEAR TO SHOW THAT BP 10:06:18 REPEATEDLY TOOK SHORTCUTS THAT ENDANGERED LIVES AND INCREASED 10:06:22 THE RISKS OF A CATASTROPHIC BLOWOUT. 10:06:26 AND I SENT YOU A LETTER IN ADVANCE INDICATING THAT WE'RE 10:06:29 GOING TO QUESTION YOU ABOUT THOSE ISSUES. 10:06:32 BUT WHAT IS EQUALLY IMPORTANT IS WHAT IS MISSING FROM THE 10:06:34 DOCUMENTS. WHEN YOU BECAME CEO OF BP, YOU 10:06:41 PROMISED TO FOCUS LIKE A LASER ON SAFE AND RELIABLE OPERATIONS. 10:06:45 WE WANTED TO KNOW WHAT YOU HAD DONE TO KEEP THIS PROMISE. 10:06:49 SO WE ASKED WHAT E-MAILS YOU HAD RECEIVED, WHAT DOCUMENTS YOU HAD 10:06:53 REVIEWED. ABOUT THE DEEP WATER HORIZON RIG 10:07:00 OR TO THE McCONDO WELL BEFORE THE BLOWOUT. 10:07:03 DEEP WATER DRILLING IS INHERENTLY DANGEROUS, AS THE 10:07:09 ENTIRE COUNTRY NOW KNOWSES, AN UNCONTROLLED BLOWOUT CAN KILL 10:07:15 RIG WORKERS AND CAUSE AN ENVIRONMENTAL DISASTER. 10:07:18 WE WANT TO KNOW IF YOU WERE BRIEFED BE THE RISKS AND WERE 10:07:22 MONITORING THE SAFETY OF THE DRILLING OPERATION. 10:07:27 WE CAN FIND NO EVIDENCE THAT YOU PAID ANY ATTENTION TO THE 10:07:30 TREMENDOUS RISKS BP WAS TAKING. WE HAVE REVIEWED 30,000 PAGES OF 10:07:38 DOCUMENTS FROM BP INCLUDING YOUR E-MAILS, THERE IS NOT A SINGLE 10:07:44 E-MAIL OR DOCUMENT THAT SHOWS YOU PAID EVEN THE SLIGHTEST 10:07:47 ATTENTION TO THE DANGERS AT THIS WELL. 10:07:49 YOU ARE THE CEO. SO WE CONSIDER THE POSSIBILITY 10:07:51 THAT YOU MAY HAVE DELEGATED THE OVERSIGHT RESPONSIBILITY TO 10:07:59 SOMEONE ELSE WE REVIEWED THE EMAILS AND BELIEVING DOCUMENTS 10:08:04 RECEIVED BY THE CHIEF EXECUTIVE FOR EXPLORATION AND PRODUCTION 10:08:09 AND DOUG SUTTLES, THE CHIEF OPERATING OFFICER FOR 10:08:17 PRODUCTION. ACCORDING TO BP, THESE ARE THE 10:08:25 SENIOR OFFICIALS RESPONSIBLE FOR THE McCONDO WELL, BUT THEY TOO 10:08:31 WERE APPARENTLY BLIVIOUS TO WHAT WAS HAPPENING. 10:08:37 WE CAN SEE NO E-MAILS OR DEBRIEFINGS ABOUT THE DEEP WATER 10:08:44 HORIZON. BP'S CORPORATE COMPLACENCY IS 10:08:50 ASTONISHING, THE DRILLING ENGINE FOR THE RIG, CALLED McCONDO, A 10:08:56 NIGHTMARE WELL. OTHER BP EMPLOYEES PREDICTED 10:08:59 THAT THE CEMENT JOB WOULD FAIL. HALLIBURTON WARNED OF A SEVERE 10:09:03 GAS FLOW PROBLEM. THESE WARNINGS FELL ON DEAF 10:09:08 EARS. BP'S CORPORATE ATTITUDE MAY BEST 10:09:11 BE SUMMED UP IN AN E-MAIL FROM HIS OPERATIONS DRILLING ENGINEER 10:09:16 WHO OVERSAW BP'S TEAM OF DRILLING ENGINEERS. 10:09:21 AFTER LEARNING OF THE RISKS AND BP'S DECISION TO IGNORE THEM, HE 10:09:26 WROTE, QUOTE, WHO CARES? IT'S DONE, END OF STORY, WE'LL 10:09:30 PROBABLY BE FINED, END QUOTE. THERE IS A COMPLETE 10:09:37 CONTRADICTION BETWEEN BP'S WORDS AND DEEDS. 10:09:39 YOU WERE BROUGHT IN TO MAKE SAFETY THE TOP PRIORITY OF BP, 10:09:44 BUT UNDER YOUR LEADERSHIP, BP HAS TAKEN THE MOST EXTREME 10:09:50 RISKS. BP CUT CORNER AFTER CORNER TO 10:09:53 SAVE A MILLION DOLLARS HERE A FEW HOURS OR DAYS THERE AND NOW 10:09:57 THE WHOLE GULF COAST IS PAYING THE PRICE. 10:10:00 TODAY'S HEARING WILL FOCUS ON BP'S ACTIONS, BUT WE LEARNED 10:10:04 FROM OUR HEARING EARLIER THIS WEEK THAT THE OTHER OIL 10:10:07 COMPANIES ARE JUST AS UNPREPARED TO DEAL WITH A MASSIVE SPILL AS 10:10:10 BP. WE ARE SEE IN THE OIL INDUSTRY 10:10:16 THE SAME CORPORATE INDIFFERENCE TO RISK THAT CAUSED THE COME 10:10:18 LANCE ON WALL STREET. AND THAT IS WHY REFORM IS SO 10:10:24 URGENTLY NEEDED, PART OF THIS REFORM MUST BE LEGISLATION TO 10:10:28 PUT TEETH INTO OUR REGULATORY SYSTEM BUT PART MUST ALSO BE A 10:10:33 TRANSITION TO A CLEAN ENERGY ECONOMY. 10:10:36 WE'RE ADDICTED TO OIL, THIS ADDICTION IS FOULING OUR 10:10:40 BEACHES, POLLUTING OUR ATMOSPHERE AND UNDERMINING OUR 10:10:42 NATIONAL SECURITY. WE CAN'T SNAP OUR FINGERS OR 10:10:49 TRANSFORM OUR ENERGY ECONOMY OVERNIGHT, BUT WE NEED TO START 10:10:52 DOWN A PATH TO A CLEAN ENERGY FUTURE. 10:10:55 MR. CHAIRMAN, I LOOK FORWARD TO TODAY'S HEARING AND MR. HAYWARD 10:11:00 I THANK YOU FOR APPEARING AND COOPERATING WITH OUR 10:11:04 INVESTIGATION. NEXT GO TO THE FULL COMMITTEE 10:11:08 REMEMBER BART STUPAK OF TEXAS. THANK YOU, MR. CHAIRMAN, 10:11:15 THANK YOU MR. HAYWARD FOR APPEARING BEFORE US. 10:11:19 WE HAVE KIND OF A DUAL TRACK UNDERWAY IN MY OPINION. 10:11:25 WE OBVIOUSLY ARE TRYING TO GATHER THE FACTS, WHAT HAPPENED 10:11:27 IN THE OIL SPILL IN THE GULF OF MEXICO A MONTH AND A HALF AGO, 10:11:35 TRYING TO FIND OUT THE CLOSE. WE HAVE A SYSTEM BUILT UP BASED 10:11:58 ON THE BRITISH TRADITION OVER 200 YEARS OF DUE PROCESS AND 10:12:02 FAIRNESS WHERE PEOPLE THAT DO BAD THINGS OR IN THIS CASE A 10:12:08 CORPORATION THAT'S RESPONSIBLE FOR A BAD ACCIDENT, WE WANT TO 10:12:13 HOLD THEM RESPONSIBLE, DO WHAT WE CAN TO MAKE THE LIABLE 10:12:16 PARTIES PAY FOR THE DAMAGES. MR. STUPAK AND MR. WAXMAN ARE 10:12:20 DOING AN EXCELLENT JOB WORKING WITH DR. BURR NEGLIGENCE AND 10:12:27 MYSELF IN CONDUCTING I THINK A FAIR OVERSIGHT 10:12:30 INVESTIGATION. BOAR GOING TO GET INTO A NUMBER 10:12:38 OF THOSE ISSUES. I'M SPEAKING TOTALLY FOR MYSELF, 10:12:42 I'M NOT SPEAKING FOR THE REPUBLICAN PARTY, I'M NOT 10:12:45 SPEAKING FOR ANYBODY IN THE HOUSE OF REPRESENTATIVES BUT 10:12:46 MYSELF. BUT I'M ASHAMED OF WHAT HAPPENED 10:12:51 IN THE WHITE HOUSE YESTERDAY. I THINK IT IS A TRAGEDY IN THE 10:13:04 FIRKS PROPORTION THAT I WOULD CHARACTERIZE AS A SHAKEDOWN, IN 10:13:11 THIS CASE A $20 BILLION SHAKEDOWN, WITH THE ATTORNEY 10:13:16 GENERAL OF THE UNITED STATES WHO IS CONDUCTING A CRIMINAL 10:13:19 INVESTIGATION AND HAS EVERY RIGHT TO DO THAT TO PROTECT THE 10:13:25 AMERICAN PEOPLE. PARTICIPATING IN WHAT AMOUNTS TO 10:13:30 A $20 MILLION SLUSH FUND WHICH I THINK SET ASTER RIBL PRECEDENT 10:13:35 FOR THE FUTURE. IF I CALLED YOU INTO MY OFFICE. 10:13:41 AVSHTD AND I HAD THE SUBCOMMITTEE CHAIRMAN MR. STUPAK 10:13:45 WITH ME WHO WAS LEGITIMATELY SUBJECTING AN OVERSIGHT 10:13:49 INVESTIGATION ON YOUR COMPANY AND SAID IF YOU PUT SO MANY 10:13:53 MILLIONS OF DOLLARS IN A PROJECT IN MY CONSTITUTIONAL DISTRICT I 10:14:02 COULD GO TO JAIL AND SHOULD GO TO JAIL. 10:14:09 NO THERE IS NO QUESTION THAT BRITISH PETROLEUM OWNS THIS K 10:14:21 LEAK, THAT BP MADE DECISIONS THAT PEOPLE MAY QUESTION. 10:14:27 THERE IS NO QUESTION THAT BP IS LIABLE FOR THE DAMAGES, BUT WE 10:14:31 HAVE A DUE PROCESS SYSTEM WHERE WE GO THROUGH HEARINGS, IN SOME 10:14:36 CASES COURT CASES, LITIGATION AND DETERMINE WHAT THOSE DAMAGES 10:14:38 ARE AND WHEN THOSE DAMAGES SHOULD BE PAID. 10:14:45 SO I'M ONLY SPEAKING FOR MYSELF, I'M NOT SPEAKING FOR ANYBODY 10:14:52 ELSE, BUT I APOLOGIZE, I DO NOT WANT TO LIVE IN A COMPANY WHERE 10:14:56 ANY TIME A CITIZEN FOR A CORPORATION DOES SOMETHING THAT 10:14:59 IS LEGITIMATELY WRONG IS SUBJECT TO SOME SORT OF POLITICAL 10:15:08 PRESSURE THAT IS AGAIN IN MY WORDS AMOUNTS TO SHAKEDOWN. 10:15:10 SO I APOLOGIZE. SO ON THIS HEARING TODAY, I AM 10:15:17 WITH MR. WAXMAN, WITH MR. STUPAK, THERE ARE QUESTIONS THAT 10:15:23 NEED TO BE ASKED THAT ARE LEGITIMATE BECAUSE WE DON'T WANT 10:15:27 ANOTHER OIL SPILL OF THIS MAGNITUDE OR OF ANY MAGNITUDE IN 10:15:32 THE GULF OF MEXICO AND IF THIS SUBCOMMITTEE CAN DO THINGS THAT 10:15:37 MAKE IT MUCH MORE DIFFICULT FOR THIS TYPE OF AN INCIDENT TO 10:15:40 OCCUR IN THE FUTURE, THEN WE WILL HAVE DONE OUR WORK FOR THE 10:15:42 AMERICAN PEOPLE. WITH THAT, MR. CHAIRMAN, I YIELD 10:15:47 BACK. TODAY IS THE 59th DAY OF THE 10:15:57 BP OIL SPILL THAT HAS DEVASTATED MUCH OF THE GULF OF MEXICO. 10:15:59 11 MEN LOST THEIR LIVES THE DAY THE DEEP WATER HORIZON DRILLING 10:16:04 RIG EXPLODED AND IN THE 59 DAYS THAT HAVE FOLLOWED, COUNTLESS 10:16:10 PEOPLE HAVE LOST THEIR LIVELIHOOD AS THE OIL POLLUTES 10:16:16 FISHING GROUNDS AND DAMAGES THE BEACHES OF THE UNITED STATES. 10:16:22 OUR FIRST HEARING EXPOSED PROBLEMS DISCOVERED WITH THE 10:16:26 BLOWOUT PREVENTSER AND SEVERAL OTHER FACTORS THAT CONTRIBUTED 10:16:31 TO THE DISASTER. OUR SECOND HEARING WAS A FIELD 10:16:37 HEARING IN NEW ORLEANS WHERE WE HEARD FROM THE WIDOWS OF TWO 10:16:41 WOMEN WHOSE HUSBANDS DIED IN THE DEEP WATER HORIZON. 10:16:54 WE HAVE BEEN SITTING THROUGH MORE THAN 50 HOURS OF BRIEFINGS 10:16:58 OF CORPORATE, GOVERNMENTAL EXPERTS TO DETERMINE WHAT WENT 10:17:02 WRONG WITH EXPLORATION OF THE McCONDO WELL. 10:17:05 WE HAVE REVIEWED SEVERAL QUESTIONABLE DECISIONS MADE BY 10:17:09 BP IN THE DAYS AND HOURS LEADING UP TO THE EXPLOSION AND WHAT WE 10:17:13 HAVE LEARNED SO FAR IS ALARMING. WE HAVE LEARNED THAT TIME AFTER 10:17:17 TIME, BP HAD WARNING SIGNS THAT THIS WAS AS ONE EMPLOYEE PUT IT 10:17:23 A NIGHTMARE WELL. FOR EXAMPLE, BP DISREGARDED 10:17:31 QUESTIONABLE RESULTS FROM PRESSURE TESTS AFTER CEMENTS IN 10:17:34 THE WELL. BP SELECTED THE RISKIER OF TWO 10:17:38 OPTIONS FOR THEIR WELL DESIGN. THEY COULD HAVE HUNG A LINER 10:17:41 FROM THE LOWER END OF THE CASING ALREADY IN THE WELL AND INSTALL 10:17:44 A TIE BACK ON THE TOP OF THE LINER WHICH WOULD HAVE PROVIDED 10:17:48 ADDITIONAL BARRIERS TO THE RELEASE OF HYDROCARBONS, INSTEAD 10:17:53 THEY LOWERED A FULL STRING OF THE NEW CASING WHICH TOOK LESS 10:17:59 TIME AND COST LESS BUT DID NOT PROVIDE THE SAME PROTECTION OF 10:18:04 ESCAPING HYDROCARBONS. BP WAS WARNED BY HALLIBURTON 10:18:13 COULD HAVE A BIG PROBLEM IF THEY -- BP REJECTED 10:18:20 HALLIBURTON'S ADVICE TO USED ADDITIONAL CENTRALIZERS IN AN 10:18:25 E-MAIL ON APRIL 16. A BP OFFICIAL INVOLVED IN THE 10:18:28 DECISION EXPLAINED AND I QUOTE, IT WILL TAKE TEN HOURS TO 10:18:32 INSTALL THEM, I DON'T LIKE THIS. BP CHOSE NOT TO FULLY CIRCULATE 10:18:36 THE MUD IN THE WELL FROM THE BOTTOM TO THE TOP, WHICH WAS AN 10:18:40 INDUSTRY RECOMMENDED BEST PRACTICE THAT WOULD HAVE ALLOWED 10:18:44 THEM TO TEST FOR GAS IN THE MUD. BP CHOSE NOT TO USE A CASING 10:18:49 HANGAR LOCKDOWN SLEEVE WHICH WOULD HAVE PROVIDED EXTRA 10:18:52 PROTECTION AGAINST A BLOWOUT FROM BELOW. 10:18:54 THESE ARE JUST A FEW OF THE ISSUES THAT LED TO THE DISASTER. 10:18:59 ONCE DEEP WATER HORIZON EXPLODED AND SAN TO BE THE BOTTOM OF THE 10:19:07 SEA, BP'S DECISION TO CLEAN UP THE SPILL WAS EQUALLY AS POOR. 10:19:14 THEY ISSUED ESTIMATES WHICH MAY HAVE LED TO A SCALED BACK 10:19:17 RESPONSE. WE DISCOVERED THAT BP'S OIL 10:19:20 SPILL RESPONSE PLAN WAS VIRTUALLY IDENTICAL TO OTHER OIL 10:19:25 COMPANIES' PLANS, IN A HEARING TUESDAY, EXXONMOBIL CEO REX 10:19:31 TILLERSON SAID THAT ONCE THE SPILLS OCCUR, WE'RE NOT EQUIPPED 10:19:36 TO HANDLE THEM, END QUOTE. OUR WITNESS TODAY MR. TONY 10:19:44 HAYWARD IS A CHIEF EXECUTIVE OFFICER OF BP, SHORTLY AFTER MR. 10:19:48 HAYWARD TOOK OVER AS THE CEO IN 2007, HE HELD A TOWN HALL 10:19:52 MEETING WITH EMPLOYEES IN HOUSTON THAT. 10:19:55 MEETING HE DISCUSSED THE NEED FOR BP TO BE A LEADER WITH FEWER 10:19:59 PEOPLE IN DECISION MAKING PROCESS. 10:20:01 THIS ARTICLE AND I ASK YOU TO PUT UP THE GUARDIAN ARTICLE. 10:20:06 IN AN ARTICLE FROM SEPTEMBER 2007, GUARDIAN NEWSPAPER, 10:20:12 HAYWARD SAYS OIL COMPANY HAS BECOME TOO CAUTIOUS, ASSURANCE 10:20:15 IS KILLING US, MR. HAYWARD TOLD U.S. STAFF NOTING THAT TOO MANY 10:20:21 PEOPLE WERE ENGAGED IN DECISION MAKING LEADING TO EXCESSIVE 10:20:25 CAUTIOUSNESS SOMETHING THAT CRITICS OF ITS SAFETY 10:20:27 PERFORMANCE IN THE U.S. MIGHT QUESTION. 10:20:29 LET ME PUT UP THESE OTHER NOTES FROM THE SAME MEETING. 10:20:32 WE RECEIVED NOTES FROM BP OF EMPLOYEES AND THEIR NOTE TAKING 10:20:36 FROM THIS MEETING. THE EMPLOYEE NOTES SUMMIT RISED 10:20:40 MR. HAYWARD'S STATEMENTS AS FOLLOWS. 10:20:42 I DON'T THINK HAVING ALL THESE LAYERS OF ASSURANCE REDUCES 10:20:48 RISKS AND IT CAN ACTUALLY INCREASE IT. 10:20:51 INDIVIDUALS NEED TO BE ACCOUNTABLE FOR RISK AND TO 10:20:54 MANAGE IT, END OF QUOTE. I FIND THIS CAVALIER ATTITUDE 10:20:58 TOWARD ASSESSING RISK UNBELIEVABLE, GIVEN THE FACT 10:21:01 THAT AT THE TIME OF THESE STATEMENTS, BP HAD JUST BEEN 10:21:04 RESPONSIBLE FOR THE LARGEST OIL LEAK IN ALASKA HISTORY ON THE 10:21:07 NORTH SLOPE AS WELL AS THE 2005 TEXAS CITY REFINERY EXPLOSION 10:21:13 WHICH KILLED 50 WORKERS AND INJURED ANOTHER 170. 10:21:16 I MUST ASK MR. HAYWARD WHETHER IT WAS WISE TO ADOPT THIS LEANER 10:21:22 DECISION-MAKING PROCESS WITH INPUT FROM FEWER PEOPLE AND A 10:21:24 NEW APPROACH TO MANAGING RISK. UNDER THE LEADERSHIP OF THE 10:21:30 FORMER CHAIRMAN OF BP AMERICA, BP CREATED AN INDEPENDENT OFFICE 10:21:36 OF THE OMBUDSMAN. THE OMBUDSMAN OFFICE WAS 10:21:39 ESTABLISHED BECAUSE LINE WORKERS REPORTED FEARING RETALIATION IF 10:21:43 THEY REPORTED SAFETY CONCERNS TO MANAGEMENT. 10:21:46 WHEN THE CURRENT CHAIRMAN AND PRESIDENT LAMAR McKAY TOOK OVER, 10:21:49 I MET WITH HIM AND HE SUGGESTED THAT HE HOPED TO IMPROVE THE 10:21:53 CULTURE ENOUGH TO MAKE THE OMBUDSMAN OFFICE UNNECESSARY SO 10:21:58 HE COULD SHUT IT DOWN. I URGED HIM NOT TO ELIMINATE THE 10:22:01 OFFICE BECAUSE IT SERVES A SIGNIFICANT ROLE IN 10:22:04 INVESTIGATING EMPLOYEE COMPLAINTS. 10:22:06 I'M MORE CONCERNED THAN EVER ABOUT BP'S SAFETY AND THE ROLE 10:22:09 THEY TAKE IN ASSUMING RISK. I'M CONCERNED THAT THE CORPORATE 10:22:18 CULTURE, THE CHAIRMAN OF PRESIDENT OF LAMAR McKAY THAT 10:22:24 THERE'S A WILLINGNESS TO CUT COSTS AND TAKE GREATER RISKS, I 10:22:29 LOOK FORWARD TO HEARING THE ANSWERS OF MR. HAYWARD OUR MANY 10:22:33 HARD HITTING COMMITTEE MEMBER ALSO HEAR TODAY. 10:22:36 I HOPE WE WILL HEAR HONEST, CONTRITE AND SUBSTANTIVE 10:22:41 ANSWERS. MR. HAYWARD, YOU OWE IT TO ALL 10:22:45 AMERICANS, FOR THE AMERICANS WHO LIVE AND WORK ON THE GULF COAST, 10:22:48 IT MAY BE YEARS BEFORE THEY GET THEIR LIVES BACK, FOR THE 10:22:51 AMERICANS WHO LOST THEIR LIVES ON THE RIGS, THEIR FAMILIES MAY 10:22:54 NEVER GET THEIR LIVES BACK. MR. HAYWARD, I'M SURE YOU WILL 10:22:57 GET YOUR LIFE BACK AND WITH A GOLDEN PARACHUTE BACK TO 10:23:02 ENGLAND. BUT WE IN AMERICA ARE LEFT WITH 10:23:05 A TERRIBLE CONSEQUENCES OF BP'S RECKLESS DISREGARD FOR SAFETY. 10:23:12 I YIELD BACK MY TIME. TODAY IT DOES OPEN OUR THIRD 10:23:20 HEARING AND A VERY CRITICAL HEARING IN THE DEEP WATER 10:23:32 HORIZON OIL SPILL. THIS HEARING PROVIDES THE 10:23:36 SUBCOMMITTEE WITH AN IMPORTANT OPPORTUNITY TO DIRECTLY QUESTION 10:23:39 THE MAN WHO ULTIMATELY LEADS BP, MR. TONY HAYWARD AND BP'S ROLE 10:23:44 HAS BEEN CENTRAL TO THE CAUSES OF THE INCIDENT AND TO THE 10:23:47 RESPONSE OVER THE COURSE OF OUR INQUIRY TODAY, COMMITTEE 10:23:51 INVESTIGATORS WORKING IN A BY PARTISAN FASHION HAVE CONDUCTED 10:23:56 NUMEROUS INTERVIEWS AND BRIEFINGS AND REVIEWED TENS OF 10:23:59 THOUSANDS OF PAGES OF DOCUMENTS, OUR SUBCOMMITTEE HAS DONE AN 10:24:04 EXCELLENT JOB AND THIS SUB COMMITTEE HAS BEEN FOCUSED ON 10:24:07 GATHERING THE FACTS RATHER THAN RUSHING TO JUDGMENT. 10:24:09 AND FROM THIS INTENSIVE EFFORT WE HAVE BEGUN TO HAVE A SERIES 10:24:16 OF QUESTIONS, EXPLORING THESE AND RELATED QUESTIONS TODAY WILL 10:24:20 HELP US IDENTIFY FOR CONGRESS AND IDENTIFY FOR THE COUNTRY 10:24:24 WHAT WENT WRONG ON APRIL 20th AND THE DAYS THEREAFTER, AND 10:24:27 WHILE WE ARE INVESTIGATING, A PICTURE OF THE CHAIN OF EVENTS 10:24:30 LEADING TO THIS INCIDENT IS EMERGING. 10:24:33 MR. CHAIRMAN, YOU AND CHAIRMAN WAXMAN RECENTLY OUTLINED SOME 10:24:37 CRITICAL QUESTIONS THAT WE HOPE MR. HAYWARD WILL ADDRESS, FOR 10:24:41 EXAMPLE YOU NOTED THE INVESTIGATION HAS IDENTIFIED 10:24:44 QUESTIONABLE CHOICES BY BP ENGINEERS TO USE A PARTICULAR 10:24:47 WELL DESIGN OVER ANOTHER ONE THAT WOULD APPEAR TO HAVE 10:24:51 PROVIDED MORE BUILT IN BARRIERS TO AN UNCRIMINALED GADDIS 10:24:53 CHARGE. THERE WAS THE CHOICE MADE BY BP 10:24:57 TO MOVE FORWARD WITH WHAT APPEARS TO BE AN INADEQUATE 10:25:02 CEMENTING PLAN AND THE RELATED FAILURE DESPITE CLEAR WARNINGS 10:25:06 TO TEST THAT THE CEMENT WAS PROPERLY IN PLACE. 10:25:08 AND IT APPEARS THERE MAY HAVE BEEN A RUSH TO MOVE OFF THIS 10:25:12 WELL, WHETHER THERE MAY HAVE BEEN ECONOMIC OR OTHER TIME AND 10:25:16 PERFORMANCE MEASURES OR SOME COMBINATION THEREOF, IT IS NOT 10:25:21 CLEAR BURKS THAT CLARITY NEEDS TO EMERGE TODAY. 10:25:24 THE QUESTION OUTLINED IN THE CENTRAL ROLE OF BP'S DECISION 10:25:27 MAKING APPEARS THAT BP'S DECISION MAKING APPEARS TO HAVE 10:25:30 HAD IN THIS INCIDENT. WE NEED TO UNDERSTAND THAT 10:25:34 DECISION MAKING, MR. HAYWARD. WHAT FACTORS INFLUENCED IT, 10:25:38 WHETHER THE DECISIONS REFLECTED A MANAGEMENT AND AN OPERATIONAL 10:25:42 MIND SET THAT FAILED, FAILED TO MAXIMIZE SAFETY IN A CHALLENGING 10:25:45 DEEP SEA ENVIRONMENT. IT IS IMPORTANT TO NOTE THAT THE 10:25:49 PICTURE DEVELOPING FROM THIS INVESTIGATION IS NOT ONE OF 10:25:53 TECHNOLOGICAL LIMITS IN DEEP SEA DRILLING, THE CONSTRUCTION OF AN 10:25:58 18,000-FOOT WELL WAS NOT PUSHING THE ENVELOPE OF ENGINEERING KNOW 10:26:01 HOW SO FAR AS WE IDENTIFIED, BUT THE PICTURE DEVELOPING IS ONE OF 10:26:06 UNSAFE INDUSTRY PRACTICES, ALTHOUGH CLEARER MORE FOCUSEDED 10:26:11 INDUSTRY STANDARDS MAY BE ABLE GOING FORWARD, THE BEST INDUSTRY 10:26:16 PRACTICE WOULD HAVE RESULTED IN MORE CAUTIOUS DESIGNS AND MORE 10:26:21 TESTING, MORE SAFEGUARDS AND ULTIMATELY NO LOSS OF CONTROL OF 10:26:24 THE WELL. RATHER AND QUITE CLEARLY THE 10:26:29 PICTURE IS QUESTIONING DECISION MAKING BY PEOPLE CHARGED WITH 10:26:32 DESIGNING AND SUCCESSFULLY DRILLING, AND CONTROLLING A WELL 10:26:37 THAT IS A MILE UNDER WATER. IT IS A SERIES OF CHOICES WHICH 10:26:41 TAKEN TOGETHER CREATED AN OIL WELL PARTICULARLY VULNERABLE TO 10:26:44 A BLOWOUT AND OF ALL THE PEOPLE WHO MAY HAVE BEEN DISTRACTED, 10:26:48 UNAWARE OR RESISTANT TO RECOGNIZING THE PROBLEMS AROUND 10:26:52 THEM. DOCUMENTS SHOW THAT BP WAS 10:26:54 PREPARED TO RUN A TEST ON THE QUALITY OF THE CEMENT SHOT, BUT 10:26:58 CHOSE NOT TO. I CAN'T UNDERSTAND WHY GIVEN THE 10:27:01 HISTORY OF THIS PARTICULAR WELL WITH FOUR PREVIOUS WELL 10:27:04 CONTROLLED INCIDENTS IN THE TWO MONTHS PRY YOU TO APRIL 20. 10:27:08 THE RIG PERSONNEL APPEAR TO HAVE TAKEN THEIR EYE OFF THE BALL. 10:27:13 BP EMPLOYEES WERE THE KEY D 10:27:18 DECISION MAKERS. CERTAINLY OTHERS MAY HAVE 10:27:21 CONTRIBUTED TO THIS INCIDENT. THE OVERALL EFFECTIVENESS OF THE 10:27:28 RESPONSE AND THE EFFORT TO HELP THOSE HARMED BY THE INCIDENT IS 10:27:34 SOMETHING WE MUST -- BUT IT IS BP'S DECISION MAKING ABOUT THE 10:27:37 WELL DESIGN, THE CEMENTING PROGRAM, THE PREPARATION, THE 10:27:44 INTEGRITY TESTS OR JUST THE GENERAL LACK OF CURIOSITY AS TO 10:27:47 WHY THESE WOULD BE NECESSARY T FAILURE TO FOLLOW BEST PRACTICES 10:27:51 THAT OUR INVESTIGATION TO DATE IS SHOWING WERE CRITICAL FACTORS 10:27:55 IN THIS INCIDENT. BUT THIS DECISION MAKING IS 10:27:58 DIFFICULT TO SQUARE WITH THE PRIORITIES OF BP'S CHIEF 10:28:04 EXECUTIVE. BEFORE YOU BECAME CHIEF 10:28:05 EXECUTIVE YOU DESCRIBED OUT THE DEPTH OF A WORKER SHAPED YOUR 10:28:10 OPINIONS, YOU SAID AND I'M QUOTING, I WENT TO THE FUNERAL 10:28:13 TO PAY MY RESPECTS. AT THE END OF THE SERVICE, HIS 10:28:17 MOTHER CAME UP TO ME AND BEAT ME ON THE CHEST, WHY DID YOU LET IT 10:28:21 HAPPEN, SHE ASKED. IT CHANGED THE WAY I THINK ABOUT 10:28:24 SAFETY. LEADERS MUST MAKE SAFETY OF ALL 10:28:26 WHO WORK FOR THEM A PRIORITY, END QUOTE. 10:28:29 MR. HAYWARD, I RESPECTFULLY REQUEST THAT YOU ANSWER THIS 10:28:33 QUESTION IN YOUR OPENING STATEMENT IF NOT FOR ME, THEN 10:28:35 FOR THE TWO LADIES WHO TESTIFIED BEFORE OUR COMMITTEE ON THE 10:28:38 FIELD HEARING WHO LOST THEIR HUSBANDS ON THE DEEP WATER 10:28:44 HORIZON. YOU HAVE BEEN CHIEF EXECUTIVE 10:28:46 SINCE 2007, YOU SAID SAFETY IS YOUR NUMBER ONE PRIORITY AND YOU 10:28:53 WOULD FOCUS LIKE A LASER BEAM ON SAFETY. 10:28:56 WE HAVE NOW LEARNED FROM THIS INVESTIGATION THAT BP EMPLOYEES 10:29:00 MADE FIVE CRITICAL DECISIONS THAT MAY HAVE CONTRIBUTED TO 10:29:04 WELL FAILURE WHERE WELL SAFETY WAS TRADED OFF. 10:29:06 IN FACT IT WAS NOT THE PRIORITY. SO TODAY, WILL YOU ASSERT BEFORE 10:29:10 THIS SUBCOMMITTEE THAT ALL DECISIONS BY BP EMPLOYEES 10:29:13 RELATED TO THE DEEP WATER HORIZON REFLECTED YOUR PRIORITY, 10:29:17 YOUR PRIORITY OF SAFETY FIRST. MR. CHAIRMAN, THE DISASTER IN 10:29:24 THE GULF OF MEXICO SHOWS A SERIES OF UNCHECKED BAD 10:29:27 DECISIONS, WE IN CONGRESS AND THE FEDERAL GOVERNMENT MUST ALSO 10:29:31 BE MINDFUL OF THE CONSEQUENCES OF BAD DECISION MAKING. 10:29:35 THE SUBCOMMITTEE HEARD SOME OF THE ADMINISTRATION'S DECISIONS 10:29:38 ARE THREATENING THE LIVELIHOODS OF WORKERS AND FAMILIES WHO 10:29:42 DEPEND UPON THE ENERGY INDUSTRY. WE HAVE KILLED HALF OF THEIR 10:29:45 FISHING WITH THE DEEP WATER HORIZON SPILL AND IT LOOKS LIKE 10:29:48 WE'RE GOING TO KILL THE OTHER HALF OF THEIR COMMITTEE WITH OUR 10:29:54 MORATORIUM. OUR HEARING TODAY LOOKS AT THE 10:29:56 CONSEQUENCES OF BAD DECISIONS AND THE LESSONS LEARNED, MAY WE 10:29:59 HAVE THE WISDOM AND HUMILITY TO TAKE SOME OF THOSE LESSONS AND 10:30:03 APPLY THEM TO OURSELVES? AND I YOOELTD YIELD BACK THE 10:30:08 BALANCE OF MY TIME. I WOULD LIKE TO TURN TO 10:30:10 CHAIRMAN OF THE ENERGY AND ENVIRONMENT SUBCOMMITTEE AND 10:30:12 CHAIRMAN OF THE SUBCOMMITTEE ON CLIMATE MR. MARKEY, FIVE MINUTES 10:30:19 FOR AN OPENING STATEMENT. THANK YOU, MR. CHAIRMAN, VERY 10:30:24 MUCH. I WANT TO BEGIN BY DISAGREES IN 10:30:26 THE STRONGEST POSSIBLE TERMS WITH WHAT MR. BARTON SAID IN HIS 10:30:34 OPENING STATEMENT. NOT ONLY IS THE COMPENSATION 10:30:38 FUND THAT WAS CREATED YESTERDAY AT THE WHITE HOUSE IN AN 10:30:48 AGREEMENT REACHED BY PRESIDENT OBAMA, NOT A SLUSH FUND AND NOT 10:30:53 A SHAKEUP, RATHER IT WAS THE GOVERNMENT OF THE UNITED STATES 10:31:00 WORKING TO PROTECT THE MOST VULNERABLE CITIZENS THAT WE HAVE 10:31:04 IN OUR COUNTRY RIGHT NOW. # WE CANNOT WAIT AS 10:31:29 INFORTUNATELY SO MANY CITIZENS WHO WERE VICTIMS OF THE "EXXON 10:31:35 VALDEZ" SPILL HAD TO WAIT YEARS IN ORDER TO SEE THOSE FAMILIES 10:31:38 COMPENSATED. WE CAN'T LOSE SIGHT OF THE FACT 10:31:47 THAT THE 1984 BOPAUL DISASTER AND THE LAWSUITS THAT WERE 10:31:54 RELATED TO IT WERE ONLY SETTLED LAST WEEK. 10:32:32 AFTER EXAMINING THE DOCUMENTS BP GAVE THE FAMILY $5,000. 10:32:40 THE FAMILIES IN THE GULF WILL BE CRUSHED FINANCIALLY UNLESS THIS 10:32:49 COMPENSATION FUND IS PUT INTO PLACE. 10:32:52 AS EACH DAY AND WEEK AND MONTH GOES BY, THE HISTORY OF THESE 10:32:58 FAMILIES ARE GOING TO BE ALTERED. 10:33:01 AND PERMANENTLY ALTERED UNLESS THEY ARE GIVEN THE FINANCIAL 10:33:06 CAPACITY TO TAKE CARE OF THEIR LOVED ONES, THEIR CHILDREN, 10:33:11 THEIR FAMILIES. IS THAT'S WHY THIS COMPENSATION 10:33:24 FUND IS SO IMPORTANT, THAT'S WHY IT IS NOT A SHAKEDOWN. 10:33:29 IT IS IN FACT PRESIDENT OBAMA ENSURING THAT A COMPANY WHICH 10:33:34 HAS SPOILED THE WATERS OF OUR NATION IS MADE ACCOUNTABLE FOR 10:33:39 THE HARM WHICH IS DONE TO OUR PEOPLE. 10:33:42 A COMPANY WHICH SAID FOR THE FIRST WEEK THAT IT WAS ONLY 10:33:46 1,000 BARRELS OF OIL PER DAY WHEN WE NOW KNOW THAT THEY KNEW 10:33:51 IT WAS AT LEAST 1,000 TO 14,000 BARRELS. 10:33:56 A COMPANY WHICH CONTINUES TO DENY THAT THERE WERE UNDERWATER 10:34:00 TOXIC PLUMES, A COMPANY WHICH HAS NOT BEEN PROVIDING THE 10:34:04 PROPER PROTECTIVE GEAR, A COMPANY THAT SAYS THEY COULD -- 10:34:21 THIS IS NOT A SHAKEDOWN OF THEIR COUNTRY, THIS IS THE AMERICAN 10:34:25 GOVERNMENT, PRESIDENT OBAMA ENSURING THAT THIS COMPANY IS 10:34:28 MADE ACCOUNTABLE AND SENDING A SIGNAL TO ALL OTHER COMPANIES 10:34:34 THAT SEEK TO TREAT ORDINARY AMERICAN FAMILIES IN A WAY THAT 10:34:40 CAN DESTROY THEIR ENTIRE FAMILY'S HISTORY. 10:34:43 THIS IS IN MY OPINION THE AMERICAN GOVERNMENT WORKING AT 10:34:45 ITS BEST. THIS IS CREATING TRULY THE KIND 10:34:50 OF PARTNERSHIP BETWEEN THE PUBLIC AND PRIVATE SECTOR. 10:34:54 THAT CAN MAKE SURE THAT INNOCENT VICTIMS ARE NOT ROAD KILL AS A 10:35:01 RESULT OF CORPORATE PLANS THAT DID NOT ACTUALLY FACTOR IN THE 10:35:05 HARM THAT CAN OCCUR TO ORDINARY FAMILIES. 10:35:08 SO I JUST COULD NOT DISAGREE MORE STRONGLY. 10:35:13 I THINK THAT THIS IS IN MY OPINION ONE OF THE MOST 10:35:17 IMPORTANT HEARINGS THAT THIS CONGRESS WILL EVER HAVE BECAUSE 10:35:20 IT IS ENDING A SIGNAL TO ANY CORPORATIONS OUT THERE INCLUDING 10:35:29 THE ONES THAT TESTIFIED ON TUESDAY THAT THEY HAD TO RESPOND 10:35:34 TO THE HARM WHICH COULD BE DONE IN THE GULF IF ONE OF THEIR RIGS 10:35:37 HAD THE SAME KIND OF CATASTROPHIC EVENT THAT THEY 10:35:41 WILL BE MADE ACCOUNTABLE. SO I THANK YOU, MR. CHAIRMAN FOR 10:35:47 HOLDING THIS HEARING AND I THANK YOU MR. HAYWARD BECAUSE 10:35:51 YESTERDAY WAS THE DAY WHERE THE PAGE BEGAN TO BE TURNED AND WE 10:35:57 MOVE TO A NEW ERA, WHERE IN FACT YOUR COMPANY IS MADE ACCOUNTABLE 10:36:03 AND THE CITIZENS OF THE GULF ARE MADE WHOLE. 10:36:05 THANK YOU, MR. CHAIRMAN. MR. SULLIVAN, HOLD YOUR 10:36:14 OPENING STATEMENT TO THREE MINUTES, PLEASE SIR. 10:36:17 CHAIRMAN, STUPAK, THANK YOU FOR HOLDING THIS HEARING TODAY. 10:36:23 ON APRIL 20, 2010, A FIRE -- THIS TERRIBLE DISASTER RESULTED 10:36:29 IN THE LOSS OF 11 LIVES AND INJURED MANY MORE MEMBERS OF THE 10:36:34 126-PERSON CREW. THERE IS NO QUESTION THAT THE BP 10:36:36 OIL SPILL IS A TRAGEDY. IN FACT IT IS THE WORST 10:36:41 ENVIRONMENTAL DISASTER IN OUR NATION'S HISTORY. 10:36:44 I BELIEVE WE MUST DO EVERYTHING IN OUR POWER TO CAP THE LEAK, 10:36:47 FIND OUT WHAT CAUSED THE EXPLOSION AND ENSURE NOTHING 10:36:50 LIKE THIS EVER HAPPENS AGAIN. BP MUST BEAR THE ENTIRE 10:36:56 FINANCIAL BURDEN FOR THIS DISASTER AND THE AMERICAN 10:36:58 TAXPAYER SHOULD NOT BE ON THE HOOK FOR A DIME. 10:37:02 ACCORDING TO THE OCCUPATION SAFETY HEALTH ADMINISTRATION, 10:37:05 THERE'S MOUNTING EVIDENCE THAT BP HAS ONE OF THE WORST SAFETY 10:37:09 RECORDS OF ANY MAJOR OIL COMPANY OPERATING IN THE UNITED STATES. 10:37:13 TO THIS END, I'M LOOKING FORWARD TO EXAMINING WITH MR. HAYWARD 10:37:18 WHETHER THERE IS A DEFICIENT SAFETY CULTURE AT BP THAT LED TO 10:37:22 THIS DISASTER AND OTHER RECENT ONES INCLUDING THE BP REFINELY 10:37:27 EXPLOSION IN 2005 IN TEXAS CITY, TEXAS AND A BP PIPELINE SPILL IN 10:37:34 2007 WE RELEASED 200,000 GALLONS OF OIL INTO THE ALASKAN 10:37:40 WILDERNESS. MR. HAYWARD WHY IS BP'S RECORD 10:37:43 ON SAFETY SO SPOTTY? WHAT IS EQUALLY AS IMPORTANT TO 10:37:48 COMBAT THE SPILL IS THE KNEE JERK LEGISLATION REACTION FROM 10:37:51 THE CONGRESS. RIGHT NOW THE ADMINISTRATION AND 10:37:53 THEIR ALLIES IN THE HOUSE ARE MORE FOCUSSED ON PUTTING THE OIL 10:37:57 AND GAS INDUSTRY OUT OF BUSINESS ON SOLUTIONS TO THE PROBLEM. 10:38:01 INSTEAD OF WORKING IN A BUY PART AN WAY FOR RIGOROUS SAFETY 10:38:07 STANDARDS ON ALL OFFSHORE RIGS, THE M IS EXPLOITING THIS 10:38:10 DISASTER TO ADVANCE THIS DISASTROUS CAP AND TRADE ENERGY 10:38:14 POLICY, WHICH WON'T STOP THE WELL FROM LEAKING BUT RATHER 10:38:19 WILL ONLY SERVE AS A NATIONAL TAX ON -- CRIPPLING OUR ECONOMY 10:38:23 AND MAKING THE UNEMPLOYMENT LINES LONGER. 10:38:26 I BELIEVE CONGRESS SHOULD WORK TOWARDS SAFETY INSPECTIONS ON 10:38:35 ALL OFFSHORE WELLS. A BAN ON OFFSHORE DRILLING WILL 10:38:38 ONLY PUT AMERICANS OUT OF WORK. BUT IT WILL SEND A -- IT WILL 10:38:43 SEND ENERGY AND GAS PRICES THROUGH THE ROOF AND INCREASE 10:38:47 OUR RELIANCE ON FOREIGN, IMPORTED OIL. 10:38:49 WE STILL HAVE WORK TO DO TO UNCOVER EXACTLY WHAT WENT WRONG 10:38:53 AND MR. QUESTIONS REMAIN ON THE ONGOING EFFORTS TO PLUG IS LEAK. 10:38:58 THIS SHOULD NOT BE AN EXCUSE TO -- AS WE WILL NEED MORE OIL 10:39:04 AND NATURAL GAS TO MEET THE CRUCIAL NEEDS OF OUR NATION, AND 10:39:07 I YIELD BACK THE BALANCE OF MY TIME. 10:39:11 I WOULD LIKE TO HEAR FROM THE CHAIRMAN EMERITUS OF THE ENERGY 10:39:16 COMMITTEE, MR. DINGLE FOR FIVE MINUTES, PLEASE, SIR. 10:39:19 CHAIRMAN, I COMMEND YOU FOR HOLDING THIS IMPORTANT HEARING 10:39:21 TODAY. WE SIT HERE ON DAY 59 OF THE 10:39:27 WORST ENVIRONMENTAL DISASTER IN THE HISTORY OF THIS COUNTRY. 10:39:31 11 PEOPLE ARE DEAD, THE ALREADY FRAGILE ECONOMY OF AN ENTIRE 10:39:38 REGION IS IN REAL DANGER OF SHATTERING. 10:39:40 WE WILL BE FEELING THE ENVIRONMENTING CONSEQUENCES FOR 10:39:41 YEARS TO COME. AND GOD ALMIGHTY ALONE KNOWS 10:39:47 WHAT THE HEALTH AND ENVIRONMENTAL EFFECTS OF THE 10:39:50 CONTAINMENT AND CLEANUP STRATEGIES WILL BE. 10:39:53 MILLIONS OF GALLONS OF CHEMICAL DISPERSANTS AND CONTROLLED 10:39:59 BURNS. SADLY WE CAN'T EVEN GET A DECENT 10:40:01 ESTIMATE OF THE AMOUNT OF OIL AND GAS THAT'S SPEWING OUT INTO 10:40:04 THE WATER. BP HAS BEEN BEFORE THIS 10:40:09 COMMITTEE MANY TIMES. AND RARELY HAS IT BEEN APLEASANT 10:40:12 MEETING. BECAUSE IN VARIABLY THEY HAVE 10:40:17 APPEARED HERE TO DEFEND SERIOUS FAILURES ON THE PART OF THE 10:40:20 COMPANY. THE COMPANY HAS A HISTORY OF 10:40:25 CUTTING CORNERS, APPARENTLY, FOR THE ALMIGHTY DOLLAR. 10:40:29 TEXAS CITY, THEY PAID THERE $50 MILLION IN CRIMINAL FINES, 10:40:36 ALASKA'S NORTH SIDE SLOPE WHICH WAS INVESTIGATED BY THIS 10:40:39 SUBCOMMITTEE, WHERE A PIPE CORRODED, ALLOWING 1 MILLION 10:40:42 LITERS OF OIL TO SPILL. IN EACH INSTANCE, WE WERE HOPING 10:40:48 THAT THE ASSURANCES GIVEN BY BP THAT THIS WOULD NOT HAPPEN AGAIN 10:40:55 HAVE BEEN REGRETTABLY UNTRUE. IN REFERENCE TO A DECISION ON 10:41:02 HOW TO SECURE THE FINAL 1,200 FEET OF THE WELL, A SINGLE 10:41:05 CASING OR TIE BACK OF BP ENGINEER SAID NOT RUNNING THE 10:41:10 TIE BACK 15I6S A GOOD DEAL OF TIME AND MONEY. 10:41:21 IN REFERENCE TO INSTALLING FOR CENTRALIZERS, A BP INSPECTOR 10:41:25 SAID, IT WILL TAKE TEN HOURS TO INSTALL THEM, I AM CONCERNED, I 10:41:32 DON'T WANT TO USE IT. SO WERE WE. 10:41:35 EVEN IF THE HOLE IS PERFECTLY STRAIGHT, AS STRAIGHT PIECE OF 10:41:40 PIPE, EVEN IN TENSION WILL NOT SEEK THE CENTER OF THE HOLE 10:41:44 UNLESS IT HAS SOMETHING TO CENTRALIZE IT. 10:41:47 I WANT YOU TO LISTEN TO THIS, BUT WHO CARES? 10:41:50 IT'S DONE, END OF STORY. IT WILL PROBABLY BE FINE. 10:41:53 AND NOTE THE WORD PROBABLY. AND WE'LL GET A GOOD CEMENT JOB. 10:41:57 I WOULD RATHER HAVE TO SQUEEZE THAT GETS STUCK, SO GUARD RIGHT 10:42:03 ON THE RISK-REWARD OCCASION. MR. CHAIRMAN, THE COMMENTS OF 10:42:09 OUR WITNESS TODAY REVEAL LITTLE SORROW FOR THE EVENTS THAT HAVE 10:42:13 OCCURRED. AND HERE HE SAID, THE GULF OF 10:42:16 MEXICO IS A VERY BIG OCEAN, THE AMOUNT OF VOLUME OF OIL AND 10:42:23 DISPERANT WE ARE PUTTING IN IS TINY IN RELATION TO THE TOTAL 10:42:28 WATER VOLUME AND THEN THE ENVIRONMENTAL IMPACT OF THE 10:42:32 DISASTER IS LIKELY TO BE VERY, VERY MODEST. 10:42:35 I WONDER IF HE WISHES TO STAND ON THAT STATEMENT TODAY. 10:42:39 WHEN MR. HAYWARD RESPONDED TO THE CLAIMS THAT CLEANUP WORKERS 10:42:43 WERE BECOMING ILL BECAUSE OF OIL FUMES AND SUCH, HE SAID THIS, 10:42:48 FOOD POISONING IS CLEARLY A BIG ISSUE. 10:42:51 FINALLY MOST FAMOUSLY, MR. HAYWARD INFORMS US HE WANTS HIS 10:42:58 LIFE BACK, LAST YEAR MR. HAYWARD ENJOYED A SPLENDID 40% PAY RAISE 10:43:05 EVEN THOUGH BP'S PROFITS DROPPED. 10:43:08 I JUST HAPPEN TO BE A POOR POLISH LAWYER FROM DETROIT. 10:43:11 BUT IT SEEMS TO ME THAT THIS IS A CURIOUS RESPONSE TO A DROP IN 10:43:15 PROFITS. IT MAKES ME WONDER WHAT THE 10:43:17 COMPENSATION PACKAGE OF OUR WITNESS WILL BE THIS YEAR. 10:43:21 MR. CHAIRMAN, AGAIN, I THANK YOU FOR YOUR DILIGENCE AND HARD WORK 10:43:24 ON THIS ISSUE. I LOOK FORWARD TO HEARING FROM 10:43:27 OUR WITNESSES TODAY AND LOOK FORWARD TO WORKING WITH YOU ON 10:43:29 THIS MATTER. THANK YOU. 10:43:32 THANK YOU, MR. CHAIRMAN. NEXT MS. BLACKBURN, IF YOU WILL 10:43:38 MAKE YOUR OPENING STATEMENT PLEASE. 10:43:40 THANK YOU, MR. CHAIRMAN, I THANK YOU AND RANKING MEMBER 10:43:43 BURGESS FOR HOLDING THE HEARING TODAY. 10:43:45 MR. HAYWARD, I THANK YOU FOR YOUR WILLINGNESS TO TESTIFY 10:43:48 BEFORE THIS COMMITTEE. YOU KNOW, WHEN NEWS OF THE BP 10:43:53 SPILL BEGAN AND INFORMATION ABOUT THE WELL STARTED TO 10:43:55 CIRCULATE, IT SEEMEDA THERE WAS PROBLEMS NOT ONLY WITH BP, BUT 10:44:00 ALSO WITH MMS BUREAUCRACY AND MAYBE THE PROBLEM LAY THERE 10:44:07 RATHER THAN WITH ANYTHING THAT COULD HAVE GONE WRONG WITH BP, 10:44:10 THAT IT WAS THERE WITH MMS. WHAT WELEARNED AND 10:44:17 CONFIRMED THAT THAT IS NOT CORRECT, THAT THE PROBLEM DOES 10:44:20 LIE WITH BP AND WHAT WENT WRONG, WHILE THERE ARE MANY FAULTS WITH 10:44:26 MMS ON SAFETY AND OVERSIGHT, MOST OF THE DATA POINTS TO WRONG 10:44:31 DECISION MAKING BY BP'S MANAGEMENT AND THIS IS NOT THE 10:44:33 FIRST TIME AND WE HAVE TALKED ABOUT THAT IN SEVERAL OF OUR 10:44:37 OPENING STATEMENTS THIS MORNING. IT'S NOT THE FIRST TIME WE HAVE 10:44:41 BEEN BEFORE THIS COMMITTEE ON SAFETY PROBLEMS, AND MOST 10:44:45 RECENTLY AS THE TEXAS CITY 2005 AND ALASKA INCIDENTS WHICH 10:44:49 REVEALED INSUFFICIENT PROTOCOLS IN BP'S MANAGEMENT AND SAFETY 10:44:55 HIERARCHY, THERE WAS A STATEMENT FROM BP THAT YOU ALL WOULD 10:44:59 QUOTE, UNQUOTE FOCUS LIKE A LIZZER ON SAFETY. 10:45:01 AND IT IS CONCERNING TO US THAT THE APPEARANCE IS, MR. HAYWARD 10:45:06 THAT BP HAS NOT LEARNED FROM PREVIOUS MISTAKES, SO IT LEAVES 10:45:10 US ASKING THE QUESTIONS OF YOU AND OF BP, WAS THIS ACCIDENT 10:45:16 CAUSED BY NEGLIGENCE? WAS IT CAUSED BY RISK TAKING? 10:45:21 WAS IT CAUSED BY COST CUTTING MEASURES? 10:45:24 BY BP DECISION MAKERS AND UNFORTUNATELY FOR CITIZENS, 10:45:30 BEACHES AND WILDLIFE ALL ALONG THE COASTAL REGION, THEY ARE 10:45:34 PAYING A PRICE FOR THOSE MISPLACED DECISIONS. 10:45:39 BP CANNOT BLAME MOTHER NATURE OR EQUIPMENT FAILURE OR EVEN OTHER 10:45:45 SUBCONTRACTORS. THEIR ACTIONS HAVE PUT AT RISK 10:45:48 THE LIVELIHOOD OF COMMUNITIES AND BUSINESSES THAT DEPEND ON 10:45:52 THE GULF, NOT ONLY FOR SEAFOOD AND TOURISM, BUT ALSO ENERGY 10:45:57 PRODUCTION THAT THIS NATION AS A WHOLE RELIES UPON. 10:46:02 IN ADDITION, THE CURRENT ADMINISTRATION ALSO SHARES A 10:46:05 SIGNIFICANT PORTION OF THE BLAME FOR THE OIL SPILL. 10:46:07 I MENTIONED MMS EARLIER AND THE MMS OFFICIALS APPROVED 10:46:12 INADEQUATE SPILL RESPONSE PLANS AND FIELD INSPECTORS RUBBER 10:46:17 STAMPED INSPECTION PAPERS SUBMITTED BY OIL COMPANIES. 10:46:20 THIS IS ANOTHER AREA WHERE WE AS MEMBERS OF CONGRESS IN DOING OUR 10:46:25 DUE DILIGENCE WILL ASK YOU ALL AND MMS WHY. 10:46:28 BUT WHAT IS THE MOST DAMAGING IS THAT THE PRESIDENT AND SENIOR 10:46:32 OFFICIALS KNEW ON DAY ONE THE BLOWOUT PREVENTER WAS NOT 10:46:35 WORKING AND KNEW OF THE POTENTIAL SPILLAGE. 10:46:39 WHILE BP SHOULDERS MUCH OF THE RESPONSIBILITY FOR THIS SPILL, 10:46:42 THE LACK OF EFFORT BY THIS ADMINISTRATION TO CONTAIN THE 10:46:45 SPILL HAS DOOMED THE ECONOMY AND WILDLIFE OF THE GULF COAST FROM 10:46:50 AN OIL SPILL WHICH COULD HAVE BEEN CONTAINED. 10:46:55 AND NOW RECENTLY IMPOSED DRILLING MORATORIUMS WILL 10:46:59 FURTHER DEVASTATE AMERICA'S ENERGY PRODUCTION AND WILL 10:47:02 DESTROY HUNDREDS OF THOUSANDS OF JOBS IN THE GULF COAST REGION. 10:47:06 THANK YOU FOR BEING WITH US TODAY, MR. CHAIRMAN, I YIELD THE 10:47:09 BALANCE OF MY TIME. THANK YOU. 10:47:13 I NEXT TURN TO VICE CHAIRMAN OF THE SUBCOMMITTEE, OPENING THREE 10:47:19 MINUTES SIR. MR. HAYWARD, YOU'RE NOT GOING 10:47:26 TO GET A LEK SCHUR FROM ME TODAY AND YOU'RE NOT GOING TO GET AN 10:47:31 APOLOGIES. QUITE FRANKLY THE PEOPLE WHO 10:47:33 LIVE ALONG THE AFFECTED AREA OF THE GULF COAST DESERVE ANSWERS 10:47:36 FROM YOU. WE WERE IN LOUISIANA LAST WEEK 10:47:38 AND WE HAD THE OPPORTUNITY TO HEAR FROM A VARIETY OF 10:47:43 INDIVIDUALS WHOSE LIVES HAVE BEEN DEVASTATED BY THIS OIL 10:47:45 DISASTER AND I USE THE WORD DISASTER SPECIFICALLY BECAUSE I 10:47:49 DON'T THINK SPILL QUITE CAPTURES THE MAGNITUDE OF WHAT'S GOING 10:47:51 ON. THE AMERICAN PEOPLE ARE 10:47:55 FRUSTRATED BECAUSE WE WERE FIRST TOLD THAT THIS WAS A 1,000 10:47:58 BARREL BER DAY RELEASE AND ABOUT A WEEK LATER THAT WAS UPDATED TO 10:48:03 5,000 BARRELS PER DAY. AND AT THE END OF MAY IT WAS 10:48:06 ADJUSTED UPWARDS OF 15,000 TO 19,000 BARRELS A DAY AND THIS 10:48:11 WEEK IT COULD BE AS HIGH AS 60,000 BARRELS A DAY. 10:48:18 THAT'S 17.5 MILLION GALLONS BER WEEK AND OVER THE LENGTH OF THIS 10:48:26 DISASTER IT COULD BE THE LARGEST RELEASE OF OIL IN THE NORTH 10:48:29 AMERICAN CONTINENT IN HISTORY, UNINTENDED. 10:48:31 ONE OF THE THINGS I THINK WE NEED TO KNOW ABOUT TODAY IS THE 10:48:35 DECISIONS THAT YOUR COMPANY MADE AND WHO AHEAD THEM THAT LED TO 10:48:39 THIS EXPLOSION AND SUBSEQUENT DISASTER, WHAT YOUR COMPANY IS 10:48:47 DOING TO FIX THIS PROBLEM AND WHAT YOUR COMPANY IS DOING FOR 10:48:49 ALL THE FAMILIES AND COMMUNITIES THAT HAVE BEEN DEVASTATED BY 10:48:52 THIS DISASTER AND I THINK IT WOULD BE HELP FOLLOW FOR YOU AND 10:48:57 EVERYBODY IN THIS HEARING ROOM TO HEAR FROM THOSE WOMEN WHO 10:49:02 TESTIFIED LAST WEEK, BECAUSE THEY RAISED VERY POINTED 10:49:05 QUESTIONS THAT WERE DIRECTED TO YOUR COMPANY, SIR, AND THEY WERE 10:49:08 QUESTIONED THAT WERE RAISED AFTER THEY GAVE PASSIONATE 10:49:10 TESTIMONY OF WANTING THE OIL AND GAS BUSINESS TO CONTINUE IN 10:49:15 LOUISIANA AND THE GULF COAST REGION. 10:49:17 SO I WOULD LIKE TO HAVE YOU LISTEN TO THEIR KMENTS IN THE 10:49:20 HEARING. THIS IS NATALEE ROSCO. 10:49:24 I WOULD LIKE TO LEAVE HERE TODAY KNOWING THAT BECAUSE OF MY 10:49:28 HUSBAND'S TRAGIC DEATH, WE CAN BEGIN TO FOCUS ON MAKING SAFETY 10:49:32 THE MOST IMPORTANT PRIORITY. NOT TO FOCUS ON MAKING MORE 10:49:38 SAFETY REGULATIONS, BUT ON WAYS TO SAFELY IMPLEMENT THE ONES 10:49:42 THAT WE ALREADY HAVE. THIS CHALLENGE WILL NOT BE IN 10:49:51 VAIN BECAUSE RIGHT NOW MY HUSBAND'S DEATH IS IN VAIN. 10:49:55 IT WILL NOT BE IN VAIN IF IT MAKE THE TOP PRIORITY 10:49:59 AND CAUSE THESE POWERFUL OIL COMPANIES TO KNOW THEY WILL BE 10:50:03 HELD ACCOUNTABLE FOR THEIR ACTIONS. 10:50:07 WILE I UNDERSTAND COMPANIES MUST MAKE A PROFIT. 10:50:11 THIS IS COURTNEY. I DO NOT BELIEVE IT SHOULD BE 10:50:13 AT THE EXPENSE OF RISKING LIVES OR DESTROYING FAMILIES I'M 10:50:17 ASKING TO YOU PLEASE CONSIDER HARSH PUNISHMENTS ON COMPANIES 10:50:21 WHO CHOOSE TO IGNORE SAFETY STANDARDS BEFORE OTHER FAMILIES 10:50:25 ARE DESTROYED. MY FAMILY CAN NEVER AND WILL 10:50:28 NEVER BE ADEQUATELY COMPENSATED FOR OUR LOSS. 10:50:32 THESE ARE NOW WIDOWS WITH SMALL CHILDREN TO TAKE CARE OF 10:50:36 AND THEY ARE THE SYMBOLS AND THE FACES OF THIS DISASTER AND I 10:50:40 LOOK FORWARD TO YOUR TESTIMONY. YIELD BACK THE BALANCE OF MY 10:50:42 TIME. THANK YOU. 10:50:46 NEXT TURN TO MR. GINGREY OF GEORGIA FOR OPENING STATEMENTS. 10:51:00 FIRST OF ALL, I WANT TO EXPRESS MY CONDOLENCES, WE MUST 10:51:05 REMEMBER THOSE LIVES AND THE LIVES OF THEIR FAMILIES AS WE 10:51:07 JUST SAW THAT WERE FOREVER CHANGED ON THAT FATEFUL APRIL 10:51:12 DAY AND WE MUST CONTINUE TO KEEP THEM IN OUR THOUGHTS AND 10:51:16 PRAYERS. FURTHER, WE HAVE AN OBLIGATION 10:51:17 NOT ONLY TO THOSE FAMILIES BUT TO EVERYONE AFFECTED BY THE 10:51:21 AFTERMATH TO GET TO THE BOTTOM OF THE CAUSES OF THIS ACCIDENT 10:51:24 AND THE FAILURE TO SECURE THE SITUATION AND STOP THE 10:51:28 DEVASTATION WRECKED UPON THE GULF COAST. 10:51:31 MR. CLARM, WE HAVE AN OPPORTUNITY IN THIS OVERSIGHT 10:51:34 HEARING TO ASK QUESTIONS TO GET TO THE FACTS OF WHAT HAPPENED. 10:51:37 HOWEVER, TODAY'S HEARING IS INCOMPLETE. 10:51:39 WE CAN ONLY ASCERTAIN HALF OF THE STORY TODAY BECAUSE WE DO 10:51:43 NOT HAVE ANYONE REPRESENTING THE ADMINISTRATION. 10:51:47 THE MINERAL MANAGEMENT SERVICE TO DISCUSS THEIR OVERSIGHT ROLE 10:51:50 AND THEIR RESPONSIBILITY IN ENSURING THAT AN ACCIDENT LIKE 10:51:53 THIS DIDN'T HAPPEN. DEEP OCEAN DRILLING IS NOT NEW. 10:51:57 IN FACT, WE BEEN DOING IT FOR DECADES IN THE GULF COAST. 10:52:00 WHY DID THIS HAPPEN NOW? I'VE HEARD SOME ASSERT THAT IT 10:52:05 WAS A LAX OVERSIGHT OF THE PREVIOUS ADMINISTRATION THAT LED 10:52:07 TO THIS ACCIDENT. WELL FW, THAT'S THE CASE, WHY 10:52:10 DID THIS NOT HAPPEN DURING THE LAST DECADE. 10:52:12 WHY DID THIS OCCUR ALMOST A YEAR AND A HALF INTO THE CURRENT 10:52:16 ADMINISTRATION. WE NEED TO HEAR FROM OUR OWN 10:52:19 DEPARTMENT OF INTERIOR. AND THE MINERAL MANAGEMENT 10:52:22 SERVICES. CERTAINLY, MR. HAYWARD SHOULD BE 10:52:24 PREPARED TO ANSWER BP'S RESPONSIBILITY BUT WE WILL ALSO 10:52:27 NEED ANSWERS FROM THE ADMINISTRATION SO THAT WE CAN 10:52:30 DEMAND ACCOUNTABILITY AND IMPLEMENT PRUDENT REFORMS TO 10:52:33 RETURN US TO SAFE DRILLING IN OUR OCEANS BECAUSE SIMPLY SAYING 10:52:37 NO TO FURTHER AND NEW DRILLING IS NOT A REALISTIC ANSWER. 10:52:42 I FURTHER REALIZE THERE ARE IN THIS ADMINISTRATION WHO HAVE 10:52:47 A PEN CLANT FOR NOT LETTING A CRISIS GO TO WASTE, BUT FOR A 10:52:51 NATION DEPENDENT ON FOREIGN OIL, FOR A NATION WITH UNEMPLOYMENT 10:52:55 HOVERING AT 10%, WE CAN'T JUST SAY WE CAN'T DO THIS. 10:52:58 WE CAN'T TAKE OUR BALL AND GO HOME WHETHER THE CONSEQUENCES 10:53:01 MEAN A WEAKER AMERICA. EVERYONE DEPENDING ON FOREIGN 10:53:06 FUELS, ALL TOO INCLINED IT SEEMS, TO LET JOBS LEAVE THIS 10:53:09 COUNTRY. NO, MR. CHAIRMAN, WE HAVE TO 10:53:12 UNDERSTAND WHAT HAPPENED ON AND LEADING UP TO APRIL 20th. 10:53:16 WE NEED TO ANSWER THOSE QUESTIONS TO DETERMINE IF THE 10:53:18 RULES OR AGENCY OVERNIGHT WIN SUFFICIENT OR IF THIS WAS PURELY 10:53:21 AN ACT OF NEGLIGENCE OR WANTON DISREGARD FOR SOUND REGULATIONS. 10:53:26 NOW WE CAN TRY TO ENACT THE PERFECT REFORM THAT ENSURES THIS 10:53:31 NEVER HAPPENS AGAIN BOUGHT IT WILL NOT CHANGE THE PAST OR THE 10:53:33 TOLL UPON THE LIVES FOREVER CHANGED. 10:53:35 MR. HAYWARD, THE RESPONSIBILITY TO MAKE THESE FAMILIES WHOLE 10:53:39 FALLS TO YOU AND YOUR COMPANY BP YOU HAVE AN OBLIGATION TO RIGHT 10:53:43 THIS WRONG AND NOT ONLY THE PUBLIC TRUST BUT ALSO TO BELIEVE 10:53:46 IN THE FREE MARKET AND ENTREPRENEURSHIP DEMAND IT. 10:53:49 MR. CHAIRMAN, I WAIT THE OPPORTUNITY TO ASK QUESTIONS 10:53:53 WITH THE HOPE THAT WE WILL SOON DISCUSS THESE SAME MATTERS WITH 10:53:56 OUR OWN ADMINISTRATION. AND I YIELD BACK. 10:53:58 THANK YOU, MR. GINGREY. MR. GETT FOR AN OPENING 10:54:06 STATEMENT. AS THIS SAN INVESTIGATIVE 10:54:08 HEARING. LIE SUBMIT MY EXCELLENT OPENING 10:54:12 STATEMENT FOR THE RECORD IN ORDER TO HAVE MORE TIME TO 10:54:15 QUESTION THE WITNESS. VERY WELL. 10:54:17 MR. DOYLE, OPENING STATEMENT. MR. CHAIRMAN, THANK YOU FOR 10:54:20 CONVENING THIS HEARING TODAY SO WE CAN BEGIN TO UNDERSTAND WHAT 10:54:23 WENT SO TRAGICALLY WRONG ON THE DEEP WATER HORIZON. 10:54:28 WE'RE NOW 59 DAYS INTO THIS TRAGEDY AND OIL CONTINUES TO 10:54:34 GUSH INTO THE GULF OF MEXICO. THE ESTIMATES FOR HOW MUCH OIL 10:54:37 SPILLS INTO THE GULF EACH DAY CONTINUE TO RISE AND WE STILL 10:54:40 HAVE NO WAY TO CAP THE WELL IN THE NEAR FUTURE. 10:54:43 WE SIT HELPLESSLY AS WE WAIT FOR A RELIEF WELL TO BE COMPLETED. 10:54:47 AS THE DETAILS AND FACTS ABOUT DEEP WATER HORIZON COME TO LIGHT 10:54:52 IT IS CLEAR TO US ALL THAT THE DECISIONS MADE BY OFFICIALS AT 10:54:57 BP THAT REFLEKTDED BAD JUDGMENT AT BEST AND CRIMINAL NEMPS AT 10:55:01 WORST, THROUGH THIS COMMITTEE'S INVESTIGATION, WE'VE LEARNED 10:55:04 THAT AT NEARLY EVERY TURN, BP CUT CORNERS. 10:55:08 AND N WELL DESIGN, THE NUMBER OF CENTRALIZERS THEY USED, WHETHER 10:55:11 TO RUN A CEMENT BOND LOCK, CIRCULATING DRILLING MUDS AND 10:55:16 SECURING THE WELL HEAD WITH A LOCKDOWN SLEEVE, BP TOOK THE 10:55:20 PATH OF LEAST RESISTANCE. ON TUESDAY, COLLEAGUES AND 10:55:23 COMPETITIVES FROM THE OIL AND GAS INDUSTRY PROVIDED SWORN 10:55:29 TESTIMONY THAT THEY BELIEVED BP DELINQUENCIES IN WELL DESIGN AND 10:55:32 FAILED TO FOLLOW THE BEST PRACTICES OF THE INDUSTRY. 10:55:35 NOW WE LEARN THAT BP HAD SEVERAL WARNINGS ABOUT THE McCONDO WELL 10:55:39 WITH ONE OF THEIR OWN ENGINEERS CALLING IT A NIGHTMARE WELL. 10:55:42 BUT INSTEAD OF TREATING THE WELL WITH CAUTION IT SEEMS THAT BP'S 10:55:46 ONLY INTEREST WAS IN COMPLETING THE WELL QUICKLY AND CHEAPLY. 10:55:51 MANY QUESTIONS STILL NEED TO BE ANSWERED. 10:55:54 WERE BP EMPLOYEES ON THE DEEP WATER HORIZON GIVE ORDERS FROM 10:55:58 BP OFFICIALS TO SPEED UP THE McCONDO WELL? 10:56:00 WERE THEY TOLD TO SLASH COSTS WHEREVER POSSIBLE? 10:56:04 WHY WOULD A TEAM ON BOARD THE RIG TO TEST THE CEMENTING OF THE 10:56:09 WELL BE SENT HOME BEFORE PERFORMING THE TEST? 10:56:13 SURELY IF A CEMENT BOND LOCK WAS EVER NECESSARY, IT WOULD BE IN A 10:56:17 NIGHTMARE WELL SITUATION. BUT SENDING THE TEAM HOME, BP 10:56:22 SAVED $100,000 AND NINE OR TEN HOURS OF WORK. 10:56:25 MR. HAYWARD, I HOPE YOU'RE HERE TODAY TO ANSWER QUESTIONS ABOUT 10:56:29 THE DECISION MADE ON DEEP WATER HORIZON THAT LED TO THIS TRAGIC 10:56:32 AND DEADLY BLOWOUT. EARLIER THIS WEEK, THIS 10:56:37 COMMITTEE SENT YOU A LETTER WITH DETAILED INFORMATION ABOUT 10:56:39 TOPICS WE WOULD LIKE YOU TO ADDRESS TODAY. 10:56:42 IN REVIEWING YOUR STATEMENTS SUBMITTED FOR TODAY'S HEARING, 10:56:45 I'M EXTREMELY DISAPPOINTED IN YOUR AVOIDANCE OF THE REQUESTED 10:56:49 TOPICS. I CERTAINLY HOPE THAT YOU USE 10:56:52 THE OPPORTUNITY TODAY TO ANSWER OUR QUESTIONS OPENLY AND 10:56:58 TRUTHFULLY. I KNOW BP COMMITTED TO CLEAN UP 10:56:59 THE GULF REGION AND I EXPECT THAT COMMITMENT TO BE ONGOING. 10:57:02 I WELCOME YOUR PLEDGE TO PAY DAMPS THROUGH A $20 BILLION 10:57:07 ESCROW FUND BUT THAT'S JUST THE TIP OF THE ICEBERG. 10:57:10 REBUILDING THE PUBLIC'S TRUST IN YOUR COMPANY AND YOUR INDUSTRY 10:57:13 WILL TAKE YEARS AND MANY SERIOUS CHANGES IN THE WAY YOU DO 10:57:18 BUSINESS. WHEN YOU OPERATE ON OUR LAND AND 10:57:21 IN OUR WATERS, YOU'RE ONLY THERE BECAUSE THE PUBLIC'S TRUST HAS 10:57:26 ALLOWED YOU TO BE THERE. YOU VIOLATED THAT TRUST IN THE 10:57:29 WORST POSSIBLE WAY. MR. HAYWARD, I LOOK FORWARD TO 10:57:32 YOUR TESTIMONY. I LOOK FORWARD TO ANSWERS TO OUR 10:57:35 QUESTIONS AND YOUR ONGOING EFFORTS TO GAIN AMERICA'S TRUST. 10:57:38 MR. CHAIRMAN, I YIELD BACK. THANK YOU, MR. DOYLE. 10:57:44 MR. GRIFFITH FOR OPENING STATEMENTS. 10:57:46 THREE MINUTES, PLEASE. THANK YOU. 10:57:48 MR. CHAIRMAN AND RANKING MEMBER FOR CALLING THIS IMPORTANT 10:57:52 HEARING TODAY. MR. HAYWARD FOR TAKING TIME TO 10:57:55 COME BEFORE OUR SUBCOMMITTEE TO DISCUSS WHAT HAPPENED ON THE 10:57:58 DEEP WATER HORIZON. I KNOW THAT LIKE US, YOUR NUMBER 10:58:01 ONE PRIORITY IS STOPPING THE FLOW OF OIL. 10:58:06 CONGRESS AND THIS COMMITTEE OWE IT TO THE AMERICAN PEOPLE DO 10:58:09 WHATEVER WE CAN TO AID THE UNIFIED COMMAND IN REACHING THIS 10:58:12 GOAL. THIS IS A TIME FOR ENGINEERING 10:58:14 AND ACTION I HOPE YOU WILL LET US KNOW WHAT WE CAN DO IN 10:58:17 CONGRESS TO BE HELPFUL. THERE ARE STILL MANY QUESTIONS 10:58:19 TO BE ANSWERED ABOUT WHAT HAPPENED ON THE DEEP WATER 10:58:21 HORIZON AND UNFORTUNATELY WE DO KNOW THAT THE DOCUMENTS THAT 10:58:24 WE'RE REVIEWING IT DOES NOT LOOK GOOD. 10:58:28 MY HOPE FOR OUR HEARING TODAY IS THAT WE WILL BE ABLE TO PUT 10:58:31 POLITICAL PUBLIC RELATIONS SHENANIGANS ASIDE AND FOCUS 10:58:35 UNDERSTANDING WHY DECISIONS WERE MADE AND HOW BP AND THE INDUSTRY 10:58:38 CAN ENSURE THAT THEY LEARN FROM THIS INCIDENT SO THAT DRILLING 10:58:42 SAFELY FOR OUR VALUABLE RESOURCES CAN CONTINUE. 10:58:45 AND I MIGHT SAY THIS TO YOU, YOU'RE NEVER AS GOOD AS THEY SAY 10:58:50 YOU ARE OR AS BAD AS THEY SAY YOU ARE. 10:58:52 SO THIS HEARING WILL GO BACK AND FORTH. 10:58:54 THE OTHER THING I'D LIKE TO REMIND THE COMMITTEE IS THAT THE 10:59:00 GREATEST ENVIRONMENTAL DISASTER IN AMERICA HAS BEEN CIGARETTES.
House Energy Hearing with Tony Hayward / Committee / 1000-1100
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 10:02:03 BART STUPAK: THIS MEETING WILL COME TO 10:03:10 ORDER, WE'RE GOING TO ASK THE PRESS TO PLEASE CLEAR. 10:03:51 THIS HEARING OF THE SUBCOMMITTEE OF THE ENERGY AND 10:03:55 COMMERCE COMMITTEE, THE SUBCOMMITTEE ON OVERSIGHT 10:03:59 INVESTIGATIONS WILL COMMENCE OUR HEARING. 10:04:01 TODAY WE HAVE A HEARING TITLED BP'S ROLE IN THE DEEP WATER 10:04:11 HORIZON ENERGY SPILL. I WELCOME THE MEMBERS OF THE 10:04:16 ENERGY AND COMMERCE COMMITTEE AND THEY WILL BE ALLOWED TO 10:04:21 SUBMIT WRITTEN STATEMENTS FOR THE RECORD, BUT WILL NOT DELIVER 10:04:25 VERBAL OPENING STATEMENTS AND IN ADDITION MEMBERS WHO ARE NOT ON 10:04:34 THE SUBCOMMITTEE OR ON THE ENERGY AND COMMERCE COMMITTEE 10:04:38 ARE WILL BE TO OBSERVE, BUT THEY WILL NOT BE ALLOWED TO ASK 10:04:43 QUESTIONS DUE TO TIME CONSTRAINTS, THE CHAIRMAN, THE 10:04:47 RANKING MEMBER AND THE CHARITY EMERITUS WILL BE RECOGNIZED FOR 10:04:52 THREE MINUTE OPENING STATEMENTS. I WILL YIELD TO THE CHAIRMAN OF 10:05:01 THE FULL COMMITTEE MR. WAXMAN FOR THE FIRST OPENING STATEMENT. 10:05:05 THANK YOU VERY MUCH MR. CHAIRMAN, THANK YOU FOR HOLDING 10:05:09 THIS VERY IMPORTANT HEARING. AND MR. HAYWARD, THANK YOU FOR 10:05:12 BEING HERE TODAY. YESTERDAY BP PLEDGED TO 10:05:15 ESTABLISH A $20 BILLION ESCROW ACCOUNT AND TO SUSPEND ITS 10:05:20 DIVIDEND PAYMENTS FOR THE REST OF THE YEAR. 10:05:23 I'M SURE THESE WERE NOT EASY DECISIONS FOR YOU, BUT THEY WERE 10:05:26 THE RIGHT ONES AND I COMMEND YOU FOR THEM. 10:05:30 CONGRESS HAS MULTIPLE COMMITTEES EXAMINING THE GULF OIL SPILL, 10:05:34 SOME ARE EVALUATING THE IMPACT OF THE SPILL, SOME ARE WORKING 10:05:38 ON THE REORGANIZATION OF THE REGULATORY AGENCIES AND SOME 10:05:42 INCLUDING CHAIRMAN MARKEY'S SUBCOMMITTEE ARE DRAFTING 10:05:46 LEGISLATION TO REFORM OUR OIL EXPLORATION LAWS. 10:05:50 YOU ARE TESTIFYING TODAY BEFORE THE OVERSIGHT AND INVESTIGATION 10:05:55 SUBCOMMITTEE AND THIS SUBCOMMITTEE HAS A SPECIAL ROLE. 10:05:59 SO EXAMINE THE FACTS AND DETERMINE WHAT WENT WRONG AND TO 10:06:02 MAKE RECOMMENDATIONS TO PREVENT FUTURE SPILLS. 10:06:06 WHEN IT'S TIME FOR QUESTIONING, I AND OTHER MEMBERS OF THE 10:06:09 SUBCOMMITTEE WILL ASK YOU ABOUT A SERIES OF INTERNAL BP 10:06:12 DOCUMENTS. THEY APPEAR TO SHOW THAT BP 10:06:18 REPEATEDLY TOOK SHORTCUTS THAT ENDANGERED LIVES AND INCREASED 10:06:22 THE RISKS OF A CATASTROPHIC BLOWOUT. 10:06:26 AND I SENT YOU A LETTER IN ADVANCE INDICATING THAT WE'RE 10:06:29 GOING TO QUESTION YOU ABOUT THOSE ISSUES. 10:06:32 BUT WHAT IS EQUALLY IMPORTANT IS WHAT IS MISSING FROM THE 10:06:34 DOCUMENTS. WHEN YOU BECAME CEO OF BP, YOU 10:06:41 PROMISED TO FOCUS LIKE A LASER ON SAFE AND RELIABLE OPERATIONS. 10:06:45 WE WANTED TO KNOW WHAT YOU HAD DONE TO KEEP THIS PROMISE. 10:06:49 SO WE ASKED WHAT E-MAILS YOU HAD RECEIVED, WHAT DOCUMENTS YOU HAD 10:06:53 REVIEWED. ABOUT THE DEEP WATER HORIZON RIG 10:07:00 OR TO THE McCONDO WELL BEFORE THE BLOWOUT. 10:07:03 DEEP WATER DRILLING IS INHERENTLY DANGEROUS, AS THE 10:07:09 ENTIRE COUNTRY NOW KNOWSES, AN UNCONTROLLED BLOWOUT CAN KILL 10:07:15 RIG WORKERS AND CAUSE AN ENVIRONMENTAL DISASTER. 10:07:18 WE WANT TO KNOW IF YOU WERE BRIEFED BE THE RISKS AND WERE 10:07:22 MONITORING THE SAFETY OF THE DRILLING OPERATION. 10:07:27 WE CAN FIND NO EVIDENCE THAT YOU PAID ANY ATTENTION TO THE 10:07:30 TREMENDOUS RISKS BP WAS TAKING. WE HAVE REVIEWED 30,000 PAGES OF 10:07:38 DOCUMENTS FROM BP INCLUDING YOUR E-MAILS, THERE IS NOT A SINGLE 10:07:44 E-MAIL OR DOCUMENT THAT SHOWS YOU PAID EVEN THE SLIGHTEST 10:07:47 ATTENTION TO THE DANGERS AT THIS WELL. 10:07:49 YOU ARE THE CEO. SO WE CONSIDER THE POSSIBILITY 10:07:51 THAT YOU MAY HAVE DELEGATED THE OVERSIGHT RESPONSIBILITY TO 10:07:59 SOMEONE ELSE WE REVIEWED THE EMAILS AND BELIEVING DOCUMENTS 10:08:04 RECEIVED BY THE CHIEF EXECUTIVE FOR EXPLORATION AND PRODUCTION 10:08:09 AND DOUG SUTTLES, THE CHIEF OPERATING OFFICER FOR 10:08:17 PRODUCTION. ACCORDING TO BP, THESE ARE THE 10:08:25 SENIOR OFFICIALS RESPONSIBLE FOR THE McCONDO WELL, BUT THEY TOO 10:08:31 WERE APPARENTLY BLIVIOUS TO WHAT WAS HAPPENING. 10:08:37 WE CAN SEE NO E-MAILS OR DEBRIEFINGS ABOUT THE DEEP WATER 10:08:44 HORIZON. BP'S CORPORATE COMPLACENCY IS 10:08:50 ASTONISHING, THE DRILLING ENGINE FOR THE RIG, CALLED McCONDO, A 10:08:56 NIGHTMARE WELL. OTHER BP EMPLOYEES PREDICTED 10:08:59 THAT THE CEMENT JOB WOULD FAIL. HALLIBURTON WARNED OF A SEVERE 10:09:03 GAS FLOW PROBLEM. THESE WARNINGS FELL ON DEAF 10:09:08 EARS. BP'S CORPORATE ATTITUDE MAY BEST 10:09:11 BE SUMMED UP IN AN E-MAIL FROM HIS OPERATIONS DRILLING ENGINEER 10:09:16 WHO OVERSAW BP'S TEAM OF DRILLING ENGINEERS. 10:09:21 AFTER LEARNING OF THE RISKS AND BP'S DECISION TO IGNORE THEM, HE 10:09:26 WROTE, QUOTE, WHO CARES? IT'S DONE, END OF STORY, WE'LL 10:09:30 PROBABLY BE FINED, END QUOTE. THERE IS A COMPLETE 10:09:37 CONTRADICTION BETWEEN BP'S WORDS AND DEEDS. 10:09:39 YOU WERE BROUGHT IN TO MAKE SAFETY THE TOP PRIORITY OF BP, 10:09:44 BUT UNDER YOUR LEADERSHIP, BP HAS TAKEN THE MOST EXTREME 10:09:50 RISKS. BP CUT CORNER AFTER CORNER TO 10:09:53 SAVE A MILLION DOLLARS HERE A FEW HOURS OR DAYS THERE AND NOW 10:09:57 THE WHOLE GULF COAST IS PAYING THE PRICE. 10:10:00 TODAY'S HEARING WILL FOCUS ON BP'S ACTIONS, BUT WE LEARNED 10:10:04 FROM OUR HEARING EARLIER THIS WEEK THAT THE OTHER OIL 10:10:07 COMPANIES ARE JUST AS UNPREPARED TO DEAL WITH A MASSIVE SPILL AS 10:10:10 BP. WE ARE SEE IN THE OIL INDUSTRY 10:10:16 THE SAME CORPORATE INDIFFERENCE TO RISK THAT CAUSED THE COME 10:10:18 LANCE ON WALL STREET. AND THAT IS WHY REFORM IS SO 10:10:24 URGENTLY NEEDED, PART OF THIS REFORM MUST BE LEGISLATION TO 10:10:28 PUT TEETH INTO OUR REGULATORY SYSTEM BUT PART MUST ALSO BE A 10:10:33 TRANSITION TO A CLEAN ENERGY ECONOMY. 10:10:36 WE'RE ADDICTED TO OIL, THIS ADDICTION IS FOULING OUR 10:10:40 BEACHES, POLLUTING OUR ATMOSPHERE AND UNDERMINING OUR 10:10:42 NATIONAL SECURITY. WE CAN'T SNAP OUR FINGERS OR 10:10:49 TRANSFORM OUR ENERGY ECONOMY OVERNIGHT, BUT WE NEED TO START 10:10:52 DOWN A PATH TO A CLEAN ENERGY FUTURE. 10:10:55 MR. CHAIRMAN, I LOOK FORWARD TO TODAY'S HEARING AND MR. HAYWARD 10:11:00 I THANK YOU FOR APPEARING AND COOPERATING WITH OUR 10:11:04 INVESTIGATION. NEXT GO TO THE FULL COMMITTEE 10:11:08 REMEMBER BART STUPAK OF TEXAS. THANK YOU, MR. CHAIRMAN, 10:11:15 THANK YOU MR. HAYWARD FOR APPEARING BEFORE US. 10:11:19 WE HAVE KIND OF A DUAL TRACK UNDERWAY IN MY OPINION. 10:11:25 WE OBVIOUSLY ARE TRYING TO GATHER THE FACTS, WHAT HAPPENED 10:11:27 IN THE OIL SPILL IN THE GULF OF MEXICO A MONTH AND A HALF AGO, 10:11:35 TRYING TO FIND OUT THE CLOSE. WE HAVE A SYSTEM BUILT UP BASED 10:11:58 ON THE BRITISH TRADITION OVER 200 YEARS OF DUE PROCESS AND 10:12:02 FAIRNESS WHERE PEOPLE THAT DO BAD THINGS OR IN THIS CASE A 10:12:08 CORPORATION THAT'S RESPONSIBLE FOR A BAD ACCIDENT, WE WANT TO 10:12:13 HOLD THEM RESPONSIBLE, DO WHAT WE CAN TO MAKE THE LIABLE 10:12:16 PARTIES PAY FOR THE DAMAGES. MR. STUPAK AND MR. WAXMAN ARE 10:12:20 DOING AN EXCELLENT JOB WORKING WITH DR. BURR NEGLIGENCE AND 10:12:27 MYSELF IN CONDUCTING I THINK A FAIR OVERSIGHT 10:12:30 INVESTIGATION. BOAR GOING TO GET INTO A NUMBER 10:12:38 OF THOSE ISSUES. I'M SPEAKING TOTALLY FOR MYSELF, 10:12:42 I'M NOT SPEAKING FOR THE REPUBLICAN PARTY, I'M NOT 10:12:45 SPEAKING FOR ANYBODY IN THE HOUSE OF REPRESENTATIVES BUT 10:12:46 MYSELF. BUT I'M ASHAMED OF WHAT HAPPENED 10:12:51 IN THE WHITE HOUSE YESTERDAY. I THINK IT IS A TRAGEDY IN THE 10:13:04 FIRKS PROPORTION THAT I WOULD CHARACTERIZE AS A SHAKEDOWN, IN 10:13:11 THIS CASE A $20 BILLION SHAKEDOWN, WITH THE ATTORNEY 10:13:16 GENERAL OF THE UNITED STATES WHO IS CONDUCTING A CRIMINAL 10:13:19 INVESTIGATION AND HAS EVERY RIGHT TO DO THAT TO PROTECT THE 10:13:25 AMERICAN PEOPLE. PARTICIPATING IN WHAT AMOUNTS TO 10:13:30 A $20 MILLION SLUSH FUND WHICH I THINK SET ASTER RIBL PRECEDENT 10:13:35 FOR THE FUTURE. IF I CALLED YOU INTO MY OFFICE. 10:13:41 AVSHTD AND I HAD THE SUBCOMMITTEE CHAIRMAN MR. STUPAK 10:13:45 WITH ME WHO WAS LEGITIMATELY SUBJECTING AN OVERSIGHT 10:13:49 INVESTIGATION ON YOUR COMPANY AND SAID IF YOU PUT SO MANY 10:13:53 MILLIONS OF DOLLARS IN A PROJECT IN MY CONSTITUTIONAL DISTRICT I 10:14:02 COULD GO TO JAIL AND SHOULD GO TO JAIL. 10:14:09 NO THERE IS NO QUESTION THAT BRITISH PETROLEUM OWNS THIS K 10:14:21 LEAK, THAT BP MADE DECISIONS THAT PEOPLE MAY QUESTION. 10:14:27 THERE IS NO QUESTION THAT BP IS LIABLE FOR THE DAMAGES, BUT WE 10:14:31 HAVE A DUE PROCESS SYSTEM WHERE WE GO THROUGH HEARINGS, IN SOME 10:14:36 CASES COURT CASES, LITIGATION AND DETERMINE WHAT THOSE DAMAGES 10:14:38 ARE AND WHEN THOSE DAMAGES SHOULD BE PAID. 10:14:45 SO I'M ONLY SPEAKING FOR MYSELF, I'M NOT SPEAKING FOR ANYBODY 10:14:52 ELSE, BUT I APOLOGIZE, I DO NOT WANT TO LIVE IN A COMPANY WHERE 10:14:56 ANY TIME A CITIZEN FOR A CORPORATION DOES SOMETHING THAT 10:14:59 IS LEGITIMATELY WRONG IS SUBJECT TO SOME SORT OF POLITICAL 10:15:08 PRESSURE THAT IS AGAIN IN MY WORDS AMOUNTS TO SHAKEDOWN. 10:15:10 SO I APOLOGIZE. SO ON THIS HEARING TODAY, I AM 10:15:17 WITH MR. WAXMAN, WITH MR. STUPAK, THERE ARE QUESTIONS THAT 10:15:23 NEED TO BE ASKED THAT ARE LEGITIMATE BECAUSE WE DON'T WANT 10:15:27 ANOTHER OIL SPILL OF THIS MAGNITUDE OR OF ANY MAGNITUDE IN 10:15:32 THE GULF OF MEXICO AND IF THIS SUBCOMMITTEE CAN DO THINGS THAT 10:15:37 MAKE IT MUCH MORE DIFFICULT FOR THIS TYPE OF AN INCIDENT TO 10:15:40 OCCUR IN THE FUTURE, THEN WE WILL HAVE DONE OUR WORK FOR THE 10:15:42 AMERICAN PEOPLE. WITH THAT, MR. CHAIRMAN, I YIELD 10:15:47 BACK. TODAY IS THE 59th DAY OF THE 10:15:57 BP OIL SPILL THAT HAS DEVASTATED MUCH OF THE GULF OF MEXICO. 10:15:59 11 MEN LOST THEIR LIVES THE DAY THE DEEP WATER HORIZON DRILLING 10:16:04 RIG EXPLODED AND IN THE 59 DAYS THAT HAVE FOLLOWED, COUNTLESS 10:16:10 PEOPLE HAVE LOST THEIR LIVELIHOOD AS THE OIL POLLUTES 10:16:16 FISHING GROUNDS AND DAMAGES THE BEACHES OF THE UNITED STATES. 10:16:22 OUR FIRST HEARING EXPOSED PROBLEMS DISCOVERED WITH THE 10:16:26 BLOWOUT PREVENTSER AND SEVERAL OTHER FACTORS THAT CONTRIBUTED 10:16:31 TO THE DISASTER. OUR SECOND HEARING WAS A FIELD 10:16:37 HEARING IN NEW ORLEANS WHERE WE HEARD FROM THE WIDOWS OF TWO 10:16:41 WOMEN WHOSE HUSBANDS DIED IN THE DEEP WATER HORIZON. 10:16:54 WE HAVE BEEN SITTING THROUGH MORE THAN 50 HOURS OF BRIEFINGS 10:16:58 OF CORPORATE, GOVERNMENTAL EXPERTS TO DETERMINE WHAT WENT 10:17:02 WRONG WITH EXPLORATION OF THE McCONDO WELL. 10:17:05 WE HAVE REVIEWED SEVERAL QUESTIONABLE DECISIONS MADE BY 10:17:09 BP IN THE DAYS AND HOURS LEADING UP TO THE EXPLOSION AND WHAT WE 10:17:13 HAVE LEARNED SO FAR IS ALARMING. WE HAVE LEARNED THAT TIME AFTER 10:17:17 TIME, BP HAD WARNING SIGNS THAT THIS WAS AS ONE EMPLOYEE PUT IT 10:17:23 A NIGHTMARE WELL. FOR EXAMPLE, BP DISREGARDED 10:17:31 QUESTIONABLE RESULTS FROM PRESSURE TESTS AFTER CEMENTS IN 10:17:34 THE WELL. BP SELECTED THE RISKIER OF TWO 10:17:38 OPTIONS FOR THEIR WELL DESIGN. THEY COULD HAVE HUNG A LINER 10:17:41 FROM THE LOWER END OF THE CASING ALREADY IN THE WELL AND INSTALL 10:17:44 A TIE BACK ON THE TOP OF THE LINER WHICH WOULD HAVE PROVIDED 10:17:48 ADDITIONAL BARRIERS TO THE RELEASE OF HYDROCARBONS, INSTEAD 10:17:53 THEY LOWERED A FULL STRING OF THE NEW CASING WHICH TOOK LESS 10:17:59 TIME AND COST LESS BUT DID NOT PROVIDE THE SAME PROTECTION OF 10:18:04 ESCAPING HYDROCARBONS. BP WAS WARNED BY HALLIBURTON 10:18:13 COULD HAVE A BIG PROBLEM IF THEY -- BP REJECTED 10:18:20 HALLIBURTON'S ADVICE TO USED ADDITIONAL CENTRALIZERS IN AN 10:18:25 E-MAIL ON APRIL 16. A BP OFFICIAL INVOLVED IN THE 10:18:28 DECISION EXPLAINED AND I QUOTE, IT WILL TAKE TEN HOURS TO 10:18:32 INSTALL THEM, I DON'T LIKE THIS. BP CHOSE NOT TO FULLY CIRCULATE 10:18:36 THE MUD IN THE WELL FROM THE BOTTOM TO THE TOP, WHICH WAS AN 10:18:40 INDUSTRY RECOMMENDED BEST PRACTICE THAT WOULD HAVE ALLOWED 10:18:44 THEM TO TEST FOR GAS IN THE MUD. BP CHOSE NOT TO USE A CASING 10:18:49 HANGAR LOCKDOWN SLEEVE WHICH WOULD HAVE PROVIDED EXTRA 10:18:52 PROTECTION AGAINST A BLOWOUT FROM BELOW. 10:18:54 THESE ARE JUST A FEW OF THE ISSUES THAT LED TO THE DISASTER. 10:18:59 ONCE DEEP WATER HORIZON EXPLODED AND SAN TO BE THE BOTTOM OF THE 10:19:07 SEA, BP'S DECISION TO CLEAN UP THE SPILL WAS EQUALLY AS POOR. 10:19:14 THEY ISSUED ESTIMATES WHICH MAY HAVE LED TO A SCALED BACK 10:19:17 RESPONSE. WE DISCOVERED THAT BP'S OIL 10:19:20 SPILL RESPONSE PLAN WAS VIRTUALLY IDENTICAL TO OTHER OIL 10:19:25 COMPANIES' PLANS, IN A HEARING TUESDAY, EXXONMOBIL CEO REX 10:19:31 TILLERSON SAID THAT ONCE THE SPILLS OCCUR, WE'RE NOT EQUIPPED 10:19:36 TO HANDLE THEM, END QUOTE. OUR WITNESS TODAY MR. TONY 10:19:44 HAYWARD IS A CHIEF EXECUTIVE OFFICER OF BP, SHORTLY AFTER MR. 10:19:48 HAYWARD TOOK OVER AS THE CEO IN 2007, HE HELD A TOWN HALL 10:19:52 MEETING WITH EMPLOYEES IN HOUSTON THAT. 10:19:55 MEETING HE DISCUSSED THE NEED FOR BP TO BE A LEADER WITH FEWER 10:19:59 PEOPLE IN DECISION MAKING PROCESS. 10:20:01 THIS ARTICLE AND I ASK YOU TO PUT UP THE GUARDIAN ARTICLE. 10:20:06 IN AN ARTICLE FROM SEPTEMBER 2007, GUARDIAN NEWSPAPER, 10:20:12 HAYWARD SAYS OIL COMPANY HAS BECOME TOO CAUTIOUS, ASSURANCE 10:20:15 IS KILLING US, MR. HAYWARD TOLD U.S. STAFF NOTING THAT TOO MANY 10:20:21 PEOPLE WERE ENGAGED IN DECISION MAKING LEADING TO EXCESSIVE 10:20:25 CAUTIOUSNESS SOMETHING THAT CRITICS OF ITS SAFETY 10:20:27 PERFORMANCE IN THE U.S. MIGHT QUESTION. 10:20:29 LET ME PUT UP THESE OTHER NOTES FROM THE SAME MEETING. 10:20:32 WE RECEIVED NOTES FROM BP OF EMPLOYEES AND THEIR NOTE TAKING 10:20:36 FROM THIS MEETING. THE EMPLOYEE NOTES SUMMIT RISED 10:20:40 MR. HAYWARD'S STATEMENTS AS FOLLOWS. 10:20:42 I DON'T THINK HAVING ALL THESE LAYERS OF ASSURANCE REDUCES 10:20:48 RISKS AND IT CAN ACTUALLY INCREASE IT. 10:20:51 INDIVIDUALS NEED TO BE ACCOUNTABLE FOR RISK AND TO 10:20:54 MANAGE IT, END OF QUOTE. I FIND THIS CAVALIER ATTITUDE 10:20:58 TOWARD ASSESSING RISK UNBELIEVABLE, GIVEN THE FACT 10:21:01 THAT AT THE TIME OF THESE STATEMENTS, BP HAD JUST BEEN 10:21:04 RESPONSIBLE FOR THE LARGEST OIL LEAK IN ALASKA HISTORY ON THE 10:21:07 NORTH SLOPE AS WELL AS THE 2005 TEXAS CITY REFINERY EXPLOSION 10:21:13 WHICH KILLED 50 WORKERS AND INJURED ANOTHER 170. 10:21:16 I MUST ASK MR. HAYWARD WHETHER IT WAS WISE TO ADOPT THIS LEANER 10:21:22 DECISION-MAKING PROCESS WITH INPUT FROM FEWER PEOPLE AND A 10:21:24 NEW APPROACH TO MANAGING RISK. UNDER THE LEADERSHIP OF THE 10:21:30 FORMER CHAIRMAN OF BP AMERICA, BP CREATED AN INDEPENDENT OFFICE 10:21:36 OF THE OMBUDSMAN. THE OMBUDSMAN OFFICE WAS 10:21:39 ESTABLISHED BECAUSE LINE WORKERS REPORTED FEARING RETALIATION IF 10:21:43 THEY REPORTED SAFETY CONCERNS TO MANAGEMENT. 10:21:46 WHEN THE CURRENT CHAIRMAN AND PRESIDENT LAMAR McKAY TOOK OVER, 10:21:49 I MET WITH HIM AND HE SUGGESTED THAT HE HOPED TO IMPROVE THE 10:21:53 CULTURE ENOUGH TO MAKE THE OMBUDSMAN OFFICE UNNECESSARY SO 10:21:58 HE COULD SHUT IT DOWN. I URGED HIM NOT TO ELIMINATE THE 10:22:01 OFFICE BECAUSE IT SERVES A SIGNIFICANT ROLE IN 10:22:04 INVESTIGATING EMPLOYEE COMPLAINTS. 10:22:06 I'M MORE CONCERNED THAN EVER ABOUT BP'S SAFETY AND THE ROLE 10:22:09 THEY TAKE IN ASSUMING RISK. I'M CONCERNED THAT THE CORPORATE 10:22:18 CULTURE, THE CHAIRMAN OF PRESIDENT OF LAMAR McKAY THAT 10:22:24 THERE'S A WILLINGNESS TO CUT COSTS AND TAKE GREATER RISKS, I 10:22:29 LOOK FORWARD TO HEARING THE ANSWERS OF MR. HAYWARD OUR MANY 10:22:33 HARD HITTING COMMITTEE MEMBER ALSO HEAR TODAY. 10:22:36 I HOPE WE WILL HEAR HONEST, CONTRITE AND SUBSTANTIVE 10:22:41 ANSWERS. MR. HAYWARD, YOU OWE IT TO ALL 10:22:45 AMERICANS, FOR THE AMERICANS WHO LIVE AND WORK ON THE GULF COAST, 10:22:48 IT MAY BE YEARS BEFORE THEY GET THEIR LIVES BACK, FOR THE 10:22:51 AMERICANS WHO LOST THEIR LIVES ON THE RIGS, THEIR FAMILIES MAY 10:22:54 NEVER GET THEIR LIVES BACK. MR. HAYWARD, I'M SURE YOU WILL 10:22:57 GET YOUR LIFE BACK AND WITH A GOLDEN PARACHUTE BACK TO 10:23:02 ENGLAND. BUT WE IN AMERICA ARE LEFT WITH 10:23:05 A TERRIBLE CONSEQUENCES OF BP'S RECKLESS DISREGARD FOR SAFETY. 10:23:12 I YIELD BACK MY TIME. TODAY IT DOES OPEN OUR THIRD 10:23:20 HEARING AND A VERY CRITICAL HEARING IN THE DEEP WATER 10:23:32 HORIZON OIL SPILL. THIS HEARING PROVIDES THE 10:23:36 SUBCOMMITTEE WITH AN IMPORTANT OPPORTUNITY TO DIRECTLY QUESTION 10:23:39 THE MAN WHO ULTIMATELY LEADS BP, MR. TONY HAYWARD AND BP'S ROLE 10:23:44 HAS BEEN CENTRAL TO THE CAUSES OF THE INCIDENT AND TO THE 10:23:47 RESPONSE OVER THE COURSE OF OUR INQUIRY TODAY, COMMITTEE 10:23:51 INVESTIGATORS WORKING IN A BY PARTISAN FASHION HAVE CONDUCTED 10:23:56 NUMEROUS INTERVIEWS AND BRIEFINGS AND REVIEWED TENS OF 10:23:59 THOUSANDS OF PAGES OF DOCUMENTS, OUR SUBCOMMITTEE HAS DONE AN 10:24:04 EXCELLENT JOB AND THIS SUB COMMITTEE HAS BEEN FOCUSED ON 10:24:07 GATHERING THE FACTS RATHER THAN RUSHING TO JUDGMENT. 10:24:09 AND FROM THIS INTENSIVE EFFORT WE HAVE BEGUN TO HAVE A SERIES 10:24:16 OF QUESTIONS, EXPLORING THESE AND RELATED QUESTIONS TODAY WILL 10:24:20 HELP US IDENTIFY FOR CONGRESS AND IDENTIFY FOR THE COUNTRY 10:24:24 WHAT WENT WRONG ON APRIL 20th AND THE DAYS THEREAFTER, AND 10:24:27 WHILE WE ARE INVESTIGATING, A PICTURE OF THE CHAIN OF EVENTS 10:24:30 LEADING TO THIS INCIDENT IS EMERGING. 10:24:33 MR. CHAIRMAN, YOU AND CHAIRMAN WAXMAN RECENTLY OUTLINED SOME 10:24:37 CRITICAL QUESTIONS THAT WE HOPE MR. HAYWARD WILL ADDRESS, FOR 10:24:41 EXAMPLE YOU NOTED THE INVESTIGATION HAS IDENTIFIED 10:24:44 QUESTIONABLE CHOICES BY BP ENGINEERS TO USE A PARTICULAR 10:24:47 WELL DESIGN OVER ANOTHER ONE THAT WOULD APPEAR TO HAVE 10:24:51 PROVIDED MORE BUILT IN BARRIERS TO AN UNCRIMINALED GADDIS 10:24:53 CHARGE. THERE WAS THE CHOICE MADE BY BP 10:24:57 TO MOVE FORWARD WITH WHAT APPEARS TO BE AN INADEQUATE 10:25:02 CEMENTING PLAN AND THE RELATED FAILURE DESPITE CLEAR WARNINGS 10:25:06 TO TEST THAT THE CEMENT WAS PROPERLY IN PLACE. 10:25:08 AND IT APPEARS THERE MAY HAVE BEEN A RUSH TO MOVE OFF THIS 10:25:12 WELL, WHETHER THERE MAY HAVE BEEN ECONOMIC OR OTHER TIME AND 10:25:16 PERFORMANCE MEASURES OR SOME COMBINATION THEREOF, IT IS NOT 10:25:21 CLEAR BURKS THAT CLARITY NEEDS TO EMERGE TODAY. 10:25:24 THE QUESTION OUTLINED IN THE CENTRAL ROLE OF BP'S DECISION 10:25:27 MAKING APPEARS THAT BP'S DECISION MAKING APPEARS TO HAVE 10:25:30 HAD IN THIS INCIDENT. WE NEED TO UNDERSTAND THAT 10:25:34 DECISION MAKING, MR. HAYWARD. WHAT FACTORS INFLUENCED IT, 10:25:38 WHETHER THE DECISIONS REFLECTED A MANAGEMENT AND AN OPERATIONAL 10:25:42 MIND SET THAT FAILED, FAILED TO MAXIMIZE SAFETY IN A CHALLENGING 10:25:45 DEEP SEA ENVIRONMENT. IT IS IMPORTANT TO NOTE THAT THE 10:25:49 PICTURE DEVELOPING FROM THIS INVESTIGATION IS NOT ONE OF 10:25:53 TECHNOLOGICAL LIMITS IN DEEP SEA DRILLING, THE CONSTRUCTION OF AN 10:25:58 18,000-FOOT WELL WAS NOT PUSHING THE ENVELOPE OF ENGINEERING KNOW 10:26:01 HOW SO FAR AS WE IDENTIFIED, BUT THE PICTURE DEVELOPING IS ONE OF 10:26:06 UNSAFE INDUSTRY PRACTICES, ALTHOUGH CLEARER MORE FOCUSEDED 10:26:11 INDUSTRY STANDARDS MAY BE ABLE GOING FORWARD, THE BEST INDUSTRY 10:26:16 PRACTICE WOULD HAVE RESULTED IN MORE CAUTIOUS DESIGNS AND MORE 10:26:21 TESTING, MORE SAFEGUARDS AND ULTIMATELY NO LOSS OF CONTROL OF 10:26:24 THE WELL. RATHER AND QUITE CLEARLY THE 10:26:29 PICTURE IS QUESTIONING DECISION MAKING BY PEOPLE CHARGED WITH 10:26:32 DESIGNING AND SUCCESSFULLY DRILLING, AND CONTROLLING A WELL 10:26:37 THAT IS A MILE UNDER WATER. IT IS A SERIES OF CHOICES WHICH 10:26:41 TAKEN TOGETHER CREATED AN OIL WELL PARTICULARLY VULNERABLE TO 10:26:44 A BLOWOUT AND OF ALL THE PEOPLE WHO MAY HAVE BEEN DISTRACTED, 10:26:48 UNAWARE OR RESISTANT TO RECOGNIZING THE PROBLEMS AROUND 10:26:52 THEM. DOCUMENTS SHOW THAT BP WAS 10:26:54 PREPARED TO RUN A TEST ON THE QUALITY OF THE CEMENT SHOT, BUT 10:26:58 CHOSE NOT TO. I CAN'T UNDERSTAND WHY GIVEN THE 10:27:01 HISTORY OF THIS PARTICULAR WELL WITH FOUR PREVIOUS WELL 10:27:04 CONTROLLED INCIDENTS IN THE TWO MONTHS PRY YOU TO APRIL 20. 10:27:08 THE RIG PERSONNEL APPEAR TO HAVE TAKEN THEIR EYE OFF THE BALL. 10:27:13 BP EMPLOYEES WERE THE KEY D 10:27:18 DECISION MAKERS. CERTAINLY OTHERS MAY HAVE 10:27:21 CONTRIBUTED TO THIS INCIDENT. THE OVERALL EFFECTIVENESS OF THE 10:27:28 RESPONSE AND THE EFFORT TO HELP THOSE HARMED BY THE INCIDENT IS 10:27:34 SOMETHING WE MUST -- BUT IT IS BP'S DECISION MAKING ABOUT THE 10:27:37 WELL DESIGN, THE CEMENTING PROGRAM, THE PREPARATION, THE 10:27:44 INTEGRITY TESTS OR JUST THE GENERAL LACK OF CURIOSITY AS TO 10:27:47 WHY THESE WOULD BE NECESSARY T FAILURE TO FOLLOW BEST PRACTICES 10:27:51 THAT OUR INVESTIGATION TO DATE IS SHOWING WERE CRITICAL FACTORS 10:27:55 IN THIS INCIDENT. BUT THIS DECISION MAKING IS 10:27:58 DIFFICULT TO SQUARE WITH THE PRIORITIES OF BP'S CHIEF 10:28:04 EXECUTIVE. BEFORE YOU BECAME CHIEF 10:28:05 EXECUTIVE YOU DESCRIBED OUT THE DEPTH OF A WORKER SHAPED YOUR 10:28:10 OPINIONS, YOU SAID AND I'M QUOTING, I WENT TO THE FUNERAL 10:28:13 TO PAY MY RESPECTS. AT THE END OF THE SERVICE, HIS 10:28:17 MOTHER CAME UP TO ME AND BEAT ME ON THE CHEST, WHY DID YOU LET IT 10:28:21 HAPPEN, SHE ASKED. IT CHANGED THE WAY I THINK ABOUT 10:28:24 SAFETY. LEADERS MUST MAKE SAFETY OF ALL 10:28:26 WHO WORK FOR THEM A PRIORITY, END QUOTE. 10:28:29 MR. HAYWARD, I RESPECTFULLY REQUEST THAT YOU ANSWER THIS 10:28:33 QUESTION IN YOUR OPENING STATEMENT IF NOT FOR ME, THEN 10:28:35 FOR THE TWO LADIES WHO TESTIFIED BEFORE OUR COMMITTEE ON THE 10:28:38 FIELD HEARING WHO LOST THEIR HUSBANDS ON THE DEEP WATER 10:28:44 HORIZON. YOU HAVE BEEN CHIEF EXECUTIVE 10:28:46 SINCE 2007, YOU SAID SAFETY IS YOUR NUMBER ONE PRIORITY AND YOU 10:28:53 WOULD FOCUS LIKE A LASER BEAM ON SAFETY. 10:28:56 WE HAVE NOW LEARNED FROM THIS INVESTIGATION THAT BP EMPLOYEES 10:29:00 MADE FIVE CRITICAL DECISIONS THAT MAY HAVE CONTRIBUTED TO 10:29:04 WELL FAILURE WHERE WELL SAFETY WAS TRADED OFF. 10:29:06 IN FACT IT WAS NOT THE PRIORITY. SO TODAY, WILL YOU ASSERT BEFORE 10:29:10 THIS SUBCOMMITTEE THAT ALL DECISIONS BY BP EMPLOYEES 10:29:13 RELATED TO THE DEEP WATER HORIZON REFLECTED YOUR PRIORITY, 10:29:17 YOUR PRIORITY OF SAFETY FIRST. MR. CHAIRMAN, THE DISASTER IN 10:29:24 THE GULF OF MEXICO SHOWS A SERIES OF UNCHECKED BAD 10:29:27 DECISIONS, WE IN CONGRESS AND THE FEDERAL GOVERNMENT MUST ALSO 10:29:31 BE MINDFUL OF THE CONSEQUENCES OF BAD DECISION MAKING. 10:29:35 THE SUBCOMMITTEE HEARD SOME OF THE ADMINISTRATION'S DECISIONS 10:29:38 ARE THREATENING THE LIVELIHOODS OF WORKERS AND FAMILIES WHO 10:29:42 DEPEND UPON THE ENERGY INDUSTRY. WE HAVE KILLED HALF OF THEIR 10:29:45 FISHING WITH THE DEEP WATER HORIZON SPILL AND IT LOOKS LIKE 10:29:48 WE'RE GOING TO KILL THE OTHER HALF OF THEIR COMMITTEE WITH OUR 10:29:54 MORATORIUM. OUR HEARING TODAY LOOKS AT THE 10:29:56 CONSEQUENCES OF BAD DECISIONS AND THE LESSONS LEARNED, MAY WE 10:29:59 HAVE THE WISDOM AND HUMILITY TO TAKE SOME OF THOSE LESSONS AND 10:30:03 APPLY THEM TO OURSELVES? AND I YOOELTD YIELD BACK THE 10:30:08 BALANCE OF MY TIME. I WOULD LIKE TO TURN TO 10:30:10 CHAIRMAN OF THE ENERGY AND ENVIRONMENT SUBCOMMITTEE AND 10:30:12 CHAIRMAN OF THE SUBCOMMITTEE ON CLIMATE MR. MARKEY, FIVE MINUTES 10:30:19 FOR AN OPENING STATEMENT. THANK YOU, MR. CHAIRMAN, VERY 10:30:24 MUCH. I WANT TO BEGIN BY DISAGREES IN 10:30:26 THE STRONGEST POSSIBLE TERMS WITH WHAT MR. BARTON SAID IN HIS 10:30:34 OPENING STATEMENT. NOT ONLY IS THE COMPENSATION 10:30:38 FUND THAT WAS CREATED YESTERDAY AT THE WHITE HOUSE IN AN 10:30:48 AGREEMENT REACHED BY PRESIDENT OBAMA, NOT A SLUSH FUND AND NOT 10:30:53 A SHAKEUP, RATHER IT WAS THE GOVERNMENT OF THE UNITED STATES 10:31:00 WORKING TO PROTECT THE MOST VULNERABLE CITIZENS THAT WE HAVE 10:31:04 IN OUR COUNTRY RIGHT NOW. # WE CANNOT WAIT AS 10:31:29 INFORTUNATELY SO MANY CITIZENS WHO WERE VICTIMS OF THE "EXXON 10:31:35 VALDEZ" SPILL HAD TO WAIT YEARS IN ORDER TO SEE THOSE FAMILIES 10:31:38 COMPENSATED. WE CAN'T LOSE SIGHT OF THE FACT 10:31:47 THAT THE 1984 BOPAUL DISASTER AND THE LAWSUITS THAT WERE 10:31:54 RELATED TO IT WERE ONLY SETTLED LAST WEEK. 10:32:32 AFTER EXAMINING THE DOCUMENTS BP GAVE THE FAMILY $5,000. 10:32:40 THE FAMILIES IN THE GULF WILL BE CRUSHED FINANCIALLY UNLESS THIS 10:32:49 COMPENSATION FUND IS PUT INTO PLACE. 10:32:52 AS EACH DAY AND WEEK AND MONTH GOES BY, THE HISTORY OF THESE 10:32:58 FAMILIES ARE GOING TO BE ALTERED. 10:33:01 AND PERMANENTLY ALTERED UNLESS THEY ARE GIVEN THE FINANCIAL 10:33:06 CAPACITY TO TAKE CARE OF THEIR LOVED ONES, THEIR CHILDREN, 10:33:11 THEIR FAMILIES. IS THAT'S WHY THIS COMPENSATION 10:33:24 FUND IS SO IMPORTANT, THAT'S WHY IT IS NOT A SHAKEDOWN. 10:33:29 IT IS IN FACT PRESIDENT OBAMA ENSURING THAT A COMPANY WHICH 10:33:34 HAS SPOILED THE WATERS OF OUR NATION IS MADE ACCOUNTABLE FOR 10:33:39 THE HARM WHICH IS DONE TO OUR PEOPLE. 10:33:42 A COMPANY WHICH SAID FOR THE FIRST WEEK THAT IT WAS ONLY 10:33:46 1,000 BARRELS OF OIL PER DAY WHEN WE NOW KNOW THAT THEY KNEW 10:33:51 IT WAS AT LEAST 1,000 TO 14,000 BARRELS. 10:33:56 A COMPANY WHICH CONTINUES TO DENY THAT THERE WERE UNDERWATER 10:34:00 TOXIC PLUMES, A COMPANY WHICH HAS NOT BEEN PROVIDING THE 10:34:04 PROPER PROTECTIVE GEAR, A COMPANY THAT SAYS THEY COULD -- 10:34:21 THIS IS NOT A SHAKEDOWN OF THEIR COUNTRY, THIS IS THE AMERICAN 10:34:25 GOVERNMENT, PRESIDENT OBAMA ENSURING THAT THIS COMPANY IS 10:34:28 MADE ACCOUNTABLE AND SENDING A SIGNAL TO ALL OTHER COMPANIES 10:34:34 THAT SEEK TO TREAT ORDINARY AMERICAN FAMILIES IN A WAY THAT 10:34:40 CAN DESTROY THEIR ENTIRE FAMILY'S HISTORY. 10:34:43 THIS IS IN MY OPINION THE AMERICAN GOVERNMENT WORKING AT 10:34:45 ITS BEST. THIS IS CREATING TRULY THE KIND 10:34:50 OF PARTNERSHIP BETWEEN THE PUBLIC AND PRIVATE SECTOR. 10:34:54 THAT CAN MAKE SURE THAT INNOCENT VICTIMS ARE NOT ROAD KILL AS A 10:35:01 RESULT OF CORPORATE PLANS THAT DID NOT ACTUALLY FACTOR IN THE 10:35:05 HARM THAT CAN OCCUR TO ORDINARY FAMILIES. 10:35:08 SO I JUST COULD NOT DISAGREE MORE STRONGLY. 10:35:13 I THINK THAT THIS IS IN MY OPINION ONE OF THE MOST 10:35:17 IMPORTANT HEARINGS THAT THIS CONGRESS WILL EVER HAVE BECAUSE 10:35:20 IT IS ENDING A SIGNAL TO ANY CORPORATIONS OUT THERE INCLUDING 10:35:29 THE ONES THAT TESTIFIED ON TUESDAY THAT THEY HAD TO RESPOND 10:35:34 TO THE HARM WHICH COULD BE DONE IN THE GULF IF ONE OF THEIR RIGS 10:35:37 HAD THE SAME KIND OF CATASTROPHIC EVENT THAT THEY 10:35:41 WILL BE MADE ACCOUNTABLE. SO I THANK YOU, MR. CHAIRMAN FOR 10:35:47 HOLDING THIS HEARING AND I THANK YOU MR. HAYWARD BECAUSE 10:35:51 YESTERDAY WAS THE DAY WHERE THE PAGE BEGAN TO BE TURNED AND WE 10:35:57 MOVE TO A NEW ERA, WHERE IN FACT YOUR COMPANY IS MADE ACCOUNTABLE 10:36:03 AND THE CITIZENS OF THE GULF ARE MADE WHOLE. 10:36:05 THANK YOU, MR. CHAIRMAN. MR. SULLIVAN, HOLD YOUR 10:36:14 OPENING STATEMENT TO THREE MINUTES, PLEASE SIR. 10:36:17 CHAIRMAN, STUPAK, THANK YOU FOR HOLDING THIS HEARING TODAY. 10:36:23 ON APRIL 20, 2010, A FIRE -- THIS TERRIBLE DISASTER RESULTED 10:36:29 IN THE LOSS OF 11 LIVES AND INJURED MANY MORE MEMBERS OF THE 10:36:34 126-PERSON CREW. THERE IS NO QUESTION THAT THE BP 10:36:36 OIL SPILL IS A TRAGEDY. IN FACT IT IS THE WORST 10:36:41 ENVIRONMENTAL DISASTER IN OUR NATION'S HISTORY. 10:36:44 I BELIEVE WE MUST DO EVERYTHING IN OUR POWER TO CAP THE LEAK, 10:36:47 FIND OUT WHAT CAUSED THE EXPLOSION AND ENSURE NOTHING 10:36:50 LIKE THIS EVER HAPPENS AGAIN. BP MUST BEAR THE ENTIRE 10:36:56 FINANCIAL BURDEN FOR THIS DISASTER AND THE AMERICAN 10:36:58 TAXPAYER SHOULD NOT BE ON THE HOOK FOR A DIME. 10:37:02 ACCORDING TO THE OCCUPATION SAFETY HEALTH ADMINISTRATION, 10:37:05 THERE'S MOUNTING EVIDENCE THAT BP HAS ONE OF THE WORST SAFETY 10:37:09 RECORDS OF ANY MAJOR OIL COMPANY OPERATING IN THE UNITED STATES. 10:37:13 TO THIS END, I'M LOOKING FORWARD TO EXAMINING WITH MR. HAYWARD 10:37:18 WHETHER THERE IS A DEFICIENT SAFETY CULTURE AT BP THAT LED TO 10:37:22 THIS DISASTER AND OTHER RECENT ONES INCLUDING THE BP REFINELY 10:37:27 EXPLOSION IN 2005 IN TEXAS CITY, TEXAS AND A BP PIPELINE SPILL IN 10:37:34 2007 WE RELEASED 200,000 GALLONS OF OIL INTO THE ALASKAN 10:37:40 WILDERNESS. MR. HAYWARD WHY IS BP'S RECORD 10:37:43 ON SAFETY SO SPOTTY? WHAT IS EQUALLY AS IMPORTANT TO 10:37:48 COMBAT THE SPILL IS THE KNEE JERK LEGISLATION REACTION FROM 10:37:51 THE CONGRESS. RIGHT NOW THE ADMINISTRATION AND 10:37:53 THEIR ALLIES IN THE HOUSE ARE MORE FOCUSSED ON PUTTING THE OIL 10:37:57 AND GAS INDUSTRY OUT OF BUSINESS ON SOLUTIONS TO THE PROBLEM. 10:38:01 INSTEAD OF WORKING IN A BUY PART AN WAY FOR RIGOROUS SAFETY 10:38:07 STANDARDS ON ALL OFFSHORE RIGS, THE M IS EXPLOITING THIS 10:38:10 DISASTER TO ADVANCE THIS DISASTROUS CAP AND TRADE ENERGY 10:38:14 POLICY, WHICH WON'T STOP THE WELL FROM LEAKING BUT RATHER 10:38:19 WILL ONLY SERVE AS A NATIONAL TAX ON -- CRIPPLING OUR ECONOMY 10:38:23 AND MAKING THE UNEMPLOYMENT LINES LONGER. 10:38:26 I BELIEVE CONGRESS SHOULD WORK TOWARDS SAFETY INSPECTIONS ON 10:38:35 ALL OFFSHORE WELLS. A BAN ON OFFSHORE DRILLING WILL 10:38:38 ONLY PUT AMERICANS OUT OF WORK. BUT IT WILL SEND A -- IT WILL 10:38:43 SEND ENERGY AND GAS PRICES THROUGH THE ROOF AND INCREASE 10:38:47 OUR RELIANCE ON FOREIGN, IMPORTED OIL. 10:38:49 WE STILL HAVE WORK TO DO TO UNCOVER EXACTLY WHAT WENT WRONG 10:38:53 AND MR. QUESTIONS REMAIN ON THE ONGOING EFFORTS TO PLUG IS LEAK. 10:38:58 THIS SHOULD NOT BE AN EXCUSE TO -- AS WE WILL NEED MORE OIL 10:39:04 AND NATURAL GAS TO MEET THE CRUCIAL NEEDS OF OUR NATION, AND 10:39:07 I YIELD BACK THE BALANCE OF MY TIME. 10:39:11 I WOULD LIKE TO HEAR FROM THE CHAIRMAN EMERITUS OF THE ENERGY 10:39:16 COMMITTEE, MR. DINGLE FOR FIVE MINUTES, PLEASE, SIR. 10:39:19 CHAIRMAN, I COMMEND YOU FOR HOLDING THIS IMPORTANT HEARING 10:39:21 TODAY. WE SIT HERE ON DAY 59 OF THE 10:39:27 WORST ENVIRONMENTAL DISASTER IN THE HISTORY OF THIS COUNTRY. 10:39:31 11 PEOPLE ARE DEAD, THE ALREADY FRAGILE ECONOMY OF AN ENTIRE 10:39:38 REGION IS IN REAL DANGER OF SHATTERING. 10:39:40 WE WILL BE FEELING THE ENVIRONMENTING CONSEQUENCES FOR 10:39:41 YEARS TO COME. AND GOD ALMIGHTY ALONE KNOWS 10:39:47 WHAT THE HEALTH AND ENVIRONMENTAL EFFECTS OF THE 10:39:50 CONTAINMENT AND CLEANUP STRATEGIES WILL BE. 10:39:53 MILLIONS OF GALLONS OF CHEMICAL DISPERSANTS AND CONTROLLED 10:39:59 BURNS. SADLY WE CAN'T EVEN GET A DECENT 10:40:01 ESTIMATE OF THE AMOUNT OF OIL AND GAS THAT'S SPEWING OUT INTO 10:40:04 THE WATER. BP HAS BEEN BEFORE THIS 10:40:09 COMMITTEE MANY TIMES. AND RARELY HAS IT BEEN APLEASANT 10:40:12 MEETING. BECAUSE IN VARIABLY THEY HAVE 10:40:17 APPEARED HERE TO DEFEND SERIOUS FAILURES ON THE PART OF THE 10:40:20 COMPANY. THE COMPANY HAS A HISTORY OF 10:40:25 CUTTING CORNERS, APPARENTLY, FOR THE ALMIGHTY DOLLAR. 10:40:29 TEXAS CITY, THEY PAID THERE $50 MILLION IN CRIMINAL FINES, 10:40:36 ALASKA'S NORTH SIDE SLOPE WHICH WAS INVESTIGATED BY THIS 10:40:39 SUBCOMMITTEE, WHERE A PIPE CORRODED, ALLOWING 1 MILLION 10:40:42 LITERS OF OIL TO SPILL. IN EACH INSTANCE, WE WERE HOPING 10:40:48 THAT THE ASSURANCES GIVEN BY BP THAT THIS WOULD NOT HAPPEN AGAIN 10:40:55 HAVE BEEN REGRETTABLY UNTRUE. IN REFERENCE TO A DECISION ON 10:41:02 HOW TO SECURE THE FINAL 1,200 FEET OF THE WELL, A SINGLE 10:41:05 CASING OR TIE BACK OF BP ENGINEER SAID NOT RUNNING THE 10:41:10 TIE BACK 15I6S A GOOD DEAL OF TIME AND MONEY. 10:41:21 IN REFERENCE TO INSTALLING FOR CENTRALIZERS, A BP INSPECTOR 10:41:25 SAID, IT WILL TAKE TEN HOURS TO INSTALL THEM, I AM CONCERNED, I 10:41:32 DON'T WANT TO USE IT. SO WERE WE. 10:41:35 EVEN IF THE HOLE IS PERFECTLY STRAIGHT, AS STRAIGHT PIECE OF 10:41:40 PIPE, EVEN IN TENSION WILL NOT SEEK THE CENTER OF THE HOLE 10:41:44 UNLESS IT HAS SOMETHING TO CENTRALIZE IT. 10:41:47 I WANT YOU TO LISTEN TO THIS, BUT WHO CARES? 10:41:50 IT'S DONE, END OF STORY. IT WILL PROBABLY BE FINE. 10:41:53 AND NOTE THE WORD PROBABLY. AND WE'LL GET A GOOD CEMENT JOB. 10:41:57 I WOULD RATHER HAVE TO SQUEEZE THAT GETS STUCK, SO GUARD RIGHT 10:42:03 ON THE RISK-REWARD OCCASION. MR. CHAIRMAN, THE COMMENTS OF 10:42:09 OUR WITNESS TODAY REVEAL LITTLE SORROW FOR THE EVENTS THAT HAVE 10:42:13 OCCURRED. AND HERE HE SAID, THE GULF OF 10:42:16 MEXICO IS A VERY BIG OCEAN, THE AMOUNT OF VOLUME OF OIL AND 10:42:23 DISPERANT WE ARE PUTTING IN IS TINY IN RELATION TO THE TOTAL 10:42:28 WATER VOLUME AND THEN THE ENVIRONMENTAL IMPACT OF THE 10:42:32 DISASTER IS LIKELY TO BE VERY, VERY MODEST. 10:42:35 I WONDER IF HE WISHES TO STAND ON THAT STATEMENT TODAY. 10:42:39 WHEN MR. HAYWARD RESPONDED TO THE CLAIMS THAT CLEANUP WORKERS 10:42:43 WERE BECOMING ILL BECAUSE OF OIL FUMES AND SUCH, HE SAID THIS, 10:42:48 FOOD POISONING IS CLEARLY A BIG ISSUE. 10:42:51 FINALLY MOST FAMOUSLY, MR. HAYWARD INFORMS US HE WANTS HIS 10:42:58 LIFE BACK, LAST YEAR MR. HAYWARD ENJOYED A SPLENDID 40% PAY RAISE 10:43:05 EVEN THOUGH BP'S PROFITS DROPPED. 10:43:08 I JUST HAPPEN TO BE A POOR POLISH LAWYER FROM DETROIT. 10:43:11 BUT IT SEEMS TO ME THAT THIS IS A CURIOUS RESPONSE TO A DROP IN 10:43:15 PROFITS. IT MAKES ME WONDER WHAT THE 10:43:17 COMPENSATION PACKAGE OF OUR WITNESS WILL BE THIS YEAR. 10:43:21 MR. CHAIRMAN, AGAIN, I THANK YOU FOR YOUR DILIGENCE AND HARD WORK 10:43:24 ON THIS ISSUE. I LOOK FORWARD TO HEARING FROM 10:43:27 OUR WITNESSES TODAY AND LOOK FORWARD TO WORKING WITH YOU ON 10:43:29 THIS MATTER. THANK YOU. 10:43:32 THANK YOU, MR. CHAIRMAN. NEXT MS. BLACKBURN, IF YOU WILL 10:43:38 MAKE YOUR OPENING STATEMENT PLEASE. 10:43:40 THANK YOU, MR. CHAIRMAN, I THANK YOU AND RANKING MEMBER 10:43:43 BURGESS FOR HOLDING THE HEARING TODAY. 10:43:45 MR. HAYWARD, I THANK YOU FOR YOUR WILLINGNESS TO TESTIFY 10:43:48 BEFORE THIS COMMITTEE. YOU KNOW, WHEN NEWS OF THE BP 10:43:53 SPILL BEGAN AND INFORMATION ABOUT THE WELL STARTED TO 10:43:55 CIRCULATE, IT SEEMEDA THERE WAS PROBLEMS NOT ONLY WITH BP, BUT 10:44:00 ALSO WITH MMS BUREAUCRACY AND MAYBE THE PROBLEM LAY THERE 10:44:07 RATHER THAN WITH ANYTHING THAT COULD HAVE GONE WRONG WITH BP, 10:44:10 THAT IT WAS THERE WITH MMS. WHAT WELEARNED AND 10:44:17 CONFIRMED THAT THAT IS NOT CORRECT, THAT THE PROBLEM DOES 10:44:20 LIE WITH BP AND WHAT WENT WRONG, WHILE THERE ARE MANY FAULTS WITH 10:44:26 MMS ON SAFETY AND OVERSIGHT, MOST OF THE DATA POINTS TO WRONG 10:44:31 DECISION MAKING BY BP'S MANAGEMENT AND THIS IS NOT THE 10:44:33 FIRST TIME AND WE HAVE TALKED ABOUT THAT IN SEVERAL OF OUR 10:44:37 OPENING STATEMENTS THIS MORNING. IT'S NOT THE FIRST TIME WE HAVE 10:44:41 BEEN BEFORE THIS COMMITTEE ON SAFETY PROBLEMS, AND MOST 10:44:45 RECENTLY AS THE TEXAS CITY 2005 AND ALASKA INCIDENTS WHICH 10:44:49 REVEALED INSUFFICIENT PROTOCOLS IN BP'S MANAGEMENT AND SAFETY 10:44:55 HIERARCHY, THERE WAS A STATEMENT FROM BP THAT YOU ALL WOULD 10:44:59 QUOTE, UNQUOTE FOCUS LIKE A LIZZER ON SAFETY. 10:45:01 AND IT IS CONCERNING TO US THAT THE APPEARANCE IS, MR. HAYWARD 10:45:06 THAT BP HAS NOT LEARNED FROM PREVIOUS MISTAKES, SO IT LEAVES 10:45:10 US ASKING THE QUESTIONS OF YOU AND OF BP, WAS THIS ACCIDENT 10:45:16 CAUSED BY NEGLIGENCE? WAS IT CAUSED BY RISK TAKING? 10:45:21 WAS IT CAUSED BY COST CUTTING MEASURES? 10:45:24 BY BP DECISION MAKERS AND UNFORTUNATELY FOR CITIZENS, 10:45:30 BEACHES AND WILDLIFE ALL ALONG THE COASTAL REGION, THEY ARE 10:45:34 PAYING A PRICE FOR THOSE MISPLACED DECISIONS. 10:45:39 BP CANNOT BLAME MOTHER NATURE OR EQUIPMENT FAILURE OR EVEN OTHER 10:45:45 SUBCONTRACTORS. THEIR ACTIONS HAVE PUT AT RISK 10:45:48 THE LIVELIHOOD OF COMMUNITIES AND BUSINESSES THAT DEPEND ON 10:45:52 THE GULF, NOT ONLY FOR SEAFOOD AND TOURISM, BUT ALSO ENERGY 10:45:57 PRODUCTION THAT THIS NATION AS A WHOLE RELIES UPON. 10:46:02 IN ADDITION, THE CURRENT ADMINISTRATION ALSO SHARES A 10:46:05 SIGNIFICANT PORTION OF THE BLAME FOR THE OIL SPILL. 10:46:07 I MENTIONED MMS EARLIER AND THE MMS OFFICIALS APPROVED 10:46:12 INADEQUATE SPILL RESPONSE PLANS AND FIELD INSPECTORS RUBBER 10:46:17 STAMPED INSPECTION PAPERS SUBMITTED BY OIL COMPANIES. 10:46:20 THIS IS ANOTHER AREA WHERE WE AS MEMBERS OF CONGRESS IN DOING OUR 10:46:25 DUE DILIGENCE WILL ASK YOU ALL AND MMS WHY. 10:46:28 BUT WHAT IS THE MOST DAMAGING IS THAT THE PRESIDENT AND SENIOR 10:46:32 OFFICIALS KNEW ON DAY ONE THE BLOWOUT PREVENTER WAS NOT 10:46:35 WORKING AND KNEW OF THE POTENTIAL SPILLAGE. 10:46:39 WHILE BP SHOULDERS MUCH OF THE RESPONSIBILITY FOR THIS SPILL, 10:46:42 THE LACK OF EFFORT BY THIS ADMINISTRATION TO CONTAIN THE 10:46:45 SPILL HAS DOOMED THE ECONOMY AND WILDLIFE OF THE GULF COAST FROM 10:46:50 AN OIL SPILL WHICH COULD HAVE BEEN CONTAINED. 10:46:55 AND NOW RECENTLY IMPOSED DRILLING MORATORIUMS WILL 10:46:59 FURTHER DEVASTATE AMERICA'S ENERGY PRODUCTION AND WILL 10:47:02 DESTROY HUNDREDS OF THOUSANDS OF JOBS IN THE GULF COAST REGION. 10:47:06 THANK YOU FOR BEING WITH US TODAY, MR. CHAIRMAN, I YIELD THE 10:47:09 BALANCE OF MY TIME. THANK YOU. 10:47:13 I NEXT TURN TO VICE CHAIRMAN OF THE SUBCOMMITTEE, OPENING THREE 10:47:19 MINUTES SIR. MR. HAYWARD, YOU'RE NOT GOING 10:47:26 TO GET A LEK SCHUR FROM ME TODAY AND YOU'RE NOT GOING TO GET AN 10:47:31 APOLOGIES. QUITE FRANKLY THE PEOPLE WHO 10:47:33 LIVE ALONG THE AFFECTED AREA OF THE GULF COAST DESERVE ANSWERS 10:47:36 FROM YOU. WE WERE IN LOUISIANA LAST WEEK 10:47:38 AND WE HAD THE OPPORTUNITY TO HEAR FROM A VARIETY OF 10:47:43 INDIVIDUALS WHOSE LIVES HAVE BEEN DEVASTATED BY THIS OIL 10:47:45 DISASTER AND I USE THE WORD DISASTER SPECIFICALLY BECAUSE I 10:47:49 DON'T THINK SPILL QUITE CAPTURES THE MAGNITUDE OF WHAT'S GOING 10:47:51 ON. THE AMERICAN PEOPLE ARE 10:47:55 FRUSTRATED BECAUSE WE WERE FIRST TOLD THAT THIS WAS A 1,000 10:47:58 BARREL BER DAY RELEASE AND ABOUT A WEEK LATER THAT WAS UPDATED TO 10:48:03 5,000 BARRELS PER DAY. AND AT THE END OF MAY IT WAS 10:48:06 ADJUSTED UPWARDS OF 15,000 TO 19,000 BARRELS A DAY AND THIS 10:48:11 WEEK IT COULD BE AS HIGH AS 60,000 BARRELS A DAY. 10:48:18 THAT'S 17.5 MILLION GALLONS BER WEEK AND OVER THE LENGTH OF THIS 10:48:26 DISASTER IT COULD BE THE LARGEST RELEASE OF OIL IN THE NORTH 10:48:29 AMERICAN CONTINENT IN HISTORY, UNINTENDED. 10:48:31 ONE OF THE THINGS I THINK WE NEED TO KNOW ABOUT TODAY IS THE 10:48:35 DECISIONS THAT YOUR COMPANY MADE AND WHO AHEAD THEM THAT LED TO 10:48:39 THIS EXPLOSION AND SUBSEQUENT DISASTER, WHAT YOUR COMPANY IS 10:48:47 DOING TO FIX THIS PROBLEM AND WHAT YOUR COMPANY IS DOING FOR 10:48:49 ALL THE FAMILIES AND COMMUNITIES THAT HAVE BEEN DEVASTATED BY 10:48:52 THIS DISASTER AND I THINK IT WOULD BE HELP FOLLOW FOR YOU AND 10:48:57 EVERYBODY IN THIS HEARING ROOM TO HEAR FROM THOSE WOMEN WHO 10:49:02 TESTIFIED LAST WEEK, BECAUSE THEY RAISED VERY POINTED 10:49:05 QUESTIONS THAT WERE DIRECTED TO YOUR COMPANY, SIR, AND THEY WERE 10:49:08 QUESTIONED THAT WERE RAISED AFTER THEY GAVE PASSIONATE 10:49:10 TESTIMONY OF WANTING THE OIL AND GAS BUSINESS TO CONTINUE IN 10:49:15 LOUISIANA AND THE GULF COAST REGION. 10:49:17 SO I WOULD LIKE TO HAVE YOU LISTEN TO THEIR KMENTS IN THE 10:49:20 HEARING. THIS IS NATALEE ROSCO. 10:49:24 I WOULD LIKE TO LEAVE HERE TODAY KNOWING THAT BECAUSE OF MY 10:49:28 HUSBAND'S TRAGIC DEATH, WE CAN BEGIN TO FOCUS ON MAKING SAFETY 10:49:32 THE MOST IMPORTANT PRIORITY. NOT TO FOCUS ON MAKING MORE 10:49:38 SAFETY REGULATIONS, BUT ON WAYS TO SAFELY IMPLEMENT THE ONES 10:49:42 THAT WE ALREADY HAVE. THIS CHALLENGE WILL NOT BE IN 10:49:51 VAIN BECAUSE RIGHT NOW MY HUSBAND'S DEATH IS IN VAIN. 10:49:55 IT WILL NOT BE IN VAIN IF IT MAKE THE TOP PRIORITY 10:49:59 AND CAUSE THESE POWERFUL OIL COMPANIES TO KNOW THEY WILL BE 10:50:03 HELD ACCOUNTABLE FOR THEIR ACTIONS. 10:50:07 WILE I UNDERSTAND COMPANIES MUST MAKE A PROFIT. 10:50:11 THIS IS COURTNEY. I DO NOT BELIEVE IT SHOULD BE 10:50:13 AT THE EXPENSE OF RISKING LIVES OR DESTROYING FAMILIES I'M 10:50:17 ASKING TO YOU PLEASE CONSIDER HARSH PUNISHMENTS ON COMPANIES 10:50:21 WHO CHOOSE TO IGNORE SAFETY STANDARDS BEFORE OTHER FAMILIES 10:50:25 ARE DESTROYED. MY FAMILY CAN NEVER AND WILL 10:50:28 NEVER BE ADEQUATELY COMPENSATED FOR OUR LOSS. 10:50:32 THESE ARE NOW WIDOWS WITH SMALL CHILDREN TO TAKE CARE OF 10:50:36 AND THEY ARE THE SYMBOLS AND THE FACES OF THIS DISASTER AND I 10:50:40 LOOK FORWARD TO YOUR TESTIMONY. YIELD BACK THE BALANCE OF MY 10:50:42 TIME. THANK YOU. 10:50:46 NEXT TURN TO MR. GINGREY OF GEORGIA FOR OPENING STATEMENTS. 10:51:00 FIRST OF ALL, I WANT TO EXPRESS MY CONDOLENCES, WE MUST 10:51:05 REMEMBER THOSE LIVES AND THE LIVES OF THEIR FAMILIES AS WE 10:51:07 JUST SAW THAT WERE FOREVER CHANGED ON THAT FATEFUL APRIL 10:51:12 DAY AND WE MUST CONTINUE TO KEEP THEM IN OUR THOUGHTS AND 10:51:16 PRAYERS. FURTHER, WE HAVE AN OBLIGATION 10:51:17 NOT ONLY TO THOSE FAMILIES BUT TO EVERYONE AFFECTED BY THE 10:51:21 AFTERMATH TO GET TO THE BOTTOM OF THE CAUSES OF THIS ACCIDENT 10:51:24 AND THE FAILURE TO SECURE THE SITUATION AND STOP THE 10:51:28 DEVASTATION WRECKED UPON THE GULF COAST. 10:51:31 MR. CLARM, WE HAVE AN OPPORTUNITY IN THIS OVERSIGHT 10:51:34 HEARING TO ASK QUESTIONS TO GET TO THE FACTS OF WHAT HAPPENED. 10:51:37 HOWEVER, TODAY'S HEARING IS INCOMPLETE. 10:51:39 WE CAN ONLY ASCERTAIN HALF OF THE STORY TODAY BECAUSE WE DO 10:51:43 NOT HAVE ANYONE REPRESENTING THE ADMINISTRATION. 10:51:47 THE MINERAL MANAGEMENT SERVICE TO DISCUSS THEIR OVERSIGHT ROLE 10:51:50 AND THEIR RESPONSIBILITY IN ENSURING THAT AN ACCIDENT LIKE 10:51:53 THIS DIDN'T HAPPEN. DEEP OCEAN DRILLING IS NOT NEW. 10:51:57 IN FACT, WE BEEN DOING IT FOR DECADES IN THE GULF COAST. 10:52:00 WHY DID THIS HAPPEN NOW? I'VE HEARD SOME ASSERT THAT IT 10:52:05 WAS A LAX OVERSIGHT OF THE PREVIOUS ADMINISTRATION THAT LED 10:52:07 TO THIS ACCIDENT. WELL FW, THAT'S THE CASE, WHY 10:52:10 DID THIS NOT HAPPEN DURING THE LAST DECADE. 10:52:12 WHY DID THIS OCCUR ALMOST A YEAR AND A HALF INTO THE CURRENT 10:52:16 ADMINISTRATION. WE NEED TO HEAR FROM OUR OWN 10:52:19 DEPARTMENT OF INTERIOR. AND THE MINERAL MANAGEMENT 10:52:22 SERVICES. CERTAINLY, MR. HAYWARD SHOULD BE 10:52:24 PREPARED TO ANSWER BP'S RESPONSIBILITY BUT WE WILL ALSO 10:52:27 NEED ANSWERS FROM THE ADMINISTRATION SO THAT WE CAN 10:52:30 DEMAND ACCOUNTABILITY AND IMPLEMENT PRUDENT REFORMS TO 10:52:33 RETURN US TO SAFE DRILLING IN OUR OCEANS BECAUSE SIMPLY SAYING 10:52:37 NO TO FURTHER AND NEW DRILLING IS NOT A REALISTIC ANSWER. 10:52:42 I FURTHER REALIZE THERE ARE IN THIS ADMINISTRATION WHO HAVE 10:52:47 A PEN CLANT FOR NOT LETTING A CRISIS GO TO WASTE, BUT FOR A 10:52:51 NATION DEPENDENT ON FOREIGN OIL, FOR A NATION WITH UNEMPLOYMENT 10:52:55 HOVERING AT 10%, WE CAN'T JUST SAY WE CAN'T DO THIS. 10:52:58 WE CAN'T TAKE OUR BALL AND GO HOME WHETHER THE CONSEQUENCES 10:53:01 MEAN A WEAKER AMERICA. EVERYONE DEPENDING ON FOREIGN 10:53:06 FUELS, ALL TOO INCLINED IT SEEMS, TO LET JOBS LEAVE THIS 10:53:09 COUNTRY. NO, MR. CHAIRMAN, WE HAVE TO 10:53:12 UNDERSTAND WHAT HAPPENED ON AND LEADING UP TO APRIL 20th. 10:53:16 WE NEED TO ANSWER THOSE QUESTIONS TO DETERMINE IF THE 10:53:18 RULES OR AGENCY OVERNIGHT WIN SUFFICIENT OR IF THIS WAS PURELY 10:53:21 AN ACT OF NEGLIGENCE OR WANTON DISREGARD FOR SOUND REGULATIONS. 10:53:26 NOW WE CAN TRY TO ENACT THE PERFECT REFORM THAT ENSURES THIS 10:53:31 NEVER HAPPENS AGAIN BOUGHT IT WILL NOT CHANGE THE PAST OR THE 10:53:33 TOLL UPON THE LIVES FOREVER CHANGED. 10:53:35 MR. HAYWARD, THE RESPONSIBILITY TO MAKE THESE FAMILIES WHOLE 10:53:39 FALLS TO YOU AND YOUR COMPANY BP YOU HAVE AN OBLIGATION TO RIGHT 10:53:43 THIS WRONG AND NOT ONLY THE PUBLIC TRUST BUT ALSO TO BELIEVE 10:53:46 IN THE FREE MARKET AND ENTREPRENEURSHIP DEMAND IT. 10:53:49 MR. CHAIRMAN, I WAIT THE OPPORTUNITY TO ASK QUESTIONS 10:53:53 WITH THE HOPE THAT WE WILL SOON DISCUSS THESE SAME MATTERS WITH 10:53:56 OUR OWN ADMINISTRATION. AND I YIELD BACK. 10:53:58 THANK YOU, MR. GINGREY. MR. GETT FOR AN OPENING 10:54:06 STATEMENT. AS THIS SAN INVESTIGATIVE 10:54:08 HEARING. LIE SUBMIT MY EXCELLENT OPENING 10:54:12 STATEMENT FOR THE RECORD IN ORDER TO HAVE MORE TIME TO 10:54:15 QUESTION THE WITNESS. VERY WELL. 10:54:17 MR. DOYLE, OPENING STATEMENT. MR. CHAIRMAN, THANK YOU FOR 10:54:20 CONVENING THIS HEARING TODAY SO WE CAN BEGIN TO UNDERSTAND WHAT 10:54:23 WENT SO TRAGICALLY WRONG ON THE DEEP WATER HORIZON. 10:54:28 WE'RE NOW 59 DAYS INTO THIS TRAGEDY AND OIL CONTINUES TO 10:54:34 GUSH INTO THE GULF OF MEXICO. THE ESTIMATES FOR HOW MUCH OIL 10:54:37 SPILLS INTO THE GULF EACH DAY CONTINUE TO RISE AND WE STILL 10:54:40 HAVE NO WAY TO CAP THE WELL IN THE NEAR FUTURE. 10:54:43 WE SIT HELPLESSLY AS WE WAIT FOR A RELIEF WELL TO BE COMPLETED. 10:54:47 AS THE DETAILS AND FACTS ABOUT DEEP WATER HORIZON COME TO LIGHT 10:54:52 IT IS CLEAR TO US ALL THAT THE DECISIONS MADE BY OFFICIALS AT 10:54:57 BP THAT REFLEKTDED BAD JUDGMENT AT BEST AND CRIMINAL NEMPS AT 10:55:01 WORST, THROUGH THIS COMMITTEE'S INVESTIGATION, WE'VE LEARNED 10:55:04 THAT AT NEARLY EVERY TURN, BP CUT CORNERS. 10:55:08 AND N WELL DESIGN, THE NUMBER OF CENTRALIZERS THEY USED, WHETHER 10:55:11 TO RUN A CEMENT BOND LOCK, CIRCULATING DRILLING MUDS AND 10:55:16 SECURING THE WELL HEAD WITH A LOCKDOWN SLEEVE, BP TOOK THE 10:55:20 PATH OF LEAST RESISTANCE. ON TUESDAY, COLLEAGUES AND 10:55:23 COMPETITIVES FROM THE OIL AND GAS INDUSTRY PROVIDED SWORN 10:55:29 TESTIMONY THAT THEY BELIEVED BP DELINQUENCIES IN WELL DESIGN AND 10:55:32 FAILED TO FOLLOW THE BEST PRACTICES OF THE INDUSTRY. 10:55:35 NOW WE LEARN THAT BP HAD SEVERAL WARNINGS ABOUT THE McCONDO WELL 10:55:39 WITH ONE OF THEIR OWN ENGINEERS CALLING IT A NIGHTMARE WELL. 10:55:42 BUT INSTEAD OF TREATING THE WELL WITH CAUTION IT SEEMS THAT BP'S 10:55:46 ONLY INTEREST WAS IN COMPLETING THE WELL QUICKLY AND CHEAPLY. 10:55:51 MANY QUESTIONS STILL NEED TO BE ANSWERED. 10:55:54 WERE BP EMPLOYEES ON THE DEEP WATER HORIZON GIVE ORDERS FROM 10:55:58 BP OFFICIALS TO SPEED UP THE McCONDO WELL? 10:56:00 WERE THEY TOLD TO SLASH COSTS WHEREVER POSSIBLE? 10:56:04 WHY WOULD A TEAM ON BOARD THE RIG TO TEST THE CEMENTING OF THE 10:56:09 WELL BE SENT HOME BEFORE PERFORMING THE TEST? 10:56:13 SURELY IF A CEMENT BOND LOCK WAS EVER NECESSARY, IT WOULD BE IN A 10:56:17 NIGHTMARE WELL SITUATION. BUT SENDING THE TEAM HOME, BP 10:56:22 SAVED $100,000 AND NINE OR TEN HOURS OF WORK. 10:56:25 MR. HAYWARD, I HOPE YOU'RE HERE TODAY TO ANSWER QUESTIONS ABOUT 10:56:29 THE DECISION MADE ON DEEP WATER HORIZON THAT LED TO THIS TRAGIC 10:56:32 AND DEADLY BLOWOUT. EARLIER THIS WEEK, THIS 10:56:37 COMMITTEE SENT YOU A LETTER WITH DETAILED INFORMATION ABOUT 10:56:39 TOPICS WE WOULD LIKE YOU TO ADDRESS TODAY. 10:56:42 IN REVIEWING YOUR STATEMENTS SUBMITTED FOR TODAY'S HEARING, 10:56:45 I'M EXTREMELY DISAPPOINTED IN YOUR AVOIDANCE OF THE REQUESTED 10:56:49 TOPICS. I CERTAINLY HOPE THAT YOU USE 10:56:52 THE OPPORTUNITY TODAY TO ANSWER OUR QUESTIONS OPENLY AND 10:56:58 TRUTHFULLY. I KNOW BP COMMITTED TO CLEAN UP 10:56:59 THE GULF REGION AND I EXPECT THAT COMMITMENT TO BE ONGOING. 10:57:02 I WELCOME YOUR PLEDGE TO PAY DAMPS THROUGH A $20 BILLION 10:57:07 ESCROW FUND BUT THAT'S JUST THE TIP OF THE ICEBERG. 10:57:10 REBUILDING THE PUBLIC'S TRUST IN YOUR COMPANY AND YOUR INDUSTRY 10:57:13 WILL TAKE YEARS AND MANY SERIOUS CHANGES IN THE WAY YOU DO 10:57:18 BUSINESS. WHEN YOU OPERATE ON OUR LAND AND 10:57:21 IN OUR WATERS, YOU'RE ONLY THERE BECAUSE THE PUBLIC'S TRUST HAS 10:57:26 ALLOWED YOU TO BE THERE. YOU VIOLATED THAT TRUST IN THE 10:57:29 WORST POSSIBLE WAY. MR. HAYWARD, I LOOK FORWARD TO 10:57:32 YOUR TESTIMONY. I LOOK FORWARD TO ANSWERS TO OUR 10:57:35 QUESTIONS AND YOUR ONGOING EFFORTS TO GAIN AMERICA'S TRUST. 10:57:38 MR. CHAIRMAN, I YIELD BACK. THANK YOU, MR. DOYLE. 10:57:44 MR. GRIFFITH FOR OPENING STATEMENTS. 10:57:46 THREE MINUTES, PLEASE. THANK YOU. 10:57:48 MR. CHAIRMAN AND RANKING MEMBER FOR CALLING THIS IMPORTANT 10:57:52 HEARING TODAY. MR. HAYWARD FOR TAKING TIME TO 10:57:55 COME BEFORE OUR SUBCOMMITTEE TO DISCUSS WHAT HAPPENED ON THE 10:57:58 DEEP WATER HORIZON. I KNOW THAT LIKE US, YOUR NUMBER 10:58:01 ONE PRIORITY IS STOPPING THE FLOW OF OIL. 10:58:06 CONGRESS AND THIS COMMITTEE OWE IT TO THE AMERICAN PEOPLE DO 10:58:09 WHATEVER WE CAN TO AID THE UNIFIED COMMAND IN REACHING THIS 10:58:12 GOAL. THIS IS A TIME FOR ENGINEERING 10:58:14 AND ACTION I HOPE YOU WILL LET US KNOW WHAT WE CAN DO IN 10:58:17 CONGRESS TO BE HELPFUL. THERE ARE STILL MANY QUESTIONS 10:58:19 TO BE ANSWERED ABOUT WHAT HAPPENED ON THE DEEP WATER 10:58:21 HORIZON AND UNFORTUNATELY WE DO KNOW THAT THE DOCUMENTS THAT 10:58:24 WE'RE REVIEWING IT DOES NOT LOOK GOOD. 10:58:28 MY HOPE FOR OUR HEARING TODAY IS THAT WE WILL BE ABLE TO PUT 10:58:31 POLITICAL PUBLIC RELATIONS SHENANIGANS ASIDE AND FOCUS 10:58:35 UNDERSTANDING WHY DECISIONS WERE MADE AND HOW BP AND THE INDUSTRY 10:58:38 CAN ENSURE THAT THEY LEARN FROM THIS INCIDENT SO THAT DRILLING 10:58:42 SAFELY FOR OUR VALUABLE RESOURCES CAN CONTINUE. 10:58:45 AND I MIGHT SAY THIS TO YOU, YOU'RE NEVER AS GOOD AS THEY SAY 10:58:50 YOU ARE OR AS BAD AS THEY SAY YOU ARE. 10:58:52 SO THIS HEARING WILL GO BACK AND FORTH. 10:58:54 THE OTHER THING I'D LIKE TO REMIND THE COMMITTEE IS THAT THE 10:59:00 GREATEST ENVIRONMENTAL DISASTER IN AMERICA HAS BEEN CIGARETTES.
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
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
Gulf Oil Spill Hearing 1100-1200
GULF OIL SPILL The Oversight and Investigations Subcommittee of House Energy and Commerce holds a hearing with Lamar Mckay, President and Chair of BP America Inc., Steve Newman, President and CEO, Transocean ltd., Timothy Probert, of Halliburton and others this part not on disc for the record and speak extemporaneously. This hearing shows what happens when political chants of drill, baby, drill evolve into the tragic reality of spill, baby, spill. And for all of my colleagues on the other side who wish that there were representatives of the administration here today, I would remind them that there was a joint congressional briefing held on May 4th where representatives from Interior, Homeland Security, Coast Guard, Commerce, EPA, Minerals Management Services, NOAA and the National Oceans Services did appear, gave us extensive briefings and were there 11:01:46 to answer questions to every member of Congress who chose to show up at that hearing. Well, probably one of the most profound statements made at that briefing was by Commandant Admiral Thad Allan from the Coast Guard, who gave a tremendous overview of what was going on as part of the federal government's response. And he made this statement in describing what's happening. "This is closer to Apollo 13 than to the Exxon Valdez." And, Mr. Chairman, I think that the fundamental issue of this hearing should be to try to figure out why that's the case because Apollo 13 happened 40 years ago, 240,000 miles away from the Earth with limited resources to try to solve the disaster that was occurring on that mission. That was 10 years into the manned space program. And, Mr. Chairman Waxman, the first submerged oil wells in salt water were drilled under the Santa Barbara channel in California in 1896. So why is this more like Apollo 13 than the Exxon Valdez? Why were we not better prepared to deal with the enormous environmental and safety risks caused by this massive explosion? Secretary Salazar said at that briefing, "This was supposed to be a fail-safe system." Obviously, it was not. And the question for all of us is why not. So as we listen to the witnesses and hear the latest information they have to share with us, these are the questions I want answers to: How did this happen? Why did this happen? Who is responsible? Most importantly, what have we learned? What are we, Congress, going to do and what are we prepared to do to ensure this never happens again? And finally, who will bear the cost? Because despite the assurances we received at that briefing from Secretary Salazar and others that B.P. has made repeated assurances to stand the full cost of this recovery, some of the actions that are taking place in response to this catastrophe would give us the indication otherwise. And that's why as we look at these serious issues, I look forward to the testimony of our witnesses and answering those questions. And I yield back the balance of my time. STUPAK: Thank you, Mr. Braley. Mr. Griffith for an opening statement, please? 11:04:21 GRIFFITH: I'd like to thank the chairman and ranking member for calling this important hearing today and the witnesses for taking time to come before our subcommittee to discuss the deep water Horizon oil spill. Before I begin, I would like to take a moment and offer my sincere condolences to the family and friends of those who lost their lives on the deep water Horizon. Please know that my thoughts and prayers are with you. We cannot achieve energy independence without assuming some risk. Whether it's nuclear, coal, oil or natural gas, the process of harnessing energy is inherently risky. Having said this, it is the role of the federal government and good corporate citizens to minimize this risk while working toward United States energy independence. Blocking future production will not protect America. It will simply cause us to be much more dependent on unfriendly sources of oil. The oil and gas industry employs hundreds of thousands of Americans, many in my home state of Alabama. We must continue to drill and avoid knee-jerk reactions to this accident. The oil and gas industry has a safety record that has been steadily improving over the years. And I have no doubt that what is learned from this incident will be incorporated into the future increase in safety. That being said, we must allow this investigation to go forward and ensure that Congress provide appropriate oversight. It is important to focus on not assuming -- assigning blame based on theories, but to allow the time to pass that is necessary for a thorough investigation. Once investigations are complete, it is vital that we learn lessons from this incident so that we can keep our workers and environment safe while continuing to produce our valuable oil and gas resources. Again, thank you for coming today. And I look forward to your testimony. I yield back the balance of my time, Mr. Chairman. STUPAK: Thank you, Mr. Griffith. Ms. DeGette for an opening statement, please? 11:06:14 DEGETTE: Thank you, Mr. Chairman. As Congress debates the role of a forward-looking energy plan, we're going to need to see what -- what part drilling expansion plays in development of that plan. And we're going to need to see what the causes of this tragic accident were because given the scope of this disaster, we cannot afford to vastly expand offshore drilling in the future if this type of disaster can be expected to occur, even as some on the other side say, on a rare basis. The damage in terms of environment and loss of human life is simply too great. Accidents on this scale raise innumerable questions about what went wrong. And usually, and probably in this case, there's no single answer or single point of blame. But as we attempt to determine the cause in order to prevent such tragedies in the future, two issues stand out in my mind. And the chairman raised both of them. The first one is what role did the cementing job play in the accident. The timing of the accident indicates that the cementing was likely a culprit as the accident occurred soon after the cement was injected into the well. This would not be the first time that cementing has caused problems in the Gulf of Mexico. According to a 2007 study by the Minerals Management Service, nearly half of all blowouts in the Gulf over the last 14 years are due to faulty cementing. In addition, poor cementing has been identified as the cause of the recent 2009 blowout at an offshore oil platform in Australia. Cementing has been a cause for concern in onshore drilling as well with ground water contamination incidents tied to improper cementing in my home state of Colorado and elsewhere. The second issue that this committee needs to probe further is the failure of the blowout preventer. This device is designed to be the fail-safe mechanism that will prevent tragedies such as this spill. Its failure is extremely troubling as it calls into question whether these devices can be trusted to function properly at offshore drilling locations. I know that we won't be able to identify the root cause of the accident today and that the investigation is still in its early stages. But fingerpointing will not solve this problem. It's in the interest of all of the witnesses to get to the bottom of this issue if they want to assure the American people that offshore drilling is a safe practice that we should actually expand farther. Frankly, I watched part of the hearing yesterday as well. And I was dismayed at the parsing of words by all parties yesterday in terms of liability and in terms of willingness to pay for these -- these tremendous costs. And so, I think that those responsible need to step up. They need to bear the costs. And they need to fix this technology because if they don't, we will not have expansion of offshore drilling until this committee and the U.S. Congress can be assured that it can be done in a safe and an environmentally and -- and human -- and in a way to save human life way. Otherwise, it simply won't be part of our plan. And -- and many of us don't object to offshore drilling. We support it where appropriate, but not if it cannot be done safely. Thank you, Mr. Chairman. STUPAK: Thank you, Ms. DeGette. Mr. Latta for an opening statement, please -- three minutes? 11:09:44 LATTA: Thank you, Mr. Chairman, Ranking Member Burgess. First and foremost, I also want to extend my heartfelt condolences to the families of those who have lost loved ones and those who have been injured. I'm also deeply saddened by the destruction caused by the recent oil spill in the Gulf. I want to commend the thousands of dedicated workers, the volunteers, military personnel who are currently in the Gulf responding to the spill to protect the shoreline and wildlife. The cleanup process from this spill will take months, if not years. As the marine board of investigation made up of the Mineral Management Service, MMS, and the Coast Guard convened yesterday to identify the factors leading to the explosion, loss of life, sinking and subsequent oil spill of the deep water Horizon, I look forward to what the investigation will render and what facts and recommendations will come forth. It's my understanding, Mr. Chairman, that over 42,000 wells have been drilled in the Gulf of Mexico since 1979 when the first deep water well was first drilled in the Gulf. Sixty percent of all the wells drilled in the Gulf are now deep water wells. And over 2,200 deep water wells have been drilled. As members of Congress, we must ensure that the United States continues its domestic energy production while also maintaining stringent environmental and safety regulations. We cannot become complacent when it comes to American lives and our natural resources. We need to ensure that the investigation into the deep water Horizon oil spill is thorough and those responsible -- those individuals responsible for this disaster are held accountable. We cannot afford to have a repeat of this kind of a disaster. As has already been noted, it is important to note that the oil and natural gas industry in America plays a vital role to our economy and supplies this country with millions of jobs. Most recent data, according to the American Petroleum Institute study, shows that this industry contributes more than a trillion dollars to the U.S. economy over a year. Industry (ph) now contributes over 229,000 jobs through oil and natural gas industry. And it is also important to note that we maintain these jobs, but we also need to maintain the safety of our hard-working Americans who are employed in this industry. As the ranking member has stated, I, too, would like to have witnesses from the Department of Interior, particularly the MMS and the United States Coast Guard. I hope that any future hearings in this committee on this subject will include government agencies that are at the forefront working on this issue. Finally, Mr. Chairman, I look forward to hearing from today's four witnesses, each of whom represents the company who will play a pivotal role in this investigation. And with that, Mr. Chairman, I yield back. Thank you. STUPAK: Thank you, Mr. Latta. Mr. Doyle for an opening statement, please? 11:12:29 DOYLE: Mr. Chairman, thank you for convening this hearing today. First, let me offer my condolences and prayers to the families and friends of the 11 people on the deep water Horizon rig that tragically lost their lives in the catastrophe three weeks ago. It's -- it's a sad, grave reminder of the level of risk and danger involved in deep water drilling. Economic and environmental concerns aside, we owe it to these families to fully and responsibly investigate what went wrong. After reading the testimony that you've all supplied, one thing seems quite clear. None of you before us today is prepared to accept full responsibility for what happened on April 20th. And though I'm very interested in learning whom is responsible, I don't believe it's the most pressing issue at hand today. Today what is most critical are the health, environmental and economic effects of this oil leak that continues to grow as this well gushes nearly 5,000 barrels of oil into the Gulf each day. And that is a conservative estimate. The unified command has quickly been activated to arrest and mitigate the effects of this oil spill on surrounding communities. Workers and volunteers are setting hundreds of thousands of feet of boom to protect coastlines, releasing massive volumes of disbursants (ph) to break up the oil and even skimming the water's surface to collect the oil. This vast response has been swift by most standards. And I commend each of your companies for its willingness to devote all the necessary resources to this effort. It is troubling, though, that in your eagerness to drill you told the Mineral Management Service in February of 2009 that you could handle a worst-case scenario of 162,000 barrels of oil from an uncontrolled blowout. Now you're dealing with 5,000 barrels a day, and the containment zone hasn't worked. A relief well is far from complete. The blowout preventers can't be activated. And you may need to resort to a jump shot. What I have a hard time understanding is how three weeks after the initial explosion there are not better solutions. By any standard, I think it's safe to say that each of your companies have done quite well over the last year. In fact, a quick review of your profits show that Transocean netted $677 million in profits, Halliburton, $206 million and B.P. rounded out with $6.1 billion in profits. And that's just for the first quarter of this year. DOYLE: With the success of this industry, both financially and in technological developments that allow us to drill 30,000 feet underground, how is it not possible that we haven't developed better technologies to plug a well? I mean, recent news reports explain a maneuver called a jump shot that involves shooting golf balls and rubber tires into a well to try and stop the leak. I had to ask my staff if that was really true or a misprint. I mean, surely with profits of $6.1 billion we can devote greater resources to more advanced technologies than golf balls and tires. I hope our examination here today and in the future months will help us understand how we can allow such high-risk drilling to go on without any sure-fire means for addressing a blowout. I hope that in response to this horrendous accident that you will all devote sizable resources to developing safer technologies and better regulations to protect your workers, our environment, our wildlife, and our domestic energy portfolio. Mr. Chairman, I yield back. STUPAK: Thank you, Mr. Doyle. Mr. Blackburn for an opening statement, please? 11:15:54 BLACKBURN: Thank you, Mr. Chairman. And I do want to welcome our witnesses. And thank you for the preparation you've put into planning to be here with us today. There is no doubt this is a terrible event, and it is one that concerns us. And I represent middle and west Tennessee, but I grew up in the Mississippi coastal plains. And I know very, very well the impact of the oil production industry on those communities and on the livelihood of those citizens. And also, I know how dependent they are on the gulf, also for wetlands and for seafood. And so this is a tragedy, and it does have so many tentacles, and, of course, the loss of life is very sad, and I know that it reaches deep within those families across the gulf. I think that what we -- my focus today -- what I would seek to do is to understand what happened and the cause, and to understand that without any bias. I think that while going on a search for villains can make for compelling TV, it is not going to put us on the path forward that we need, and that needs to be a pathway to sustainable and responsible drilling in the gulf. And we need to look at this, have an honest investigation so that we find opportunities for avoidance that may have been missed both by Washington and by the industry. I think that we also need to focus our attention on cleaning up the current spill, securing other wells until a long-term solution can be found. In this type business, risk cannot be 100 percent managed, and I understand that. And realizing that, I think it is maybe necessary to review contingency plans and to require operators to have prepositioned containment equipment to limit the impacts. Maybe that's something we need to talk about and look at today. This hearing is a first step to address these issues. Members of this panel are going to have questions for the witnesses on the protocols that are followed, the equipment that was used, and on what a proper course of action should be. So, Mr. Chairman, thank you. And to our witnesses, thank you for being here today. STUPAK: Thank you, Ms. Blackburn. Ms. Christensen for an opening statement, please? 11:18:35 CHRISTENSEN: Thank you, Mr. Chairman. And thank you, Chairman Stupak and Ranking Member Burgess, for holding this important hearing to examine the Gulf Coast oil spill disaster situation of grave and far-reaching magnitude which is likely to eclipse the Exxon Valdez spill of 20 years ago. It has been approximately three weeks since the explosion that caused the Gulf Coast oil spill, and many questions remain unanswered. What caused the explosion? Why did several safety mechanisms fail to prove successful? And the billion-dollar question: How can we stop the oil from spewing into the ocean and towards the shore, and how can we do it as soon as possible? I look forward to the testimony this morning, and I thank everyone for coming to yet another hearing. What I'm not anxious to hear is a blame game. There are investigations underway that will answer the questions of what went wrong and who and what was at fault. Someone speaks of collaborative efforts in their testimony, and to my mind, this is a tragic accident, which all companies, operator and contractors, probably share some responsibility, just as they all have a role in the response, clean-up and recovery, as well as and importantly making sure this does not happen again. We need to clarify what we do know, but the important issue now is how to stop the thousands of gallons of oil from continuing to poor out and how best we can work with all federal and private partners in the unified command to do just that. Despite the fact that we can never know anything because of the settlement, there are reports of severe health consequences in those who worked on the Exxon Valdez spill and others. And so I have grave concerns about the health and safety issues for the responders in this one and want to have the assurance that every precaution is being taken to prevent illness and disability in these workers. I'm also concerned about the hundred of other -- hundreds of other oil rigs that are functioning now, some in deep waters. Are we better prepared today to respond to an accident in these than we were on April 20th? What is being done to ensure that we are? And does BP meet what I understand are the higher permitting standards of the U.K. in their operations here in the United States? Of course, like my colleagues, I'm also concerned about the protection and preservation of the fisheries and other shoreline wildlife and the economic impact of those who depend on these resources for our livelihood and, of course, the loss of life. It's my hope that we'll leave this hearing better informed than we came in. I would also like to take this opportunity to express my sincere condolences to the families who lost loved ones in the April 20th tragedy and wish Godspeed to them, the survivors and their families, as they go through their recovery process. Thank you, Mr. Chairman. I yield back the balance of my time. STUPAK: Thank you. Mr. Welch for an opening statement, please, three minutes? 11:21:18 WELCH: Thank you very much, Mr. Chairman. I thank the witnesses for coming. And I, along with my colleagues, want to acknowledge the extraordinary loss of love and lives, of brave and hard-working people who died and perished in this accident. A couple of things. I took the trip to the Gulf Coast with the chairman and ranking member, Mr. Barton, some of my colleagues, Mr. Scalise and Mr. Melancon most significant among them, because they live with the folks whose livelihoods and whose sense of self depends on oil and on fishing. And the heartache that we saw was very powerful. When we flew out over the oil spill, the journey was in a Coast Guard plane that flew low and slow. And traveling out over that magnificent Mississippi Delta and looking down at all the wildlife that we could see, seeing the boats that wanted to be out fishing but couldn't be, going over the Chandeleur Islands, with that pristine white sand, knowing how much that landscape and how that economic livelihood is so cherished by Mr. Scalise's people, Mr. Melancon's people, and then seeing that first ribbon of an oil slick, that metallic blue, ominous sight that we saw a few miles off the Chandeleur Island, and then to see this magnificent blue sea become ink black, and then to get out over the oil site -- or the rig site where those 11 men perished, and to see this cancerous flame-orange glow on the sea that is the combination of the emulsifiers and the oil is just heartbreaking. And, gentlemen, you obviously share the concern about this, but you do have the responsibility. You've been well paid. You know, the head of BP, I think, made about $6 million last year, Mr. Newman, about $5.4 million, Mr. Probert, about $3 million, Mr. Cameron, about $8 million. The folks who are now cleaning up this oil spill -- we've got a picture. Mr. Burgess and I spoke to them. There a couple of women from New Orleans who come out and work for $12 bucks an hour. It's not just golf balls and the other things that people mentioned. It's hard-working people who are coming out, standing in the hot sun, and they'd like a bit of a raise, to tell you the truth. But the other thing that we saw that was so heartbreaking to me is fishermen, and their boats are not filled with fish. They're filled with these booms. And that's what these two women in the earlier picture, they load these boats with booms. And these fishermen are proud. They work incredibly hard. However hard you work, they work harder. And right now, they are in peril. The only thing that's keeping them going is that you're paying them to put booms out to try to keep the oil from the shore and the seabed. But at the end of the day, we know harm is going to be done. And the one question I want conclusively answered is whether BP, who has the ultimate responsibility here, is going to acknowledge specifically and categorically that it will not limit its liability to those fishermen and women in those tourist industries in that Gulf Coast, those people who've protected the environment that you will not stop your obligation at the $75 million limit that was established after Exxon Valdez. If they've been harmed by conduct that you're responsible for, then I want -- and I think all of us want -- an assurance that those fishermen and women, those folks in the tourist industry, and Steve Scalise's, Charlie Melancon's district will be made whole. Thank you, Mr. Chairman. I yield back. STUPAK: Thank you, Mr. Welch. Mr. Green, do you have an opening statement? You can be recognized for three minutes then. Take your time. 11:25:10 GREEN: (OFF-MIKE) Mr. Chairman, for holding the hearing today, and I'd like to welcome our panel. It's certainly under tragic circumstances that we convene here today, and my condolences out to the family who lost their lives in this accident, and also those who are injured. As a member of Congress from East Harris County in Houston, Texas, I have just literally hundreds of people who work offshore, offshore Texas, offshore literally all over the world. And along with our infrastructure, we produce -- still produce oil and natural gas in a very urban-suburban area, but we also have refineries and chemical plants who need that product that's being produced. This hearing today will be the first of many of the subject, and ultimately we'll determine what went wrong on the Deepwater Horizon rig and apply those lessons to reduce the chance of this ever happening again. However, we should continue to focus on stopping the spill and cleaning it up as soon as possible. And I look forward to hearing from our panel about the latest efforts on this front. In the wake of the tragic accident, many people are understandably concerned about the safety and environmental risk associated with offshore drilling, and drilling is certainly not risk- free. Neither is anything else. However, we should be careful not to rush to judgment on the issue on offshore drillings until we learned what went wrong in this particular case. In fact, this is the first major accident in the Gulf of Mexico since 1979. And that's almost 31 years. And we've used a lot of that product that's come out of the Gulf of Mexico to move our country for many years. Like after the Exxon Valdez incident, I anticipate Congress will respond in ways aimed at mitigating a similar accident from ever reoccurring, and I agree that we must take every possible precaution to guard against that happening again. The Energy Information Administration maintains that oil, natural gas, and coal will continue to make up the large majority of U.S. energy use in 2030 and beyond. If we reduce our dependence on foreign oil, we must safely and responsibly explore and produce more domestically and -- which is a very important issue, because unless we want to continue to import, I heard the other day we still import 55 percent of our oil right now from overseas. Canada, Mexico, but they're producing as much as they can. If we don't produce it in the Gulf of Mexico or offshore, then we're going to get it from Venezuela, we're going to get it from parts of the world that we may not have the best relationships with. So that's why we need to get it right and produce it domestically. I look forward to the testimony today. And, again, Mr. Chairman, I thank you for holding a hearing. I yield back my time. STUPAK: Thank you, Mr. Green. Mr. Ross for an opening statement? 11:27:52 ROSS: Thank you, Chairman Stupak, for holding today's hearing to examine the causes of the recent explosion of the Deepwater Horizon rig and the effects of this oil spill on both the Gulf Coast region and our nation's domestic energy policy. We all recognize this tragic event was an accident, and my thoughts and prayers go out to those who lost loved ones in the explosion and to the people along the Gulf Coast who have been adversely affected by this incident in an already tough economy. This accident is a wake-up call for our domestic oil and gas production, and we must take this opportunity to carefully examine our safety standards and protocols in deepwater drilling. America has led the world in technological innovation by putting a man on the moon, sending a robot to Mars, and decoding the human genome. Given all the knowledge and technology at our disposal, it amazes me that we could have an accident of this magnitude in 2010. What's even more concerning is that the companies responsible did not have the foresight to anticipate this accident or have an action plan ready or procedures in place that would have immediately remedied this situation and reduced the harmful consequences before it got out of control. After three weeks of oil still leaking into the gulf, it is clear these procedures were either not in place or did not work effectively. And I am pleased that we are now addressing this issue today in this hearing. However, I want to make it clear that this event does not diminish our need to continue domestic drilling as part of our overall diverse energy policy, but it does remind us of the risk associated and the safety standards that must be adhered to and improved to ensure this never happens again. I believe that now more than ever we should be investing in the most advanced 21st century technologies that will allow us to recover domestic oil and natural gas safely instead -- instead of sending half-a-trillion dollars a year overseas, much of which is ending up in the hands of those who want to harm us. I am hopeful that this tragic event and this hearing can be a learning experience to help us to examine our current policies for drilling offshore and, in the end, help secure America's domestic energy supply for future generations. And with that, Mr. Chairman, I yield back the balance of my time. 11:30:27 STUPAK: Thank you, Mr. Ross. We'll next hear from Ms. Sutton of Ohio for an opening statement. 11:30:38 SUTTON: Thank you, Chairman Stupak. And thank you for holding this very important hearing on the Gulf Coast oil spill. It's been three weeks since the first explosion on the Deepwater Horizon drilling rig -- three weeks, and we're still looking for answers. What caused the explosion? When will the oil leaks be closed? And what long-term impacts will this tragedy have on our families, small businesses, the environment, and local and state governments? The one thing we do know is that the companies involved in this oil well operation have failed. And these companies are pointing the finger at each other. These companies failed to have a plan to deal with this type of incident. The companies failed to implement adequate safety measures, and the companies have failed to find sufficient solutions to contain and mitigate this disaster. And while America waits for a resolution to this disastrous spill, 5,000 barrels of oil, over 200,000 gallons a day continue to pour out of the seabed into the Gulf. The wake of this oil spill is broad and sweeping. Eleven workers died. Seventeen were injured. The Gulf Coast states' economies are crippled. The livelihoods of workers, their families, and the small businesses that rely on the Gulf remain in question. And there is a great possibility that the Gulf Stream could carry this bill around the tip of Florida and to the Atlantic Coast. The ramifications of this disaster pose great questions about safety measures in deep water drilling and the priorities of BP, Halliburton and others. BP has stated that they would do whatever it takes to stop these leaks. But did BP and Transocean do whatever it took to prevent these leaks, this disaster, from occurring? BP and Transocean have been careful to say that the measures they are taking to end the leaks have never really been used before, and one example being the failure of the cofferdam placement over one of the leaks this past weekend, something that had never been attempted at such depths. BP and Transocean have proven that they did not have a response plan sufficient to meet the need in place for a Deepwater well spill. The technology for deepwater drilling has continued to advance through significant investment by oil companies, enabling them to access oil in places once thought impossible. But it is now apparent that the necessary investment to develop safety measures and contingencies for deepwater drilling were not adequately advanced. Safety must be put first, and investment in it must match, if the search for oil and drilling in our waters off of the shore are to continue. I remain troubled by the continuation of hazardous safety practices at BP's facilities, including fines imposed on their refinery in Toledo, Ohio. And while we wait for BP to stop these leaks, which could possibly take months, the future of our families, workers, small businesses and the environment remain at the mercy of the winds of the Gulf, and that is not how it should be. So I look forward to hearing the testimony today. 11:34:00 STUPAK: Thank you, Ms. Sutton. That concludes the opening statement of members of the subcommittee. I would note that members of the full committee who have been here -- Mr. Scalise, Mr. Melancon, Ms. Castor, Mr. Inslee was here, Ms. Capps -- I expect they'll probably stay and -- or come back during questions. I know members will be in and out today. It should also be noted that Congresswoman Sheila Jackson Lee is here from Houston, who's sitting in on today's proceedings. She's welcome to do so. And -- and welcome to the committee. That concludes the opening statement by members of the subcommittee. We have our first panel of witness before us. On our panel we have Mr. Steve Newman, who is president and CEO of Transocean Limited, which owned and operated Deepwater Horizon oil rig and the blowout preventer; Mr. Lamar McKay, who is the chairman and president of BP America, who is a responsible in the Gulf leak; Mr. Tim Probert, who is the president, Global Business Lines, chief health, safety, environmental officer at Halliburton, which did the cementing of the well; and Mr. Jack Moore, who is the director, president and CEO of Cameron International, which manufactured the blowout preventer used by Transocean with the Deepwater Horizon rig. It is the policy of this subcommittee to take all testimony under oath. Please be advised that you have the right under the rules of the House to be advised by counsel during your testimony. Do any of you wish to be represented by counsel? Mr. Newman? Mr. McKay? Mr. Probert? Mr. Moore? The witnesses indicate they do not. So therefore I'm going to ask you to please rise and raise your right hand to take the oath. 11:35:37 ALL EXECUTIVES RISE AND TAKE THE OATH Do you swear or affirm the testimony you're about to give is the truth, the whole truth, and nothing but the truth in the matter pending before this committee? Let the record reflect the witnesses applied in the affirmative. You're each now under oath. We will hear your five-minute opening statement. You may submit a longer statement for the record, and it would be included in the hearing record. Mr. Newman, if you don't mind, we'll start with you, please, if you'd start your opening statement? And thank you for being here. 11:36:06 NEWMAN: Chairman Waxman, Subcommittee Chairman Stupak, Chairman Emeritus, Ranking Members Barton and Burgess, other members of the committee, I want to thank you for the opportunity to speak with you this morning. My name is Stephen Newman, and I am the chief executive officer of Transocean Limited. Transocean is the leading offshore drilling contractor with more than 18,000 employees worldwide. I am a petroleum engineer by training, and I have spent years working with and on drilling rigs. I have been with Transocean for more than 15 years, and I am incredibly proud of the contributions our company has made to the energy industry during that time. Today, however, I said before you with a heavy heart. The last few weeks have been a time of great sadness and reflection for our company and for me personally. Nothing is more important to Transocean and to me than the safety of our crewmembers, and our hearts ache for the widows, parents and children of the 11 crewmembers, including nine Transocean employees, who died in the Deepwater Horizon explosion. These were exceptional man, and we are committed to doing everything we can to help their families as they cope with this tragedy. Over the last few weeks, we have also seen great acts of courage and kindness in our colleagues and in our communities. That courage and kindness was embodied by the 115 crewmembers who were rescued from the Deepwater Horizon and were as concerned about the safety of their colleagues as they were about themselves. It was embodied by the brave men and women of the U.S. Coast Guard, who conducted on-site operation search and rescue operations, and by the medical profession received the injured crewmembers they arrived on shore. And it is embodied by our friends and colleagues at Transocean and across the industry, who have rallied to help the families of the men were lost. This has been a very emotional period for all of us at Transocean, and it has also been a period of intense activity and effort. Immediately after the explosion, Transocean began working with BP and the unified command in the effort to stop the flow of hydrocarbons from the well. Our finest engineers and operational personnel have been working BP to identify and pursue options for stopping the flow as soon as possible. Our drilling rig, the Development Driller 3, is involved in drilling the relief well at the site, and our drill ship, the Discoverer Enterprise, is on location, participating in the crude oil recovery operations. A third Transocean drilling rig, the Development Driller 2, will be on location and the next day or two to also participate in those on-site operations. We will continue to support BP and the unified command in all of these efforts. At the same time we have also been working to get to the bottom of the question to which this committee, Congress and the American public desperately want an answer. What happened on the night of April 20th and how do we assure the American public that it will not happen again? Transocean has assembled an independent investigative team to determine the cause of these tragic events, a team that includes dedicated Transocean and industry experts. They will be interviewing people who have potentially helpful information and studying the operations and the equipment involved. Because the drilling process is a collaborative effort among many different companies, contractors and subcontractors, the process of understanding what led to the April 20th explosion and how to prevent such an accident in the future must also be collaborative. Our team is working side-by-side with others, including BP and governmental agencies, and these investigative efforts will continue until we have satisfactory answers. While it is still too early to know exactly what happened on April 20th, we do have some clues about the cause of the disaster. The most significant clue is that the events occurred after the well construction process was essentially finished. Drilling had been completed on April 17th, and the well had been sealed with casing and cement. For that reason the one thing we do know is that on the evening of April 20th, there was a sudden catastrophic failure of the cement, that casing, or both. Without a failure of one of those elements, the explosion could not have occurred. It is also clear that the drill crew had very little, if any, time to react. The initial indications of trouble and the subsequent explosions were almost simultaneous. What caused that sudden violent failure? Was the well properly designed? Were there problems with the casing or the seal assembly? Was the casing properly cemented and the well effectively sealed? Were all appropriate tests run on the cement and the casing? Were the blowout preventers damaged by the surge that emanated from the well beneath? Did the surge low degree into the BOP that prevented them from squeezing, crushing or shearing the pipe? These are some of the questions that need to be answered in the coming weeks and months. Until we know exactly what happened on April 20th, we cannot determine how best to prevent such tragedies in the future. But regardless of what the investigations uncover, ours is an industry that must put safety first. We must do so for the sake of our employees, for the sake of their families, and for the sake of people all over the world, who use, enjoy and rely on our oceans and waterways for their sustenance. And before I close, let me respond to Representative Burgess' specific question that arose during yesterday's Senate testimony. The modification referred to was the result of an agreement between representatives of BP and Transocean approximately five years ago. It was done at BP's request and at BP's expense. Thank you for the opportunity to speak here today. And I am happy to answer any questions. STUPAK: Thank you, Mr. Newman. Mr. McKay, your opening statement, please? 11:42:48 MCKAY: Chairman Waxman, Chairman Emeritus Dingell... STUPAK: You may want to pull that a little closer. MCKAY: Closer. Chairman Stupak, Ranking Member Burgess, members of the committee, my name is Lamar McKay, and I am president of BP America. We have experienced a tragic series of events. Three weeks ago tonight 11 people were lost in an explosion and fire aboard the Transocean Deepwater Horizon rig, and 17 others were injured. My deepest sympathies go out to the families and friends who have suffered. This is a terrible loss, and there is a huge, enormous issue in the Gulf Coast. Those communities, lives and livelihoods are being affected. Over the last few days, I've seen the response firsthand. I've seen the men -- men and women on the front line. There is absolutely a deep and steadfast resolve to do all we humanly can to stop the leak, contain the spill, clean up the damage, and deal with the -- the impact, economic and environmental. As a responsible party under the Oil Pollution Act, we will carry out our responsibilities to mitigate the environmental and economic impact. And to be very clear, that -- just to be very clear, the 75 million is irrelevant, and we can talk about that later. Our efforts are part of a unified command that was established within hours of the accident, and it provides a structure, a structure for our work with the Department of Homeland Security, Department of Interior, as well as Defense, Energy, OSHA and other federal agencies, as well as affected state and local governments and Transocean. We are grateful for the involvement of President Obama and members of his cabinet and for the leadership, direction and resources they've provided. We're also grateful to the governors, congressional members, state agencies, local agencies, local communities of Mississippi, Alabama, Louisiana, Florida and Texas. I want to underscore that the global resources of BP are committed to this effort and have been from the outset. Nothing is being spared. Everyone understands the enormity of what lies ahead and is working to deliver an effective response at the wellhead, on the water and on the shoreline. MCKAY: Before I -- before I describe our around-the-clock efforts to respond to this series of events, I want to reiterate our commitment to find out what happened. Understanding -- understanding what happened and why it happened is a complex process. We are cooperating with the joint investigation by the Departments of Homeland Security and Interior and investigations by Congress. In addition, B.P. has commissioned an internal investigation whose results we plan to share so we can all learn from these terrible events. I want to be clear, it's inappropriate to draw any conclusions before all the facts are known. As we speak, our investigation team is locating and analyzing data, interviewing available witnesses, and reviewing and assessing evidence. And today I think it's important to give you and the American public an idea of the questions we're asking. There are really two key sets of questions here, and we're actively exploring both of those. First, what caused the explosion and fire onboard Transocean's Deepwater Horizon? Second, why did Transocean's blowout preventer, the key failsafe mechanism, fail to shut in the well and release the rig? With respect to the first question, the key issue we're examining is how hydrocarbons could have entered the wellbore. B.P., as a leaseholder and operator of the well, hired Transocean to drill the well and fulfill their safety responsibilities. We do not know yet precisely what happened on the night of April 20th, but what we do know is that there were anomalous pressure test readings prior to the explosion. These could have raised concerns about well control prior to the operation to replace mud with seawater in the well in preparation for setting the cement plug. Through our investigation, we hope to learn more about what happened and what was done in the hours before the explosion. Apart from looking at the causes of the explosion, we are also examining why the blowout preventer, the BOP as it is called, did not work as the ultimate failsafe to seal the well and prevent an oil spill. Clearly, the BOP remains a critical piece of equipment throughout all operations to ensure well control up until the time the well is sealed and a cement plug is -- is placed and the well is temporarily abandoned. We will continue full-speed ahead with our investigation, keeping all lines of inquiry open until we find out what happened and why. At the same time, we are absolutely fully engaged 24 hours a day, every second of the day, in efforts to respond to these events. Our subsea efforts to stop the flow of oil and secure the well involve four concurrent strategies. Activating the blowout preventer would be the preferred course, since it stops or diminishes the flow at the source. Unfortunately, this has proved unsuccessful so far. We are working on a containment system which will place enclosures or containment chambers atop the leak and conduct flow to a ship at the surface. There have been technical challenges, obviously. Engineers are now working to overcome these challenges. We've begun to drill the first of two relief wells designed to intercept and permanently secure the original well. We began drilling the first relief well on May 2nd and expect to begin drilling the second relief well at the end of this week. This operation could take approximately three months. A fourth effort, known as a top kill, uses a tube to inject a mixture of multi-sized particles directly into the blowout preventer to cap the well. It is a technique that's been used industry-wide across the world, but never in 5,000 feet of water. On the open water, we've got 300 response vessels mobilized, 1 million feet of boom placed, 2.4 million feet sourced, and the supply chain geared up to sustainable boom what areas are necessary. We're also attacking this spill with biodegradable dispersants that were pre-approved by the Coast Guard and the EPA. Those are being applied by planes and boats. We've also developed and tested a technique to apply dispersant at the leak point on the seabed. We've done a 24-hour -- done three tests of that, and we're waiting on the EPA to decide if we can permanently -- or continuously use that dispersant, which we hope we can. To protect the shoreline, we're implementing what the U.S. Coast Guard has called the most massive shoreline protection effort ever mounted in history. Thirteen staging areas are in place, and over 4,000 volunteers have already been trained. We recognize there are both environmental and economic impacts. B.P. will pay all necessary clean-up costs and is committed to paying legitimate claims for other loss and damages caused by the spill. Tragic and unforeseen as the accident was, we must not lose sight of why B.P. and other companies are operating in the offshore, including the Gulf of Mexico. The Gulf provides one in three barrels of oil produced in the United States, a resource our economy requires. B.P. and the entire energy industry are under no illusions about the challenge we face. We know that we will be judged -- we will be judged by our response to this crisis. We intend to do everything in our power to bring this well under control to mitigate the environmental impact of the spill and to address economic claims in a responsible manner. No resource available to this company will be spared. I can assure you that we and the entire oil and gas industry will learn from this terrible event. We will emerge from it stronger, smarter and safer. Thank you for the opportunity to appear before you today. I'd be happy to answer your questions. In addition, as you requested, I brought a technical expert with me, Mike Zanghi, vice president of drilling. And on the modifications, Congressman Burgess, I was referring to yesterday, I need to know if the modifications that we encountered on interventions while this response is going on, were those the only modifications that were made in 2005? STUPAK: Thank you, Mr. McKay. We should note that Ms. Myrick, a member of the full committee, is with us. I'm sure she'll have some questions when we get to the question period. Thanks for joining us. Mr. Probert, your opening statement, please, sir? 11:51:47 PROBERT: Chairman Stupak, Ranking Member Burgess, and members of the subcommittee, thank you for inviting Halliburton to testify. We'll continue to work with you and your staff to collect factual data that will enable an understanding of what took place and what we collectively can do to ensure that domestic oil and gas production is undertaken in the safest, most environmentally responsible manner possible. The catastrophic blowout and the spread of oil in the Gulf of Mexico are tragic events for everyone. On behalf of the entire Halliburton family, we extend our heartfelt sympathy to the families, the friends, and colleagues of the 11 people who lost their lives and those workers who were injured in the tragedy. As we hope you could appreciate, neither Halliburton nor any other party can make a judgment or offer any credible theories about what happened until, at a minimum, the well-owner has interviewed everyone on the Deepwater Horizon, to recreate the daily log of activities for April the 20th. In the absence of that information, no one should rush to judgment. However, there are three things that could be said with certainty: one, that the casing shoe was cemented 20 hours prior to the tragic accident; two, it's premature to say that the root cause of the event was a catastrophic failure of the casing or cement; and, three, had the BOP functioned as expected, this catastrophe would not have happened. With respect to the Mississippi Canyon 252 well, Halliburton and many other companies were contracted by the well-owner to provide products and services. Halliburton provided cementing, mud logging, directional drilling, and real-time data acquisition and data delivery services for key personnel onboard the rig and onshore. However, contrary to press reports, Halliburton did not provide casing, wellheads, or seal assemblies. Since the blowout, Halliburton has been working at the direction of the well-owner to assist in the efforts to bring the well under control. This includes intervention support to help secure the damaged well and assistance in drilling two relief wells. At the outset, I need to emphasize that Halliburton as a service provider to the well-owner is contractually bound to comply with the well-owner's instructions on all matters relating to the performance of all work-related activities. The construction of a deepwater is a complex operation involving the performance of many tasks by many parties. While the well-owner's representative has ultimate authority for planning and approving activities on the rig, the drilling contractor performs and directs much of the daily activity. Cement can be used to isolate formation fluids, to prevent movement of these fluids between formations, and to bond and support the steel casing. There are many external factors which affect the design and execution of a cement job, and these include the variability of the whole geometry, the relative location of hydrocarbon zones, and the hydrocarbon content of associated drilling fluids. The centralizer placement on the production casing, the drilling fluid conditioning program prior to cementing, and the cement slurry and placement design use of this well were implemented as directed by the well-owner. By design, no continuous cement column was installed throughout the entire wellbore. Approximately 20 hours prior to the catastrophic loss of well control, Halliburton had completed the cementing of the ninth and final production casing string in accordance with the well program, which would have been approved by the MMS. Following the placement of the cement slurry, the casing seal assembly was set in the casing hanger. As required by the MMS and as directed by the well-owner, a positive pressure test was then conducted to demonstrate the integrity of the production casing string. The results of the positive tests were reviewed by the well- owner, and the decision was made to proceed with the well program. The next step was the performance of a negative pressure test, conducted by the drilling contractor at the direction of the well- owner and in accordance with MMS requirements. This tests the integrity of the casing seal assembly. We understand that Halliburton was instructed to record drill pipe pressure during this test. After being advised by the drilling contractor that the negative tests had been completed, Halliburton's cementing personnel were placed on standby. We understand that the drilling contractor then replaced the dense drilling fluid in the riser with lighter seawater prior to the planned placement in the final cement plug. The drilling fluid was transferred directly to a workboat. The final cement plug would have been installed inside the production string and enabled the planned temporary abandonment of the well, but prior to reaching that point in the well -- in the well construction plan that Halliburton personnel would have been directed to set the plug, the catastrophic incident occurred. Halliburton's confident that the cementing work on the Mississippi Canyon 252 well was completed in accordance with the requirements of the well-owner's well construction plan. To amplify -- and before closing -- and to amplify respectfully to a comment made earlier by Representative DeGette, the MMS did, indeed, conduct a survey which indicated that cementing was a factor in 18 or 39 well-controlled incidents over an approximately 10-year period in the Gulf of Mexico. I should point out that only one of these incidents occurred in water depths over 400 feet. Thank you for the opportunity to share Halliburton's views. I look forward to answering your questions. STUPAK: Thank you. Mr. Moore, your opening statement, please, sir. 11:57:40 MOORE: Chairman Stupak, Ranking Member Burgess, Chairman Waxman, Chairman Emeritus Dingell, Ranking Member Barton, members of the committee, good morning. I'm Jack Moore, president and CEO of Cameron International Corporation, and I appreciate the opportunity to be here for this hearing on what is truly a tragic event. One word about our company, 18,000 employees in more than 300 locations worldwide. We have worked with our customers for over 120 years to design, manufacture and service products that help them safely find, develop, produce and transport oil and gas. The Cameron product used by the Deepwater Horizon is called a blowout preventer, or a BOP, a product that Cameron actually invented in the 1920s. A BOP allows our customers to control the pressure in a well while being drilled. We have over 400 BOP stacks operating offshore, and over 130 are operating in deep water. Each individual BOP stack is made up of components specified by our customers and is configured to their specific operating specifications and is manufactured and tested in accordance with industry standards. Our BOPs have a very long history of reliable performance, including performance in some of the harshest operating conditions in the world. The BOP stack on the Deepwater Horizon was operating in 5,000 feet of water. As soon as Cameron was notified of the Deepwater Horizon incident, we mobilized a team of our best drilling system specialists to work with B.P. and Transocean to assist in shutting this well in. Since that time, we have been working around the clock to assist in this effort, and we will continue to provide all of the necessary resources at our disposal until this well is shut in. It is far too early to draw conclusions about how the incident occurred, but every one of us at Cameron, myself, and I think this industry is mindful of the tragic loss of life that occurred and likewise the impact to the environment and to the commercial impact that it will have. Cameron and I understand the need to discover the facts relating to what went wrong and to do all that is possible to prevent the occurrence of such an incident in the future. I'm accompanied today by my colleague, David McWhorter, who is our vice president of engineering and quality for our drilling systems group, to be at your disposal for -- for answers. Thank you for letting us be here today. 12:00:29 STUPAK: Thank you, Mr. Moore. It should be noted for -- for members that we asked each of our witnesses to have a technical expert with them to help in answering any technical questions.
BOEHNER WEEKLY NEWSER
House Speaker John Boehner general press conference. SLUGGED: 1115 BOEHNER PRESSER RS51 80 AR: 16X9 DISC# 809 SPEAKER BOEHNER: Good morning, everyone. . 11:24:00 MEMBERS OF THE PRESS CORPS: Good morning SPEAKER BOEHNER: A big focus of the speech that I gave on Monday was about the need to focus on policies that would create real economic growth and robust private sector job creation. That includes fundamental tax reforms, real spending cuts, stopping harmful regulations, more job-creating American energy production and passing the three pending trade agreements to open new markets for American products. Well, last week we saw some positive gains on the job front, which is always welcome news, but we also saw an increase in the unemployment rate. And the American people continue to ask the question: Where are the jobs? And job growth in America is still nowhere near what it should be. Unfortunately, rather than joining with Republicans in focusing on policies that promote long-term economic growth, the Democrats who control Washington want to increase spending and they want to increase taxes. Listen, that's a recipe for more economic uncertainty for private sector job creators, and it won't help families and small business who are struggling to make ends meet. 11:25:02 Earlier this week, I again made clear there'd be no debt increase without meaningful spending cuts and budget reforms. As I said on Monday, the spending cuts should be greater than the accompanying increase in the debt limit. Clearly, we've struck a nerve. And the response from the White House and from Democrats and the left has been panic and hysteria. Now listen, for years Washington's gotten away with kicking the can down the road and dealing with higher deficits without ever facing the realities of government's spending addiction. And while this may be hard for the Washington crowd to accept, those days are over. We're determined to cut spending and change the way Washington spends the American taxpayer's dollar. The American people have overwhelmingly rejected the idea of giving the president a blank check to increase the debt limit, and Republicans are listening to the American people. I think what we and the American people are asking for isn't at all radical. We want to stop the tax hikes that we believe will destroy jobs in our country, and Democrats want to raise taxes. We want to stop Washington from spending money that we don't have; Democrats want a free pass to continue to spend more. 11:26:26 We're in a hole and we've got to stop digging, yet the Democrats won't give up the shovel. I also want to address those who suggest that our efforts to cut spending could somehow hurt our economy or hurt the markets. I believe if we don't act boldly, and act boldly now, the markets will act for us very soon. Remember that Standard & Poor's warned several weeks ago that it may downgrade United States debt if -- and not over the debt limit fight, but because Washington has no plan to deal with our massive debt. And the greatest threat to our economy, to job creation and to our children's future is doing nothing. Doing nothing is not an option. The American people won't tolerate it, and neither will we. 11:27:37 And lastly, this week Republicans took action to address skyrocketing gas prices by passing two bills that increase American energy production and create more American jobs. These bill are part of our American Energy Initiative, and you'll see more bills on the floor in the coming weeks and months. On the other side of the Capitol, Senate Democrats debated a tax hike backed by the White House that some in their own party would admit won't lower gas prices one penny. Now listen, the American people are demanding that Congress take concrete steps to increase the supply of American energy, to lower costs, to reduce our dependence on foreign oil, and to create jobs. Republicans are listening and taking action to provide much-needed relief to families and small businesses who are struggling with high prices at the pump. Q: Mr. Speaker, when you talk about budget reform, can you be a little bit more specific about what you're thinking about? Are you thinking about, say, for example, the Corker-McCaskill idea, the caps on spending that are forced by automatic spending cuts? 11:28:54 SPEAKER BOEHNER: Well, I do think that there are going to have to be budget process reforms. I don't want to tie myself down in terms of what those are. But I don't want phony caps. I don't want phony targets. We know what the challenges are; why don't we go tackle the problems? Q: The White House clearly doesn't consider that a phony target. They seem to be quite afraid of it. SPEAKER BOEHNER: All the gimmicks that have been used in the past have never worked. Congress has found a way to wiggle out of all of them. The only way to do this is the right way, and that's to go in to make real program changes that will put these entitlement programs on a much stronger foundation where they can be preserved for the tens of millions of Americans who count on them. Q: Mr. Speaker, you were in Pakistan a few weeks ago, prior to the UBL raid. Can you characterize in any way -- you've been there bfore -- meeting with the Pakistanis and this sort of bifurcated government they have between, you know, the folks who don't seem to be on the side of the United States and those you're meeting with? Do you get the sense the people who you have met with in the past are on the side of the United States when it comes to these issues of terrorism? SPEAKER BOEHNER: Well, Pakistan is an important ally of the United States. And I believe that we should further our engagement with those in Pakistan because they are an important ally, and frankly, the terrorist threat that we face, they face as well. And let's not forget that the Pakistanis have lost more people in the fight with the terrorists than we have. Having said that, I've got questions about our relationship. And I think it's time to look the Pakistanis in the eye and get a commitment that they are fully on board with us, because it's clear that -- to me that, you know, they've got one foot in our camp and they've got one foot in some other camp. And if we're going to continue to provide aid and strengthen this relationship, I think we need to have a clearer understanding. Q: Mr. Speaker, last month you told ABC News that you thought that oil companies deserved a share of the blame, and as far as cutting oil subsidies, you said that it's something that we should be looking at. They ought to be paying their fair share. The CEOs are over there testifying today. I'm wondering if you'd support the Menendez bill that would return all the money from the subsidies to pay down the deficit. And if not, when will the House Republicans bring a bill to the floor to address this issue? SPEAKER BOEHNER: Listen, we all know that going after oil companies is easy politics. But we also know if this bill were to pass, it wouldn't lower gas prices one penny. 11:31:21 And I believe that as we get into looking at the fundamental reform of the corporate tax code, this and every other issue ought to be considered. Q: Mr. Speaker, some in your caucus say they're restless with the war in Afghanistan. Do you sense that restlessness? And is there anything that you could do here in Washington to mollify that? SPEAKER BOEHNER: Listen, having been involved in a lot of efforts here in Congress regarding military action overseas during my years in Congress, whether it was the first Gulf War, whether it was Serbia and Kosovo, or clearly what -- the length of time we've been in Iraq and Afghanistan, as -- people grow weary, whether it's the American people or, frankly, members of Congress. We have a lot invested in Iraq and in Afghanistan, and this is a time that we really ought to make sure that we take no action that would undermine all the progress that we've made. And I do think that in Iraq there's going to be gaps in their ability to secure their country at the end of the year. I think we ought to continue to work with the Iraqis, find out what those gaps are and to be able to work with them, if they would request our help, in filling those gaps. 11:32:42 And even though we've eliminated Osama bin Laden, let's not forget that there's a -- there's an al-Qaida terrorist network out there with affiliates around the world who are still intent on killing Americans. And I think the work here that we're engaged in in Afghanistan is critically important for the long-term security of the United States, our citizens here and abroad. This is no time to back away from our engagement. Q: Mr. Speaker -- SPEAKER BOEHNER: Yes. Q: -- there's some confusion or question about -- when you talk about trillions of dollars in spending cuts -- say, 2 trillion (dollars) or more -- what period of time you're talking about. Is this over a year or two years? Ten years? And secondly, on the issue of tax expenditures, why shouldn't Congress do away some unnecessary or worthless and wasteful tax expenditures if that can mean reducing the deficit? SPEAKER BOEHNER: Well, I think that looking at tax expenditures in the -- in the confines of an effort to reduce the corporate tax code (sic) are certainly appropriate. Now I think that's the appropriate place to look at this. When it comes to savings in this effort to increase the debt l imit, now I don't -- I think it's a little too early to lock -- I'm not going to lock myself into what kind of time frame, you know, but I clearly believe it's time to bend the cost curve and to get America headed toward a solid fiscal foundation, which we do not see today. And so over the next coming weeks, I'm sure we'll have plenty of opportunities to talk about it. (Cross talk.) Q: Just in terms of -- just in terms of -- getting back to what he asked about tax expenditures, last fall you gave a speech on tax expenditures. You said there was spending through the tax code. Obama's failsafe that you've criticized would cut spending but also go after tax expenditures as well, and you've characterized that as laying the groundwork for a tax increase. So I'm just wondering if you can kind of clarify what is a tax increase in you guys' eyes in terms of -- is it whether rates go up? Is it whether revenues are more than they are in the current policy, or they're more than under current law? What's -- how do you define a tax increase? 11:35:15 SPEAKER BOEHNER: We have the second- -- we have the second- highest corporate tax in the world, and it makes America less competitive than we could be. In a time when people are asking, where are the jobs, we got a number of U.S. manufacturers who've made it clear they're not going to build new plants in the United States because of the tax code and because of the regulatory burden that they face here at home. If we want to put Americans back to work, I think lowering the corporate tax rate is critically important. And to do that, I think that we have to look at the tax expenditure side -- the deductions, credits, and other gimmicks that may be in the tax code that have accumulated over the last 30 years -- as a way of finding a way -- finding which of those are appropriate, which aren't, and using those savings in order to lower the corporate tax rate. We're not interested in raising taxes on the American people. Q: So revenue's -- SPEAKER BOEHNER: And when you start talking about corporate tax rates, understand this: companies don't pay taxes; their customers pay taxes for them, because the people who buy their goods and services are the ones who eventually see those increased taxes in the price of the goods and services they get. STAFF: Last question. Q: Does that mean any revenues -- does that mean any revenues that don't go to lowering rates, that would be considered a tax increase? SPEAKER BOEHNER: I think that we need to look at this in the context of lowering the corporate tax rate. Q: Can revenues go to deficit reduction? STAFF: Last question. Q: You told the president that you would not agree to raising taxes, and you've also said that any spending cuts -- cuts in spending in Congress should be more than the debt limit increase. Are those nonnegotiable positions for you? SPEAKER BOEHNER: Well, let me just say this. I think this is the moment and this is the opportunity for America to get its fiscal house in order. I believe that raising taxes on the very people that we expect to reinvest in our economy and to hire people is the wrong idea. For those people to give that money to the government, that means it won't get reinvested in our economy at a time when we're trying to create jobs. And secondly, if we're going to put America's fiscal house in order, it's time to make real changes to preserve these entitlement programs that are very important. 11:37:27 But having said that, we know they're unaffordable. And if we don't do anything, seniors are going to see cuts. And no one wants to see cuts in these programs. We've got to make real changes to put them on a sound fiscal foundation, and that's my goal as we get into this negotiation. Alan, last one. Q: I'd like to ask, your predecessor heard from the church on abortion. You're hearing from the same sector on different issues -- I understand it, equity. What is your philosophy? You're touching on different parts of the social safety net. Whether it's Medicaid, block grants or unemployment benefits, you seem to be stressing flexibility for the states. What's your philosophy for that flexibility, and also this question of equity that's being -- SPEAKER BOEHNER: I think America has a strong safety net for those who live near the bottom of our economy, and I think that we should. I'm a big believer that, in a country like ours, those who have the opportunity to succeed and do succeed have a responsibility to help those who can't compete. I've always believed this. And like any religion, you'll have some who are a little bit more liberal and some are a bit more conservative. But I believe that the actions that I've taken during my years in Congress uphold the values of my faith. Thank you. Q: Thank you, sir.
United States House of Representatives 1200- 1300
HOUSE FLOOR DEBATE: The House meets for legislative business. Suspensions (3 bills): 1) H. Res. 781 - Congratulating charter schools and their students, parents, teachers, and administrators across the United States for their ongoing contributions to education, and for other purposes (Sponsored by Rep. Porter / Education and the Workforce Committee); 2) H.Con.Res. 359 - Authorizing the use of the Capitol Grounds for the District of Columbia Special Olympics Law Enforcement Torch Run (Sponsored by Rep. Shuster / Transportation and Infrastructure Committee); 3) H.R. 4700 - To provide for the conditional conveyance of any interest retained by the United States in St. Joseph Memorial Hall in St. Joseph, Michigan (Sponsored by Rep. Upton / Transportation and Infrastructure Committee) // H.R. 4975 - Lobbying Accountability and Transparency Act of 2006 Structured Rule) (Sponsored by Rep. Dreier / Judiciary Committee) // H.R. 4954 - SAFE Port Act (Subject to a Rule) (Sponsored by Rep. Lungren / Homeland Security Committee) 12:00:05.7 help to address the problems that every american are feeling at the pump and help to make america more energy independents. i would ask my colleagues for their support and i would urge adoption of h.r. 5253, and i yield back the balance of my 12:00:22.1 time. the speaker pro tempore: the question is will the house suspend the rules and pass the bill h.r. 5253. so many as are in favor say aye. those opposed, no. in the opinion of the chair, 2/3 of those present having voted in the affirmative, the rules are suspended, the -- the 12:00:39.7 gentlelady from new mexico. mrs. wilson: mr. speaker, on that vote, i request the yeas and nays. the speaker pro tempore: the yeas and nays are requested. all those in favor of taking this vote by the yeas and nays will rise and remain standing until counted. 12:00:58.0 a sufficient number having arisen, the yeas and nays are ordered. pursuant to clause 8 of rule 20 and the chair's prior announcement, further proceedings on this question will be postponed. the gentleman from texas. 12:01:11.3 mr. barton: mr. speaker, i move that the house suspend the rules and pass the bill h.r. 5254. the speaker pro tempore: the clerk will report the title of the bill. the clerk: h.r. 5254, a bill to set schedules for the consideration of permits for refineries. the speaker pro tempore: 12:01:27.7 pursuant to house rule, the gentleman from texas, mr. barton, and the gentleman from virginia, mr. boucher, each will control 20 minutes. the chair recognizes the gentleman from texas. mr. barton: mr. speaker, i ask 12:01:42.9 unanimous consent that all members have five legislative days within which to revise and extend their remarks and include any extraneous material on the bill. the speaker pro tempore: without objection. mr. barton: mr. speaker, i yield myself such time as i may consume. mr. speaker, we now take up the second bill today to help 12:01:58.6 improve our energy outlook, h.r. 5254, the refinery permit progression -- process scheduling act. it is a challenge to new developers, especially new 12:02:15.1 market entrants who could offer alternatives to today refineries. the plain fact is our country is losing the ability to refine oil into motor fuel. we're not only importing oil in ever grating quantities, we're importing gasoline by the shipload too. 12:02:29.8 the threat we face today is not only to the price, but also to the supply. if you tried to buy gasoline at one of the stations that have run out of gas lately, you'll remember the gasoline lines of the 1970's. high prices are a hardship, but dry pumps or a disaster. 12:02:46.1 and as i've pointed out earlier today, at the 7-eleven station at glebe road and second street in arlington, virginia, when i went by this morning to get some gasoline, there was no gasoline to be had. my taurus that i'm driving here 12:03:03.6 in washington is now on -- literally on e, and i hope i have enough to get to a station that has some gasoline later this evening when congress recesses for the day. the last american refinery to be built from scratch in this 12:03:20.2 country was over 30 years ago, and i believe it was in louisiana. we have shut down more refineries in the last 30 years than we have refineries in operation today in the united states. 12:03:35.0 most of those are clustered in the gulf coast region, which as we know because of katrina and rita, are in harm's way if hurricanes continue to batter that part of the country. katrina has taught us some very bitter lessons. one was don't put too many of your refinery eggs in one 12:03:52.6 basket. this bill does nothing to dictate new refinery locations. only developers and local and state governments can do that. but it will make certain that the federal government does its part to eliminate some of the needless, in my opinion, 12:04:08.5 bureaucratic delay if somebody wants to build or expand -- build a new refinery or expand an existing refinery. and in my opinion we need to do that. we consume about 21 million barrels of refined product in the united states every day. 12:04:25.7 our refinery capacity located domestically is less than 17 million barrels per day. that's a shortage of four million barrels a day in 12:04:43.9 refinery capacity, in domestic demand from refined oil. are we trying to take a back seat to environmental 12:04:49.5 protection? nothing of the sort. under this bill, while the e.p.a. will be given priority to coordinate and consolidate the permitting processes, we're not backing down on one permit that's required at the state or federal level. 12:05:05.1 the e.p.a. and the department of energy, under this bill, would work together to consolidate and streamline the permitting process so that you could get a decision in a timely fashion. the bill before us would put all agencies responsible for considering permit applications 12:05:20.8 for an oil refinery, a coal-to-liquid refinery, or a biofuel refinery, that they would have to sit down at the same table and hammer out a coordinated action plan of scheduling. they'll put permit applications on parallel tracks and instill 12:05:37.3 focus and teamwork in the process. the schedule will appear in the federal register for all stakeholders to see, and if an agency drags its feet and throws everyone else off schedule, you can go to court, and a court can order to get that particular agency back on 12:05:54.6 track. it can't tell the agency how to rule, but it can require that they meet the schedule that's been agreed to by all the other state and federal agencies that have permitting authority under the current laws. public participation will go on exactly as it has in the past. 12:06:11.0 all the open -- all open records requirements will go on exactly as it has in the past. so we're not shortchanging any environmental protection law under this pending legislation. all we are doing is saying 12:06:25.3 since we have a situation in the united states of america where we use 21 million barrels of refined products every day and we only have refinery capacity for 17 that it's about something that we do something to make it possible to build and expand existing refineries 12:06:41.6 in the united states. it takes a million dollars per thousand barrels of capacity. so we need four million barrels of new refinery capacity. 12:06:56.6 that's somewhere between $40 billion and $60 billion. nobody in their right mind is going to put up that kind of money to expand refinery capacity when it takes as long as 10 years to get the permit just to build or expand the existing refinery. 12:07:11.9 the bill before us today will make it possible to get a decision on the permits. the president has asked that we do it within one year. the bill before us does not set a one-year timetable exactly, but we would hope that the consolidation process and the 12:07:29.5 parallel track process would certainly shorten the tenure permitting wind -- the 10-year permitting window, if we could get it down to one year or 18 months, i think you'd see the day when companies would be announcing new refinery 12:07:46.9 products and lower prices. with that, mr. speaker, i reserve the balance of my time. i would also ask that mr. bass of new hampshire manage the rest of the floor time on the majority side. the speaker pro tempore: without objection. the gentleman from virginia. mr. boucher: thank you very much, mr. speaker. 12:08:02.4 i yield to myself four minutes. the speaker pro tempore: the gentleman is recognized for four minutes. mr. boucher: and mr. speaker, i ask unanimous consent to revise and extend my remarks. the speaker pro tempore: without objection. mr. boucher: mr. speaker, i rise in opposition to this bill and urge its rejection by the house. democrats are more than willing 12:08:17.9 to work with the majority republicans to write legislation which addresses constricted refinery capacity in a proper manner. but on the measure we are debating this morning, we were not consulted. in fact, no hearings have been 12:08:35.0 held on the bill, no markup sessions have been conducted, there has been no consideration whatever of this measure by the house energy and commerce committee, which is the committee of jurisdiction. the bill was not even introduced until late last 12:08:50.7 night or early this morning. if the majority party is willing to work with us, we would make every effort to construct a thoughtful bill that addresses the refinery shortage in a constructive way and bring that bipartisan 12:09:05.7 measure to the floor of the house within a matter of days or, at most, a matter of weeks. i hope the majority republicans will consider and accept our offer. but the bill before us is not constructive. according to testimony that 12:09:21.5 congress received last year, the bill would weaken environmental protections but do virtually nothing to encourage the construction of new gasoline refineries. the bill before us repeals a 12:09:35.0 law requiring the states and the federal government to work together to set deadlines and streamline the process for issuing permits for new refinery construction. that new requirement became law just last august. 12:09:49.0 rather than repeal it now, let's give it a chance to work. the bill before us adds a new layer of federal bureaucracy by creating a federal coordinator to oversee state permitting actions, and states would be mandated to meet a federal 12:10:05.2 schedule for issuing refinery construction permits. states that have legitimate environmental concerns would find their normal review process short-circuited under a mandated federal schedule for permit issuance. 12:10:20.6 and the bill proceeds from a deeply flawed assumption that the reason we have a refinery shortage is burdensome state permitting processes. the real reason we have a refinery shortage is that the companies that own refineries are profiting enormously from 12:10:38.1 the present market structure, including the refinery bottleneck. in essence, they're making more money by refining less gasoline . the real reason we don't have enough refineries is economic interests, not environmental 12:10:55.1 constraints. here's what the oil company c.e.o.'s had to say about the regulations governing the citing of new refineries. last summer the c.e.o. of shell testified to the senate, and i quote, we are not aware of any 12:11:11.1 environmental regulations that have prevented us from expanding refinery capacity or citing a new refinery, end of quote. conoco's c.e.o. testified, and again i quote, at this time, we are not aware of any projects 12:11:28.0 that have been directly prevented as a result of any specific federal or state regulation, end of quote. the record before the congress is clear. it is devoid of any evidence that environmental permitting 12:11:43.3 has delayed or prevented the construction of new refineries. in fact, the record clearly shows that environmental permitting is simply not a problem. and yet, this bill weakens environmental permitting. it's the wrong answer for the problem that we face. 12:12:00.2 let's reject this measure and begin working in a bipartisan fashion this afternoon in order to write a law that will make a genuine difference. if the republicans are willing, democrats pledge our best efforts to work with you to achieve that goal. 12:12:16.8 mr. speaker, i reserve the balance of my time. the speaker pro tempore: the gentleman from new hampshire. mr. bass: mr. speaker, i yield myself four minutes. the speaker pro tempore: the gentleman is recognized for four minutes. mr. bass: mr. speaker, i rise in strong support of the pending legislation, and i urge my colleagues on both sides of the aisle to do likewise. 12:12:32.5 as others have stated, it's clear that refinery capacity has not been able to keep up with demand. although current refiners have been able to ramp up their production sometimes in excess of 100%, which is an interesting mathematical 12:12:47.7 challenge, the fact is that our population has grown, our economy has grown, and the resulting demand for more energy across the board has created a situation which we -- we had a disaster last summer, hurricane katrina, where 12:13:03.0 refiners were clustered in one specific area of the country, they were running at full capacity, they were shut down for a period of time, and we had a short-term crisis which we were able to get over, but it was not easy. historically, utilization has been much lower than it has 12:13:19.9 been for the last 20 or so years, and the reason for that is we really haven't built a new refinery. now, i agree that there are -- that this bill is not going to circumvent any of the 12:13:34.5 procedural hurdles that need to be crossed in order to build a new refinery, but what it does do is something that's, in my opinion at least, innovative and imaginative in that it establishes a coordinator that will help make sure that the process, although not shortened 12:13:52.2 because you're circumventing any regulation, makes this process work co-terminusly rather than successively. nobody will lose their ability to have their voice heard. 12:14:06.6 there will be no part of the process circumvented, but an investor, a developer, a refiner will have the certainty of knowing that there's a master plan in place, there's a federal coordinator, and 12:14:21.7 there's a process that can be more predictable. and i don't see how you can be against a process that uses the current system and all of the 12:14:33.0 hurdles that need to be crossed, but simply makes it run more efficiently. that's all this bill is trying to do. now, there is a provision that allows the president to simply suggest three base closures be identified for possible 12:14:49.8 location, there's no requirement that it be done, and it also contains a provision that allows for the same expedited process to apply to bio refineries as well. as one who comes from new hampshire, we need to develop 12:15:05.3 bio refinery capacity in this country. we're moving away from mtbe as an oxygenate for gasoline. and i have as a high priority project the development of an ethanol refinery from cellulosic fiber, in other 12:15:22.0 words wood products, from somewhere in the northeast. and this process, although not circumventing, as i said before, any particular rule or regulation, will make the process go quicker. . and i understand my colleague's concern about not having enough 12:15:38.2 hears and so forth, but this bill simply speeds up the process, and if you want the process to last as long as possible and not have any new refinery capacity in this country, vote no on this bill. i understand that. but i believe in the process, but i believe that it should be 12:15:53.3 quick and exped yent but fair. with that, mr. speaker, i reserve the balance of my time. the speaker pro tempore: the gentleman virginia. mr. boucher: at this time i'm pleased to yield two minutes to the gentlelady from california, 12:16:11.3 ms. solis. the speaker pro tempore: the gentlelady is recognized for two minutes. ms. solis: today i rise in strong opposition to this bill. it will not increase refinery capacity, it will not bring down the price of gasoline and it will not ensure the united 12:16:27.7 states to refine its own gasoline. the bill is based on a false premise. there's no evidence that refineries are denied needed permits, either for expansion. and chevron's c.e.o. stated and i quote, we're not aware of any 12:16:44.2 projects that have been prevented as a result of any specific federal or state regulation. the truth is that refineries don't want to construct new refineries. the dirty secret is, they're 12:16:57.8 not going to make any money off of that the five largest oil companies reported a record $120 billion in profits in give and three companies made more than $16 billion in the first quarter of 2006. existing law already provides 12:17:14.0 for new permitting assistance. one year ago, in fact, this body passed the energy policy act. title three subsection 8 of the energy policy act allowed states to seek additional assistance from the federal government for permitting when it was needed. 12:17:30.4 yet the legislation before us today repeals this provision and replaces it with the less effective language. last year democrats brought a plan to this floor that would have set our nation on the right course. it would have created a strategic refinery reserve, giving the u.s. government the 12:17:46.4 ability to refine its own oil for use by military and first responders. the strategic refinery reserve would have made that difference, but rather than solve the problem, we're here with a plan that will not increase refinery capacity, will not bring down the price 12:18:01.7 of gas and will not ensure any ability of the united states to refine its own gasoline. i urge my colleagues to reject and give us the opportunity to take this action that will make a difference for our constituents. and i would like to make reference to letters that we 12:18:17.4 will be submitting later from the state air quality program and administrators and other organizations. i yield back the balance of my time. the speaker pro tempore: the gentleman from new hampshire. mr. bass: i ask unanimous 12:18:35.2 consent for support for the pending bill be made part of the record. the speaker pro tempore: without objection. mr. bass: i yield two minute to my friend from new york, mr. bueller. 12:18:51.2 the speaker pro tempore: without objection. mr. bueller: i want to thank him for facilitating staff suggestions. and i think that this bill will not do any harm and it could do some good. while regulations have not prevented oil refinery 12:19:07.5 expansion, and while regulations are not the reason that new refineries have not been built, it can't hurt to streamline the process as long as streamlining is not a euphemism for weakening 12:19:21.7 environmental protections. and in this bill i think that we've hit the right balance. this bill is a far cry from the bill the house debated last 12:19:32.6 fall. some of the commentary i've heard from opponents of the bill on the floor address the old bill. in that bill the department of energy, which isn't even involved in refinery permitting would have been able to impose 12:19:45.8 a schedule on other agencies and states and that schedule was designed to speed the process at all costs. in today's bill, the new bill, the federal government will bring together all the permiddling authorities to agree on a permitting schedule acceptable to all of them, and 12:20:04.8 that schedule must allow for the full substiff and procedural review required by law. in last fall's bill, any legal proceedings were to be biased in favor of the refineries. each going so far as paying 12:20:19.3 their legal costs. in today's bill, while we still create a new cause of action, the federal district court must consider the behavior of all parties, including whether the refiner has been cooperating fully with regulators and then 12:20:36.9 the court can do nothing more than impose a new schedule. this bill explicitly preserves every provision of current environmental law, including the right to bring citizen suits. 12:20:52.3 so i think we've struck the right balance and i urge adoption of this measure. the speaker pro tempore: the gentleman from virginia. mr. boucher: at this time i ask unanimous consent to insert in the record a letter dated may 3, 2006, from the state and territorial air pollution 12:21:11.2 program administrators, joined in that letter by the association of local air pollution control officials. the speaker pro tempore: without objection. mr. boucher: at this time i recognize the gentleman michigan, mr. stupak. mr. stupak: i ask unanimous consent to insert my statement 12:21:28.2 in the record and urge a no-vote on this legislation. the speaker pro tempore: without objection. mr. boucher: at this time i yield three minutes to the gentleman from maine, mr. allen. the speaker pro tempore: the gentleman is recognized for 12:21:42.9 three minute. mr. allen: i rise in opposition of this bill. it's being rushed to the floor with limited debate, no opportunity for amendments, no hearings, no markup. in fact, as of yesterday the bill hadn't even been introduced. this is yet another example of 12:22:00.1 the ready, fire, aim approach that passes for legistating in the republican-controlled house. unfortunately, some communities in this country that are suffering the most right now are caught in the crossfire. they are the communities that are coping with a military base closed through the brac 12:22:18.2 process. this bill resurrects the bad why idea that communities with closed military bases are dumping grounds for refineries. there's nothing, absolutely nothing in existing statutes or regulations that prohibits a 12:22:33.7 local redevelopment authority from developing a closed base into a refinery complex. in fact, for some communities, a refinery may make sense, but that decision should be made by the local community, not by the president or the secretary of 12:22:48.8 defense. proponents of this bill say they aren't forcing an l.r.a. to build a refinery, only to consider one, but under current law the secretary of defense has the final say about a reuse plan, and this bill requires an l.r.a. to put a refinery into 12:23:07.2 the reuse plan. moreover, the secretary has the power to transfer the land at little or no cost if he chooses to do so. so if donald rumsfeld wants to give away a closed military base in your community to exxonmobil to build a refinery, 12:23:24.1 there is nothing your community can do to stop it. nothing. in fact, your community could have been forced to spend its own resources to draw up a plan to build a refinery even if the community didn't want one. 12:23:38.8 the brac process has already punished these communities enough, including the town of brunswick in my district. congress should not add insult to injury by punishing them again. i urge my colleagues to vote against this ill-advised republican refinery bill. 12:23:54.2 and i yield back the balance of my time. the speaker pro tempore: the gentleman from new hampshire. mr. bass: i want to correct the record if i could. to my understanding the bill only allows the president to identify a possible closed 12:24:09.9 military base for refinery location. it's only drawing attention, and it does nothing more than that, and with that i will yield -- yield one minute to my friend from california, mr. 12:24:31.3 hurger. the speaker pro tempore: the gentleman is recognized for one minute. >> i rise in strong support of the streamline the permitting process of oil refineries. my constituents in rural 12:24:43.9 northern california are paying some of the highest gas prices in the nation. red tape is stifling the construction of new and expansive and existing refineries and technology to make refineries cleaner and more efficient. in fact, america has not built 12:25:01.2 a new refinery since the 1970's. i'm reminded today of what president reagan said in 1981, government is not the solution, government is the problem. end of quote. we need to streamline 12:25:16.6 government regulation and start expanding our oil refinery capacity. families and businesses throughout this country have to meet deadlines. the government should have to as well. i urge my colleagues to support this legislation. 12:25:34.7 the speaker pro tempore: the gentleman from virginia. mr. boucher: mr. speaker, at this time i yield two minutes to the distinguished gentleman from california, mr. waxman. the speaker pro tempore: the gentleman is recognized for two 12:25:47.1 minutes. mr. waxman: mr. chairman, the republican leadership has a problem. for six years they have worked to give the big oil companies everything they could want, subsidies, environmental exemptions, loopholes, and paybacks. and the results have been spectacular for the oil 12:26:06.2 companies. exxonmobil just announced a first quarter profits of over $8 billion. they now make more in a single quarter than they used to make in an entire year. they rewarded their c.e.o. with a retirement package totaling 12:26:22.6 nearly $400 million. well, it's a different story for the american people. gasoline prices have doubled, home heating prices have soared, natural gas prices have risen to unprecedented levels, and we are more dependent than ever on imported oil. 12:26:40.5 the republican leadership has a problem. they want desperately to blame state and local governments, to blame environmental requirements for the cost of gasoline. that's the myth they want to create, but the facts are completely different. 12:26:55.8 permits have been readily granted whenever refiners have applied for them. for instance, in hume aarizona, permits have been issued not once but twice for the construction of a new refinery, but the oil industry refuses to 12:27:11.1 actually invest and rebuild it. and recently this project may have been dealt a death blow when the mexican government announced it would not supply the refinery with crude oil. to the extent that there ever was a problem with permitting 12:27:28.4 refineries, the energy secretary has stated that the problem was solved in last year's energy bill. well, the state and territorial air plugs administrators delivered a letter to the house 12:27:41.0 that said this legislation would have the opposite effect that's intended. it would almost surely delay the permitting process. mr. chairman, we need to reject this legislation. it's based on a faulty premise, repeals the law that is said to 12:27:57.3 be successful, and replaces it with an approach that will delay the permitting process. and presumably it does all of this so that we can claim we've done something about gasoline prices. the speaker pro tempore: the gentleman from from new hampshire. 12:28:10.8 mr. bass: mr. speaker, i yield myself 30 seconds to simply say that it's interesting that my friend from california is now taking the same side as exxonmobil who oppose this is bill because they claim there's no need for a new refinery capacity. and i want point out that he 12:28:26.7 makes a great argument for the passage of this bill because this bill takes the argument that the government red tape and bureaucracy is holding up the process completely off the table. and if that doesn't lead to more production, more construction for passage of 12:28:42.3 this bill, i'll be the first to step forward and blast the industry for not creating more capacity. so i appreciate the apparent support that my friend from california has to making sure that this process, this permitting process is sped up, 12:28:57.4 and with that i yield -- i yield three minutes to my friend from illinois, mr. shimkus. the speaker pro tempore: the gentleman is recognized for three minutes. mr. shimkus: thank you, mr. speaker. i appreciate, mr. bass, your time. 12:29:13.1 and good new, i just heard from champion laboratories that make fuel filters that they're closing their mexico plant and adding 100 jobs back in new district in developing the line. so the economy is moving forward and that's good news 12:29:27.6 and sometimes we don't hear that. a lot of the focus on this debate is on crude oil and gas. and the fact that we import refined product, the fact that we import gasoline and not just crude oil should make us all concerned. 12:29:42.7 and that's really the premise of this debate. two years ago chairman alan greenspan stated at the economic club in new york that, he stated that, you know, we don't have any refineries, not just in the united states, but we don't have expanded refinery capacity in the world. 12:30:00.3 especially as we're making fuel products. and i have a quote right here, but for time i'll save that. but i want to focus on another provision of this bill. if you don't like big oil, support this bill. . if you don't like big oil, if 12:30:17.5 you have -- you want a competitor to crude oil gasoline, support this bill. why? because the incentives to increase the refinery capacity will also apply to biofuels. 29 new ethanol facilities are in illinois. 12:30:32.4 i drive an e-85 flexible fuel vehicle. 10 to 15 cents less a gallon. and two years ago, i did not have a single retail location in my district when i had a flexible fuel vehicle, a ford taurus. 12:30:50.2 now i have over 20 retail locations. that's good. and if we want to incentivize new competitors to big oil, we need new bio refineries that's in this bill. so all my ag friends need to look at this bill. 12:31:11.1 secondly, and i have here in this chamber my friends from the coal basin. another great way to defeat big oil is to get the rebirth of big coal. and b.t.u. conversion, taking our coal fields -- can you imagine this, a coal mine in 12:31:28.4 virginia, west virginia, kentucky, ohio, illinois, and on top of that coal mine, you put a refinery. look at all the issues that we address. no longer dependent on foreign crude oil, no longer having refineries on the coast where 12:31:43.6 they're subject to damage and destruction through hurricanes, diversified fuel refineries across this country, that's in this bill. so for all my friends who want to beat up on big oil, this is your opportunity to do this, to 12:32:01.4 incentivize renewable fuels, to incentivize coal to liquid. this is your opportunity. we'll get a chance to count the votes later on. i appreciate mr. bass and his time. and i yield back. the speaker pro tempore: the 12:32:14.0 gentleman from virginia. mr. boucher: mr. speaker, i yield to myself 15 seconds. the speaker pro tempore: the gentleman is recognized. mr. boucher: mr. speaker, i applaud the sentiments of my friend from illinois, with whom i've partnered on many coal-related issues over the years. and i certainly agree with him that we need to start building refineries that will turn coal 12:32:31.6 into a liquid fuel, but, mr. speaker, we don't need this bill to do it. and, mr. speaker, i yield two minutes to the gentlewoman from california, mrs. capps. the speaker pro tempore: the gentlelady is recognized for two minutes. 12:32:46.5 mrs. capps: i thank my colleague. thank you, mr. speaker. i rise in strong opposition to this ill-conceived legislation. nothing more than the shameless attempt to blame public health and environmental protections for the shortage of refinery capacity and high gas prices. first of all, public health and environmental laws are not impeding construction or 12:33:02.9 expansion of refineries. my colleague, mr. boucher, already quoted the c.e.o. for shell saying on record that he's not aware of any environmental regulations preventing us from expanding refinery capacity or citing a new refinery. 12:33:17.5 also, this bill will do nothing to lower gas prices in the short term or the long term. what it will do, however, is lead to increased pollution at the expense of public health, and that's why both state and local officials, air pollution control officials oppose this 12:33:33.4 bill. and i have here the letter which i know is being submitted to the record, state and territorial air pollution program administrators, the association of local air pollution control officials sent this letter in strong opposition to this bill. specifically, they say the 12:33:49.6 bill's new federal coordinator position is certain to lead to more, not less, delay in permitting. mr. speaker, the problem of high gas prices is serious. it affects businesses and families on a daily basis. i know that well because some of -- not on my time, i can't 12:34:09.1 -- mr. bass: the date of the letter? mrs. capps: the date of the letter, may 3, 2006. i know that, because gas prices in my district are usually the highest in the nation, and right now they're way over $3 a 12:34:22.5 gallon. but this bill doesn't do anything about that. it is, in fact, trying to 12:34:27.8 distract the american people from a failed republican energy strategy, a strategy that says if laws that protect public health or environment get in the way, then we should just waive them. this is a strategy that dooms america to never ending energy crises that consistently enrich 12:34:43.3 energy companies at the expense of hard-working american families and businesses and now their health. over the past several years we've had repeated chances to craft commonsense, effective energy legislation setting 12:34:57.0 america on a more stable future, but this republican congress has failed to do that. this failure has resulted in this bill. we should vote this harmful legislation down. i yield back. the speaker pro tempore: the gentleman from new hampshire. mr. bass: mr. speaker, how much time remains? 12:35:13.8 the speaker pro tempore: 3 1/2 minutes. mr. bass: and the other side? the speaker pro tempore: 7 1/2 over here. mr. bass: with that, mr. speaker, i yield one minute to my friend from illinois, mr. kirk. the speaker pro tempore: the 12:35:29.0 gentleman is recognized for one minute. mr. kirk: mr. chairman, i rise in support of this bill because it addresses one key problem, that the united states has not built a new refinery in america since the 1976 bicentennial, 30 12:35:47.3 years ago. over 50 million americans have moved to our country since then, but no new refineries. we can expand gas supplies and lower prices at the pump while strengthening our environmental 12:36:00.6 law through this legislation. and who doubts that we cannot make new refineries be cleaner than old refineries? this bill stands for the principle that we should simply coordinate our laws. written in different decades by 12:36:17.0 different congresses to yield environmental protection and more gasoline at the pumps. the population of the united states is expanding, so should our ability to provide gasoline to americans. we should do so not at the expense of the environment, and 12:36:36.3 this bill does not modify those statutes. it simply says the various federal bureaucracies should all be coordinated in one place. it makes common sense and helps us reduce pressure at the pump. i yield back. the speaker pro tempore: the 12:36:51.4 gentleman from virginia. mr. boucher: mr. speaker, at this time i'm pleased to yield three minutes to the gentleman from new jersey, mr. pascrell. the speaker pro tempore: the gentleman is recognized for three minutes. mr. pascrell: thank you, mr. chairman. mr. chairman, a recent general accounting office investigation 12:37:11.3 in 2004, which i'm holding in my hand, concluded that gasoline refineries have intentionally limited their capacity to keep gasoline prices high and their profits up. 12:37:25.5 you didn't write this. i didn't write this. this is the general accounting office. for the consumers, these higher energy costs are a disaster for their pocketbooks and further stagnates our economy. 12:37:42.0 now, there's a difference here between what your side approaching the problem will do and what our side. question -- who's going in the right direction? 12:37:57.5 we've heard that a lot lately. former energy secretary, bill richardson, said that we are a 21st century superpower with a third world transmission grid. remember that debate a few years ago on utilities and electricity. 12:38:13.8 and who got blamed for it? and then we finally discovered that the industry itself was fooling the market and manipulating the market, and those character are on trial right now. 21st century superpower with a 12:38:31.5 third world refinery infrastructure, and that's what we've come to. this refinery legislation, which i will vote against, which is before us right now, is an effort to solidify our dependence on fossil fuel. 12:38:47.2 on one side of our mouth, we're saying we're addicted to oil. on the other side of our mouth, we're saying let's build more refineries, make it easier for more refineries to be built so that we can produce more gasoline. you want to streamline the permitting because you want to 12:39:03.1 produce more gasoline from fossil fuel. i must remind you that in a report presented by the rocky mountain institute in 2004, it was very specific, america's energy future is a choice, not 12:39:19.5 our fate. oil dependence is a problem with needn't have, and it's 12:39:27.2 cheaper not to. when the united states last paid attention to the oil efficiency problem, it was between 1977 and 1985. oil use fell 17%, gross product went up 27%. 12:39:40.3 during those eight years, oil imports fell 50% and imports for the persian gulf fell by 87%. that exercise of market muscle broke opec's pricing power for a decade. 12:39:55.5 look, the other side, in all due respect, you made your bed, you got to lay in it now, and you're trying to get out of it but you're doing it in the wrong way. this bill does nothing to increase refinery capacity in the first place, and it 12:40:10.9 certainly doesn't help lower gas prices. we've done a disservice to the american people, and we only confuse the issue. we either are addicted to oil or we're not. and if we are, let's go in a different direction. please join us. thank you, mr. speaker. the speaker pro tempore: the 12:40:28.0 gentleman from new hampshire. mr. bass: mr. speaker, i yield myself 30 seconds just to say this is a very odd debate. one of the previous speakers said that this bill could do nothing to lower gasoline prices. if you increase refinery production, you're going to 12:40:43.3 have more supply, and obviously, more supply is going to lead to lower prices. another speaker said that this bill would somehow create more environmental pollution. the only -- it does absolutely nothing to change any existing environmental rule or 12:40:59.3 regulation. it just increases the time. so if you want less supply, higher prices, and the only reason you're against that is because you think that an additional refinery would create more pollution, then you should vote no on the bill. i believe, mr. speaker, that i have the right to close. 12:41:15.4 i have no further speakers, so i reserve the balance of my time. the speaker pro tempore: the gentleman from virginia. mr. boucher: mr. speaker, at this time, i yield to myself the balance of our time. the speaker pro tempore: the gentleman is recognized. mr. boucher: mr. speaker, this bill is not an effective way to address the gasoline refinery 12:41:32.7 shortage. it tramples on state environmental laws without solving the fundamental problem . the c.e.o.'s of the refining companies have testified to the congress that the permitting process is not burdensome. it has not prevented the 12:41:49.0 construction of needed new refineries, and yet this bill addresses the permitting process. for our part, democrats are more than willing to work with our republican colleagues and do so on a bipartisan basis to write a law that will make a 12:42:06.2 difference, a law that will get the needed new refineries built. we could produce and bring to the floor a bipartisan bill within a matter of days or at most, within a matter of weeks. and so what i would say to the 12:42:21.9 members of the house is reject this measure and then beginning this afternoon, let's sit down in a bipartisan exercise to draft a bill that addresses the fundamental need for new refineries. we pledge to you our best efforts to achieve that goal, 12:42:37.5 and we hope that you'll accept this offer. thank you, mr. speaker. i yield back the balance of my time and urge a no vote on the measure. the speaker pro tempore: the gentleman from new hampshire. mr. bass: mr. speaker, i urge my colleagues to support the passage of this bill. 12:42:54.3 i will match my environmental record in this congress with anybody else's, and certainly my record in supporting the development of alternative energy resources. and quite frankly, this bill does just that, because the 12:43:10.3 expedited permitting process which does not in any way change the requirements for the process at all, but simply makes it more organized and more manageable also applies to coal to liquid and bio refineries, and this is 12:43:25.3 critical for my part of the country. we can't afford to wait five, six, seven, eight, nine, 10 years to increase our supplies not only of traditional motor fuels, but also these alternatives. we need to remove the uncertainty that a successive 12:43:44.8 permitting process creates and the chilling effect that it has on the ability of investors where large amounts of money are involved to stick with the process year after year after year after year. there is nothing in this bill that will reduce in any fashion the ability of the 12:44:01.6 environmental protection agency, the states, or any other entity to go through the appropriate process in order to permit a new refinery. but what it does do is for the first time in 30 years, make it incrementally more possible 12:44:16.8 that we'll get more capacity. so when your constituents call you and say that they're unhappy with the high cost of 12:44:25.0 fuel, remember that part of that high cost is associated with the fact that we have a very, very tight inventory of fuel in this country. as the chairman of the committee said a few minutes ago, we are consuming considerably more gasoline in this country than we're producing domestically, so some 12:44:40.1 of it is imported. our refineries are clustered in one region of the country. and if you want to answer your constituents by saying that you voted against a bill that would not have any environmental impact, but would simply make it possible for us to address this issue in a more timely, 12:44:56.4 quicker fashion, that's your choice. but we're doing what we can quickly and expeditiously and incrementally to address the issue of refinery capacity in this country. and i hope the house will adopt this bill, and i urge its passage. 12:45:10.9 i yield back the balance of my time. . the speaker pro tempore: the question is, will the house suspend the rules and pass the bill. so many as are in favor, aye. those opposed, no. in the opinion of the chair, 12:45:31.5 2/3 of those presented having voted in the affirmative, the rules are suspended -- mr. boucher: mr. speaker. the speaker pro tempore: the gentleman from from virginia. mr. boucher: on that i "yeas and nays. the speaker pro tempore: the yeas and nays are requested. 12:45:47.4 a sufficient number having arisen the yeas and nays are order pursuant to clause 8 of rule 20 in the chair's prior announcement further proceedings on this question will be postponed. 12:46:01.1 12:46:30.0 the speaker pro tempore: for what purpose does the gentleman from georgia rise. >> mr. speaker i move that the 12:46:35.4 house suspend the rules and pass house concurrent regulation 99 the speaker pro tempore: the clerk will report the title of the concurrent resolution. the clerk: concurrent resolution expressing the need for enhanced public awareness of traumatic brain injury in 12:46:51.5 support for the designation of a national brain injury awareness month. the speaker pro tempore: pursuant to the rule the gentleman from georgia, mr. deal, and the gentleman from ohio, mr. brown, each will control 20 minutes. the chair recognizes the gentleman georgia. 12:47:10.8 >> i ask that all legislative members have five days to extend their remarks on this legislation and to exeffort extraneous material on the bill. the speaker pro tempore: 12:47:24.7 without objection. >> mr. speaker, i rise today to -- in support of h.con res 99, a resolution expressing the need for enhanced awareness of traumatic brain injury and support for designation of a national brain injury awareness 12:47:41.6 month. i. to thank the sponsors of this legislation, congressman bill pascrell from new jersey, and congressman todd platts from pennsylvania, who are the co-chairs of the brain injury task force and i commend them for their leadership and hard work to increase the level of public awareness of this silent 12:47:59.6 epidemic of traumatic brain injury. despite the fact that each year an estimated 1.4 million americans have a traumatic brain injury, and permanently altering the lives of countless people, too few people are 12:48:15.2 aware of the dangers posed by these highly preventable injuries. to help address this problem house concurrent resolution 99 resolves that congress, one, recognizes the life altering impact traumatic brain injury may have both on americans 12:48:32.4 living with the resulting disabilities and on their families. two, recognizes the need for enhanced public awareness of traumatic brain injury. three, supports the designation of an appropriate month as national brain injury awareness month, and four, encourages the 12:48:48.1 president to issue a proclamation designating such a month. again, i commend mr. pascrell and mr. platts for their leadership on this issue and i encourage my colleagues to adopt the resolution and i would reserve the balance of my time. 12:49:02.8 the speaker pro tempore: the gentleman from ohio, mr. brown. mr. brown: thank you, mr. speaker. the centers for disease control, i yield myself as much time as i may consume. the speaker pro tempore: without objection. mr. brown: the centers for disease control and prevention estimates that there's over four million, five million 12:49:21.4 americans living with 12:49:23.8 disabilities resulting from traumatic brain injury. and in 1996, congress recognized the severity of brain injuries bypassing the traumatic brain injury act legislation that enhances 12:49:38.9 research and community living for people living with these injuries and for their families. but there's more to be done. every 21 seconds someone in our country sustains a traumatic brain injury. while half of these injuries result in only short-term disabilities, for others they 12:49:55.0 are far more serious. half a million of these americans die, including 2,800 children, less than 14 years of age. another 80,000 americans sustain severe long-term disabilities costing our health care system something in the 12:50:11.8 vicinity of $56 billion a year. but many of those disabilities are preventable. the problem is that most americans don't know when to classify an injury as a traumatic injury. they may not know on to recognize the signs of a serious injury which can be as 12:50:27.7 simple as recurring headaches or feeling tired or having difficulty concentrating. they don't know to get themselves to a medical professional before there's permanent damage, just because it feels like a bump in the head, you have to be aware of how you're feeling and acting. 12:50:44.4 your family and friends need to recognize the signals that something is wrong. this is particularly important for children who are less likelyly to recognize when they need to see a doctor. concurrent resolution 99 by my friend mr. pascrell and others 12:51:00.2 will help to increase america's awareness about the seriousness of traumatic brain injuries and the importance of getting checked out by health care professional after injury. to help meet that goal, this resolution supports the creation of a national brain injury awareness month, an event around which advocates 12:51:17.3 and providers can organize to educate the public and bring needed attention to this issue. i am pleased to support the resolution and i reserve the balance of my time, mr. speaker. the speaker pro tempore: the gentleman from georgia, mr. deal. mr. deal: i have no further requests for time and would 12:51:33.4 reserve the balance of my time. the speaker pro tempore: the gentleman from ohio. mr. brown: mr. speaker, i yield three minutes to the gentleman from new jersey who sponsored this resolution, mr. pascrell. the speaker pro tempore: the 12:51:49.0 gentleman is recognized for three minutes. mr. pascrell: thank you, mr. chairman. my good friend from georgia, i thank you for bringing this to the floor and ranking member. i rise today mr. chairman, in support of house concurrent resolution 99, legislation 12:52:07.7 designed to bring attention to what i would call an american tragedy. a stealthy thief who can strike anyone at any time. without warning, and often with devastating consequences. 12:52:24.8 traumatic brain injury, t.b.i., is a leading cause of death and disability among young americans in the united states. as you've just heard someone will sustain a traumatic brain 12:52:40.2 injury every 21 seconds. we are talking about 1 1/2 million americans every year. more than 1.4 million sustain brain injuries, more than the incidents of h.i.v./aids, 12:52:55.8 spinal cord injury, even multiple sclerosis. 50,000 of those injured will die. 55 americans are living with t.b.i. right now. think about that, mr. chairman. these injuries manifest 12:53:11.5 themselves in a myriad of ways. from a small behavioral change to complete physical disability and even death. traumatic brain injury cost the country an estimated societyal cost of $60 billion every year, 12:53:28.9 and currently there is no cure. most of these injuries are due to falls, motor vehicle traffic crashes, violence. additionally due to the 12:53:42.0 changing nature of warfare american troops were suffering t.b.i. at an alarming rate. individuals with t.b.i. account for 2% of the total united states population. and represent nearly 10% of our 12:54:00.5 nation's disability population. 10%. yet despite these staggering statistics, lack of public awareness is so vast that t.b.i. remains a silent epidemic plaguing our nation. 12:54:15.2 the good news is that traumatic brain injury is often preventable. that is why awareness, 12:54:24.4 education are imperative. the resolution before the house today, mr. chairman, to designate a national brain injury awareness month will work toward enhancing public awareness, give this epidemic and its victims a voice. 12:54:38.5 former congressman jim greenwood from pennsylvania and i performed a congressional -- formed the congressional brain injury task force in 2001. today that task force which i 12:54:52.6 chair with my good friend congressman platts from pennsylvania -- the speaker pro tempore: the gentleman is recognized for two minutes. mr. pascrell: works to further awareness of brain injury, its 12:55:09.8 incidence, its prevalence, its prevention and treatment. the task force also supports funding for basic and applied research on brain injury rehab and the development of a cure. it's my hope that this 12:55:25.2 resolution will encourage americans to learn more about the long-lasting effects of brain injury and its impact on the civilian and the military communities. the traumatic brain injury act is the only legislation that specifically addresses issues 12:55:40.0 faced by people who live with long-term disability as a result of traumatic brain injury. it's successfully provided a foundation for coordinated and balanced public policy for people living with t.b.i. and their circles of support. 12:55:56.0 this law is due to be re-authorized and i look forward to continued congressional support to make it happen. and another important federal program, mr. chairman, is focused on t.b.i., traumatic brain injury, is the defense and veterans brain injury 12:56:11.8 center. our armed services, for our armed forces t.b.i. is an important clinical problem in peace and war and the consequences may stem for many years. the defense and veterans brain injury center was established 12:56:27.2 in 1992 after operation desert storm. millwood military doctors are naming traumatic brain injury as a result of a blast, the signature wound of the war in iraq. because soldiers are now 12:56:42.4 equipped with the state-of-the-art body armor they are living through attacks that troops in past wars were unable to survive. systemwide, the they have evaluated 1,400 military personnel with t.b.i. 12:56:59.6 the troops evacuated to walter reed medical center, of those troops, 28% had traumatic brain injury. these combat medics and surgeons and general medical 12:57:15.5 officers -- just 30 seconds, please. and reserve the recognition and best practices of t. bimplet care and provides continuity of care to the battlefield and back to active duty or civilian 12:57:33.5 life. continued congressional support is vital. traumatic brain injury is a unique issue, an epidemic so past that it's almost overwhelming and so personal it defies definition. 12:57:50.8 passage of this resolution will confirm our commitment to awareness and prevention and research. i encourage my colleagues to vote in favor of this concurrent resolution 99, to designate a national brain injury awareness month in 12:58:06.5 support of our common goal, eradication of traumatic brain injury as a debilitating and costly and plague on human kind. i would like to say in conclusion, mr. chairman, that what happens in the past five 12:58:21.0 or six years has given us hope in developing that part of the brain which has not been injured to compensate for that part which has been injured. we are truly living in great times, and i thank you for your courtesy and i thank the ranking member and i thank the 12:58:37.6 chairman. the speaker pro tempore: the gentleman from ohio. mr. kucinich: i have no further speakers. i yield back the balance of my time. the speaker pro tempore: the 12:58:51.5 gentleman from georgia. >> i urge the adoption of the resolution. the speaker pro tempore: the question is, will the house suspend the rules and agree to house concurrent resolution 99. so many as in favor say aye. those opposed, no. in the opinion of the chair, 12:59:09.6 2/3 of those presented having voted in the affirmative, the rules are suspended, the concurrent resolution is agreed to and without objection the motion to reconsider is laid on the table. 12:59:22.2 the gentleman from from georgia. >> i move that the house suspend the rules and pass house resolution 245 with an amendment. the speaker pro tempore: the clerk will report the title of the resolution. the clerk: house resolution 12:59:34.4 245, resolution supporting the goals and ideas of national nurses week. the speaker pro tempore: pursubte to the rule the gentleman from georgia, mr. deal, and the gentleman from ohio, mr. brown, each control 20 minutes. the chair recognizes the gentleman georgia. 12:59:51.2 mr. deal: i ask unanimous consent that all members may have five legislative days in which to revise and extend my remarks on this lugs and insert extraneous material on the bill. the speaker pro tempore: without objection. mr. deal: mr. speaker, i yield myself as much time as i may
WHITE HOUSE BRIEFING
White House Briefing with Press Secretary Robert Gibbs Q (Off mike.) MR. GIBBS: Yeah, come on. It's, like, 90 today, isn't? Q Not here. Q (Off mike) -- what it is. MR. GIBBS: It's what? Q (Off mike) -- late. (Laughter.) Q (Off mike.) MR. GIBBS: Well, that's not a -- that's not anything new, though. 13:38:25 Let me do one scheduling announcement. Tomorrow the president will meet with small-business owners and workers here at the White House and have remarks in the Rose Garden about our small-business jobs initiative. The president put forth a series of proposals to help small businesses grow and hire. And he'll continue to urge Congress to act on these proposals that are essential to strengthening our economy and getting Americans back to work. This was obviously one of the big topics that the president talked to bipartisan leaders about just an hour or so ago. Yes, sir. Q Robert, with the steady talk from the Hill and the White House on BP doing more to fully compensate Gulf victims, including picking up the salaries of laid-off rig workers of other companies, the stock keeps going down and down and down. BP has now lost about half of its value from when the spill began. Is the administration at all concerned that the company may not be financially able to pay these costs and you may drive it into bankruptcy? MR. GIBBS: Well, look, let me -- I don't want to get into commenting on stock prices. 13:39:29 I will say, our approach on this has been the same from the beginning. We are there to ensure that BP is doing everything that it has to do as the responsible party in this disaster, whether that is paying for, as the law stipulates, paying for the response, paying for the environmental damages and the recovery, and paying the claims of those that -- whose economic livelihood and well-being has also been damaged by this spill. And we will -- we will ensure that the taxpayers do not, but the responsible party does, pay the costs of what has transpired from this disaster. Q Does the president think that BP should stop paying dividends? Speaker Pelosi sort of suggested that just a few minutes ago. MR. GIBBS: Well -- and the president commented on this on Friday in the -- in the meeting with the -- with the governors of the Gulf. And I think -- look, I'm -- we'll stay out of their legal obligations to shareholders and simply reiterate what the president said, and that is, if you've got the wherewithal to pay a dividend, and if you've got the wherewithal to finance a fairly expensive ad campaign, then you sure -- certainly shouldn't, as the president has said, nickel-and- dime anybody in the Gulf that is seeing, as I said earlier, their livelihoods damaged as a result of this disaster. And -- Q The CEO -- the CEO of BP, Tony Hayward, is going to be in town next week to testify. MR. GIBBS: Yes. Q Is the White House considering -- inviting him to meet with the president? 13:41:12 MR. GIBBS: Well, Tom, as I said yesterday, the -- while Mr. Hayward has certainly been -- is part of that ad campaign, in the corporate structure the relevant person is going to be the chairman of the board. And certainly we would -- we have -- as I expressed yesterday, whether it's on claims, whether it's on vessel redundancy and directives, there certainly continue to be concerns. And if there's -- I certainly wouldn't rule out that the president might see the chairman of the board at some point. Q But not Tony. MR. GIBBS: Again if there are other people that are relevant to that, that's fine. Again the corporate structure -- the corporate structure of the company makes the chairman of the board the relevant entity, in approving what BP -- the obligations that BP has to live up to. (Cross talk.) Q And the way it works is -- MR. GIBBS: Well, we'll see. Q So you're no more inclined to see him today than you were yesterday. MR. GIBBS: No, I wouldn't rule out a meeting with relevant BP officials. Q (Off mike) -- on their own, without getting approval from the board. MR. GIBBS: Well, again this is -- this is -- right, but we're not talking about printing new stationery, Chip. We're talking about -- Q They do a lot more than print new stationery. MR. GIBBS: I understand. Q The CEO does the day-to-day management. MR. GIBBS: But we're talking about -- I just got asked about the financial survival of the company. That's the -- Q But why wouldn't the president meet with the person who is -- leads the day-to-day management? MR. GIBBS: The president -- well, the day-to-day management is done with approval of the board. Q Not day to day -- they don't approve every move they make. Q Then why is the president -- Q That's not the way corporate governance works. 13:42:42 MR. GIBBS: Well, again I have not ruled out a meeting. (Off mike.) Q Relevant officials also covers Tony. Your answer? MR. GIBBS: If that's deemed so by the chairman of the board, sure. Q Well, why is the president -- Q Robert, following up on the same issue, you were just asked about the survival of the company. Does the president and do his advisers -- do you guys see any risk in being too harsh in your rhetoric about BP? MR. GIBBS: Well, can I just -- I think for the better part of five weeks, most of the tenor of the questions from you all to me was why the president hadn't been harder on the company. Q Now we got that answer. We want to know why he's -- whether he's being too hard. (Laughter.) MR. GIBBS: What, Sheryl, would you say would be the inflection point at where those two lines (change/changed ?)? Q All right. But the question -- MR. GIBBS: No. Hold on. I just want to see -- Q No, I actually think -- Q That's for you to find. Q -- I think that's for you to judge. And I do think it's a legitimate question, given what our colleague has said about the stock prices. Is there a risk in being too hard on the -- on the company? MR. GIBBS: No, I answered Todd's question, Sheryl. I didn't -- I didn't say that it wasn't a relevant question. Our point is not -- I said this a week and a half ago. Our point is not to feign, through method acting, anger at what environmental and economic damage has been wrought by this disaster. That wasn't going to fill a hole. That wasn't going to put money in the bank account of a shrimper that's not fishing. That's not going to help a hotel worker or a hotel owner on a beach in Florida. What is, is ensuring that the obligations and the responsibilities that a company has as the responsible party are taken care of. We'll continue to do that. That's our job under the law, and that's the president's commitment to the American people and to the citizens of the Gulf. Q (Off mike.) Q Aside from whether or not anger that's being shown or that's going too far or not far enough, when you're discussing your communications strategy about this spill, does the effect it may have and what words come out of people's mouths on the company itself play into that? 13:44:49 MR. GIBBS: Well, again, (Jake ?), we have -- I -- if anything, we have been called guilty for not being overly dramatic, for not showing flashes of anger. Q (Off mike) -- which you firmly rejected. MR. GIBBS: We'll let -- right. Right. Which -- right, right -- (chuckles) -- which I would point out you're now asking me the opposite question -- Q I am asking the opposite question -- MR. GIBBS: Right. Q -- because you rejected the first. MR. GIBBS: And so if you reject the first, it's hard to make the premise of the second the cause of the first. It doesn't -- it -- I think the criticism that somehow we've been too harsh, I don't think that matches up with the reality or the rhetoric that we've used. Our focus has not been on anything other than ensuring that the responsibilities of those responsible for this disaster -- that they keep those commitments. That's been the president's charge from the beginning, and that will continue to be the president and the team's charge going forward. Q Do you think it will affect in any way the relationship with Great Britain? MR. GIBBS: No, I -- Q BP being a London-based company? MR. GIBBS: I -- I do not. And I -- I see no reason that it would. Q And can you say -- last question on this -- will it be the president who places a call to the British prime minister this weekend, or the other way around? I understand they'll be talking. MR. GIBBS: We -- we arranged a call earlier in the week to discuss a whole host of issues. Obviously, Mr. Cameron is in Afghanistan. That is obviously relevant, for the two to speak about sanctions on Iran that have recently passed and the next steps that may be taken either by this country or by those -- our allies in Europe. I expect that they will speak about upcoming meetings -- (laughter) -- why is -- why is -- (sound of tapping on microphone) -- now is -- is it working now? I don't know. STAFF: Yeah. MR. GIBBS: The upcoming meetings at the end of the month for the G-8 and the G-20, and our continued response to the challenging international economy. If -- we may get into talking about BP. And if they talk over the weekend, I'm sure they'll get into talking about the World Cup. Yes, sir. 13:47:17 Q Late yesterday, oil arrived off of Florida's Perdido Key. And the unified command closed off some of the waters, then neglected to inform Florida emergency officials. And a lot of officials in Florida are very upset about this and they see this as an example of unified command failing and federal government not being -- you know, having a competent coordination in terms of this emergency. Can you explain why -- 13:47:44 MR. GIBBS: I would -- I don't know the circumstances of that, Jake. I would talk to someone on Admiral Allen's team or at the Joint Information Center. 13:47:52 - Q It was reported, I think about a week and a half ago, that the month before the explosion in April, Deepwater Horizon informed federal regulators that they were not able to control the well. For some reason, they continued to operate the well. They were not told to stop. Can you shed any light on that, as to why that happened? MR. GIBBS: I don't -- I don't know the circumstances you're talking about. I'm happy to look at whether -- the degree to which -- let me just look at something. I don't know what the circumstances are. I don't know if you've talked to Interior or MMS on this. Q And I guess lastly, President Obama has acknowledged the failings of the federal government to deal with this explosion and the aftermath. Is President Obama apologizing to the families that are visiting with him now, apologizing for the ways in which the government, run by him, failed them? MR. GIBBS: Well, look, Jake, I -- we will have a readout of the meeting that is, as you mentioned, going on as we speak. 13:48:55 I think the president has not failed in his remarks over the past several weeks to include the regulatory failures of -- of what was the Minerals Management Service, under both his administration and previous administrations. We've seen -- we had an IG's report that came out during this time period that mentioned problems from 2005 to 2007 in different district offices. There's no doubt there was a regulatory failure in this case, Jake. Secretary Salazar had been working to reform Minerals Management Service, and it's -- it is clear in the steps that they have taken now in breaking apart this entity and ensuring that safety regulation and royalties are not done by the same group of people. I think that is what any of us owe anybody that is working in the Gulf or in waters throughout this country, in terms of ensuring their protection through smart regulation. 13:50:13 Without going into the IG report, does the president feel personally responsible for the fact the federal government failed demonstrably to regulate this oil rig and people lost their lives as a result? MR. GIBBS: I -- and I think he's -- I think he's spoken to that throughout this process. Q Thank you, Robert. In light of concerns about the moratorium and what it will mean for the loss of jobs going forward, is the administration rethinking that moratorium at all? MR. GIBBS: No. No. Let me -- let me -- I want to be clear on this, though. The -- we had a discussion about this the night before the report came out, and I think it's important to understand a little of the context here. You had wells that were at varying degrees of drilling depth. The president made the decision, along with the team, to pause those permits. The accident -- we don't know exactly what caused this explosion, but it happened after the drilling had reached the reservoir of oil and during the process of capping this oil well. None of those relevant permits had yet gotten to that point. And the president believed that -- rightly believed that doing that at that depth, without knowing what happened on the Deepwater Horizon well, didn't make a whole lot of sense. And we believe and understand that there has to be something that's done for those whose livelihoods have been paused because they work on these deepwater rigs. But the president was very clear with governors and senators and parish presidents in Louisiana on Friday, in saying you can't -- (chuckles) -- you can't have all these people around the table saying, "We don't trust BP to do anything," and then take them at their word for the four permits that they were currently working on at deep water. So I think the president understands that this is not without some economic -- not at some -- this has economic cost. But at the same time, without knowing exactly what happened, I think the president thought it would not be responsible to continue on a path that might cause -- without knowing the cause of the previous accident -- might cause something else to happen again. Q And not having any conversations with Tony Hayward -- are you saying that the board would have to approve a phone call for -- MR. GIBBS: No, I've never said that. Q So why -- why can't the president make a phone call, then, to -- 13:52:57 MR. GIBBS: I'm saying that -- I'm -- the board structure has not precluded a phone call. What I'm saying is -- Q Why hasn't there been a phone call, then? MR. GIBBS: Because I'm saying the president would like to talk to, if he does, the relevant structure that governs the company. That's not necessarily the CEO; that's the -- that's the chairman of the board, based on the corporate governance structure that BP has. Q But all conversations don't have to be in -- you know, about technical matters or legal matters. It can just be reaching out to the CEO of a company to -- MR. GIBBS: Well, again, there's lots of contact between Thad Allen and others -- Secretary Chu, Secretary Salazar -- with a whole host of people at BP. We sent a letter yesterday, a directive on vessel redundancy. The top cap right now is depending on the estimates, over a 24- hour period, physically capable of taking in 15 (thousand) to 17,000 barrels of oil. Not precise numbers; obviously I think Admiral Allen briefs on those numbers in the morning. There are other things that we believe can and should be done, to increase the amount that we're capturing from the riser. For instance as I talked about yesterday, in a normal process, there are choke-and- kill lines that are supposed to -- that in some cases will force mud, as they did under the top kill, into the blowout preventer. We believe those lines can be used to take oil going up into the top cap and now going out through vents, in order to control the pressure, up into -- up into the surface, at a point in which we think it's safe. The letter went from Thad Allen to British Petroleum. The letter came back -- I think came back today from Doug Suttles, on their plan moving forward in terms of moving surface vessels in, as we increase our capability to draw oil, making sure that we have not just the vessels up there to capture what's possible but have a redundancy in place, in the event that something happens. Q And no plans in the future for phone conversations? 13:55:10 MR. GIBBS: If there are plans, we'll let you know. (Laughter, cross talk.) Q Why can't it be fixed? Q That's what I'm saying, why can't it be fixed? Q Termites. MR. GIBBS: Well, I -- trust me, I'm not looking at the ceiling for the view. (Laughter.) Q Are you going to fix -- MR. GIBBS: (Inaudible.) (Cross talk.) Maybe somebody will look at -- Q It's been going on for like -- it's been going on for a while. It could have been fixed. (Laughter.) You -- (Cross talk.) MR. GIBBS: April, April, you know, as the responsible party -- Q Right. MR. GIBBS: -- I'm going to now put you in charge and the White House correspondents in charge. Q Well -- (off mike). (Cross talk.) MR. GIBBS: I will -- I will call you -- I don't doubt that it will be done, as she crosses her hands and no doubt taps her foot. Q (Off mike.) MR. GIBBS: Yeah. Q Following up on this meeting, when the president meets with Wall Street banks and gives them a piece of his mind or kicks them in the behind, he meets with CEOs. Why is this different? MR. GIBBS: Again, some of this is based on corporate governance structure. Q Well, they all have the same basic corporate governance, corporate structure. MR. GIBBS: That's not true. That's not necessarily true, no. Q Many of those banks have a board of directors and a chair. Why would he meet with CEOs on Wall Street -- MR. GIBBS: It depends on who elects the board of directors and what's their -- what their charge is. Q You're saying that the company is unique and that the CEO does not have -- MR. GIBBS: No, I'm not saying it's unique. I'm saying -- I'm saying that the way their corporate board is structured, their chair -- the chair of the board and the board make the relevant decisions. Q Okay. Even if we accept that, why doesn't he just pick up the phone and call them? I mean, what -- MR. GIBBS: There's many people that are in touch with BP. Q With the chairman of the board? MR. GIBBS: With all relevant members of the -- of the company. The letters yesterday went to BP -- . Q (You mean including ?) the chairman of the board? MR. GIBBS: Yes, the letters yesterday went to BP on vessel redundancy. Q On the issue of who's in charge, I know that you keep saying that the federal government is in charge, but we keep hearing from the Gulf that either nobody's in charge or BP's in charge. And in fact there was a hearing today with parish presidents, and the theme from the parish presidents and from Mary Landrieu and from Bill Nelson and other Democrats all throughout the hearing was either BP's in charge or nobody's in charge, but the federal government on the ground sure doesn't seem to be in charge. Does -- is the president getting that message from them? MR. GIBBS: I haven't seen that hearing and I'd -- Q Well, I mean it's consistent with what's been coming up from the Gulf all along, I mean, and they're just -- MR. GIBBS: I'd -- Q You're really not aware of this? You're not aware of this feeling coming from the Gulf? MR. GIBBS: We've plowed this ground about 18 times, Chip. Q Yeah, but it hasn't changed. That's the point. MR. GIBBS: Well, I -- I disagree with that. Q The people down there are still saying -- well, but tell me why you disagree. MR. GIBBS: Because we're going to see the mayor of Grand Isle today, who met with the president on Friday and laid out maps, which you all saw, about the four passes that Grand Isle has. That oil could come into the bay and hurt fishermen, right? Met with the president. 13:57:51 The Coast Guard got to work with the mayor of Grand Isle, and they've approved a plan to close those passes. So I think the Coast Guard and Thad Allen are down there and doing the job that must be done to respond to this. Q So all these senators and parish presidents are just confused as to -- the federal government really isn't in charge? MR. GIBBS: That's your language. Q No. It's -- it -- listen to the hearings. You know, be aware of what's going on on the Hill. Q Can you explain the basis for holding BP responsible to pay the salaries of oil workers laid off by other companies because the government chose to issue a moratorium on offshore drilling out of concern for its own potentially lax regulations? MR. GIBBS: No, the -- part of the problem is not knowing what caused the disaster at the Deepwater Horizon well and believing that pausing what was happening is a result of the disaster by BP. Q Well, no, I mean, the BP disaster may be the impetus for this renewed vigor for an examination, but it's not the cause, strictly speaking. MR. GIBBS: How? Q So legally, how is that fair? MR. GIBBS: What do you mean? Q Well, the fact that the government is now concerned that perhaps there may be any number of causes, with other drilling companies going on; they're concerned about their own regulation. MR. GIBBS: Well, no, the cause is -- Q How is that BP -- MR. GIBBS: Again, the cause is trying to figure out -- (name inaudible) -- we don't know what caused the accident. We don't know what -- there's an investigation going on to determine -- the president believes strongly that continuing to do that didn't make any sense. Q BP didn't cause -- BP -- this accident shone a light on the fact that maybe our drilling regulations need to be better. But it's not BP's -- MR. GIBBS: It depends on -- I don't know -- you could -- you -- I don't want to assert what might have caused it without knowing what caused it. I don't think -- Q (It's ?) a very expansive view of BP's liability. MR. GIBBS: I -- again, I -- we are -- we are currently involved in a disaster response because of the disaster that was caused by this. Q It's a government moratorium. I mean, you do -- you get that, right? MR. GIBBS: Is a result of the disaster -- is a result of the disaster. Q Well, it -- it doesn't -- (inaudible) -- the government supposed to take action. BP's -- it's actions didn't cause the government -- this was an (elected ?) moratorium. MR. GIBBS: In order to ensure that it didn't happen again because we didn't know what the cause was -- because we didn't know what the cause was. Laura (sp). Q Did -- is it the administration's view that the government should consider or look into the possibility of stopping BP from paying dividends until it pays the claims that -- (inaudible)? MR. GIBBS: No, again, I'm not going to get involved in, again, their legal obligations about dividends. The president was clear on this, that the answer on this is not whether or not they pay their dividend(s). But if they're going to pay dividends, if they're going to spend $50 million on ad campaigns, then we certainly shouldn't hear about claims that aren't being paid. You know, one of the things we heard was most of the major claims, most of the small businesses and certainly even some of the bigger businesses, those claims have not been dealt with, right? The numbers that you hear are about how claims have not been denied. Denial of claims has thus far not been a problem: It's dealing with the amount of claims and ensuring that those are answered. And if the company's going to pay large sums of money, then they shouldn't nickel and dime on a claims process involving economic damages. Q Following up on this issue of the corporate governance structure of the company, are you telling us that essentially the dozens, perhaps more than dozens, of CEOs that the president has met with over the course of this administration, on everything on health care to financial regulation to banking, all of those people had -- MR. GIBBS: No, I don't know -- Q -- were companies that had a different governance structure? MR. GIBBS: I don't -- I don't know the corporate governance structure of every company that's been into the White House. Q But was -- was the corporate governance structure relevant in those invitations? MR. GIBBS: I don't -- I don't know what the structure was. Q Then why is it relevant here if it wasn't relevant there? 14:01:59 MR. GIBBS: Because B.P. is the responsible party, and the people that make the decisions are going to be the board and the chair of the board. Q Beyond the corporate governance structures, just a simple question: Why has the president insulated himself from any contacts -- direct contacts, person-to-person contacts -- with BP executives from the get-go? MR. GIBBS: I -- I don't totally agree with the premise of your question. Again, the president represents the full force of the federal government. The full force of the federal government is in -- is in contact with BP on a number of occasions throughout any given day, as you've heard Admiral Allen and others tell you. Q Doesn't just the symbolism of the president speaking directly to one of these people mean something? MR. GIBBS: Again -- again, there's -- the president is focused on the response, Peter. The president is focused on doing what's right. The president is focused on ensuring that BP is doing everything that it can to stop the leak, that the environmental and economic damages that are caused by this disaster are paid for. We're going to have natural resources damage assessments -- natural resource damage assessments that will take years to fulfill. That's what our focus is on right now, not on symbolism. Q Just to follow up on a question I asked you yesterday, were you able to find out what the administration's stand is on what these families are asking about the limit on benefits? MR. GIBBS: Yeah, the -- look, we -- the administration is concerned that offshore oil workers may have fewer rights under the law than onshore workers. He is, and will tell the families he's committed to work with Congress to ensure that any disparity in the law is addressed and the families receive due compensation. Q Would it be retroactive to these families? MR. GIBBS: I assume so, yes. Again, that's -- it would be part of the congressional debate. Q Some of the market analysis of the drop in BP's share price says that it's purely a result of the political rhetoric and not the fundamentals of the company. So is there a concern that the rhetoric -- referring to British Petroleum instead of BP -- that that kind of toughened response is actually working against the pledge to make sure that taxpayers aren't left on the hook in this -- 14:04:21 MR. GIBBS: Again, we have -- just as -- I'd refer you largely to the answer that I just gave Peter. Our focus has not been on -- our focus has been on what's right, fulfilling responsibilities. It's not been on gratuitous language. Q But the focus has been making sure that taxpayers aren't left to pay for the cleanup costs, so is there -- MR. GIBBS: Again, that's -- I hate to revert back to many of the answers I gave in the first week or so of this. The Oil Pollution Act of 1990 sets out quite clearly what -- who the -- who the responsible parties are and what they're required by law to pay for, so we don't have what happened in previous accidents like the Exxon Valdez, where taxpayers are on the hook for the cleanup. Obviously, the president has sent legislation because -- and one of the things that they talked about in the bipartisan meeting was, there is no doubt that we have to update where we are in the Oil Pollution Act of 1990, because it's 2010. And as the president has heard from people involved in that debate, who have said, in 1990, when we were worrying about double- hauling tankers, nobody contemplated drilling it 5,000 feet. That's why we've sent legislation up dealing with liability. I know Congress is going to deal with liability. And that's obviously something that needs to be looked into. Q If BP were to file for bankruptcy, how could the government make sure that taxpayers -- MR. GIBBS: Well, I'm not going to -- I'm not a bankruptcy lawyer. I don't want to do the hypothetical on assets and all that sort of thing. Yeah. Q A couple on foreign policy before I go to BP. I asked yesterday about the White House position on -- the House and Senate passed sanctions against Iran. MR. GIBBS: We're working -- Q Do you want that to go forward? Do you want that to come to the president's desk? 14:06:23 MR. GIBBS: We're working with them now. That was -- that was also brought up in the bipartisan meeting. Obviously we've said throughout this process that U.N. sanctions are not a magic bullet, that there are steps that we can take as a government and have. There are steps that Congress will take as part of our government. There are steps that the European community and our allies throughout the world may take. And we're working with the House and Senate, on a bill that I understand is currently in conference. Q Is it fair to say that in contrast to the administration position while you were working at the U.N., you now are more receptive to Congress going forward on this front? 14:07:08 MR. GIBBS: Well, look, I think Congress is going to move forward. And we wanted to ensure that -- we wanted to ensure, and I think quite frankly everybody in Congress wanted to ensure, that we got through yesterday what we got through. And now we will look at other avenues. Q Okay. On Afghanistan, it was made clear today over at the Pentagon, the briefing from Afghanistan, that the Kandahar operation is going to begin much later -- or a bit later than originally contemplated. MR. GIBBS: Yeah. Q Does the White House regard this as a setback? MR. GIBBS: I would say operations in -- some operations in Kandahar obviously have -- there are operations -- there are active operations now in Kandahar. Q Right. (Off mike) -- meant that General McChrystal said this contemplated linkage of a lot of operations is going to be delayed. MR. GIBBS: I would say this. The -- Q Is this a setback? Because part of the delay is attributed to lack of local buy-in. MR. GIBBS: Well, I think, again -- Q (Off mike) -- in other words. MR. GIBBS: Well, look, we have -- I would say two things, Major. 14:08:03 One is, long-term success, we know, is going to be determined by our ability to work with local populations. Eventually we are going to hand over to those local populations through Afghan National Security Forces and the army and police -- we're going to hand over the responsibilities for security to them. We have got to have -- and that was true with -- that was a big part of Marja, was buying -- getting the buy-in from the local population. I would say, too, we are -- Q But how troubling is it that you're having difficulty achieving that. MR. GIBBS: Well, look, I would say this. We have resources like we haven't had since the beginning of this war. And we are in a position that we have not been at any point in this war, because of the lack of resources. I think we have seen over the past what happens when -- and General McChrystal, Ambassador Eikenberry and others have seen what happens when -- not taking into account the local populations, what happens if there are mistakes that we deeply regret and I know everybody involved deeply regrets. Our key is to get their active belief and buy-in in that participation, so that the long-term success in Afghanistan with the strategy that we believe is right has a good chance to succeed. Q (Off mike) -- foresees much slower going than you had hoped. MR. GIBBS: Well, if General McChrystal said that, he's far better positioned to do that than I am. Q On BP -- Q To follow up on this, is it possible -- MR. GIBBS: Well, let me finish and then I'll -- yeah. Q Senator Bill Nelson is going to write a letter to the president asking for some clarification on the Jones Act, whether or not it is in any way inhibiting the U.S. government's use of offers from other foreign nations and foreign flag vessels to help in any way in mediation, skimming, any of the other operations you're doing on the Gulf. What is the administration's position on it? The Jones Act was waived during Katrina by the Bush administration to bring oil in. What's your position on that? MR. GIBBS: I don't -- I would say this. I think that -- Q Is it an impediment? Are you open to waiving any future -- MR. GIBBS: No, no, as Admiral Allen said today, we are using equipment and vessels from countries like Norway, Canada, The Netherlands. There has not been any problem with this. If there is the need for any type of waiver, that would obviously be granted. But this -- it -- we've not had that problem thus far in the Gulf. Q So you would waive it if you need to? MR. GIBBS: If there's anything that needs to happen, that will -- we will make sure that it happens. Q Lastly, how would you describe the conversation in the bipartisan meeting on either whether cap-and-trade came up specifically, energy taxes as a part of a clean-energy bill going forward? Because Republicans were quite forceful out here afterwards, saying they're not interested in it and they are opposed to the president on this score. How contentious was that conversation during the meeting? 14:11:06 MR. GIBBS: The -- you know, the -- no part of the meeting was contentious. I would say I think the biggest thing that came out of the meeting was bipartisan approval in the House and the Senate, both sides, on agreeing that the president's three-year proposed spending freeze on non-security discretionary spending -- that was held up by all the leaders as a good idea, one that they would -- one that they would seek to hold their bodies to, Democrat and Republican alike, as a way of making some progress on our medium- and long-term deficit issues in next fiscal year. Energy certainly came up. We talked about, as I mentioned a minute ago, the notion of certain provisions in the Oil Pollution Act of 1990 not necessarily being as up-to-date, to deal with a crisis at this depth in 2010, particularly the liability caps on economic damages that are currently at 75 million (dollars). And comprehensive energy reform came up as a way of talking about and dealing with our investments, in research and development and in jobs for the future. Q Make any headway?
House Energy Hearing with Tony Hayward / Witness / 1100-1200
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 11:00:00 MOST UPSETTING ABOUT THIS TRAVESTY IS THAT IT COULD HAVE 11:00:01 BEEN AVOIDED. AS THE ONGOING INVESTIGATION BY 11:00:04 THIS COMMITTEE HAS ALREADY DISCOVERED, BP EXECUTIVES CREATE 11:00:07 AND ATMOSPHERE WHERE SAFETY CONCERNS WERE IGNORED IN ORDER 11:00:12 TO ENSURE THAT THE COMPANY'S ALREADY STAGGERING PROFITS THIS 11:00:15 YEAR, APPROXIMATELY $93 MILLION A DAY IN THE FIRST QUARTER 11:00:20 CONTINUED UNABATED. THIS APPALLING DISREGARD FOR THE 11:00:23 GULF COAST AND ITS INHABITANTS IS ONE OF THE MOST SHAMEFUL 11:00:28 ACTEDS BY A CORPORATION IN AMERICAN HISTORY. 11:00:31 IT'S THE MOST SIGNIFICANT EXAMPLE OF BP'S DISREGARD FOR 11:00:34 THE ENVIRONMENT AND WELL BEING OF ITS WORKERS. 11:00:38 A REPORT PUBLISHED BY THE CENTER FOR PUBLIC INTEGRITY FOUND THAT 11:00:42 BETWEEN JUNE 2007 AND FEBRUARY 2010, BP RECEIVED TOTAL OF 862 11:00:49 CITATION FROM THE OCCUPATIONAL SAFETY AND HEALTH 11:00:51 ADMINISTRATION, OF THOSE A STAGGERING 76 WERE' GRECIAN AND 11:00:57 WILL WILFUL. COMPARED WITH EIGHT AT THE TWO 11:01:01 OIL COMPANIES TIED FOR SECOND PLACE. 11:01:03 THIS PATTERN OF BEHAVIOR CONTINUED IN THE SPILL'S 11:01:06 AFTERMATH. I HOLD IN MY HAND A DOCUMENT 11:01:10 CALLED VOLUNTARY WAIVER OF RELEASE THAT BP MADE UNEMPLOYED 11:01:15 FISHERMAN SIGN BEFORE THEY COULD BE HIRED FOR SPILL CLEANUP T 11:01:19 STATES I HEREBY AGREE ON BEHALF OF MYSELF AND MY REPRESENTATIONS 11:01:24 TO HOLD HARMLESS INDEMNY IF I AND FOREVER DISCHARGE THE BP 11:01:31 EXPLORATION PRODUCTION INC. FROM ALL CLAIMS AND DAMAGES THAT I OR 11:01:35 MY REPRESENTATIVES MAY HAVE WITH REGARD TO THE PARTICIPATION IN 11:01:38 THE SPILL RESPONSE ACTIVITIES. I KNOW THAT YOU SAID THIS WAS AN 11:01:42 EARLY MISSTEP AND THAT THIS WAS JUST A STANDARD DOCUMENT, BUT 11:01:45 THIS IS WAS THE FIRST RESPONSE THAT YOU HAD TO PEOPLE THAT WERE 11:01:51 HIRED. AND OUTRAGE DOES NOT BEGIN TO 11:01:53 EXPRESS MY FEELING. THESE ARE PEOPLE WHO ARE 11:01:55 UNEMPLOYED BECAUSE OF THE RECKLESSNESS OF BP, FORCED TO 11:02:00 TAKE JOBS CLEANING UP BP. 'S MESS IN ORDER TO SURVIVE, YET 11:02:03 TO QUALIFY FOR THOSE JOBS THEY HAD TO HOLD BP HARMLESS FOR 11:02:07 EVERYONE FURTHER DAMAGES THEY MAY SUFFER IN BP'S EMPLOY. 11:02:11 THIS FROM A COMPANY THAT MADE $93 MILLION A DAY. 11:02:17 FORTUNATELY A COURT TRUMPED YOUR FANCY LAWYERS WHO WROTE THIS 11:02:19 DOCUMENT BUT STILL IT BEGS THE QUESTION HOW COULD YOU DO THAT? 11:02:23 I'M GLAD THAT YOU'RE HERE, MR. HAYWARD. 11:02:26 I SKBEKTS YOU TO EXPLAIN WHY YOUR COMPANY HAS OPERATED IN 11:02:29 SUCH A WHOLLY UNACCEPTABLE MANNER. 11:02:33 IN THE FINAL ANALYSIS THE SIMPLE FACT REMAINS IF BP THOUGHT MORE 11:02:36 ABOUT THE RESIDENTS AS THESE WIDOWS ASSISTANT WORKERS, AS 11:02:40 THESE WIDOWS SAID, RATHER THAN THE ALREADY EXORBITANT PROFITS 11:02:47 OF ITS SHAREHOLDERS, WE WOULD NOT BE HERE TODAY. 11:02:49 I YIELD BACK. MR. LOTTA S FOR AN OPENING 11:02:55 STATEMENT. THANK YOU, MR. CHAIRMAN. 11:02:57 RANKING MEMBER BURGESS, I WANT TO THANK YOU FOR HOLDING THIS 11:03:01 SUBCOMMITTEE HEARING ON THE ROLE OF BP IN THE OIL RIG EXPLOSION 11:03:05 AND THE ONGOING EXPLOSION IN THE GULF OF MEXICO. 11:03:10 I ALSO WANT TO EXTEND MY HEARTFELT CONDOLENCE TO THE 11:03:13 FAMILIES OF THOSE WHO LOVE ONE LUVED ONES AN HAVE BEEN INJURED. 11:03:16 THE SCALE OF THE SPILL AND IMPACT ON THE GULF ECONOMY 11:03:19 ENVIRONMENT DEMAND A THOROUGH EXAMINATION OF BP'S ACTIONS AND 11:03:24 INACTIONS AS WELL AS BP'S CURRENT AND FUTURE PLANS. 11:03:28 THE FLOW OF OIL MUST BE STOPPED. EVERY DAY ANYWHERE FROM 35,000 11:03:33 TO 60,000 BARRELS ARE SPILLING INTO THE GULF AND ONLY 15,000 11:03:37 BARRELS A DAY ARE BEING CAPTURED. 11:03:39 THE ENVIRONMENTAL EFFECTS ON THE OIL SPILL ARE HARMING SHORELINES 11:03:43 AND COASTAL WETLANDS, FISHERIES AN FISHERY HABITATS AS WELL AS 11:03:48 SEA MAMMALS AED TURTLES. WHAT'S WORSE, WE WILL NOT FULLY 11:03:53 KNOW THE ECOLOGICAL RAMIFICATIONS OF THE OIL SPILL 11:03:56 UNTIL YEARS DOWN THE ROAD. FURTHER MORE, BUSINESSES 11:03:59 SUFFERING GREAT LOSSES INCLUDING JOB AND REVENUES DEPENDENT ON 11:04:04 TOURISM ARE BEING THREATENED. THE NOAA ANNOUNCED A REVISED 11:04:09 FISHING CLOSURE IN THE OIL AFFECTED PORTION OF THE GULF OF 11:04:13 MEXICO ACCOUNTING FOR 33% OF THE GULF OF MEXICO'S EXCLUSIVE 11:04:17 ECONOMIC ZONE. AS OIL CONTINUES TO FLOW THIS 11:04:19 YEAH IS SURE TONE LARGE FURTHER EXASPERATING THE ECONOMIC 11:04:25 DAMAGE. A RECENT ECONOMIC IMPACT STUDY 11:04:28 BY THE AMERICAN SPORT FISHING ASSOCIATION INDICATED THAT THE 11:04:33 ENFIRE GULF WERE CLOSED TO RECREATIONAL FISHING FROM MAY 11:04:36 THROUGH AUGUST. LEAVING $WIN.WIN BILLION OF 11:04:40 REVENUE WHICH SUPPORTS $2.5 BILLION IN TOTAL SALES, AND 11:04:55 18,785 JOBS. THIS IS DEVASTATING TO AN AREA 11:04:58 THAT HAS ALREADY SUFFERED GREATLY FROM THE AFTERMATH OF 11:05:01 NATURAL DISASTERS. AMERICANS CONTINUE BE TO BE 11:05:04 FRUSTRATED FROM THE LACK OF SOLUTION FROM ALL PARTIES 11:05:06 INVOLVED AND I'M INTERESTED TO HEAR MORE ABOUT THE COORDINATED 11:05:09 EFFORTS BETWEEN BP AND THE ADMINISTRATION. 11:05:11 THE ECONOMIC AND ENVIRONMENTAL MAGNITUDE OF THIS DISASTER 11:05:14 NECESSITATES A CLEAR UNDERSTANDING OF WHAT WENT WRONG 11:05:16 AND BP NEEDS TON HELD ACCOUNTABLE FOR THE DISASTER. 11:05:21 I ALSO LOOK FORWARD TO HAVING MMS AND THE DEPARTMENT OF 11:05:25 INTERIOR BEFORE THIS SUBCOMMITTEE TO ALSO FOR THEM TO 11:05:28 ANSWER SOME TOUGH QUESTIONING. I LOOK FORWARD TO THE HEARING, 11:05:31 MR. HAYWARD'S TESTIMONY AND I YIELD BACK THE REMAINDER OF MY 11:05:34 TIME. THANK YOU. 11:05:37 THANKS, MR. LATTA MR. ROSS, THREE MINUTES OPENING STATEMENT, 11:05:42 PLEASE, SIR. THANK YOU. 11:05:44 CHAIRMAN STUPAK FOR HOLDING TODAY'S HEARING TO EXAMINE BP'S 11:05:48 ACTIONS AND DECISIONS THAT DIRECTLY LED TO THE TLACH MAGIC 11:05:53 EXPLOSION AND OIL SPILL THAT CONTINUES TO GUSH AND WREAK 11:05:58 HAVOC ON THE GULF COAST. AT A RATE OF UP TO 1700 GALLONS 11:06:10 WE ARE MINUTE. SINCE THIS HEARING BEGAN A 11:06:12 LITTLE OVER AN HOUR AGO, UP TO 112,847 GALLONS HAVE BEEN DUMPED 11:06:21 INTO THE GULF. ON DAY 59 OF THIS ECONOMIC AND 11:06:26 ENVIRONMENTAL DISASTER, WITH UP TO 60,000 BARRELS OF DAY 11:06:30 SPILLING INTO THE GULF, I CONTINUE TO BE FRUSTRATED AND 11:06:33 DOWNRIGHT ANGRY BY BP'S RESPONSE AND LACK OF A CLEAR AND 11:06:37 PRODUCTIVE PLAN TO STOP THE LEAK OR EFFICIENTLY CLEAN UP THE OIL 11:06:41 THAT IS DESTROYING THE ECOSYSTEMS THAT SURROUND THE 11:06:45 GULF. REPORTS HAVE SURFACED REVEALING 11:06:48 THAT IN THE DAYS AND WEEKS BEFORE THE EXPLOSION BP 11:06:51 KNOWINGLY MADE A NUMBER OF DECISIONS THAT INCREASED THE 11:06:55 DANGER OF AN EXPLOSION AND SPILL OCCURRING. 11:06:59 IT SEEMS APPARENT THAT BP PUT PROFIT BEFORE SAFETY, MANY 11:07:05 PEOPLE ARE DEAD. MILLIONS OF GALLONS OF OIL 11:07:08 CONTINUE TO SPEW INTO THE GULF. I'M HOPEFUL THAT MR. HAYWARD CAN 11:07:14 EXPLAIN TODAY WHY THESE DECISIONS WERE MADE, HOW THIS 11:07:17 COMPANY'S ACTIONS LED TO THIS DISASTER AND WHAT THEY ARE DOING 11:07:20 TO REMEDY IT. AS OIL FLOATS INTO THE MARSHES 11:07:25 AND ONTO THE BEACHES, AS SHRIMPING VESSELS SIT TIED TO 11:07:30 DOCKS, AS RESTAURANTS AND BUSINESSES DURING THEIR PEAK 11:07:33 SEASON REMAIN WITHOUT TOURISTS AND CUSTOMERS, AND AS HOMEOWNERS 11:07:39 SEE THEIR PROPERTY VALUES PLUMMET, THE PEOPLE AND WILD 11:07:43 LIFE OF THE GULF COAST WAIT AND WONDER ABOUT HOW EXTENSIVE THE 11:07:50 DAMAGE TO THE ECOSYSTEM OR THE ECONOMY WILL BE. 11:07:55 THIS BILL IS NOT ONLY AFFECTING THE GULF COAST, THE JOBS AND 11:08:00 ECONOMIES OF THIS SURROUNDING STATES ARE HURTING AS WELL. 11:08:04 MY STATE OF ARKANSAS BORDERS LOUISIANA. 11:08:08 AND MANY OF MY CONSTITUENTS, PEOPLE I KNOW IN MY HOMETOWN 11:08:13 WORK ON OFFSHORE RIGS. THESE JOBS ARE ALSO AT RISK AND 11:08:17 I HOPE BP WILL TAKE RESPONSIBILITY FOR ALL THOSE WHO 11:08:22 ARE AFFECTED BY THIS SPILL REGARDLESS OF WHERE THEY LIVE. 11:08:26 AND WORK TO HELP PULL THEM THROUGH THIS DISASTER AS WELL. 11:08:30 THIS SPILL IS A WAKE-UP CALL THAT MUST RESULT IN BETTER 11:08:35 GOVERNMENT OVERSIGHT. MORE ADVANCED TECHNOLOGY, 11:08:37 STRONGER RESPONSE PLANS AND IMPROVED SAFETY STANDARDS. 11:08:42 NOT ONLY BY BP AND EVERY OIL COMPANY IN AMERICA BUT ALSO BY 11:08:47 OUR GOVERNMENT. ABOVE ALL, THIS DISASTER IS A 11:08:50 LEARNING EXPERIENCE THAT WILL HELP US PREVENT A TRAGEDY LIKE 11:08:53 THIS FROM EVER HAPPENING AGAIN. AND I'M HOPEFUL THIS HEARING CAN 11:08:57 PROVIDE THE ANSWER AND SOLUTIONS NECESSARY TO BEGIN THAT PROCESS. 11:09:03 MR. HAYWARD, I TRULY HOPE THAT YOU'LL GIVE US OPEN AND HONEST 11:09:06 ANSWERS TODAY AND NOT THOSE PREPARED BY YOUR LEGAL TEAM. 11:09:10 WITH THAT MR. CHAIRMAN, I YIELD BACK. 11:09:13 THANK YOU, MR. ROSS. NEXT I WOULD LIKE TO CALL ON 11:09:16 MISS CHRISTENSEN FROM VIRGIN ISLANDS FOR AN OPENING 11:09:19 STATEMENT, PLEASE. THANK YOU, MR. CHAIRMAN. 11:09:21 AND THANK YOU FOR HOLDING THIS IMPORTANT HEARING. 11:09:23 THE EXPLOSION ON THE DEEP WATER PLATFORM AND THE SUB SUBSEQUENT 11:09:27 OUTPOURING OF HUNDREDS OF THOUSANDS OF GALLONS OF OIL INTO 11:09:30 ONE OF THE MOST SENSITIVE AND IMPORTANT BODIES OF WATER IN 11:09:33 THIS COUNTRY IS INDEED A TRAGIC ACCIDENT WHICH CAUSED 11 DEATHS, 11:09:38 MANY INJURIES LEFT-HAND HAVE DEEP, LONG LASTING DEBILITATING 11:09:42 AND EXPENSIVE REPERCUSSION, THE PEOPLE OF THIS COUNTRY NEED IT 11:09:45 KNOW WHAT HAPPENED AND WHO IS RESPONSIBLE. 11:09:48 ALL THAT HAS TRANSPIRED SINCE APRIL 20th SAYS TO ME THAT NOT 11:09:52 ONLY BP BUT NO COUNTRY DRILLING IN OUR OUTER CONTINENTAL SHELF 11:09:56 IS PREPARED TO DEAL WITH A SPILL AT THIS DEPTH. 11:09:59 THEY'RE ALL, THERE USING THE BEST AVAILABLE TECHNOLOGY AND 11:10:05 STILL 59 DAYS LATER AN END IS NOT IN SIGHTS. 11:10:08 THIS IS NOT SKAEMENTABLE. WHAT HAS ALSO BECOME CLEAR IS 11:10:11 THAT WHILE BP REPORTEDLY USED SHORTCUTS THEY WERE WARNED NOT 11:10:15 TO WHICH MAY HAVE CAUSED THE SPILL, THEY'RE NOT THE ONLY ONES 11:10:20 AT FAULT. THEY COULD NOT HAVE CUT THOSE 11:10:22 CORNERS WITHOUT THE COMPLICITY OF EMPLOYEES AT SOME OF THE 11:10:26 RESPONSIBLE GOVERNMENT AGENCIES WHO DID NOT DO THEIR JOB. 11:10:29 WE'RE ALL APPALLED THAT LIVES ARE LOST BY DECISIONS MADE 11:10:32 APPARENTLY IN THE INTEREST OF CUTTING COSTS, BUT ALSO BY THE 11:10:35 LACK OF ADEQUATE PREPARATION FOR THIS WORST CASE SCENARIO WE ARE 11:10:40 FACING TODAY. THE FACT THAT THE INDUSTRY DOES 11:10:42 NOT ENSURE THAT RESPONSE TECHNOLOGY KEPT PACE WITH DEEPER 11:10:46 DRILL WELLS LAYS BLAME AT ALL OF THEIR FEET, BUT WE CAN STILL NOT 11:10:50 IGNORE THE DECISIONS BIMADE BY BP, IF THEY HAD BEEN DIFFERENT 11:10:54 11 PEOPLE MIGHT STILL BE ALIVE TODAY. 11:10:58 WE WITH OUR CONGRESS ALONG WITH THE FRED WHO HAS HAD MORE OF HIS 11:11:02 SHARE OF CRISIS NOT OF HIS MAKING HAVE MAKE CHALLENGES AND 11:11:08 CRITICAL AHEAD. I HOPE THE MANY WHO DIED, THE 11:11:11 AFFECTED FAMILIES AND NOW WHO NOW DEPEND ON OCS PLATFORMS FOR 11:11:17 THEIR LIVELIHOOD, THIS AND OF THE HEARINGS WILL HELP US GO 11:11:21 BEYOND A KNEE-JERK REACTION TO DO THE RIGHT THING FOR THE 11:11:23 REGION AND OUR COUNTRY. THAT BP AND ANY OTHER 11:11:27 RESPONSIBLE PARTY WILL BE HELD FULLY ACCOUNTABLE AND 11:11:30 RESPONSIBLE AND THAT PETROLEUM AND NATURAL GAS COMPANIES WILL 11:11:33 LEARN IMPORTANT LESSONS TO ENSURE THIS DOES NOT HAPPEN 11:11:35 AGAIN. I WANT TO THANK YOU, MR. HAYWARD 11:11:38 FOR BEING HERE, I LOOK FORWARD TO YOUR TESTIMONY AND FULL 11:11:41 ANSWERS TO THE QUESTIONS WE WILL ASK ON BEHALF OF THE PEOPLE IN 11:11:43 THE REGION AND ON BEHALF OF THE AMERICAN PEOPLE. 11:11:46 I YIELD BACK. THANK YOU. 11:11:48 MR. WELCH, OPENING STATEMENT, PLEASE. 11:11:50 THANK YOU, MR. CHAIRMAN. MR. HAYWARD, IN THE 49 DAYS 11:11:55 SINCE THE DEEP WATER HORIZON EXPLOSION 'CAUSED THIS 11:12:00 EXTRAORDINARY ENVIRONMENTAL CATASTROPHE, WE'VE HEARD TIME 11:12:02 AND AGAIN FROM BP THIS WAS AN ABRATION, THE FACTS REGRETTABLY 11:12:08 TELL A DIFFERENT STORY. IN 2005, WHEN BP'S TEXAS CITY 11:12:13 OPERATION BLEW UP, 14 WORKERS LOST THEIR LIVES N 2006, A BP 11:12:17 OIL PIPELINE IN TEXAS RUPTURED AND SPILLED 200,000 GALLONS OF 11:12:23 CRUDE OIL N IN 2007, THE YEAR YOU BECAME CEO, THE BP 11:12:27 CORPORATION SETTLED A SERIES OF CRIMINAL CHARCHGS NOT CIVIL 11:12:30 CHARGE, KRILL UNANIMOUS CHARGE AND PAID $370 MILLION IN FINES. 11:12:36 ACCORDING TO RISK MET TRI, AN INDEPENDENT OKAY, BP HAS ONE OF 11:12:40 THE WORST HEALTH, ENVIRONMENT AND SAFETY RECORDS OF ANY 11:12:43 COMPANY IN THE WORLD N ONLY ONE YEAR, THE OCCUPATIONAL SAFETY 11:12:47 AND HEALTH ADMINISTRATION FOUND MORE THAN 700 VIOLATIONS AT BP'S 11:12:52 TEXAS CITY REFINERY AND BP PAID A RECORD $87 MILLION IN A FINE. 11:13:00 BP WAS CHARGED WITH PUTTING PROFITS BEFORE SAFETY. 11:13:02 EARLIER THIS YEAR, A REFINERY IN TOLEDO WAS FINED $3 MILLION FOR 11:13:10 WILLFUL SAFETY VIOLATIONS INCLUDING THE USE OF VALVES THAT 11:13:12 CONTRIBUTED TO THE TEXAS CITY BLAST. 11:13:13 FINALLY, OF COURSE, THE DEEP WATER HORIZON CATASTROPHE AND 11:13:17 MORE EVIDENCE THAT COMES IN, THE MORE IT'S CLEAR THAT THAT EVENT 11:13:20 WAS FORESEEABLE AND IT WAS AVOIDABLE. 11:13:23 AFTER THE EXPLOSION, BP SAID THERE WAS NO OIL LEAKING, THEN 11:13:28 IT SAID THERE WAS 1,000 BARRELS A DYE. 11:13:32 THEN 5,000, WE'RE NOW UP TO 60,000 BARRELS. 11:13:39 FOR 59 DAYS, BP HAS TOLD THE AMERICAN THIS WAS ABRATION. 11:13:56 IT'S DEJA VU AGAIN AND AGAIN AND AGAIN. 11:13:59 THE QUESTION MANY OF US HAVE IS WHETHER A CEO WHO HAS PRESIDED 11:14:04 OVER A COMPANY THAT HAS INCURRED $370 MILLION IN FINES, A COMPANY 11:14:12 WITH ONE OF THE WORST RECORDS IN THE WORLD FOR SAFETY AND 11:14:13 CONSISTENTLY PUTS MONEY AHEAD OF SAFETY, WHO'S PEERS INCLUDING 11:14:16 MR. TILLERSON FROM EXXONMOBIL WHO TESTIFIED WHERE YOU ARE TWO 11:14:20 DAYS AGO, SAID THEY NEVER, THAT THEY NEVER WOULD HAVE DRILLED A 11:14:25 WELL THE WAY BP DID AT DEEP WATER HORIZON AND WHO HAS CEOS 11:14:29 TO HASS PRESIDED OVER THE DESTRUCTION OF OVER $100 BILLION 11:14:36 IN SHAREHOLD EVER VALUE. DOES THAT LEADER CONTINUE TO 11:14:39 ENJOY AND HAVE A VALID CLAIM ON THE TRUST AND CONFIDENCE OF 11:14:44 EMPLOYEES, SHAREHOLDERS, PUBLIC REGULAORS AND MOST IMPORTANT 11:14:48 LIT FAMILIES AND SMALL BUSINESS OF THE GULF COAST? 11:14:51 OR IS IT TIME FRANKLY TO THAT CEO TO CONSIDER TO SUBMIT HIS 11:14:55 SAYS RIG NATION? I THANK YOU AND YIELD BACK. 11:14:59 THANK YOU. MR. GREENE FOR AN OPENING 11:15:01 STATEMENT, PLEASE. THANK YOU, MR. CHAIRMAN. 11:15:03 MR. HAYWARD, I APPRECIATE YOUR TESTIMONY OR BEING HERE THIS 11:15:06 MORNING. AND MOST PEOPLE ON THIS 11:15:08 COMMITTEE KNOW I'M A BIG SUPPORTER OF OUTER CONTINENTAL 11:15:11 SHELF DRILLING AND DOMESTIC ENERGY PRODUCTION. 11:15:15 AND I UNDERSTAND FROM YOUR TESTIMONY IN OUR OTHER HEARINGS 11:15:18 WE'VE HELD IN MEETINGS WITH THE ADMINISTRATION THAT EFFORTS TO 11:15:21 CAP THE WELL ARE GOING AS EXPEDITIOUSLY AS POSSIBLE 11:15:28 HOWEVER LIKE MANY OF MY COLLEAGUES HERE, I'M FRUSTRATED 11:15:30 THAT DID IT'S BEEN ALMOST TWO MONTHS AND WE STILL HAVE 11:15:34 THOUSANDS OF BARRELS OF CRUDE OIL GUSHING IN THE GULF OF 11:15:39 MEXICO. I'M FRUSTRATED BY THE THREAT OF 11:15:40 DISASTER IMPACTS OUR WILDLIFE AND COAST LINE. 11:15:45 I'M FRUSTRATED THAT ONE WELL OUT OF THOUSANDS OF WELLS IS 11:15:49 THREATENING MY CONSTITUENTS' LIVELY HOOD AND MOST COMMUNITIES 11:15:53 ON GULF COAST. LITERALLY FROM ALABAMA BACK TO 11:15:55 BROWNSVILLE, TEXAS. THIS DISASTER HAS CAUSED THE OIL 11:15:59 AND GAS INDUSTRY TO SHUT DOWN EVEN IF THE MORATORIUM DOES NOT 11:16:03 LAST SIX MONTHS IT WILL BE TOO LATE FOR MANY OF THESE FOLKS, 11:16:07 BUT THESE PEOPLE ARE NOT THE ONES TO BLAME. 11:16:09 THEY'RE THE HARD WORKING PEOPLE WITH A WORK ETHIC LIKE NONE 11:16:13 OTHER THAN TAKE THEIR RESPONSIBILITY ON THESE RIGS 11:16:15 SERIOUSLY. HOWEVER, KOORDING TO THE 11:16:18 INVESTIGATION THIS SUBCOMMITTEE CONDUCTED IT'S OBVIOUS MANY BP 11:16:21 OFFICIALS ON AND OFF THE RIG DID NOT TAKE THEIR RESPONSIBILITY OF 11:16:26 THIS RIG SERIOUSLY. HALLIBURTON WARNED THE DECISIONS 11:16:34 COULD LEAD TO SERIOUS PROBLEM AND NOW PEOPLE ARE LOSING THEIR 11:16:39 JOBS. THEY COULD HAVE BEEN PREVENTED 11:16:41 IF BMPLT P HAD NOT CHOSEN EXPED YENSY OVER SAY. 11:16:46 WHICH BRINGS MY NEXT POINT. WHETHER IT'S THE FIRE WHERE 15 11:16:50 PEOPLE DIED, TIME AFTER TIME, IT'S SHOWN THAT BP CHOOSES EXPED 11:16:56 YENSY OVER SAMPLT YET, MR. HAYWARD, IN YOUR TESTIMONY 11:16:58 YOU WRITE, NONE OF US KNOWS WHY IT HAPPENED. 11:17:01 YET THIS SUBCOMMITTEE UNCOVERED FIVE AIR YEARS WHERE BP MADE 11:17:07 MISTAKES. I ADD UP THE HOURS THAT THESE 11:17:10 EXTRA PRECAUTIONARY ACTIONS WOULD HAVE TAKEN AND IT COMES TO 11:17:13 BE TO ABOUT THREE TO FOUR DAY, THAT'S ASSUMING MANY OF THESE 11:17:16 ACTIONS WOULD NOT HAVE OCCURRED SIMULTANEOUSLY, WHICH THEY COULD 11:17:20 HAVE. FOR AN EXTRA THREE DAYS OF WORK, 11:17:23 MEN'S LIVES WOULD HAVE BEEN SARCHD AN INDUSTRY RECORD OF 11:17:27 SAFETY AND RESPONSIBLE PRODUCTION WOULD STILL BE IN 11:17:30 PLACE WHICH BRINGS ME TO MY LAST POINT. 11:17:32 IN YOUR TESTIMONY, MR. HAYWARD, YOU SAY THIS INCIDENT KAUL $INTO 11:17:36 QUESTION WHETHER THE OIL AND GAS INDUSTRY DID EXPLORE FOR OIL AND 11:17:39 GAS IN SAFER MORE RELIABLE WAYS AND WHAT THE APPROPRIATE 11:17:43 REGULATORY FRAMEWORK FOR THE INDUSTRY SHOULD BE. 11:17:45 MR. HAYWARD, THE DECISIONS MADE BY HANDFUL OF BP INDIVIDUALS 11:17:49 CALLED THIS INTO QUESTION, NOT THIS ACCIDENT, AND YOU SHOULD 11:17:52 TAKE THE RESPONSIBILITY FOR THE WORKERS WHO DID NOTHING WRONG 11:17:55 AND ARE NOW LOSING THEIR JOBS. AND MR. CHAIRMAN, I YIELD BACK 11:17:59 MY TIME. THANK YOU, MR. GREEN. 11:18:02 MISS SUTTON FOR AROUND OPENING STATEMENT. 11:18:04 THREE MINUTE, PLEASE. THANK YOU, CHAIRMAN STUPAK. 11:18:07 IT'S BEEN NEARLY TWO MONTHS SINCE THE EXPLOSION OF THE DEEP 11:18:11 WATER HORIZON DRILLING RIG RESULTING IN THE DEATH S OF 11 11:18:16 WORKERS AND INJURED ADDITIONAL WORKERS. 11:18:19 SINCE THEN, WE'VE WITNESSED THE WORST ENVIRONMENTAL DISASTER IN 11:18:22 OUR NATION'S HISTORY, THAT CONTINUES TO POUR AN ESTIMATED 11:18:27 60,000 BARRELS OF OIL A DAY INTO THE GULF OF MEXICO. 11:18:28 THAT HAS LED TO OVER 66,000 VICTIMS FILING CLAIMS TO RECEIVE 11:18:35 COMPENSATION. THROUGH THIS SUBCOMMITTEE'S 11:18:36 WORK, SEVERAL ALARMING DECISIONS BY BP HAVE COME TO LIGHT TO SAVE 11:18:41 MONEY AND TIME. IT'S UNCONSCIONABLE WHEN 11:18:45 COMPANIES PAY MORE ATTENTION TO THEIR COMFORTS AND THEIR PROFITS 11:18:48 THAN TO THEIR OWN WORKERS' SAFETY AND TO OUR ENVIRONMENT. 11:18:53 AT OUR LAST HEARING ONE WITNESS FROM TRANSOCEAN TESTIFIED THAT A 11:18:57 DUPLICATE BLOWOUT PREVENTER SYSTEM COMFORTS ROUGH $15 11:19:04 MILLION NOT USED ON THE DEEP WATER HORIZON RIG. 11:19:07 BP ALSO UTILIZED A RISKY OPTION FOR STEEL TUBING SAVING $7 11:19:12 MILLION. BP DID NOT CIRCULATE DRILLING 11:19:15 MUD OR SECURE CASING HANGERS BETWEEN BIOPSIES OF DIFFERENT 11:19:20 DIME TERSE AND CRITICAL SIGNALS WERE BRUSHED ASIDE. 11:19:23 WHEN STANDARD METHODS WERE NOT FOLLOWED TO CENTER THE STEEL 11:19:26 PIPE IN THE DRILL HOLE, ONE OF BP'S OPERATIONS DRILLING 11:19:30 ENGINEERS REMARKED IN AN E-MAIL, QUOTE, WHO CARES? 11:19:36 IT'S DONE. END OF STORY. 11:19:39 BUT THESE CUT CORNERS HAVE BEEN ANYTHING BUT THE END OF THE 11:19:42 STORY. AS THE WORKERS AND VOLUNTEERS 11:19:44 FROM AROUND THE COUNTRY HELP CLEAN UP THE OIL FROM THE 11:19:47 DISASTER, MANY ARE BECOMING ILL. BETWEEN APRIL 22 AND JUNE 10, 8 11:19:59 485 OF BP'S OWN EMPLOYEES HAVE BEEN ILL. 11:20:04 AND THE MONEY HAS LONG BEEN LOST AS THEY ALREADY PAID $81 MILLION 11:20:09 IN CLAIMS. MR. HAYWARD, LIKE MANY 11:20:11 AMERICANS, I FEEL PHYSICALLY SICK WHEN I SEE THE CLIPS OF THE 11:20:17 OIL GUSHING IN THE GULF. WITNESSING THE DEVASTATION OF 11:20:19 OUR WATERS AND OUR COAST. AND THE WILDLIFE. 11:20:24 THINKING ABOUT THE LIVES OF THE WORKERS KILLED. 11:20:27 AND HEARING AND SEEING THE PAIN IN THE FACE AND THE HEARTS OF 11:20:31 THE PEOPLE, THE FAMILIES, THE SMALL BUSINESSES, THE FISHERMEN 11:20:36 AND OTHERS IN THE GULF. ALL CONSEQUENCE OF THIS 11:20:41 CATASTROPHE. THIS CULTURE OF CARELESSNESS AND 11:20:44 TAKING SHORTCUTS TO MAXIMIZE PROFITS AT THE EXPENSE OF 11:20:50 SAFETY, THIS COME WHAT MAY, WE'LL CROSS THAT BRIDGE WHEN WE 11:20:54 COME TO IT ATTITUDE IS UNACCEPT ABILITY, IT'S OUTRAGEOUS. 11:20:58 BP MUST BE ACCOUNTABLE FOR THE CONSEQUENCES OF THAT APPROACH 11:21:01 AND WE MUST TAKE ACTIONS NECESSARY ON BEHALF OF THE 11:21:05 AMERICAN PEOPLE TO MAKE SURE THAT SUCH A RECKLESS APPROACH 11:21:09 WILL BE FOREVER ABANDONED. THE RISKS AND COSTS TO OUR 11:21:13 ENVIRONMENT AND TO THE WORKERS IN THE GULF COAST, TO THE 11:21:16 WORKERS THROUGHOUT OUR ECONOMY ARE SIMPLY TOO GREAT TO ALLOW 11:21:19 OTHERWISE. I YIELD BACK. 11:21:23 THANK YOU, MISS SUTTON THAT CONCLUDES THE OPENING STATEMENTS 11:21:27 OF ALL MEMBERS OF OUR SUBCOMMITTEE. 11:21:29 AS I NOTED IN THE OPENING, AS I NOTED IN THE OPENING, WE HAVE 11:21:33 MEMBERS OF THE FULL COMMITTEE HERE, I WOULD LIKE TO RECOGNIZE 11:21:36 THEM. THEY WILL BE ALLOWED TO ASK 11:21:38 QUESTIONS BY ORDER OF SENIORITY. M 11:21:44 MR. ENSLY IS HERE. MISS CAST, MR. GONZALEZ, MISS 11:21:50 CAPPS, MR. HARMON, MS. WIENER, AND MR. SCALISE. 11:21:59 THEY ALSO HOST THE FIELD HEARING IN NEW ORLEANS, WE HAD NINE 11:22:05 MEMBERS GO DOWN IN ONE OF THE LARGEST FIELD HEARINGS WE'VE HAD 11:22:08 SO YOU CAN SEE THE INTEREST HERE. 11:22:11 I ALSO NOTE, MISS JACKSON LEE IS WITH US, NOT A MEMBER OF 11:22:14 THE COMMITTEE, SHE WILL NOT BE ALLOWED TO ASK QUESTION, BUT WE 11:22:19 WELCOME HER AND SHE'S SAT IN ON PREVIOUS HEARINGS WE'VE HAD. 11:22:22 SO OUR FIRST WITNESS IS MR. TONY HIGH HAYWARD WHO IS THE CHIEF 11:22:29 EXECUTIVE OFFICER OF BP PLC. YOU HAVE A RIGHT TO BE ADVISED 11:22:40 BY COUNSEL DURING YOUR TESTIMONY. 11:22:42 DO YOU WISH TO BE REPRESENTED BY LEGAL COUNSEL? 11:22:45 I'M SORRY, YOU HAVE TO JUST PRESS THAT BUTTON RIGHT THERE, 11:22:49 SIR. POSITIVE DYE NOT. 11:22:51 WE ALSO ASKED IF YOU WOULD HAVE A TECHNICAL PERSON WITH YOU 11:22:54 SO YOU COULD CONSULT IF WE ASK SOME QUESTIONS THAT YOU WANT TO 11:22:57 RUN IT BY YOUR TECHNICAL PERSON. DO YOU HAVE A TECHNICAL PERSON 11:23:01 WITH YOU? I DO. 11:23:02 COULD YOU STATE HIS NAME AND POSITION FOR THE RECORD, PLEASE. 11:23:05 MIKE ZANGEY, DRILLING ENGINEER. 11:23:08 DURING YOUR TESTIMONY, IF YOU WANT TO CONSULT WITH THAT 11:23:13 INDIVIDUAL, PLEASE LET US KNOW, WE'LL GIVE YOU A MOMENT TO DO SO 11:23:15 BEFORE YOU ANSWER BUT YOU'LL BE ONLY ONE WHO COULD ANSWER THE 11:23:19 QUESTION. IS THAT CLEAR? 11:23:21 THANK YOU. MR. HAYWARD, I'M GOING ASK YOU 11:23:23 TO PLEASE RISE RAISE YOUR RIGHT HAND AND TAKE THE OATH. 11:23:29 DO YOU SWEAR OR AFFIRM THE TESTIMONY YOU'RE ABOUT TO GIVE 11:23:33 TO BE THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH, THE 11:23:36 MATTER PENDING BEFORE THIS COMMITTEE. 11:23:38 I DO. LET THE RECORD REFLECT THE 11:23:40 WITNESS ANSWERED IN THE AFFIRMATIVE. 11:23:41 MR. HAYWARD, YOU ARE NOW UNDER OENCHT WE WOULD LIKE IT HEAR AN 11:23:45 OPENING STATEMENT FROM YOU. YOU MAY SUBMIT A LONGER 11:23:49 STATEMENT IF YOU WILL FOR THE RECORD BUT IF YOU WOULD, PLEASE 11:23:53 BEGIN YOUR OPENING STATEMENT AND LET ME AGAIN ON BEHALF OF ALL 11:23:55 MEMBERS OF THE COMMITTEE WE APPRECIATE WILLINGNESS TO APPEAR 11:24:01 HERE TODAY. CHAIRMAN STUPAK -- RANKING 11:24:07 MEMBERS. SUSPEND, PLEASE, SIR. 11:24:18 YOU NEED TO GO TO JAIL! [ INAUDIBLE ]. 11:24:27 MA'AM -- SHE'S A SHRIMPER. 11:24:55 HER WHOLE LIFE IS -- BE CAREFUL. 11:25:10 LET THEM GET THROUGH. BEFORE WE BEGIN AGAIN WITH 11:25:51 MR. HAYWARD, LET ME JUST AGAIN MENTION THOSE VIEWERS IN OUR 11:25:57 AUDIENCE, EMOTION RUN HIGH ON THIS ISSUE. 11:25:58 BUT WE HAVE A HEARING TO CONDUCT HERE. 11:26:00 WE'RE GOING TO CONDUCT OUR HEARING. 11:26:02 IT'S GOING TO BE DONE WITH PROPER DECORUM. 11:26:05 MR. HAYWARD, WHEN YOU'RE READY WE'RE GROWING TO START THE CLOCK 11:26:09 OVER, YOU MAY BEGIN. CHAIRMAN WAXMAN, CHAIRMAN 11:26:12 STUPAK, RANKING MEMBER BURGESS, MEMBERS OF THE COMMITTEE. 11:26:16 I'M TONY HAYWARD, CHIEF EXECUTIVE OF BP. 11:26:21 THE EXPLOSION AND FIRE ABOARD THE DEEP WATER HORIZON AND THE 11:26:24 RESULTING OIL SPILL IN THE GULF OF MEXICO -- 11:26:26 EXCUSE ME, MR. HAYWARD, I'M GOING TO ASK YOU TO PULL THAT 11:26:29 UP, SOME OF THE MEMBERS ARE HAVING TROUBLE HEARING IT'S 11:26:32 PROBABLY OVER THE CLICKING OF THE CAMERAS, BUT WE'RE VAG 11:26:34 TROUBLE HEARING YOU. IF YOU COULD JUST PULL IT 11:26:37 CLOSER. THE EXPLOSION AND FIRE ABOARD 11:26:39 THE DEEP WATER HORIZON AND THE RESULTING OIL SPILL IN THE GULF 11:26:42 OF MEXICO. NEVER SHOULD HAVE HAPPEN AND OAR 11:26:44 AND I'M DEEPLY SORRY THAT IT DID. 11:26:46 WHEN I LERNT THAT 11 MEN HAD LOST THEIR LIVES, I WAS 11:26:50 PERSONALLY DEVASTATED. THREE WEEK $AGO, I ATTENDED A 11:26:54 MEMORIAL SERVICE FOR THOSE MEN AND IT WAS A SHATTERING MOMENT. 11:26:59 I WANT TO OFFER MY SINCERE CONDOLENCE TO THEIR FRIENDS AND 11:27:04 FAMILIES. I CAN ONLY BEGIN TO IMAGINE 11:27:06 THEIR SORROW. I UNDERSTAND HOW SERIOUS THIS 11:27:11 SITUATION IS. IT IS A TRAGEDY. 11:27:14 I WANT TO SPEAK DIRECTLY TO THE SPEM WHO LIVE AND WORK IN THE 11:27:19 GULF REGION. I KNOW THIS INCIDENT HAS HAD A 11:27:23 PROFOUND IMPACT ON YOUR LIVES CAUSED GREAT TURMOIL AND I 11:27:29 DEEPLY REGRET THAT I ALSO DEEPLY REGRET THE IMPACT THE SPILL HAS 11:27:35 HAD ON THE ENVIRONMENT, THE WILD 11:27:41 LIFE AND THE ECOSYSTEM OF THE GULF. 11:27:44 I WANT TO ACKNOWLEDGE THE QUESTIONS THAT YOU AND PUBLIC 11:27:47 ARE RIGHTLY ASKING. HOW COULD THIS HAPPEN? 11:27:50 HOW DAMAGING IS THE SPILL TO THE ENVIRONMENT? 11:27:54 WHY IS IT TAKING SO LONG TO STOP THE FLOW OF OIL AND GAS INTO THE 11:27:58 GULF? WE DON'T YET HAVE ALL THE 11:27:59 ANSWERS TO THESE IMPORTANT QUESTIONS, BUT I HEAR AND 11:28:03 UNDERSTAND THE CONCERNS, FRUSTRATIONS AND ANGER BEING 11:28:08 VOICED ACROSS THE COUNTRY. AND I KNOW THAT THESE SENTIMENTS 11:28:12 WILL CONTINUE UNTIL THE LEAK IS STOP AND UNTIL WE PROVE THROUGH 11:28:15 OUR ACTIONS THAT WE ARE DOING THE RIGHT THING. 11:28:20 YESTERDAY, WE MET WITH THE PRESIDENT OF THE UNITED STATES 11:28:23 AND HIS SENIOR ADVISERS. WE DISCUSSED HOW BP COULD BE 11:28:27 MORE CONSTRUCTIVE IN THE GOVERNMENT'S DESIRE TO BRING 11:28:30 MORE COMFORT AND ASSURANCE TO THE PEOPLE OF THE GULF COAST 11:28:34 BEYOND THE ACTIVITY WE'VE ALREADY DONE. 11:28:39 WE AGREED IN THAT MEETING TO CREATE A $20 BILLION CLAIMS FUND 11:28:42 TO COMPENSATE THE AFFECTED PARTY AND PAY FOR THE CLEANUP AND 11:28:53 ENVIRONMENTAL MITIGATION SAID ALL ALONG WE WOULD PAY THESE 11:28:54 COMFORTS AND NOW THE AMERICAN PEOPLE CAN BE CONFIDENT THAT OUR 11:28:58 WORD IS GOOD. I'VE BEEN TO THE GULF COAST. 11:29:04 I'VE MET WITH FISHERMEN. BUSINESS OWNERS AND FAMILIES. 11:29:09 I UNDERSTAND WHAT THEY'RE GOING THROUGH AND I PROMISED THEM AS 11:29:15 I'M PROMISING YOU THAT WE WILL MAKE THIS RIGHT. 11:29:18 AFTER YESTERDAY'S ANNOUNCEMENT, I HOPE THAT THEY FEEL WE'RE ON 11:29:22 THE RIGHT TRACK. I'M HERE TODAY BECAUSE I HAVE A 11:29:28 RESPONSIBILITY TO THE AMERICAN PEOPLE TO DO MY BEST TO EXPLAIN 11:29:32 WHAT BMPLT P HAS DONE, IS DOING AND WILL DO IN THE FUTURE TO 11:29:37 RESPOND TO THIS TERRIBLE ACCIDENT. 11:29:41 FIRST, WE'RE DOING EVERYTHING WE CAN TO SECURE THE WELL AND IN 11:29:46 THE MEANTIME CONTAIN THE FLOW OF OIL. 11:29:48 WE'RE CURRENTLY DRILLING TWO RELIEF WELLS, WE BELIEVE THEY 11:29:52 REPRESENT THE ULTIMATE SOLUTION. WE EXPECT THIS TO BE COMPLETE IN 11:29:58 AUGUST. SIMULTANEOUSLY, WE'VE BEEN 11:30:01 WORKING ON PARALLEL STRATEGIES TO MINIMIZE OR STOP THE FLOW OF 11:30:04 OIL. WHILE NOT ALL HAVE BEEN MET WITH 11:30:06 SUCCESS, IT APPEARS THAT OUR LATEST CONTAINMENT EFFORT IS NOW 11:30:11 CONTAINING ABOUT 20,000 BARRELS A DAY. 11:30:13 BY THE END OF JUNE, WE EXPECT TO HAVE EQUIPMENT IN PLACE TO 11:30:19 HANDLE BETWEEN 40,000 AND 50,000 BARRELS A DAY. 11:30:26 SECOND, I'VE BEEN CLEAR THAT WE WILL PAY ALL NECESSARY CLEANUP 11:30:30 COMFORTS. WE'VE MOUNTED WHAT THE COAST 11:30:32 GUARD HAS RECOGNIZED AS THE LARGEST SPILL RESPONSE IN 11:30:36 HISTORY. WE'VE BEEN WORKING HARD ON THE 11:30:39 LEADERSHIP UNDER UNIFIED COMMAND TO STOP THE OIL FROM COMING 11:30:45 ASHORE. WHILST WE'RE GRATEFUL THESE 11:30:47 EFFORTS ARE REDUCING THE IMPACTS OF THE SPILL, ANY OIL ON THE 11:30:50 SHORE IS DEEPLY DISTRESSING. WE WILL BE VIGILANT IN OUR 11:30:55 CLEANUP. THI,D AS I HAVE MADE CLEAR FROM 11:30:58 THE BEGINNING, WE WILL PAY ALL LEGITIMATE CLAIMS FOR LOSSES AND 11:31:00 DAMPS CAUSED BY THE SPILL. THOSE ARE NOT JUST WORDS. 11:31:05 WE'VE ALREADY PAID OUT MORE THAN $95 MILLION AND WE'VE ANNOUNCED 11:31:09 AN INDEPENDENT CLAIMS FACILITY HEADED BY KEN FEINBERG TO ENSURE 11:31:14 THE PROCESS IS AS FAIR, TRANSPARENT AND RAPID AS 11:31:20 POSSIBLE. FOURTH, WE NEED TO KNOW WHAT 11:31:22 WENT WRONG. SO THAT WE AS A COMPANY AND WE 11:31:26 AS AN INDUSTRY CAN DO BETTER. THAT IS WHY LESS THAN 24 HOURS 11:31:33 AFTER THE ACCIDENT I COMMISSIONED A NONPRIMPD 11:31:35 INVESTIGATION. DIE IT BECAUSE I WANT TO KNOW 11:31:37 WHAT HAPPENED AND I WANT TO SHARE THE RESULTS. 11:31:41 RIGHT NOW, IT'S SIMPLY TOO EARLY TO SAY WHAT CAUSED THE INCIDENT. 11:31:46 THERE IS STILL EXTENSIVE WORK TO DO. 11:31:48 A FULL ANSWER MUST AWAIT THE OUTCOME OF MULTIPLE 11:31:53 INVESTIGATIONS INCLUDING THE MARINE BOARD. 11:31:56 TO SUM UP, I UNDERSTAND THE SERIOUSNESS OF THE SITUATION AND 11:32:01 THE CONCERNS, FRUSTRATIONS AND FEARS THAT HAVE BEEN AND WILL 11:32:05 CONTINUE TO BE VOICED. I KNOW THAT ONLY ACTIONS AND 11:32:09 RESULTS, NOT MERE WORDS, ULTIMATELY CAN GIVE YOU THE 11:32:13 CONFIDENCE YOU SEEK. I GIVE MY PLEDGE AS THE LEADER 11:32:19 OF BP THAT WE WILL NOT REST UNTIL WE MAKE THIS RIGHT. 11:32:24 WE'RE A STRONG COMPANY AND NO RESOURCES WILL BE SPARED. 11:32:28 WE AND THE ENTIRE INDUSTRY WILL LEARN FROM THIS TERRIBLE EVENT 11:32:34 AND EMERGE STRONGER, SMARTER AND SAFER. 11:32:36 THANK YOU. THANK YOU, MR. HAYWARD. 11:32:46 ONE OF THE BAD PARTS OF CONDUCTING A HEARING WE GET 11:32:48 INTERRUPTED NOW AND THEN BY VOTES. 11:32:50 WE HAVE THREE VOTES PENDING RIGHT NOW. 11:32:52 THERE'S I THINK ABOUT TEN MINUTES REMAINING ON THIS VOTE. 11:32:56 I WOULD SUGGEST INSTEAD OF TRYING TO GET IN THE QUESTIONS, 11:32:58 WE TAKE A BREAK RIGHT NOW, LET'S STAND IN RECESS FOR 30 MINUTE, 11:33:06 WE'LL COME BACK AT NOON AND CONTINUE THIS HEARING. 11:33:08 WELL START WITH QUESTIONS ALL THE MEMBERS. 11:33:10 OKAY? THIS COMMITTEE WILL BE IN RECESS 11:33:13 UNTIL 12 NOON.
House Energy Hearing with Tony Hayward / Committee / 1100-1200
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 11:00:00 MOST UPSETTING ABOUT THIS TRAVESTY IS THAT IT COULD HAVE 11:00:01 BEEN AVOIDED. AS THE ONGOING INVESTIGATION BY 11:00:04 THIS COMMITTEE HAS ALREADY DISCOVERED, BP EXECUTIVES CREATE 11:00:07 AND ATMOSPHERE WHERE SAFETY CONCERNS WERE IGNORED IN ORDER 11:00:12 TO ENSURE THAT THE COMPANY'S ALREADY STAGGERING PROFITS THIS 11:00:15 YEAR, APPROXIMATELY $93 MILLION A DAY IN THE FIRST QUARTER 11:00:20 CONTINUED UNABATED. THIS APPALLING DISREGARD FOR THE 11:00:23 GULF COAST AND ITS INHABITANTS IS ONE OF THE MOST SHAMEFUL 11:00:28 ACTEDS BY A CORPORATION IN AMERICAN HISTORY. 11:00:31 IT'S THE MOST SIGNIFICANT EXAMPLE OF BP'S DISREGARD FOR 11:00:34 THE ENVIRONMENT AND WELL BEING OF ITS WORKERS. 11:00:38 A REPORT PUBLISHED BY THE CENTER FOR PUBLIC INTEGRITY FOUND THAT 11:00:42 BETWEEN JUNE 2007 AND FEBRUARY 2010, BP RECEIVED TOTAL OF 862 11:00:49 CITATION FROM THE OCCUPATIONAL SAFETY AND HEALTH 11:00:51 ADMINISTRATION, OF THOSE A STAGGERING 76 WERE' GRECIAN AND 11:00:57 WILL WILFUL. COMPARED WITH EIGHT AT THE TWO 11:01:01 OIL COMPANIES TIED FOR SECOND PLACE. 11:01:03 THIS PATTERN OF BEHAVIOR CONTINUED IN THE SPILL'S 11:01:06 AFTERMATH. I HOLD IN MY HAND A DOCUMENT 11:01:10 CALLED VOLUNTARY WAIVER OF RELEASE THAT BP MADE UNEMPLOYED 11:01:15 FISHERMAN SIGN BEFORE THEY COULD BE HIRED FOR SPILL CLEANUP T 11:01:19 STATES I HEREBY AGREE ON BEHALF OF MYSELF AND MY REPRESENTATIONS 11:01:24 TO HOLD HARMLESS INDEMNY IF I AND FOREVER DISCHARGE THE BP 11:01:31 EXPLORATION PRODUCTION INC. FROM ALL CLAIMS AND DAMAGES THAT I OR 11:01:35 MY REPRESENTATIVES MAY HAVE WITH REGARD TO THE PARTICIPATION IN 11:01:38 THE SPILL RESPONSE ACTIVITIES. I KNOW THAT YOU SAID THIS WAS AN 11:01:42 EARLY MISSTEP AND THAT THIS WAS JUST A STANDARD DOCUMENT, BUT 11:01:45 THIS IS WAS THE FIRST RESPONSE THAT YOU HAD TO PEOPLE THAT WERE 11:01:51 HIRED. AND OUTRAGE DOES NOT BEGIN TO 11:01:53 EXPRESS MY FEELING. THESE ARE PEOPLE WHO ARE 11:01:55 UNEMPLOYED BECAUSE OF THE RECKLESSNESS OF BP, FORCED TO 11:02:00 TAKE JOBS CLEANING UP BP. 'S MESS IN ORDER TO SURVIVE, YET 11:02:03 TO QUALIFY FOR THOSE JOBS THEY HAD TO HOLD BP HARMLESS FOR 11:02:07 EVERYONE FURTHER DAMAGES THEY MAY SUFFER IN BP'S EMPLOY. 11:02:11 THIS FROM A COMPANY THAT MADE $93 MILLION A DAY. 11:02:17 FORTUNATELY A COURT TRUMPED YOUR FANCY LAWYERS WHO WROTE THIS 11:02:19 DOCUMENT BUT STILL IT BEGS THE QUESTION HOW COULD YOU DO THAT? 11:02:23 I'M GLAD THAT YOU'RE HERE, MR. HAYWARD. 11:02:26 I SKBEKTS YOU TO EXPLAIN WHY YOUR COMPANY HAS OPERATED IN 11:02:29 SUCH A WHOLLY UNACCEPTABLE MANNER. 11:02:33 IN THE FINAL ANALYSIS THE SIMPLE FACT REMAINS IF BP THOUGHT MORE 11:02:36 ABOUT THE RESIDENTS AS THESE WIDOWS ASSISTANT WORKERS, AS 11:02:40 THESE WIDOWS SAID, RATHER THAN THE ALREADY EXORBITANT PROFITS 11:02:47 OF ITS SHAREHOLDERS, WE WOULD NOT BE HERE TODAY. 11:02:49 I YIELD BACK. MR. LOTTA S FOR AN OPENING 11:02:55 STATEMENT. THANK YOU, MR. CHAIRMAN. 11:02:57 RANKING MEMBER BURGESS, I WANT TO THANK YOU FOR HOLDING THIS 11:03:01 SUBCOMMITTEE HEARING ON THE ROLE OF BP IN THE OIL RIG EXPLOSION 11:03:05 AND THE ONGOING EXPLOSION IN THE GULF OF MEXICO. 11:03:10 I ALSO WANT TO EXTEND MY HEARTFELT CONDOLENCE TO THE 11:03:13 FAMILIES OF THOSE WHO LOVE ONE LUVED ONES AN HAVE BEEN INJURED. 11:03:16 THE SCALE OF THE SPILL AND IMPACT ON THE GULF ECONOMY 11:03:19 ENVIRONMENT DEMAND A THOROUGH EXAMINATION OF BP'S ACTIONS AND 11:03:24 INACTIONS AS WELL AS BP'S CURRENT AND FUTURE PLANS. 11:03:28 THE FLOW OF OIL MUST BE STOPPED. EVERY DAY ANYWHERE FROM 35,000 11:03:33 TO 60,000 BARRELS ARE SPILLING INTO THE GULF AND ONLY 15,000 11:03:37 BARRELS A DAY ARE BEING CAPTURED. 11:03:39 THE ENVIRONMENTAL EFFECTS ON THE OIL SPILL ARE HARMING SHORELINES 11:03:43 AND COASTAL WETLANDS, FISHERIES AN FISHERY HABITATS AS WELL AS 11:03:48 SEA MAMMALS AED TURTLES. WHAT'S WORSE, WE WILL NOT FULLY 11:03:53 KNOW THE ECOLOGICAL RAMIFICATIONS OF THE OIL SPILL 11:03:56 UNTIL YEARS DOWN THE ROAD. FURTHER MORE, BUSINESSES 11:03:59 SUFFERING GREAT LOSSES INCLUDING JOB AND REVENUES DEPENDENT ON 11:04:04 TOURISM ARE BEING THREATENED. THE NOAA ANNOUNCED A REVISED 11:04:09 FISHING CLOSURE IN THE OIL AFFECTED PORTION OF THE GULF OF 11:04:13 MEXICO ACCOUNTING FOR 33% OF THE GULF OF MEXICO'S EXCLUSIVE 11:04:17 ECONOMIC ZONE. AS OIL CONTINUES TO FLOW THIS 11:04:19 YEAH IS SURE TONE LARGE FURTHER EXASPERATING THE ECONOMIC 11:04:25 DAMAGE. A RECENT ECONOMIC IMPACT STUDY 11:04:28 BY THE AMERICAN SPORT FISHING ASSOCIATION INDICATED THAT THE 11:04:33 ENFIRE GULF WERE CLOSED TO RECREATIONAL FISHING FROM MAY 11:04:36 THROUGH AUGUST. LEAVING $WIN.WIN BILLION OF 11:04:40 REVENUE WHICH SUPPORTS $2.5 BILLION IN TOTAL SALES, AND 11:04:55 18,785 JOBS. THIS IS DEVASTATING TO AN AREA 11:04:58 THAT HAS ALREADY SUFFERED GREATLY FROM THE AFTERMATH OF 11:05:01 NATURAL DISASTERS. AMERICANS CONTINUE BE TO BE 11:05:04 FRUSTRATED FROM THE LACK OF SOLUTION FROM ALL PARTIES 11:05:06 INVOLVED AND I'M INTERESTED TO HEAR MORE ABOUT THE COORDINATED 11:05:09 EFFORTS BETWEEN BP AND THE ADMINISTRATION. 11:05:11 THE ECONOMIC AND ENVIRONMENTAL MAGNITUDE OF THIS DISASTER 11:05:14 NECESSITATES A CLEAR UNDERSTANDING OF WHAT WENT WRONG 11:05:16 AND BP NEEDS TON HELD ACCOUNTABLE FOR THE DISASTER. 11:05:21 I ALSO LOOK FORWARD TO HAVING MMS AND THE DEPARTMENT OF 11:05:25 INTERIOR BEFORE THIS SUBCOMMITTEE TO ALSO FOR THEM TO 11:05:28 ANSWER SOME TOUGH QUESTIONING. I LOOK FORWARD TO THE HEARING, 11:05:31 MR. HAYWARD'S TESTIMONY AND I YIELD BACK THE REMAINDER OF MY 11:05:34 TIME. THANK YOU. 11:05:37 THANKS, MR. LATTA MR. ROSS, THREE MINUTES OPENING STATEMENT, 11:05:42 PLEASE, SIR. THANK YOU. 11:05:44 CHAIRMAN STUPAK FOR HOLDING TODAY'S HEARING TO EXAMINE BP'S 11:05:48 ACTIONS AND DECISIONS THAT DIRECTLY LED TO THE TLACH MAGIC 11:05:53 EXPLOSION AND OIL SPILL THAT CONTINUES TO GUSH AND WREAK 11:05:58 HAVOC ON THE GULF COAST. AT A RATE OF UP TO 1700 GALLONS 11:06:10 WE ARE MINUTE. SINCE THIS HEARING BEGAN A 11:06:12 LITTLE OVER AN HOUR AGO, UP TO 112,847 GALLONS HAVE BEEN DUMPED 11:06:21 INTO THE GULF. ON DAY 59 OF THIS ECONOMIC AND 11:06:26 ENVIRONMENTAL DISASTER, WITH UP TO 60,000 BARRELS OF DAY 11:06:30 SPILLING INTO THE GULF, I CONTINUE TO BE FRUSTRATED AND 11:06:33 DOWNRIGHT ANGRY BY BP'S RESPONSE AND LACK OF A CLEAR AND 11:06:37 PRODUCTIVE PLAN TO STOP THE LEAK OR EFFICIENTLY CLEAN UP THE OIL 11:06:41 THAT IS DESTROYING THE ECOSYSTEMS THAT SURROUND THE 11:06:45 GULF. REPORTS HAVE SURFACED REVEALING 11:06:48 THAT IN THE DAYS AND WEEKS BEFORE THE EXPLOSION BP 11:06:51 KNOWINGLY MADE A NUMBER OF DECISIONS THAT INCREASED THE 11:06:55 DANGER OF AN EXPLOSION AND SPILL OCCURRING. 11:06:59 IT SEEMS APPARENT THAT BP PUT PROFIT BEFORE SAFETY, MANY 11:07:05 PEOPLE ARE DEAD. MILLIONS OF GALLONS OF OIL 11:07:08 CONTINUE TO SPEW INTO THE GULF. I'M HOPEFUL THAT MR. HAYWARD CAN 11:07:14 EXPLAIN TODAY WHY THESE DECISIONS WERE MADE, HOW THIS 11:07:17 COMPANY'S ACTIONS LED TO THIS DISASTER AND WHAT THEY ARE DOING 11:07:20 TO REMEDY IT. AS OIL FLOATS INTO THE MARSHES 11:07:25 AND ONTO THE BEACHES, AS SHRIMPING VESSELS SIT TIED TO 11:07:30 DOCKS, AS RESTAURANTS AND BUSINESSES DURING THEIR PEAK 11:07:33 SEASON REMAIN WITHOUT TOURISTS AND CUSTOMERS, AND AS HOMEOWNERS 11:07:39 SEE THEIR PROPERTY VALUES PLUMMET, THE PEOPLE AND WILD 11:07:43 LIFE OF THE GULF COAST WAIT AND WONDER ABOUT HOW EXTENSIVE THE 11:07:50 DAMAGE TO THE ECOSYSTEM OR THE ECONOMY WILL BE. 11:07:55 THIS BILL IS NOT ONLY AFFECTING THE GULF COAST, THE JOBS AND 11:08:00 ECONOMIES OF THIS SURROUNDING STATES ARE HURTING AS WELL. 11:08:04 MY STATE OF ARKANSAS BORDERS LOUISIANA. 11:08:08 AND MANY OF MY CONSTITUENTS, PEOPLE I KNOW IN MY HOMETOWN 11:08:13 WORK ON OFFSHORE RIGS. THESE JOBS ARE ALSO AT RISK AND 11:08:17 I HOPE BP WILL TAKE RESPONSIBILITY FOR ALL THOSE WHO 11:08:22 ARE AFFECTED BY THIS SPILL REGARDLESS OF WHERE THEY LIVE. 11:08:26 AND WORK TO HELP PULL THEM THROUGH THIS DISASTER AS WELL. 11:08:30 THIS SPILL IS A WAKE-UP CALL THAT MUST RESULT IN BETTER 11:08:35 GOVERNMENT OVERSIGHT. MORE ADVANCED TECHNOLOGY, 11:08:37 STRONGER RESPONSE PLANS AND IMPROVED SAFETY STANDARDS. 11:08:42 NOT ONLY BY BP AND EVERY OIL COMPANY IN AMERICA BUT ALSO BY 11:08:47 OUR GOVERNMENT. ABOVE ALL, THIS DISASTER IS A 11:08:50 LEARNING EXPERIENCE THAT WILL HELP US PREVENT A TRAGEDY LIKE 11:08:53 THIS FROM EVER HAPPENING AGAIN. AND I'M HOPEFUL THIS HEARING CAN 11:08:57 PROVIDE THE ANSWER AND SOLUTIONS NECESSARY TO BEGIN THAT PROCESS. 11:09:03 MR. HAYWARD, I TRULY HOPE THAT YOU'LL GIVE US OPEN AND HONEST 11:09:06 ANSWERS TODAY AND NOT THOSE PREPARED BY YOUR LEGAL TEAM. 11:09:10 WITH THAT MR. CHAIRMAN, I YIELD BACK. 11:09:13 THANK YOU, MR. ROSS. NEXT I WOULD LIKE TO CALL ON 11:09:16 MISS CHRISTENSEN FROM VIRGIN ISLANDS FOR AN OPENING 11:09:19 STATEMENT, PLEASE. THANK YOU, MR. CHAIRMAN. 11:09:21 AND THANK YOU FOR HOLDING THIS IMPORTANT HEARING. 11:09:23 THE EXPLOSION ON THE DEEP WATER PLATFORM AND THE SUB SUBSEQUENT 11:09:27 OUTPOURING OF HUNDREDS OF THOUSANDS OF GALLONS OF OIL INTO 11:09:30 ONE OF THE MOST SENSITIVE AND IMPORTANT BODIES OF WATER IN 11:09:33 THIS COUNTRY IS INDEED A TRAGIC ACCIDENT WHICH CAUSED 11 DEATHS, 11:09:38 MANY INJURIES LEFT-HAND HAVE DEEP, LONG LASTING DEBILITATING 11:09:42 AND EXPENSIVE REPERCUSSION, THE PEOPLE OF THIS COUNTRY NEED IT 11:09:45 KNOW WHAT HAPPENED AND WHO IS RESPONSIBLE. 11:09:48 ALL THAT HAS TRANSPIRED SINCE APRIL 20th SAYS TO ME THAT NOT 11:09:52 ONLY BP BUT NO COUNTRY DRILLING IN OUR OUTER CONTINENTAL SHELF 11:09:56 IS PREPARED TO DEAL WITH A SPILL AT THIS DEPTH. 11:09:59 THEY'RE ALL, THERE USING THE BEST AVAILABLE TECHNOLOGY AND 11:10:05 STILL 59 DAYS LATER AN END IS NOT IN SIGHTS. 11:10:08 THIS IS NOT SKAEMENTABLE. WHAT HAS ALSO BECOME CLEAR IS 11:10:11 THAT WHILE BP REPORTEDLY USED SHORTCUTS THEY WERE WARNED NOT 11:10:15 TO WHICH MAY HAVE CAUSED THE SPILL, THEY'RE NOT THE ONLY ONES 11:10:20 AT FAULT. THEY COULD NOT HAVE CUT THOSE 11:10:22 CORNERS WITHOUT THE COMPLICITY OF EMPLOYEES AT SOME OF THE 11:10:26 RESPONSIBLE GOVERNMENT AGENCIES WHO DID NOT DO THEIR JOB. 11:10:29 WE'RE ALL APPALLED THAT LIVES ARE LOST BY DECISIONS MADE 11:10:32 APPARENTLY IN THE INTEREST OF CUTTING COSTS, BUT ALSO BY THE 11:10:35 LACK OF ADEQUATE PREPARATION FOR THIS WORST CASE SCENARIO WE ARE 11:10:40 FACING TODAY. THE FACT THAT THE INDUSTRY DOES 11:10:42 NOT ENSURE THAT RESPONSE TECHNOLOGY KEPT PACE WITH DEEPER 11:10:46 DRILL WELLS LAYS BLAME AT ALL OF THEIR FEET, BUT WE CAN STILL NOT 11:10:50 IGNORE THE DECISIONS BIMADE BY BP, IF THEY HAD BEEN DIFFERENT 11:10:54 11 PEOPLE MIGHT STILL BE ALIVE TODAY. 11:10:58 WE WITH OUR CONGRESS ALONG WITH THE FRED WHO HAS HAD MORE OF HIS 11:11:02 SHARE OF CRISIS NOT OF HIS MAKING HAVE MAKE CHALLENGES AND 11:11:08 CRITICAL AHEAD. I HOPE THE MANY WHO DIED, THE 11:11:11 AFFECTED FAMILIES AND NOW WHO NOW DEPEND ON OCS PLATFORMS FOR 11:11:17 THEIR LIVELIHOOD, THIS AND OF THE HEARINGS WILL HELP US GO 11:11:21 BEYOND A KNEE-JERK REACTION TO DO THE RIGHT THING FOR THE 11:11:23 REGION AND OUR COUNTRY. THAT BP AND ANY OTHER 11:11:27 RESPONSIBLE PARTY WILL BE HELD FULLY ACCOUNTABLE AND 11:11:30 RESPONSIBLE AND THAT PETROLEUM AND NATURAL GAS COMPANIES WILL 11:11:33 LEARN IMPORTANT LESSONS TO ENSURE THIS DOES NOT HAPPEN 11:11:35 AGAIN. I WANT TO THANK YOU, MR. HAYWARD 11:11:38 FOR BEING HERE, I LOOK FORWARD TO YOUR TESTIMONY AND FULL 11:11:41 ANSWERS TO THE QUESTIONS WE WILL ASK ON BEHALF OF THE PEOPLE IN 11:11:43 THE REGION AND ON BEHALF OF THE AMERICAN PEOPLE. 11:11:46 I YIELD BACK. THANK YOU. 11:11:48 MR. WELCH, OPENING STATEMENT, PLEASE. 11:11:50 THANK YOU, MR. CHAIRMAN. MR. HAYWARD, IN THE 49 DAYS 11:11:55 SINCE THE DEEP WATER HORIZON EXPLOSION 'CAUSED THIS 11:12:00 EXTRAORDINARY ENVIRONMENTAL CATASTROPHE, WE'VE HEARD TIME 11:12:02 AND AGAIN FROM BP THIS WAS AN ABRATION, THE FACTS REGRETTABLY 11:12:08 TELL A DIFFERENT STORY. IN 2005, WHEN BP'S TEXAS CITY 11:12:13 OPERATION BLEW UP, 14 WORKERS LOST THEIR LIVES N 2006, A BP 11:12:17 OIL PIPELINE IN TEXAS RUPTURED AND SPILLED 200,000 GALLONS OF 11:12:23 CRUDE OIL N IN 2007, THE YEAR YOU BECAME CEO, THE BP 11:12:27 CORPORATION SETTLED A SERIES OF CRIMINAL CHARCHGS NOT CIVIL 11:12:30 CHARGE, KRILL UNANIMOUS CHARGE AND PAID $370 MILLION IN FINES. 11:12:36 ACCORDING TO RISK MET TRI, AN INDEPENDENT OKAY, BP HAS ONE OF 11:12:40 THE WORST HEALTH, ENVIRONMENT AND SAFETY RECORDS OF ANY 11:12:43 COMPANY IN THE WORLD N ONLY ONE YEAR, THE OCCUPATIONAL SAFETY 11:12:47 AND HEALTH ADMINISTRATION FOUND MORE THAN 700 VIOLATIONS AT BP'S 11:12:52 TEXAS CITY REFINERY AND BP PAID A RECORD $87 MILLION IN A FINE. 11:13:00 BP WAS CHARGED WITH PUTTING PROFITS BEFORE SAFETY. 11:13:02 EARLIER THIS YEAR, A REFINERY IN TOLEDO WAS FINED $3 MILLION FOR 11:13:10 WILLFUL SAFETY VIOLATIONS INCLUDING THE USE OF VALVES THAT 11:13:12 CONTRIBUTED TO THE TEXAS CITY BLAST. 11:13:13 FINALLY, OF COURSE, THE DEEP WATER HORIZON CATASTROPHE AND 11:13:17 MORE EVIDENCE THAT COMES IN, THE MORE IT'S CLEAR THAT THAT EVENT 11:13:20 WAS FORESEEABLE AND IT WAS AVOIDABLE. 11:13:23 AFTER THE EXPLOSION, BP SAID THERE WAS NO OIL LEAKING, THEN 11:13:28 IT SAID THERE WAS 1,000 BARRELS A DYE. 11:13:32 THEN 5,000, WE'RE NOW UP TO 60,000 BARRELS. 11:13:39 FOR 59 DAYS, BP HAS TOLD THE AMERICAN THIS WAS ABRATION. 11:13:56 IT'S DEJA VU AGAIN AND AGAIN AND AGAIN. 11:13:59 THE QUESTION MANY OF US HAVE IS WHETHER A CEO WHO HAS PRESIDED 11:14:04 OVER A COMPANY THAT HAS INCURRED $370 MILLION IN FINES, A COMPANY 11:14:12 WITH ONE OF THE WORST RECORDS IN THE WORLD FOR SAFETY AND 11:14:13 CONSISTENTLY PUTS MONEY AHEAD OF SAFETY, WHO'S PEERS INCLUDING 11:14:16 MR. TILLERSON FROM EXXONMOBIL WHO TESTIFIED WHERE YOU ARE TWO 11:14:20 DAYS AGO, SAID THEY NEVER, THAT THEY NEVER WOULD HAVE DRILLED A 11:14:25 WELL THE WAY BP DID AT DEEP WATER HORIZON AND WHO HAS CEOS 11:14:29 TO HASS PRESIDED OVER THE DESTRUCTION OF OVER $100 BILLION 11:14:36 IN SHAREHOLD EVER VALUE. DOES THAT LEADER CONTINUE TO 11:14:39 ENJOY AND HAVE A VALID CLAIM ON THE TRUST AND CONFIDENCE OF 11:14:44 EMPLOYEES, SHAREHOLDERS, PUBLIC REGULAORS AND MOST IMPORTANT 11:14:48 LIT FAMILIES AND SMALL BUSINESS OF THE GULF COAST? 11:14:51 OR IS IT TIME FRANKLY TO THAT CEO TO CONSIDER TO SUBMIT HIS 11:14:55 SAYS RIG NATION? I THANK YOU AND YIELD BACK. 11:14:59 THANK YOU. MR. GREENE FOR AN OPENING 11:15:01 STATEMENT, PLEASE. THANK YOU, MR. CHAIRMAN. 11:15:03 MR. HAYWARD, I APPRECIATE YOUR TESTIMONY OR BEING HERE THIS 11:15:06 MORNING. AND MOST PEOPLE ON THIS 11:15:08 COMMITTEE KNOW I'M A BIG SUPPORTER OF OUTER CONTINENTAL 11:15:11 SHELF DRILLING AND DOMESTIC ENERGY PRODUCTION. 11:15:15 AND I UNDERSTAND FROM YOUR TESTIMONY IN OUR OTHER HEARINGS 11:15:18 WE'VE HELD IN MEETINGS WITH THE ADMINISTRATION THAT EFFORTS TO 11:15:21 CAP THE WELL ARE GOING AS EXPEDITIOUSLY AS POSSIBLE 11:15:28 HOWEVER LIKE MANY OF MY COLLEAGUES HERE, I'M FRUSTRATED 11:15:30 THAT DID IT'S BEEN ALMOST TWO MONTHS AND WE STILL HAVE 11:15:34 THOUSANDS OF BARRELS OF CRUDE OIL GUSHING IN THE GULF OF 11:15:39 MEXICO. I'M FRUSTRATED BY THE THREAT OF 11:15:40 DISASTER IMPACTS OUR WILDLIFE AND COAST LINE. 11:15:45 I'M FRUSTRATED THAT ONE WELL OUT OF THOUSANDS OF WELLS IS 11:15:49 THREATENING MY CONSTITUENTS' LIVELY HOOD AND MOST COMMUNITIES 11:15:53 ON GULF COAST. LITERALLY FROM ALABAMA BACK TO 11:15:55 BROWNSVILLE, TEXAS. THIS DISASTER HAS CAUSED THE OIL 11:15:59 AND GAS INDUSTRY TO SHUT DOWN EVEN IF THE MORATORIUM DOES NOT 11:16:03 LAST SIX MONTHS IT WILL BE TOO LATE FOR MANY OF THESE FOLKS, 11:16:07 BUT THESE PEOPLE ARE NOT THE ONES TO BLAME. 11:16:09 THEY'RE THE HARD WORKING PEOPLE WITH A WORK ETHIC LIKE NONE 11:16:13 OTHER THAN TAKE THEIR RESPONSIBILITY ON THESE RIGS 11:16:15 SERIOUSLY. HOWEVER, KOORDING TO THE 11:16:18 INVESTIGATION THIS SUBCOMMITTEE CONDUCTED IT'S OBVIOUS MANY BP 11:16:21 OFFICIALS ON AND OFF THE RIG DID NOT TAKE THEIR RESPONSIBILITY OF 11:16:26 THIS RIG SERIOUSLY. HALLIBURTON WARNED THE DECISIONS 11:16:34 COULD LEAD TO SERIOUS PROBLEM AND NOW PEOPLE ARE LOSING THEIR 11:16:39 JOBS. THEY COULD HAVE BEEN PREVENTED 11:16:41 IF BMPLT P HAD NOT CHOSEN EXPED YENSY OVER SAY. 11:16:46 WHICH BRINGS MY NEXT POINT. WHETHER IT'S THE FIRE WHERE 15 11:16:50 PEOPLE DIED, TIME AFTER TIME, IT'S SHOWN THAT BP CHOOSES EXPED 11:16:56 YENSY OVER SAMPLT YET, MR. HAYWARD, IN YOUR TESTIMONY 11:16:58 YOU WRITE, NONE OF US KNOWS WHY IT HAPPENED. 11:17:01 YET THIS SUBCOMMITTEE UNCOVERED FIVE AIR YEARS WHERE BP MADE 11:17:07 MISTAKES. I ADD UP THE HOURS THAT THESE 11:17:10 EXTRA PRECAUTIONARY ACTIONS WOULD HAVE TAKEN AND IT COMES TO 11:17:13 BE TO ABOUT THREE TO FOUR DAY, THAT'S ASSUMING MANY OF THESE 11:17:16 ACTIONS WOULD NOT HAVE OCCURRED SIMULTANEOUSLY, WHICH THEY COULD 11:17:20 HAVE. FOR AN EXTRA THREE DAYS OF WORK, 11:17:23 MEN'S LIVES WOULD HAVE BEEN SARCHD AN INDUSTRY RECORD OF 11:17:27 SAFETY AND RESPONSIBLE PRODUCTION WOULD STILL BE IN 11:17:30 PLACE WHICH BRINGS ME TO MY LAST POINT. 11:17:32 IN YOUR TESTIMONY, MR. HAYWARD, YOU SAY THIS INCIDENT KAUL $INTO 11:17:36 QUESTION WHETHER THE OIL AND GAS INDUSTRY DID EXPLORE FOR OIL AND 11:17:39 GAS IN SAFER MORE RELIABLE WAYS AND WHAT THE APPROPRIATE 11:17:43 REGULATORY FRAMEWORK FOR THE INDUSTRY SHOULD BE. 11:17:45 MR. HAYWARD, THE DECISIONS MADE BY HANDFUL OF BP INDIVIDUALS 11:17:49 CALLED THIS INTO QUESTION, NOT THIS ACCIDENT, AND YOU SHOULD 11:17:52 TAKE THE RESPONSIBILITY FOR THE WORKERS WHO DID NOTHING WRONG 11:17:55 AND ARE NOW LOSING THEIR JOBS. AND MR. CHAIRMAN, I YIELD BACK 11:17:59 MY TIME. THANK YOU, MR. GREEN. 11:18:02 MISS SUTTON FOR AROUND OPENING STATEMENT. 11:18:04 THREE MINUTE, PLEASE. THANK YOU, CHAIRMAN STUPAK. 11:18:07 IT'S BEEN NEARLY TWO MONTHS SINCE THE EXPLOSION OF THE DEEP 11:18:11 WATER HORIZON DRILLING RIG RESULTING IN THE DEATH S OF 11 11:18:16 WORKERS AND INJURED ADDITIONAL WORKERS. 11:18:19 SINCE THEN, WE'VE WITNESSED THE WORST ENVIRONMENTAL DISASTER IN 11:18:22 OUR NATION'S HISTORY, THAT CONTINUES TO POUR AN ESTIMATED 11:18:27 60,000 BARRELS OF OIL A DAY INTO THE GULF OF MEXICO. 11:18:28 THAT HAS LED TO OVER 66,000 VICTIMS FILING CLAIMS TO RECEIVE 11:18:35 COMPENSATION. THROUGH THIS SUBCOMMITTEE'S 11:18:36 WORK, SEVERAL ALARMING DECISIONS BY BP HAVE COME TO LIGHT TO SAVE 11:18:41 MONEY AND TIME. IT'S UNCONSCIONABLE WHEN 11:18:45 COMPANIES PAY MORE ATTENTION TO THEIR COMFORTS AND THEIR PROFITS 11:18:48 THAN TO THEIR OWN WORKERS' SAFETY AND TO OUR ENVIRONMENT. 11:18:53 AT OUR LAST HEARING ONE WITNESS FROM TRANSOCEAN TESTIFIED THAT A 11:18:57 DUPLICATE BLOWOUT PREVENTER SYSTEM COMFORTS ROUGH $15 11:19:04 MILLION NOT USED ON THE DEEP WATER HORIZON RIG. 11:19:07 BP ALSO UTILIZED A RISKY OPTION FOR STEEL TUBING SAVING $7 11:19:12 MILLION. BP DID NOT CIRCULATE DRILLING 11:19:15 MUD OR SECURE CASING HANGERS BETWEEN BIOPSIES OF DIFFERENT 11:19:20 DIME TERSE AND CRITICAL SIGNALS WERE BRUSHED ASIDE. 11:19:23 WHEN STANDARD METHODS WERE NOT FOLLOWED TO CENTER THE STEEL 11:19:26 PIPE IN THE DRILL HOLE, ONE OF BP'S OPERATIONS DRILLING 11:19:30 ENGINEERS REMARKED IN AN E-MAIL, QUOTE, WHO CARES? 11:19:36 IT'S DONE. END OF STORY. 11:19:39 BUT THESE CUT CORNERS HAVE BEEN ANYTHING BUT THE END OF THE 11:19:42 STORY. AS THE WORKERS AND VOLUNTEERS 11:19:44 FROM AROUND THE COUNTRY HELP CLEAN UP THE OIL FROM THE 11:19:47 DISASTER, MANY ARE BECOMING ILL. BETWEEN APRIL 22 AND JUNE 10, 8 11:19:59 485 OF BP'S OWN EMPLOYEES HAVE BEEN ILL. 11:20:04 AND THE MONEY HAS LONG BEEN LOST AS THEY ALREADY PAID $81 MILLION 11:20:09 IN CLAIMS. MR. HAYWARD, LIKE MANY 11:20:11 AMERICANS, I FEEL PHYSICALLY SICK WHEN I SEE THE CLIPS OF THE 11:20:17 OIL GUSHING IN THE GULF. WITNESSING THE DEVASTATION OF 11:20:19 OUR WATERS AND OUR COAST. AND THE WILDLIFE. 11:20:24 THINKING ABOUT THE LIVES OF THE WORKERS KILLED. 11:20:27 AND HEARING AND SEEING THE PAIN IN THE FACE AND THE HEARTS OF 11:20:31 THE PEOPLE, THE FAMILIES, THE SMALL BUSINESSES, THE FISHERMEN 11:20:36 AND OTHERS IN THE GULF. ALL CONSEQUENCE OF THIS 11:20:41 CATASTROPHE. THIS CULTURE OF CARELESSNESS AND 11:20:44 TAKING SHORTCUTS TO MAXIMIZE PROFITS AT THE EXPENSE OF 11:20:50 SAFETY, THIS COME WHAT MAY, WE'LL CROSS THAT BRIDGE WHEN WE 11:20:54 COME TO IT ATTITUDE IS UNACCEPT ABILITY, IT'S OUTRAGEOUS. 11:20:58 BP MUST BE ACCOUNTABLE FOR THE CONSEQUENCES OF THAT APPROACH 11:21:01 AND WE MUST TAKE ACTIONS NECESSARY ON BEHALF OF THE 11:21:05 AMERICAN PEOPLE TO MAKE SURE THAT SUCH A RECKLESS APPROACH 11:21:09 WILL BE FOREVER ABANDONED. THE RISKS AND COSTS TO OUR 11:21:13 ENVIRONMENT AND TO THE WORKERS IN THE GULF COAST, TO THE 11:21:16 WORKERS THROUGHOUT OUR ECONOMY ARE SIMPLY TOO GREAT TO ALLOW 11:21:19 OTHERWISE. I YIELD BACK. 11:21:23 THANK YOU, MISS SUTTON THAT CONCLUDES THE OPENING STATEMENTS 11:21:27 OF ALL MEMBERS OF OUR SUBCOMMITTEE. 11:21:29 AS I NOTED IN THE OPENING, AS I NOTED IN THE OPENING, WE HAVE 11:21:33 MEMBERS OF THE FULL COMMITTEE HERE, I WOULD LIKE TO RECOGNIZE 11:21:36 THEM. THEY WILL BE ALLOWED TO ASK 11:21:38 QUESTIONS BY ORDER OF SENIORITY. M 11:21:44 MR. ENSLY IS HERE. MISS CAST, MR. GONZALEZ, MISS 11:21:50 CAPPS, MR. HARMON, MS. WIENER, AND MR. SCALISE. 11:21:59 THEY ALSO HOST THE FIELD HEARING IN NEW ORLEANS, WE HAD NINE 11:22:05 MEMBERS GO DOWN IN ONE OF THE LARGEST FIELD HEARINGS WE'VE HAD 11:22:08 SO YOU CAN SEE THE INTEREST HERE. 11:22:11 I ALSO NOTE, MISS JACKSON LEE IS WITH US, NOT A MEMBER OF 11:22:14 THE COMMITTEE, SHE WILL NOT BE ALLOWED TO ASK QUESTION, BUT WE 11:22:19 WELCOME HER AND SHE'S SAT IN ON PREVIOUS HEARINGS WE'VE HAD. 11:22:22 SO OUR FIRST WITNESS IS MR. TONY HIGH HAYWARD WHO IS THE CHIEF 11:22:29 EXECUTIVE OFFICER OF BP PLC. YOU HAVE A RIGHT TO BE ADVISED 11:22:40 BY COUNSEL DURING YOUR TESTIMONY. 11:22:42 DO YOU WISH TO BE REPRESENTED BY LEGAL COUNSEL? 11:22:45 I'M SORRY, YOU HAVE TO JUST PRESS THAT BUTTON RIGHT THERE, 11:22:49 SIR. POSITIVE DYE NOT. 11:22:51 WE ALSO ASKED IF YOU WOULD HAVE A TECHNICAL PERSON WITH YOU 11:22:54 SO YOU COULD CONSULT IF WE ASK SOME QUESTIONS THAT YOU WANT TO 11:22:57 RUN IT BY YOUR TECHNICAL PERSON. DO YOU HAVE A TECHNICAL PERSON 11:23:01 WITH YOU? I DO. 11:23:02 COULD YOU STATE HIS NAME AND POSITION FOR THE RECORD, PLEASE. 11:23:05 MIKE ZANGEY, DRILLING ENGINEER. 11:23:08 DURING YOUR TESTIMONY, IF YOU WANT TO CONSULT WITH THAT 11:23:13 INDIVIDUAL, PLEASE LET US KNOW, WE'LL GIVE YOU A MOMENT TO DO SO 11:23:15 BEFORE YOU ANSWER BUT YOU'LL BE ONLY ONE WHO COULD ANSWER THE 11:23:19 QUESTION. IS THAT CLEAR? 11:23:21 THANK YOU. MR. HAYWARD, I'M GOING ASK YOU 11:23:23 TO PLEASE RISE RAISE YOUR RIGHT HAND AND TAKE THE OATH. 11:23:29 DO YOU SWEAR OR AFFIRM THE TESTIMONY YOU'RE ABOUT TO GIVE 11:23:33 TO BE THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH, THE 11:23:36 MATTER PENDING BEFORE THIS COMMITTEE. 11:23:38 I DO. LET THE RECORD REFLECT THE 11:23:40 WITNESS ANSWERED IN THE AFFIRMATIVE. 11:23:41 MR. HAYWARD, YOU ARE NOW UNDER OENCHT WE WOULD LIKE IT HEAR AN 11:23:45 OPENING STATEMENT FROM YOU. YOU MAY SUBMIT A LONGER 11:23:49 STATEMENT IF YOU WILL FOR THE RECORD BUT IF YOU WOULD, PLEASE 11:23:53 BEGIN YOUR OPENING STATEMENT AND LET ME AGAIN ON BEHALF OF ALL 11:23:55 MEMBERS OF THE COMMITTEE WE APPRECIATE WILLINGNESS TO APPEAR 11:24:01 HERE TODAY. CHAIRMAN STUPAK -- RANKING 11:24:07 MEMBERS. SUSPEND, PLEASE, SIR. 11:24:18 YOU NEED TO GO TO JAIL! [ INAUDIBLE ]. 11:24:27 MA'AM -- SHE'S A SHRIMPER. 11:24:55 HER WHOLE LIFE IS -- BE CAREFUL. 11:25:10 LET THEM GET THROUGH. BEFORE WE BEGIN AGAIN WITH 11:25:51 MR. HAYWARD, LET ME JUST AGAIN MENTION THOSE VIEWERS IN OUR 11:25:57 AUDIENCE, EMOTION RUN HIGH ON THIS ISSUE. 11:25:58 BUT WE HAVE A HEARING TO CONDUCT HERE. 11:26:00 WE'RE GOING TO CONDUCT OUR HEARING. 11:26:02 IT'S GOING TO BE DONE WITH PROPER DECORUM. 11:26:05 MR. HAYWARD, WHEN YOU'RE READY WE'RE GROWING TO START THE CLOCK 11:26:09 OVER, YOU MAY BEGIN. CHAIRMAN WAXMAN, CHAIRMAN 11:26:12 STUPAK, RANKING MEMBER BURGESS, MEMBERS OF THE COMMITTEE. 11:26:16 I'M TONY HAYWARD, CHIEF EXECUTIVE OF BP. 11:26:21 THE EXPLOSION AND FIRE ABOARD THE DEEP WATER HORIZON AND THE 11:26:24 RESULTING OIL SPILL IN THE GULF OF MEXICO -- 11:26:26 EXCUSE ME, MR. HAYWARD, I'M GOING TO ASK YOU TO PULL THAT 11:26:29 UP, SOME OF THE MEMBERS ARE HAVING TROUBLE HEARING IT'S 11:26:32 PROBABLY OVER THE CLICKING OF THE CAMERAS, BUT WE'RE VAG 11:26:34 TROUBLE HEARING YOU. IF YOU COULD JUST PULL IT 11:26:37 CLOSER. THE EXPLOSION AND FIRE ABOARD 11:26:39 THE DEEP WATER HORIZON AND THE RESULTING OIL SPILL IN THE GULF 11:26:42 OF MEXICO. NEVER SHOULD HAVE HAPPEN AND OAR 11:26:44 AND I'M DEEPLY SORRY THAT IT DID. 11:26:46 WHEN I LERNT THAT 11 MEN HAD LOST THEIR LIVES, I WAS 11:26:50 PERSONALLY DEVASTATED. THREE WEEK $AGO, I ATTENDED A 11:26:54 MEMORIAL SERVICE FOR THOSE MEN AND IT WAS A SHATTERING MOMENT. 11:26:59 I WANT TO OFFER MY SINCERE CONDOLENCE TO THEIR FRIENDS AND 11:27:04 FAMILIES. I CAN ONLY BEGIN TO IMAGINE 11:27:06 THEIR SORROW. I UNDERSTAND HOW SERIOUS THIS 11:27:11 SITUATION IS. IT IS A TRAGEDY. 11:27:14 I WANT TO SPEAK DIRECTLY TO THE SPEM WHO LIVE AND WORK IN THE 11:27:19 GULF REGION. I KNOW THIS INCIDENT HAS HAD A 11:27:23 PROFOUND IMPACT ON YOUR LIVES CAUSED GREAT TURMOIL AND I 11:27:29 DEEPLY REGRET THAT I ALSO DEEPLY REGRET THE IMPACT THE SPILL HAS 11:27:35 HAD ON THE ENVIRONMENT, THE WILD 11:27:41 LIFE AND THE ECOSYSTEM OF THE GULF. 11:27:44 I WANT TO ACKNOWLEDGE THE QUESTIONS THAT YOU AND PUBLIC 11:27:47 ARE RIGHTLY ASKING. HOW COULD THIS HAPPEN? 11:27:50 HOW DAMAGING IS THE SPILL TO THE ENVIRONMENT? 11:27:54 WHY IS IT TAKING SO LONG TO STOP THE FLOW OF OIL AND GAS INTO THE 11:27:58 GULF? WE DON'T YET HAVE ALL THE 11:27:59 ANSWERS TO THESE IMPORTANT QUESTIONS, BUT I HEAR AND 11:28:03 UNDERSTAND THE CONCERNS, FRUSTRATIONS AND ANGER BEING 11:28:08 VOICED ACROSS THE COUNTRY. AND I KNOW THAT THESE SENTIMENTS 11:28:12 WILL CONTINUE UNTIL THE LEAK IS STOP AND UNTIL WE PROVE THROUGH 11:28:15 OUR ACTIONS THAT WE ARE DOING THE RIGHT THING. 11:28:20 YESTERDAY, WE MET WITH THE PRESIDENT OF THE UNITED STATES 11:28:23 AND HIS SENIOR ADVISERS. WE DISCUSSED HOW BP COULD BE 11:28:27 MORE CONSTRUCTIVE IN THE GOVERNMENT'S DESIRE TO BRING 11:28:30 MORE COMFORT AND ASSURANCE TO THE PEOPLE OF THE GULF COAST 11:28:34 BEYOND THE ACTIVITY WE'VE ALREADY DONE. 11:28:39 WE AGREED IN THAT MEETING TO CREATE A $20 BILLION CLAIMS FUND 11:28:42 TO COMPENSATE THE AFFECTED PARTY AND PAY FOR THE CLEANUP AND 11:28:53 ENVIRONMENTAL MITIGATION SAID ALL ALONG WE WOULD PAY THESE 11:28:54 COMFORTS AND NOW THE AMERICAN PEOPLE CAN BE CONFIDENT THAT OUR 11:28:58 WORD IS GOOD. I'VE BEEN TO THE GULF COAST. 11:29:04 I'VE MET WITH FISHERMEN. BUSINESS OWNERS AND FAMILIES. 11:29:09 I UNDERSTAND WHAT THEY'RE GOING THROUGH AND I PROMISED THEM AS 11:29:15 I'M PROMISING YOU THAT WE WILL MAKE THIS RIGHT. 11:29:18 AFTER YESTERDAY'S ANNOUNCEMENT, I HOPE THAT THEY FEEL WE'RE ON 11:29:22 THE RIGHT TRACK. I'M HERE TODAY BECAUSE I HAVE A 11:29:28 RESPONSIBILITY TO THE AMERICAN PEOPLE TO DO MY BEST TO EXPLAIN 11:29:32 WHAT BMPLT P HAS DONE, IS DOING AND WILL DO IN THE FUTURE TO 11:29:37 RESPOND TO THIS TERRIBLE ACCIDENT. 11:29:41 FIRST, WE'RE DOING EVERYTHING WE CAN TO SECURE THE WELL AND IN 11:29:46 THE MEANTIME CONTAIN THE FLOW OF OIL. 11:29:48 WE'RE CURRENTLY DRILLING TWO RELIEF WELLS, WE BELIEVE THEY 11:29:52 REPRESENT THE ULTIMATE SOLUTION. WE EXPECT THIS TO BE COMPLETE IN 11:29:58 AUGUST. SIMULTANEOUSLY, WE'VE BEEN 11:30:01 WORKING ON PARALLEL STRATEGIES TO MINIMIZE OR STOP THE FLOW OF 11:30:04 OIL. WHILE NOT ALL HAVE BEEN MET WITH 11:30:06 SUCCESS, IT APPEARS THAT OUR LATEST CONTAINMENT EFFORT IS NOW 11:30:11 CONTAINING ABOUT 20,000 BARRELS A DAY. 11:30:13 BY THE END OF JUNE, WE EXPECT TO HAVE EQUIPMENT IN PLACE TO 11:30:19 HANDLE BETWEEN 40,000 AND 50,000 BARRELS A DAY. 11:30:26 SECOND, I'VE BEEN CLEAR THAT WE WILL PAY ALL NECESSARY CLEANUP 11:30:30 COMFORTS. WE'VE MOUNTED WHAT THE COAST 11:30:32 GUARD HAS RECOGNIZED AS THE LARGEST SPILL RESPONSE IN 11:30:36 HISTORY. WE'VE BEEN WORKING HARD ON THE 11:30:39 LEADERSHIP UNDER UNIFIED COMMAND TO STOP THE OIL FROM COMING 11:30:45 ASHORE. WHILST WE'RE GRATEFUL THESE 11:30:47 EFFORTS ARE REDUCING THE IMPACTS OF THE SPILL, ANY OIL ON THE 11:30:50 SHORE IS DEEPLY DISTRESSING. WE WILL BE VIGILANT IN OUR 11:30:55 CLEANUP. THI,D AS I HAVE MADE CLEAR FROM 11:30:58 THE BEGINNING, WE WILL PAY ALL LEGITIMATE CLAIMS FOR LOSSES AND 11:31:00 DAMPS CAUSED BY THE SPILL. THOSE ARE NOT JUST WORDS. 11:31:05 WE'VE ALREADY PAID OUT MORE THAN $95 MILLION AND WE'VE ANNOUNCED 11:31:09 AN INDEPENDENT CLAIMS FACILITY HEADED BY KEN FEINBERG TO ENSURE 11:31:14 THE PROCESS IS AS FAIR, TRANSPARENT AND RAPID AS 11:31:20 POSSIBLE. FOURTH, WE NEED TO KNOW WHAT 11:31:22 WENT WRONG. SO THAT WE AS A COMPANY AND WE 11:31:26 AS AN INDUSTRY CAN DO BETTER. THAT IS WHY LESS THAN 24 HOURS 11:31:33 AFTER THE ACCIDENT I COMMISSIONED A NONPRIMPD 11:31:35 INVESTIGATION. DIE IT BECAUSE I WANT TO KNOW 11:31:37 WHAT HAPPENED AND I WANT TO SHARE THE RESULTS. 11:31:41 RIGHT NOW, IT'S SIMPLY TOO EARLY TO SAY WHAT CAUSED THE INCIDENT. 11:31:46 THERE IS STILL EXTENSIVE WORK TO DO. 11:31:48 A FULL ANSWER MUST AWAIT THE OUTCOME OF MULTIPLE 11:31:53 INVESTIGATIONS INCLUDING THE MARINE BOARD. 11:31:56 TO SUM UP, I UNDERSTAND THE SERIOUSNESS OF THE SITUATION AND 11:32:01 THE CONCERNS, FRUSTRATIONS AND FEARS THAT HAVE BEEN AND WILL 11:32:05 CONTINUE TO BE VOICED. I KNOW THAT ONLY ACTIONS AND 11:32:09 RESULTS, NOT MERE WORDS, ULTIMATELY CAN GIVE YOU THE 11:32:13 CONFIDENCE YOU SEEK. I GIVE MY PLEDGE AS THE LEADER 11:32:19 OF BP THAT WE WILL NOT REST UNTIL WE MAKE THIS RIGHT. 11:32:24 WE'RE A STRONG COMPANY AND NO RESOURCES WILL BE SPARED. 11:32:28 WE AND THE ENTIRE INDUSTRY WILL LEARN FROM THIS TERRIBLE EVENT 11:32:34 AND EMERGE STRONGER, SMARTER AND SAFER. 11:32:36 THANK YOU. THANK YOU, MR. HAYWARD. 11:32:46 ONE OF THE BAD PARTS OF CONDUCTING A HEARING WE GET 11:32:48 INTERRUPTED NOW AND THEN BY VOTES. 11:32:50 WE HAVE THREE VOTES PENDING RIGHT NOW. 11:32:52 THERE'S I THINK ABOUT TEN MINUTES REMAINING ON THIS VOTE. 11:32:56 I WOULD SUGGEST INSTEAD OF TRYING TO GET IN THE QUESTIONS, 11:32:58 WE TAKE A BREAK RIGHT NOW, LET'S STAND IN RECESS FOR 30 MINUTE, 11:33:06 WE'LL COME BACK AT NOON AND CONTINUE THIS HEARING. 11:33:08 WELL START WITH QUESTIONS ALL THE MEMBERS. 11:33:10 OKAY? THIS COMMITTEE WILL BE IN RECESS RECESS
House Energy Hearing with Tony Hayward / Switched / 1100 -1200
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 11:00:00 MOST UPSETTING ABOUT THIS TRAVESTY IS THAT IT COULD HAVE 11:00:01 BEEN AVOIDED. AS THE ONGOING INVESTIGATION BY 11:00:04 THIS COMMITTEE HAS ALREADY DISCOVERED, BP EXECUTIVES CREATE 11:00:07 AND ATMOSPHERE WHERE SAFETY CONCERNS WERE IGNORED IN ORDER 11:00:12 TO ENSURE THAT THE COMPANY'S ALREADY STAGGERING PROFITS THIS 11:00:15 YEAR, APPROXIMATELY $93 MILLION A DAY IN THE FIRST QUARTER 11:00:20 CONTINUED UNABATED. THIS APPALLING DISREGARD FOR THE 11:00:23 GULF COAST AND ITS INHABITANTS IS ONE OF THE MOST SHAMEFUL 11:00:28 ACTEDS BY A CORPORATION IN AMERICAN HISTORY. 11:00:31 IT'S THE MOST SIGNIFICANT EXAMPLE OF BP'S DISREGARD FOR 11:00:34 THE ENVIRONMENT AND WELL BEING OF ITS WORKERS. 11:00:38 A REPORT PUBLISHED BY THE CENTER FOR PUBLIC INTEGRITY FOUND THAT 11:00:42 BETWEEN JUNE 2007 AND FEBRUARY 2010, BP RECEIVED TOTAL OF 862 11:00:49 CITATION FROM THE OCCUPATIONAL SAFETY AND HEALTH 11:00:51 ADMINISTRATION, OF THOSE A STAGGERING 76 WERE' GRECIAN AND 11:00:57 WILL WILFUL. COMPARED WITH EIGHT AT THE TWO 11:01:01 OIL COMPANIES TIED FOR SECOND PLACE. 11:01:03 THIS PATTERN OF BEHAVIOR CONTINUED IN THE SPILL'S 11:01:06 AFTERMATH. I HOLD IN MY HAND A DOCUMENT 11:01:10 CALLED VOLUNTARY WAIVER OF RELEASE THAT BP MADE UNEMPLOYED 11:01:15 FISHERMAN SIGN BEFORE THEY COULD BE HIRED FOR SPILL CLEANUP T 11:01:19 STATES I HEREBY AGREE ON BEHALF OF MYSELF AND MY REPRESENTATIONS 11:01:24 TO HOLD HARMLESS INDEMNY IF I AND FOREVER DISCHARGE THE BP 11:01:31 EXPLORATION PRODUCTION INC. FROM ALL CLAIMS AND DAMAGES THAT I OR 11:01:35 MY REPRESENTATIVES MAY HAVE WITH REGARD TO THE PARTICIPATION IN 11:01:38 THE SPILL RESPONSE ACTIVITIES. I KNOW THAT YOU SAID THIS WAS AN 11:01:42 EARLY MISSTEP AND THAT THIS WAS JUST A STANDARD DOCUMENT, BUT 11:01:45 THIS IS WAS THE FIRST RESPONSE THAT YOU HAD TO PEOPLE THAT WERE 11:01:51 HIRED. AND OUTRAGE DOES NOT BEGIN TO 11:01:53 EXPRESS MY FEELING. THESE ARE PEOPLE WHO ARE 11:01:55 UNEMPLOYED BECAUSE OF THE RECKLESSNESS OF BP, FORCED TO 11:02:00 TAKE JOBS CLEANING UP BP. 'S MESS IN ORDER TO SURVIVE, YET 11:02:03 TO QUALIFY FOR THOSE JOBS THEY HAD TO HOLD BP HARMLESS FOR 11:02:07 EVERYONE FURTHER DAMAGES THEY MAY SUFFER IN BP'S EMPLOY. 11:02:11 THIS FROM A COMPANY THAT MADE $93 MILLION A DAY. 11:02:17 FORTUNATELY A COURT TRUMPED YOUR FANCY LAWYERS WHO WROTE THIS 11:02:19 DOCUMENT BUT STILL IT BEGS THE QUESTION HOW COULD YOU DO THAT? 11:02:23 I'M GLAD THAT YOU'RE HERE, MR. HAYWARD. 11:02:26 I SKBEKTS YOU TO EXPLAIN WHY YOUR COMPANY HAS OPERATED IN 11:02:29 SUCH A WHOLLY UNACCEPTABLE MANNER. 11:02:33 IN THE FINAL ANALYSIS THE SIMPLE FACT REMAINS IF BP THOUGHT MORE 11:02:36 ABOUT THE RESIDENTS AS THESE WIDOWS ASSISTANT WORKERS, AS 11:02:40 THESE WIDOWS SAID, RATHER THAN THE ALREADY EXORBITANT PROFITS 11:02:47 OF ITS SHAREHOLDERS, WE WOULD NOT BE HERE TODAY. 11:02:49 I YIELD BACK. MR. LOTTA S FOR AN OPENING 11:02:55 STATEMENT. THANK YOU, MR. CHAIRMAN. 11:02:57 RANKING MEMBER BURGESS, I WANT TO THANK YOU FOR HOLDING THIS 11:03:01 SUBCOMMITTEE HEARING ON THE ROLE OF BP IN THE OIL RIG EXPLOSION 11:03:05 AND THE ONGOING EXPLOSION IN THE GULF OF MEXICO. 11:03:10 I ALSO WANT TO EXTEND MY HEARTFELT CONDOLENCE TO THE 11:03:13 FAMILIES OF THOSE WHO LOVE ONE LUVED ONES AN HAVE BEEN INJURED. 11:03:16 THE SCALE OF THE SPILL AND IMPACT ON THE GULF ECONOMY 11:03:19 ENVIRONMENT DEMAND A THOROUGH EXAMINATION OF BP'S ACTIONS AND 11:03:24 INACTIONS AS WELL AS BP'S CURRENT AND FUTURE PLANS. 11:03:28 THE FLOW OF OIL MUST BE STOPPED. EVERY DAY ANYWHERE FROM 35,000 11:03:33 TO 60,000 BARRELS ARE SPILLING INTO THE GULF AND ONLY 15,000 11:03:37 BARRELS A DAY ARE BEING CAPTURED. 11:03:39 THE ENVIRONMENTAL EFFECTS ON THE OIL SPILL ARE HARMING SHORELINES 11:03:43 AND COASTAL WETLANDS, FISHERIES AN FISHERY HABITATS AS WELL AS 11:03:48 SEA MAMMALS AED TURTLES. WHAT'S WORSE, WE WILL NOT FULLY 11:03:53 KNOW THE ECOLOGICAL RAMIFICATIONS OF THE OIL SPILL 11:03:56 UNTIL YEARS DOWN THE ROAD. FURTHER MORE, BUSINESSES 11:03:59 SUFFERING GREAT LOSSES INCLUDING JOB AND REVENUES DEPENDENT ON 11:04:04 TOURISM ARE BEING THREATENED. THE NOAA ANNOUNCED A REVISED 11:04:09 FISHING CLOSURE IN THE OIL AFFECTED PORTION OF THE GULF OF 11:04:13 MEXICO ACCOUNTING FOR 33% OF THE GULF OF MEXICO'S EXCLUSIVE 11:04:17 ECONOMIC ZONE. AS OIL CONTINUES TO FLOW THIS 11:04:19 YEAH IS SURE TONE LARGE FURTHER EXASPERATING THE ECONOMIC 11:04:25 DAMAGE. A RECENT ECONOMIC IMPACT STUDY 11:04:28 BY THE AMERICAN SPORT FISHING ASSOCIATION INDICATED THAT THE 11:04:33 ENFIRE GULF WERE CLOSED TO RECREATIONAL FISHING FROM MAY 11:04:36 THROUGH AUGUST. LEAVING $WIN.WIN BILLION OF 11:04:40 REVENUE WHICH SUPPORTS $2.5 BILLION IN TOTAL SALES, AND 11:04:55 18,785 JOBS. THIS IS DEVASTATING TO AN AREA 11:04:58 THAT HAS ALREADY SUFFERED GREATLY FROM THE AFTERMATH OF 11:05:01 NATURAL DISASTERS. AMERICANS CONTINUE BE TO BE 11:05:04 FRUSTRATED FROM THE LACK OF SOLUTION FROM ALL PARTIES 11:05:06 INVOLVED AND I'M INTERESTED TO HEAR MORE ABOUT THE COORDINATED 11:05:09 EFFORTS BETWEEN BP AND THE ADMINISTRATION. 11:05:11 THE ECONOMIC AND ENVIRONMENTAL MAGNITUDE OF THIS DISASTER 11:05:14 NECESSITATES A CLEAR UNDERSTANDING OF WHAT WENT WRONG 11:05:16 AND BP NEEDS TON HELD ACCOUNTABLE FOR THE DISASTER. 11:05:21 I ALSO LOOK FORWARD TO HAVING MMS AND THE DEPARTMENT OF 11:05:25 INTERIOR BEFORE THIS SUBCOMMITTEE TO ALSO FOR THEM TO 11:05:28 ANSWER SOME TOUGH QUESTIONING. I LOOK FORWARD TO THE HEARING, 11:05:31 MR. HAYWARD'S TESTIMONY AND I YIELD BACK THE REMAINDER OF MY 11:05:34 TIME. THANK YOU. 11:05:37 THANKS, MR. LATTA MR. ROSS, THREE MINUTES OPENING STATEMENT, 11:05:42 PLEASE, SIR. THANK YOU. 11:05:44 CHAIRMAN STUPAK FOR HOLDING TODAY'S HEARING TO EXAMINE BP'S 11:05:48 ACTIONS AND DECISIONS THAT DIRECTLY LED TO THE TLACH MAGIC 11:05:53 EXPLOSION AND OIL SPILL THAT CONTINUES TO GUSH AND WREAK 11:05:58 HAVOC ON THE GULF COAST. AT A RATE OF UP TO 1700 GALLONS 11:06:10 WE ARE MINUTE. SINCE THIS HEARING BEGAN A 11:06:12 LITTLE OVER AN HOUR AGO, UP TO 112,847 GALLONS HAVE BEEN DUMPED 11:06:21 INTO THE GULF. ON DAY 59 OF THIS ECONOMIC AND 11:06:26 ENVIRONMENTAL DISASTER, WITH UP TO 60,000 BARRELS OF DAY 11:06:30 SPILLING INTO THE GULF, I CONTINUE TO BE FRUSTRATED AND 11:06:33 DOWNRIGHT ANGRY BY BP'S RESPONSE AND LACK OF A CLEAR AND 11:06:37 PRODUCTIVE PLAN TO STOP THE LEAK OR EFFICIENTLY CLEAN UP THE OIL 11:06:41 THAT IS DESTROYING THE ECOSYSTEMS THAT SURROUND THE 11:06:45 GULF. REPORTS HAVE SURFACED REVEALING 11:06:48 THAT IN THE DAYS AND WEEKS BEFORE THE EXPLOSION BP 11:06:51 KNOWINGLY MADE A NUMBER OF DECISIONS THAT INCREASED THE 11:06:55 DANGER OF AN EXPLOSION AND SPILL OCCURRING. 11:06:59 IT SEEMS APPARENT THAT BP PUT PROFIT BEFORE SAFETY, MANY 11:07:05 PEOPLE ARE DEAD. MILLIONS OF GALLONS OF OIL 11:07:08 CONTINUE TO SPEW INTO THE GULF. I'M HOPEFUL THAT MR. HAYWARD CAN 11:07:14 EXPLAIN TODAY WHY THESE DECISIONS WERE MADE, HOW THIS 11:07:17 COMPANY'S ACTIONS LED TO THIS DISASTER AND WHAT THEY ARE DOING 11:07:20 TO REMEDY IT. AS OIL FLOATS INTO THE MARSHES 11:07:25 AND ONTO THE BEACHES, AS SHRIMPING VESSELS SIT TIED TO 11:07:30 DOCKS, AS RESTAURANTS AND BUSINESSES DURING THEIR PEAK 11:07:33 SEASON REMAIN WITHOUT TOURISTS AND CUSTOMERS, AND AS HOMEOWNERS 11:07:39 SEE THEIR PROPERTY VALUES PLUMMET, THE PEOPLE AND WILD 11:07:43 LIFE OF THE GULF COAST WAIT AND WONDER ABOUT HOW EXTENSIVE THE 11:07:50 DAMAGE TO THE ECOSYSTEM OR THE ECONOMY WILL BE. 11:07:55 THIS BILL IS NOT ONLY AFFECTING THE GULF COAST, THE JOBS AND 11:08:00 ECONOMIES OF THIS SURROUNDING STATES ARE HURTING AS WELL. 11:08:04 MY STATE OF ARKANSAS BORDERS LOUISIANA. 11:08:08 AND MANY OF MY CONSTITUENTS, PEOPLE I KNOW IN MY HOMETOWN 11:08:13 WORK ON OFFSHORE RIGS. THESE JOBS ARE ALSO AT RISK AND 11:08:17 I HOPE BP WILL TAKE RESPONSIBILITY FOR ALL THOSE WHO 11:08:22 ARE AFFECTED BY THIS SPILL REGARDLESS OF WHERE THEY LIVE. 11:08:26 AND WORK TO HELP PULL THEM THROUGH THIS DISASTER AS WELL. 11:08:30 THIS SPILL IS A WAKE-UP CALL THAT MUST RESULT IN BETTER 11:08:35 GOVERNMENT OVERSIGHT. MORE ADVANCED TECHNOLOGY, 11:08:37 STRONGER RESPONSE PLANS AND IMPROVED SAFETY STANDARDS. 11:08:42 NOT ONLY BY BP AND EVERY OIL COMPANY IN AMERICA BUT ALSO BY 11:08:47 OUR GOVERNMENT. ABOVE ALL, THIS DISASTER IS A 11:08:50 LEARNING EXPERIENCE THAT WILL HELP US PREVENT A TRAGEDY LIKE 11:08:53 THIS FROM EVER HAPPENING AGAIN. AND I'M HOPEFUL THIS HEARING CAN 11:08:57 PROVIDE THE ANSWER AND SOLUTIONS NECESSARY TO BEGIN THAT PROCESS. 11:09:03 MR. HAYWARD, I TRULY HOPE THAT YOU'LL GIVE US OPEN AND HONEST 11:09:06 ANSWERS TODAY AND NOT THOSE PREPARED BY YOUR LEGAL TEAM. 11:09:10 WITH THAT MR. CHAIRMAN, I YIELD BACK. 11:09:13 THANK YOU, MR. ROSS. NEXT I WOULD LIKE TO CALL ON 11:09:16 MISS CHRISTENSEN FROM VIRGIN ISLANDS FOR AN OPENING 11:09:19 STATEMENT, PLEASE. THANK YOU, MR. CHAIRMAN. 11:09:21 AND THANK YOU FOR HOLDING THIS IMPORTANT HEARING. 11:09:23 THE EXPLOSION ON THE DEEP WATER PLATFORM AND THE SUB SUBSEQUENT 11:09:27 OUTPOURING OF HUNDREDS OF THOUSANDS OF GALLONS OF OIL INTO 11:09:30 ONE OF THE MOST SENSITIVE AND IMPORTANT BODIES OF WATER IN 11:09:33 THIS COUNTRY IS INDEED A TRAGIC ACCIDENT WHICH CAUSED 11 DEATHS, 11:09:38 MANY INJURIES LEFT-HAND HAVE DEEP, LONG LASTING DEBILITATING 11:09:42 AND EXPENSIVE REPERCUSSION, THE PEOPLE OF THIS COUNTRY NEED IT 11:09:45 KNOW WHAT HAPPENED AND WHO IS RESPONSIBLE. 11:09:48 ALL THAT HAS TRANSPIRED SINCE APRIL 20th SAYS TO ME THAT NOT 11:09:52 ONLY BP BUT NO COUNTRY DRILLING IN OUR OUTER CONTINENTAL SHELF 11:09:56 IS PREPARED TO DEAL WITH A SPILL AT THIS DEPTH. 11:09:59 THEY'RE ALL, THERE USING THE BEST AVAILABLE TECHNOLOGY AND 11:10:05 STILL 59 DAYS LATER AN END IS NOT IN SIGHTS. 11:10:08 THIS IS NOT SKAEMENTABLE. WHAT HAS ALSO BECOME CLEAR IS 11:10:11 THAT WHILE BP REPORTEDLY USED SHORTCUTS THEY WERE WARNED NOT 11:10:15 TO WHICH MAY HAVE CAUSED THE SPILL, THEY'RE NOT THE ONLY ONES 11:10:20 AT FAULT. THEY COULD NOT HAVE CUT THOSE 11:10:22 CORNERS WITHOUT THE COMPLICITY OF EMPLOYEES AT SOME OF THE 11:10:26 RESPONSIBLE GOVERNMENT AGENCIES WHO DID NOT DO THEIR JOB. 11:10:29 WE'RE ALL APPALLED THAT LIVES ARE LOST BY DECISIONS MADE 11:10:32 APPARENTLY IN THE INTEREST OF CUTTING COSTS, BUT ALSO BY THE 11:10:35 LACK OF ADEQUATE PREPARATION FOR THIS WORST CASE SCENARIO WE ARE 11:10:40 FACING TODAY. THE FACT THAT THE INDUSTRY DOES 11:10:42 NOT ENSURE THAT RESPONSE TECHNOLOGY KEPT PACE WITH DEEPER 11:10:46 DRILL WELLS LAYS BLAME AT ALL OF THEIR FEET, BUT WE CAN STILL NOT 11:10:50 IGNORE THE DECISIONS BIMADE BY BP, IF THEY HAD BEEN DIFFERENT 11:10:54 11 PEOPLE MIGHT STILL BE ALIVE TODAY. 11:10:58 WE WITH OUR CONGRESS ALONG WITH THE FRED WHO HAS HAD MORE OF HIS 11:11:02 SHARE OF CRISIS NOT OF HIS MAKING HAVE MAKE CHALLENGES AND 11:11:08 CRITICAL AHEAD. I HOPE THE MANY WHO DIED, THE 11:11:11 AFFECTED FAMILIES AND NOW WHO NOW DEPEND ON OCS PLATFORMS FOR 11:11:17 THEIR LIVELIHOOD, THIS AND OF THE HEARINGS WILL HELP US GO 11:11:21 BEYOND A KNEE-JERK REACTION TO DO THE RIGHT THING FOR THE 11:11:23 REGION AND OUR COUNTRY. THAT BP AND ANY OTHER 11:11:27 RESPONSIBLE PARTY WILL BE HELD FULLY ACCOUNTABLE AND 11:11:30 RESPONSIBLE AND THAT PETROLEUM AND NATURAL GAS COMPANIES WILL 11:11:33 LEARN IMPORTANT LESSONS TO ENSURE THIS DOES NOT HAPPEN 11:11:35 AGAIN. I WANT TO THANK YOU, MR. HAYWARD 11:11:38 FOR BEING HERE, I LOOK FORWARD TO YOUR TESTIMONY AND FULL 11:11:41 ANSWERS TO THE QUESTIONS WE WILL ASK ON BEHALF OF THE PEOPLE IN 11:11:43 THE REGION AND ON BEHALF OF THE AMERICAN PEOPLE. 11:11:46 I YIELD BACK. THANK YOU. 11:11:48 MR. WELCH, OPENING STATEMENT, PLEASE. 11:11:50 THANK YOU, MR. CHAIRMAN. MR. HAYWARD, IN THE 49 DAYS 11:11:55 SINCE THE DEEP WATER HORIZON EXPLOSION 'CAUSED THIS 11:12:00 EXTRAORDINARY ENVIRONMENTAL CATASTROPHE, WE'VE HEARD TIME 11:12:02 AND AGAIN FROM BP THIS WAS AN ABRATION, THE FACTS REGRETTABLY 11:12:08 TELL A DIFFERENT STORY. IN 2005, WHEN BP'S TEXAS CITY 11:12:13 OPERATION BLEW UP, 14 WORKERS LOST THEIR LIVES N 2006, A BP 11:12:17 OIL PIPELINE IN TEXAS RUPTURED AND SPILLED 200,000 GALLONS OF 11:12:23 CRUDE OIL N IN 2007, THE YEAR YOU BECAME CEO, THE BP 11:12:27 CORPORATION SETTLED A SERIES OF CRIMINAL CHARCHGS NOT CIVIL 11:12:30 CHARGE, KRILL UNANIMOUS CHARGE AND PAID $370 MILLION IN FINES. 11:12:36 ACCORDING TO RISK MET TRI, AN INDEPENDENT OKAY, BP HAS ONE OF 11:12:40 THE WORST HEALTH, ENVIRONMENT AND SAFETY RECORDS OF ANY 11:12:43 COMPANY IN THE WORLD N ONLY ONE YEAR, THE OCCUPATIONAL SAFETY 11:12:47 AND HEALTH ADMINISTRATION FOUND MORE THAN 700 VIOLATIONS AT BP'S 11:12:52 TEXAS CITY REFINERY AND BP PAID A RECORD $87 MILLION IN A FINE. 11:13:00 BP WAS CHARGED WITH PUTTING PROFITS BEFORE SAFETY. 11:13:02 EARLIER THIS YEAR, A REFINERY IN TOLEDO WAS FINED $3 MILLION FOR 11:13:10 WILLFUL SAFETY VIOLATIONS INCLUDING THE USE OF VALVES THAT 11:13:12 CONTRIBUTED TO THE TEXAS CITY BLAST. 11:13:13 FINALLY, OF COURSE, THE DEEP WATER HORIZON CATASTROPHE AND 11:13:17 MORE EVIDENCE THAT COMES IN, THE MORE IT'S CLEAR THAT THAT EVENT 11:13:20 WAS FORESEEABLE AND IT WAS AVOIDABLE. 11:13:23 AFTER THE EXPLOSION, BP SAID THERE WAS NO OIL LEAKING, THEN 11:13:28 IT SAID THERE WAS 1,000 BARRELS A DYE. 11:13:32 THEN 5,000, WE'RE NOW UP TO 60,000 BARRELS. 11:13:39 FOR 59 DAYS, BP HAS TOLD THE AMERICAN THIS WAS ABRATION. 11:13:56 IT'S DEJA VU AGAIN AND AGAIN AND AGAIN. 11:13:59 THE QUESTION MANY OF US HAVE IS WHETHER A CEO WHO HAS PRESIDED 11:14:04 OVER A COMPANY THAT HAS INCURRED $370 MILLION IN FINES, A COMPANY 11:14:12 WITH ONE OF THE WORST RECORDS IN THE WORLD FOR SAFETY AND 11:14:13 CONSISTENTLY PUTS MONEY AHEAD OF SAFETY, WHO'S PEERS INCLUDING 11:14:16 MR. TILLERSON FROM EXXONMOBIL WHO TESTIFIED WHERE YOU ARE TWO 11:14:20 DAYS AGO, SAID THEY NEVER, THAT THEY NEVER WOULD HAVE DRILLED A 11:14:25 WELL THE WAY BP DID AT DEEP WATER HORIZON AND WHO HAS CEOS 11:14:29 TO HASS PRESIDED OVER THE DESTRUCTION OF OVER $100 BILLION 11:14:36 IN SHAREHOLD EVER VALUE. DOES THAT LEADER CONTINUE TO 11:14:39 ENJOY AND HAVE A VALID CLAIM ON THE TRUST AND CONFIDENCE OF 11:14:44 EMPLOYEES, SHAREHOLDERS, PUBLIC REGULAORS AND MOST IMPORTANT 11:14:48 LIT FAMILIES AND SMALL BUSINESS OF THE GULF COAST? 11:14:51 OR IS IT TIME FRANKLY TO THAT CEO TO CONSIDER TO SUBMIT HIS 11:14:55 SAYS RIG NATION? I THANK YOU AND YIELD BACK. 11:14:59 THANK YOU. MR. GREENE FOR AN OPENING 11:15:01 STATEMENT, PLEASE. THANK YOU, MR. CHAIRMAN. 11:15:03 MR. HAYWARD, I APPRECIATE YOUR TESTIMONY OR BEING HERE THIS 11:15:06 MORNING. AND MOST PEOPLE ON THIS 11:15:08 COMMITTEE KNOW I'M A BIG SUPPORTER OF OUTER CONTINENTAL 11:15:11 SHELF DRILLING AND DOMESTIC ENERGY PRODUCTION. 11:15:15 AND I UNDERSTAND FROM YOUR TESTIMONY IN OUR OTHER HEARINGS 11:15:18 WE'VE HELD IN MEETINGS WITH THE ADMINISTRATION THAT EFFORTS TO 11:15:21 CAP THE WELL ARE GOING AS EXPEDITIOUSLY AS POSSIBLE 11:15:28 HOWEVER LIKE MANY OF MY COLLEAGUES HERE, I'M FRUSTRATED 11:15:30 THAT DID IT'S BEEN ALMOST TWO MONTHS AND WE STILL HAVE 11:15:34 THOUSANDS OF BARRELS OF CRUDE OIL GUSHING IN THE GULF OF 11:15:39 MEXICO. I'M FRUSTRATED BY THE THREAT OF 11:15:40 DISASTER IMPACTS OUR WILDLIFE AND COAST LINE. 11:15:45 I'M FRUSTRATED THAT ONE WELL OUT OF THOUSANDS OF WELLS IS 11:15:49 THREATENING MY CONSTITUENTS' LIVELY HOOD AND MOST COMMUNITIES 11:15:53 ON GULF COAST. LITERALLY FROM ALABAMA BACK TO 11:15:55 BROWNSVILLE, TEXAS. THIS DISASTER HAS CAUSED THE OIL 11:15:59 AND GAS INDUSTRY TO SHUT DOWN EVEN IF THE MORATORIUM DOES NOT 11:16:03 LAST SIX MONTHS IT WILL BE TOO LATE FOR MANY OF THESE FOLKS, 11:16:07 BUT THESE PEOPLE ARE NOT THE ONES TO BLAME. 11:16:09 THEY'RE THE HARD WORKING PEOPLE WITH A WORK ETHIC LIKE NONE 11:16:13 OTHER THAN TAKE THEIR RESPONSIBILITY ON THESE RIGS 11:16:15 SERIOUSLY. HOWEVER, KOORDING TO THE 11:16:18 INVESTIGATION THIS SUBCOMMITTEE CONDUCTED IT'S OBVIOUS MANY BP 11:16:21 OFFICIALS ON AND OFF THE RIG DID NOT TAKE THEIR RESPONSIBILITY OF 11:16:26 THIS RIG SERIOUSLY. HALLIBURTON WARNED THE DECISIONS 11:16:34 COULD LEAD TO SERIOUS PROBLEM AND NOW PEOPLE ARE LOSING THEIR 11:16:39 JOBS. THEY COULD HAVE BEEN PREVENTED 11:16:41 IF BMPLT P HAD NOT CHOSEN EXPED YENSY OVER SAY. 11:16:46 WHICH BRINGS MY NEXT POINT. WHETHER IT'S THE FIRE WHERE 15 11:16:50 PEOPLE DIED, TIME AFTER TIME, IT'S SHOWN THAT BP CHOOSES EXPED 11:16:56 YENSY OVER SAMPLT YET, MR. HAYWARD, IN YOUR TESTIMONY 11:16:58 YOU WRITE, NONE OF US KNOWS WHY IT HAPPENED. 11:17:01 YET THIS SUBCOMMITTEE UNCOVERED FIVE AIR YEARS WHERE BP MADE 11:17:07 MISTAKES. I ADD UP THE HOURS THAT THESE 11:17:10 EXTRA PRECAUTIONARY ACTIONS WOULD HAVE TAKEN AND IT COMES TO 11:17:13 BE TO ABOUT THREE TO FOUR DAY, THAT'S ASSUMING MANY OF THESE 11:17:16 ACTIONS WOULD NOT HAVE OCCURRED SIMULTANEOUSLY, WHICH THEY COULD 11:17:20 HAVE. FOR AN EXTRA THREE DAYS OF WORK, 11:17:23 MEN'S LIVES WOULD HAVE BEEN SARCHD AN INDUSTRY RECORD OF 11:17:27 SAFETY AND RESPONSIBLE PRODUCTION WOULD STILL BE IN 11:17:30 PLACE WHICH BRINGS ME TO MY LAST POINT. 11:17:32 IN YOUR TESTIMONY, MR. HAYWARD, YOU SAY THIS INCIDENT KAUL $INTO 11:17:36 QUESTION WHETHER THE OIL AND GAS INDUSTRY DID EXPLORE FOR OIL AND 11:17:39 GAS IN SAFER MORE RELIABLE WAYS AND WHAT THE APPROPRIATE 11:17:43 REGULATORY FRAMEWORK FOR THE INDUSTRY SHOULD BE. 11:17:45 MR. HAYWARD, THE DECISIONS MADE BY HANDFUL OF BP INDIVIDUALS 11:17:49 CALLED THIS INTO QUESTION, NOT THIS ACCIDENT, AND YOU SHOULD 11:17:52 TAKE THE RESPONSIBILITY FOR THE WORKERS WHO DID NOTHING WRONG 11:17:55 AND ARE NOW LOSING THEIR JOBS. AND MR. CHAIRMAN, I YIELD BACK 11:17:59 MY TIME. THANK YOU, MR. GREEN. 11:18:02 MISS SUTTON FOR AROUND OPENING STATEMENT. 11:18:04 THREE MINUTE, PLEASE. THANK YOU, CHAIRMAN STUPAK. 11:18:07 IT'S BEEN NEARLY TWO MONTHS SINCE THE EXPLOSION OF THE DEEP 11:18:11 WATER HORIZON DRILLING RIG RESULTING IN THE DEATH S OF 11 11:18:16 WORKERS AND INJURED ADDITIONAL WORKERS. 11:18:19 SINCE THEN, WE'VE WITNESSED THE WORST ENVIRONMENTAL DISASTER IN 11:18:22 OUR NATION'S HISTORY, THAT CONTINUES TO POUR AN ESTIMATED 11:18:27 60,000 BARRELS OF OIL A DAY INTO THE GULF OF MEXICO. 11:18:28 THAT HAS LED TO OVER 66,000 VICTIMS FILING CLAIMS TO RECEIVE 11:18:35 COMPENSATION. THROUGH THIS SUBCOMMITTEE'S 11:18:36 WORK, SEVERAL ALARMING DECISIONS BY BP HAVE COME TO LIGHT TO SAVE 11:18:41 MONEY AND TIME. IT'S UNCONSCIONABLE WHEN 11:18:45 COMPANIES PAY MORE ATTENTION TO THEIR COMFORTS AND THEIR PROFITS 11:18:48 THAN TO THEIR OWN WORKERS' SAFETY AND TO OUR ENVIRONMENT. 11:18:53 AT OUR LAST HEARING ONE WITNESS FROM TRANSOCEAN TESTIFIED THAT A 11:18:57 DUPLICATE BLOWOUT PREVENTER SYSTEM COMFORTS ROUGH $15 11:19:04 MILLION NOT USED ON THE DEEP WATER HORIZON RIG. 11:19:07 BP ALSO UTILIZED A RISKY OPTION FOR STEEL TUBING SAVING $7 11:19:12 MILLION. BP DID NOT CIRCULATE DRILLING 11:19:15 MUD OR SECURE CASING HANGERS BETWEEN BIOPSIES OF DIFFERENT 11:19:20 DIME TERSE AND CRITICAL SIGNALS WERE BRUSHED ASIDE. 11:19:23 WHEN STANDARD METHODS WERE NOT FOLLOWED TO CENTER THE STEEL 11:19:26 PIPE IN THE DRILL HOLE, ONE OF BP'S OPERATIONS DRILLING 11:19:30 ENGINEERS REMARKED IN AN E-MAIL, QUOTE, WHO CARES? 11:19:36 IT'S DONE. END OF STORY. 11:19:39 BUT THESE CUT CORNERS HAVE BEEN ANYTHING BUT THE END OF THE 11:19:42 STORY. AS THE WORKERS AND VOLUNTEERS 11:19:44 FROM AROUND THE COUNTRY HELP CLEAN UP THE OIL FROM THE 11:19:47 DISASTER, MANY ARE BECOMING ILL. BETWEEN APRIL 22 AND JUNE 10, 8 11:19:59 485 OF BP'S OWN EMPLOYEES HAVE BEEN ILL. 11:20:04 AND THE MONEY HAS LONG BEEN LOST AS THEY ALREADY PAID $81 MILLION 11:20:09 IN CLAIMS. MR. HAYWARD, LIKE MANY 11:20:11 AMERICANS, I FEEL PHYSICALLY SICK WHEN I SEE THE CLIPS OF THE 11:20:17 OIL GUSHING IN THE GULF. WITNESSING THE DEVASTATION OF 11:20:19 OUR WATERS AND OUR COAST. AND THE WILDLIFE. 11:20:24 THINKING ABOUT THE LIVES OF THE WORKERS KILLED. 11:20:27 AND HEARING AND SEEING THE PAIN IN THE FACE AND THE HEARTS OF 11:20:31 THE PEOPLE, THE FAMILIES, THE SMALL BUSINESSES, THE FISHERMEN 11:20:36 AND OTHERS IN THE GULF. ALL CONSEQUENCE OF THIS 11:20:41 CATASTROPHE. THIS CULTURE OF CARELESSNESS AND 11:20:44 TAKING SHORTCUTS TO MAXIMIZE PROFITS AT THE EXPENSE OF 11:20:50 SAFETY, THIS COME WHAT MAY, WE'LL CROSS THAT BRIDGE WHEN WE 11:20:54 COME TO IT ATTITUDE IS UNACCEPT ABILITY, IT'S OUTRAGEOUS. 11:20:58 BP MUST BE ACCOUNTABLE FOR THE CONSEQUENCES OF THAT APPROACH 11:21:01 AND WE MUST TAKE ACTIONS NECESSARY ON BEHALF OF THE 11:21:05 AMERICAN PEOPLE TO MAKE SURE THAT SUCH A RECKLESS APPROACH 11:21:09 WILL BE FOREVER ABANDONED. THE RISKS AND COSTS TO OUR 11:21:13 ENVIRONMENT AND TO THE WORKERS IN THE GULF COAST, TO THE 11:21:16 WORKERS THROUGHOUT OUR ECONOMY ARE SIMPLY TOO GREAT TO ALLOW 11:21:19 OTHERWISE. I YIELD BACK. 11:21:23 THANK YOU, MISS SUTTON THAT CONCLUDES THE OPENING STATEMENTS 11:21:27 OF ALL MEMBERS OF OUR SUBCOMMITTEE. 11:21:29 AS I NOTED IN THE OPENING, AS I NOTED IN THE OPENING, WE HAVE 11:21:33 MEMBERS OF THE FULL COMMITTEE HERE, I WOULD LIKE TO RECOGNIZE 11:21:36 THEM. THEY WILL BE ALLOWED TO ASK 11:21:38 QUESTIONS BY ORDER OF SENIORITY. M 11:21:44 MR. ENSLY IS HERE. MISS CAST, MR. GONZALEZ, MISS 11:21:50 CAPPS, MR. HARMON, MS. WIENER, AND MR. SCALISE. 11:21:59 THEY ALSO HOST THE FIELD HEARING IN NEW ORLEANS, WE HAD NINE 11:22:05 MEMBERS GO DOWN IN ONE OF THE LARGEST FIELD HEARINGS WE'VE HAD 11:22:08 SO YOU CAN SEE THE INTEREST HERE. 11:22:11 I ALSO NOTE, MISS JACKSON LEE IS WITH US, NOT A MEMBER OF 11:22:14 THE COMMITTEE, SHE WILL NOT BE ALLOWED TO ASK QUESTION, BUT WE 11:22:19 WELCOME HER AND SHE'S SAT IN ON PREVIOUS HEARINGS WE'VE HAD. 11:22:22 SO OUR FIRST WITNESS IS MR. TONY HIGH HAYWARD WHO IS THE CHIEF 11:22:29 EXECUTIVE OFFICER OF BP PLC. YOU HAVE A RIGHT TO BE ADVISED 11:22:40 BY COUNSEL DURING YOUR TESTIMONY. 11:22:42 DO YOU WISH TO BE REPRESENTED BY LEGAL COUNSEL? 11:22:45 I'M SORRY, YOU HAVE TO JUST PRESS THAT BUTTON RIGHT THERE, 11:22:49 SIR. POSITIVE DYE NOT. 11:22:51 WE ALSO ASKED IF YOU WOULD HAVE A TECHNICAL PERSON WITH YOU 11:22:54 SO YOU COULD CONSULT IF WE ASK SOME QUESTIONS THAT YOU WANT TO 11:22:57 RUN IT BY YOUR TECHNICAL PERSON. DO YOU HAVE A TECHNICAL PERSON 11:23:01 WITH YOU? I DO. 11:23:02 COULD YOU STATE HIS NAME AND POSITION FOR THE RECORD, PLEASE. 11:23:05 MIKE ZANGEY, DRILLING ENGINEER. 11:23:08 DURING YOUR TESTIMONY, IF YOU WANT TO CONSULT WITH THAT 11:23:13 INDIVIDUAL, PLEASE LET US KNOW, WE'LL GIVE YOU A MOMENT TO DO SO 11:23:15 BEFORE YOU ANSWER BUT YOU'LL BE ONLY ONE WHO COULD ANSWER THE 11:23:19 QUESTION. IS THAT CLEAR? 11:23:21 THANK YOU. MR. HAYWARD, I'M GOING ASK YOU 11:23:23 TO PLEASE RISE RAISE YOUR RIGHT HAND AND TAKE THE OATH. 11:23:29 DO YOU SWEAR OR AFFIRM THE TESTIMONY YOU'RE ABOUT TO GIVE 11:23:33 TO BE THE TRUTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH, THE 11:23:36 MATTER PENDING BEFORE THIS COMMITTEE. 11:23:38 I DO. LET THE RECORD REFLECT THE 11:23:40 WITNESS ANSWERED IN THE AFFIRMATIVE. 11:23:41 MR. HAYWARD, YOU ARE NOW UNDER OENCHT WE WOULD LIKE IT HEAR AN 11:23:45 OPENING STATEMENT FROM YOU. YOU MAY SUBMIT A LONGER 11:23:49 STATEMENT IF YOU WILL FOR THE RECORD BUT IF YOU WOULD, PLEASE 11:23:53 BEGIN YOUR OPENING STATEMENT AND LET ME AGAIN ON BEHALF OF ALL 11:23:55 MEMBERS OF THE COMMITTEE WE APPRECIATE WILLINGNESS TO APPEAR 11:24:01 HERE TODAY. CHAIRMAN STUPAK -- RANKING 11:24:07 MEMBERS. SUSPEND, PLEASE, SIR. 11:24:18 YOU NEED TO GO TO JAIL! [ INAUDIBLE ]. 11:24:27 MA'AM -- SHE'S A SHRIMPER. 11:24:55 HER WHOLE LIFE IS -- BE CAREFUL. 11:25:10 LET THEM GET THROUGH. BEFORE WE BEGIN AGAIN WITH 11:25:51 MR. HAYWARD, LET ME JUST AGAIN MENTION THOSE VIEWERS IN OUR 11:25:57 AUDIENCE, EMOTION RUN HIGH ON THIS ISSUE. 11:25:58 BUT WE HAVE A HEARING TO CONDUCT HERE. 11:26:00 WE'RE GOING TO CONDUCT OUR HEARING. 11:26:02 IT'S GOING TO BE DONE WITH PROPER DECORUM. 11:26:05 MR. HAYWARD, WHEN YOU'RE READY WE'RE GROWING TO START THE CLOCK 11:26:09 OVER, YOU MAY BEGIN. CHAIRMAN WAXMAN, CHAIRMAN 11:26:12 STUPAK, RANKING MEMBER BURGESS, MEMBERS OF THE COMMITTEE. 11:26:16 I'M TONY HAYWARD, CHIEF EXECUTIVE OF BP. 11:26:21 THE EXPLOSION AND FIRE ABOARD THE DEEP WATER HORIZON AND THE 11:26:24 RESULTING OIL SPILL IN THE GULF OF MEXICO -- 11:26:26 EXCUSE ME, MR. HAYWARD, I'M GOING TO ASK YOU TO PULL THAT 11:26:29 UP, SOME OF THE MEMBERS ARE HAVING TROUBLE HEARING IT'S 11:26:32 PROBABLY OVER THE CLICKING OF THE CAMERAS, BUT WE'RE VAG 11:26:34 TROUBLE HEARING YOU. IF YOU COULD JUST PULL IT 11:26:37 CLOSER. THE EXPLOSION AND FIRE ABOARD 11:26:39 THE DEEP WATER HORIZON AND THE RESULTING OIL SPILL IN THE GULF 11:26:42 OF MEXICO. NEVER SHOULD HAVE HAPPEN AND OAR 11:26:44 AND I'M DEEPLY SORRY THAT IT DID. 11:26:46 WHEN I LERNT THAT 11 MEN HAD LOST THEIR LIVES, I WAS 11:26:50 PERSONALLY DEVASTATED. THREE WEEK $AGO, I ATTENDED A 11:26:54 MEMORIAL SERVICE FOR THOSE MEN AND IT WAS A SHATTERING MOMENT. 11:26:59 I WANT TO OFFER MY SINCERE CONDOLENCE TO THEIR FRIENDS AND 11:27:04 FAMILIES. I CAN ONLY BEGIN TO IMAGINE 11:27:06 THEIR SORROW. I UNDERSTAND HOW SERIOUS THIS 11:27:11 SITUATION IS. IT IS A TRAGEDY. 11:27:14 I WANT TO SPEAK DIRECTLY TO THE SPEM WHO LIVE AND WORK IN THE 11:27:19 GULF REGION. I KNOW THIS INCIDENT HAS HAD A 11:27:23 PROFOUND IMPACT ON YOUR LIVES CAUSED GREAT TURMOIL AND I 11:27:29 DEEPLY REGRET THAT I ALSO DEEPLY REGRET THE IMPACT THE SPILL HAS 11:27:35 HAD ON THE ENVIRONMENT, THE WILD 11:27:41 LIFE AND THE ECOSYSTEM OF THE GULF. 11:27:44 I WANT TO ACKNOWLEDGE THE QUESTIONS THAT YOU AND PUBLIC 11:27:47 ARE RIGHTLY ASKING. HOW COULD THIS HAPPEN? 11:27:50 HOW DAMAGING IS THE SPILL TO THE ENVIRONMENT? 11:27:54 WHY IS IT TAKING SO LONG TO STOP THE FLOW OF OIL AND GAS INTO THE 11:27:58 GULF? WE DON'T YET HAVE ALL THE 11:27:59 ANSWERS TO THESE IMPORTANT QUESTIONS, BUT I HEAR AND 11:28:03 UNDERSTAND THE CONCERNS, FRUSTRATIONS AND ANGER BEING 11:28:08 VOICED ACROSS THE COUNTRY. AND I KNOW THAT THESE SENTIMENTS 11:28:12 WILL CONTINUE UNTIL THE LEAK IS STOP AND UNTIL WE PROVE THROUGH 11:28:15 OUR ACTIONS THAT WE ARE DOING THE RIGHT THING. 11:28:20 YESTERDAY, WE MET WITH THE PRESIDENT OF THE UNITED STATES 11:28:23 AND HIS SENIOR ADVISERS. WE DISCUSSED HOW BP COULD BE 11:28:27 MORE CONSTRUCTIVE IN THE GOVERNMENT'S DESIRE TO BRING 11:28:30 MORE COMFORT AND ASSURANCE TO THE PEOPLE OF THE GULF COAST 11:28:34 BEYOND THE ACTIVITY WE'VE ALREADY DONE. 11:28:39 WE AGREED IN THAT MEETING TO CREATE A $20 BILLION CLAIMS FUND 11:28:42 TO COMPENSATE THE AFFECTED PARTY AND PAY FOR THE CLEANUP AND 11:28:53 ENVIRONMENTAL MITIGATION SAID ALL ALONG WE WOULD PAY THESE 11:28:54 COMFORTS AND NOW THE AMERICAN PEOPLE CAN BE CONFIDENT THAT OUR 11:28:58 WORD IS GOOD. I'VE BEEN TO THE GULF COAST. 11:29:04 I'VE MET WITH FISHERMEN. BUSINESS OWNERS AND FAMILIES. 11:29:09 I UNDERSTAND WHAT THEY'RE GOING THROUGH AND I PROMISED THEM AS 11:29:15 I'M PROMISING YOU THAT WE WILL MAKE THIS RIGHT. 11:29:18 AFTER YESTERDAY'S ANNOUNCEMENT, I HOPE THAT THEY FEEL WE'RE ON 11:29:22 THE RIGHT TRACK. I'M HERE TODAY BECAUSE I HAVE A 11:29:28 RESPONSIBILITY TO THE AMERICAN PEOPLE TO DO MY BEST TO EXPLAIN 11:29:32 WHAT BMPLT P HAS DONE, IS DOING AND WILL DO IN THE FUTURE TO 11:29:37 RESPOND TO THIS TERRIBLE ACCIDENT. 11:29:41 FIRST, WE'RE DOING EVERYTHING WE CAN TO SECURE THE WELL AND IN 11:29:46 THE MEANTIME CONTAIN THE FLOW OF OIL. 11:29:48 WE'RE CURRENTLY DRILLING TWO RELIEF WELLS, WE BELIEVE THEY 11:29:52 REPRESENT THE ULTIMATE SOLUTION. WE EXPECT THIS TO BE COMPLETE IN 11:29:58 AUGUST. SIMULTANEOUSLY, WE'VE BEEN 11:30:01 WORKING ON PARALLEL STRATEGIES TO MINIMIZE OR STOP THE FLOW OF 11:30:04 OIL. WHILE NOT ALL HAVE BEEN MET WITH 11:30:06 SUCCESS, IT APPEARS THAT OUR LATEST CONTAINMENT EFFORT IS NOW 11:30:11 CONTAINING ABOUT 20,000 BARRELS A DAY. 11:30:13 BY THE END OF JUNE, WE EXPECT TO HAVE EQUIPMENT IN PLACE TO 11:30:19 HANDLE BETWEEN 40,000 AND 50,000 BARRELS A DAY. 11:30:26 SECOND, I'VE BEEN CLEAR THAT WE WILL PAY ALL NECESSARY CLEANUP 11:30:30 COMFORTS. WE'VE MOUNTED WHAT THE COAST 11:30:32 GUARD HAS RECOGNIZED AS THE LARGEST SPILL RESPONSE IN 11:30:36 HISTORY. WE'VE BEEN WORKING HARD ON THE 11:30:39 LEADERSHIP UNDER UNIFIED COMMAND TO STOP THE OIL FROM COMING 11:30:45 ASHORE. WHILST WE'RE GRATEFUL THESE 11:30:47 EFFORTS ARE REDUCING THE IMPACTS OF THE SPILL, ANY OIL ON THE 11:30:50 SHORE IS DEEPLY DISTRESSING. WE WILL BE VIGILANT IN OUR 11:30:55 CLEANUP. THI,D AS I HAVE MADE CLEAR FROM 11:30:58 THE BEGINNING, WE WILL PAY ALL LEGITIMATE CLAIMS FOR LOSSES AND 11:31:00 DAMPS CAUSED BY THE SPILL. THOSE ARE NOT JUST WORDS. 11:31:05 WE'VE ALREADY PAID OUT MORE THAN $95 MILLION AND WE'VE ANNOUNCED 11:31:09 AN INDEPENDENT CLAIMS FACILITY HEADED BY KEN FEINBERG TO ENSURE 11:31:14 THE PROCESS IS AS FAIR, TRANSPARENT AND RAPID AS 11:31:20 POSSIBLE. FOURTH, WE NEED TO KNOW WHAT 11:31:22 WENT WRONG. SO THAT WE AS A COMPANY AND WE 11:31:26 AS AN INDUSTRY CAN DO BETTER. THAT IS WHY LESS THAN 24 HOURS 11:31:33 AFTER THE ACCIDENT I COMMISSIONED A NONPRIMPD 11:31:35 INVESTIGATION. DIE IT BECAUSE I WANT TO KNOW 11:31:37 WHAT HAPPENED AND I WANT TO SHARE THE RESULTS. 11:31:41 RIGHT NOW, IT'S SIMPLY TOO EARLY TO SAY WHAT CAUSED THE INCIDENT. 11:31:46 THERE IS STILL EXTENSIVE WORK TO DO. 11:31:48 A FULL ANSWER MUST AWAIT THE OUTCOME OF MULTIPLE 11:31:53 INVESTIGATIONS INCLUDING THE MARINE BOARD. 11:31:56 TO SUM UP, I UNDERSTAND THE SERIOUSNESS OF THE SITUATION AND 11:32:01 THE CONCERNS, FRUSTRATIONS AND FEARS THAT HAVE BEEN AND WILL 11:32:05 CONTINUE TO BE VOICED. I KNOW THAT ONLY ACTIONS AND 11:32:09 RESULTS, NOT MERE WORDS, ULTIMATELY CAN GIVE YOU THE 11:32:13 CONFIDENCE YOU SEEK. I GIVE MY PLEDGE AS THE LEADER 11:32:19 OF BP THAT WE WILL NOT REST UNTIL WE MAKE THIS RIGHT. 11:32:24 WE'RE A STRONG COMPANY AND NO RESOURCES WILL BE SPARED. 11:32:28 WE AND THE ENTIRE INDUSTRY WILL LEARN FROM THIS TERRIBLE EVENT 11:32:34 AND EMERGE STRONGER, SMARTER AND SAFER. 11:32:36 THANK YOU. THANK YOU, MR. HAYWARD. 11:32:46 ONE OF THE BAD PARTS OF CONDUCTING A HEARING WE GET 11:32:48 INTERRUPTED NOW AND THEN BY VOTES. 11:32:50 WE HAVE THREE VOTES PENDING RIGHT NOW. 11:32:52 THERE'S I THINK ABOUT TEN MINUTES REMAINING ON THIS VOTE. 11:32:56 I WOULD SUGGEST INSTEAD OF TRYING TO GET IN THE QUESTIONS, 11:32:58 WE TAKE A BREAK RIGHT NOW, LET'S STAND IN RECESS FOR 30 MINUTE, 11:33:06 WE'LL COME BACK AT NOON AND CONTINUE THIS HEARING. 11:33:08 WELL START WITH QUESTIONS ALL THE MEMBERS. 11:33:10 OKAY? THIS COMMITTEE WILL BE IN RECESS
House Energy Hearing with Tony Hayward / Committee / 1400-1500
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 14:11:39 BART STUPAK: THE COMMITTEE WILL RECONVENE. MR. HAYWARD, I WAS APPROACHED 14:12:03 BY MEMBERS OF THE COMMITTEE WHO ARE NOT HAPPY WITH YOUR LACK OF 14:12:08 CANDOR. WE INITIALLY WANTED TO HAVE THIS 14:12:10 HEARING LAST WEEK. HOWEVER, YOUR STAFF PLEADED WITH 14:12:15 THE COMMITTEE SO YOU COULD BE ADEQUATELY PREPARED FOR THIS 14:12:20 HEARING AND WE AGREED. IN ADDITION TO THE EXTRA WEEK, 14:12:21 WE ALLOWED YOU TO PREPARE, WE SENT YOU A 14-PAGE LETTER 14:12:26 OUTLINING FIVE ISSUES YOU SHOULD BE PREPARED TO ADDRESS IN 14:12:30 TODAY'S HEARING. YOU DID NOT ADDRESS ANY OF THOSE 14:12:33 ISSUES IN YOUR OPENING STATEMENT AND THUS FAR YOU HAVE RESPONDED 14:12:37 TO OUR QUESTIONS WITH LITTLE SUBSTANCE AND MANY CLAIMS OF NOT 14:12:40 KNOWING OR NOT BEING PART OF THE DECISION-MAKING PROCESSES. 14:12:43 YOU'VE PREACHED ACCEPTING RESPONSIBILITY FOR ACTIONS TO 14:12:47 YOUR STAFF IN TOWN HALL MEETINGS AND YET YOU HAVE NOT YET 14:12:54 PROVIDED US WITH DIRECT ANSWERS OR TAKEN RESPONSIBILITY THUS FAR 14:12:56 TODAY. I SINCERELY HOPE THAT WILL YOU 14:12:58 RECONSIDER YOUR APPROACH TO THESE QUESTIONS. 14:13:01 I HOPE YOU WILL BE MORE FORTHCOMING AND LESS EVASIVE 14:13:06 WITH YOUR ANSWERS FOR THE REMAINDER OF YOUR HEARING. 14:13:08 WE SHOULD BE ABLE TO GET THROUGH THE REST OF YOUR HEARING BECAUSE 14:13:14 MEMBERS WANT TO PUSH YOU ON SOME OF THESE ISSUES. 14:13:17 YOU'RE THE CEO. GREAT EXPERIENCE. 14:13:19 YOU'VE GOT A PH.D. YOU'VE BEEN HEAD OF EXPLORATION. 14:13:23 YOU KNOW WHAT IS GOING ON. WE HOPED THAT WE WOULD HAVE MORE 14:13:32 CANDOR RESPONSE TO OUR QUESTIONS. 14:13:33 LET'S TURN TO MS. BLACKBURN FOR QUESTIONS. 14:13:34 FIVE MINUTES, PLEASE. THANK YOU, MR. CHAIRMAN. 14:13:36 INDEED, MR. HAYWARD, WE ARE A LITTLE BIT FRUSTRATED WITH 14:13:40 HEARING YOU SAYING THAT YOU WERE NOT A PARTY TO CERTAIN DECISIONS 14:13:42 OR WERE NOT IN THAT CHAIN OF COMMAND OR THAT YOU CAN'T 14:13:46 COMMENT BECAUSE OF THE ONGOING INVESTIGATIONS. 14:13:49 SO I'M GOING TO TRY A LITTLE BIT DIFFERENT TACT BECAUSE I DO WANT 14:13:52 TO GET SOME ANSWERS AND GET SOME ITEMS ON THE. 14:14:00 I WANT TO GO BACK TO THE SAFETY ISSUES. 14:14:02 I MENTIONED THAT IN MY OPENING STATEMENTS TO YOU. 14:14:06 I GREW UP DOWN ON THE GULF COAST AND THEN MOVED AWAY. 14:14:10 I'M FAMILIAR WITH PEOPLE WORKING OFFSHORE, IF YOU WILL. 14:14:15 AND WHAT I WOULD LIKE TO KNOW FROM YOU, HAVE YOU BEEN BRIEFED 14:14:18 ON THE SAFETY ISSUES AND THE SAFETY CONCERNS AND THEN IF YOU 14:14:24 WERE A PART OF THE DECISION-MAKING PROCESS ON WHAT 14:14:28 WOULD BE CONSIDERED THE BEST OPERATING PRACTICES? 14:14:32 WERE YOU A PART OF THE CHAIN OF WHAND AND WHAT IS THE CHAIN OF 14:14:36 COMMAND FOR DISPUTE RESOLUTION WHEN THERE'S A DIFFERENCE ABOUT 14:14:39 HOW TO APPROACH SAFETY? GO AHEAD. 14:14:46 I'D LOVE YOUR RESPONSE. WELL, I CLEARLY AM THE 14:14:49 ULTIMATE IN THE CHAIN OF COMMAND BUT I WAS NOT INVOLVED IN THE -- 14:14:53 LET'S DO THIS, THEN. IF YOU WERE NOT INVOLVED IN THE 14:14:57 DECISION-MAKING OF HOW SAFETY IS APPROACHED ON THESE RIGS AND 14:15:01 PLATFORMS, WOULD YOU SUBMIT TO US IN WRITING FOR THE RECORD A 14:15:05 DESCRIPTION OF WHAT THAT CHAIN OF COMMAND IS AND WHAT THE 14:15:08 PROCESS IS WHEN THERE'S A DIFFERENCE OF OPINION ON HOW YOU 14:15:12 APPROACH RIG SAFETY? WOULD YOU BE WILLING TO SUBMIT 14:15:16 THAT? AND I WILL ASK YOU AND YOUR TEAM 14:15:17 TO SUBMIT THAT TO US FOR THE RECORD. 14:15:21 IN ADDITION, SINCE BECOMING CEO, HAVE YOU BEEN BRIEFED ON THE 14:15:26 SIGNIFICANT SAFETY INCIDENTS THAT HAVE BEEN INVOLVED IN 14:15:32 ALASKAN PRODUCTION FACILITIES IN THE LAST YEAR? 14:15:33 HAVE YOU BEEN BRIEFED? I HAVE DISCUSSED THOSE 14:15:37 ISSUES. AS A RESULT OF THESE 14:15:40 BRIEFINGS, DID YOU AUTHORIZE ANY CHANGES TO BP POLICIES AND 14:15:45 PRACTICES FOR DEALING WITH THE SAFETY? 14:15:46 INCIDENTS? WE TOOK ACTIONS IN ALASKA TO 14:15:50 CHANGE THOSE ORGANIZATION AND SOME OF THE PROCESSES. 14:15:53 SINCE THE DEEP WATER HORIZON INCIDENT, HAVE YOU MADE CHANGES 14:16:00 AND WHAT ARE THOSE? WILL YOU SUBMIT THOSE TO US FOR 14:16:01 THE RECORD? WE HAVE MADE CHANGES TO OUR 14:16:04 TESTING PROCEDURES AND TO THE INTENSITY WITH WHICH WELL SITES 14:16:16 LEADERS ARE AWARE OF CONTROL PROCEDURES AND A VARIETY OF 14:16:20 OTHER INTERVENTIONS. THAT IS PREDICATED ON WHAT WE 14:16:23 HAVE LEARNED FROM THE INCIDENT SO FAR AND AS WE LEARN MORE, WE 14:16:28 WILL MAKE MORE CHANGES AS WE DEEM APROEP PREE ATE AND I WOULD 14:16:37 BE VERY HAPPY TO SUBMIT TO YOU THE CHANGES THAT WE MADE. 14:16:39 THANK YOU. HAVE YOU -- DID YOU ASK OTHER 14:16:42 COMPANIES FOR HELP IN CLEANING UP THE OIL SPILL? 14:16:46 LAST WEEK WITH THE HEARING WE HAD SEVERAL DIFFERENT HEARINGS. 14:16:50 DID YOU APPROACH EITHER COMPANIES OR COUNTRIES AND ASK 14:16:53 FOR THEIR HELP AND EXPERTISE IN PLUGGING THAT LEAK AND IN 14:16:57 PARTICIPATION IN THE CLEANSNUP. WE SOUGHT HELP FROM BOTH THE 14:17:05 IMMEDIATE IN THE GUL FIREFIGHTER MEXICO AND GLOBALLY FROM AROUND 14:17:09 THE WORLD AND ACROSS AMERICA. THERE ARE 700 ENTITIES INVOLVED 14:17:16 IN THE EFFORT. ALL OF THEM MAJOR OPERATORS IN 14:17:19 THIS COUNTRY, MAJOR OPERATORS FROM ELSEWHERE IN THE WORLD. 14:17:23 MANY OF THE MAJOR ACADEMIC INSTITUTIONS IN THIS COUNTRY, 14:17:27 SOME OF THE GREATEST MINDS IN THE COUNTRY ARE INVOLVED IN 14:17:32 TRYING TO DEAL WITH THIS PROBLEM. 14:17:33 DID THEY PARTICIPATE AT YOUR INVITATION OR THE GOVERNMENT'S 14:17:38 INVITATION? THEY PARTED IN THE FIRST 14:17:43 INSTANCE AND SUBSEQUENTLY THE FEDERAL AUTHORITIES BROUGHT SOME 14:17:49 OF THE GREAT ACADEMIC INSTITUTIONS IN THIS COUNTRY TO 14:17:54 BEAR. OKAY. 14:17:56 REALLY YOU CURRENTLY -- IS BP CURRENTLY WORKING ON 14:18:01 INDUSTRY-WIDE EFFORTS TO LOOK AT SAFETY? 14:18:07 WE HAVE LOOKED AT MMS WITH REGARD TO THE THINGS THAT WE 14:18:10 HAVE LEARNED SO FAR, PARTICULARLY WITH REGARD TO 14:18:18 BLOWOUT PREVENTERS AND AS WE LEARN WHAT THE REALITIES ARE AND 14:18:25 I BELIEVE IN THE COURSE OF THE COMING MONTHS THE INDUSTRY WILL 14:18:28 WORK TOGETHER TO DETERMINE WHAT IS THE BEST WAY FORWARD. 14:18:31 WE HOPE THAT YOU ARE WORKING TOGETHER BECAUSE I HOPE YOU 14:18:37 UNDERSTAND OUR FRUSTRATION WHEN YOU HAVE STATED BEFORE SAFETY 14:18:40 WOULD BE A PRIORITY FOR BP AND WE EXPECT YOU ALL TO TAKE ACTION 14:18:50 ON LESSONS LEARNED. AND WHEN YOU TELL US THAT YOU 14:18:51 ARE TAKING THAT ACTION AND THEN YOU RETURN BECAUSE OF WHAT HAS 14:18:57 OCCURRED, MR. HAYWARD, I CANNOT EVEN BEGIN TO TELL YOU HOW 14:18:59 DISAPPOINTING IT IS TO US THAT YOU ARE SAYING -- AND YOU 14:19:04 MENTIONED ACTIONS AND WORDS IN YOUR TESTIMONY -- BUT, SIR, YOU 14:19:10 ARE GIVING THE RHETORIC. WHAT WE WANT TO SEE GOING 14:19:13 FORWARD IS THE ACTION THAT INDEED YOU HAVE LEARNED THESE 14:19:16 LESSONS. THAT BP HAS LEARNED THESE 14:19:20 LESSONS. AND THAT YOU ARE GOING TO SHARE 14:19:21 THESE BEST PRACTICES WITH THE INDUSTRY. 14:19:23 THAT WOULD BE VERY HELPFUL. THANK YOU FOR BEING BEFORE US 14:19:27 TODAY. I YIELD BACK. 14:19:29 THANK YOU, GENERAL LADY. MR. HAYWARD, YOU INDICATED THAT 14:19:32 YOU MADE RECOMMENDATIONS ON THE BLOWOUT PREVENTER. 14:19:35 YOUR COMPANY HAS. WOULD YOU PROVIDE THAT TO THIS 14:19:39 COMMITTEE? WE CERTAINLY CAN. 14:19:42 NEXT, LET'S TURN TO MR. MARKEY. 14:19:46 THE EXISTENCE OF LARGE CLOUDS OF -- PLUMES OF OIL SUSPENDED 14:19:52 BENEATH THE OCEAN SURFACE IS OF CONCERN BECAUSE THE TOXIC OIL 14:19:56 CAN POISON THE AQUATIC PLANTS AND ANIMALS AND CONSUME OXYGEN, 14:20:03 POTENTIALLY AFFIXED ATING MARINE LIFE. 14:20:07 ON MAY 30th YOU INDICATED THAT YOUR SAMPLES SHOWED NO PLUMES OF 14:20:13 OIL. AGAIN, DENYING THAT THE PLUMES 14:20:18 EXISTED CITING A BP DOCUMENT SAYING THAT THERE ARE NO 14:20:22 HYDROCARBONS BELOW THE SURFACE. EVEN AFTER THE NOAA 14:20:26 ADMINISTRATOR CONFIRMED THE PLUME EXISTENCE, YOUR CEO WENT 14:20:30 ON NATIONAL TELEVISION AND CONTINUED TO DENY THEIR 14:20:35 EXISTENCE. THESE ARE PHOTOGRAPHS PRESENTED 14:20:38 TO US BY THE UNIVERSITY OF GEORGIA WHO HAS SAMPLED THE DEEP 14:20:41 WATER OF THE GULF AND FOUND SUCH PLUMES. 14:20:43 ON THE RIGHT THERE IS A FILTER WITH OIL CLEARLY PRESENT FROM 14:20:48 WATER WITHIN A PLUME AS IT PASSED BY. 14:20:52 NOW, IT ISN'T JUST UNIVERSITY SCIENTISTS DATA. 14:20:56 I HAVE UP HERE ON THE SCREEN AS WELL FROM THE E.P.A. WEBSITE, IT 14:21:05 WAS PREPARED USING THE DATA. THERE ARE 17 RED DOTS INDICATING 14:21:15 THAT YOUR OWN DATA SHOWS EVIDENCE OF SUBSURFACE PLUMES. 14:21:16 THIS IS YOUR DATA, MR. HAYWARD. ARE YOU NOW, ONCE AND FOR ALL, 14:21:19 PREPARED TO CONCEDE THAT THERE ARE PLUMES OR CLOUDS OF OIL 14:21:23 SUSPENDED DEEP BENEATH THE SURFACE OF THE OCEAN? 14:21:27 YES OR NO? AS I UNDERSTAND THE DATA, 14:21:31 CHAIRMAN, IT INDICATES THAT THERE ARE -- THERE IS OIL IN 14:21:35 VERY LOW CONCENTRATIONS, 0.5 PARTS PER MILLION, DISTRIBUTED 14:21:40 THROUGH THE COLUMN. THE DETAILED ANALYSIS THAT NOAA 14:21:46 CONDUCTED IN THREE LOCATIONS AROUND THE SPILL SHOW THAT IN 14:21:50 ONE LOCATION 0.5 PARTS PER MILLION, CLEARLY ATTRIBUTED TO 14:21:54 THIS SPILL. ARE THERE PLUMES OF OIL 14:21:57 BENEATH THE OCEAN SURFACE? THERE ARE CON STRAGSS OF OIL 14:22:01 OF ABOUT 0.5 PARTS PER MILLION IN THE WATER COLUMN. 14:22:05 SOME OF IT IS RELATED TO THIS SPILL. 14:22:08 OTHER SAMPLES HAVE BEEN TYPED TO OTHER OIL. 14:22:15 SO YOU DO NOT DEFINE THAT AS A PLUME? 14:22:19 I'M NOT AN OCEANOGRAPHIC SCIENTIST. 14:22:23 I'M GOING TO TAKE IT AS A CONTINUING NO FROM YOU, IN YOUR 14:22:26 TESTIMONY CONTINUES TO BE AT ODDS AT ALL AGAINST ALL 14:22:30 INDEPENDENT SCIENTISTS. YESTERDAY AT THE ENERGY COMMERCE 14:22:36 ON HEALTH HEARING THE DIRECTOR OF THE NATIONAL INSTITUTE OF 14:22:40 OCCUPATIONAL HEALTH AND SAFETY TOLD ME IN ANSWER TO MY QUESTION 14:22:43 THAT HE HAS ASKED BP FOR A ROSTER OF ALL WORKERS, MULTIPLE 14:22:49 TIMES, AND BP HAS FAILED TO GIVE HIM THAT INFORMATION 14:22:52 THAT IS CRITICAL TO TRACKING CHEMICAL EXPLOSION. 14:22:58 REPRESENTATIVE SUI WAS TO PROTECT THE HEALTH OF THEIR 14:23:02 WORKERS. MR. HAYWARD, WILL YOU COMMIT TO 14:23:04 A IMMEDIATELY PROVIDE THE NATIONAL INSTITUTE OF 14:23:07 OCCUPATIONAL HEALTH AND SAFETY AND THE CENTERS FOR DISEASE 14:23:10 CONTROL WITH ALL OF THE INFORMATION THAT THEY NEED TO 14:23:13 EVALUATE HEALTH IMPACTS AND TO PROTECT THESE WORKERS? 14:23:18 WE'VE PROVIDED ALL INFORMATION REQUESTS ENDEAVOR AS 14:23:23 POSSIBLE AND WE'LL ENDEAVOR TO THAT AS WELL. 14:23:34 WILL YOU PROVIDE ALL INFORMATION THAT THEY ARE 14:23:37 REQUESTING OF YOU. WE WILL CERTAINLY DO IT WITH 14:23:43 THAT ONE. IT'S NOT REASSURING TO THOSE 14:23:53 WORKERS WHO THAT HAVE IMPACT ON THEIR HEALTH. 14:23:58 BP HAS DUMPED 30,000 GALLONS OF DRILLING MUD IN THE OCEAN. 14:24:00 DRILLING MUD IS OFTEN MADE AND MAY HAVE USED SIGNIFICANT 14:24:08 QUANTITIES OF ANTIFREEZE, WHICH IS TOXIC. 14:24:10 MR. HAYWARD, WILL YOU COMMIT TO DISCLOSING THE INGREDIENTS OF 14:24:17 THE DRILLING MUD? YES, WE WILL. 14:24:22 IT'S ALL WATER-BASED MUD WITH NO TOXICITY WHAT SOLVE. 14:24:27 WILL YOU ALSO COMMIT TO DISCLOSING ALL OTHER 14:24:30 MEASUREMENTS YOU HAVE MADE RELATED TO CHEMICAL, OIL, AND 14:24:34 MET AN CONCENTRATIONS IN THE WATER IMMEDIATELY? 14:24:52 AE YOU WILL GIVE US ALL OF THE MEASUREMENTS? 14:24:54 THEY HAVE BEEN MADE AVAILABLE AND WE WILL TON DO THAT. 14:24:58 THANK YOU, MR. CHAIRMAN. THANK YOU. 14:25:14 ANGER AT BP AND ANGER OF OUR ATD ADMINISTRATION IS PAL PAT TABLE. 14:25:19 LOOK AT THE POLLS. AND WE HAVE AN OBLIGATION TO 14:25:25 ADDRESS THE FRUSTRATIONS OF THE AMERICAN PEOPLE. 14:25:29 THE CHIEF EXECUTIVE OF EXXONMOBIL TESTIFIED JUST 14:25:33 YESTERDAY AT THE ENERGY AND ENVIRONMENT SUBCOMMITTEE OF THIS 14:25:41 COMMITTEE THAT WE WOULD NOT HAVE DRILLED THE WELL THE WAY THAT 14:25:46 THEY DID. IN ADDITION, THE PRESIDENT OF 14:25:50 SHELL STATED IT'S NOT A WELL THAT WE WOULD HAVE DRILLED IN 14:25:53 THAT MECHANICAL SETUP AND THERE ARE OPERATIONAL CONCERNS. 14:25:59 MR. HAYWARD, MY PROFESSION, BEFORE CONGRESS, WAS THE 14:26:06 PRACTICE OF MEDICINE OBSTETRICS AND GYNECOLOGY. 14:26:09 IF I HAD DELIVERED A BABY THAT RESULTED IN A BAD OUTCOME, A 14:26:16 SERIOUSLY BAD OUTCOME, AND TWO OF MY FRIENDLY COMPETITORS WELL 14:26:22 RESPECTED PEERS SAID, DOCTOR, IN THIS INSTANCE, PRACTICE BELOW 14:26:27 THE STANDARD OF CARE, I WOULD BE IN SERIOUS WORLD OF HURT. 14:26:38 REFLECTING ON THE FACT THAT A DRILL WAS DRILLED IN A 14:26:46 NONRETROSPECT, WHAT IS YOUR DESIGN FOR THE WELL? 14:26:58 THERE ARE CLEARLY ISSUES IDENTIFIED AND WHEN THE 14:27:01 INVESTIGATION IS COMPLETE WE WILL DRAW THE RIGHT CONCLUSIONS. 14:27:10 YOU'VE HAD 59 DAYS AND YOU'R NOT EXACTLY MOVING WITH FEVER 14:27:13 PITCH HERE. DO YOU BELIEVE BP WAS DRILLING 14:27:17 THE WELL WITH FOLLOWING THE BEST PRACTICES THAT YOU FOLLOWED WHEN 14:27:21 YOU WERE PROMOTED TO CEO A COUPLE OF YEARSING. 14:27:24 I HAVE NO REASON TO CONCLUDE THAT THAT WASN'T THE 14:27:28 CASE. IF I HAD ANY REASON TO BELIEVE 14:27:30 THAT ANYONE WITHIN BP I WOULD TAKE ACTION. 14:27:38 DO YOU BELIEVE THAT THE DECISIONS LEADING ON AND UP TO 14:27:44 APRIL 20th, SUCH AS A DECISION TO USE ONLY SIX CENTRALIZERS, 14:27:50 INSTEAD OF ONE, THE DECISION NOT TO RUN A CEMENT BOND LOG, DO YOU 14:27:53 BELIEVE THAT THOSE DECISIONS REFLECT THE NORMAL DECISION 14:27:56 PROCESS AT BP OR WOULD YOU CHARACTERIZE THAT AS AN 14:28:00 EXCEPTION TO NORMAL OPERATING PROCEDURES? 14:28:06 . THERE'S NOTHING I'VE SEEN IN 14:28:10 THE EVIDENCE SO FAR THAT SUGGESTS ANYONE CAUSED THE HEAD 14:28:12 OF SAFETY. IF THERE ARE, THEN WE'LL TAKE 14:28:19 ACTION. IF YOU HAD BEEN PHYSICALLY 14:28:25 PRESENT ON THAT RIG ALONG WITH THE 11 MEN THAT WERE KILLED, 14:28:33 WOULD YOU HAVE APPROVED TO ONLY USE SIX CENTIMETERS DESPITE THE 14:28:41 RECOMMENDATION TO USE 21? WOULD YOU HAVE MADE THAT 14:28:44 DECISION IF YOU WERE STANDING ON THE DEEP WATER HORIZON RIG? 14:28:48 I'M NOT THE DRILLING ENGINEER SO I'M NOT QUALIFIED TO MAKE 14:28:51 THOSE JUDGMENTS. BETTER PEOPLE THAN I WERE 14:28:54 INVOLVED IN THOSE JUDGMENTS. AND IF OUR INVESTIGATION 14:28:59 DETERMINES THAT AT ANY TIME PEOPLE PUT COSTS AHEAD OF 14:29:04 SAFETY, THEN WE WILL TAKE ACTION. 14:29:06 WELL, WITH ALL DUE RESPECT, MR. HAYWARD, I THINK YOU'RE 14:29:11 COPPING OUT. YOU ARE THE CAPTAIN OF THE SHIP 14:29:13 AND IT'S BEEN SAID BY MEMBERS ON BOTH SIDES OF THE AISLE OF THIS 14:29:18 COMMITTEE, WE HAD A PRESIDENT ONCE THAT SAID, YOU KNOW, THE 14:29:23 BUCK STOPS ON MY DESK. AND I THINK THE BUCK STOPS ON 14:29:32 YOUR DESK. AND I DON'T THINK WE'RE GETTING 14:29:34 THE ANSWERS FROM YOU THAT NEED TO BE PRESENTED TO THIS 14:29:38 COMMITTEE IN A FORTHRIGHT MANNER. 14:29:40 IT'S A LITTLE FRUSTRATING FOR ALL OF US AND IT SEEMS LIKE YOUR 14:29:48 TESTIMONY HAS BEEN WAY TOO EE VASE TIF. 14:29:49 MR. CHAIRMAN, I'LL YIELD BACK. THANK YOU. 14:29:53 I WANT TO FOLLOW UP FROM MY FRIEND FROM OKLAHOMA'S QUESTIONS 14:30:00 ABOUT THE SAFETY AT BP. BECAUSE YOU HAVE STATED 14:30:04 REPEATEDLY SINCE YOU HAVE TAKEN OVER AS CEO THAT SAFE RELIABLE 14:30:08 OPERATIONS ARE NUMBER ONE PRIORITY. 14:30:09 CORRECT? THAT'S CORRECT. 14:30:10 AND YOU'VE BEEN CEO FOR THE PAST THREE YEARS, CORRECT? 14:30:14 CORRECT. THEN, EXPLAIN TO US WHY, 14:30:17 BETWEEN JUNE 2007 AND FEBRUARY 2010, THE OCCUPATIONAL HEALTH 14:30:24 AND SAFETY ADMINISTRATION CHECKED 55 OIL REFINERIES 14:30:29 OPERATING IN THE U.S., TWO OF THOSE 55 ARE OWNED BY BP, AND 14:30:33 BP'S REFINERIES RACKED UP 760 CITATIONS FOR EGREGIOUSLY SAFETY 14:30:42 VIOLATIONS, ACCOUNTING FOR 95% OF THE WORST SAFETY VIOLATIONS 14:30:48 THAT OSHA MONITORS IN THE WORKPLACE. 14:30:54 THAT DOESN'T SOUND LIKE A CULTURE OF SAFETY. 14:30:55 WE ACKNOWLEDGE THAT WE HAD SERIOUS ISSUES IN 2005 AND 2006. 14:30:59 I'M NOT TALKING ABOUT 2005 AND 2006. 14:31:04 I'M CITING AN OSHA REPORT THAT THERE IS A SYSTEMIC SAFETY 14:31:16 PROBLEM AND OF THOSE 760 CLASSIFIED AS WILLFUL AND EEG 14:31:21 GREEJ JOUS, THAT'S IMPORTANT TO NOTE THAT IS THE WORST VIOLATION 14:31:25 THAT OSHA CAN IDENTIFY. AND IT'S A VIOLATION COMMITTED 14:31:30 WITH PLAIN INDIFFERENCE TO OR INTENTIONAL DISREGARD FOR 14:31:36 EMPLOYEE SAFETY AND HEALTH. 97% OF ALL OF THOSE VIOLATIONS 14:31:39 AT U.S. REFINERIES ON YOUR WATCH WERE AGAINST YOUR COMPANY. 14:31:43 THAT DOESN'T SOUND LIKE A COMPANY THAT, TO USE YOUR WORDS 14:31:48 S. COMMITTED TO SAFE, RELIABLE OPERATIONS AS YOUR NUMBER ONE 14:31:52 PRIORITY. THERE'S A COMPLETE DISCONNECT 14:31:55 BETWEEN YOUR TESTIMONY AND THE REALITY OF THESE OSHA FINDINGS. 14:31:58 DO YOU UNDERSTAND THAT? I UNDERSTAND WHAT YOU'RE 14:32:05 SAYING. SO WE ALSO HAD MR. BARTON 14:32:12 MAKE THE COMMENT ABOUT WHAT HAPPENED AT THE WHITE HOUSE. 14:32:14 WERE YOU THERE AT THE WHITE HOUSE? 14:32:20 I WAS. DO YOU THINK THAT BP WAS 14:32:21 SHAKEN DOWN BY THE OBAMA ADMINISTRATION TO COME UP WITH 14:32:27 THIS $20 BILLION COMPENSATION SNUND. 14:32:28 FUND? WE FORMED A WAY FORWARD AND 14:32:31 TRIED TO WORK TOGETHER TO DEAL WITH THE LEAK, THE RESPONSE TO 14:32:39 THE LEAK, AND TO MAKE A RETURN IN THE GULF COAST TO IT IS PAST 14:32:46 AND THAT'S WHAT WE ARE GOING TO DO. 14:32:48 AND I REALIZE THAT WE SPEAK THE SAME LANGUAGE BUT IT'S NOT 14:32:53 ALWAYS THE SAME LANGUAGE. WHEN WE SPEAK ENGLISH IN THE 14:32:57 UNITED STATES AND ENGLISH IN GREAT BRITAIN. 14:32:59 HERE IN THIS COUNTRY, THE WORD SHAKEN DOWN MEANS SOMEBODY IN A 14:33:04 POSITION OF DISADVANTAGE IS FORCED TO DO SOMETHING AGAINST 14:33:06 THEIR WILL. IS THAT HOW YOU VIEWED THESE 14:33:10 NEGOTIATIONS AT THE WHITE HOUSE YESTERDAY? 14:33:11 AS I SAID, WE CAME TOGETHER TO FIGURE OUT A WAY OF WORKING 14:33:16 TOGETHER TO RESOLVE WHAT IS CLEARLY A VERY, VERY SERIOUS 14:33:21 SITUATION. AND THE REASON YOU CAME 14:33:22 TOGETHER, SIR, IS BECAUSE IT WAS NOT ONLY IN THE BEST INTEREST OF 14:33:26 THE UNITED STATES TAXPAYERS AND THE CITIZENS OF THIS COUNTRY, 14:33:30 IT'S ALSO IN THE BEST INTEREST OF BP TO TRY TO GET THIS PROBLEM 14:33:34 SOLVED SO THAT IT CAN MOVE FORWARD. 14:33:36 ISN'T THAT TRUE? THAT'S UNDOUBTABLY TRUE. 14:33:45 AND WHEN THE RANKING MEMBER REFERRED TO THIS COMPENSATION 14:33:48 FUND, WHICH I APPLAUD AS A POSITIVE STEP FORWARD AS A SLUSH 14:33:55 FUND, I WANT YOU TO KNOW THAT IN THIS COUNTRY THAT IMPLIES A VERY 14:33:59 NEGATIVE CONNOTATION AS SOMETHING ILLEGAL, BELOW THE 14:34:02 SURFACE OF WHAT IS ACCEPTABLE. DID YOU CONSIDER THIS 14:34:05 COMPENSATION FUND FOR PEOPLE WHO HAD LOST THEIR LIVES, LOST THEIR 14:34:10 BUSINESSES, LOST THEIR ENVIRONMENT, LOST THEIR ABILITY 14:34:12 TO EARN -- DID YOU CONSIDER THAT TO BE A SLUSH FUND? 14:34:15 AS WE SAID YESTERDAY, THE FUND IS A SIGNAL OF OUR 14:34:21 COMMITMENT TO DO RIGHT TO ENSURE THAT INDIVIDUALS, FISHERMEN, 14:34:29 CAPTAINS, SMALL HOTEL OWNERS, EVERYONE WHO HAS BEEN IMPACTED 14:34:33 BY THIS IS KEPT WHOLE. THAT IS WHAT I HAVE SAID FROM 14:34:37 THE VERY BEGINNING OF THIS AND THAT IS WHAT WE INTEND TO DO. 14:34:41 AND AS I SAID IN MY TESTIMONY, I HOPE NOW PEOPLE WILL SAY THAT WE 14:34:45 ARE GOOD FOR OUR WORD. AND CAN WE TAKE THAT AS A NO 14:34:50 IN RESPONSE TO MY QUESTION YOU DID NOT TAKE THAT THIS WAS A 14:34:57 SLUSH FUND? I CERTAINLY DID NOT THINK IT 14:34:59 WAS A SLUSH FUND, CONGRESSMAN. THANK YOU. 14:35:04 I'LL YIELD BACK. FIVE MINUTES. 14:35:07 THANK YOU, MR. CHAIRMAN. THANK YOU FOR BEING WITH US, MR. 14:35:11 HAYWARD. EARLIER IN OUR CONFERENCE, 14:35:20 RESPONDED, IF I WROTE THIS DOWN CORRECTLY, EVERYTHING WE DO IS 14:35:22 SUBJECT TO REGULATORY OVERSIGHT. AND WHO IS THAT? 14:35:24 WHEN WE'RE TALKING ABOUT REGULATORY OVERSIGHT? 14:35:26 THE REGULATORY OVERSIGHT IS THE DEEP WATER DRILLING 14:35:32 OPERATIONS IS THE MINERAL MANAGEMENT SERVICES. 14:35:36 BUT HERE WITHIN THE FEDERAL GOVERNMENT, WHO WOULD BE OUT ON 14:35:40 THE RIG FOR THAT OVERSIGHT? IT IS THE INSPECTORS OF THE 14:35:45 MINERAL MANAGEMENT SERVICES, I BELIEVE. 14:35:47 AND I'M SURE THE RECORDS ARE OUT THERE, BUT WHEN WAS THE LAST 14:35:50 TIME THAT THE MMS WOULD HAVE BEEN ON THE RIG? 14:35:53 I'M AFRAID I'M NOT AWARE OF THAT DATE, BUT I'M RELATIVELY 14:35:58 SURE THAT IT WAS SHORTLY BEFORE THIS INCIDENT. 14:36:00 DO YOU KNOW OF ANY CITATIONS ISSUED DURING THAT TIME THAT 14:36:03 THEY WERE OUT THERE ON THE SFLIG. 14:36:08 I'M NOT AWARE OF ANY CITATIONS. 14:36:11 LET ME ASK THIS QUESTION. I KNOW I'VE TALKED TO QUITE A 14:36:13 FEW MEMBERS FROM THE GULF COAST AND ALSO FROM NEWS REPORTS AND 14:36:18 THERE'S BEEN MANY, MANY CASES WHERE THEY ARE TALKING ABOUT IT 14:36:22 TAKING FIVE DAYS FOR A TURN AROUND TIME AND ONCE IT 14:36:24 STARTS -- AND I CAME FROM LOCAL GOVERNMENT. 14:36:26 AND SO THERE'S A CHAIN OF COMMAND OUT THERE FOR LOCAL 14:36:30 GOVERNMENT, STATE GOVERNMENT, AND THEY ARE SAYING OVER AND 14:36:33 OVER AND OVER, IT TAKES ABOUT FIVE DAYS. 14:36:36 A LOT OF TIMES THEY SAY WE HAVE TO GO TALK TO BP. 14:36:39 I WAS JUST WONDERING, BECAUSE KNOWING THAT TIME IS OF THE 14:36:44 ESSENCE, OF ALL OF THE CRITICAL MATTERS THAT ARE HAPPENING, WHY 14:36:49 IS IT THAT THIS TURN AROUND TIME TAKES SO LONG? 14:36:52 I'M AFRAID I CAN'T ANSWER THAT QUESTION. 14:36:54 I DON'T KNOW. CAN YOU GET THAT INFORMATION 14:36:56 FOR US? WE CAN, YES, CERTAINLY. 14:37:01 THE NEXT QUESTION IS PROBABLY GOING TO HAVE THE SAME RESPONSE. 14:37:03 BUT THE QUESTION IS, THEN, WHO SET THE PROCEDURE UP THIS WAY 14:37:06 THAT WE WOULD HAVE A SITUATION WHERE WE TAKE A FIVE-DAY TURN 14:37:09 AROUND TIME? DO YOU HAVE ANY KNOWLEDGE OF 14:37:12 THAT? I'M AFRAID I DON'T KNOW. 14:37:30 PROBLEMS THAT ARISE THAT YOU CAN GET THINGS TURNED AROUND 14:37:36 PRETTY QUICKLY? MY PRIMARY COMMUNICATION HAS 14:37:43 BEEN WITH THAD ALLEN. HOW OFTEN WOULD THAT BE? 14:37:46 TYPICALLY ONCE A DAY OR OFTEN MORE THAN ONCE A DAY. 14:37:57 AND AGAIN, AS WITH THE LADY FROM TENNESSEE, WE HAVE 14:38:03 FRUSTRATION WITH GETTING RESPONSES BUT WITH THAT, WE 14:38:06 YIELD BACK. EIGHT MINUTES, PLEASE. 14:38:08 THANK YOU SO MUCH, MR. CHAIRMAN. 14:38:10 MR. HAYWARD, IN YOUR INITIAL TESTIMONY YOU TESTIFIED THAT BP 14:38:19 HAS DRILLED HUNDREDS OF WELLS AROUND THE WORLD. 14:38:21 HOW MANY ARE DEEP WATER WELLS? I DON'T KNOW THE PRECISE 14:38:26 NUMBERS BUT WE DRILL A LOT OF DEEP WATER WELLS IN VARIOUS 14:38:29 PARTS OF THE WORLD. YOU DON'T KNOW HOW MANY. 14:38:30 DO YOU THINK THAT BP'S WELLS, IRRESPECTIVE OF WHERE THEY ARE 14:38:35 DRILLED, SHOULD BE DRILLED AT THE HIGHEST INDUSTRY STANDARDS? 14:38:38 I BELIEVE THAT'S WHAT WE TRY AND DO. 14:38:41 SO YOUR ANSWER WOULD BE YES? UH-HUH. 14:38:44 OKAY. AND AS THIS WELL WAS BEING 14:38:46 DRILLED, FROM YOU INFORMED AS CEO OF THE COMPANY OF THE 14:38:53 P PROGRESS OF THE WELL? 14:38:56 I WAS NOT. YOU WERE NOT. 14:38:57 BEFORE I CONTINUE, I KNOW YOU'VE HAD DIFFICULTY ANSWERING SOME OF 14:39:00 THE TECHNICAL QUESTIONS THAT MEMBERS HAVE ASKED YOU. 14:39:02 SO I KNOW THAT YOU BROUGHT A TECHNICAL EXPERT WITH YOU. 14:39:05 WOULD YOU LIKE US TO SWEAR HIM IN SO HE CAN HELP YOU ANSWER 14:39:08 SOME OF MY TECHNICAL QUESTIONS? I THINK THAT WOULD DEPEND ON 14:39:12 THE QUESTION. ALL RIGHT. 14:39:16 LET'S SEE HOW IT GOES. NOW, MR. HAYWARD, YOU SEE THAT 14:39:17 YOU RECEIVED THE CHAIRMAN'S JUNE 14th LETTER TO YOU WHICH TALKS 14:39:26 ABOUT WELL DESIGN, CENTRALIZER, CEMENT BOND LOG, AND LOCK DOWN 14:39:34 SLEEVE. I WANT TO ASK YOU IN MY 14:39:36 QUESTIONS ABOUT ONE OF THOSE ISSUES, AND THAT'S THE CEMENT 14:39:41 BOND LOG. IF YOU CAN TAKE THAT NOTEBOOK 14:39:46 THAT IS TO YOUR LEFT, OPEN IT UP. 14:39:47 IN THE FRONT FLAP THERE'S A MEMO WHICH WAS WRITTEN FROM BRIAN 14:39:52 MORRELL TO RICHARD MILLER ON WEDNESDAY, APRIL 14th. 14:40:00 AND IT SAYS, THIS HAS BEEN A NIGHTMARE WELL WHICH HAS BEEN 14:40:04 ALL OVER THE PLACE. DID ANYONE INFORM YOU AS CEO OF 14:40:07 THE COMPANY IN APRIL OF THIS YEAR THAT THIS WAS A NIGHTMARE 14:40:10 WELL? THEY DID NOT. 14:40:11 DID YOU SUBSEQUENTLY SEE THIS MEMO? 14:40:14 HAVE YOU SEEN THIS MEMO? I SAW THIS MEMO WHEN IT WAS 14:40:19 RAISED BY YOUR COMMITTEE. AND THAT'S THE FIRST TIME 14:40:22 YOU'VE EVER HEARD OF IT? THAT'S THE FIRST TIME I'VE 14:40:26 HEARD OF IT. IS THAT THE FIRST TIME THAT 14:40:29 YOU HEARD OF IT BEING A NIGHTMARE CEO? 14:40:31 WHEN I FIRST SAW THIS MEMO. LET'S TALK ABOUT THE 14:40:35 CEMENTING JOB. BECAUSE ALL OF THE TESTIMONY 14:40:36 THAT WE'VE HAD IN THIS COMMITTEE, THROUGH OUR HEARINGS, 14:40:39 ALSO IN THE NATURAL RESOURCES COMMITTEE THROUGH THEIR HEARINGS 14:40:46 INDICATES THAT THE CHOICES THAT BP MADE AND ITS SUN CONTRACTORS 14:40:52 IN ORDER TO SAVE MONEY LED TO BLIND FAITH IN A CEMENTING JOB. 14:40:58 FIRST OF ALL, BP CHOOSE A RISKIER WELL DESIGN AND THE 14:41:04 CHAIRMAN, CHAIRMAN WAXMAN TALKED ABOUT THIS FOR A MOMENT. 14:41:06 THE BEST PRACTICE WOULD HAVE BEEN TO USE A LINER AND A TIE 14:41:12 BACK WHICH PROVIDES FOUR BARRIERS TO PREVENT THE FLOW OF 14:41:15 DANGEROUS HYDROCARBONS TO THE WELL HEAD. 14:41:18 INSTEAD, BP DESIGNED A STRONG STRING APPROACH THAT HAS ONLY 14:41:23 TWO BARRIERS. AN INTERNAL DOCUMENT INDICATED 14:41:27 THAT THIS APPROACH WAS NOT RECOMMENDED BECAUSE "CEMENTING 14:41:31 SIMULATIONS INDICATE IT'S UNLIKELY TO BE A SUCCESSFUL 14:41:35 CEMENT JOB." AND YOU CAN LOOK AT TAB SIX OF 14:41:38 THE NOTEBOOK THAT YOU HAVE IN FRONT OF YOU TO SEE THAT, MR. 14:41:43 HAYWARD. IT SAYS, CEMENT SIMULATIONS 14:41:46 INDICATE IT IS UNLIKELY TO BE A SUCCESSFUL CEMENT JOB DUE TO 14:41:51 FORMULATION BREAKDOWN. THIS IS AN INTERNAL BP 14:41:54 CONFIDENTIAL DOCUMENT FROM MID-APRIL. 14:41:56 HAVE YOU SEEN THIS DOCUMENT BEFORE? 14:41:58 I SAW IT AS A CONSEQUENCE OF THE LETTERS -- 14:42:02 BUT YOU DID NOT SEE IT AT THE TIME IN. 14:42:04 I DID NOT SEE IT AT THE TIME. BUT THERE WERE BP FOLKS THAT 14:42:07 SAW IT, TO YOUR KNOWLEDGE? THERE WERE CERTAINLY BP 14:42:10 PEOPLE WHO SAW THIS. OKAY. 14:42:14 SECONDLY, THE DOCUMENT SAYS THAT THERE WOULD BE A POTENTIAL NEED 14:42:17 TO VERIFY WITH THE BOND LOG AND REFORM A -- BUT BP CHOOSE A 14:42:25 RISKIER APPROACH. SECONDLY, THE RISKIER 14:42:30 CENTRALIZER OPTION WAS CHOSEN. EXPERTS HAVE TOLD US THAT THE 14:42:33 BEST PRACTICE WOULD HAVE BEEN TO USE 21 SENT TRALIZERS, BUT BP 14:42:38 ONLY USED SIX. IF YOU TAKE A LOOK AT TAB 8, IT 14:42:46 SAYS, ON PAGE 18, IT SAYS DID YOU THIS EVEN THOUGH YOUR 14:42:52 CEMENTER SAID THAT THIS WOULD CREATE A "SEVERE RISK THAT THE 14:42:58 CEMENT JOB WOULD FAIL." IT SAYS, BASED ON -- IT SAYS 14:43:07 THAT IT WOULD BE A SEVERE RISK AND BP OPERATIONS DRILLING 14:43:09 ENGINEER WROTE ABOUT THIS DECISION, WHO CARES, IT'S DONE, 14:43:15 END OF STORY, WILL PROBABLY BE FINE AND GET A GOOD CEMENT JOB. 14:43:19 FROM YOU AWARE OF THAT DOCUMENT AT THE TIME, MR. HAYWARD? 14:43:30 I WAS NOT AWARE OF THAT? WHEN WERE YOU FIRST MADE 14:43:35 AWARE? BY YOUR COMMITTEE. 14:43:37 BUT YOU WOULD NOT DENY THAT BP OR ITS EMPLOYEES WERE NOT 14:43:42 AWARE OF THAT DOCUMENT? THERE WERE PEOPLE WITHIN BP 14:43:46 THAT WERE AWARE OF THAT DOCUMENT. 14:43:48 WOULD YOU SAY THAT IT'S BEST TO SAY END OF STORY, WE'LL 14:43:51 PROBABLY BE FINE AND GET A GOOD CEMENT JOB? 14:43:55 I THINK THAT E-MAIL IS A CAUSE OF CONCERN. 14:43:59 I WOULD THINK SO. I WOULD LIKE TO KNOW THE 14:44:01 CONTEXT OF WHICH IT WAS SENT AND AS I SAID, A NUMBER OF TIMES, IF 14:44:08 THERE WAS COST AHEAD OF SAFETY, I WILL TAKE ACTION. 14:44:10 I UNDERSTAND. LET ME FINISH WITH THE CEMENT 14:44:14 BOND. NOW, YOU WOULD -- BP FAILED TO 14:44:18 PERFORM THE MOST EFFECTIVE TESTS THAT WAS KNOWN TO DETERMINE 14:44:24 WHETHER THE CEMENT WAS PROPERLY SEALED. 14:44:25 AND THAT'S THE CEMENT BOND LOG TEST. 14:44:27 THERE WAS A CONTRACTOR ON BOARD HIRED TO PERFORM THIS TASK BUT 14:44:32 THEY WERE SENT AWAY 11 HOURS PRIOR TO THE EXPLOSION. 14:44:35 THIS TEST WAS DESCRIBED BY THE CHIEF SAFETY OFFICER AS "THE 14:44:41 ONLY TASK THAT CAN REALLY DETERMINE THE ACTUAL 14:44:45 EFFECTIVENESS OF THE BOND BETWEEN THE CEMENT SHEETS. 14:44:48 THE FORMATION AND THE CASING IT SELF." 14:44:51 NOW, THE COMMITTEE HAS CONSULTED AN INDEPENDENT EXPERT WHO SAID 14:44:55 THAT CEMENT BOND LOGS SHOULD ALWAYS BE USED. 14:44:59 ANOTHER EXPERT SAID IT'S UNHEARD OF NOT TO PERFORM THIS TASK. 14:45:04 HE CALLED YOUR DECISION, AND I'M QUOTING, HORRIBLY NEGLIGENT. 14:45:11 SO I WANT TO ASK YOU A QUESTION. DO YOU THINK A CEO OF THIS 14:45:13 COMPANY, IT WAS A MISTAKE NOT TO CONDUCT THE CEMENT BOND LOG 14:45:17 TEST? THAT IS WHAT OUR 14:45:19 INVESTIGATION WILL DETERMINE. SO YOUR ANSWER WOULD BE YES, 14:45:22 IT WAS A MISTAKE, CORRECT? I'M NOT ABLE TO ANSWER YES OR 14:45:28 NO UNTIL THE INVESTIGATION IS COMPLETE. 14:45:30 BECAUSE YOUR LAWYERS TOLD YOU NOT TO OR WHAT? 14:45:33 BECAUSE I WAS NOT INVOLVED. I'M SORRY. 14:45:35 BUT YOU JUST SAID YOU THINK THAT ALL OF THE EVIDENCE SHOW IT 14:45:38 IS WAS A MISTAKE, CORRECT? THAT IS NOT CORRECT. 14:45:41 THAT'S NOT WHAT I SAID. OKAY. 14:45:44 DO YOU THINK IT WAS ALL RIGHT NOT TO CONDUCT IT? 14:45:46 I THINK WE NEED TO COMPLETE THE INVESTIGATION. 14:45:48 OKAY. AND DETERMINE WHETHER RUNNING 14:45:50 A CEMENT BOND LOG OR NOT WOULD HAVE CREATED A MAJOR DIFFERENCE 14:45:54 TO WHAT HAPPENED HERE. OKAY. 14:45:57 LET ME ASK YOU THIS. ARE YOU AWARE OF THE FACT THAT 14:46:02 IT WOULD HAVE COST ABOUT $128,000 AND TAKEN NINE TO 12 14:46:05 HOURS TO COMPLETE THE CEMENT BOND LOG TEST? 14:46:08 I AM AWARE OF THAT FACT, YES. YES. 14:46:14 OKAY. I YIELD BACK. 14:46:17 THANK YOU, MR. CHAIRMAN. THANK YOU. 14:46:19 MR. DOYLE FOR QUESTIONS, PLEASE. THANK YOU, MR. CHAIRMAN. 14:46:22 MR. HAYWARD, IN YOUR TESTIMONY YOU SAY THAT SOME OF THE BEST 14:46:27 MINES AND THE DEEPEST EXPERTISE ARE BEING BROUGHT TO BEAR ON THE 14:46:30 OIL SPILL AND IT'S DIFFICULT TO IMAGINE THE GATHERING OF A 14:46:37 LARGER MORE TECHNICALLY PRO FISH SENT TEAM. 14:46:40 I KNOW THAT'S MEANT TO REASSURE US THAT EVERYTHING IS BEING 14:46:43 DONE. BUT IT MAKES ME WONDER WHO WAS 14:46:46 MAKING THESE KEY DECISIONS BEFORE THE ACCIDENT. 14:46:49 ONE OF THE KEY DECISIONS WAS WHAT TYPE OF TUBE TO INSERT. 14:46:55 THE SECOND DESIGN OFFERS MORE BARRIERS TO UNINTENDED GAS FLOW 14:46:59 AND ON TUESDAY THE OTHER OIL COMPANIES THAT WE TALKED TO TOLD 14:47:02 US THAT THEY WOULD HAVE CHOSEN THAT DESIGN. 14:47:05 LOOKING BACK, THE DECISION THAT BP MADE APPEARS TO HAVE HAD 14:47:09 SERIOUS CONSEQUENCES. MR. HAYWARD, FROM YOU INVOLVED 14:47:12 IN THAT DECISION? I WAS NOT INVOLVED IN THAT 14:47:15 DECISION. WERE YOU AWARE OF THAT 14:47:16 DECISION? I WAS NOT INVOLVED OR AWARE 14:47:18 OF ANY DECISIONS BEING MADE REGARDING THIS WELL WHEN IT WAS 14:47:24 BEING DRILLED. WE ASKED ABOUT YOUR 14:47:28 INSPECTORS. THEY TOLD US IT WAS THE ANDY 14:47:31 ENGLISH AND DOUG SUBTLES, THE CHIEF OPERATING OFFICER. 14:47:36 WAS ANDY ENGLISH INVOLVED IN THIS DECISION? 14:47:39 I CAN'T ANSWER THAT QUESTION. I GENUINELY DON'T KNOW. 14:47:42 I WOULD BE VERY SURPRISED. WHAT ABOUT DOUG SUTTLES. 14:47:47 I WOULD BE VERY SURPRISED THAT THEY WERE INVOLVED IN ANY 14:47:52 DECISION. WE FIND NO RECORD THAT THEY 14:47:54 KNEW ANYTHING ABOUT THIS DECISION. 14:47:56 IN FACT, WE FIND NO EVIDENCE THAT THEY EVER RECEIVED 14:47:58 BRIEFINGS ON THE ACTIVITIES ABOARD THE DEEP WATER HORIZON 14:48:02 BEFORE THE EXPLOSION. THESE DECISIONS ALL SEEM TO HAVE 14:48:06 BEEN DELEGATED TO MUCH LOWER-RANKING OFFICIALS. 14:48:09 WELL, MR. HAYWARD, THEN, WHO WAS THE ONE WHO MADE THE DECISION TO 14:48:12 USE A SINGLE TUBE OF METAL FROM THE TOP OF THE WELL TO THE 14:48:15 BOTTOM? WHO DID MAKE THAT DECISION? 14:48:17 I'M NOT SURE EXACTLY WHO MADE THE DECISION. 14:48:19 IT WOULD HAVE BEEN A DECISION TAKEN BY THE DRILLING 14:48:22 ORGANIZATION IN THE GULF OF MEXICO. 14:48:28 THE TECHNICAL EXPERTS THAT HAVE THE -- 14:48:31 BUT YOU CAN'T TELL THIS COMMITTEE WHO THAT WAS? 14:48:34 I CAN'T SITTING HERE TODAY, I'M AFRAID. 14:48:37 YOU CAN GET THIS INFORMATION TO OUR COMMITTEE? 14:48:39 I THINK IT'S PRETTY AMAZING THAT THIS IS A DECISION THAT HAD 14:48:43 ENORMOUS CONSEQUENCES AND YOU CAN'T EVEN TELL THE COMMITTEE 14:48:45 WHO MADE THE DECISION ON BEHALF OF YOUR COMPANY. 14:48:48 AND THE REASON I'M ASKING YOU THESE QUESTIONS, BECAUSE YOUR 14:48:55 INDUSTRY IS DIFFERENT THAN MANY. YOU'RE NOT THE CEO OF A 14:48:57 DEPARTMENT STORE CHAIN WHERE IT'S FINE TO LEAVE DECISIONS TO 14:48:59 ABOUT RUNNING THE STORE TO BRANCH MANAGERS. 14:49:01 YOU KNOW, IF A DEPARTMENT STORE MIDDLE MANAGER MAKE AS MISTAKE, 14:49:05 THERE'S NO LIFE OR DEATH CONSEQUENCES. 14:49:07 WHAT YOU DO IS DIFFERENT. YOU'RE DRILLING FAR BELOW SEA 14:49:11 LEVEL INTO A REGION THAT'S MORE LIKE OUTER SPACE THAN ANYTHING 14:49:14 ELSE. THE CONSEQUENCES OF THAT 14:49:15 DRILLING ARE HUGE. IF A MISTAKE OR MISJUDGMENT IS 14:49:22 MADE, WORKERS ON THE RIG CAN GET KILLED AND AN ENVIRONMENTAL 14:49:25 CATASTROPHE CAN BE UNLEASHED THE BEST MINDS IN THE SENIOR 14:49:29 LEADERSHIP OF A COMPANY SHOULD BE PAYING CLOSE ATTENTION TO 14:49:31 THOSE RISKS BUT IT DIDN'T HAPPEN HERE AND NOW WE'RE ALL PAYING 14:49:35 THE CONSEQUENCES BECAUSE THOSE OF YOU AT THE TOP DON'T SEEM TO 14:49:38 HAVE A CLUE ABOUT WHAT WAS GOING ON IN THIS RIG. 14:49:41 I'M SITTING HERE THINKING, I COULD BE A CEO OF AN OIL 14:49:48 COMPANY. I HEAR IT PAYS BETTER THAN BEING 14:49:49 A MEMBER OF CONGRESS BECAUSE I'VE WATCHED YOU, IN FRONT OF 14:49:51 THIS COMMITTEE, NOT GIVE US MUCH INFORMATION ON ANYTHING HERE. 14:49:53 I WANT TO ASK YOU ONE LAST QUESTION WHILE I HAVE SOME TIME. 14:49:58 YOU TOLD US THAT YOU'RE DOING EVERYTHING POSSIBLE TO STOP THIS 14:50:04 WELL FROM LEAKING. BUT IT SEEMS TO ME THAT WHAT 14:50:05 WE'RE LEFT WITH NOW IS WAITING FOR THIS RELIEF WELL TO BE 14:50:09 DRILLED AND THAT'S GOING TO HAPPEN SOMETIME IN AUGUST. 14:50:15 SO TODAY IS JUNE 17th. BACK IN ONE TOOK OVER NINE MONTHS TO CAP 14:50:23 AFTER DRILLING SEVERAL RELIEF WELLS. 14:50:25 THAT WELL WAS ONLY 160 FEET DOWN INTO THE OCEAN WHILE THE McCONDO 14:50:31 ZELL WELL WAS OVER 5,000 FEET BENEATH THE SURFACE OF THE 14:50:35 OCEAN. ARE WE AT THE POINT NOW WHERE BP 14:50:38 IS DOING NOTHING AND UNTIL THE RELIEF WELL GETS DOWN THERE OR 14:50:42 ARE YOU TRYING SOME DIFFERENT TECHNOLOGY OR SOME OTHER WAY TO 14:50:45 KILL THE WELL BEFORE YOU GET A RELIEF WELL DOWN THERE? 14:50:49 IS THERE ANYTHING ELSE ON THE HORIZON. 14:50:51 I'M AFRAID THERE ARE NO OPTIONS TO KILL THIS WELL OTHER 14:50:54 THAN A WELL FROM THE BASE OF THE RESERVOIR. 14:50:57 AS YOU ARE ALL AWARE, WE TRIED TO KILL THE WELL FROM THE TOP 14:51:01 USING A TOP KILL OPERATION AND THE PRESSURES IN THE WELL ARE 14:51:04 SUCH THAT IT'S NOT POSSIBLE TO DO THAT. 14:51:07 SO WE HAVE TO RELY ON THE RELIEF WELLS. 14:51:09 IN THE INTERIM, WE ARE CONTINUING TO CONTAIN AS MUCH OF 14:51:13 THE OIL AS WE CAN AND THAT OPERATION IS CURRENTLY 14:51:16 CONCERNING 20,000 BARRELS A DAY. BY THE END OF THIS MONTH WE'LL 14:51:20 HAVE THE ABILITY TO CONTAIN BETWEEN 40,000 AND 50,000 14:51:23 BARRELS A DAY AND BY THE MIDDLE OF JEWEL, BETWEEN 60 AND 0,000 14:51:29 BARRELS A DAY. I'LL ASK YOU A QUESTION I 14:51:31 ASKED OTHER OIL EXECUTIVES ON TUESDAY. 14:51:34 WHY WOULDN'T YOU JUST DRILL RELIEF WELLS WHEN YOU DRILL THE 14:51:37 MAIN WELL SOFUL SOMETHING LIKE THIS HAPPENED, INSTEAD OF US 14:51:40 WAITING TWO, THREE MONTHS AND WATCHING MILLIONS OF BARRELS OF 14:51:43 OIL COME INTO THE OCEAN DESTROYING OUR ECOSYSTEM AND OUR 14:51:46 WAY OF LIFE IN THE GULF COAST, THAT YOU COULD KILL THAT WELL IN 14:51:49 A SHORT PERIOD OF TIME? I UNDERSTAND THE EXTRA RELIEF 14:51:53 WELL WOULD COST YOU A LITTLE BIT MORE MONEY BUT IT SEEMS TO ME IN 14:51:56 THIS CASE IT WOULD HAVE SAVED YOU BILLIONS OF DOLLARS. 14:51:59 WHAT ARE YOUR THOUGHTS ON DRILLING RELIEF WELLS ALONG WITH 14:52:03 MAIN WELLS? I THINK WE WOULD NEED TO LOOK 14:52:05 AT ALL OF THE OPTIONS AVAILABLE TO US GOING FORWARD WITH RESPECT 14:52:09 TO DEEP WATER EXPLORATION. MY TIME'S UP. 14:52:13 THANK YOU. QUESTIONS, PLEASE. 14:52:19 THANK YOU, MR. CHAIRMAN. I WANTED TO FOCUS ON THE 14:52:24 MIND-SET OF BP WHEN IT COMES TO ITS WORKERS. 14:52:28 YOU SAID IN YOUR OPENING STATEMENT THAT YOU WERE 14:52:32 PERSONALLY DEVASTATED. YOU ATTENDED A MEMORIAL SERVICE 14:52:35 FOR THOSE MEN. IT WAS A SHATTERING MOMENT. 14:52:37 I WANT TO OFFER MY SINCERE CONDOLENCES TO THEIR FRIENDS AND 14:52:42 FAMILIES. I CAN ONLY IMAGINE THEIR SORROW. 14:52:44 PROBABLY NOT AS DEVASTATED AS THE WIDOWS THAT TESTIFIED BEFORE 14:52:48 OUR COMMITTEE, AND I ASKED THEM WHAT ABOUT BP. 14:52:55 WHAT KIND OF CONTACT HAVE YOU HAD WITH BP SINCE THE INCIDENT, 14:53:01 LETTERS, PHONE CALLS, VISITS. AND NATALIE ROSCHTOW SAID TWO BP 14:53:08 ATTENDED SHANE'S SERVICES AND THEY NEVER EXTENDED A HAPPENED, 14:53:11 A HUG IT, NEVER EXTENDSED A WE'RE SORRY. 14:53:14 THEIR CONDOLENCES. THE ONLY WORDS THAT CAME OUT OF 14:53:18 THEIR MOUTH WAS WHERE THEY WERE TO BE SEATED AND I NEVER SAW 14:53:20 THEM AFTER THAT. I ASKED, WHAT ABOUT YOU, 14:53:23 MRS. KEMP? TWO BP CAME TO WYATT'S SERVICES 14:53:27 AND ONE EXTENDED HIS HAND. I SHOOK. 14:53:31 HE TOLD ME HE WAS VERY SORRY FOR MY LOSS. 14:53:34 HE ASKED IF HE HUG ME. HE DID. 14:53:36 THE OTHER GENTLEMAN EXTENDED HIS HAND, TOLD ME WHO HE WAS AND 14:53:40 THEY SENT TWO PLANTS TO THE SERVICE. 14:53:41 AND THAT IS THE EXTENT OF MY CONVERSATION OR ANY DEALINGS 14:53:45 WITH BP. THAT'S IT. 14:53:47 DO YOU FEEL THAT YOU OWE SOMETHING MORE TO THOSE WOMEN 14:53:52 AND TO -- JUST IN TERMS OF EXPRESSING SOMETHING AND SOME 14:53:58 AND MORE? AS I SAID, I'M DEB STATED BY 14:54:01 THE ACCIDENT. ABSOLUTELY DEVASTATED. 14:54:05 AND I FEEL GREAT SORROW FOR THE PEOPLE WHO HAVE BEEN IMPACTED BY 14:54:09 IT. WELL, THEY HAVEN'T HEARD 14:54:10 ANYTHING -- THE PEOPLE WHO WERE KILLED IN 14:54:15 THE ACCIDENT WERE NOT BP EMPLOYEES. 14:54:17 THEY'RE EMPLOYEES OF TRANSOCEAN, ANOTHER CONTRACTOR. 14:54:20 AND BOTH OF THEM MADE IT VERY CLEAR THAT THEY WANTED TO DEAL 14:54:25 WITH THE FAMILIES. WE HAVE PROVIDE SUPPORT TO BOTH 14:54:29 TRANSOCEAN AND -- I GUESS I WAS TALKING TO YOU 14:54:31 AS A HUMAN BEING. WE HAVE MADE IT CLEAR THAT WE 14:54:34 WILL PROVIDE ALL AND EVERY NEED FOR THE FAMILIES, BUT -- 14:54:39 LET ME ASK ANOTHER QUESTION. THERE WERE BP PERSONNEL ON THE 14:54:44 RIG, AND WE READ THAT OIL WORKERS FROM THE RIG WERE HELD 14:54:48 IN ZOOE SEE COLLUSION ON THE OPEN WATER FOR UP TO TWO DAYS 14:54:51 AFTER THE APRIL 20 EXPLOSION WHILE ATTORNEYS ATTEMPTED TO 14:54:54 CONVINCE THEM TO SIGN LEGAL DOCUMENTS STATING THAT THEY WERE 14:54:58 UNHARMED BY THE INCIDENT. THE MEN CLAIMED AN THAT THEY 14:55:02 WERE FORBIDDEN FROM HAVING ANY CONTACT WITH CONCERNED LOVED 14:55:05 ONES DURING THAT TIME AND WERE TOLD THAT THEY WOULD NOT BE ABLE 14:55:07 TO GO HOME UNTIL THEY SIGNED THE DOCUMENTS THEY WERE PRESENTED 14:55:09 WITH. AFTER BEING AWAKE FOR 50 14:55:14 HARROWING HOURS, STEPHEN DAVIS CAVED IN AND SIGNED THE PAPERS. 14:55:17 HE SAID MOST OF THE OTHERS DID, AS WELL. 14:55:21 DO YOU THINK THIS IS AN APPROPRIATE WAY TO TREAT PEOPLE 14:55:26 THAT EXPERIENCE THAT, AND SINCE YOUR EXECUTIVES, YOU HAD PEOPLE 14:55:31 ON THE RIG, WHAT WAS THEIR FEELING ABOUT THAT? 14:55:33 WHAT IS YOUR FEELING ABOUT THAT? I THINK IT'S INAPPROPRIATE 14:55:36 AND IT WAS NOTHING TO DO WITH BP. 14:55:39 IF. I SEE. 14:55:40 AND BP HAD NO COMMENT ON IT AND HAD NO OPPORTUNITY? 14:55:45 I MEAN, DID THE COMPANY KNOW ABOUT IT? 14:55:47 WAS THERE ANY -- I DON'T BELIEVE WE WERE AWARE 14:55:51 IT WAS TAKING PLACE, BUT IT WAS CERTAINLY NOTHING TO DO WITH BP. 14:55:54 WELL, I DID MENTION DURING MY OPENING STATEMENT THIS DOCUMENT 14:55:59 THAT BASICALLY SAYS SUCH VOLUNTARY EFFORT SHALL BE AT MY 14:56:02 OWN RISK THAT PEOPLE WERE MADE TO SIGN. 14:56:07 AND THERE WERE TWO COURT APPEARANCES THAT WERE NEEDED TO 14:56:12 FINALLY GET BP TO TAKE RESPONSIBILITY, BUT WHAT I 14:56:16 UNDERSTAND IS THAT BP CONTINUED TO FAIL TO PROVIDE ADEQUATE 14:56:20 PROTECTIVE GEAR TO THE FISHERMEN AND ON MAY 16th, OSHA ISSUED A 14:56:27 DETAILED DIRECTIVE ON THE TRAINING REQUIREMENT FOR 14:56:29 SPECIFIC TASKS TO RESPONDERS AND STATE THAT HAD OWED SHAH HAD 14:56:33 OFFICIALS MONITORING THE TRAINING AND OBSERVING THE 14:56:36 CLEAN-UP BUT ACCORDING TO TESTIMONY WE HEARD NUR 14:56:41 LOUISIANA, STILL BP FAILED TO PROVIDE RESPIRATORS TO THE 14:56:44 WORKERS EXPOSED TO THE CRUDE OIL AND THE WORKERS EXPERIENCED 14:56:47 HEALTH IMPACTS. THE WORKERS WERE AFRAID TO SPEAK 14:56:51 UP DUE TO POTENTIAL TO LOSE THEIR JOBS. 14:56:53 THOSE FISHERMEN HON ATTEMPTED TO WEAR RIS PIR RATE FORCES WHILE 14:56:58 WORK WERE THREATENED TO BE FIRED BY BP DUE TO THE WORKERS USING 14:57:04 THE RIS PER RATE TORS. ARE YOU AWARE OF THAT. 14:57:06 I'M NOT AWARE THAT. WE'RE WORKING TO ENSURE THAT 14:57:10 ANYONE WORKING ON THE RESPONSE IS APPROPRIATELY PROVIDE WITH 14:57:13 WHATEVER SAFETY EQUIPMENT IS REQUIRED. 14:57:15 ENDEAVORING TO PROVIDE? ARE THE WORKERS CURRENTLY 14:57:19 PROVIDED WITH WHAT THEY NEED? ABSOLUTELY. 14:57:26 IN EVERY CASE, WE'RE TRYING TO MAKE CERTAIN -- 14:57:28 AGAIN, YOU'RE TRYING TO MAKE CERTAIN BUT IS ALL THE EQUIPMENT 14:57:31 THERE, AND ARE ALL THESE WORKERS PROTECTED? 14:57:34 TO MY KNOWLEDGE, YES. THANK YOU. 14:57:36 I YIELD BACK. THANK YOU, NEXT TURN TO 14:57:40 MR. ROSS FOR QUESTIONS, PLEASE. THANK YOU, MR. CHAIRMAN, AND 14:57:47 MR. HAYWARD, SINCE MY OPENING STATEMENT, UP TO 416,666 GALLONS 14:57:55 OF OIL HAVE LEAKED INTO THE GULF. 14:57:58 THAT WAS ABOUT FOUR HOURS AGO. IN MY OPENING STATEMENT FOUR 14:58:04 HOURS AGO I ASKED YOU TO PROVIDE US TO BE OPEN WITH US, AND 14:58:08 HONEST WITH US IN YOUR RESPONSES AND INSTEAD, IT SEEMS AS THOUGH 14:58:13 WE'RE GETTING STATEMENTS, MEMORIZED BY YOU AND PROVIDED BY 14:58:16 YOUR LEGAL COUNSEL. I DON'T KNOW IF BP QUITE 14:58:22 UNDERSTANDS HOW ANGRY THE AMERICAN PEOPLE AND THE WORLD IS 14:58:26 AT THEM. I CAN TELL YOU IT'S RARE THAT 14:58:31 YOU SEE DEMOCRATS AND REPUBLICANS ON THIS PANEL 14:58:33 AGREEING WITH ONE ANOTHER. AND YET, IT'S BEEN PRETTY 14:58:37 CONSISTENT TODAY WITH A FEW MAJOR EXCEPTIONS THE LEVEL OF 14:58:45 DISCONTENT AND ANGER AND FRUSTRATION AT BP.
House Energy Hearing with Tony Hayward / Switched / 1400- 1500
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 14:11:39 BART STUPAK: THE COMMITTEE WILL RECONVENE. MR. HAYWARD, I WAS APPROACHED 14:12:03 BY MEMBERS OF THE COMMITTEE WHO ARE NOT HAPPY WITH YOUR LACK OF 14:12:08 CANDOR. WE INITIALLY WANTED TO HAVE THIS 14:12:10 HEARING LAST WEEK. HOWEVER, YOUR STAFF PLEADED WITH 14:12:15 THE COMMITTEE SO YOU COULD BE ADEQUATELY PREPARED FOR THIS 14:12:20 HEARING AND WE AGREED. IN ADDITION TO THE EXTRA WEEK, 14:12:21 WE ALLOWED YOU TO PREPARE, WE SENT YOU A 14-PAGE LETTER 14:12:26 OUTLINING FIVE ISSUES YOU SHOULD BE PREPARED TO ADDRESS IN 14:12:30 TODAY'S HEARING. YOU DID NOT ADDRESS ANY OF THOSE 14:12:33 ISSUES IN YOUR OPENING STATEMENT AND THUS FAR YOU HAVE RESPONDED 14:12:37 TO OUR QUESTIONS WITH LITTLE SUBSTANCE AND MANY CLAIMS OF NOT 14:12:40 KNOWING OR NOT BEING PART OF THE DECISION-MAKING PROCESSES. 14:12:43 YOU'VE PREACHED ACCEPTING RESPONSIBILITY FOR ACTIONS TO 14:12:47 YOUR STAFF IN TOWN HALL MEETINGS AND YET YOU HAVE NOT YET 14:12:54 PROVIDED US WITH DIRECT ANSWERS OR TAKEN RESPONSIBILITY THUS FAR 14:12:56 TODAY. I SINCERELY HOPE THAT WILL YOU 14:12:58 RECONSIDER YOUR APPROACH TO THESE QUESTIONS. 14:13:01 I HOPE YOU WILL BE MORE FORTHCOMING AND LESS EVASIVE 14:13:06 WITH YOUR ANSWERS FOR THE REMAINDER OF YOUR HEARING. 14:13:08 WE SHOULD BE ABLE TO GET THROUGH THE REST OF YOUR HEARING BECAUSE 14:13:14 MEMBERS WANT TO PUSH YOU ON SOME OF THESE ISSUES. 14:13:17 YOU'RE THE CEO. GREAT EXPERIENCE. 14:13:19 YOU'VE GOT A PH.D. YOU'VE BEEN HEAD OF EXPLORATION. 14:13:23 YOU KNOW WHAT IS GOING ON. WE HOPED THAT WE WOULD HAVE MORE 14:13:32 CANDOR RESPONSE TO OUR QUESTIONS. 14:13:33 LET'S TURN TO MS. BLACKBURN FOR QUESTIONS. 14:13:34 FIVE MINUTES, PLEASE. THANK YOU, MR. CHAIRMAN. 14:13:36 INDEED, MR. HAYWARD, WE ARE A LITTLE BIT FRUSTRATED WITH 14:13:40 HEARING YOU SAYING THAT YOU WERE NOT A PARTY TO CERTAIN DECISIONS 14:13:42 OR WERE NOT IN THAT CHAIN OF COMMAND OR THAT YOU CAN'T 14:13:46 COMMENT BECAUSE OF THE ONGOING INVESTIGATIONS. 14:13:49 SO I'M GOING TO TRY A LITTLE BIT DIFFERENT TACT BECAUSE I DO WANT 14:13:52 TO GET SOME ANSWERS AND GET SOME ITEMS ON THE. 14:14:00 I WANT TO GO BACK TO THE SAFETY ISSUES. 14:14:02 I MENTIONED THAT IN MY OPENING STATEMENTS TO YOU. 14:14:06 I GREW UP DOWN ON THE GULF COAST AND THEN MOVED AWAY. 14:14:10 I'M FAMILIAR WITH PEOPLE WORKING OFFSHORE, IF YOU WILL. 14:14:15 AND WHAT I WOULD LIKE TO KNOW FROM YOU, HAVE YOU BEEN BRIEFED 14:14:18 ON THE SAFETY ISSUES AND THE SAFETY CONCERNS AND THEN IF YOU 14:14:24 WERE A PART OF THE DECISION-MAKING PROCESS ON WHAT 14:14:28 WOULD BE CONSIDERED THE BEST OPERATING PRACTICES? 14:14:32 WERE YOU A PART OF THE CHAIN OF WHAND AND WHAT IS THE CHAIN OF 14:14:36 COMMAND FOR DISPUTE RESOLUTION WHEN THERE'S A DIFFERENCE ABOUT 14:14:39 HOW TO APPROACH SAFETY? GO AHEAD. 14:14:46 I'D LOVE YOUR RESPONSE. WELL, I CLEARLY AM THE 14:14:49 ULTIMATE IN THE CHAIN OF COMMAND BUT I WAS NOT INVOLVED IN THE -- 14:14:53 LET'S DO THIS, THEN. IF YOU WERE NOT INVOLVED IN THE 14:14:57 DECISION-MAKING OF HOW SAFETY IS APPROACHED ON THESE RIGS AND 14:15:01 PLATFORMS, WOULD YOU SUBMIT TO US IN WRITING FOR THE RECORD A 14:15:05 DESCRIPTION OF WHAT THAT CHAIN OF COMMAND IS AND WHAT THE 14:15:08 PROCESS IS WHEN THERE'S A DIFFERENCE OF OPINION ON HOW YOU 14:15:12 APPROACH RIG SAFETY? WOULD YOU BE WILLING TO SUBMIT 14:15:16 THAT? AND I WILL ASK YOU AND YOUR TEAM 14:15:17 TO SUBMIT THAT TO US FOR THE RECORD. 14:15:21 IN ADDITION, SINCE BECOMING CEO, HAVE YOU BEEN BRIEFED ON THE 14:15:26 SIGNIFICANT SAFETY INCIDENTS THAT HAVE BEEN INVOLVED IN 14:15:32 ALASKAN PRODUCTION FACILITIES IN THE LAST YEAR? 14:15:33 HAVE YOU BEEN BRIEFED? I HAVE DISCUSSED THOSE 14:15:37 ISSUES. AS A RESULT OF THESE 14:15:40 BRIEFINGS, DID YOU AUTHORIZE ANY CHANGES TO BP POLICIES AND 14:15:45 PRACTICES FOR DEALING WITH THE SAFETY? 14:15:46 INCIDENTS? WE TOOK ACTIONS IN ALASKA TO 14:15:50 CHANGE THOSE ORGANIZATION AND SOME OF THE PROCESSES. 14:15:53 SINCE THE DEEP WATER HORIZON INCIDENT, HAVE YOU MADE CHANGES 14:16:00 AND WHAT ARE THOSE? WILL YOU SUBMIT THOSE TO US FOR 14:16:01 THE RECORD? WE HAVE MADE CHANGES TO OUR 14:16:04 TESTING PROCEDURES AND TO THE INTENSITY WITH WHICH WELL SITES 14:16:16 LEADERS ARE AWARE OF CONTROL PROCEDURES AND A VARIETY OF 14:16:20 OTHER INTERVENTIONS. THAT IS PREDICATED ON WHAT WE 14:16:23 HAVE LEARNED FROM THE INCIDENT SO FAR AND AS WE LEARN MORE, WE 14:16:28 WILL MAKE MORE CHANGES AS WE DEEM APROEP PREE ATE AND I WOULD 14:16:37 BE VERY HAPPY TO SUBMIT TO YOU THE CHANGES THAT WE MADE. 14:16:39 THANK YOU. HAVE YOU -- DID YOU ASK OTHER 14:16:42 COMPANIES FOR HELP IN CLEANING UP THE OIL SPILL? 14:16:46 LAST WEEK WITH THE HEARING WE HAD SEVERAL DIFFERENT HEARINGS. 14:16:50 DID YOU APPROACH EITHER COMPANIES OR COUNTRIES AND ASK 14:16:53 FOR THEIR HELP AND EXPERTISE IN PLUGGING THAT LEAK AND IN 14:16:57 PARTICIPATION IN THE CLEANSNUP. WE SOUGHT HELP FROM BOTH THE 14:17:05 IMMEDIATE IN THE GUL FIREFIGHTER MEXICO AND GLOBALLY FROM AROUND 14:17:09 THE WORLD AND ACROSS AMERICA. THERE ARE 700 ENTITIES INVOLVED 14:17:16 IN THE EFFORT. ALL OF THEM MAJOR OPERATORS IN 14:17:19 THIS COUNTRY, MAJOR OPERATORS FROM ELSEWHERE IN THE WORLD. 14:17:23 MANY OF THE MAJOR ACADEMIC INSTITUTIONS IN THIS COUNTRY, 14:17:27 SOME OF THE GREATEST MINDS IN THE COUNTRY ARE INVOLVED IN 14:17:32 TRYING TO DEAL WITH THIS PROBLEM. 14:17:33 DID THEY PARTICIPATE AT YOUR INVITATION OR THE GOVERNMENT'S 14:17:38 INVITATION? THEY PARTED IN THE FIRST 14:17:43 INSTANCE AND SUBSEQUENTLY THE FEDERAL AUTHORITIES BROUGHT SOME 14:17:49 OF THE GREAT ACADEMIC INSTITUTIONS IN THIS COUNTRY TO 14:17:54 BEAR. OKAY. 14:17:56 REALLY YOU CURRENTLY -- IS BP CURRENTLY WORKING ON 14:18:01 INDUSTRY-WIDE EFFORTS TO LOOK AT SAFETY? 14:18:07 WE HAVE LOOKED AT MMS WITH REGARD TO THE THINGS THAT WE 14:18:10 HAVE LEARNED SO FAR, PARTICULARLY WITH REGARD TO 14:18:18 BLOWOUT PREVENTERS AND AS WE LEARN WHAT THE REALITIES ARE AND 14:18:25 I BELIEVE IN THE COURSE OF THE COMING MONTHS THE INDUSTRY WILL 14:18:28 WORK TOGETHER TO DETERMINE WHAT IS THE BEST WAY FORWARD. 14:18:31 WE HOPE THAT YOU ARE WORKING TOGETHER BECAUSE I HOPE YOU 14:18:37 UNDERSTAND OUR FRUSTRATION WHEN YOU HAVE STATED BEFORE SAFETY 14:18:40 WOULD BE A PRIORITY FOR BP AND WE EXPECT YOU ALL TO TAKE ACTION 14:18:50 ON LESSONS LEARNED. AND WHEN YOU TELL US THAT YOU 14:18:51 ARE TAKING THAT ACTION AND THEN YOU RETURN BECAUSE OF WHAT HAS 14:18:57 OCCURRED, MR. HAYWARD, I CANNOT EVEN BEGIN TO TELL YOU HOW 14:18:59 DISAPPOINTING IT IS TO US THAT YOU ARE SAYING -- AND YOU 14:19:04 MENTIONED ACTIONS AND WORDS IN YOUR TESTIMONY -- BUT, SIR, YOU 14:19:10 ARE GIVING THE RHETORIC. WHAT WE WANT TO SEE GOING 14:19:13 FORWARD IS THE ACTION THAT INDEED YOU HAVE LEARNED THESE 14:19:16 LESSONS. THAT BP HAS LEARNED THESE 14:19:20 LESSONS. AND THAT YOU ARE GOING TO SHARE 14:19:21 THESE BEST PRACTICES WITH THE INDUSTRY. 14:19:23 THAT WOULD BE VERY HELPFUL. THANK YOU FOR BEING BEFORE US 14:19:27 TODAY. I YIELD BACK. 14:19:29 THANK YOU, GENERAL LADY. MR. HAYWARD, YOU INDICATED THAT 14:19:32 YOU MADE RECOMMENDATIONS ON THE BLOWOUT PREVENTER. 14:19:35 YOUR COMPANY HAS. WOULD YOU PROVIDE THAT TO THIS 14:19:39 COMMITTEE? WE CERTAINLY CAN. 14:19:42 NEXT, LET'S TURN TO MR. MARKEY. 14:19:46 THE EXISTENCE OF LARGE CLOUDS OF -- PLUMES OF OIL SUSPENDED 14:19:52 BENEATH THE OCEAN SURFACE IS OF CONCERN BECAUSE THE TOXIC OIL 14:19:56 CAN POISON THE AQUATIC PLANTS AND ANIMALS AND CONSUME OXYGEN, 14:20:03 POTENTIALLY AFFIXED ATING MARINE LIFE. 14:20:07 ON MAY 30th YOU INDICATED THAT YOUR SAMPLES SHOWED NO PLUMES OF 14:20:13 OIL. AGAIN, DENYING THAT THE PLUMES 14:20:18 EXISTED CITING A BP DOCUMENT SAYING THAT THERE ARE NO 14:20:22 HYDROCARBONS BELOW THE SURFACE. EVEN AFTER THE NOAA 14:20:26 ADMINISTRATOR CONFIRMED THE PLUME EXISTENCE, YOUR CEO WENT 14:20:30 ON NATIONAL TELEVISION AND CONTINUED TO DENY THEIR 14:20:35 EXISTENCE. THESE ARE PHOTOGRAPHS PRESENTED 14:20:38 TO US BY THE UNIVERSITY OF GEORGIA WHO HAS SAMPLED THE DEEP 14:20:41 WATER OF THE GULF AND FOUND SUCH PLUMES. 14:20:43 ON THE RIGHT THERE IS A FILTER WITH OIL CLEARLY PRESENT FROM 14:20:48 WATER WITHIN A PLUME AS IT PASSED BY. 14:20:52 NOW, IT ISN'T JUST UNIVERSITY SCIENTISTS DATA. 14:20:56 I HAVE UP HERE ON THE SCREEN AS WELL FROM THE E.P.A. WEBSITE, IT 14:21:05 WAS PREPARED USING THE DATA. THERE ARE 17 RED DOTS INDICATING 14:21:15 THAT YOUR OWN DATA SHOWS EVIDENCE OF SUBSURFACE PLUMES. 14:21:16 THIS IS YOUR DATA, MR. HAYWARD. ARE YOU NOW, ONCE AND FOR ALL, 14:21:19 PREPARED TO CONCEDE THAT THERE ARE PLUMES OR CLOUDS OF OIL 14:21:23 SUSPENDED DEEP BENEATH THE SURFACE OF THE OCEAN? 14:21:27 YES OR NO? AS I UNDERSTAND THE DATA, 14:21:31 CHAIRMAN, IT INDICATES THAT THERE ARE -- THERE IS OIL IN 14:21:35 VERY LOW CONCENTRATIONS, 0.5 PARTS PER MILLION, DISTRIBUTED 14:21:40 THROUGH THE COLUMN. THE DETAILED ANALYSIS THAT NOAA 14:21:46 CONDUCTED IN THREE LOCATIONS AROUND THE SPILL SHOW THAT IN 14:21:50 ONE LOCATION 0.5 PARTS PER MILLION, CLEARLY ATTRIBUTED TO 14:21:54 THIS SPILL. ARE THERE PLUMES OF OIL 14:21:57 BENEATH THE OCEAN SURFACE? THERE ARE CON STRAGSS OF OIL 14:22:01 OF ABOUT 0.5 PARTS PER MILLION IN THE WATER COLUMN. 14:22:05 SOME OF IT IS RELATED TO THIS SPILL. 14:22:08 OTHER SAMPLES HAVE BEEN TYPED TO OTHER OIL. 14:22:15 SO YOU DO NOT DEFINE THAT AS A PLUME? 14:22:19 I'M NOT AN OCEANOGRAPHIC SCIENTIST. 14:22:23 I'M GOING TO TAKE IT AS A CONTINUING NO FROM YOU, IN YOUR 14:22:26 TESTIMONY CONTINUES TO BE AT ODDS AT ALL AGAINST ALL 14:22:30 INDEPENDENT SCIENTISTS. YESTERDAY AT THE ENERGY COMMERCE 14:22:36 ON HEALTH HEARING THE DIRECTOR OF THE NATIONAL INSTITUTE OF 14:22:40 OCCUPATIONAL HEALTH AND SAFETY TOLD ME IN ANSWER TO MY QUESTION 14:22:43 THAT HE HAS ASKED BP FOR A ROSTER OF ALL WORKERS, MULTIPLE 14:22:49 TIMES, AND BP HAS FAILED TO GIVE HIM THAT INFORMATION 14:22:52 THAT IS CRITICAL TO TRACKING CHEMICAL EXPLOSION. 14:22:58 REPRESENTATIVE SUI WAS TO PROTECT THE HEALTH OF THEIR 14:23:02 WORKERS. MR. HAYWARD, WILL YOU COMMIT TO 14:23:04 A IMMEDIATELY PROVIDE THE NATIONAL INSTITUTE OF 14:23:07 OCCUPATIONAL HEALTH AND SAFETY AND THE CENTERS FOR DISEASE 14:23:10 CONTROL WITH ALL OF THE INFORMATION THAT THEY NEED TO 14:23:13 EVALUATE HEALTH IMPACTS AND TO PROTECT THESE WORKERS? 14:23:18 WE'VE PROVIDED ALL INFORMATION REQUESTS ENDEAVOR AS 14:23:23 POSSIBLE AND WE'LL ENDEAVOR TO THAT AS WELL. 14:23:34 WILL YOU PROVIDE ALL INFORMATION THAT THEY ARE 14:23:37 REQUESTING OF YOU. WE WILL CERTAINLY DO IT WITH 14:23:43 THAT ONE. IT'S NOT REASSURING TO THOSE 14:23:53 WORKERS WHO THAT HAVE IMPACT ON THEIR HEALTH. 14:23:58 BP HAS DUMPED 30,000 GALLONS OF DRILLING MUD IN THE OCEAN. 14:24:00 DRILLING MUD IS OFTEN MADE AND MAY HAVE USED SIGNIFICANT 14:24:08 QUANTITIES OF ANTIFREEZE, WHICH IS TOXIC. 14:24:10 MR. HAYWARD, WILL YOU COMMIT TO DISCLOSING THE INGREDIENTS OF 14:24:17 THE DRILLING MUD? YES, WE WILL. 14:24:22 IT'S ALL WATER-BASED MUD WITH NO TOXICITY WHAT SOLVE. 14:24:27 WILL YOU ALSO COMMIT TO DISCLOSING ALL OTHER 14:24:30 MEASUREMENTS YOU HAVE MADE RELATED TO CHEMICAL, OIL, AND 14:24:34 MET AN CONCENTRATIONS IN THE WATER IMMEDIATELY? 14:24:52 AE YOU WILL GIVE US ALL OF THE MEASUREMENTS? 14:24:54 THEY HAVE BEEN MADE AVAILABLE AND WE WILL TON DO THAT. 14:24:58 THANK YOU, MR. CHAIRMAN. THANK YOU. 14:25:14 ANGER AT BP AND ANGER OF OUR ATD ADMINISTRATION IS PAL PAT TABLE. 14:25:19 LOOK AT THE POLLS. AND WE HAVE AN OBLIGATION TO 14:25:25 ADDRESS THE FRUSTRATIONS OF THE AMERICAN PEOPLE. 14:25:29 THE CHIEF EXECUTIVE OF EXXONMOBIL TESTIFIED JUST 14:25:33 YESTERDAY AT THE ENERGY AND ENVIRONMENT SUBCOMMITTEE OF THIS 14:25:41 COMMITTEE THAT WE WOULD NOT HAVE DRILLED THE WELL THE WAY THAT 14:25:46 THEY DID. IN ADDITION, THE PRESIDENT OF 14:25:50 SHELL STATED IT'S NOT A WELL THAT WE WOULD HAVE DRILLED IN 14:25:53 THAT MECHANICAL SETUP AND THERE ARE OPERATIONAL CONCERNS. 14:25:59 MR. HAYWARD, MY PROFESSION, BEFORE CONGRESS, WAS THE 14:26:06 PRACTICE OF MEDICINE OBSTETRICS AND GYNECOLOGY. 14:26:09 IF I HAD DELIVERED A BABY THAT RESULTED IN A BAD OUTCOME, A 14:26:16 SERIOUSLY BAD OUTCOME, AND TWO OF MY FRIENDLY COMPETITORS WELL 14:26:22 RESPECTED PEERS SAID, DOCTOR, IN THIS INSTANCE, PRACTICE BELOW 14:26:27 THE STANDARD OF CARE, I WOULD BE IN SERIOUS WORLD OF HURT. 14:26:38 REFLECTING ON THE FACT THAT A DRILL WAS DRILLED IN A 14:26:46 NONRETROSPECT, WHAT IS YOUR DESIGN FOR THE WELL? 14:26:58 THERE ARE CLEARLY ISSUES IDENTIFIED AND WHEN THE 14:27:01 INVESTIGATION IS COMPLETE WE WILL DRAW THE RIGHT CONCLUSIONS. 14:27:10 YOU'VE HAD 59 DAYS AND YOU'R NOT EXACTLY MOVING WITH FEVER 14:27:13 PITCH HERE. DO YOU BELIEVE BP WAS DRILLING 14:27:17 THE WELL WITH FOLLOWING THE BEST PRACTICES THAT YOU FOLLOWED WHEN 14:27:21 YOU WERE PROMOTED TO CEO A COUPLE OF YEARSING. 14:27:24 I HAVE NO REASON TO CONCLUDE THAT THAT WASN'T THE 14:27:28 CASE. IF I HAD ANY REASON TO BELIEVE 14:27:30 THAT ANYONE WITHIN BP I WOULD TAKE ACTION. 14:27:38 DO YOU BELIEVE THAT THE DECISIONS LEADING ON AND UP TO 14:27:44 APRIL 20th, SUCH AS A DECISION TO USE ONLY SIX CENTRALIZERS, 14:27:50 INSTEAD OF ONE, THE DECISION NOT TO RUN A CEMENT BOND LOG, DO YOU 14:27:53 BELIEVE THAT THOSE DECISIONS REFLECT THE NORMAL DECISION 14:27:56 PROCESS AT BP OR WOULD YOU CHARACTERIZE THAT AS AN 14:28:00 EXCEPTION TO NORMAL OPERATING PROCEDURES? 14:28:06 . THERE'S NOTHING I'VE SEEN IN 14:28:10 THE EVIDENCE SO FAR THAT SUGGESTS ANYONE CAUSED THE HEAD 14:28:12 OF SAFETY. IF THERE ARE, THEN WE'LL TAKE 14:28:19 ACTION. IF YOU HAD BEEN PHYSICALLY 14:28:25 PRESENT ON THAT RIG ALONG WITH THE 11 MEN THAT WERE KILLED, 14:28:33 WOULD YOU HAVE APPROVED TO ONLY USE SIX CENTIMETERS DESPITE THE 14:28:41 RECOMMENDATION TO USE 21? WOULD YOU HAVE MADE THAT 14:28:44 DECISION IF YOU WERE STANDING ON THE DEEP WATER HORIZON RIG? 14:28:48 I'M NOT THE DRILLING ENGINEER SO I'M NOT QUALIFIED TO MAKE 14:28:51 THOSE JUDGMENTS. BETTER PEOPLE THAN I WERE 14:28:54 INVOLVED IN THOSE JUDGMENTS. AND IF OUR INVESTIGATION 14:28:59 DETERMINES THAT AT ANY TIME PEOPLE PUT COSTS AHEAD OF 14:29:04 SAFETY, THEN WE WILL TAKE ACTION. 14:29:06 WELL, WITH ALL DUE RESPECT, MR. HAYWARD, I THINK YOU'RE 14:29:11 COPPING OUT. YOU ARE THE CAPTAIN OF THE SHIP 14:29:13 AND IT'S BEEN SAID BY MEMBERS ON BOTH SIDES OF THE AISLE OF THIS 14:29:18 COMMITTEE, WE HAD A PRESIDENT ONCE THAT SAID, YOU KNOW, THE 14:29:23 BUCK STOPS ON MY DESK. AND I THINK THE BUCK STOPS ON 14:29:32 YOUR DESK. AND I DON'T THINK WE'RE GETTING 14:29:34 THE ANSWERS FROM YOU THAT NEED TO BE PRESENTED TO THIS 14:29:38 COMMITTEE IN A FORTHRIGHT MANNER. 14:29:40 IT'S A LITTLE FRUSTRATING FOR ALL OF US AND IT SEEMS LIKE YOUR 14:29:48 TESTIMONY HAS BEEN WAY TOO EE VASE TIF. 14:29:49 MR. CHAIRMAN, I'LL YIELD BACK. THANK YOU. 14:29:53 I WANT TO FOLLOW UP FROM MY FRIEND FROM OKLAHOMA'S QUESTIONS 14:30:00 ABOUT THE SAFETY AT BP. BECAUSE YOU HAVE STATED 14:30:04 REPEATEDLY SINCE YOU HAVE TAKEN OVER AS CEO THAT SAFE RELIABLE 14:30:08 OPERATIONS ARE NUMBER ONE PRIORITY. 14:30:09 CORRECT? THAT'S CORRECT. 14:30:10 AND YOU'VE BEEN CEO FOR THE PAST THREE YEARS, CORRECT? 14:30:14 CORRECT. THEN, EXPLAIN TO US WHY, 14:30:17 BETWEEN JUNE 2007 AND FEBRUARY 2010, THE OCCUPATIONAL HEALTH 14:30:24 AND SAFETY ADMINISTRATION CHECKED 55 OIL REFINERIES 14:30:29 OPERATING IN THE U.S., TWO OF THOSE 55 ARE OWNED BY BP, AND 14:30:33 BP'S REFINERIES RACKED UP 760 CITATIONS FOR EGREGIOUSLY SAFETY 14:30:42 VIOLATIONS, ACCOUNTING FOR 95% OF THE WORST SAFETY VIOLATIONS 14:30:48 THAT OSHA MONITORS IN THE WORKPLACE. 14:30:54 THAT DOESN'T SOUND LIKE A CULTURE OF SAFETY. 14:30:55 WE ACKNOWLEDGE THAT WE HAD SERIOUS ISSUES IN 2005 AND 2006. 14:30:59 I'M NOT TALKING ABOUT 2005 AND 2006. 14:31:04 I'M CITING AN OSHA REPORT THAT THERE IS A SYSTEMIC SAFETY 14:31:16 PROBLEM AND OF THOSE 760 CLASSIFIED AS WILLFUL AND EEG 14:31:21 GREEJ JOUS, THAT'S IMPORTANT TO NOTE THAT IS THE WORST VIOLATION 14:31:25 THAT OSHA CAN IDENTIFY. AND IT'S A VIOLATION COMMITTED 14:31:30 WITH PLAIN INDIFFERENCE TO OR INTENTIONAL DISREGARD FOR 14:31:36 EMPLOYEE SAFETY AND HEALTH. 97% OF ALL OF THOSE VIOLATIONS 14:31:39 AT U.S. REFINERIES ON YOUR WATCH WERE AGAINST YOUR COMPANY. 14:31:43 THAT DOESN'T SOUND LIKE A COMPANY THAT, TO USE YOUR WORDS 14:31:48 S. COMMITTED TO SAFE, RELIABLE OPERATIONS AS YOUR NUMBER ONE 14:31:52 PRIORITY. THERE'S A COMPLETE DISCONNECT 14:31:55 BETWEEN YOUR TESTIMONY AND THE REALITY OF THESE OSHA FINDINGS. 14:31:58 DO YOU UNDERSTAND THAT? I UNDERSTAND WHAT YOU'RE 14:32:05 SAYING. SO WE ALSO HAD MR. BARTON 14:32:12 MAKE THE COMMENT ABOUT WHAT HAPPENED AT THE WHITE HOUSE. 14:32:14 WERE YOU THERE AT THE WHITE HOUSE? 14:32:20 I WAS. DO YOU THINK THAT BP WAS 14:32:21 SHAKEN DOWN BY THE OBAMA ADMINISTRATION TO COME UP WITH 14:32:27 THIS $20 BILLION COMPENSATION SNUND. 14:32:28 FUND? WE FORMED A WAY FORWARD AND 14:32:31 TRIED TO WORK TOGETHER TO DEAL WITH THE LEAK, THE RESPONSE TO 14:32:39 THE LEAK, AND TO MAKE A RETURN IN THE GULF COAST TO IT IS PAST 14:32:46 AND THAT'S WHAT WE ARE GOING TO DO. 14:32:48 AND I REALIZE THAT WE SPEAK THE SAME LANGUAGE BUT IT'S NOT 14:32:53 ALWAYS THE SAME LANGUAGE. WHEN WE SPEAK ENGLISH IN THE 14:32:57 UNITED STATES AND ENGLISH IN GREAT BRITAIN. 14:32:59 HERE IN THIS COUNTRY, THE WORD SHAKEN DOWN MEANS SOMEBODY IN A 14:33:04 POSITION OF DISADVANTAGE IS FORCED TO DO SOMETHING AGAINST 14:33:06 THEIR WILL. IS THAT HOW YOU VIEWED THESE 14:33:10 NEGOTIATIONS AT THE WHITE HOUSE YESTERDAY? 14:33:11 AS I SAID, WE CAME TOGETHER TO FIGURE OUT A WAY OF WORKING 14:33:16 TOGETHER TO RESOLVE WHAT IS CLEARLY A VERY, VERY SERIOUS 14:33:21 SITUATION. AND THE REASON YOU CAME 14:33:22 TOGETHER, SIR, IS BECAUSE IT WAS NOT ONLY IN THE BEST INTEREST OF 14:33:26 THE UNITED STATES TAXPAYERS AND THE CITIZENS OF THIS COUNTRY, 14:33:30 IT'S ALSO IN THE BEST INTEREST OF BP TO TRY TO GET THIS PROBLEM 14:33:34 SOLVED SO THAT IT CAN MOVE FORWARD. 14:33:36 ISN'T THAT TRUE? THAT'S UNDOUBTABLY TRUE. 14:33:45 AND WHEN THE RANKING MEMBER REFERRED TO THIS COMPENSATION 14:33:48 FUND, WHICH I APPLAUD AS A POSITIVE STEP FORWARD AS A SLUSH 14:33:55 FUND, I WANT YOU TO KNOW THAT IN THIS COUNTRY THAT IMPLIES A VERY 14:33:59 NEGATIVE CONNOTATION AS SOMETHING ILLEGAL, BELOW THE 14:34:02 SURFACE OF WHAT IS ACCEPTABLE. DID YOU CONSIDER THIS 14:34:05 COMPENSATION FUND FOR PEOPLE WHO HAD LOST THEIR LIVES, LOST THEIR 14:34:10 BUSINESSES, LOST THEIR ENVIRONMENT, LOST THEIR ABILITY 14:34:12 TO EARN -- DID YOU CONSIDER THAT TO BE A SLUSH FUND? 14:34:15 AS WE SAID YESTERDAY, THE FUND IS A SIGNAL OF OUR 14:34:21 COMMITMENT TO DO RIGHT TO ENSURE THAT INDIVIDUALS, FISHERMEN, 14:34:29 CAPTAINS, SMALL HOTEL OWNERS, EVERYONE WHO HAS BEEN IMPACTED 14:34:33 BY THIS IS KEPT WHOLE. THAT IS WHAT I HAVE SAID FROM 14:34:37 THE VERY BEGINNING OF THIS AND THAT IS WHAT WE INTEND TO DO. 14:34:41 AND AS I SAID IN MY TESTIMONY, I HOPE NOW PEOPLE WILL SAY THAT WE 14:34:45 ARE GOOD FOR OUR WORD. AND CAN WE TAKE THAT AS A NO 14:34:50 IN RESPONSE TO MY QUESTION YOU DID NOT TAKE THAT THIS WAS A 14:34:57 SLUSH FUND? I CERTAINLY DID NOT THINK IT 14:34:59 WAS A SLUSH FUND, CONGRESSMAN. THANK YOU. 14:35:04 I'LL YIELD BACK. FIVE MINUTES. 14:35:07 THANK YOU, MR. CHAIRMAN. THANK YOU FOR BEING WITH US, MR. 14:35:11 HAYWARD. EARLIER IN OUR CONFERENCE, 14:35:20 RESPONDED, IF I WROTE THIS DOWN CORRECTLY, EVERYTHING WE DO IS 14:35:22 SUBJECT TO REGULATORY OVERSIGHT. AND WHO IS THAT? 14:35:24 WHEN WE'RE TALKING ABOUT REGULATORY OVERSIGHT? 14:35:26 THE REGULATORY OVERSIGHT IS THE DEEP WATER DRILLING 14:35:32 OPERATIONS IS THE MINERAL MANAGEMENT SERVICES. 14:35:36 BUT HERE WITHIN THE FEDERAL GOVERNMENT, WHO WOULD BE OUT ON 14:35:40 THE RIG FOR THAT OVERSIGHT? IT IS THE INSPECTORS OF THE 14:35:45 MINERAL MANAGEMENT SERVICES, I BELIEVE. 14:35:47 AND I'M SURE THE RECORDS ARE OUT THERE, BUT WHEN WAS THE LAST 14:35:50 TIME THAT THE MMS WOULD HAVE BEEN ON THE RIG? 14:35:53 I'M AFRAID I'M NOT AWARE OF THAT DATE, BUT I'M RELATIVELY 14:35:58 SURE THAT IT WAS SHORTLY BEFORE THIS INCIDENT. 14:36:00 DO YOU KNOW OF ANY CITATIONS ISSUED DURING THAT TIME THAT 14:36:03 THEY WERE OUT THERE ON THE SFLIG. 14:36:08 I'M NOT AWARE OF ANY CITATIONS. 14:36:11 LET ME ASK THIS QUESTION. I KNOW I'VE TALKED TO QUITE A 14:36:13 FEW MEMBERS FROM THE GULF COAST AND ALSO FROM NEWS REPORTS AND 14:36:18 THERE'S BEEN MANY, MANY CASES WHERE THEY ARE TALKING ABOUT IT 14:36:22 TAKING FIVE DAYS FOR A TURN AROUND TIME AND ONCE IT 14:36:24 STARTS -- AND I CAME FROM LOCAL GOVERNMENT. 14:36:26 AND SO THERE'S A CHAIN OF COMMAND OUT THERE FOR LOCAL 14:36:30 GOVERNMENT, STATE GOVERNMENT, AND THEY ARE SAYING OVER AND 14:36:33 OVER AND OVER, IT TAKES ABOUT FIVE DAYS. 14:36:36 A LOT OF TIMES THEY SAY WE HAVE TO GO TALK TO BP. 14:36:39 I WAS JUST WONDERING, BECAUSE KNOWING THAT TIME IS OF THE 14:36:44 ESSENCE, OF ALL OF THE CRITICAL MATTERS THAT ARE HAPPENING, WHY 14:36:49 IS IT THAT THIS TURN AROUND TIME TAKES SO LONG? 14:36:52 I'M AFRAID I CAN'T ANSWER THAT QUESTION. 14:36:54 I DON'T KNOW. CAN YOU GET THAT INFORMATION 14:36:56 FOR US? WE CAN, YES, CERTAINLY. 14:37:01 THE NEXT QUESTION IS PROBABLY GOING TO HAVE THE SAME RESPONSE. 14:37:03 BUT THE QUESTION IS, THEN, WHO SET THE PROCEDURE UP THIS WAY 14:37:06 THAT WE WOULD HAVE A SITUATION WHERE WE TAKE A FIVE-DAY TURN 14:37:09 AROUND TIME? DO YOU HAVE ANY KNOWLEDGE OF 14:37:12 THAT? I'M AFRAID I DON'T KNOW. 14:37:30 PROBLEMS THAT ARISE THAT YOU CAN GET THINGS TURNED AROUND 14:37:36 PRETTY QUICKLY? MY PRIMARY COMMUNICATION HAS 14:37:43 BEEN WITH THAD ALLEN. HOW OFTEN WOULD THAT BE? 14:37:46 TYPICALLY ONCE A DAY OR OFTEN MORE THAN ONCE A DAY. 14:37:57 AND AGAIN, AS WITH THE LADY FROM TENNESSEE, WE HAVE 14:38:03 FRUSTRATION WITH GETTING RESPONSES BUT WITH THAT, WE 14:38:06 YIELD BACK. EIGHT MINUTES, PLEASE. 14:38:08 THANK YOU SO MUCH, MR. CHAIRMAN. 14:38:10 MR. HAYWARD, IN YOUR INITIAL TESTIMONY YOU TESTIFIED THAT BP 14:38:19 HAS DRILLED HUNDREDS OF WELLS AROUND THE WORLD. 14:38:21 HOW MANY ARE DEEP WATER WELLS? I DON'T KNOW THE PRECISE 14:38:26 NUMBERS BUT WE DRILL A LOT OF DEEP WATER WELLS IN VARIOUS 14:38:29 PARTS OF THE WORLD. YOU DON'T KNOW HOW MANY. 14:38:30 DO YOU THINK THAT BP'S WELLS, IRRESPECTIVE OF WHERE THEY ARE 14:38:35 DRILLED, SHOULD BE DRILLED AT THE HIGHEST INDUSTRY STANDARDS? 14:38:38 I BELIEVE THAT'S WHAT WE TRY AND DO. 14:38:41 SO YOUR ANSWER WOULD BE YES? UH-HUH. 14:38:44 OKAY. AND AS THIS WELL WAS BEING 14:38:46 DRILLED, FROM YOU INFORMED AS CEO OF THE COMPANY OF THE 14:38:53 P PROGRESS OF THE WELL? 14:38:56 I WAS NOT. YOU WERE NOT. 14:38:57 BEFORE I CONTINUE, I KNOW YOU'VE HAD DIFFICULTY ANSWERING SOME OF 14:39:00 THE TECHNICAL QUESTIONS THAT MEMBERS HAVE ASKED YOU. 14:39:02 SO I KNOW THAT YOU BROUGHT A TECHNICAL EXPERT WITH YOU. 14:39:05 WOULD YOU LIKE US TO SWEAR HIM IN SO HE CAN HELP YOU ANSWER 14:39:08 SOME OF MY TECHNICAL QUESTIONS? I THINK THAT WOULD DEPEND ON 14:39:12 THE QUESTION. ALL RIGHT. 14:39:16 LET'S SEE HOW IT GOES. NOW, MR. HAYWARD, YOU SEE THAT 14:39:17 YOU RECEIVED THE CHAIRMAN'S JUNE 14th LETTER TO YOU WHICH TALKS 14:39:26 ABOUT WELL DESIGN, CENTRALIZER, CEMENT BOND LOG, AND LOCK DOWN 14:39:34 SLEEVE. I WANT TO ASK YOU IN MY 14:39:36 QUESTIONS ABOUT ONE OF THOSE ISSUES, AND THAT'S THE CEMENT 14:39:41 BOND LOG. IF YOU CAN TAKE THAT NOTEBOOK 14:39:46 THAT IS TO YOUR LEFT, OPEN IT UP. 14:39:47 IN THE FRONT FLAP THERE'S A MEMO WHICH WAS WRITTEN FROM BRIAN 14:39:52 MORRELL TO RICHARD MILLER ON WEDNESDAY, APRIL 14th. 14:40:00 AND IT SAYS, THIS HAS BEEN A NIGHTMARE WELL WHICH HAS BEEN 14:40:04 ALL OVER THE PLACE. DID ANYONE INFORM YOU AS CEO OF 14:40:07 THE COMPANY IN APRIL OF THIS YEAR THAT THIS WAS A NIGHTMARE 14:40:10 WELL? THEY DID NOT. 14:40:11 DID YOU SUBSEQUENTLY SEE THIS MEMO? 14:40:14 HAVE YOU SEEN THIS MEMO? I SAW THIS MEMO WHEN IT WAS 14:40:19 RAISED BY YOUR COMMITTEE. AND THAT'S THE FIRST TIME 14:40:22 YOU'VE EVER HEARD OF IT? THAT'S THE FIRST TIME I'VE 14:40:26 HEARD OF IT. IS THAT THE FIRST TIME THAT 14:40:29 YOU HEARD OF IT BEING A NIGHTMARE CEO? 14:40:31 WHEN I FIRST SAW THIS MEMO. LET'S TALK ABOUT THE 14:40:35 CEMENTING JOB. BECAUSE ALL OF THE TESTIMONY 14:40:36 THAT WE'VE HAD IN THIS COMMITTEE, THROUGH OUR HEARINGS, 14:40:39 ALSO IN THE NATURAL RESOURCES COMMITTEE THROUGH THEIR HEARINGS 14:40:46 INDICATES THAT THE CHOICES THAT BP MADE AND ITS SUN CONTRACTORS 14:40:52 IN ORDER TO SAVE MONEY LED TO BLIND FAITH IN A CEMENTING JOB. 14:40:58 FIRST OF ALL, BP CHOOSE A RISKIER WELL DESIGN AND THE 14:41:04 CHAIRMAN, CHAIRMAN WAXMAN TALKED ABOUT THIS FOR A MOMENT. 14:41:06 THE BEST PRACTICE WOULD HAVE BEEN TO USE A LINER AND A TIE 14:41:12 BACK WHICH PROVIDES FOUR BARRIERS TO PREVENT THE FLOW OF 14:41:15 DANGEROUS HYDROCARBONS TO THE WELL HEAD. 14:41:18 INSTEAD, BP DESIGNED A STRONG STRING APPROACH THAT HAS ONLY 14:41:23 TWO BARRIERS. AN INTERNAL DOCUMENT INDICATED 14:41:27 THAT THIS APPROACH WAS NOT RECOMMENDED BECAUSE "CEMENTING 14:41:31 SIMULATIONS INDICATE IT'S UNLIKELY TO BE A SUCCESSFUL 14:41:35 CEMENT JOB." AND YOU CAN LOOK AT TAB SIX OF 14:41:38 THE NOTEBOOK THAT YOU HAVE IN FRONT OF YOU TO SEE THAT, MR. 14:41:43 HAYWARD. IT SAYS, CEMENT SIMULATIONS 14:41:46 INDICATE IT IS UNLIKELY TO BE A SUCCESSFUL CEMENT JOB DUE TO 14:41:51 FORMULATION BREAKDOWN. THIS IS AN INTERNAL BP 14:41:54 CONFIDENTIAL DOCUMENT FROM MID-APRIL. 14:41:56 HAVE YOU SEEN THIS DOCUMENT BEFORE? 14:41:58 I SAW IT AS A CONSEQUENCE OF THE LETTERS -- 14:42:02 BUT YOU DID NOT SEE IT AT THE TIME IN. 14:42:04 I DID NOT SEE IT AT THE TIME. BUT THERE WERE BP FOLKS THAT 14:42:07 SAW IT, TO YOUR KNOWLEDGE? THERE WERE CERTAINLY BP 14:42:10 PEOPLE WHO SAW THIS. OKAY. 14:42:14 SECONDLY, THE DOCUMENT SAYS THAT THERE WOULD BE A POTENTIAL NEED 14:42:17 TO VERIFY WITH THE BOND LOG AND REFORM A -- BUT BP CHOOSE A 14:42:25 RISKIER APPROACH. SECONDLY, THE RISKIER 14:42:30 CENTRALIZER OPTION WAS CHOSEN. EXPERTS HAVE TOLD US THAT THE 14:42:33 BEST PRACTICE WOULD HAVE BEEN TO USE 21 SENT TRALIZERS, BUT BP 14:42:38 ONLY USED SIX. IF YOU TAKE A LOOK AT TAB 8, IT 14:42:46 SAYS, ON PAGE 18, IT SAYS DID YOU THIS EVEN THOUGH YOUR 14:42:52 CEMENTER SAID THAT THIS WOULD CREATE A "SEVERE RISK THAT THE 14:42:58 CEMENT JOB WOULD FAIL." IT SAYS, BASED ON -- IT SAYS 14:43:07 THAT IT WOULD BE A SEVERE RISK AND BP OPERATIONS DRILLING 14:43:09 ENGINEER WROTE ABOUT THIS DECISION, WHO CARES, IT'S DONE, 14:43:15 END OF STORY, WILL PROBABLY BE FINE AND GET A GOOD CEMENT JOB. 14:43:19 FROM YOU AWARE OF THAT DOCUMENT AT THE TIME, MR. HAYWARD? 14:43:30 I WAS NOT AWARE OF THAT? WHEN WERE YOU FIRST MADE 14:43:35 AWARE? BY YOUR COMMITTEE. 14:43:37 BUT YOU WOULD NOT DENY THAT BP OR ITS EMPLOYEES WERE NOT 14:43:42 AWARE OF THAT DOCUMENT? THERE WERE PEOPLE WITHIN BP 14:43:46 THAT WERE AWARE OF THAT DOCUMENT. 14:43:48 WOULD YOU SAY THAT IT'S BEST TO SAY END OF STORY, WE'LL 14:43:51 PROBABLY BE FINE AND GET A GOOD CEMENT JOB? 14:43:55 I THINK THAT E-MAIL IS A CAUSE OF CONCERN. 14:43:59 I WOULD THINK SO. I WOULD LIKE TO KNOW THE 14:44:01 CONTEXT OF WHICH IT WAS SENT AND AS I SAID, A NUMBER OF TIMES, IF 14:44:08 THERE WAS COST AHEAD OF SAFETY, I WILL TAKE ACTION. 14:44:10 I UNDERSTAND. LET ME FINISH WITH THE CEMENT 14:44:14 BOND. NOW, YOU WOULD -- BP FAILED TO 14:44:18 PERFORM THE MOST EFFECTIVE TESTS THAT WAS KNOWN TO DETERMINE 14:44:24 WHETHER THE CEMENT WAS PROPERLY SEALED. 14:44:25 AND THAT'S THE CEMENT BOND LOG TEST. 14:44:27 THERE WAS A CONTRACTOR ON BOARD HIRED TO PERFORM THIS TASK BUT 14:44:32 THEY WERE SENT AWAY 11 HOURS PRIOR TO THE EXPLOSION. 14:44:35 THIS TEST WAS DESCRIBED BY THE CHIEF SAFETY OFFICER AS "THE 14:44:41 ONLY TASK THAT CAN REALLY DETERMINE THE ACTUAL 14:44:45 EFFECTIVENESS OF THE BOND BETWEEN THE CEMENT SHEETS. 14:44:48 THE FORMATION AND THE CASING IT SELF." 14:44:51 NOW, THE COMMITTEE HAS CONSULTED AN INDEPENDENT EXPERT WHO SAID 14:44:55 THAT CEMENT BOND LOGS SHOULD ALWAYS BE USED. 14:44:59 ANOTHER EXPERT SAID IT'S UNHEARD OF NOT TO PERFORM THIS TASK. 14:45:04 HE CALLED YOUR DECISION, AND I'M QUOTING, HORRIBLY NEGLIGENT. 14:45:11 SO I WANT TO ASK YOU A QUESTION. DO YOU THINK A CEO OF THIS 14:45:13 COMPANY, IT WAS A MISTAKE NOT TO CONDUCT THE CEMENT BOND LOG 14:45:17 TEST? THAT IS WHAT OUR 14:45:19 INVESTIGATION WILL DETERMINE. SO YOUR ANSWER WOULD BE YES, 14:45:22 IT WAS A MISTAKE, CORRECT? I'M NOT ABLE TO ANSWER YES OR 14:45:28 NO UNTIL THE INVESTIGATION IS COMPLETE. 14:45:30 BECAUSE YOUR LAWYERS TOLD YOU NOT TO OR WHAT? 14:45:33 BECAUSE I WAS NOT INVOLVED. I'M SORRY. 14:45:35 BUT YOU JUST SAID YOU THINK THAT ALL OF THE EVIDENCE SHOW IT 14:45:38 IS WAS A MISTAKE, CORRECT? THAT IS NOT CORRECT. 14:45:41 THAT'S NOT WHAT I SAID. OKAY. 14:45:44 DO YOU THINK IT WAS ALL RIGHT NOT TO CONDUCT IT? 14:45:46 I THINK WE NEED TO COMPLETE THE INVESTIGATION. 14:45:48 OKAY. AND DETERMINE WHETHER RUNNING 14:45:50 A CEMENT BOND LOG OR NOT WOULD HAVE CREATED A MAJOR DIFFERENCE 14:45:54 TO WHAT HAPPENED HERE. OKAY. 14:45:57 LET ME ASK YOU THIS. ARE YOU AWARE OF THE FACT THAT 14:46:02 IT WOULD HAVE COST ABOUT $128,000 AND TAKEN NINE TO 12 14:46:05 HOURS TO COMPLETE THE CEMENT BOND LOG TEST? 14:46:08 I AM AWARE OF THAT FACT, YES. YES. 14:46:14 OKAY. I YIELD BACK. 14:46:17 THANK YOU, MR. CHAIRMAN. THANK YOU. 14:46:19 MR. DOYLE FOR QUESTIONS, PLEASE. THANK YOU, MR. CHAIRMAN. 14:46:22 MR. HAYWARD, IN YOUR TESTIMONY YOU SAY THAT SOME OF THE BEST 14:46:27 MINES AND THE DEEPEST EXPERTISE ARE BEING BROUGHT TO BEAR ON THE 14:46:30 OIL SPILL AND IT'S DIFFICULT TO IMAGINE THE GATHERING OF A 14:46:37 LARGER MORE TECHNICALLY PRO FISH SENT TEAM. 14:46:40 I KNOW THAT'S MEANT TO REASSURE US THAT EVERYTHING IS BEING 14:46:43 DONE. BUT IT MAKES ME WONDER WHO WAS 14:46:46 MAKING THESE KEY DECISIONS BEFORE THE ACCIDENT. 14:46:49 ONE OF THE KEY DECISIONS WAS WHAT TYPE OF TUBE TO INSERT. 14:46:55 THE SECOND DESIGN OFFERS MORE BARRIERS TO UNINTENDED GAS FLOW 14:46:59 AND ON TUESDAY THE OTHER OIL COMPANIES THAT WE TALKED TO TOLD 14:47:02 US THAT THEY WOULD HAVE CHOSEN THAT DESIGN. 14:47:05 LOOKING BACK, THE DECISION THAT BP MADE APPEARS TO HAVE HAD 14:47:09 SERIOUS CONSEQUENCES. MR. HAYWARD, FROM YOU INVOLVED 14:47:12 IN THAT DECISION? I WAS NOT INVOLVED IN THAT 14:47:15 DECISION. WERE YOU AWARE OF THAT 14:47:16 DECISION? I WAS NOT INVOLVED OR AWARE 14:47:18 OF ANY DECISIONS BEING MADE REGARDING THIS WELL WHEN IT WAS 14:47:24 BEING DRILLED. WE ASKED ABOUT YOUR 14:47:28 INSPECTORS. THEY TOLD US IT WAS THE ANDY 14:47:31 ENGLISH AND DOUG SUBTLES, THE CHIEF OPERATING OFFICER. 14:47:36 WAS ANDY ENGLISH INVOLVED IN THIS DECISION? 14:47:39 I CAN'T ANSWER THAT QUESTION. I GENUINELY DON'T KNOW. 14:47:42 I WOULD BE VERY SURPRISED. WHAT ABOUT DOUG SUTTLES. 14:47:47 I WOULD BE VERY SURPRISED THAT THEY WERE INVOLVED IN ANY 14:47:52 DECISION. WE FIND NO RECORD THAT THEY 14:47:54 KNEW ANYTHING ABOUT THIS DECISION. 14:47:56 IN FACT, WE FIND NO EVIDENCE THAT THEY EVER RECEIVED 14:47:58 BRIEFINGS ON THE ACTIVITIES ABOARD THE DEEP WATER HORIZON 14:48:02 BEFORE THE EXPLOSION. THESE DECISIONS ALL SEEM TO HAVE 14:48:06 BEEN DELEGATED TO MUCH LOWER-RANKING OFFICIALS. 14:48:09 WELL, MR. HAYWARD, THEN, WHO WAS THE ONE WHO MADE THE DECISION TO 14:48:12 USE A SINGLE TUBE OF METAL FROM THE TOP OF THE WELL TO THE 14:48:15 BOTTOM? WHO DID MAKE THAT DECISION? 14:48:17 I'M NOT SURE EXACTLY WHO MADE THE DECISION. 14:48:19 IT WOULD HAVE BEEN A DECISION TAKEN BY THE DRILLING 14:48:22 ORGANIZATION IN THE GULF OF MEXICO. 14:48:28 THE TECHNICAL EXPERTS THAT HAVE THE -- 14:48:31 BUT YOU CAN'T TELL THIS COMMITTEE WHO THAT WAS? 14:48:34 I CAN'T SITTING HERE TODAY, I'M AFRAID. 14:48:37 YOU CAN GET THIS INFORMATION TO OUR COMMITTEE? 14:48:39 I THINK IT'S PRETTY AMAZING THAT THIS IS A DECISION THAT HAD 14:48:43 ENORMOUS CONSEQUENCES AND YOU CAN'T EVEN TELL THE COMMITTEE 14:48:45 WHO MADE THE DECISION ON BEHALF OF YOUR COMPANY. 14:48:48 AND THE REASON I'M ASKING YOU THESE QUESTIONS, BECAUSE YOUR 14:48:55 INDUSTRY IS DIFFERENT THAN MANY. YOU'RE NOT THE CEO OF A 14:48:57 DEPARTMENT STORE CHAIN WHERE IT'S FINE TO LEAVE DECISIONS TO 14:48:59 ABOUT RUNNING THE STORE TO BRANCH MANAGERS. 14:49:01 YOU KNOW, IF A DEPARTMENT STORE MIDDLE MANAGER MAKE AS MISTAKE, 14:49:05 THERE'S NO LIFE OR DEATH CONSEQUENCES. 14:49:07 WHAT YOU DO IS DIFFERENT. YOU'RE DRILLING FAR BELOW SEA 14:49:11 LEVEL INTO A REGION THAT'S MORE LIKE OUTER SPACE THAN ANYTHING 14:49:14 ELSE. THE CONSEQUENCES OF THAT 14:49:15 DRILLING ARE HUGE. IF A MISTAKE OR MISJUDGMENT IS 14:49:22 MADE, WORKERS ON THE RIG CAN GET KILLED AND AN ENVIRONMENTAL 14:49:25 CATASTROPHE CAN BE UNLEASHED THE BEST MINDS IN THE SENIOR 14:49:29 LEADERSHIP OF A COMPANY SHOULD BE PAYING CLOSE ATTENTION TO 14:49:31 THOSE RISKS BUT IT DIDN'T HAPPEN HERE AND NOW WE'RE ALL PAYING 14:49:35 THE CONSEQUENCES BECAUSE THOSE OF YOU AT THE TOP DON'T SEEM TO 14:49:38 HAVE A CLUE ABOUT WHAT WAS GOING ON IN THIS RIG. 14:49:41 I'M SITTING HERE THINKING, I COULD BE A CEO OF AN OIL 14:49:48 COMPANY. I HEAR IT PAYS BETTER THAN BEING 14:49:49 A MEMBER OF CONGRESS BECAUSE I'VE WATCHED YOU, IN FRONT OF 14:49:51 THIS COMMITTEE, NOT GIVE US MUCH INFORMATION ON ANYTHING HERE. 14:49:53 I WANT TO ASK YOU ONE LAST QUESTION WHILE I HAVE SOME TIME. 14:49:58 YOU TOLD US THAT YOU'RE DOING EVERYTHING POSSIBLE TO STOP THIS 14:50:04 WELL FROM LEAKING. BUT IT SEEMS TO ME THAT WHAT 14:50:05 WE'RE LEFT WITH NOW IS WAITING FOR THIS RELIEF WELL TO BE 14:50:09 DRILLED AND THAT'S GOING TO HAPPEN SOMETIME IN AUGUST. 14:50:15 SO TODAY IS JUNE 17th. BACK IN ONE TOOK OVER NINE MONTHS TO CAP 14:50:23 AFTER DRILLING SEVERAL RELIEF WELLS. 14:50:25 THAT WELL WAS ONLY 160 FEET DOWN INTO THE OCEAN WHILE THE McCONDO 14:50:31 ZELL WELL WAS OVER 5,000 FEET BENEATH THE SURFACE OF THE 14:50:35 OCEAN. ARE WE AT THE POINT NOW WHERE BP 14:50:38 IS DOING NOTHING AND UNTIL THE RELIEF WELL GETS DOWN THERE OR 14:50:42 ARE YOU TRYING SOME DIFFERENT TECHNOLOGY OR SOME OTHER WAY TO 14:50:45 KILL THE WELL BEFORE YOU GET A RELIEF WELL DOWN THERE? 14:50:49 IS THERE ANYTHING ELSE ON THE HORIZON. 14:50:51 I'M AFRAID THERE ARE NO OPTIONS TO KILL THIS WELL OTHER 14:50:54 THAN A WELL FROM THE BASE OF THE RESERVOIR. 14:50:57 AS YOU ARE ALL AWARE, WE TRIED TO KILL THE WELL FROM THE TOP 14:51:01 USING A TOP KILL OPERATION AND THE PRESSURES IN THE WELL ARE 14:51:04 SUCH THAT IT'S NOT POSSIBLE TO DO THAT. 14:51:07 SO WE HAVE TO RELY ON THE RELIEF WELLS. 14:51:09 IN THE INTERIM, WE ARE CONTINUING TO CONTAIN AS MUCH OF 14:51:13 THE OIL AS WE CAN AND THAT OPERATION IS CURRENTLY 14:51:16 CONCERNING 20,000 BARRELS A DAY. BY THE END OF THIS MONTH WE'LL 14:51:20 HAVE THE ABILITY TO CONTAIN BETWEEN 40,000 AND 50,000 14:51:23 BARRELS A DAY AND BY THE MIDDLE OF JEWEL, BETWEEN 60 AND 0,000 14:51:29 BARRELS A DAY. I'LL ASK YOU A QUESTION I 14:51:31 ASKED OTHER OIL EXECUTIVES ON TUESDAY. 14:51:34 WHY WOULDN'T YOU JUST DRILL RELIEF WELLS WHEN YOU DRILL THE 14:51:37 MAIN WELL SOFUL SOMETHING LIKE THIS HAPPENED, INSTEAD OF US 14:51:40 WAITING TWO, THREE MONTHS AND WATCHING MILLIONS OF BARRELS OF 14:51:43 OIL COME INTO THE OCEAN DESTROYING OUR ECOSYSTEM AND OUR 14:51:46 WAY OF LIFE IN THE GULF COAST, THAT YOU COULD KILL THAT WELL IN 14:51:49 A SHORT PERIOD OF TIME? I UNDERSTAND THE EXTRA RELIEF 14:51:53 WELL WOULD COST YOU A LITTLE BIT MORE MONEY BUT IT SEEMS TO ME IN 14:51:56 THIS CASE IT WOULD HAVE SAVED YOU BILLIONS OF DOLLARS. 14:51:59 WHAT ARE YOUR THOUGHTS ON DRILLING RELIEF WELLS ALONG WITH 14:52:03 MAIN WELLS? I THINK WE WOULD NEED TO LOOK 14:52:05 AT ALL OF THE OPTIONS AVAILABLE TO US GOING FORWARD WITH RESPECT 14:52:09 TO DEEP WATER EXPLORATION. MY TIME'S UP. 14:52:13 THANK YOU. QUESTIONS, PLEASE. 14:52:19 THANK YOU, MR. CHAIRMAN. I WANTED TO FOCUS ON THE 14:52:24 MIND-SET OF BP WHEN IT COMES TO ITS WORKERS. 14:52:28 YOU SAID IN YOUR OPENING STATEMENT THAT YOU WERE 14:52:32 PERSONALLY DEVASTATED. YOU ATTENDED A MEMORIAL SERVICE 14:52:35 FOR THOSE MEN. IT WAS A SHATTERING MOMENT. 14:52:37 I WANT TO OFFER MY SINCERE CONDOLENCES TO THEIR FRIENDS AND 14:52:42 FAMILIES. I CAN ONLY IMAGINE THEIR SORROW. 14:52:44 PROBABLY NOT AS DEVASTATED AS THE WIDOWS THAT TESTIFIED BEFORE 14:52:48 OUR COMMITTEE, AND I ASKED THEM WHAT ABOUT BP. 14:52:55 WHAT KIND OF CONTACT HAVE YOU HAD WITH BP SINCE THE INCIDENT, 14:53:01 LETTERS, PHONE CALLS, VISITS. AND NATALIE ROSCHTOW SAID TWO BP 14:53:08 ATTENDED SHANE'S SERVICES AND THEY NEVER EXTENDED A HAPPENED, 14:53:11 A HUG IT, NEVER EXTENDSED A WE'RE SORRY. 14:53:14 THEIR CONDOLENCES. THE ONLY WORDS THAT CAME OUT OF 14:53:18 THEIR MOUTH WAS WHERE THEY WERE TO BE SEATED AND I NEVER SAW 14:53:20 THEM AFTER THAT. I ASKED, WHAT ABOUT YOU, 14:53:23 MRS. KEMP? TWO BP CAME TO WYATT'S SERVICES 14:53:27 AND ONE EXTENDED HIS HAND. I SHOOK. 14:53:31 HE TOLD ME HE WAS VERY SORRY FOR MY LOSS. 14:53:34 HE ASKED IF HE HUG ME. HE DID. 14:53:36 THE OTHER GENTLEMAN EXTENDED HIS HAND, TOLD ME WHO HE WAS AND 14:53:40 THEY SENT TWO PLANTS TO THE SERVICE. 14:53:41 AND THAT IS THE EXTENT OF MY CONVERSATION OR ANY DEALINGS 14:53:45 WITH BP. THAT'S IT. 14:53:47 DO YOU FEEL THAT YOU OWE SOMETHING MORE TO THOSE WOMEN 14:53:52 AND TO -- JUST IN TERMS OF EXPRESSING SOMETHING AND SOME 14:53:58 AND MORE? AS I SAID, I'M DEB STATED BY 14:54:01 THE ACCIDENT. ABSOLUTELY DEVASTATED. 14:54:05 AND I FEEL GREAT SORROW FOR THE PEOPLE WHO HAVE BEEN IMPACTED BY 14:54:09 IT. WELL, THEY HAVEN'T HEARD 14:54:10 ANYTHING -- THE PEOPLE WHO WERE KILLED IN 14:54:15 THE ACCIDENT WERE NOT BP EMPLOYEES. 14:54:17 THEY'RE EMPLOYEES OF TRANSOCEAN, ANOTHER CONTRACTOR. 14:54:20 AND BOTH OF THEM MADE IT VERY CLEAR THAT THEY WANTED TO DEAL 14:54:25 WITH THE FAMILIES. WE HAVE PROVIDE SUPPORT TO BOTH 14:54:29 TRANSOCEAN AND -- I GUESS I WAS TALKING TO YOU 14:54:31 AS A HUMAN BEING. WE HAVE MADE IT CLEAR THAT WE 14:54:34 WILL PROVIDE ALL AND EVERY NEED FOR THE FAMILIES, BUT -- 14:54:39 LET ME ASK ANOTHER QUESTION. THERE WERE BP PERSONNEL ON THE 14:54:44 RIG, AND WE READ THAT OIL WORKERS FROM THE RIG WERE HELD 14:54:48 IN ZOOE SEE COLLUSION ON THE OPEN WATER FOR UP TO TWO DAYS 14:54:51 AFTER THE APRIL 20 EXPLOSION WHILE ATTORNEYS ATTEMPTED TO 14:54:54 CONVINCE THEM TO SIGN LEGAL DOCUMENTS STATING THAT THEY WERE 14:54:58 UNHARMED BY THE INCIDENT. THE MEN CLAIMED AN THAT THEY 14:55:02 WERE FORBIDDEN FROM HAVING ANY CONTACT WITH CONCERNED LOVED 14:55:05 ONES DURING THAT TIME AND WERE TOLD THAT THEY WOULD NOT BE ABLE 14:55:07 TO GO HOME UNTIL THEY SIGNED THE DOCUMENTS THEY WERE PRESENTED 14:55:09 WITH. AFTER BEING AWAKE FOR 50 14:55:14 HARROWING HOURS, STEPHEN DAVIS CAVED IN AND SIGNED THE PAPERS. 14:55:17 HE SAID MOST OF THE OTHERS DID, AS WELL. 14:55:21 DO YOU THINK THIS IS AN APPROPRIATE WAY TO TREAT PEOPLE 14:55:26 THAT EXPERIENCE THAT, AND SINCE YOUR EXECUTIVES, YOU HAD PEOPLE 14:55:31 ON THE RIG, WHAT WAS THEIR FEELING ABOUT THAT? 14:55:33 WHAT IS YOUR FEELING ABOUT THAT? I THINK IT'S INAPPROPRIATE 14:55:36 AND IT WAS NOTHING TO DO WITH BP. 14:55:39 IF. I SEE. 14:55:40 AND BP HAD NO COMMENT ON IT AND HAD NO OPPORTUNITY? 14:55:45 I MEAN, DID THE COMPANY KNOW ABOUT IT? 14:55:47 WAS THERE ANY -- I DON'T BELIEVE WE WERE AWARE 14:55:51 IT WAS TAKING PLACE, BUT IT WAS CERTAINLY NOTHING TO DO WITH BP. 14:55:54 WELL, I DID MENTION DURING MY OPENING STATEMENT THIS DOCUMENT 14:55:59 THAT BASICALLY SAYS SUCH VOLUNTARY EFFORT SHALL BE AT MY 14:56:02 OWN RISK THAT PEOPLE WERE MADE TO SIGN. 14:56:07 AND THERE WERE TWO COURT APPEARANCES THAT WERE NEEDED TO 14:56:12 FINALLY GET BP TO TAKE RESPONSIBILITY, BUT WHAT I 14:56:16 UNDERSTAND IS THAT BP CONTINUED TO FAIL TO PROVIDE ADEQUATE 14:56:20 PROTECTIVE GEAR TO THE FISHERMEN AND ON MAY 16th, OSHA ISSUED A 14:56:27 DETAILED DIRECTIVE ON THE TRAINING REQUIREMENT FOR 14:56:29 SPECIFIC TASKS TO RESPONDERS AND STATE THAT HAD OWED SHAH HAD 14:56:33 OFFICIALS MONITORING THE TRAINING AND OBSERVING THE 14:56:36 CLEAN-UP BUT ACCORDING TO TESTIMONY WE HEARD NUR 14:56:41 LOUISIANA, STILL BP FAILED TO PROVIDE RESPIRATORS TO THE 14:56:44 WORKERS EXPOSED TO THE CRUDE OIL AND THE WORKERS EXPERIENCED 14:56:47 HEALTH IMPACTS. THE WORKERS WERE AFRAID TO SPEAK 14:56:51 UP DUE TO POTENTIAL TO LOSE THEIR JOBS. 14:56:53 THOSE FISHERMEN HON ATTEMPTED TO WEAR RIS PIR RATE FORCES WHILE 14:56:58 WORK WERE THREATENED TO BE FIRED BY BP DUE TO THE WORKERS USING 14:57:04 THE RIS PER RATE TORS. ARE YOU AWARE OF THAT. 14:57:06 I'M NOT AWARE THAT. WE'RE WORKING TO ENSURE THAT 14:57:10 ANYONE WORKING ON THE RESPONSE IS APPROPRIATELY PROVIDE WITH 14:57:13 WHATEVER SAFETY EQUIPMENT IS REQUIRED. 14:57:15 ENDEAVORING TO PROVIDE? ARE THE WORKERS CURRENTLY 14:57:19 PROVIDED WITH WHAT THEY NEED? ABSOLUTELY. 14:57:26 IN EVERY CASE, WE'RE TRYING TO MAKE CERTAIN -- 14:57:28 AGAIN, YOU'RE TRYING TO MAKE CERTAIN BUT IS ALL THE EQUIPMENT 14:57:31 THERE, AND ARE ALL THESE WORKERS PROTECTED? 14:57:34 TO MY KNOWLEDGE, YES. THANK YOU. 14:57:36 I YIELD BACK. THANK YOU, NEXT TURN TO 14:57:40 MR. ROSS FOR QUESTIONS, PLEASE. THANK YOU, MR. CHAIRMAN, AND 14:57:47 MR. HAYWARD, SINCE MY OPENING STATEMENT, UP TO 416,666 GALLONS 14:57:55 OF OIL HAVE LEAKED INTO THE GULF. 14:57:58 THAT WAS ABOUT FOUR HOURS AGO. IN MY OPENING STATEMENT FOUR 14:58:04 HOURS AGO I ASKED YOU TO PROVIDE US TO BE OPEN WITH US, AND 14:58:08 HONEST WITH US IN YOUR RESPONSES AND INSTEAD, IT SEEMS AS THOUGH 14:58:13 WE'RE GETTING STATEMENTS, MEMORIZED BY YOU AND PROVIDED BY 14:58:16 YOUR LEGAL COUNSEL. I DON'T KNOW IF BP QUITE 14:58:22 UNDERSTANDS HOW ANGRY THE AMERICAN PEOPLE AND THE WORLD IS 14:58:26 AT THEM. I CAN TELL YOU IT'S RARE THAT 14:58:31 YOU SEE DEMOCRATS AND REPUBLICANS ON THIS PANEL 14:58:33 AGREEING WITH ONE ANOTHER. AND YET, IT'S BEEN PRETTY 14:58:37 CONSISTENT TODAY WITH A FEW MAJOR EXCEPTIONS THE LEVEL OF 14:58:45 DISCONTENT AND ANGER AND FRUSTRATION AT BP.
House Energy Hearing with Tony Hayward / Witness / 1400-1500
The Oversight Subcommittee of the House Energy and Commerce committee meets to hear from Tony Hayward, the CEO of BP 14:11:39 BART STUPAK: THE COMMITTEE WILL RECONVENE. MR. HAYWARD, I WAS APPROACHED 14:12:03 BY MEMBERS OF THE COMMITTEE WHO ARE NOT HAPPY WITH YOUR LACK OF 14:12:08 CANDOR. WE INITIALLY WANTED TO HAVE THIS 14:12:10 HEARING LAST WEEK. HOWEVER, YOUR STAFF PLEADED WITH 14:12:15 THE COMMITTEE SO YOU COULD BE ADEQUATELY PREPARED FOR THIS 14:12:20 HEARING AND WE AGREED. IN ADDITION TO THE EXTRA WEEK, 14:12:21 WE ALLOWED YOU TO PREPARE, WE SENT YOU A 14-PAGE LETTER 14:12:26 OUTLINING FIVE ISSUES YOU SHOULD BE PREPARED TO ADDRESS IN 14:12:30 TODAY'S HEARING. YOU DID NOT ADDRESS ANY OF THOSE 14:12:33 ISSUES IN YOUR OPENING STATEMENT AND THUS FAR YOU HAVE RESPONDED 14:12:37 TO OUR QUESTIONS WITH LITTLE SUBSTANCE AND MANY CLAIMS OF NOT 14:12:40 KNOWING OR NOT BEING PART OF THE DECISION-MAKING PROCESSES. 14:12:43 YOU'VE PREACHED ACCEPTING RESPONSIBILITY FOR ACTIONS TO 14:12:47 YOUR STAFF IN TOWN HALL MEETINGS AND YET YOU HAVE NOT YET 14:12:54 PROVIDED US WITH DIRECT ANSWERS OR TAKEN RESPONSIBILITY THUS FAR 14:12:56 TODAY. I SINCERELY HOPE THAT WILL YOU 14:12:58 RECONSIDER YOUR APPROACH TO THESE QUESTIONS. 14:13:01 I HOPE YOU WILL BE MORE FORTHCOMING AND LESS EVASIVE 14:13:06 WITH YOUR ANSWERS FOR THE REMAINDER OF YOUR HEARING. 14:13:08 WE SHOULD BE ABLE TO GET THROUGH THE REST OF YOUR HEARING BECAUSE 14:13:14 MEMBERS WANT TO PUSH YOU ON SOME OF THESE ISSUES. 14:13:17 YOU'RE THE CEO. GREAT EXPERIENCE. 14:13:19 YOU'VE GOT A PH.D. YOU'VE BEEN HEAD OF EXPLORATION. 14:13:23 YOU KNOW WHAT IS GOING ON. WE HOPED THAT WE WOULD HAVE MORE 14:13:32 CANDOR RESPONSE TO OUR QUESTIONS. 14:13:33 LET'S TURN TO MS. BLACKBURN FOR QUESTIONS. 14:13:34 FIVE MINUTES, PLEASE. THANK YOU, MR. CHAIRMAN. 14:13:36 INDEED, MR. HAYWARD, WE ARE A LITTLE BIT FRUSTRATED WITH 14:13:40 HEARING YOU SAYING THAT YOU WERE NOT A PARTY TO CERTAIN DECISIONS 14:13:42 OR WERE NOT IN THAT CHAIN OF COMMAND OR THAT YOU CAN'T 14:13:46 COMMENT BECAUSE OF THE ONGOING INVESTIGATIONS. 14:13:49 SO I'M GOING TO TRY A LITTLE BIT DIFFERENT TACT BECAUSE I DO WANT 14:13:52 TO GET SOME ANSWERS AND GET SOME ITEMS ON THE. 14:14:00 I WANT TO GO BACK TO THE SAFETY ISSUES. 14:14:02 I MENTIONED THAT IN MY OPENING STATEMENTS TO YOU. 14:14:06 I GREW UP DOWN ON THE GULF COAST AND THEN MOVED AWAY. 14:14:10 I'M FAMILIAR WITH PEOPLE WORKING OFFSHORE, IF YOU WILL. 14:14:15 AND WHAT I WOULD LIKE TO KNOW FROM YOU, HAVE YOU BEEN BRIEFED 14:14:18 ON THE SAFETY ISSUES AND THE SAFETY CONCERNS AND THEN IF YOU 14:14:24 WERE A PART OF THE DECISION-MAKING PROCESS ON WHAT 14:14:28 WOULD BE CONSIDERED THE BEST OPERATING PRACTICES? 14:14:32 WERE YOU A PART OF THE CHAIN OF WHAND AND WHAT IS THE CHAIN OF 14:14:36 COMMAND FOR DISPUTE RESOLUTION WHEN THERE'S A DIFFERENCE ABOUT 14:14:39 HOW TO APPROACH SAFETY? GO AHEAD. 14:14:46 I'D LOVE YOUR RESPONSE. WELL, I CLEARLY AM THE 14:14:49 ULTIMATE IN THE CHAIN OF COMMAND BUT I WAS NOT INVOLVED IN THE -- 14:14:53 LET'S DO THIS, THEN. IF YOU WERE NOT INVOLVED IN THE 14:14:57 DECISION-MAKING OF HOW SAFETY IS APPROACHED ON THESE RIGS AND 14:15:01 PLATFORMS, WOULD YOU SUBMIT TO US IN WRITING FOR THE RECORD A 14:15:05 DESCRIPTION OF WHAT THAT CHAIN OF COMMAND IS AND WHAT THE 14:15:08 PROCESS IS WHEN THERE'S A DIFFERENCE OF OPINION ON HOW YOU 14:15:12 APPROACH RIG SAFETY? WOULD YOU BE WILLING TO SUBMIT 14:15:16 THAT? AND I WILL ASK YOU AND YOUR TEAM 14:15:17 TO SUBMIT THAT TO US FOR THE RECORD. 14:15:21 IN ADDITION, SINCE BECOMING CEO, HAVE YOU BEEN BRIEFED ON THE 14:15:26 SIGNIFICANT SAFETY INCIDENTS THAT HAVE BEEN INVOLVED IN 14:15:32 ALASKAN PRODUCTION FACILITIES IN THE LAST YEAR? 14:15:33 HAVE YOU BEEN BRIEFED? I HAVE DISCUSSED THOSE 14:15:37 ISSUES. AS A RESULT OF THESE 14:15:40 BRIEFINGS, DID YOU AUTHORIZE ANY CHANGES TO BP POLICIES AND 14:15:45 PRACTICES FOR DEALING WITH THE SAFETY? 14:15:46 INCIDENTS? WE TOOK ACTIONS IN ALASKA TO 14:15:50 CHANGE THOSE ORGANIZATION AND SOME OF THE PROCESSES. 14:15:53 SINCE THE DEEP WATER HORIZON INCIDENT, HAVE YOU MADE CHANGES 14:16:00 AND WHAT ARE THOSE? WILL YOU SUBMIT THOSE TO US FOR 14:16:01 THE RECORD? WE HAVE MADE CHANGES TO OUR 14:16:04 TESTING PROCEDURES AND TO THE INTENSITY WITH WHICH WELL SITES 14:16:16 LEADERS ARE AWARE OF CONTROL PROCEDURES AND A VARIETY OF 14:16:20 OTHER INTERVENTIONS. THAT IS PREDICATED ON WHAT WE 14:16:23 HAVE LEARNED FROM THE INCIDENT SO FAR AND AS WE LEARN MORE, WE 14:16:28 WILL MAKE MORE CHANGES AS WE DEEM APROEP PREE ATE AND I WOULD 14:16:37 BE VERY HAPPY TO SUBMIT TO YOU THE CHANGES THAT WE MADE. 14:16:39 THANK YOU. HAVE YOU -- DID YOU ASK OTHER 14:16:42 COMPANIES FOR HELP IN CLEANING UP THE OIL SPILL? 14:16:46 LAST WEEK WITH THE HEARING WE HAD SEVERAL DIFFERENT HEARINGS. 14:16:50 DID YOU APPROACH EITHER COMPANIES OR COUNTRIES AND ASK 14:16:53 FOR THEIR HELP AND EXPERTISE IN PLUGGING THAT LEAK AND IN 14:16:57 PARTICIPATION IN THE CLEANSNUP. WE SOUGHT HELP FROM BOTH THE 14:17:05 IMMEDIATE IN THE GUL FIREFIGHTER MEXICO AND GLOBALLY FROM AROUND 14:17:09 THE WORLD AND ACROSS AMERICA. THERE ARE 700 ENTITIES INVOLVED 14:17:16 IN THE EFFORT. ALL OF THEM MAJOR OPERATORS IN 14:17:19 THIS COUNTRY, MAJOR OPERATORS FROM ELSEWHERE IN THE WORLD. 14:17:23 MANY OF THE MAJOR ACADEMIC INSTITUTIONS IN THIS COUNTRY, 14:17:27 SOME OF THE GREATEST MINDS IN THE COUNTRY ARE INVOLVED IN 14:17:32 TRYING TO DEAL WITH THIS PROBLEM. 14:17:33 DID THEY PARTICIPATE AT YOUR INVITATION OR THE GOVERNMENT'S 14:17:38 INVITATION? THEY PARTED IN THE FIRST 14:17:43 INSTANCE AND SUBSEQUENTLY THE FEDERAL AUTHORITIES BROUGHT SOME 14:17:49 OF THE GREAT ACADEMIC INSTITUTIONS IN THIS COUNTRY TO 14:17:54 BEAR. OKAY. 14:17:56 REALLY YOU CURRENTLY -- IS BP CURRENTLY WORKING ON 14:18:01 INDUSTRY-WIDE EFFORTS TO LOOK AT SAFETY? 14:18:07 WE HAVE LOOKED AT MMS WITH REGARD TO THE THINGS THAT WE 14:18:10 HAVE LEARNED SO FAR, PARTICULARLY WITH REGARD TO 14:18:18 BLOWOUT PREVENTERS AND AS WE LEARN WHAT THE REALITIES ARE AND 14:18:25 I BELIEVE IN THE COURSE OF THE COMING MONTHS THE INDUSTRY WILL 14:18:28 WORK TOGETHER TO DETERMINE WHAT IS THE BEST WAY FORWARD. 14:18:31 WE HOPE THAT YOU ARE WORKING TOGETHER BECAUSE I HOPE YOU 14:18:37 UNDERSTAND OUR FRUSTRATION WHEN YOU HAVE STATED BEFORE SAFETY 14:18:40 WOULD BE A PRIORITY FOR BP AND WE EXPECT YOU ALL TO TAKE ACTION 14:18:50 ON LESSONS LEARNED. AND WHEN YOU TELL US THAT YOU 14:18:51 ARE TAKING THAT ACTION AND THEN YOU RETURN BECAUSE OF WHAT HAS 14:18:57 OCCURRED, MR. HAYWARD, I CANNOT EVEN BEGIN TO TELL YOU HOW 14:18:59 DISAPPOINTING IT IS TO US THAT YOU ARE SAYING -- AND YOU 14:19:04 MENTIONED ACTIONS AND WORDS IN YOUR TESTIMONY -- BUT, SIR, YOU 14:19:10 ARE GIVING THE RHETORIC. WHAT WE WANT TO SEE GOING 14:19:13 FORWARD IS THE ACTION THAT INDEED YOU HAVE LEARNED THESE 14:19:16 LESSONS. THAT BP HAS LEARNED THESE 14:19:20 LESSONS. AND THAT YOU ARE GOING TO SHARE 14:19:21 THESE BEST PRACTICES WITH THE INDUSTRY. 14:19:23 THAT WOULD BE VERY HELPFUL. THANK YOU FOR BEING BEFORE US 14:19:27 TODAY. I YIELD BACK. 14:19:29 THANK YOU, GENERAL LADY. MR. HAYWARD, YOU INDICATED THAT 14:19:32 YOU MADE RECOMMENDATIONS ON THE BLOWOUT PREVENTER. 14:19:35 YOUR COMPANY HAS. WOULD YOU PROVIDE THAT TO THIS 14:19:39 COMMITTEE? WE CERTAINLY CAN. 14:19:42 NEXT, LET'S TURN TO MR. MARKEY. 14:19:46 THE EXISTENCE OF LARGE CLOUDS OF -- PLUMES OF OIL SUSPENDED 14:19:52 BENEATH THE OCEAN SURFACE IS OF CONCERN BECAUSE THE TOXIC OIL 14:19:56 CAN POISON THE AQUATIC PLANTS AND ANIMALS AND CONSUME OXYGEN, 14:20:03 POTENTIALLY AFFIXED ATING MARINE LIFE. 14:20:07 ON MAY 30th YOU INDICATED THAT YOUR SAMPLES SHOWED NO PLUMES OF 14:20:13 OIL. AGAIN, DENYING THAT THE PLUMES 14:20:18 EXISTED CITING A BP DOCUMENT SAYING THAT THERE ARE NO 14:20:22 HYDROCARBONS BELOW THE SURFACE. EVEN AFTER THE NOAA 14:20:26 ADMINISTRATOR CONFIRMED THE PLUME EXISTENCE, YOUR CEO WENT 14:20:30 ON NATIONAL TELEVISION AND CONTINUED TO DENY THEIR 14:20:35 EXISTENCE. THESE ARE PHOTOGRAPHS PRESENTED 14:20:38 TO US BY THE UNIVERSITY OF GEORGIA WHO HAS SAMPLED THE DEEP 14:20:41 WATER OF THE GULF AND FOUND SUCH PLUMES. 14:20:43 ON THE RIGHT THERE IS A FILTER WITH OIL CLEARLY PRESENT FROM 14:20:48 WATER WITHIN A PLUME AS IT PASSED BY. 14:20:52 NOW, IT ISN'T JUST UNIVERSITY SCIENTISTS DATA. 14:20:56 I HAVE UP HERE ON THE SCREEN AS WELL FROM THE E.P.A. WEBSITE, IT 14:21:05 WAS PREPARED USING THE DATA. THERE ARE 17 RED DOTS INDICATING 14:21:15 THAT YOUR OWN DATA SHOWS EVIDENCE OF SUBSURFACE PLUMES. 14:21:16 THIS IS YOUR DATA, MR. HAYWARD. ARE YOU NOW, ONCE AND FOR ALL, 14:21:19 PREPARED TO CONCEDE THAT THERE ARE PLUMES OR CLOUDS OF OIL 14:21:23 SUSPENDED DEEP BENEATH THE SURFACE OF THE OCEAN? 14:21:27 YES OR NO? AS I UNDERSTAND THE DATA, 14:21:31 CHAIRMAN, IT INDICATES THAT THERE ARE -- THERE IS OIL IN 14:21:35 VERY LOW CONCENTRATIONS, 0.5 PARTS PER MILLION, DISTRIBUTED 14:21:40 THROUGH THE COLUMN. THE DETAILED ANALYSIS THAT NOAA 14:21:46 CONDUCTED IN THREE LOCATIONS AROUND THE SPILL SHOW THAT IN 14:21:50 ONE LOCATION 0.5 PARTS PER MILLION, CLEARLY ATTRIBUTED TO 14:21:54 THIS SPILL. ARE THERE PLUMES OF OIL 14:21:57 BENEATH THE OCEAN SURFACE? THERE ARE CON STRAGSS OF OIL 14:22:01 OF ABOUT 0.5 PARTS PER MILLION IN THE WATER COLUMN. 14:22:05 SOME OF IT IS RELATED TO THIS SPILL. 14:22:08 OTHER SAMPLES HAVE BEEN TYPED TO OTHER OIL. 14:22:15 SO YOU DO NOT DEFINE THAT AS A PLUME? 14:22:19 I'M NOT AN OCEANOGRAPHIC SCIENTIST. 14:22:23 I'M GOING TO TAKE IT AS A CONTINUING NO FROM YOU, IN YOUR 14:22:26 TESTIMONY CONTINUES TO BE AT ODDS AT ALL AGAINST ALL 14:22:30 INDEPENDENT SCIENTISTS. YESTERDAY AT THE ENERGY COMMERCE 14:22:36 ON HEALTH HEARING THE DIRECTOR OF THE NATIONAL INSTITUTE OF 14:22:40 OCCUPATIONAL HEALTH AND SAFETY TOLD ME IN ANSWER TO MY QUESTION 14:22:43 THAT HE HAS ASKED BP FOR A ROSTER OF ALL WORKERS, MULTIPLE 14:22:49 TIMES, AND BP HAS FAILED TO GIVE HIM THAT INFORMATION 14:22:52 THAT IS CRITICAL TO TRACKING CHEMICAL EXPLOSION. 14:22:58 REPRESENTATIVE SUI WAS TO PROTECT THE HEALTH OF THEIR 14:23:02 WORKERS. MR. HAYWARD, WILL YOU COMMIT TO 14:23:04 A IMMEDIATELY PROVIDE THE NATIONAL INSTITUTE OF 14:23:07 OCCUPATIONAL HEALTH AND SAFETY AND THE CENTERS FOR DISEASE 14:23:10 CONTROL WITH ALL OF THE INFORMATION THAT THEY NEED TO 14:23:13 EVALUATE HEALTH IMPACTS AND TO PROTECT THESE WORKERS? 14:23:18 WE'VE PROVIDED ALL INFORMATION REQUESTS ENDEAVOR AS 14:23:23 POSSIBLE AND WE'LL ENDEAVOR TO THAT AS WELL. 14:23:34 WILL YOU PROVIDE ALL INFORMATION THAT THEY ARE 14:23:37 REQUESTING OF YOU. WE WILL CERTAINLY DO IT WITH 14:23:43 THAT ONE. IT'S NOT REASSURING TO THOSE 14:23:53 WORKERS WHO THAT HAVE IMPACT ON THEIR HEALTH. 14:23:58 BP HAS DUMPED 30,000 GALLONS OF DRILLING MUD IN THE OCEAN. 14:24:00 DRILLING MUD IS OFTEN MADE AND MAY HAVE USED SIGNIFICANT 14:24:08 QUANTITIES OF ANTIFREEZE, WHICH IS TOXIC. 14:24:10 MR. HAYWARD, WILL YOU COMMIT TO DISCLOSING THE INGREDIENTS OF 14:24:17 THE DRILLING MUD? YES, WE WILL. 14:24:22 IT'S ALL WATER-BASED MUD WITH NO TOXICITY WHAT SOLVE. 14:24:27 WILL YOU ALSO COMMIT TO DISCLOSING ALL OTHER 14:24:30 MEASUREMENTS YOU HAVE MADE RELATED TO CHEMICAL, OIL, AND 14:24:34 MET AN CONCENTRATIONS IN THE WATER IMMEDIATELY? 14:24:52 AE YOU WILL GIVE US ALL OF THE MEASUREMENTS? 14:24:54 THEY HAVE BEEN MADE AVAILABLE AND WE WILL TON DO THAT. 14:24:58 THANK YOU, MR. CHAIRMAN. THANK YOU. 14:25:14 ANGER AT BP AND ANGER OF OUR ATD ADMINISTRATION IS PAL PAT TABLE. 14:25:19 LOOK AT THE POLLS. AND WE HAVE AN OBLIGATION TO 14:25:25 ADDRESS THE FRUSTRATIONS OF THE AMERICAN PEOPLE. 14:25:29 THE CHIEF EXECUTIVE OF EXXONMOBIL TESTIFIED JUST 14:25:33 YESTERDAY AT THE ENERGY AND ENVIRONMENT SUBCOMMITTEE OF THIS 14:25:41 COMMITTEE THAT WE WOULD NOT HAVE DRILLED THE WELL THE WAY THAT 14:25:46 THEY DID. IN ADDITION, THE PRESIDENT OF 14:25:50 SHELL STATED IT'S NOT A WELL THAT WE WOULD HAVE DRILLED IN 14:25:53 THAT MECHANICAL SETUP AND THERE ARE OPERATIONAL CONCERNS. 14:25:59 MR. HAYWARD, MY PROFESSION, BEFORE CONGRESS, WAS THE 14:26:06 PRACTICE OF MEDICINE OBSTETRICS AND GYNECOLOGY. 14:26:09 IF I HAD DELIVERED A BABY THAT RESULTED IN A BAD OUTCOME, A 14:26:16 SERIOUSLY BAD OUTCOME, AND TWO OF MY FRIENDLY COMPETITORS WELL 14:26:22 RESPECTED PEERS SAID, DOCTOR, IN THIS INSTANCE, PRACTICE BELOW 14:26:27 THE STANDARD OF CARE, I WOULD BE IN SERIOUS WORLD OF HURT. 14:26:38 REFLECTING ON THE FACT THAT A DRILL WAS DRILLED IN A 14:26:46 NONRETROSPECT, WHAT IS YOUR DESIGN FOR THE WELL? 14:26:58 THERE ARE CLEARLY ISSUES IDENTIFIED AND WHEN THE 14:27:01 INVESTIGATION IS COMPLETE WE WILL DRAW THE RIGHT CONCLUSIONS. 14:27:10 YOU'VE HAD 59 DAYS AND YOU'R NOT EXACTLY MOVING WITH FEVER 14:27:13 PITCH HERE. DO YOU BELIEVE BP WAS DRILLING 14:27:17 THE WELL WITH FOLLOWING THE BEST PRACTICES THAT YOU FOLLOWED WHEN 14:27:21 YOU WERE PROMOTED TO CEO A COUPLE OF YEARSING. 14:27:24 I HAVE NO REASON TO CONCLUDE THAT THAT WASN'T THE 14:27:28 CASE. IF I HAD ANY REASON TO BELIEVE 14:27:30 THAT ANYONE WITHIN BP I WOULD TAKE ACTION. 14:27:38 DO YOU BELIEVE THAT THE DECISIONS LEADING ON AND UP TO 14:27:44 APRIL 20th, SUCH AS A DECISION TO USE ONLY SIX CENTRALIZERS, 14:27:50 INSTEAD OF ONE, THE DECISION NOT TO RUN A CEMENT BOND LOG, DO YOU 14:27:53 BELIEVE THAT THOSE DECISIONS REFLECT THE NORMAL DECISION 14:27:56 PROCESS AT BP OR WOULD YOU CHARACTERIZE THAT AS AN 14:28:00 EXCEPTION TO NORMAL OPERATING PROCEDURES? 14:28:06 . THERE'S NOTHING I'VE SEEN IN 14:28:10 THE EVIDENCE SO FAR THAT SUGGESTS ANYONE CAUSED THE HEAD 14:28:12 OF SAFETY. IF THERE ARE, THEN WE'LL TAKE 14:28:19 ACTION. IF YOU HAD BEEN PHYSICALLY 14:28:25 PRESENT ON THAT RIG ALONG WITH THE 11 MEN THAT WERE KILLED, 14:28:33 WOULD YOU HAVE APPROVED TO ONLY USE SIX CENTIMETERS DESPITE THE 14:28:41 RECOMMENDATION TO USE 21? WOULD YOU HAVE MADE THAT 14:28:44 DECISION IF YOU WERE STANDING ON THE DEEP WATER HORIZON RIG? 14:28:48 I'M NOT THE DRILLING ENGINEER SO I'M NOT QUALIFIED TO MAKE 14:28:51 THOSE JUDGMENTS. BETTER PEOPLE THAN I WERE 14:28:54 INVOLVED IN THOSE JUDGMENTS. AND IF OUR INVESTIGATION 14:28:59 DETERMINES THAT AT ANY TIME PEOPLE PUT COSTS AHEAD OF 14:29:04 SAFETY, THEN WE WILL TAKE ACTION. 14:29:06 WELL, WITH ALL DUE RESPECT, MR. HAYWARD, I THINK YOU'RE 14:29:11 COPPING OUT. YOU ARE THE CAPTAIN OF THE SHIP 14:29:13 AND IT'S BEEN SAID BY MEMBERS ON BOTH SIDES OF THE AISLE OF THIS 14:29:18 COMMITTEE, WE HAD A PRESIDENT ONCE THAT SAID, YOU KNOW, THE 14:29:23 BUCK STOPS ON MY DESK. AND I THINK THE BUCK STOPS ON 14:29:32 YOUR DESK. AND I DON'T THINK WE'RE GETTING 14:29:34 THE ANSWERS FROM YOU THAT NEED TO BE PRESENTED TO THIS 14:29:38 COMMITTEE IN A FORTHRIGHT MANNER. 14:29:40 IT'S A LITTLE FRUSTRATING FOR ALL OF US AND IT SEEMS LIKE YOUR 14:29:48 TESTIMONY HAS BEEN WAY TOO EE VASE TIF. 14:29:49 MR. CHAIRMAN, I'LL YIELD BACK. THANK YOU. 14:29:53 I WANT TO FOLLOW UP FROM MY FRIEND FROM OKLAHOMA'S QUESTIONS 14:30:00 ABOUT THE SAFETY AT BP. BECAUSE YOU HAVE STATED 14:30:04 REPEATEDLY SINCE YOU HAVE TAKEN OVER AS CEO THAT SAFE RELIABLE 14:30:08 OPERATIONS ARE NUMBER ONE PRIORITY. 14:30:09 CORRECT? THAT'S CORRECT. 14:30:10 AND YOU'VE BEEN CEO FOR THE PAST THREE YEARS, CORRECT? 14:30:14 CORRECT. THEN, EXPLAIN TO US WHY, 14:30:17 BETWEEN JUNE 2007 AND FEBRUARY 2010, THE OCCUPATIONAL HEALTH 14:30:24 AND SAFETY ADMINISTRATION CHECKED 55 OIL REFINERIES 14:30:29 OPERATING IN THE U.S., TWO OF THOSE 55 ARE OWNED BY BP, AND 14:30:33 BP'S REFINERIES RACKED UP 760 CITATIONS FOR EGREGIOUSLY SAFETY 14:30:42 VIOLATIONS, ACCOUNTING FOR 95% OF THE WORST SAFETY VIOLATIONS 14:30:48 THAT OSHA MONITORS IN THE WORKPLACE. 14:30:54 THAT DOESN'T SOUND LIKE A CULTURE OF SAFETY. 14:30:55 WE ACKNOWLEDGE THAT WE HAD SERIOUS ISSUES IN 2005 AND 2006. 14:30:59 I'M NOT TALKING ABOUT 2005 AND 2006. 14:31:04 I'M CITING AN OSHA REPORT THAT THERE IS A SYSTEMIC SAFETY 14:31:16 PROBLEM AND OF THOSE 760 CLASSIFIED AS WILLFUL AND EEG 14:31:21 GREEJ JOUS, THAT'S IMPORTANT TO NOTE THAT IS THE WORST VIOLATION 14:31:25 THAT OSHA CAN IDENTIFY. AND IT'S A VIOLATION COMMITTED 14:31:30 WITH PLAIN INDIFFERENCE TO OR INTENTIONAL DISREGARD FOR 14:31:36 EMPLOYEE SAFETY AND HEALTH. 97% OF ALL OF THOSE VIOLATIONS 14:31:39 AT U.S. REFINERIES ON YOUR WATCH WERE AGAINST YOUR COMPANY. 14:31:43 THAT DOESN'T SOUND LIKE A COMPANY THAT, TO USE YOUR WORDS 14:31:48 S. COMMITTED TO SAFE, RELIABLE OPERATIONS AS YOUR NUMBER ONE 14:31:52 PRIORITY. THERE'S A COMPLETE DISCONNECT 14:31:55 BETWEEN YOUR TESTIMONY AND THE REALITY OF THESE OSHA FINDINGS. 14:31:58 DO YOU UNDERSTAND THAT? I UNDERSTAND WHAT YOU'RE 14:32:05 SAYING. SO WE ALSO HAD MR. BARTON 14:32:12 MAKE THE COMMENT ABOUT WHAT HAPPENED AT THE WHITE HOUSE. 14:32:14 WERE YOU THERE AT THE WHITE HOUSE? 14:32:20 I WAS. DO YOU THINK THAT BP WAS 14:32:21 SHAKEN DOWN BY THE OBAMA ADMINISTRATION TO COME UP WITH 14:32:27 THIS $20 BILLION COMPENSATION SNUND. 14:32:28 FUND? WE FORMED A WAY FORWARD AND 14:32:31 TRIED TO WORK TOGETHER TO DEAL WITH THE LEAK, THE RESPONSE TO 14:32:39 THE LEAK, AND TO MAKE A RETURN IN THE GULF COAST TO IT IS PAST 14:32:46 AND THAT'S WHAT WE ARE GOING TO DO. 14:32:48 AND I REALIZE THAT WE SPEAK THE SAME LANGUAGE BUT IT'S NOT 14:32:53 ALWAYS THE SAME LANGUAGE. WHEN WE SPEAK ENGLISH IN THE 14:32:57 UNITED STATES AND ENGLISH IN GREAT BRITAIN. 14:32:59 HERE IN THIS COUNTRY, THE WORD SHAKEN DOWN MEANS SOMEBODY IN A 14:33:04 POSITION OF DISADVANTAGE IS FORCED TO DO SOMETHING AGAINST 14:33:06 THEIR WILL. IS THAT HOW YOU VIEWED THESE 14:33:10 NEGOTIATIONS AT THE WHITE HOUSE YESTERDAY? 14:33:11 AS I SAID, WE CAME TOGETHER TO FIGURE OUT A WAY OF WORKING 14:33:16 TOGETHER TO RESOLVE WHAT IS CLEARLY A VERY, VERY SERIOUS 14:33:21 SITUATION. AND THE REASON YOU CAME 14:33:22 TOGETHER, SIR, IS BECAUSE IT WAS NOT ONLY IN THE BEST INTEREST OF 14:33:26 THE UNITED STATES TAXPAYERS AND THE CITIZENS OF THIS COUNTRY, 14:33:30 IT'S ALSO IN THE BEST INTEREST OF BP TO TRY TO GET THIS PROBLEM 14:33:34 SOLVED SO THAT IT CAN MOVE FORWARD. 14:33:36 ISN'T THAT TRUE? THAT'S UNDOUBTABLY TRUE. 14:33:45 AND WHEN THE RANKING MEMBER REFERRED TO THIS COMPENSATION 14:33:48 FUND, WHICH I APPLAUD AS A POSITIVE STEP FORWARD AS A SLUSH 14:33:55 FUND, I WANT YOU TO KNOW THAT IN THIS COUNTRY THAT IMPLIES A VERY 14:33:59 NEGATIVE CONNOTATION AS SOMETHING ILLEGAL, BELOW THE 14:34:02 SURFACE OF WHAT IS ACCEPTABLE. DID YOU CONSIDER THIS 14:34:05 COMPENSATION FUND FOR PEOPLE WHO HAD LOST THEIR LIVES, LOST THEIR 14:34:10 BUSINESSES, LOST THEIR ENVIRONMENT, LOST THEIR ABILITY 14:34:12 TO EARN -- DID YOU CONSIDER THAT TO BE A SLUSH FUND? 14:34:15 AS WE SAID YESTERDAY, THE FUND IS A SIGNAL OF OUR 14:34:21 COMMITMENT TO DO RIGHT TO ENSURE THAT INDIVIDUALS, FISHERMEN, 14:34:29 CAPTAINS, SMALL HOTEL OWNERS, EVERYONE WHO HAS BEEN IMPACTED 14:34:33 BY THIS IS KEPT WHOLE. THAT IS WHAT I HAVE SAID FROM 14:34:37 THE VERY BEGINNING OF THIS AND THAT IS WHAT WE INTEND TO DO. 14:34:41 AND AS I SAID IN MY TESTIMONY, I HOPE NOW PEOPLE WILL SAY THAT WE 14:34:45 ARE GOOD FOR OUR WORD. AND CAN WE TAKE THAT AS A NO 14:34:50 IN RESPONSE TO MY QUESTION YOU DID NOT TAKE THAT THIS WAS A 14:34:57 SLUSH FUND? I CERTAINLY DID NOT THINK IT 14:34:59 WAS A SLUSH FUND, CONGRESSMAN. THANK YOU. 14:35:04 I'LL YIELD BACK. FIVE MINUTES. 14:35:07 THANK YOU, MR. CHAIRMAN. THANK YOU FOR BEING WITH US, MR. 14:35:11 HAYWARD. EARLIER IN OUR CONFERENCE, 14:35:20 RESPONDED, IF I WROTE THIS DOWN CORRECTLY, EVERYTHING WE DO IS 14:35:22 SUBJECT TO REGULATORY OVERSIGHT. AND WHO IS THAT? 14:35:24 WHEN WE'RE TALKING ABOUT REGULATORY OVERSIGHT? 14:35:26 THE REGULATORY OVERSIGHT IS THE DEEP WATER DRILLING 14:35:32 OPERATIONS IS THE MINERAL MANAGEMENT SERVICES. 14:35:36 BUT HERE WITHIN THE FEDERAL GOVERNMENT, WHO WOULD BE OUT ON 14:35:40 THE RIG FOR THAT OVERSIGHT? IT IS THE INSPECTORS OF THE 14:35:45 MINERAL MANAGEMENT SERVICES, I BELIEVE. 14:35:47 AND I'M SURE THE RECORDS ARE OUT THERE, BUT WHEN WAS THE LAST 14:35:50 TIME THAT THE MMS WOULD HAVE BEEN ON THE RIG? 14:35:53 I'M AFRAID I'M NOT AWARE OF THAT DATE, BUT I'M RELATIVELY 14:35:58 SURE THAT IT WAS SHORTLY BEFORE THIS INCIDENT. 14:36:00 DO YOU KNOW OF ANY CITATIONS ISSUED DURING THAT TIME THAT 14:36:03 THEY WERE OUT THERE ON THE SFLIG. 14:36:08 I'M NOT AWARE OF ANY CITATIONS. 14:36:11 LET ME ASK THIS QUESTION. I KNOW I'VE TALKED TO QUITE A 14:36:13 FEW MEMBERS FROM THE GULF COAST AND ALSO FROM NEWS REPORTS AND 14:36:18 THERE'S BEEN MANY, MANY CASES WHERE THEY ARE TALKING ABOUT IT 14:36:22 TAKING FIVE DAYS FOR A TURN AROUND TIME AND ONCE IT 14:36:24 STARTS -- AND I CAME FROM LOCAL GOVERNMENT. 14:36:26 AND SO THERE'S A CHAIN OF COMMAND OUT THERE FOR LOCAL 14:36:30 GOVERNMENT, STATE GOVERNMENT, AND THEY ARE SAYING OVER AND 14:36:33 OVER AND OVER, IT TAKES ABOUT FIVE DAYS. 14:36:36 A LOT OF TIMES THEY SAY WE HAVE TO GO TALK TO BP. 14:36:39 I WAS JUST WONDERING, BECAUSE KNOWING THAT TIME IS OF THE 14:36:44 ESSENCE, OF ALL OF THE CRITICAL MATTERS THAT ARE HAPPENING, WHY 14:36:49 IS IT THAT THIS TURN AROUND TIME TAKES SO LONG? 14:36:52 I'M AFRAID I CAN'T ANSWER THAT QUESTION. 14:36:54 I DON'T KNOW. CAN YOU GET THAT INFORMATION 14:36:56 FOR US? WE CAN, YES, CERTAINLY. 14:37:01 THE NEXT QUESTION IS PROBABLY GOING TO HAVE THE SAME RESPONSE. 14:37:03 BUT THE QUESTION IS, THEN, WHO SET THE PROCEDURE UP THIS WAY 14:37:06 THAT WE WOULD HAVE A SITUATION WHERE WE TAKE A FIVE-DAY TURN 14:37:09 AROUND TIME? DO YOU HAVE ANY KNOWLEDGE OF 14:37:12 THAT? I'M AFRAID I DON'T KNOW. 14:37:30 PROBLEMS THAT ARISE THAT YOU CAN GET THINGS TURNED AROUND 14:37:36 PRETTY QUICKLY? MY PRIMARY COMMUNICATION HAS 14:37:43 BEEN WITH THAD ALLEN. HOW OFTEN WOULD THAT BE? 14:37:46 TYPICALLY ONCE A DAY OR OFTEN MORE THAN ONCE A DAY. 14:37:57 AND AGAIN, AS WITH THE LADY FROM TENNESSEE, WE HAVE 14:38:03 FRUSTRATION WITH GETTING RESPONSES BUT WITH THAT, WE 14:38:06 YIELD BACK. EIGHT MINUTES, PLEASE. 14:38:08 THANK YOU SO MUCH, MR. CHAIRMAN. 14:38:10 MR. HAYWARD, IN YOUR INITIAL TESTIMONY YOU TESTIFIED THAT BP 14:38:19 HAS DRILLED HUNDREDS OF WELLS AROUND THE WORLD. 14:38:21 HOW MANY ARE DEEP WATER WELLS? I DON'T KNOW THE PRECISE 14:38:26 NUMBERS BUT WE DRILL A LOT OF DEEP WATER WELLS IN VARIOUS 14:38:29 PARTS OF THE WORLD. YOU DON'T KNOW HOW MANY. 14:38:30 DO YOU THINK THAT BP'S WELLS, IRRESPECTIVE OF WHERE THEY ARE 14:38:35 DRILLED, SHOULD BE DRILLED AT THE HIGHEST INDUSTRY STANDARDS? 14:38:38 I BELIEVE THAT'S WHAT WE TRY AND DO. 14:38:41 SO YOUR ANSWER WOULD BE YES? UH-HUH. 14:38:44 OKAY. AND AS THIS WELL WAS BEING 14:38:46 DRILLED, FROM YOU INFORMED AS CEO OF THE COMPANY OF THE 14:38:53 P PROGRESS OF THE WELL? 14:38:56 I WAS NOT. YOU WERE NOT. 14:38:57 BEFORE I CONTINUE, I KNOW YOU'VE HAD DIFFICULTY ANSWERING SOME OF 14:39:00 THE TECHNICAL QUESTIONS THAT MEMBERS HAVE ASKED YOU. 14:39:02 SO I KNOW THAT YOU BROUGHT A TECHNICAL EXPERT WITH YOU. 14:39:05 WOULD YOU LIKE US TO SWEAR HIM IN SO HE CAN HELP YOU ANSWER 14:39:08 SOME OF MY TECHNICAL QUESTIONS? I THINK THAT WOULD DEPEND ON 14:39:12 THE QUESTION. ALL RIGHT. 14:39:16 LET'S SEE HOW IT GOES. NOW, MR. HAYWARD, YOU SEE THAT 14:39:17 YOU RECEIVED THE CHAIRMAN'S JUNE 14th LETTER TO YOU WHICH TALKS 14:39:26 ABOUT WELL DESIGN, CENTRALIZER, CEMENT BOND LOG, AND LOCK DOWN 14:39:34 SLEEVE. I WANT TO ASK YOU IN MY 14:39:36 QUESTIONS ABOUT ONE OF THOSE ISSUES, AND THAT'S THE CEMENT 14:39:41 BOND LOG. IF YOU CAN TAKE THAT NOTEBOOK 14:39:46 THAT IS TO YOUR LEFT, OPEN IT UP. 14:39:47 IN THE FRONT FLAP THERE'S A MEMO WHICH WAS WRITTEN FROM BRIAN 14:39:52 MORRELL TO RICHARD MILLER ON WEDNESDAY, APRIL 14th. 14:40:00 AND IT SAYS, THIS HAS BEEN A NIGHTMARE WELL WHICH HAS BEEN 14:40:04 ALL OVER THE PLACE. DID ANYONE INFORM YOU AS CEO OF 14:40:07 THE COMPANY IN APRIL OF THIS YEAR THAT THIS WAS A NIGHTMARE 14:40:10 WELL? THEY DID NOT. 14:40:11 DID YOU SUBSEQUENTLY SEE THIS MEMO? 14:40:14 HAVE YOU SEEN THIS MEMO? I SAW THIS MEMO WHEN IT WAS 14:40:19 RAISED BY YOUR COMMITTEE. AND THAT'S THE FIRST TIME 14:40:22 YOU'VE EVER HEARD OF IT? THAT'S THE FIRST TIME I'VE 14:40:26 HEARD OF IT. IS THAT THE FIRST TIME THAT 14:40:29 YOU HEARD OF IT BEING A NIGHTMARE CEO? 14:40:31 WHEN I FIRST SAW THIS MEMO. LET'S TALK ABOUT THE 14:40:35 CEMENTING JOB. BECAUSE ALL OF THE TESTIMONY 14:40:36 THAT WE'VE HAD IN THIS COMMITTEE, THROUGH OUR HEARINGS, 14:40:39 ALSO IN THE NATURAL RESOURCES COMMITTEE THROUGH THEIR HEARINGS 14:40:46 INDICATES THAT THE CHOICES THAT BP MADE AND ITS SUN CONTRACTORS 14:40:52 IN ORDER TO SAVE MONEY LED TO BLIND FAITH IN A CEMENTING JOB. 14:40:58 FIRST OF ALL, BP CHOOSE A RISKIER WELL DESIGN AND THE 14:41:04 CHAIRMAN, CHAIRMAN WAXMAN TALKED ABOUT THIS FOR A MOMENT. 14:41:06 THE BEST PRACTICE WOULD HAVE BEEN TO USE A LINER AND A TIE 14:41:12 BACK WHICH PROVIDES FOUR BARRIERS TO PREVENT THE FLOW OF 14:41:15 DANGEROUS HYDROCARBONS TO THE WELL HEAD. 14:41:18 INSTEAD, BP DESIGNED A STRONG STRING APPROACH THAT HAS ONLY 14:41:23 TWO BARRIERS. AN INTERNAL DOCUMENT INDICATED 14:41:27 THAT THIS APPROACH WAS NOT RECOMMENDED BECAUSE "CEMENTING 14:41:31 SIMULATIONS INDICATE IT'S UNLIKELY TO BE A SUCCESSFUL 14:41:35 CEMENT JOB." AND YOU CAN LOOK AT TAB SIX OF 14:41:38 THE NOTEBOOK THAT YOU HAVE IN FRONT OF YOU TO SEE THAT, MR. 14:41:43 HAYWARD. IT SAYS, CEMENT SIMULATIONS 14:41:46 INDICATE IT IS UNLIKELY TO BE A SUCCESSFUL CEMENT JOB DUE TO 14:41:51 FORMULATION BREAKDOWN. THIS IS AN INTERNAL BP 14:41:54 CONFIDENTIAL DOCUMENT FROM MID-APRIL. 14:41:56 HAVE YOU SEEN THIS DOCUMENT BEFORE? 14:41:58 I SAW IT AS A CONSEQUENCE OF THE LETTERS -- 14:42:02 BUT YOU DID NOT SEE IT AT THE TIME IN. 14:42:04 I DID NOT SEE IT AT THE TIME. BUT THERE WERE BP FOLKS THAT 14:42:07 SAW IT, TO YOUR KNOWLEDGE? THERE WERE CERTAINLY BP 14:42:10 PEOPLE WHO SAW THIS. OKAY. 14:42:14 SECONDLY, THE DOCUMENT SAYS THAT THERE WOULD BE A POTENTIAL NEED 14:42:17 TO VERIFY WITH THE BOND LOG AND REFORM A -- BUT BP CHOOSE A 14:42:25 RISKIER APPROACH. SECONDLY, THE RISKIER 14:42:30 CENTRALIZER OPTION WAS CHOSEN. EXPERTS HAVE TOLD US THAT THE 14:42:33 BEST PRACTICE WOULD HAVE BEEN TO USE 21 SENT TRALIZERS, BUT BP 14:42:38 ONLY USED SIX. IF YOU TAKE A LOOK AT TAB 8, IT 14:42:46 SAYS, ON PAGE 18, IT SAYS DID YOU THIS EVEN THOUGH YOUR 14:42:52 CEMENTER SAID THAT THIS WOULD CREATE A "SEVERE RISK THAT THE 14:42:58 CEMENT JOB WOULD FAIL." IT SAYS, BASED ON -- IT SAYS 14:43:07 THAT IT WOULD BE A SEVERE RISK AND BP OPERATIONS DRILLING 14:43:09 ENGINEER WROTE ABOUT THIS DECISION, WHO CARES, IT'S DONE, 14:43:15 END OF STORY, WILL PROBABLY BE FINE AND GET A GOOD CEMENT JOB. 14:43:19 FROM YOU AWARE OF THAT DOCUMENT AT THE TIME, MR. HAYWARD? 14:43:30 I WAS NOT AWARE OF THAT? WHEN WERE YOU FIRST MADE 14:43:35 AWARE? BY YOUR COMMITTEE. 14:43:37 BUT YOU WOULD NOT DENY THAT BP OR ITS EMPLOYEES WERE NOT 14:43:42 AWARE OF THAT DOCUMENT? THERE WERE PEOPLE WITHIN BP 14:43:46 THAT WERE AWARE OF THAT DOCUMENT. 14:43:48 WOULD YOU SAY THAT IT'S BEST TO SAY END OF STORY, WE'LL 14:43:51 PROBABLY BE FINE AND GET A GOOD CEMENT JOB? 14:43:55 I THINK THAT E-MAIL IS A CAUSE OF CONCERN. 14:43:59 I WOULD THINK SO. I WOULD LIKE TO KNOW THE 14:44:01 CONTEXT OF WHICH IT WAS SENT AND AS I SAID, A NUMBER OF TIMES, IF 14:44:08 THERE WAS COST AHEAD OF SAFETY, I WILL TAKE ACTION. 14:44:10 I UNDERSTAND. LET ME FINISH WITH THE CEMENT 14:44:14 BOND. NOW, YOU WOULD -- BP FAILED TO 14:44:18 PERFORM THE MOST EFFECTIVE TESTS THAT WAS KNOWN TO DETERMINE 14:44:24 WHETHER THE CEMENT WAS PROPERLY SEALED. 14:44:25 AND THAT'S THE CEMENT BOND LOG TEST. 14:44:27 THERE WAS A CONTRACTOR ON BOARD HIRED TO PERFORM THIS TASK BUT 14:44:32 THEY WERE SENT AWAY 11 HOURS PRIOR TO THE EXPLOSION. 14:44:35 THIS TEST WAS DESCRIBED BY THE CHIEF SAFETY OFFICER AS "THE 14:44:41 ONLY TASK THAT CAN REALLY DETERMINE THE ACTUAL 14:44:45 EFFECTIVENESS OF THE BOND BETWEEN THE CEMENT SHEETS. 14:44:48 THE FORMATION AND THE CASING IT SELF." 14:44:51 NOW, THE COMMITTEE HAS CONSULTED AN INDEPENDENT EXPERT WHO SAID 14:44:55 THAT CEMENT BOND LOGS SHOULD ALWAYS BE USED. 14:44:59 ANOTHER EXPERT SAID IT'S UNHEARD OF NOT TO PERFORM THIS TASK. 14:45:04 HE CALLED YOUR DECISION, AND I'M QUOTING, HORRIBLY NEGLIGENT. 14:45:11 SO I WANT TO ASK YOU A QUESTION. DO YOU THINK A CEO OF THIS 14:45:13 COMPANY, IT WAS A MISTAKE NOT TO CONDUCT THE CEMENT BOND LOG 14:45:17 TEST? THAT IS WHAT OUR 14:45:19 INVESTIGATION WILL DETERMINE. SO YOUR ANSWER WOULD BE YES, 14:45:22 IT WAS A MISTAKE, CORRECT? I'M NOT ABLE TO ANSWER YES OR 14:45:28 NO UNTIL THE INVESTIGATION IS COMPLETE. 14:45:30 BECAUSE YOUR LAWYERS TOLD YOU NOT TO OR WHAT? 14:45:33 BECAUSE I WAS NOT INVOLVED. I'M SORRY. 14:45:35 BUT YOU JUST SAID YOU THINK THAT ALL OF THE EVIDENCE SHOW IT 14:45:38 IS WAS A MISTAKE, CORRECT? THAT IS NOT CORRECT. 14:45:41 THAT'S NOT WHAT I SAID. OKAY. 14:45:44 DO YOU THINK IT WAS ALL RIGHT NOT TO CONDUCT IT? 14:45:46 I THINK WE NEED TO COMPLETE THE INVESTIGATION. 14:45:48 OKAY. AND DETERMINE WHETHER RUNNING 14:45:50 A CEMENT BOND LOG OR NOT WOULD HAVE CREATED A MAJOR DIFFERENCE 14:45:54 TO WHAT HAPPENED HERE. OKAY. 14:45:57 LET ME ASK YOU THIS. ARE YOU AWARE OF THE FACT THAT 14:46:02 IT WOULD HAVE COST ABOUT $128,000 AND TAKEN NINE TO 12 14:46:05 HOURS TO COMPLETE THE CEMENT BOND LOG TEST? 14:46:08 I AM AWARE OF THAT FACT, YES. YES. 14:46:14 OKAY. I YIELD BACK. 14:46:17 THANK YOU, MR. CHAIRMAN. THANK YOU. 14:46:19 MR. DOYLE FOR QUESTIONS, PLEASE. THANK YOU, MR. CHAIRMAN. 14:46:22 MR. HAYWARD, IN YOUR TESTIMONY YOU SAY THAT SOME OF THE BEST 14:46:27 MINES AND THE DEEPEST EXPERTISE ARE BEING BROUGHT TO BEAR ON THE 14:46:30 OIL SPILL AND IT'S DIFFICULT TO IMAGINE THE GATHERING OF A 14:46:37 LARGER MORE TECHNICALLY PRO FISH SENT TEAM. 14:46:40 I KNOW THAT'S MEANT TO REASSURE US THAT EVERYTHING IS BEING 14:46:43 DONE. BUT IT MAKES ME WONDER WHO WAS 14:46:46 MAKING THESE KEY DECISIONS BEFORE THE ACCIDENT. 14:46:49 ONE OF THE KEY DECISIONS WAS WHAT TYPE OF TUBE TO INSERT. 14:46:55 THE SECOND DESIGN OFFERS MORE BARRIERS TO UNINTENDED GAS FLOW 14:46:59 AND ON TUESDAY THE OTHER OIL COMPANIES THAT WE TALKED TO TOLD 14:47:02 US THAT THEY WOULD HAVE CHOSEN THAT DESIGN. 14:47:05 LOOKING BACK, THE DECISION THAT BP MADE APPEARS TO HAVE HAD 14:47:09 SERIOUS CONSEQUENCES. MR. HAYWARD, FROM YOU INVOLVED 14:47:12 IN THAT DECISION? I WAS NOT INVOLVED IN THAT 14:47:15 DECISION. WERE YOU AWARE OF THAT 14:47:16 DECISION? I WAS NOT INVOLVED OR AWARE 14:47:18 OF ANY DECISIONS BEING MADE REGARDING THIS WELL WHEN IT WAS 14:47:24 BEING DRILLED. WE ASKED ABOUT YOUR 14:47:28 INSPECTORS. THEY TOLD US IT WAS THE ANDY 14:47:31 ENGLISH AND DOUG SUBTLES, THE CHIEF OPERATING OFFICER. 14:47:36 WAS ANDY ENGLISH INVOLVED IN THIS DECISION? 14:47:39 I CAN'T ANSWER THAT QUESTION. I GENUINELY DON'T KNOW. 14:47:42 I WOULD BE VERY SURPRISED. WHAT ABOUT DOUG SUTTLES. 14:47:47 I WOULD BE VERY SURPRISED THAT THEY WERE INVOLVED IN ANY 14:47:52 DECISION. WE FIND NO RECORD THAT THEY 14:47:54 KNEW ANYTHING ABOUT THIS DECISION. 14:47:56 IN FACT, WE FIND NO EVIDENCE THAT THEY EVER RECEIVED 14:47:58 BRIEFINGS ON THE ACTIVITIES ABOARD THE DEEP WATER HORIZON 14:48:02 BEFORE THE EXPLOSION. THESE DECISIONS ALL SEEM TO HAVE 14:48:06 BEEN DELEGATED TO MUCH LOWER-RANKING OFFICIALS. 14:48:09 WELL, MR. HAYWARD, THEN, WHO WAS THE ONE WHO MADE THE DECISION TO 14:48:12 USE A SINGLE TUBE OF METAL FROM THE TOP OF THE WELL TO THE 14:48:15 BOTTOM? WHO DID MAKE THAT DECISION? 14:48:17 I'M NOT SURE EXACTLY WHO MADE THE DECISION. 14:48:19 IT WOULD HAVE BEEN A DECISION TAKEN BY THE DRILLING 14:48:22 ORGANIZATION IN THE GULF OF MEXICO. 14:48:28 THE TECHNICAL EXPERTS THAT HAVE THE -- 14:48:31 BUT YOU CAN'T TELL THIS COMMITTEE WHO THAT WAS? 14:48:34 I CAN'T SITTING HERE TODAY, I'M AFRAID. 14:48:37 YOU CAN GET THIS INFORMATION TO OUR COMMITTEE? 14:48:39 I THINK IT'S PRETTY AMAZING THAT THIS IS A DECISION THAT HAD 14:48:43 ENORMOUS CONSEQUENCES AND YOU CAN'T EVEN TELL THE COMMITTEE 14:48:45 WHO MADE THE DECISION ON BEHALF OF YOUR COMPANY. 14:48:48 AND THE REASON I'M ASKING YOU THESE QUESTIONS, BECAUSE YOUR 14:48:55 INDUSTRY IS DIFFERENT THAN MANY. YOU'RE NOT THE CEO OF A 14:48:57 DEPARTMENT STORE CHAIN WHERE IT'S FINE TO LEAVE DECISIONS TO 14:48:59 ABOUT RUNNING THE STORE TO BRANCH MANAGERS. 14:49:01 YOU KNOW, IF A DEPARTMENT STORE MIDDLE MANAGER MAKE AS MISTAKE, 14:49:05 THERE'S NO LIFE OR DEATH CONSEQUENCES. 14:49:07 WHAT YOU DO IS DIFFERENT. YOU'RE DRILLING FAR BELOW SEA 14:49:11 LEVEL INTO A REGION THAT'S MORE LIKE OUTER SPACE THAN ANYTHING 14:49:14 ELSE. THE CONSEQUENCES OF THAT 14:49:15 DRILLING ARE HUGE. IF A MISTAKE OR MISJUDGMENT IS 14:49:22 MADE, WORKERS ON THE RIG CAN GET KILLED AND AN ENVIRONMENTAL 14:49:25 CATASTROPHE CAN BE UNLEASHED THE BEST MINDS IN THE SENIOR 14:49:29 LEADERSHIP OF A COMPANY SHOULD BE PAYING CLOSE ATTENTION TO 14:49:31 THOSE RISKS BUT IT DIDN'T HAPPEN HERE AND NOW WE'RE ALL PAYING 14:49:35 THE CONSEQUENCES BECAUSE THOSE OF YOU AT THE TOP DON'T SEEM TO 14:49:38 HAVE A CLUE ABOUT WHAT WAS GOING ON IN THIS RIG. 14:49:41 I'M SITTING HERE THINKING, I COULD BE A CEO OF AN OIL 14:49:48 COMPANY. I HEAR IT PAYS BETTER THAN BEING 14:49:49 A MEMBER OF CONGRESS BECAUSE I'VE WATCHED YOU, IN FRONT OF 14:49:51 THIS COMMITTEE, NOT GIVE US MUCH INFORMATION ON ANYTHING HERE. 14:49:53 I WANT TO ASK YOU ONE LAST QUESTION WHILE I HAVE SOME TIME. 14:49:58 YOU TOLD US THAT YOU'RE DOING EVERYTHING POSSIBLE TO STOP THIS 14:50:04 WELL FROM LEAKING. BUT IT SEEMS TO ME THAT WHAT 14:50:05 WE'RE LEFT WITH NOW IS WAITING FOR THIS RELIEF WELL TO BE 14:50:09 DRILLED AND THAT'S GOING TO HAPPEN SOMETIME IN AUGUST. 14:50:15 SO TODAY IS JUNE 17th. BACK IN ONE TOOK OVER NINE MONTHS TO CAP 14:50:23 AFTER DRILLING SEVERAL RELIEF WELLS. 14:50:25 THAT WELL WAS ONLY 160 FEET DOWN INTO THE OCEAN WHILE THE McCONDO 14:50:31 ZELL WELL WAS OVER 5,000 FEET BENEATH THE SURFACE OF THE 14:50:35 OCEAN. ARE WE AT THE POINT NOW WHERE BP 14:50:38 IS DOING NOTHING AND UNTIL THE RELIEF WELL GETS DOWN THERE OR 14:50:42 ARE YOU TRYING SOME DIFFERENT TECHNOLOGY OR SOME OTHER WAY TO 14:50:45 KILL THE WELL BEFORE YOU GET A RELIEF WELL DOWN THERE? 14:50:49 IS THERE ANYTHING ELSE ON THE HORIZON. 14:50:51 I'M AFRAID THERE ARE NO OPTIONS TO KILL THIS WELL OTHER 14:50:54 THAN A WELL FROM THE BASE OF THE RESERVOIR. 14:50:57 AS YOU ARE ALL AWARE, WE TRIED TO KILL THE WELL FROM THE TOP 14:51:01 USING A TOP KILL OPERATION AND THE PRESSURES IN THE WELL ARE 14:51:04 SUCH THAT IT'S NOT POSSIBLE TO DO THAT. 14:51:07 SO WE HAVE TO RELY ON THE RELIEF WELLS. 14:51:09 IN THE INTERIM, WE ARE CONTINUING TO CONTAIN AS MUCH OF 14:51:13 THE OIL AS WE CAN AND THAT OPERATION IS CURRENTLY 14:51:16 CONCERNING 20,000 BARRELS A DAY. BY THE END OF THIS MONTH WE'LL 14:51:20 HAVE THE ABILITY TO CONTAIN BETWEEN 40,000 AND 50,000 14:51:23 BARRELS A DAY AND BY THE MIDDLE OF JEWEL, BETWEEN 60 AND 0,000 14:51:29 BARRELS A DAY. I'LL ASK YOU A QUESTION I 14:51:31 ASKED OTHER OIL EXECUTIVES ON TUESDAY. 14:51:34 WHY WOULDN'T YOU JUST DRILL RELIEF WELLS WHEN YOU DRILL THE 14:51:37 MAIN WELL SOFUL SOMETHING LIKE THIS HAPPENED, INSTEAD OF US 14:51:40 WAITING TWO, THREE MONTHS AND WATCHING MILLIONS OF BARRELS OF 14:51:43 OIL COME INTO THE OCEAN DESTROYING OUR ECOSYSTEM AND OUR 14:51:46 WAY OF LIFE IN THE GULF COAST, THAT YOU COULD KILL THAT WELL IN 14:51:49 A SHORT PERIOD OF TIME? I UNDERSTAND THE EXTRA RELIEF 14:51:53 WELL WOULD COST YOU A LITTLE BIT MORE MONEY BUT IT SEEMS TO ME IN 14:51:56 THIS CASE IT WOULD HAVE SAVED YOU BILLIONS OF DOLLARS. 14:51:59 WHAT ARE YOUR THOUGHTS ON DRILLING RELIEF WELLS ALONG WITH 14:52:03 MAIN WELLS? I THINK WE WOULD NEED TO LOOK 14:52:05 AT ALL OF THE OPTIONS AVAILABLE TO US GOING FORWARD WITH RESPECT 14:52:09 TO DEEP WATER EXPLORATION. MY TIME'S UP. 14:52:13 THANK YOU. QUESTIONS, PLEASE. 14:52:19 THANK YOU, MR. CHAIRMAN. I WANTED TO FOCUS ON THE 14:52:24 MIND-SET OF BP WHEN IT COMES TO ITS WORKERS. 14:52:28 YOU SAID IN YOUR OPENING STATEMENT THAT YOU WERE 14:52:32 PERSONALLY DEVASTATED. YOU ATTENDED A MEMORIAL SERVICE 14:52:35 FOR THOSE MEN. IT WAS A SHATTERING MOMENT. 14:52:37 I WANT TO OFFER MY SINCERE CONDOLENCES TO THEIR FRIENDS AND 14:52:42 FAMILIES. I CAN ONLY IMAGINE THEIR SORROW. 14:52:44 PROBABLY NOT AS DEVASTATED AS THE WIDOWS THAT TESTIFIED BEFORE 14:52:48 OUR COMMITTEE, AND I ASKED THEM WHAT ABOUT BP. 14:52:55 WHAT KIND OF CONTACT HAVE YOU HAD WITH BP SINCE THE INCIDENT, 14:53:01 LETTERS, PHONE CALLS, VISITS. AND NATALIE ROSCHTOW SAID TWO BP 14:53:08 ATTENDED SHANE'S SERVICES AND THEY NEVER EXTENDED A HAPPENED, 14:53:11 A HUG IT, NEVER EXTENDSED A WE'RE SORRY. 14:53:14 THEIR CONDOLENCES. THE ONLY WORDS THAT CAME OUT OF 14:53:18 THEIR MOUTH WAS WHERE THEY WERE TO BE SEATED AND I NEVER SAW 14:53:20 THEM AFTER THAT. I ASKED, WHAT ABOUT YOU, 14:53:23 MRS. KEMP? TWO BP CAME TO WYATT'S SERVICES 14:53:27 AND ONE EXTENDED HIS HAND. I SHOOK. 14:53:31 HE TOLD ME HE WAS VERY SORRY FOR MY LOSS. 14:53:34 HE ASKED IF HE HUG ME. HE DID. 14:53:36 THE OTHER GENTLEMAN EXTENDED HIS HAND, TOLD ME WHO HE WAS AND 14:53:40 THEY SENT TWO PLANTS TO THE SERVICE. 14:53:41 AND THAT IS THE EXTENT OF MY CONVERSATION OR ANY DEALINGS 14:53:45 WITH BP. THAT'S IT. 14:53:47 DO YOU FEEL THAT YOU OWE SOMETHING MORE TO THOSE WOMEN 14:53:52 AND TO -- JUST IN TERMS OF EXPRESSING SOMETHING AND SOME 14:53:58 AND MORE? AS I SAID, I'M DEB STATED BY 14:54:01 THE ACCIDENT. ABSOLUTELY DEVASTATED. 14:54:05 AND I FEEL GREAT SORROW FOR THE PEOPLE WHO HAVE BEEN IMPACTED BY 14:54:09 IT. WELL, THEY HAVEN'T HEARD 14:54:10 ANYTHING -- THE PEOPLE WHO WERE KILLED IN 14:54:15 THE ACCIDENT WERE NOT BP EMPLOYEES. 14:54:17 THEY'RE EMPLOYEES OF TRANSOCEAN, ANOTHER CONTRACTOR. 14:54:20 AND BOTH OF THEM MADE IT VERY CLEAR THAT THEY WANTED TO DEAL 14:54:25 WITH THE FAMILIES. WE HAVE PROVIDE SUPPORT TO BOTH 14:54:29 TRANSOCEAN AND -- I GUESS I WAS TALKING TO YOU 14:54:31 AS A HUMAN BEING. WE HAVE MADE IT CLEAR THAT WE 14:54:34 WILL PROVIDE ALL AND EVERY NEED FOR THE FAMILIES, BUT -- 14:54:39 LET ME ASK ANOTHER QUESTION. THERE WERE BP PERSONNEL ON THE 14:54:44 RIG, AND WE READ THAT OIL WORKERS FROM THE RIG WERE HELD 14:54:48 IN ZOOE SEE COLLUSION ON THE OPEN WATER FOR UP TO TWO DAYS 14:54:51 AFTER THE APRIL 20 EXPLOSION WHILE ATTORNEYS ATTEMPTED TO 14:54:54 CONVINCE THEM TO SIGN LEGAL DOCUMENTS STATING THAT THEY WERE 14:54:58 UNHARMED BY THE INCIDENT. THE MEN CLAIMED AN THAT THEY 14:55:02 WERE FORBIDDEN FROM HAVING ANY CONTACT WITH CONCERNED LOVED 14:55:05 ONES DURING THAT TIME AND WERE TOLD THAT THEY WOULD NOT BE ABLE 14:55:07 TO GO HOME UNTIL THEY SIGNED THE DOCUMENTS THEY WERE PRESENTED 14:55:09 WITH. AFTER BEING AWAKE FOR 50 14:55:14 HARROWING HOURS, STEPHEN DAVIS CAVED IN AND SIGNED THE PAPERS. 14:55:17 HE SAID MOST OF THE OTHERS DID, AS WELL. 14:55:21 DO YOU THINK THIS IS AN APPROPRIATE WAY TO TREAT PEOPLE 14:55:26 THAT EXPERIENCE THAT, AND SINCE YOUR EXECUTIVES, YOU HAD PEOPLE 14:55:31 ON THE RIG, WHAT WAS THEIR FEELING ABOUT THAT? 14:55:33 WHAT IS YOUR FEELING ABOUT THAT? I THINK IT'S INAPPROPRIATE 14:55:36 AND IT WAS NOTHING TO DO WITH BP. 14:55:39 IF. I SEE. 14:55:40 AND BP HAD NO COMMENT ON IT AND HAD NO OPPORTUNITY? 14:55:45 I MEAN, DID THE COMPANY KNOW ABOUT IT? 14:55:47 WAS THERE ANY -- I DON'T BELIEVE WE WERE AWARE 14:55:51 IT WAS TAKING PLACE, BUT IT WAS CERTAINLY NOTHING TO DO WITH BP. 14:55:54 WELL, I DID MENTION DURING MY OPENING STATEMENT THIS DOCUMENT 14:55:59 THAT BASICALLY SAYS SUCH VOLUNTARY EFFORT SHALL BE AT MY 14:56:02 OWN RISK THAT PEOPLE WERE MADE TO SIGN. 14:56:07 AND THERE WERE TWO COURT APPEARANCES THAT WERE NEEDED TO 14:56:12 FINALLY GET BP TO TAKE RESPONSIBILITY, BUT WHAT I 14:56:16 UNDERSTAND IS THAT BP CONTINUED TO FAIL TO PROVIDE ADEQUATE 14:56:20 PROTECTIVE GEAR TO THE FISHERMEN AND ON MAY 16th, OSHA ISSUED A 14:56:27 DETAILED DIRECTIVE ON THE TRAINING REQUIREMENT FOR 14:56:29 SPECIFIC TASKS TO RESPONDERS AND STATE THAT HAD OWED SHAH HAD 14:56:33 OFFICIALS MONITORING THE TRAINING AND OBSERVING THE 14:56:36 CLEAN-UP BUT ACCORDING TO TESTIMONY WE HEARD NUR 14:56:41 LOUISIANA, STILL BP FAILED TO PROVIDE RESPIRATORS TO THE 14:56:44 WORKERS EXPOSED TO THE CRUDE OIL AND THE WORKERS EXPERIENCED 14:56:47 HEALTH IMPACTS. THE WORKERS WERE AFRAID TO SPEAK 14:56:51 UP DUE TO POTENTIAL TO LOSE THEIR JOBS. 14:56:53 THOSE FISHERMEN HON ATTEMPTED TO WEAR RIS PIR RATE FORCES WHILE 14:56:58 WORK WERE THREATENED TO BE FIRED BY BP DUE TO THE WORKERS USING 14:57:04 THE RIS PER RATE TORS. ARE YOU AWARE OF THAT. 14:57:06 I'M NOT AWARE THAT. WE'RE WORKING TO ENSURE THAT 14:57:10 ANYONE WORKING ON THE RESPONSE IS APPROPRIATELY PROVIDE WITH 14:57:13 WHATEVER SAFETY EQUIPMENT IS REQUIRED. 14:57:15 ENDEAVORING TO PROVIDE? ARE THE WORKERS CURRENTLY 14:57:19 PROVIDED WITH WHAT THEY NEED? ABSOLUTELY. 14:57:26 IN EVERY CASE, WE'RE TRYING TO MAKE CERTAIN -- 14:57:28 AGAIN, YOU'RE TRYING TO MAKE CERTAIN BUT IS ALL THE EQUIPMENT 14:57:31 THERE, AND ARE ALL THESE WORKERS PROTECTED? 14:57:34 TO MY KNOWLEDGE, YES. THANK YOU. 14:57:36 I YIELD BACK. THANK YOU, NEXT TURN TO 14:57:40 MR. ROSS FOR QUESTIONS, PLEASE. THANK YOU, MR. CHAIRMAN, AND 14:57:47 MR. HAYWARD, SINCE MY OPENING STATEMENT, UP TO 416,666 GALLONS 14:57:55 OF OIL HAVE LEAKED INTO THE GULF. 14:57:58 THAT WAS ABOUT FOUR HOURS AGO. IN MY OPENING STATEMENT FOUR 14:58:04 HOURS AGO I ASKED YOU TO PROVIDE US TO BE OPEN WITH US, AND 14:58:08 HONEST WITH US IN YOUR RESPONSES AND INSTEAD, IT SEEMS AS THOUGH 14:58:13 WE'RE GETTING STATEMENTS, MEMORIZED BY YOU AND PROVIDED BY 14:58:16 YOUR LEGAL COUNSEL. I DON'T KNOW IF BP QUITE 14:58:22 UNDERSTANDS HOW ANGRY THE AMERICAN PEOPLE AND THE WORLD IS 14:58:26 AT THEM. I CAN TELL YOU IT'S RARE THAT 14:58:31 YOU SEE DEMOCRATS AND REPUBLICANS ON THIS PANEL 14:58:33 AGREEING WITH ONE ANOTHER. AND YET, IT'S BEEN PRETTY 14:58:37 CONSISTENT TODAY WITH A FEW MAJOR EXCEPTIONS THE LEVEL OF 14:58:45 DISCONTENT AND ANGER AND FRUSTRATION AT BP.
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?
HOUSE ENERGY HEARING ON OIL SPILL 1300 -1400
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 13:00:00 REX TILLERSON: BEEN IN DEEP WATER, INCLUDING 35 IN THE GULF OF MEXICO. 13:00:02 CAN YOU DISCUSS WHAT MEASURES YOUR COMPANY HAS TAKEN THAT 13:00:04 RESULTED IN NEARLY 8,000 WELLS BEING DRILLED OVER THE PAST 13:00:09 DECADE WITHOUT A BLOWOUT? I MENTIONED BROADLY IN TERMS 13:00:13 IN MY OPENING STATEMENT THAT WHAT WE KNOW IS IF YOU DESIGN 13:00:17 THE WELL PROPERLY, AND THERE ARE GOOD RECOMMENDED STANDARDS AND 13:00:21 PRACTICES THAT ARE PUBLISHED, IF YOU DEVELOP GOOD OPERATING 13:00:24 PROCEDURES, YOU TRAIN THE PEOPLE, YOU CONDUCT DRILLS AND 13:00:27 YOU USE MULTIPLE LAYERS OF REDUNDANCY, AND THAT'S NOT JUST 13:00:31 REDUNDANCY IN EQUIPMENT, IT'S REDUNDANCY IN PEOPLE. 13:00:34 EYES AND PEOPLE THAT ARE LOOKING AT THIS WELL AS IT'S BEING 13:00:38 DRILLED SO WHEN YOU'RE SEEING CERTAIN THINGS OCCUR IN THE WELL 13:00:41 THAT EITHER YOU DON'T ANTICIPATE OR THEY'RE TELLING YOU THAT THE 13:00:43 WELL IS NOT GOING ACCORDING TO PLAN THAT YOU THEN ADJUST AND 13:00:48 MANAGE THE CHANGE. AND A PART OF OUR SYSTEM IS A 13:00:52 VERY SPECIFIC MANAGEMENT OF CHANGE PROCESS, THAT WHEN 13:00:55 SOMETHING IS NOT GOING TO PLAN, THERE IS A PROCESS BY WHICH YOU 13:00:58 MUST GO THROUGH TO DEAL WITH THAT CHANGE, AND THAT INCLUDES 13:01:01 INVOLVING PEER REVIEWS AND MULTIPLE LAYERS OF PEOPLE 13:01:04 LOOKING AT THAT TO ENSURE THAT WE REALLY ARE ABOUT TO DO THE 13:01:08 CORRECT THING TO MAINTAIN THE WELL CONTROL AND THE WELL 13:01:13 INTEGRITY. DURING HURRICANE KATRINA OR 13:01:17 R RITA, DID ANYBODY EXPERIENCE ANY 13:01:20 PROBLEMS? WE WERE EXTENSIVELY IMPACTED 13:01:23 DURING THE HURRICANES, AND, IN FACT, LEARNED A GREAT DEAL FROM 13:01:28 THOSE HURRICANES AND HAVE INCORPORATED THOSE LEARNINGS 13:01:32 INTO OUR RESPONSE AND OTHER CAPABILITY. 13:01:35 AS REGARDS LEAKING, ANY SPILLS? 13:01:38 THERE WERE IMPACTS FROM TOP OF PLATFORMS, SO YES. 13:01:48 OKAY. THIS IS TO EVERYBODY. 13:01:50 CAN EACH OF YOU GO INTO THE NEGATIVE IMPACTS OF DEEP WATER 13:01:54 MORATORIUM ON U.S. ENERGY PRODUCTION AND REDUCTION ENERGY 13:01:57 SECURITY? HOW WILL IT AFFECT ENERGY 13:01:59 EXPLORATION IN THE OUTER CONTINENT SHELL? 13:02:03 WHERE WILL YOUR RIGS GO? COULD IT BE FOREIGN WATERS, AND 13:02:08 ALSO COULD YOU EXPLAIN HOW WE'RE GOING TO NEED OIL FOR DECADES TO 13:02:12 COME EVEN THOUGH WE'RE EXPLORING OTHER TECHNOLOGIES OF ENERGY? 13:02:18 I THINK THERE IS A LOT IN THAT QUESTION, OF COURSE, BUT 13:02:23 THE FACT THAT WE'RE GOING TO NEED OIL FOR DECADES TO COME IS 13:02:26 PROBABLY THE BEST PLACE TO START. 13:02:29 AND IT'S SIMPLY THE SCALE AND THE SIZE AND THE AFFORD ABILITY, 13:02:32 THE ENERGY SYSTEM OVERALL AND UNDERSTANDING WHAT TECHNOLOGY, 13:02:35 WHAT INVESTMENTS, WHAT GOVERNMENT POLICY AND OTHER 13:02:38 ELEMENTS ARE REQUIRED TO SHIFT THAT OVER TIME. 13:02:40 YOU LOOK AT THAT ASK YOU UNDERSTAND THE ELEMENTS OF THAT 13:02:43 AND YOU KNOW IT WILL BE DECADES WE'LL BE USING OIL AND GAS. 13:02:47 I THINK WE'VE ADDRESSED TO SOME DEGREE THE ECONOMIC IMPACTS AND 13:02:52 WHAT WILL HAPPEN TO THE RIGS, BUT CLEARLY THESE ARE BIG, 13:02:54 EXPENSIVE PIECES OF EQUIPMENT. EACH ONE, YOU KNOW, PROBABLY HAS 13:02:59 AN EMPLOYMENT SURROUNDING EACH, ONE OF THESE DEEP WATER RIGS 13:03:04 THAT COULD BE UP TO 1,000 PEOPLE. 13:03:06 THAT EQUIPMENT NEEDS TO FIND A HOME THAT'S WORKING AND 13:03:09 GENERATING REVENUE. THAT'S WHAT THAT PIECE OF 13:03:10 EQUIPMENT WILL DO AS SOON AS THEY CAN WORK THAT OUT. 13:03:13 ANYBODY ELSE? MR. MULVA, IN YOUR TESTIMONY YOU 13:03:25 STATE THAT THE BUSINESS OF OFFSHORE EXPLORATION WILL AND 13:03:29 MUST CONTINUE AND THAT WE CAN DO IT SAFELY AND RESPONSIBLY. 13:03:31 CAN YOU ELABORATE ON THAT? I BELIEVE THE INDUSTRY HAS 13:03:35 PROVEN THAT IT CAN BE DONE SAFELY AND RELIABLY FROM THE 13:03:39 RESPONSES TO QUESTIONS THIS MORNING. 13:03:46 I BELIEVE THAT THE TRAGEDY THAT'S TAKEN PLACE, THERE ARE 13:03:51 CERTAIN QUESTIONS TO BE LEARNED AND MOST OF US SITTING HERE 13:03:53 TODAY WOULD HAVE, BY OUR PRACTICES AND POLICIES, WOULD 13:03:56 HAVE DRILLED THE WELL AND HANDLED IT DIFFERENTLY. 13:04:00 IF WE LOOK AT WHAT THIS MEANS FOR NATURAL RESOURCES, THESE ARE 13:04:05 INDIGENOUS RESOURCES FOR OUR COUNTRY. 13:04:07 IT'S VERY IMPORTANT FOR ENERGY SECURITY THAT WE DEVELOP OUR OWN 13:04:11 RESOURCES. WE CAN DO THESE IN A WAY SAFELY 13:04:15 AND ENVIRONMENTALLY AND IN A RESPONSIBLE WAY. 13:04:17 OBVIOUSLY, THROUGH THE INCIDENT WE'VE LEARNED THAT RESPONSE TO 13:04:20 AN INCIDENT LIKE THIS IS NOT ADEQUATE. 13:04:22 WE'LL HAVE TO MAKE THE CHANGES TO DO SO APPROPRIATELY, BUT 13:04:26 DEVELOPING OUR OWN INDIGENOUS RESOURCES ARE IMPORTANT BECAUSE 13:04:30 IT GIVES US ENERGY SECURITY, PROVIDES INVESTMENT AND IT 13:04:35 PROVIDES JOBS AND BRINGS NATURAL RESOURCES TO THE STATES, 13:04:38 COMMUNITIES AND FEDERAL GOVERNMENT. 13:04:39 THANKS VERY MUCH. I YIELD BACK. 13:04:41 GENTLEMEN, THE TIME HAS EXPIRED. 13:04:43 THE CHAIR RECOGNIZES THE GENTLEMAN FROM TEXAS, MR. GREEN. 13:04:46 THANK YOU, MR. CHAIRMAN, AND FOLLOWING UP A SUBSTANTIAL LINE 13:04:51 OF QUESTIONING, I HEARD THE ANALOGY THAT NO ONE WOULD FLY AN 13:04:56 AIRPLANE IF WE FLEW AN AIRPLANE LIKE WE DRILL WELLS. 13:05:02 I'D SAY IT'S THE REVERSE. AFTER 9/11, WE DIDN'T SHUT DOWN 13:05:07 SIX MONTHS FLYING AIRPLANES TO FIND OUT WHAT HAPPENED. 13:05:10 EVEN WHEN THERE IS A TERRIBLE AIRPLANE CRASH AND A TRAGEDY, WE 13:05:13 INVESTIGATE, WE COME UP WITH FINDINGS AND FIX IT, AND THAT'S 13:05:16 WHAT I'M HOPING WE'LL BE ABLE TO DO. 13:05:18 I GUESS MY FRUSTRATION, COMING FROM AN OIL AND GAS AREA, IS 13:05:21 THAT ANY TIME WE HAVE A TRAGEDY LIKE THIS IN THE ENERGY 13:05:26 INDUSTRY, IT HURTS AREAS WHERE I COME FROM. 13:05:29 I HAVE LITERALLY THOUSANDS OF CONSTITUENTS WHO WORK IN THE 13:05:32 ENERGY INDUSTRY, OIL AND GAS, I HAVE REFINERIES, I HAVE CHEMICAL 13:05:35 PLANTS. WE STILL PRODUCE IN OUR AREA, 13:05:37 PLUS I HAVE A LOT OF CONSTITUENTS WHO WORK OFFSHORE. 13:05:41 SO EVERY TIME A SHORT-CIRCUIT DECISION IS MADE, YOU NOT ONLY 13:05:48 IMPACT THE EMPLOYEES AND THEIR FAMILIES, YOU IMPACT THE WHOLE 13:05:53 INDUSTRY, AND THAT'S WHAT'S FRUSTRATING SITTING HERE TODAY. 13:05:56 ONE OF THE QUESTIONS, AND HAVING BEEN TO NORWAY, AND I KNOW WHAT 13:06:00 THE CHAIRMAN COMMITTEE THERE AND THE STANDARDS THEY HAVE, I THINK 13:06:03 THE LAST LEASING BID OPENING IN THE GULF OF MEXICO STAT OIL FROM 13:06:08 NORWAY, ACTUALLY, WAS THE BIGGEST BIDDER ON THE GULF OF 13:06:12 MEXICO. I'VE ASKED OVER THE YEARS THE 13:06:14 DIFFERENCE IN PRODUCTION, PARTICULARLY A NORWEGIAN 13:06:17 COMPANY, AS COMPARED TO NORWAY OFF THEIR SHORE. 13:06:20 THAT LEADS UP TO A QUESTION OF SHOULD WE ENCOURAGE THE 13:06:24 DEPARTMENT OF INTERIOR MINERALS MANAGEMENT TO ACTUALLY REGULATE 13:06:31 IN USING APIs CEMENI REQUIREMENTS? 13:06:44 IT'S VOLUNTARY. IS THAT SOMETHING WE SHOULD DO? 13:06:48 ALTHOUGH THE CEMENI IS ONE OF THE PROBLEMS WE HAVE HERE AMONG 13:06:52 THOSE WHO SPENT TIME LOOKING AT IT. 13:06:54 JUST ANSWERING THAT QUESTION, SHOULD WE ACTUALLY MAKE THAT A 13:06:57 REGULATORY REQUIREMENT WITH THE A 13:07:02 API, DONE AS A VOLUNTARY? CONGRESSMAN GREEN, I 13:07:07 RESPONDED EARLIER, THE SHORT ANSWER TO THAT QUESTION. 13:07:09 I THINK THE CHALLENGE IS CERTAINLY THOSE STANDARDS, I 13:07:13 THINK, HAVE BEEN WELL DESIGNED AND THEY HAVE ALL THE INDUSTRY 13:07:17 INPUT AROUND BEING A BEST PRACTICE. 13:07:19 IT COULD BE MADE A REGULATORY REQUIREMENT. 13:07:21 I THINK THE THING THAT EVERYONE NEEDS TO APPRECIATE IS IN 13:07:26 EXPLORATION DRILLING IN PARTICULAR AND IN CERTAIN 13:07:29 SITUATIONS, YOU WANT TO BE ABLE TO FORMULATE THAT CEMENT SO THAT 13:07:33 IT IS FIT FOR THE PURPOSE THAT YOU'RE USING IT. 13:07:36 I THINK AS LONG AS THE REGULATIONS WERE WRITTEN TO 13:07:39 ACCOMMODATE THE FACT THAT YOU WANT TO HAVE THE BEST CEMENTING 13:07:41 INTEGRITY YOU CAN HAVE IN THAT WELL SO IT SERVES ITS PURPOSE, 13:07:45 AND IF CONDITIONS CHANGE, THERE IS NOT AN OVERLY ONEROUS 13:07:49 PROCEDURE BY WHICH YOU CAN HAVE A FORMULATION THAT MIGHT HAVE 13:07:51 MOVED OUTSIDE OF THAT REGULATION BECAUSE NEW CAPABILITIES HAVE 13:07:56 BEEN DEVELOPED. SO I THINK THAT'S -- THAT WOULD 13:07:58 BE THE ONLY CONCERN I WOULD HAVE AROUND IT. 13:08:00 WELL, AND MY CONCERN IS WE HAVE A SIX-MONTH MORATORIUM ON 13:08:04 DEEP WATER. THE IMPACT ON THE INDUSTRIES AND 13:08:07 THE PEOPLE WHO MAKE A LIVING IN THE GULF OF MEXICO IS PRETTY 13:08:12 DRAMATIC. I WOULD HOPE THE SIX MONTHS 13:08:14 WOULD BE THE MAXIMUM AND WE COULD GET SOME STANDARDS IN 13:08:17 PLACE BOTH FOR YOU TO FOLLOW, BUT ALSO FOR THE AMERICAN PEOPLE 13:08:20 TO HAVE SOME COMFORT IN THAT THE FEDERAL GOVERNMENT WAS 13:08:23 RESPONDING TO A DISASTER THAT COST 11 LIVES AND WE STILL 13:08:27 HAVEN'T COUNTED UP THE COST. SO WOULD IT BE BETTER TO LOOK AT 13:08:34 WHAT NORWAY ALREADY DOES IN THEIR OFFSHORE PRODUCTION? 13:08:36 BECAUSE I KNOW THE TESTIMONY EARLIER, YOU SAID THEY HAVE THE 13:08:39 STRICTEST OFFSHORE STANDARDS IN THE WORLD. 13:08:43 WOULD THAT BE BETTER TO ACTUALLY LOOK AT WHAT NORWAY DOES? 13:08:45 OF COURSE, IN THE GULF OF MEXICO, WE'RE NOT DEALING WITH 13:08:49 COLD WATER, AND HAVING BEEN TO NORWAY AND UNDERSTANDING THE 13:08:52 DIFFERENCE IN THE HIGH NORTH AND WHAT WE HAVE IN THE GULF OF 13:08:55 MEXICO. MAYBE WE OUGHT TO LOOK AT THE 13:08:57 TOUGHEST STANDARDS IN THE WORLD TO PRODUCE IN THE GULF OF 13:09:02 MEXICO. THE REASON IS THAT STAT OIL IS 13:09:04 GETTING READY TO START PRODUCING BECAUSE THEY LEASED IT, AND I 13:09:07 DON'T WANT THEM TO LEASE IN THE GULF OF MEXICO FOR LESS 13:09:09 STANDARDS THAN WHAT THEY HAVE TO LEASE OFF THEIR OWN COUNTRY. 13:09:12 SHOULD WE LOOK AT WHAT NORWAY IS DOING AND THE SUCCESS THEY'VE 13:09:17 HAD? IF I COULD JUST COMMENT ON 13:09:19 THAT, I THINK FIRST OF ALL I WANT TO JUST MAKE THE STATEMENT 13:09:22 THAT THE INDUSTRY BENEFITED FROM A WHOLE FROM A GOOD, SOLID SET 13:09:29 OF RECOMMENDATIONS, AND I THINK WE WOULD ALL BE SUPPORTIVE OF 13:09:33 GETTING THAT IN PLACE. SO FLEXIBILITY IS INCLUDED IN 13:09:37 THOSE REGULATIONS, WHICH YOU'VE ALREADY SEEN AS A RESULT OF THIS 13:09:40 INCIDENT, A JOINT TASK FORCE THAT GOT TOGETHER, INCLUDING 13:09:46 MEMBERS OF BP, SAYING HERE ARE A SET OF REGULATIONS WE COULD MAKE 13:09:51 THAT WE THINK WOULD MAKE THIS OPERATION BETTER, SAFER, MORE 13:09:55 APPROPRIATE. BUT THE ANSWER TO YOUR QUESTION, 13:09:56 I BELIEVE, IS YES. AS WE GO INTO THOSE JOINT 13:09:59 INDUSTRY TESTS OR DEVELOP THOSE RECOMMENDATIONS, WE BRING 13:10:02 ELEMENTS LIKE WHAT'S DONE IN NORWAY AND WHAT'S DONE IN OTHER 13:10:04 PARTS OF THE WORLD. WE BRING THAT KNOWLEDGE INTO 13:10:09 THAT CONVERSATION. MR. CHAIRMAN, I HAVE ONE MORE 13:10:12 QUESTION, IF I COULD. IN BP, I GUESS I GET FRUSTRATED 13:10:17 BECAUSE I HAVE CONSTITUENTS WHO WORK AT THE TEXAS ENERGY 13:10:24 REFINERY, AND I KNOW YOU'VE HEARD IT, IT SEEMS OFTENTIMES AT 13:10:29 BP THERE'S BEEN EXPEDIENCY AS COMPARED TO SAFETY. 13:10:33 AND WE FOUND THAT OUT IN THE TEXAS CITY REFINERY IN THE LOSS 13:10:38 OF 15 LIVES. THERE WAS DECISIONS MADE NOT TO 13:10:40 FUND THE SAFETY ISSUE. AND, ACTUALLY, A NEIGHBOR OF 13:10:45 MINE LOST HIS LIFE THERE IN TEXAS CITY THAT LIVED IN 13:10:49 BAYTOWN. SO I WOULD HOPE THAT THE 13:10:52 PROBLEMS, WHETHER IT BE WITH THE PIPELINE IN ALASKA OR ANY 13:10:55 REFINERY, WHETHER IT BE IN THE MIDWEST OR TEXAS CITY, TEXAS, 13:11:00 THE COAST GUARD DISTRICT, THAT BP WOULD LOOK AT THE SAFETY MORE 13:11:04 SO THAN TRYING TO MOVE THAT RIG TO ANOTHER PRODUCTION SITE. 13:11:06 MR. CHAIRMAN, THANK YOU. THE GENTLEMAN'S TIME HAS 13:11:11 EXPIRED. THE CHAIR RECOGNIZES THE 13:11:13 GENTLEMAN FROM ALABAMA, MR. GRIFFIN. 13:11:19 THANK YOU, MR. CHAIRMAN. SO THE CHILD-LIKE, 13:11:26 MEAN-SPIRITED, PET LANT QUESTIONING DEMONSTRATES A 13:11:29 COUPLE THINGS IN THIS HEARING. ONE, THAT IT'S VERY DIFFICULT 13:11:34 FOR US TO RESIST DEMAGOGUING THIS TRAGEDY, AND THAT'S 13:11:39 UNFORTUNATE. SECOND, THERE'S REALLY NOT A LOT 13:11:41 OF OIL AND GAS ON CAPITOL HILL, SO SOME OF YOU HAVE BEEN 13:11:45 SUBJECTED TO SOME THINGS THAT I THINK ARE DISRESPECTFUL. 13:11:47 I DO THINK IT'S INTERESTING THAT SOME WERE STUNNED TO FIND OUT 13:11:51 THAT YOUR DISASTER RESPONSES WERE SIMILAR ALMOST WORD FOR 13:11:56 WORD. YOU WOULD BE SURPRISED TO FIND 13:11:58 THAT AN AIRLINE DISASTER PLAN IS SIMILAR FROM COMPANY TO COMPANY. 13:12:03 YOU WOULD BE SURPRISED TO FIND THAT CHEST PAIN IN AN ER IS 13:12:06 SIMILAR ALL OVER THE UNITED STATES IN HOW WE HANDLE IT. 13:12:12 AND DISASTER RESPONSES TO HURRICANES AND TORNADOES ARE 13:12:16 ABSOLUTELY WORD FOR WORD FROM MUNICIPALITY TO MUNICIPALITY. 13:12:19 THAT SHOULD NOT HAVE SURPRISED ANYONE, EVEN THOUGH IT DID. 13:12:22 WITH THAT, I HAVE A QUESTION FOR MR. WATSON. 13:12:28 YOU MENTIONED SOMETHING EARLIER ABOUT YOUR COMPANY HAD A STOP 13:12:31 WORK POLICY. WHAT EXACTLY IS THAT? 13:12:34 A STOP WORK AUTHORITY IS REALLY THE AUTHORITY THAT'S 13:12:40 VESTED WITH EACH INDIVIDUAL EMPLOYEE AND CONTRACTOR TO STOP 13:12:47 WORK IF THEY SEE ANY WORK CONDITIONS THAT JEOPARDIZES WORK 13:12:54 OR SAFETY. THE POLICY WE HAVE IN PLACE 13:12:57 ISN'T THAT IT'S WRITTEN DOWN. BECAUSE I THINK MANY COMPANIES 13:12:59 HAVE IT WRITTEN DOWN. IT'S IMPORTANT THAT IT'S 13:13:02 EXERCISED, AND WHEN IT'S EXERCISED THAT THE FOLLOW-UP TO 13:13:06 THAT BY MANAGEMENT IS APPROPRIATE. 13:13:07 I WAS IN AUSTRALIA A COUPLE WEEKS AGO, AND WE RECOGNIZED THE 13:13:14 CONTRACTOR WHO RECOGNIZED STOP WORK AUTHORITY IN A LIFTING 13:13:19 OPERATION. SO WE ROUTINELY RECOGNIZED 13:13:21 PEOPLE AND REWARD PEOPLE WHO HAVE STOP WORK AUTHORITY. 13:13:26 IF THERE ARE COMPENSATIONS FOR PEOPLE IN THE STOP WORK 13:13:30 AUTHORITY, IT BECOMES EFFECTIVE. WE WORK HARD NOT TO SEND 13:13:33 UNINTENDED MESSAGES AFTER IT IS EXERCISED. 13:13:36 THANK YOU. MR. McKAY, THE POSSIBILITY THAT 13:13:41 THERE IS A DIFFERENT STRUCTURE OR MAKEUP OF THE SURFACE OIL 13:13:48 VERSUS THE SUBSURFACE OIL, WHAT PROCEDURES ARE BEING DONE BY THE 13:13:53 UNIFIED COMMAND TO DETERMINE HOW BEST TO HANDLE ONE VERSUS THE 13:13:56 OTHER? THAT'S TWO PIECES. 13:13:58 ONE, OBVIOUSLY, WE'RE TRYING TO CONTAIN OR STOP, AND SINCE THAT 13:14:02 HASN'T BEEN SUCCESSFUL, CONTAIN AS MUCH OIL SUBSURFACE AS 13:14:07 POSSIBLE. THE OIL THAT'S COMING OUT, WE'RE 13:14:11 USING SUBSIDY DISPERSANT WHICH WILL REVERSE THE OIL. 13:14:19 THE OIL THAT GETS TO THE SURFACE IS BEING DEALT WITH 13:14:25 SKIMMERS AND BURNING TO KEEP IT AS FAR OFFSHORE AS POSSIBLE. 13:14:28 I WOULD SAY THE MEASUREMENT PROGRAMS AROUND SUBSURFACE OIL 13:14:32 AND DISPERSANT IS EXTENSIVE. IT'S SHOWN THAT THE OIL 13:14:37 CONCENTRATIONS ARE VERY LOW. THAT'S BOTH THE DATA WE'RE 13:14:42 CONDUCTING IN THE UNIFIED COMMAND AS WELL AS NOAH DATA. 13:14:45 THAT'S GOING TO BE TRACKED DILIGENTLY FOR A LONG, LONG TIME 13:14:48 TO MAKE SURE WE UNDERSTAND WHAT'S HAPPENING, AND THE 13:14:51 NATURAL RESOURCES DAMAGE ASSESSMENT THAT'S BEING STUDIED 13:14:54 NOW THAT SETS THE -- EFFECTIVELY RESTORATION PLANS TO DAMAGE IS 13:15:04 UNDER WAY ALSO. AND THE RISE IN DEEP WATER 13:15:09 WAS COMMISSIONED IN WHAT YEAR? I THINK 2000. 13:15:12 AND IT'S HAD A RECORD OF DRILLING HOW MANY -- BEEN 13:15:15 INVOLVED IN DRILLING OF HOW MANY WELLS? 13:15:18 OVER 100 DEEP WATER WELLS. AND SO THIS WAS NOT -- 13:15:22 PROBABLY NOT -- THAT'S A WRONG NUMBER. 13:15:24 I'LL HAVE TO GET BACK TO YOU ON THAT. 13:15:26 THIS IS PROBABLY NOT A STRUCTURE THAT WAS FLAWED OR 13:15:31 BRAND NEW OR WE WERE UNFAMILIAR WITH? 13:15:34 NO -- WELL, THE TRANS-OCEAN RIG HAD BEEN WORKING SINCE IT 13:15:38 WAS COMMISSIONED AND HAS BEEN A GOOD RIG AND HAS OPERATED 13:15:43 DIFFICULT WELLS QUITE WELL. SO IT COULD HAVE SUCCESSFULLY 13:15:46 DRILLED 70-PLUS WELLS? IT'S DRILLED A LOT OF WELLS. 13:15:54 I WOULD LIKE TO MAKE ONE COMMENT. 13:15:55 WE ALSO HAVE A STOP WORK PROGRAM, AS HAS BEEN MENTIONED, 13:15:59 AND I BELIEVE OUR CONTRACTORS DO AS WELL, AND THAT IS A 13:16:04 FUNDAMENTAL PIECE OF INFORMATION ON A RIG OR OPERATION LIKE THIS. 13:16:07 I YIELD BACK MY TIME, MR. C 13:16:14 CHAIRMAN. THE CHAIRMAN RECOGNIZED THE 13:16:19 GENTLELADY. YOU CONTRACTED WITH THE CITY 13:16:27 AGES AGO, AND THIS IS WHAT YOU HAD TO SAY, AND I QUOTE. 13:16:31 THE ENERGY INDUSTRY ISN'T USUALLY CLASSIFIED AS A HIGH 13:16:34 TECHNOLOGY BUSINESS, BUT IT IS. IT HAS BEEN INSTRUMENTAL IN 13:16:39 PROTECTING THE ENVIRONMENT. TODAY IT BEARS ABOUT AS MUCH 13:16:42 RESEMBLANCE TO WHAT WAS AVAILABLE IN THE 1960s AZ ROTARY 13:16:46 DIAL TELEPHONE DOES TO AN iPHONE. 13:16:49 THAT WAS A VERY INTERESTING COMPARISON. 13:16:51 LET'S LOOK AT IT TO GET THE PICTURE OF THE CONTRAST. 13:16:55 FIRST, WE HAVE A PICTURE OF A ROTARY DIAL PHONE. 13:17:00 AND THEN AN iPHONE. CLEARLY THERE IS A DIFFERENCE IN 13:17:05 TECHNOLOGY AND WE CERTAINLY ALL BENEFIT FROM THOSE REMARKABLE 13:17:10 ADVANCES. NOW ANOTHER PICTURE. 13:17:11 A PICTURE I'M VERY FAMILIAR WITH, A PICTURE OF THE BOOM USED 13:17:14 IN THE SANTA BARBARA OIL SPILL IN 1969. 13:17:18 THAT WAS ABOUT THE ERA OF THE ROTARY TELEPHONE. 13:17:21 NOW HERE'S A PICTURE OF THE BOOM USED IN THE GULF TODAY. 13:17:27 40 YEARS LATER. DO YOU SEE A BIG DIFFERENCE 13:17:30 BETWEEN THE BOOM TECHNOLOGIES USED IN THESE TWO PICTURES? 13:17:36 I DON'T SEE A BIG CHANGE IN BOOM TECHNOLOGY. 13:17:40 THERE HAVE BEEN TREMENDOUS CHANGES IN TECHNOLOGY OF HOW A 13:17:46 BOOM IS DEPLOYED AND HOW SATELLITE ENERGY HELPS DEPLOY 13:17:50 ENERGY IN DIFFERENT PLACES. YES, WE DO HAVE SATELLITE 13:17:55 IMAGERY NOW, BUT THAT WAS THE ERA OF THE ROTARY TELEPHONE. 13:17:57 WE NOW LIVE IN THE ERA OF THE iPHONE. 13:17:59 AND IT LOOKS A LOT ON THE SHORELINE OF THE GULF AS IT 13:18:05 LOOKED TO ME IN SANTA BARBARA IN 1969. 13:18:09 THE TWO CLEAN-UP BOOMS, HOWEVER THEY'RE DEPLOYED, THEY LOOK AND 13:18:15 ACT PRETTY MUCH THE SAME. WOULD YOU AGREE? 13:18:16 THAT'S TRUE, ALREADY THERE ARE -- 13:18:19 LET ME SHOW YOU ANOTHER SET OF PICTURES. 13:18:21 HERE'S A PICTURE OF SOME WORKERS CLEANING UP THE OIL IN SANTA 13:18:25 BARBARA IN 1969. NOW LET'S LOOK AT A PICTURE OF A 13:18:29 WORKER MOPPING UP WITH HIS OWN TWO HANDS, BARE HANDS, I SHOULD 13:18:34 ADD, OIL THAT HAD REACHED THE GULF SHORE. 13:18:36 AGAIN, I DON'T SEE A LOT OF DIFFERENCE IN TECHNOLOGY BETWEEN 13:18:38 THE CLEAN-UP IN SANTA BARBARA AND THE CLEAN-UP NOW UNDERWAY IN 13:18:43 THE GULF. IN FACT, I DON'T SEE MUCH 13:18:45 DIFFERENCE AT ALL. BOOMS, WORKERS MOPPING UP BY 13:18:49 HAND THOUSANDS OF BARRELS OF SPILLED OIL. 13:18:51 SO I GET THE INDUSTRY SPENDS A LOT OF TIME AND EFFORT ON 13:18:54 EXPLORATION AND EXTRACTION AND LOBBYING. 13:18:56 BUT MY PROBLEM IS THAT YOU DON'T SEEM TO HAVE SPENT VERY MUCH ON 13:19:00 ACCIDENT PREVENTION OR -- AND YOU SEEM TO HAVE MADE FEW, IF 13:19:04 ANY, REAL DEVELOPMENTS IN OIL SPILL CLEAN-UPS. 13:19:07 WE'RE TALKING ABOUT 40 YEARS LATER. 13:19:09 SO HERE'S MY QUESTION. WHAT'S BP'S PLAN TO CONTAIN THE 13:19:14 INEVITABLE ACCIDENT FROM YOUR OFFSHORE RIGS, THE REST OF THEM 13:19:19 THAT ARE OPERATING OUT THERE, WHICH ARE DRILLING IN EVEN 13:19:21 HARSHER AND MORE DIFFICULT CONDITIONS? 13:19:23 WHAT'S IT GOING TO LOOK LIKE 10 TO 20 TO 40 YEARS FROM NOW WHEN 13:19:27 THERE IS ANOTHER HUGE SPILL, TO SEE BOOMS BEING LINED UP IN THE 13:19:31 DEFENSE FOR OUR COAST? IS THAT WHAT WE'LL STILL BE 13:19:35 SEEING THEN? WILL WE BE RELYING ON THOUSANDS 13:19:40 OF WORKERS CLEANING UP THE SHORES BY HAND? 13:19:43 WILL THAT BE THE TECHNOLOGY LIKE IT IS TODAY AND LIKE IT WAS 40 13:19:46 YEARS AGO? WE'VE TALKED A LOT ABOUT 13:19:48 PREVENTION TODAY, SO I WON'T GO INTO THAT. 13:19:50 IN TERMS OF SPILL RESPONSE, I THINK ONE AREA WE WILL LEARN 13:19:53 FROM THIS INCIDENT IS THE ABILITY TO DO MORE SUBSIDY 13:19:58 INTERVENTION. OKAY. 13:19:59 BUT I'M TALKING ABOUT THE OIL THAT COMES TO THE SURFACE. 13:20:03 LET ME SWITCH TO A MAY 12 OVERSIGHT AND INVESTIGATION 13:20:08 SUBCOMMITTEE AND A TRANSOCEAN DOCUMENT, AND I QUOTE FROM THAT 13:20:11 DOCUMENT. THE RECOVERY RATE OF OIL UNDER 13:20:14 THE BEST CIRCUMSTANCES RARELY EXCEEDS 15%. 13:20:18 THAT'S 15% OF ALL THE OIL THAT REACHES THE SURFACE OF THE 13:20:23 WATER. IT'S NOT A VERY IMPRESSIVE RATE 13:20:25 OF RECOVERY, BUT MORE DISTURBING IS THE FACT THAT THE REST OF THE 13:20:28 PROPOSED TECHNIQUES ARE NOT PARTICULARLY EFFECTIVE, EITHER. 13:20:31 FOR EXAMPLE, CHEVRON'S, BP'S RESPONSE PLAN WHICH THE CHAIRMAN 13:20:36 HELD UP EARLIER CAUTIONED THAT SOME MARSH CLEAN-UP TECHNIQUES 13:20:46 DESTROY WILDLIFE AND DESTROY MARSH AREAS. 13:20:51 SIX OUT OF 13 OF THE SHELL PLANS SAY OIL WILL ACCUMULATE ON 13:20:55 BARRIER ISLANDS. THE PLAN STATES THAT THIS CAN 13:21:00 BE, QUOTE, A VERY EFFECTIVE AND COST EFFECTIVE METHOD. 13:21:07 DOES SHELL REALLY BELIEVE THAT IT IS VERY HELPFUL WHEN OIL 13:21:11 WASHES UP ON BARRIER ISLANDS? CLEARLY NOT. 13:21:13 AND I THINK THE STATEMENT IS SIMPLY MEANT TO GO TO THE FACT 13:21:16 THAT IN TERMS OF AN ABILITY TO STOP FURTHER ENCROACHMENT IN 13:21:20 CLEAN-UP THAT THAT'S WHAT'S INTENDED BY THE STATEMENT. 13:21:23 DO YOU HAVE ANY OTHER INFORMATION? 13:21:26 IF I HAD TIME, I WOULD ASK EACH OF YOU, IS THIS THE STATE OF 13:21:29 AFFAIRS FOR CLEAN-UP TODAY ON OIL SPILLS? 13:21:33 I DO THINK YOUR ANSWER IS YES. 13:21:35 YOU'RE SAYING THE DEPLOYMENT OF THE TECHNOLOGY TODAY TO RESPOND 13:21:39 TO THIS BILL. THAT'S THE BEST WE CAN DO. 13:21:42 THANK YOU. I YIELD BACK. 13:21:45 THE CHAIR RECOGNIZES THE GENTLEMAN FROM FLORIDA, MR. 13:21:52 STERNS. MR. CHAIRMAN, THANK YOU. 13:21:54 IN 2008, EXXON ABANDONED, AFTER SPENDING $180 MILLION, A WELL 13:21:59 CALLED THE BLACK BEARD WEST, AND THIS OCCURRED WHEN THE WELL'S 13:22:02 PRESSURE INCREASED TO A POINT THAT EXXON COULDN'T JUSTIFY THE 13:22:05 RISK OF A BLOWOUT AND DECIDED TO PUT THE SAFETY OF THOSE WORKERS 13:22:09 ON THE DRILLING RIG AND THE ENVIRONMENT BEFORE CORPORATE 13:22:14 PROFITS. PERHAPS THIS IS WHAT BP SHOULD 13:22:16 HAVE DONE. MY QUESTION IS, FOR EACH OF YOU 13:22:19 EXCEPT MR. McKAY, JUST ANSWER YES OR NO. 13:22:22 KNOWING WHAT WE KNOW TODAY IN HINDSIGHT ABOUT THE INCONSISTENT 13:22:27 WELL PRESSURE TEST READINGS, WOULD YOU HAVE PROCEEDED WITH 13:22:31 WITHDRAWING THE DRILLING FLUID FROM THE WELL? 13:22:33 MR. TILLERSON? JUST YES OR NO. 13:22:36 NO. MR. WATSON? 13:22:42 JUST YES OR NO. 13:22:44 I CAN'T ANSWER YES OR NO UNTIL WE SEE THE FULL 13:22:46 INVESTIGATION OF THIS REPORT. SO YOU WOULD CONTINUE 13:22:50 DRILLING? THERE ARE MANY THINGS -- 13:22:52 THERE IS ONLY A YES OR NO HERE. 13:22:54 I'M JUST ASKING YOU, KNOWING WHAT WE DO IN HINDSIGHT ABOUT 13:22:58 THE INCONSISTENT WELL PRESSURE TEST READING, WOULD YOU HAVE 13:23:01 PROCEEDED WITH WITHDRAWING THE DRILLING FLUID FROM THE WELL? 13:23:05 JUST YES OR NO. BASED ON THE INFORMATION 13:23:07 WE'VE SEEN, NO. OKAY. 13:23:10 MR. MULVA? NO. 13:23:12 AND MR. ODOM? NO. 13:23:14 LET ME ASK THE FOUR OF YOU AGAIN. 13:23:17 IN RETROSPECT, NOW, ARE THERE SAFETY MEASURES THAT YOUR 13:23:21 COMPANY COULD HAVE TAKEN TO PREVENT THIS INCIDENT? 13:23:24 MR. TILLERSON, YES OR NO? WE HAVEN'T HAD THE INCIDENT. 13:23:29 I MEAN, IN RETROSPECT, KNOWING WHAT BP DID, COULD YOU 13:23:37 HAVE SUGGESTED SAFETY MEASURES THAT COULD HAVE PREVENTED THIS 13:23:41 INCIDENT? THEY'RE IN THE INDUSTRY 13:23:43 STANDARDS. THEY'RE ALREADY THERE. 13:23:45 YOU'RE SAYING THEY'RE ALREADY THERE AND BP DIDN'T FOLLOW THEM? 13:23:48 AT LEAST, THAT'S WHAT'S BEEN REPORTED. 13:23:50 SO IN YOUR OPINION, THERE ARE, AND THE STANDARDS ARE THERE 13:23:53 AND BP DIDN'T FOLLOW THEM. OKAY. 13:23:55 MR. WATSON? BASED ON THE INFORMATION 13:23:57 WE'VE SEEN, YES. AND MR. MULVA? 13:24:00 YES. MR. ODOM? 13:24:01 BASED ON THE INFORMATION, YES. 13:24:03 I THINK, MR. CHAIRMAN, THE MAJORITY OF OPINION HERE IS THAT 13:24:07 BP ACTED RECKLESSLY AND SHOULD BE HELD ACCOUNTABLE FOR ALL THE 13:24:12 ECONOMIC ENVIRONMENTAL DAMAGE THAT HAS OCCURRED. 13:24:14 NOW, MR. McKAY, ON MAY 12 YOU TESTIFIED, WHEN I ASKED YOU THE 13:24:19 QUESTION BASED UPON THE WORST-CASE SCENARIO, YOU COULD 13:24:23 HANDLE UP TO 300,000 BARRELS A DAY AT 10 MILES FROM THE SHORE, 13:24:31 SO I ASKED YOU WHAT WAS THE RATE AT THAT MOMENT ON THE SHORE, AND 13:24:34 YOU SAID 5,000 BARRELS A DAY. DO YOU STILL STAND BY 5,000 13:24:40 BARRELS A DAY THAT YOU GAVE ON MAY 12? 13:24:41 OBVIOUSLY, THAT WASN'T RIGHT ON THAT DAY BUT THAT WAS THE 13:24:45 UNIFIED COMMAND. YOU ALSO TESTIFIED THIS 13:24:47 MORNING THAT YOUR ESTIMATE WENT UP TO 14,000 BARRELS A DAY BACK 13:24:50 ON MAY 12. YOU SAID BP WAS TALKING ABOUT 13:24:53 14,000 BARRELS A DAY; IS THAT CORRECT? 13:24:56 NOT EXACTLY. I SAID WE HAD A RANGE OF 1 TO 14 13:24:59 THAT WE TRANSFERRED TO -- DIDN'T YOU TELL THE UNIFIED 13:25:01 COMMAND THAT YOU THOUGHT IT COULD BE AS HIGH AS 14,000? 13:25:04 YES. ABSOLUTELY. 13:25:05 SO ALL OF YOU WENT WITH 5,000? 13:25:08 THEY CHOSE 5,000. HOW MANY BARRELS OF OIL PER 13:25:11 DAY ARE CURRENTLY FLOWING FROM THE RUPTURED WELL? 13:25:14 WE DON'T KNOW. THE LATEST ESTIMATE FROM THE 13:25:17 FLOW RATE TECHNICAL GROUP, WHICH IS A GOVERNMENT GROUP, WE'RE NOT 13:25:20 IN IT, IS 20 TO 40,000. AND HOW MANY BARRELS PER DAY 13:25:24 IS THE TOP CAP RECOVERING? 15,500. 13:25:30 OKAY. IN THIS CASE, IN RETROSPECT, DO 13:25:35 YOU THINK THAT BECAUSE YOU GAVE SUCH A LOWBALL, THAT IMPACTED 13:25:40 THE RESPONSE TEAM BECAUSE THEY THOUGHT IT WAS SO LOW? 13:25:43 NO,I DON'T. ADMIRAL ALLEN HAS ANSWERED THIS 13:25:45 QUESTION DIRECTLY. THE RESPONSE HAS BEEN GEARED 13:25:50 TOWARD A MUCH HIGHER NUMBER. WE PROVIDED EVERY BIT OF DATA WE 13:25:53 CAN PROVIDE AS FAST AS WE GET IT TO UNIFIED COMMAND. 13:25:57 SO HOW DID THE ESTIMATE GO FROM 5,000 UP TO, WHAT, 40,000, 13:26:02 EVEN YOUR 14,000 THAT YOU ESTIMATED MAY 12? 13:26:06 HOW DOES IT GET FROM YOUR ESTIMATE HIGH OF 14 TO 40,000 13:26:10 TODAY? WELL, THE FLOW RATE TECHNICAL 13:26:13 GROUP, WHICH IS A GOVERNMENT GROUP -- 13:26:15 I'M ASKING ABOUT BP'S ESTIMATE. 13:26:17 WE HAVEN'T DONE AN ESTIMATE SINCE THE 1 TO 14. 13:26:22 S SO YOU'RE SAYING YOUR 13:26:24 CORPORATION HAS NOT EVEN TRIED TO FIND OUT -- 13:26:27 WE HAVE GIVEN OUR DATA TO THE FLOW RATE TECHNICAL GROUP UNDER 13:26:30 THE UNIFIED COMMAND. THEIR ESTIMATE A WEEK AGO WAS 12 13:26:34 TO 19,000. IN THE LAST FEW DAYS IT'S GONE 13:26:37 20 TO 40. MR. CHAIRMAN, I JUST THINK BP 13:26:42 HAS LOWBALLED THESE FIGURES, AND DO YOU KNOW WHAT THE BUCK STOPS 13:26:48 HERE, MR. McKAY, MEANS, THAT YOU TAKE FULL RESPONSIBILITY? 13:26:52 I REALLY THINK IN LIGHT OF THE PERFORMANCE THAT YOU, AS A CEO 13:26:56 AND WHAT HAS OCCURRED, I REALLY THINK YOU SHOULD BE RESIGNING AS 13:27:00 CHAIRMAN OF BP AMERICA. I MEAN, IT'S REALLY OUTRAGEOUS 13:27:05 THAT YOU SIT HERE AND TELL US THAT YOU'RE GOING TO PUNT TO THE 13:27:10 UNIFIED COMMAND WHEN WE'VE HAD 11 PEOPLE KILLED, WE'VE HAD A 13:27:14 HUGE ENVIRONMENTAL DAMAGE, AND YOU'RE STILL SITTING HERE AS THE 13:27:18 CEO OF BP? F 13:27:22 FRANKLY, I WOULD CALL FOR YOUR RESIGNATION. 13:27:25 I WOULD ASK FOR IT TODAY. I'M NOT ASKING FOR YOU TO 13:27:28 APOLOGIZE, I'M ASKING FOR YOU TO RESIGN. 13:27:29 THANK YOU, MR. CHAIRMAN. THE CHAIR RECOGNIZED HIMSELF 13:27:35 FOR FIVE MINUTES. ONE OF THE QUESTIONS THAT THIS 13:27:37 WHOLE TRAGEDY RAISES IS ABOUT AMERICA'S ENERGY POLICY, AND 13:27:42 IT'S TIME, I THINK, FOR CONGRESS TO CALL THE QUESTION, DOES 13:27:46 AMERICA'S ENERGY POLICY WORK? IS AMERICA'S CURRENT ENERGY 13:27:50 POLICY SUSTAINABLE? THE UNITED STATES, AS YOU KNOW, 13:27:57 CONSUMES 25% OF THE WORLD'S OIL, WE HAVE 2% OF THE PROVEN 13:28:03 RESERVES. AMERICANS' BUSINESSES AND 13:28:07 CONSUMERS SPENT NEARLY $900 BILLION LAST YEAR, MOST OF IT 13:28:10 GOING TO COUNTRIES THAT ARE NOT OUR FRIENDS. 13:28:14 I THE CURRENT POLICY WE HAVE WORKS 13:28:16 WELL FOR SOME, INCLUDING THE SHAREHOLDERS OF THE COMPANIES 13:28:18 REPRESENTED HERE TODAY. WHAT YOU DO, YOU DO VERY WELL. 13:28:22 YOU RUN VERY EFFICIENT OPERATIONS WITH SOME TRAGIC 13:28:26 EXCEPTIONS. BUT PROFITS INCREASED AMONG YOUR 13:28:28 FIVE COMPANIES FROM $28 BILLION IN 2002 TO $64 BILLION IN 2009. 13:28:37 AND THAT'S AFTER YOUR COMPANY PAID DIVIDENDS THAT SHAREHOLDERS 13:28:42 APPRECIATED OF $37 BILLION. IN EXXON, I BELIEVE MR. 13:28:47 TILLERSON ONLY HAS REPURCHASED STOCK IN THE VALUE OF $20 13:28:51 BILLION. BUT THE QUESTION FOR CONGRESS, 13:28:54 AND I'M GOING TO ASK YOU TO COMMENT ON THIS, IS WHETHER 13:28:58 WE'RE AT A POINT WHERE TAXPAYERS ARE BEING WELL SERVED WHEN 13:29:03 TAXPAYERS ARE CONTINUING TO PROVIDE SUBSIDIES FOR 13:29:09 BUSINESSES' USUAL ENERGY POLICY THAT'S BASED ON A CARBON ENERGY 13:29:13 19th CENTURY APPROACH VERSUS A CLEAN AND RENEWABLE ENERGY FUEL 13:29:17 POLICY OF THE 21st CENTURY THAT WE NEED? 13:29:20 AND THE QUESTION, REALLY, IS SHOULD TAXPAYERS IN THE UNITED 13:29:24 STATES CONTINUE TO PROVIDE BILLIONS OF DOLLARS TO SUBSIDIES 13:29:28 TO AN INDUSTRY, THE OIL INDUSTRY, THAT'S MATURE? 13:29:32 TO AN OIL INDUSTRY THAT'S EXTREMELY PROFITABLE INTO AN 13:29:37 INDUSTRY THAT'S BASED ON A CARBON-BASED FUEL? 13:29:42 OR IS IT TIME, FINALLY, FOR THE TAXPAYER INCENTIVES THAT ARE 13:29:49 BEING SEARED TO THE OIL INDUSTRY TO BE REDIRECTED TO EFFORTS OF 13:29:53 DEVELOPING A 21st CENTURY CLEAN ENERGY ECONOMY? 13:29:56 MR. TILLERSON, MY UNDERSTANDING JUST ON A SPECIFIC TAX 13:30:01 PROVISION, IS THAT SECTION 199 OF THE DOMESTIC MANUFACTURING 13:30:07 DEDUCTION PROVIDES A TAX RATE DEDUCTION FOR OIL AND GAS 13:30:10 COMPANIES, REPEELING THAT WOULD SHIFT $17.6 BILLION THAT WOULD 13:30:18 GO TO ENERGY EXPLORATION. WOULD YOU REPEAL THE DIRECTION 13:30:23 OF THAT? NO, CONGRESS, I WOULD NOT. 13:30:26 THE SECTION 199 TAX WAS PUT IN PLACE TO PROTECT TAX AND JOBS IN 13:30:32 THE UNITED STATES. I'M NOT SURE I NEED TO EXPLAIN 13:30:36 WHY THEIR JOB IS ANY MORE IMPORTANT THAN AN AUTO WORKERS 13:30:40 JOB. THE JOBS THAT ARE IMPORTANT 13:30:42 ARE THE JOBS IN THE GULF COAST AND THEY'RE LOSING THEIR JOBS 13:30:44 BECAUSE OF THE CATASTROPHE THAT JUST HAPPENED. 13:30:48 THIS IS ABOUT WHETHER TAX SUBSIDIES ARE GOING TO HELP 13:30:51 TAXPAYERS GET JOBS IN AN ENERGY POLICY FOR THE FUTURE. 13:31:00 CHEVRON, I'LL ASK YOU. THE TAX CODE RIGHT NOW ALLOWS 13:31:04 OIL AND GAS TO SUSPEND. THAT COSTS TAXPAYERS BILLIONS OF 13:31:12 DOLLARS OVER THE YEARS. WOULD YOU SUPPORT REDIRECTING IT 13:31:18 OR CONTINUING IT? I SUPPORT CONTINUING IT. 13:31:21 I SUPPORT MANY OTHERS IN THE TAX CODE THAT DICTATE THE TIMING OF 13:31:25 THE DEDUCTION. I HAVE ONE QUESTION. 13:31:27 I BELIEVE IN TAX INCENTIVES, BUT I QUESTION WHETHER THEY SHOULD 13:31:30 GO TO MATURE INDUSTRIES AND INDUSTRIES THAT ARE PROFITABLE. 13:31:33 THEY'VE MANAGED TO GET THEIR SEA LEGS AND YOUR INDUSTRY ENJOYED 13:31:38 PROFITS OF $68 BILLION, HARD WORK OF A LOT OF PEOPLE. 13:31:42 BUT DO WE NEED, IN AMERICA, TO BE STARTING TO USE TAXPAYER 13:31:49 MONEY, WHICH IS WHAT THESE SUBSIDIES ARE, TO HELP US MOVE 13:31:53 TO A CLEAN ENERGY ECONOMY THAT'S SUSTAINABLE AND DOES NOT HAVE 13:31:55 THE RISK OF THESE CATASTROPHES THAT ARE CAUSING PEOPLE THEIR 13:31:59 LIVES AND THEIR LIVELIHOOD? MR. MULVA? 13:32:05 DO YOU HAVE A VIEW ON THIS? I DO, AND I THINK IF I GO 13:32:07 BACK TO WHERE YOU STARTED, I THINK IT IS TIME FOR CONGRESS TO 13:32:10 TAKE A COMPREHENSIVE REVIEW OF ENERGY SUPPLY TO THIS COUNTRY. 13:32:14 I THINK PART OF THAT WOULD BE, THEN, IN ADDITION TO ALL THE 13:32:18 ALTERNATIVES THAT I TALKED ABOUT IN MY OPENING STATEMENT, I THINK 13:32:23 IT WOULD RECOGNIZE THE IMPORTANCE OF OIL AND GAS. 13:32:24 THANK YOU, MY LAST QUESTION. MR. McKAY, THERE WAS A REPORT BY 13:32:28 THE U.S. CHAMBER OF CONGRESS, MR. DONAHUE, WHO SAID LAST WEEK 13:32:31 THAT HE BELIEVES THE TAXPAYER SHOULD HELP BP PAY FOR THE COST 13:32:36 OF THIS BILL. BP OFFICIAL TESTIMONY IS YOU'RE 13:32:39 GOING TO BEAR THE BURDEN ON THIS. 13:32:41 DO YOU REPUTIATE THE SUGGESTION BY THE UNITED STATES CHAMBER OF 13:32:45 CONGRESS THAT THE TAXPAYER PARTICIPATE IN THE COST OF THIS 13:32:49 CLEAN-UP? WE'RE GOING TO PAY FOR ALL 13:32:52 COSTS OF THE CLEAN-UP. THANK YOU. 13:32:59 THE CHAIR RECOGNIZES MR. WHITFIELD. 13:33:03 THANK YOU, MR. CHAIRMAN, AND THANK YOU ALL VERY MUCH FOR 13:33:07 BEING WITH US CHAIRMAN OF THE COMMITTEE, AND 13:33:42 WHEN YOU THINK THAT IT'S ALLEGED THAT A BP EMPLOYEE SAID THAT 13:33:49 THIS IS A NIGHTMARE WELL, THERE WERE CONCERNS EXPRESSED BY WELL 13:33:56 DESIGNS, A NUMBER OF CENTRALIZERS, THE CEMENT PROCESS 13:34:01 AND SO FORTH. SO I WOULD ASK YOU, MR. McKAY, 13:34:05 AS THE PRESIDENT OF USBP, WERE YOU AWARE OF ANY OF THESE 13:34:12 CONCERNS OR PROBLEMS THAT EXISTED WITH THIS WELL PRIOR TO 13:34:16 IT BLOWING? NO, I WAS NOT. 13:34:19 AND ARE YOU AWARE OF ANYONE ON YOUR STAFF THAT MAY HAVE 13:34:25 BEEN -- HAD KNOWLEDGE OF THIS? I THINK WHAT THE 13:34:30 INVESTIGATIONS WILL DETERMINE IS THE INTERPLAY BETWEEN DATA THAT 13:34:33 WAS KNOWN, DECISIONS THAT WERE MADE, THE PROCESSES THAT WERE 13:34:36 FOLLOWED ON THE RIG AND THEN THE EQUIPMENT THAT WORKED OR NOT. 13:34:38 SO THAT'S PART OF THE INVESTIGATION. 13:34:41 THESE ARE BIG QUESTIONS, THEY'RE IMPORTANT QUESTIONS. 13:34:45 BUT FROM YOUR OWN PERSONAL KNOWLEDGE, YOU WERE NOT AWARE OF 13:34:48 ANYTHING? NO. THE STEPS THAT HAVE BEEN TAKEN 13:34:51 TO TRY TO STOP THE FLOW OF THIS O 13:34:59 OIL, THE TIE KILLS, THE D 13:35:05 DISPERSANTS, THE RELIEF WELLS, ALL THESE THINGS. 13:35:07 ALL OF YOU ARE EXPERTS IN THIS FIELD, AND WE VALUE YOUR VIEWS, 13:35:10 AND IF ALL OF THESE EFFORTS THAT ARE BEING MADE IN THAT WORK, IS 13:35:19 THERE ANY WAY THAT ANY OF YOU CAN GUESS AS TO HOW LONG THIS 13:35:27 OIL MIGHT FLOW? DO ANY OF YOU HAVE ANY IDEAS OF 13:35:31 HOW LONG THIS COULD GO ON? COULD I JUST SAY THAT THE 13:35:34 RELIEF WELLS THAT ARE UNDERWAY WILL BE -- FIRST OF ALL, WE'RE 13:35:39 GOING TO TRY TO CONTAIN AS MUCH AS WE POSSIBLY CAN. 13:35:41 AND THAT'S GOING TO INCREASE IN CAPACITY, REDUNDANCY AND 13:35:46 RESILIENCY FOR HURRICANES IN THE NEXT THREE WEEKS, FOUR WEEKS. 13:35:49 THE RELIEF WELL, FIRST RELIEF WELL, SHOULD BE DONE BY 13:35:54 MID-AUGUST, AND THAT SHOULD PERMANENTLY SECURE THIS WELL. 13:35:59 OKAY. SO IF THE RELIEF WELL WORKS, 13:36:01 THEN MID-AUGUST, THAT SHOULD BE THE END OF IT. 13:36:05 AND WE HAVE REDUNDANCY WITH A SECOND RELIEF WELL, AND SHOULD 13:36:08 WE NEED IT, WE CAN SIDE TRACK BOTH OF THOSE WELLS FOR OTHER 13:36:13 ATTEMPTS, BUT WE BELIEVE WE'LL GET IT MID-AUGUST. 13:36:15 I WAS READING AN ARTICLE ABOUT A WELL REFERRED TO AS 13:36:20 IXTOC-1, WHICH I THINK WAS BACK IN 1978 OR '79, WHICH WAS IN THE 13:36:24 GULF, AND EVIDENTLY IN THAT WELL, THE OIL FLOWED FROM JUNE 13:36:35 OF '78 TO MARCH OF '79. ARE ANY OF YOU FAMILIAR WITH THE 13:36:40 HISTORY OF THAT PARTICULAR WELL BLOWING IN THE GULF? 13:36:42 ARE YOU AWARE OF THE FACTS OF THAT? 13:36:45 I HAVE -- I DON'T HAVE DEPTH OF KNOWLEDGE, BUT I UNDERSTAND 13:36:47 THAT THAT WAS A WELL ON MEXICAN WATERS ON THE GULF OF MEXICO. 13:36:54 IT DID GO FOR ABOUT NINE MONTHS. I BELIEVE IT WAS A JACK-UP AND 13:36:58 THE RIG COLLAPSED PARTIALLY ON TOP OF THE BLOWOUT PREVENTER. 13:37:02 IT WAS NOT A DEEP WATER WELL? NO. 13:37:04 BUT I UNDERSTAND THAT WELL, THERE WAS 3.3 MILLION BARRELS OF 13:37:09 OIL. THAT'S WHAT'S REPORTED. 13:37:12 YEAH. I YIELD BACK THE BALANCE OF 13:37:14 MY -- ONE OTHER QUESTION. ONE OTHER QUESTION. 13:37:19 I THINK I KNOW THE ANSWER TO THIS BECAUSE I THINK YOU'VE 13:37:21 INDICATED THAT YOU HAD A POLICY THAT ANY INDIVIDUAL OR 13:37:26 CONTRACTOR WOULD HAVE THE AUTHORITY TO STOP THE ACTION ON 13:37:30 THE WELL; IS THAT CORRECT? THAT IS CORRECT. 13:37:34 OKAY. DID THE GENTLEMAN YIELD? 13:37:40 YES. MR. McKAY, YOU SAID ANYBODY 13:37:43 ON THE RIG HAD THAT AUTHORITY. IS THERE ANYTHING YOU DISAGREE 13:37:46 WITH IN THE CONCLUSION, IN LETTER THAT WAS SENT -- THAT THE 13:37:49 OVERSIGHT SUBCOMMITTEE DID THAT THEY SENT TO MR. HAYWARD JUST 13:37:55 YESTERDAY, TALKING ABOUT THE LACK OF A LOCKDOWN SLEEVE, THE 13:37:59 FAILURE TO CIRCULATE DRILLING MUD, NO CEMENT BOND LOG AND TOO 13:38:03 FEW CENTRALIZERS? DO YOU QUIBBLE WITH ANY OF THE 13:38:07 FINDINGS IN THIS LETTER? I HAVEN'T BEEN ABLE TO GO 13:38:10 THROUGH THAT LETTER YET, BUT WHAT I WOULD SAY IS WE 13:38:12 IDENTIFIED FOR THE INO SUBCOMMITTEE SOME OF THESE 13:38:15 ISSUES IN OUR INVESTIGATION, AND WHAT WE'VE SAID IS THOSE ALL 13:38:20 HAVE TO BE EVALUATED. AND I BELIEVE THE INVESTIGATION 13:38:23 WILL GET TO PUT THIS CHRONOLOGY TOGETHER SO WE CAN UNDERSTAND -- 13:38:26 LET ME SAY IF THE FINDINGS IN THIS LETTER ARE ACCURATE, HOW 13:38:30 MANY FOLKS ON THE RIG HAD THE T 13:38:35 AUTHORITY TO ACTUALLY STOP THE WORK ON IT? 13:38:37 EVERYONE? I WAS SPECULATING ON 13:38:39 TRANSOCEAN, OKAY, BUT WE HAD SEVEN PEOPLE ON THE RIG, TWO OR 13:38:42 THREE WERE TRAINEES, SO WE HAD FOUR OR FIVE PEOPLE ON THE RIG 13:38:46 THAT -- SO YOU ONLY HAD FOUR OR FIVE 13:38:48 FOLKS ON THE RIG THAT HAD THE STOP WORK AUTHORITY? 13:38:51 THOSE WERE THE SUM TOTAL OF BP EMPLOYEES ON THAT RIG. 13:38:55 BUT ALL OF THEM HAD THE AUTHORITY TO SAY STOP? 13:39:00 EVERY BP EMPLOYEE HAS THAT AUTHORITY, THAT'S RIGHT. 13:39:04 DID ANY OF THEM SAY STOP? I DON'T KNOW. 13:39:05 I DON'T KNOW. BECAUSE I'M LED TO BELIEVE 13:39:09 THAT THERE WAS AT LEAST ONE BP SUPERVISOR WHO IS TAKING THE 13:39:14 FIFTH. I DON'T KNOW IF THAT'S ACCURATE 13:39:15 OR NOT? IS THAT ACCURATE? 13:39:17 I DON'T THINK IT'S PERFECTLY ACCURATE. 13:39:19 I THINK WHEN THEY ASKED HIM TO HAVE A HEARING LAST MONTH, I 13:39:24 BELIEVE -- MAYBE I SHOULDN'T EVEN SAY THIS, BUT I THINK HIS 13:39:27 ATTORNEY ADVISED HE WASN'T READY AND THEY COULD RESCHEDULE, AND I 13:39:32 DON'T KNOW WHAT HIS -- DO YOU KNOW WHETHER HE 13:39:34 ACTUALLY SAID STOP? I DON'T KNOW THAT. 13:39:36 I YIELD BACK. MR. CHAIRMAN, I YIELD MY 27 13:39:42 SECONDS FROM TEXAS. MR. CHAIRMAN, THERE IS A 13:39:45 QUESTION I JUST HAVE TO ASK YOU. ANY GOOD CONVENTIONAL 13:39:51 RADIOLOGIST CAN PUT A CATHETER INTO PLACES THAT ARE HARD TO GET 13:39:54 TO, INSTILL SHOTS AND INFLATE BALLOONS. 13:39:57 HAS ANYBODY IN YOUR ENGINEERING STAFF LOOKED AT THE CONCEPT OF 13:40:00 PUTTING SOMETHING DOWN IN THIS STEM AND INFLATE A HEAVY BALLOON 13:40:06 JUST TO GIVE YOU A SHORT TIME TO PUT SOME HEAVY MUD ON TOP OF IT 13:40:09 TO KILL THIS THING OFF? YES, BUT WE HAVE DRILL PIPES 13:40:12 INSIDE THE BLOWOUT PREVENTER, AND IT'S CRIMPED AND THERE IS A 13:40:21 T TORTUOUS PATH INSIDE THE BLOWOUT 13:40:25 PREVENTER. BUT YOU COULDN'T STOP THE 13:40:27 FLOW OF STUFF COMING UP, BUT IF YOU INFLATED SOMETHING THAT 13:40:30 RAPIDLY PUT SOME COMPRESSION ON THE FLOW BELOW, THEN YOU WOULD 13:40:33 HAVE A CHANCE TO GET SOMETHING ON TOP OF IT TO TRY TO GET IT 13:40:36 STOPPED. AT THIS POINT ALMOST ANYTHING IS 13:40:38 WORTH A SHOT, AND YOU HAVE MIKE HUCKABY ON TV THE OTHER NIGHT, 13:40:42 HE HAD A LITANY OF PEOPLE COMING IN WHO WANTED TO DO THINGS TO 13:40:46 HELP. THIS IS ONE OF THE THINGS THAT'S 13:40:50 F FRUSTRATING. 13:40:51 MR. MARKEY IS MAKING US WATCH THIS THING 24 HOURS A DAY ON OUR 13:40:56 SCREEN SAVORS AND PEOPLE ARE COMING UP WITH IDEAS AND THERE 13:41:02 IS NO PLACE FOR THEM TO GET THESE IDEAS IN PLACE. 13:41:08 THE CHAIRMAN RECOGNIZES THE GENTLEMAN FROM KENTUCKY PLRKS 13:41:14 GONZALEZ. THANK YOU, MR. CHAIRMAN. 13:41:17 IT'S OBVIOUS YOUR COLLEAGUES ARE SAYING THAT WHAT BP DID AND 13:41:22 THE WAY OF DRILLING WOULD NOT BE THE PROCEDURE THEY WOULD HAVE 13:41:26 FOLLOWED. I BELIEVE THAT'S WHAT THE 13:41:27 WITNESS HAS SAID. WHY WOULD -- IT SEEMS LIKE ALL 13:41:30 OF YOU ARE ON THE SAME PAGE WHEN IT COMES TO HOW YOU CONTAIN AND 13:41:37 CLEAN UP, BUT YOU'RE NOT ON THE SAME PAGE WHEN IT COMES TO HOW 13:41:39 TO DRILL. AND THEN YOUR WHOLE THEORY TODAY 13:41:44 IS NOT BP'S, THAT WE WOULD HAVE DONE IT DIFFERENTLY AND IT NEVER 13:41:48 WOULD HAVE HAPPENED. SO I WOULD HAVE LOVED TO SEE THE 13:41:51 SAME UNIFORMITY IN ADOPTING THE MORE SAFE MANNER SO THIS NEVER 13:41:55 WOULD HAVE HAPPENED. THERE IS A WHOLE LOT MORE TO 13:41:57 THIS STORY, OBVIOUSLY, THAT WILL DEVELOP. 13:41:59 MR. McKAY, WHY WOULD ALL THESE INDIVIDUALS HAVE TAKEN DIFFERENT 13:42:02 ROUTES IN THE WAY THEY WOULD HAVE DRILLED? 13:42:06 WELL, I CAN'T SPEAK FOR THEM. WHAT I CAN SAY IS WHAT PART OF 13:42:10 THESE INVESTIGATIONS WILL DETERMINE IS WHAT WERE THE 13:42:14 PROCEDURES THAT WERE USED, THE DESIGN OF THE WELL, THE 13:42:16 PROCEDURES THAT WERE USED TO EXECUTE THE WELL AND THE 13:42:18 EQUIPMENT ON THE RIG AND HOW DID IT PERFORM? 13:42:20 AND HOW DID DECISION MAKING AND DATA FLOW? 13:42:23 I THINK THEN THOSE WILL BE -- THE DESIGN AND THINGS LIKE THAT 13:42:29 WILL BE COMPARED TO INDUSTRY NORM AND WE'LL SEE IF IT'S 13:42:31 OUTSIDE NORMAL OR NOT. AND UNDOUBTEDLY IN AN ACCIDENT 13:42:34 OF THIS TYPE AND SEVERITY, THERE WILL BE A COMBINATION, I 13:42:37 BELIEVE -- THIS IS SPECULATIVE -- OF DECISION 13:42:40 MAKING, PROCESSES AND EQUIPMENT THAT INTERPLAY TO ALLOW THIS TO 13:42:46 HAPPEN. SO I THINK THESE QUESTIONS OF 13:42:47 WHAT'S NORMAL, WHAT'S NOT NORMAL, WHAT'S UNUSUAL, WHAT'S 13:42:50 NOT UNUSUAL, THAT'S GOING TO COME OUT IN THE INVESTIGATIONS. 13:42:54 TO MY KNOWLEDGE, THE WELL OIL DESIGN IS NOT AN UNUSUAL DESIGN 13:42:57 FOR THE GULF OF MEXICO. I REALIZE YOU HAVE TRANSOCEAN 13:43:01 DOING THE WORK AND YOU HAVE HALIBURTON GOING TO CAP IT OFF 13:43:06 AND SO ON. I'M SURE IT WILL BE AN 13:43:08 INTERESTING SITUATION WHEN ALL IS SAID AND DONE, AND I KNOW 13:43:11 YOU'RE THE RESPONSIBLE PARTY UNDER CERTAIN CIRCUMSTANCES, BUT 13:43:15 WHEN ALL IS SAID AND DONE, I'M SURE YOU'LL BE SEEKING FOR 13:43:19 INDEMNIFICATION FROM OTHERS. CAN YOU GUARANTEE TO THE 13:43:24 AMERICAN PUBLIC AND OUR CONSTITUENTS THAT ANY OF YOUR 13:43:29 DRILLING OPERATIONS ARE FREE FROM A SIMILAR ACCIDENT AS 13:43:34 DEEPWATER HORIZON? JUST YES OR NO. 13:43:37 100% ASSURANCE. 100%. 13:43:40 CONGRESSMAN, I'M NOT SURE WE KNOW ALL -- ALL -- OF THE 13:43:45 ASPECTS OF THE DEEPWATER HORIZON INCIDENT YET. 13:43:48 I UNDERSTAND THAT. WHAT WE CAN ASSURE YOU IS 13:43:50 THAT THE DESIGNS AND THE PROCEDURES AND THE PROCESSES WE 13:43:53 HAVE IN PLACE WHEN CARRIED OUT WOULD PREVENT THIS FROM 13:43:58 HAPPENING. MR. TILLERSON, THIS IS WHERE 13:44:01 I'M GOING TO LEAD THE WITNESSES. YOU CANNOT GIVE 100% ASSURANCES 13:44:09 OF ANYTHING IN OUR LIVES, AND THE PUBLIC WANTS TO HEAR YOU 13:44:13 COME OUT AND SAY, THERE'S RISKS. THERE ARE NO GUARANTEES IN 13:44:19 LIFE. THAT'S ALL I WANT. 13:44:21 CAN YOU GIVE ME 100% SO I CAN GO BACK HOME -- 13:44:23 NO. I CANNOT. 13:44:27 I BELIEVE THE CHEVRON OPERATIONS ARE SAFE. 13:44:30 WE'RE DRILLING DEEP WELLS -- 100%. 13:44:34 THESE ARE SIMPLE QUESTIONS, AND IF YOU WERE IN THE COURTROOM, 13:44:37 THE JUDGE WOULD WANT YOU TO SAY YES OR NO. 13:44:40 I BELIEVE OUR OPERATIONS ARE SAFE. 13:44:42 WE'RE DRILLING -- I CAN GO BACK AND SAY YOUR 13:44:45 OPERATION, NO MATTER WHERE IT IS, IN THE GULF OR ELSEWHERE, IS 13:44:49 100% SAFE, THAT THIS WOULD NEVER, NEVER REPLICATE ITSELF. 13:44:55 I BELIEVE OUR OPERATIONS ARE SAFE. 13:44:58 100%. THAT'S WHAT MAKES IT SO HARD FOR 13:45:00 THE AMERICAN PUBLIC, GENTLEMEN. FOR US TO GO OUT THERE AND TELL 13:45:04 THEM SOMETHING THEY KNOW CAN'T POSSIBLY BE TRUE, BECAUSE IT 13:45:06 DOESN'T APPLY IN ANY OTHER ASPECT OF LIFE OR BUSINESS. 13:45:10 I'M A PROPONENT OF OFFSHORE DRILLING. 13:45:14 I'VE HAD THIS DEBATE WITH THIS CAP SINCE I GOT HERE. 13:45:21 YOU'RE NOT MAKING ME LOOK GOOD. 100%. 13:45:24 COME ON, YOU GUYS, SERIOUSLY, HOW CAN YOU SAY YES? 13:45:27 IF YOU WANT TO SAY YES, SAY YES. WE CAN ALL GO BACK, MR. 13:45:31 CHAIRMAN, AND TELL THEM WE HAD WITNESSES FROM LEADERS IN THE 13:45:34 INDUSTRY THAT CAN ACTUALLY TELL US THAT 100% SURE THIS WILL 13:45:39 NEVER HAPPEN AGAIN. CONGRESSMAN, I INDICATED WE 13:45:42 HAVE EFFECTIVE PROCEDURES. I DIDN'T SAY 100%. 13:45:45 TO ME THAT'S 100%. I'M GRATIFIED. 13:45:48 NO. NOTHING IS 100% FAIL SAFE. 13:45:53 THANK YOU. IT'S NOT 100% SAFE. 13:45:56 IT'S WHAT WE FOCUS ON EVERY DAY, THOUGH. 13:45:58 THE REASON I AM FOR EXPLORATION DOMESTICALLY IS 13:46:02 BECAUSE WE DEPEND ON MORE THAN 60% OF OIL FROM FOREIGN SOURCES 13:46:05 WHICH IS A NATIONAL SECURITY THREAT. 13:46:07 BUT WE CAN DO IT SAFELY. I STARTED OFF IN THE OPENING 13:46:10 STATEMENT THAT WE CAN EXPLORE AND PRODUCE AND DO IT IN A 13:46:13 SAFEWAY THAT THEY'RE NOT MUTUALLY EXCLUSIVE. 13:46:16 IN THIS COUNTRY WE HAVE MORE THAN A THIRD OF ALL CARS AND 13:46:23 TRUCKS IN THE WORLD. BY 2020, WE'LL STILL PROBABLY BE 13:46:29 SELLING 50% OF OUR CARS THAT WILL BE OPERATED BY A FOSSIL 13:46:34 FUEL ENGINE. THAT'S WHY IT'S SO IMPORTANT. 13:46:36 WE HAVE AN OBLIGATION TO THIS COUNTRY TO SAY THAT WE'RE GOING 13:46:39 TO DO IT IN A SAFE MANNER. THAT'S ALL WE'RE TRYING TO DO 13:46:42 HERE. YOU'RE THE GUYS THAT ARE THE 13:46:44 EXPERTS. YOU HAVE THE RESOURCES, THE 13:46:45 ASSETS AND THE KNOWLEDGE. A 13:46:49 AND YOU'RE GOING TO HAVE US DECIDE FOR YOU IF, IN FACT, YOU 13:46:53 DON'T REALLY GET ENGAGED UNTIL WE CAN GO BACK TO THE AMERICAN 13:46:56 PUBLIC AND TELL THEM WITH A STRAIGHT FACE THAT WE ARE DOING 13:47:00 EVERYTHING HUMANLY POSSIBLE TO MAKE IT SAFE AND IF THERE IS AN 13:47:04 ACCIDENT THAT WE CAN CLEAN IT UP. 13:47:06 THANK YOU VERY MUCH. THE GENTLEMAN'S TIME IS 13:47:10 EXPIRED. THE CHAIR RECOGNIZED THE 13:47:12 GENTLEMAN FROM LOUISIANA. I WANT TO TAKE ISSUE WITH THE 13:47:17 STATEMENT YOU MADE EARLIER WHEN YOU SAID, QUOTE, THE SPILL 13:47:19 RESPONSE HAS BEEN PRETTY EFFECTIVE. 13:47:21 I JUST SPENT FRIDAY ON THE GROUND IN GRAND ISLE WHICH YOU 13:47:25 KNOW IS ONE OF THE REPRESENTERS OF THE OIL THAT'S COMING ON THE 13:47:32 B BEACHES AND THE MARSH. 13:47:34 THEY'RE TRYING TO PROTECT THE BAY. 13:47:41 WE DON'T WANT TO WAIT FOR PEOPLE TO COME AND CLEAN IT UP. 13:47:44 WE WANT TO BE PROACTIVE, AND WE'VE BEEN SUBMITTING PLANS. 13:47:47 IN FACT, 75% OF THE PLANS SUBMITTED BY OUR GOVERNOR TO 13:47:49 HAVE THESE SAND BARRIERS IN PLACE STILL HAVE NOT BEEN 13:47:52 APPROVED, AND SO WHEN YOU HEAR LOCAL OFFICIALS SAYING THEY'RE 13:47:55 SPENDING MORE TIME FIGHTING BP AND THE FEDERAL GOVERNMENT THAN 13:47:57 FIGHTING THE OIL, THAT'S NOT WHAT I WOULD CLASSIFY AS PRETTY 13:48:01 EFFECTIVE. SO PLEASE GO BACK AND REDOUBLE 13:48:04 EFFORTS AND DO EVERYTHING YOU CAN TO WORK WITH OUR LOCAL 13:48:06 LEADERS WHO HAVE PLANS AND THEY'RE BEING BLOCKED BY BP AND 13:48:10 THE FEDERAL GOVERNMENT FROM GETTING THOSE PLANS IMPLEMENTED. 13:48:13 THAT'S WHEN IT WILL BE EFFECTIVE, WHEN EVERYTHING IS 13:48:15 MOVING BY THE SPEED OF LIGHT. IT TAKES RIGHT NOW AT LEAST FIVE 13:48:18 DAYS IN SOME CASES TO GET ANSWERS ON QUESTIONS. 13:48:21 THAT'S UNACCEPTABLE. I WOULD APPRECIATE IT IF YOU 13:48:23 WOULD LOOK AT THAT. I WANT TO ASK YOU ABOUT THE 13:48:25 RELIEF WELL. ARE YOU USING THE SAME METHODS 13:48:27 TO DRILL THE RELIEF WELL AS YOU USED FOR THE ORIGINAL HORIZON 13:48:32 WELL? THE DESIGN OF THE RELIEF WELL 13:48:34 IS VERY, VERY SIMILAR TO THE ORIGINAL WELL. 13:48:37 CLEARLY IT WILL FAIL. A MISERABLE FAILURE, YOU HAD 11 13:48:42 PEOPLE DIE. YOU'RE STILL USING THAT SAME 13:48:45 METHOD, OR HAVE YOU CHANGED THE METHODS OF DRILLING? 13:48:48 THAT DESIGN HAS BEEN REVIEWED OVER AND OVER WITH MMS. 13:48:51 THE FAILURE OF THE ORIGINAL WELL, I THINK, IS GOING TO BE A 13:48:54 COMPLICATED SET OF DECISIONS, EQUIPMENT AND PROCESSES. 13:48:56 THE RELIEF WELL, I BELIEVE, IS SAFE. 13:49:00 WELL, LET ME ASK YOU, THEN, THE LAST TIME YOU TESTIFIED, I 13:49:03 HAD ASKED YOU ABOUT DISAGREEMENTS ON THE RIG. 13:49:05 IN FACT, I HAD GIVEN YOU A REPORT THAT YOU SAID YOU HADN'T 13:49:09 READ AT THE TIME, NOW YOU'VE HAD SOME TIME TO READ IT, WHERE 13:49:12 THERE WAS A DISAGREEMENT REPORTED IN THE MEDIA BETWEEN 13:49:15 THE HEAD OF OPERATIONS ON THE RIG FOR BP VERSUS THE HEAD OF 13:49:18 OPERATIONS FOR TRANSOCEAN. DID THAT DISAGREEMENT OCCUR? 13:49:22 WERE THERE DISAGREEMENTS? I BELIEVE IN THE MARINE BOARD 13:49:26 HEARING A COUPLE WEEKS AGO, THAT INDIVIDUAL FROM TRANSOCEAN SAID 13:49:30 THAT DID NOT OCCUR, THAT ACTUAL INDIVIDUAL. 13:49:32 SO WE'LL SEE MORE, BECAUSE MORE REPORTS CONTINUE TO COME 13:49:36 OUT THAT CONTRADICT THAT, BUT WE'LL SEE. 13:49:48 WHAT'S YOUR DEEPEST WELL? YOU'RE TALKING ABOUT WATER 13:49:51 DEPTH? YES. 13:49:52 WE'VE DRILLED UP TO 8700 FEET DEEP. 13:49:55 THE HORIZON WAS 5,000. SO YOU'RE 87. 13:49:59 ANY INCIDENTS THERE? ANY BLOWOUTS? 13:50:02 THERE? ANY BLOWOUTS? 13:50:05 NO. MR. WATSON? 13:50:07 I'LL HAVE TO CHECK ON THE DEEP. 13:50:09 DEEPER THAN 5,000? DEEPER THAN 5,000. 13:50:13 DEEPEST IS 10,000. NO INCIDENTS? 13:50:19 NO BLOWOUTS. AND SO AS WE LOOK AT ALL OF 13:50:20 THESE OTHER REPORTS THAT ARE COMING OUT, YOU LOOK AT THE 13:50:24 REACTION, IT STILL BOGGLES THE MIND, THAT WITH THE EXCEPTION OF 13:50:30 THOSE THAT ARE DRILLING IN DEEPER WATER AND DOING IT IN A 13:50:35 SAFE AND EFFECTIVE WAY, SAFETY IS A PRIORITY. 13:50:44 WELL, THOSE ARE BEING DEVELOPED. 13:50:46 YOU'RE TALKING ABOUT INTERNALLY. THEY GO TO THE MMS TO SIGN 13:50:56 OFF. MR. McKAY? 13:50:57 YES. NOW, IF MMS WHO IS THE FED 13:51:06 DRAL REGULATOR, WE HAVE YET TO HAVE A FEDERAL REGULATOR WHO HAD 13:51:16 A DISSISTER. YOU'RE HERE GIVING YOUR TIME TO 13:51:19 TESTIFY. YET THE FEDERAL REGULATOR, 13:51:24 DIRECTLY RESPONSIBLE FOR APPROVING THESE PLANS, WHO 13:51:26 APPROVED THE INSPECTION OF THE BLOWOUT, I THINK THERE'S NO 13:51:38 EXCUSE FOR THAT. IF WE'RE REALLY SERIOUS ABOUT 13:51:39 GETTING TO THE BOTTOM OF THIS INSTEAD OF POLITICS, WE'D HAVE 13:51:40 THE FEDERAL REGULATOR HERE TO TALK ABOUT REAL THINGS THAT THEY 13:51:48 APPROVED. WE HAVE A COPY FROM THE MAJORITY 13:51:50 OF THE SCIENTISTS ON THE PRESIDENT'S OWN COMMISSION. 13:51:56 AND USES THE BASIS FOR BANNING A DRILL AND WE BELIEVED THE REPORT 13:52:05 DOES NOT JUSTIFY THE MORATORIUM AS WRITTEN. 13:52:08 AND COUNTERPRODUCTIVE TO LONG-TERM TO SAFETY. 13:52:11 THE SECRETARY SHOULD BE FREE TO RECOMMEND WHAT HE THINKS IS 13:52:14 CORRECT AND NOT BE FREE TO JUSTIFY HIS POLITICAL DECISIONS. 13:52:20 A MAJORITY OF THE MEMBERS OF THAT COMMISSION THAT THE 13:52:22 SECRETARY OF INTERIOR AND THE PRESIDENT ARE HIDING BEHIND FOR 13:52:25 THE SIX-MONTH BAN, AGAIN, THE PRESIDENT HAS GOT TO STOP 13:52:28 PLAYING POLITICS AND PUTTING POLITICS OVER SCIENCE. 13:52:32 AND ACTUALLY FOCUS ON HIS JOB UNDER THE OIL POLLUTION ACT, 13:52:35 WHICH SHOULD BE DIRECTING THE RESPONSE, MR. McKAY. 13:52:38 YOUR JOB SHOULD BE PAYING THE BILLS. 13:52:40 THE PRESIDENT SHOULD BE THE QUARTERBACK ON THE FIELD. 13:52:45 OUR LOCAL LEADERSHIP SHOULD NOT HAVE TO GO TO YOU. 13:52:47 THAT'S SOMETHING THAT THE PRESIDENT SHOULD BE DIRECTING. 13:52:49 THAT'S SOMETHING THAT NEEDS TO CHANGE. 13:52:50 I WOULD LIKE TO ASK UNANIMOUS CONSENT TO SUBMIT THIS FOR THE 13:52:55 RECORD, THE LETTER OF THE MAJORITY OF THE DEPARTMENT OF 13:52:59 INTERIORS PANEL. THANK YOU. 13:53:01 AND I YIELD BACK. FOR THE RECORD, WE HAVE HAD 13:53:08 TESTIFYING BEFORE THE COMMITTEE THE DEPARTMENT OF INTERIOR, 13:53:13 NOAA, EPA, COAST GUARD, AS WELL AS HAYES, DEPUTY SECRETARY OF 13:53:21 THE DEPARTMENT OF INTERIOR. WILL THE GENTLEMEN YIELD? 13:53:24 I'D BE GLAD TO YIELD. THE ONLY DAY THAT WE HAD 13:53:28 TESTIMONY SCHEDULED BY THE MMS WAS THE DAY THAT THE SECRETARY 13:53:35 W WAS CONVENIENTLY FIRED. 13:53:37 THEY ARE THE ONES THAT SIGNED THIS REPORT. 13:53:39 THEY SIGNED THOSE PLANS. THEY WON'T STILL GIVE US THE 13:53:42 INFORMATION ON THE BLOWOUT PREVENTOR TEST. 13:53:52 THE SAME PERSON THAT CAME TO TESTIFY WAS THE PERSON WHO IS 13:53:59 HIGHER IN THE RANKINGS INSIDE THE DEPARTMENT OF THE INTERIOR, 13:54:03 DAVID HAYES. BUT DOESN'T WORK FOR THAT 13:54:06 AGENCY. UM, THE CHAIR RECOGNIZES THE 13:54:09 MEMBER OF THE SUBCOMMITTEE, THE GENTLEMEN FROM THE YACHT, MR. 13:54:16 E ENGLE. 13:54:17 THANK YOU VERY MUCH. I FIND IT INCREDIBLE THAT SOME 13:54:19 PEOPLE WANT TO BLAME THE PRESIDENT, THE SAME PEOPLE WHO 13:54:23 WANT SMALLER GOVERNMENT AND DON'T WANT THE PRESIDENT TO 13:54:26 INTERVENE IN PRIVATE INDUSTRY ARE THE SAME ONES THAT THINK 13:54:29 THAT THE GOVERNMENT SHOULD INTERVENE AND DO SOMETHING. 13:54:32 I THINK WE'LL HEAR THE PRESIDENT SAY A LOT OF IMPORTANT THINGS 13:54:35 AND SEE THAT HE IS TRYING TO DO A GREAT DEAL. 13:54:40 GENTLEMEN, I WANT TO READ SOME QUOTES AND ASK YOU TO COMMENT ON 13:54:44 IT, THAT SOME OF YOU MADE. IN 2006, MR. TILLISON, INDUSTRY 13:54:50 HAS DEVELOPED THE TECHNOLOGIES AND ACQUIRED THE EXPERIENCE TO 13:54:54 PRODUCE THESE RESOURCES SAFELY AND WITH MINIMAL ENVIRONMENTAL 13:55:00 FOOTPRINT. MR. MULVA, YOU SAID, OUR 13:55:04 INDUSTRY, OUR COMPANY, WE HAVE THE CAPABILITY AND EXPERIENCE TO 13:55:06 DEVELOP THESE RESOURCES AND NOT IN ANY WAY REALLY COMPROMISE 13:55:11 SAFETY AND ENVIRONMENTAL PERFORMANCE. 13:55:12 IN 2005, DAVID O'REILLY, WHO WAS THEN CEO OF CHEVRON, TOLD 13:55:18 CONGRESS THAT ALL OF THE OFFSHORE AREAS CLOSE TO OIL 13:55:21 DRILLING "CAN BE DEVELOPED WITH MINIMAL ENVIRONMENTAL IMPACT." 13:55:25 AND MR. McKAY, IN 2009 YOU TOLD CONGRESS, AND I QUOTE, FOR THOSE 13:55:30 WHO CONTINUE TO QUESTION THE SAFETY OF OFFSHORE ENERGY 13:55:33 OPERATIONS, I CAN ONLY POINT TO OUR RECORD IN THE GULF OF 13:55:38 MEXICO. GENTLEMEN, IF WE CAN'T BELIEVE 13:55:40 WHAT YOU SAID IN THOSE DAYS, HOW CAN WE BELIEVE ANYTHING YOU SAY 13:55:45 NOW AND ANYTHING YOU'RE GOING DO SAY IN THE FUTURE? 13:55:47 I MEAN, WE WERE GIVEN ASSURANCES THAT EVERYTHING WOULD BE FINE. 13:55:51 I KNOW THAT ACCIDENTS HAPPEN BUT THIS IS ONE HELL OF AN ACCIDENT. 13:55:56 WHY SHOULD WE TRUST THE INDUSTRY TO GIVE US ASSURANCES WHEN THOSE 13:56:02 ASSURANCES APPARENTLY MEAN NOTHING? 13:56:06 ANYBODY HAVE AN ANSWER TO ANY OF THE QUOTES? 13:56:09 REX TILLERSON: CONGRESSMAN, I STAND BY MY STATEMENT WITH REGARD TO 13:56:15 EXXONMOBIL'S PERFORMANCE. DO YOU BELIEVE THAT 13:56:19 INDUSTRIES DEVELOPED THE TECHNOLOGY AND ACQUIRED THE 13:56:24 EXPERIENCE TO PRODUCE THIS WITH MINIMAL ENVIRONMENTAL IMPACT? 13:56:29 WHEN THE STANDARDS AND POLICIES ARE FOLLOWED, THAT HAS 13:56:32 BEEN THE CASE. HOW CAN WE FEEL COMFORTABLE 13:56:35 THAT THE PROCESSES AND TECHNOLOGIES WILL BE FOLLOWED? 13:56:38 OBVIOUSLY IT WASN'T FOLLOWED HERE. 13:56:44 ARE YOU ASKING ME OR SOMEONE -- 13:56:46 NO, I'M ASKING YOU. WE DIDN'T HAVE THE PROBLEM. 13:56:49 I CAN'T ANSWER THAT. WELL, LET ME ASK MR. McKAY. 13:56:54 PERHAPS HE CAN ANSWER THAT. THE TRAGIC ACCIDENT THAT HAS 13:57:03 HAPPENED HERE IS GOING TO HAVE A COMBINATION OF FACTORS, WHICH 13:57:08 ARE GOING TO BE DECISION NAL PROCESS AND EQUIPMENT. 13:57:10 THE INVESTIGATIONS ARE EXCEPTIONALLY IMPORTANT TO 13:57:11 UNDERSTAND HOW THAT CHRONOLOGY WORKS AND WHAT CAUSED THIS 13:57:14 ACCIDENT. I DO HAVE CONFIDENCE THAT WE 13:57:16 WILL UNDERSTAND WHAT HAPPENED HERE. 13:57:18 I DO HAVE STRONG CONFIDENCE IN THAT. 13:57:20 I ALSO BELIEVE THAT THERE WILL BE IMPROVEMENTS MADE BECAUSE OF 13:57:25 THOSE LEARNINGS SUCH THAT THE INDUSTRY CAN GET BACK TO WORK. 13:57:27 AND I THINK THAT CAN HAPPEN PRETTY QUICKLY. 13:57:30 MR. McKAY, LET ME ASK YOU THIS. 13:57:35 WHAT REALLY INFURIATES THE AMERICAN PEOPLE, WHAT INFURIATES 13:57:37 ME IS AFTER THE ACCIDENT, EVERY SINGLE DAY, IT SEEMED, THAT BP 13:57:43 WAS TRYING ANOTHER TECHNIQUE, ANOTHER METHOD OF TRYING TO PLUG 13:57:48 THE HOLE AND EACH TIME IT FAILED. 13:57:53 IT'S MIND BOGGLING FOR ME OR FOR ANYONE ELSE TO UNDERSTAND WHY 13:57:59 THERE WERE NOT SAFEGUARDS IN PLACE, TECHNOLOGIES IN PLACE, 13:58:05 MODES OF OPERATION IN SAFE SO THAT IF A DISASTER HAPPENED, YOU 13:58:08 WOULD KNOW IMMEDIATELY WHAT TO DO. 13:58:12 THIS UNFORTUNATELY PARTICULAR INCIDENT THAT OCCURRED WHERE THE 13:58:18 LOWER MARINE RISER PACKAGE, WE HAD 4300 FEET OF RISER ON TOP OF 13:58:28 THAT, AND THE ACCESS TO BE ABLE TO DO ANYTHING FROM THE TOP HAS 13:58:30 BEEN PREVENTED. BUT THAT NEVER OCCURRED TO 13:58:34 ANYONE BEFOREHAND THAT THAT MIGHT HAPPEN? 13:58:36 NOT IN THAT WAY. I DON'T THINK ANYONE COULD 13:58:39 PREDICT THAT. THAT PACKAGE IS SUPPOSED TO 13:58:41 RELEASE FROM THAT BLOWOUT PREVENTER AND IT HAS NOT. 13:58:47 DOESN'T THAT MEAN THAT OIL DRILLING IS INHERENTLY RISKY? 13:58:54 THERE'S RISK IN EVERYTHING. BUT I THINK THE SYSTEMS AND THE 13:58:58 TECHNOLOGY THAT IS AVAILABLE TO THE INDUSTRY AND WILL BE 13:59:00 IMPROVED THROUGH THE LEARNINGS