House Oversight & Government Reform Offshore Drilling Hrg - 1100 SWITCHED
The House Committee on Oversight and Government Reform will hold a hearing to examine issues surrounding the Department of the Interior's oversight of offshore oil drilling, including issues regarding the reorganization of the Minerals Management Service (MMS). The hearing will also examine how the reorganization of MMS, now known as the Bureau of Ocean Energy Management Regulation and Enforcement, will improve the oversight of the offshore oil and gas industry. The hearing will take place at 10:00 a.m. in room 2154 Rayburn House Office Building. SWITCHED CAMERA
House Oversight and Government Reform with Ken Salazar, Michael Bromwich, the Interior IG, Charlotte Randolph, the president of Lafourche Parish, Louisiana and others
11:00:00 PRODUCTION OPERATIONS IN THE GULF THAT LACK FINAL PLANS UNTIL
11:00:03 AN INDEPENDENT THIRD PARTY IS PROVING THAT THEY ARE OPERAING
11:00:09 WITH COMPLETE SETS OF ENGINEER-APPROVED DRAWINGS FOR
11:00:13 THE ABOVE AND BELOW-SEA COMPONENT, MR. BROMWICH SOME
11:00:18 CONGRESSMAN, YOU ARE CORRECT THAT THERE IS AN INVESTIGATION
11:00:21 ONGOING. YOU ARE ALSO CORRECT THAT IT
11:00:22 WILL BE COMPLETED BY THE END OF SEPTEMBER.
11:00:24 I AM ADVISED THAT THERE IS A LETTER ON ITS WAY TO ME THAT
11:00:27 WILL UPDATE YOU AND OTHER INTERESTED MEMBERS OF THE
11:00:30 COMMITTEE WITH WHAT I ANTICIPATE WILL BE PRELIMINARY RESULTS OF
11:00:33 THAT INVESTIGATION. THE TRUTH IS I HAVE SPENT THE
11:00:36 BULK OF THE MONTH SINCE I CAME ONBOARD DEALING WITH VARIOUS
11:00:40 OFFSHOOTS OF THE DEEPWATER HORIZON MATTER.
11:00:43 SO I AM NOT AS FULLY AWARE OF THE ATLANTIS MATTER AS YOU WOULD
11:00:46 LIKE IT TO BE, BUT I WILL MAKE IT MY BUSINESS TO BECOME MORE
11:00:50 KNOWLEDGEABLE ABOUT IT AND BE HAPPY TO TALK TO YOU ABOUT IT
11:00:53 FURTHER IN THE NEAR FUTURE. MR. BROMWICH, I APPRECIATE
11:00:58 THAT RESPONSE, BUT IT WOULD BE USEFUL TO YOU TO REVIEW THE
11:01:02 LETTER SENT BACK IN FEBRUARY, FEBRUARY 20th, 2010, SIGNED BY
11:01:06 19 MEMBERS OF CONGRESS INCLUDING MYSELF WHICH PROVIDES A VERY
11:01:10 POWERFUL WARNING ABOUT THE CONSEQUENCES OF NOT HAVING AN
11:01:16 APPROPRIATE INSPECTION OF THE ISSUE RELATING TO ENGINEERING
11:01:23 PLANS AT THAT BP ATLANTIS PLATFORM.
11:01:25 I WILL REVIEW THAT. YOU UNDERSTAND THE CONCERN.
11:01:26 YOU ARE DEALING WITH A CATASTROPHE FROM THE LACK OF
11:01:30 APPROPRIATE OVERSIGHT AT DEEPWATER HORIZON.
11:01:32 WHAT I'M MAINTAINING TO YOU AND WHAT OTHER MEMBERS OF CONGRESS
11:01:37 HAVE ALL JOINED TOGETHER IN ASSERTING IS THAT LACK OF
11:01:40 APPROPRIATE OVERSIGHT ALSO EXISTS WITH RESPECT TO A BP
11:01:46 ATLANTIS PLATFORM WHICH COULD HAVE EVEN MORE CATASTROPHIC
11:01:53 IMPLICATIONS THAN THE DEEPWATER HORIZON DISASTER.
11:01:56 I THANK THE GENTLEMAN. I YIELD BACK.
11:01:58 IF I MAY, MR. CHAIRMAN, CONGRESSMAN KUCINICH.
11:02:01 I MAY WANT TO SUPPLEMENT WITH WHAT DIRECTOR BROMWICH SAID BY
11:02:06 SAYING THE INVESTIGATION IS UNDER WAY AND HE WILL KEEP YOU
11:02:10 POSTED AS TO THE RESULTS OF THE INVESTIGATION.
11:02:12 NUMBER TWO, WE HAVE SENT INSPECTORS OUT INTO THE GULF TO
11:02:17 LOOK AT THE DRILLING AS WELL AS THE PRODUCTION PLATFORMS AND SO
11:02:21 THERE IS AN ONGOING INSPECTION EFFORT UNDER WAY AND NUMBER
11:02:24 THREE, ONE OF THE THINGS THAT SHOULD COME OUT OF THE LESSONS
11:02:28 LEARNED HERE IS YOU CANNOT HAVE 60 INSPECTORS HAVING THE
11:02:33 RESPONSIBILITY OF CONDUCTING THE MASSIVE JOB THAT HAS BEEN
11:02:36 ASSIGNED TO THESE INSPECTORS AND THAT IS WHY THERE IS A BUDGET
11:02:41 AMENDMENT IN FRONT OF THE CONGRESS TO BEEF UP THE LEVEL OF
11:02:44 INSPECTION AND INVESTIGATION CAPABILITY WITHIN THE AGENCY.
11:02:47 MR. CHAIRMAN, I JUST WANT THIS COMMITTEE TO BE ON NOTICE
11:02:50 THAT WE'VE GOT TO FIND OUT WHETHER BP HAS CERTIFIED
11:02:54 AS-BUILT DRAWINGS ON FILE. THIS IS A SERIOUS MATTER
11:02:59 ESPECIALLY IN LIGHT OF DEEPWATER HORIZON.
11:03:01 THANK YOU. GENTLEMAN'S TIME HAS EXPIRED.
11:03:03 I YIELD FIVE MINUTES TO THE GENTLEMAN FROM FLORIDA,
11:03:06 CONGRESSMAN MICA. WE APPRECIATE YOU BEING HERE,
11:03:09 MR. SECRETARY. I RAISE SOME QUESTIONS IN MY
11:03:13 COUPLE OF MINUTES OF THE OPENING STATEMENT.
11:03:15 I THINK EVERYONE HAS TO BE BAFFLED BY THE ADMINISTRATION'S
11:03:18 DEVELOPMENT OF POLICY. YOU WERE ONE OF THE FIRST PEOPLE
11:03:22 NOMINATED, I THINK BACK BY THE PRESIDENT.
11:03:26 PEOPLE WERE PLEASED. WE HAD SOMEONE FROM THE CONGRESS
11:03:29 AND YOUR EXPERIENCE FROM THE POSITION.
11:03:31 SO YOU CAME IN IN 2009. YOU HAD AN OPPORTUNITY TO
11:03:35 DEVELOP BUDGET AND POLICY, I WOULD IMAGINE, AND I WAS KIND OF
11:03:40 SHOCKED AGAIN WHEN THE STAFF GAVE ME THE BUDGET AND IT SHOWED
11:03:45 CUTS LIKE $2 MILLION IN THE MINERAL MANAGEMENT ENVIRONMENTAL
11:03:51 PERMIT ACTIVITY THAT WAS PROPOSED BY YOUR AGENCY.
11:03:53 DID YOU PARTICIPATE IN MAKING DECISIONS ON THAT OR AGAIN, THE
11:03:58 PRIMARY AGENCY FOR RESPONSE IN THESE KINDS OF DISASTERS WOULD
11:04:02 BE THE COAST GUARD. THE ADMINISTRATION PROPOSED 1100
11:04:07 POSITIONS CUT -- CUTTING ASSETS, SHIPS, PLANES, HELICOPTERS, ALL
11:04:11 OF THE THINGS THAT YOU WOULD USE IN A RESPONSE.
11:04:14 WERE YOU PART OF THE DECISION TO MAKE THOSE CUTS EITHER IN YOUR
11:04:21 AGENCY? MAYBE NOT COAST GUARD?
11:04:23 CONGRESSMAN MICA, WITH RESPECT TO THE BUDGET THAT HAS
11:04:26 BEEN SUBMITTED TO MMS. IF YOU LOOK AT THE TEN-YEAR
11:04:30 HISTORY OF THE BUDGET. THERE HAD BEEN EROSION WITHIN
11:04:33 THE DEPARTMENT OF INTERIOR MMS AS WELL AS WITH ALL --
11:04:38 WITH -- LET ME JUST FINISH, WITH
11:04:40 RESPECT TO THE OTHER AGENCIES IN THE INTERIOR INCLUDING MMS, A
11:04:44 VERY SIGNIFICANT EROSION AFTER WE CAME ONBOARD.
11:04:47 YOU WILL NOTE THAT THE INSPECTORS THAT ARE SET FORTH IN
11:04:50 THE BUDGET FOR MMS ARE A SIGNIFICANT INCREASE FROM WHAT
11:04:55 HAD BEEN THERE IN THE PAST. THE QUESTION THAT WAS
11:04:57 APPROPRIATE FOR THIS COMMITTEE AND FOR THE CONGRESS IS THAT
11:05:00 NUMBER SUFFICIENT AND IN OUR VIEW IT IS NOT.
11:05:02 WE HAVE TO HAVE ADDITIONAL CAPACITY.
11:05:04 ALL I CAN GO BY THE BUDGET ASKED IS IS IF YOU WERE THERE WHEN THE
11:05:07 DECISION WAS MADE TO CUT THE ENVIRONMENTAL REVIEW ACTIVITIES
11:05:11 WHICH ALSO REVIEWED PERMITS AND THEN THE NEXT THING IS THIS IS
11:05:18 FEBRUARY, IT CAME OUT. IN MARCH DID YOU PARTICIPATE IN
11:05:23 THE DECISION TO EXPAND DRILLING IN THE GULF AND OTHER AREAS?
11:05:27 THE -- WERE YOU CONSULTED?
11:05:30 IS THERE ANY DOCUMENTATION? NOT THAT I WAS CONSULTED.
11:05:33 IT WAS MY DECISION, AND IT WAS MY PLAN AND IT'S A PLAN THAT I
11:05:36 AM VERY -- THAT IS A VERY WELL-THOUGHT-OUT PLAN RELATIVE
11:05:42 TO MOVING FORWARD IN A THOUGHTFUL WAY THAT CHANGES THE
11:05:45 DIRECTION THAT WE WERE GOING ON IN THE OC IS THAT DOES DIFFERENT
11:05:48 THINGS WITH RESPECT TO WHAT WAS BEING PLANNED ON THE ATLANTIC
11:05:51 AND THE -- AND THE DIFFERENT THINGS THAT WAS BEING PLANNED IN
11:05:54 ALASKA AND BRINGS IN THE KIND OF ENVIRONMENTAL REVIEWS THAT ARE
11:05:59 NECESSARY. AGAIN, LET'S GO TO THAT.
11:06:02 YOU WERE THERE WHEN THEY ISSUED THIS ONE-PAGE PERMIT AND THIS IS
11:06:05 THE PERMIT TO DRILL FOR BP, ONE-PAGE.
11:06:10 THIS IS BACKED UP BY A 500-PAGE CLEANUP SPILL PLAN.
11:06:16 I'M SURE YOU DIDN'T REVIEW THIS, BUT YOU TOLD ME THAT PEOPLE WHO
11:06:21 ARE RESPONSIBLE IN ALL WERE FIRED AND PEOPLE CHANGED.
11:06:26 HAVE WE GOT THAT ORGANIZATION CHART?
11:06:28 THE GUY THAT WAS RESPONSIBLE FOR SIGNING THIS.
11:06:31 WE'VE GOT TWO PEOPLE HERE AND TOLBERT SIGNED IT FOR SAUCIER.
11:06:40 HE'S STILL THERE. HE'S GOT THAT CIRCLE THERE, THAT
11:06:43 YELLOW THING. SO HE WASN'T FIRED.
11:06:47 HE GAVE CARTE BLANCHE. THIS IS THE APPROVAL FOR BP TO
11:06:50 DRILL AND THE CONDITIONS BY WHICH THEY DRILL AND IT REFERRED
11:06:54 TO A 500-PAGE DOCUMENT. THAT 500-PAGE DOCUMENT I'VE --
11:07:02 MY STAFF TELLS ME IT HAS BILL PROVISIONS FOR SEALS AND
11:07:10 WALRUSES AND POLAR BEARS. NONE OF WHICH I HAVE IN THE
11:07:13 GULF. IT LOOKS LIKE THIS IS ALL SORT
11:07:16 OF CARTE BLANCHE APPROVAL. IS THAT WHAT IT APPEARS TO BE?
11:07:20 AND IS THIS GUY GOING TO GET FIRED OR ANYONE -- AND THIS GUY
11:07:25 IS STILL MAKING THE DECISIONS. THIS IS SAUCIER AND HERE MAKING
11:07:30 THE DECISION ON IMPLEMENTING THE MORATORIUM.
11:07:34 CONGRESSMAN MICA, LET ME RESPOND WITH TWO POINTS.
11:07:39 FIRST, WHILE IT IS TRUE THAT PEOPLE COMMITTED BOTH CRIMINAL
11:07:45 AND ETHICAL CONDUCT THAT IS -- WRONG --
11:07:49 AND HE IS RESPONSIBLE -- LET ME FINISH, CONGRESSMAN
11:07:53 MICA. THE REALITY OF IT IS THAT THERE
11:07:56 ARE VERY -- THERE ARE MANY GOOD PEOPLE WITHIN THE AGENCY.
11:08:00 THERE ARE SOME BAD PEOPLE AND THOSE ARE BEING DEALT WITH.
11:08:03 WITH RESPECT TO THE DOCUMENT THAT YOU'RE REFERRING TO AND
11:08:07 WITH RESPECT TO PEOPLE THAT WERE INVOLVED CONCERNING THE
11:08:10 APPROVALS OF THE MA CONNEDA WELLS, I HAVE ASKED THE
11:08:14 INSPECTOR GENERAL TO TAKE A LOOK AT THAT AND THEY HAVE TAKEN OUR
11:08:17 OWN INDEPENDENT REVIEW WHICH WE'LL BE HAPPY TO SHARE WITH
11:08:20 MEMBERS OF THIS COMMITTEE. I APPRECIATE A LIST AND THE
11:08:24 STATUS OF THOSE HELD RESPONSIBLE.
11:08:27 THANK YOU. MAYBE WE CAN SUBMIT THAT TO THE
11:08:29 COMMITTEE. WITHOUT OBJECTION.
11:08:30 NOW I YIELD FIVE MINUTES TO THE GENTLE LADY FROM CALIFORNIA,
11:08:38 MISS BEARD. THANK YOU, MR. CHAIRMAN.
11:08:41 THANK YOU TO THE SECRETARY AND MR. BROMWICH.
11:08:43 A SERIES OF QUESTIONS. FROM THE OUTSIDE THERE IS AN
11:08:47 ETHICAL CRISIS AT MMS, WHETHER YOU CHANGE THE NAME OR NOT,
11:08:51 THERE HAS BEEN A HISTORY OF DRUGS, SEX, ROCK 'N' ROLL
11:08:57 CONCERTS AND I AM CONCERNED BASED ON THE POST ARTICLE TODAY
11:09:02 THAT SAYS THERE IS A MUCH HIGHER DEGREE OF REVOLVING DOOR THAT
11:09:06 EXISTS IN THE OIL INDUSTRY THAN ANYWHERE ELSE IN THAT THREE OUT
11:09:11 OF EVERY FOUR LOBBYISTS HAD SOME RELATIONSHIP TO THE GOVERNMENT.
11:09:17 WE KNOW THERE ARE 12 FORMER EMPLOYEES OF MM IS THAT ARE NOW
11:09:22 LOBBYING FOR THE OIL INDUSTRY. MR. BROMWICH AND SECRETARY, I
11:09:25 WOULD LIKE TO KNOW WHAT YOU'RE GOING TO DO NOW TO FREEZE OUT
11:09:30 THOSE 12 FORMER EMPLOYEES FROM INTERACTING WITH MMS?
11:09:34 WELL, WE WILL CERTAINLY MAKE SURE THAT THEY OBSERVE THE
11:09:38 CURRENT ETHICAL RULES THAT EXIST, THAT RESTRICT THEIR
11:09:43 CONTRACTS TO SOME EXTENT, BUT ONE OF THE THINGS I HAVE TO DO
11:09:45 IS TO GATHER INFORMATION FROM PEOPLE WHO HAVE THE INFORMATION,
11:09:49 IF THEY HAPPEN TO BE FORMER EMPLOYEES OF THE AGENCY.
11:09:54 I'M NOT GOING TO EXCLUDE THEM FOR THAT REASON, BUT I'M
11:09:56 CERTAINLY NOT GOING TO GIVE THEIR INFORMATION ANY MORE
11:09:59 WEIGHT THAN ANYONE ELSE'S. I AGREE.
11:10:01 I READ THE SAME ARTICLE YOU DID AND I'M TROUBLED BY IT.
11:10:06 I THINK WHAT I CAN TELL YOU AND TELL THE COMMITTEE IS THAT
11:10:09 YOU'LL NEVER SEE ME IN THAT POSITION.
11:10:12 I'LL SAY RIGHT NOW THAT I'LL SELF-IMPOSE A LIFETIME BAN ON
11:10:17 CONTACTS WITH THE AGENCY, AND I HOPE THAT SETS AN EXAMPLE FOR
11:10:21 OTHER PEOPLE IN THE AGENCY AND OTHER PEOPLE THROUGHOUT
11:10:24 GOVERNMENT. I AGREE IT IS UNSEEMLY.
11:10:26 I GUESS FROM OUR PERSPECTIVE, CAN YOU TAKE ACTION INDEPENDENT
11:10:30 OF CONGRESS PASSING A BILL TO RESTRICT FORMER EMPLOYEES FROM
11:10:34 HAVING ACCESS TO THE AGENCY? WELL, LET ME GIVE YOU AN
11:10:37 EXAMPLE. I'VE ACTUALLY MET WITH TWO OF
11:10:39 THE FORMER DIRECTORS WHO ARE NOW PART OF TRADE ASSOCIATIONS
11:10:43 WITHIN THE LAST COUPLE OF WEEKS. THAT WAS AT YOUR REQUEST.
11:10:46 NO. IT WAS AT THEIR REQUEST, BUT I
11:10:48 AM IN THE BUSINESS RIGHT NOW OF TRYING TO GATHER INFORMATION
11:10:51 FROM A VARIETY OF SOURCES, INCLUDING FROM TRADE
11:10:55 ASSOCIATIONS BECAUSE THEY HAVE RELEVANT INFORMATION TO PROVIDE
11:10:58 BEARING ON SOME OF THE ISSUES THAT THE SECRETARY AND I ARE
11:11:01 WORKING ON. I'M GOING TO GIVE THEM A
11:11:04 HEARING, BUT I'M ALSO GOING TO GIVE ALL OTHER GROUPS INCLUDING
11:11:08 ENVIRONMENTAL GROUPS, INCLUDING --
11:11:10 I UNDERSTAND THAT. I HAVE A LIMITED AMOUNT OF TIME.
11:11:13 OKAY. MY QUESTION WAS CAN YOU ACT
11:11:16 INDEPENDENT OF CONGRESS IN CREAING SOME RESTRICTIONS
11:11:18 AROUND ACCESS TO THE AGENCY AFTER EMPLOYEES HAVE LEFT?
11:11:21 YES, WE CAN, BUT WE NEED TO DO IT IN A THOUGHTFUL WAY.
11:11:25 SO YOU REPORT BACK ONCE YOU DECIDED WHAT YOU WILL DO WITH
11:11:29 THE COMMITTEE? SURE.
11:11:30 THE GAO REPORT TO THIS COMMIT I INDICATED THAT THE REVENUE
11:11:35 SHARE THE GOVERNMENT COLLECTS FOR OIL AND GAS PRODUCED IN THE
11:11:37 GULF RANKS 93rd OUT OF 104 REVENUE COLLECTION REGIMES
11:11:45 AROUND THE WORLD. I THINK MOST OF US FIND THAT
11:11:48 STUNNING AND SHOCKING. WHAT ARE YOU GOING TO DO TO
11:11:55 CHANGE THAT SO THAT THE ROYALTIES BEING RECEIVED FROM
11:12:01 THE GULF ARE REFLECTIVE OF THE WORLD AS A WHOLE.
11:12:07 AT LEAST THE INTERNATIONAL AVERAGE OF ROYALTIES RECEIVED
11:12:09 AROUND THE WORLD? CONGRESSWOMAN SPEAR, LET ME
11:12:14 JUST SAY THAT THE ROYALTY ISSUE IN GETTING A FAIR RETURN TO THE
11:12:18 AMERICAN TAXPAYER IS FOREMOST IN OUR MINDS.
11:12:21 WE HAVE BEEN WORKING ON IT IT. WE HAVE BEEN WORKING ON IT AND
11:12:26 WE HAVE WAYS TO CHANGE HOW TO MAKE THE AMERICAN TAX PAYER IS
11:12:31 GETTING A FAIR RETURN ON ROYALTIES, NOT ONLY ON THE
11:12:33 OFFSHORE, BUT ALSO ON THE OFFSHORE WHEN YOU HAVE A
11:12:37 CIRCUMSTANCE THAT IS WORSE WHEN YOU HAVE THE SAME ROYALTY RATE
11:12:39 THAT EXISTED SINCE THE 1920 MINERAL LEASING ACT AT 12.5%.
11:12:44 SO WE ARE MAKING THE KINDS OF CHANGES THAT WILL BRING IN THE
11:12:48 RIGHT LEVEL OF ROYALTIES AND AT THE SAME TIME MAKE SURE THAT
11:12:51 THERE IS ACCOUNTABILITY WITH RESPECT TO THE AUDITING
11:12:55 FUNCTIONS RELATING TO THAT. AND WHEN WILL THOSE BE PUT
11:12:58 INTO PLACE AND DO YOU NEED CONGRESSIONAL ACTION TO DO THAT
11:13:03 IN. WE ARE WORKING ON IT.
11:13:06 WE ARE MOVING FORWARD WITH IT. IT IS BEING PUT INTO PLACE AS WE
11:13:10 SPEAK. THE ROYALTY WAS PART OF THAT
11:13:13 EFFORT. THAT'S GOOD NEWS TO HEAR.
11:13:14 ONE LAST QUESTION. MY UNDERSTANDING ALONG WITH
11:13:18 CONGRESSMAN MICA'S REFERENCE IS THAT THIS PARTICULAR 600-PAGE
11:13:22 DOCUMENT WAS REVIEWED BY TWO PEOPLE FOR A TOTAL OF TEN HOURS.
11:13:28 SO BY ANYONE'S MEASUREMENT IT WAS INADEQUATE.
11:13:32 I DON'T CARE IF YOU'RE A SPEED READER, THERE IS IS NO WAY THAT
11:13:36 IN TEN HOURS YOU CAN GIVE THE KIND OF ATTENTION TO THAT
11:13:40 DOCUMENT. WHAT ARE YOU DOING MOVING
11:13:41 FORWARD TO MAKE SURE THE EMPLOYEES DOING THAT KIND OF
11:13:45 REVIEW ARE BOTH QUALIFIED AND HAVE ADEQUATE AMOUNT OF TIME TO
11:13:48 DO THE REVIEW? WITH THE REORGANIZATION THAT
11:13:52 WE HAVE PUT ON THE TABLE AND THE RESOURCES THAT WE HAVE ASKED
11:13:56 FROM CONGRESS TO BE ABLE TO DO THE RIGHT KIND OF WORK IN
11:14:00 ENSURING SAFETY AND ENSURING ENVIRONMENTAL PROTECTION SHOULD
11:14:04 ADDRESS THOSE ISSUES. THE GENTLE LADY'S TIME IS
11:14:09 EXPIRED. I YIELD TO THE GENTLEMAN TURNER.
11:14:13 THANK YOU. MR. SECRETARY, I HAVE A FEW
11:14:16 ITEMS ON A TIMELINE THAT LEAD UP TO THE EXPLOSION IN THE OILFIELD
11:14:25 AND THE OIL LEAK. I WOULD LIKE TO GO OVER SOME OF
11:14:28 THOSE ITEMS AND GET YOUR RESPONSES.
11:14:30 WE FOCUSED A LOT ON WHAT HAPPENED AFTER THE EXPLOSION AND
11:14:33 I WOULD LIKE TO FOCUS ON THE PERIOD LEADING UP TO IT.
11:14:36 I WOULD LIKE THE TIMELINE INCLUDED IN THE RECORD.
11:14:38 THE TIMELINE BEGINS WITH JANUARY 29, 2009, AND THE SECRETARY
11:14:43 BEING DECLARED AND THE SECRETARY IS APPOINTED ON THAT DATE AND
11:14:47 DECLARES HIMSELF THE NEW SHERIFF IN TOWN.
11:14:49 THIS IS JANUARY 2009. IN FEBRUARY 2009 IN A
11:14:54 SITE-SPECIFIC EXPLORATION PLAN FILED BY BP, IT STATES THAT IT
11:14:58 WAS, QUOTE, UNQUOTE, NOT REQUIRED TO FILE A SCENARIO FOR
11:15:02 A POTENTIAL BLOWOUT OF THE DEEPWATER WELL.
11:15:05 MARCH IN 2009 AS WE HAVE A NEW SHERIFF IN TOWN, A
11:15:09 WHISTLE-BLOWER BROUGHT FORTH AN ISSUE OF A SAFETY BREACH BY BP
11:15:12 IN THE GULF OF MEXICO TO THE ATTENTION OF MMS.
11:15:15 QUOTE, THE WHISTLE-BLOWER WHO WAS HIRED TO OVERSEE THE
11:15:18 COMPANY'S DATABASES THAT HOUSE DOCUMENTS RELATED TO ITS
11:15:22 ATLANTIS PROJECT DISCOVERED THE DRILLING PLATFORM HAD BEEN
11:15:25 OPERATED WITHOUT THE MAJORITY OF THE ENGINEER-APPROVED DOCUMENTS
11:15:28 THAT NEEDED TO RUN SAFELY. NO ACTION WAS TAKEN BY THE
11:15:31 AGENCY, BUT THE MOST IMPORTANT THING WAS TWO MONTHS AFTER THE
11:15:34 WHISTLE-BLOWER CAME FORWARD IN MAY 2009, MMS FAILS TO PERFORM A
11:15:41 STANDARD MONTHLY INSPECTION OF THE DEEPWATER HORIZON.
11:15:45 WHAT HAPPENED IN THE SECRETARY'S OFFICE IN MAY 2009, OUR INTERIOR
11:15:49 SECRETARY IS SPEAKING AT THE WIND ENERGY CONFERENCE IN
11:15:53 CHICAGO. JUNE 2009 MMS PROPOSES NEW RULES
11:15:56 TO REQUIRE OIL AND GAS OPERATORS TO REQUIRE AND IMPLEMENT SAFETY
11:16:00 AND ENVIRONMENTAL SYSTEMS FOR OFFSHORE DRILLING.
11:16:03 THE RULE IS STILL NOT FINALIZED ONE MONTH AND ONE YEAR LATER.
11:16:06 IN JUNE OF THAT SAME MONTH THESE RULES WERE PROVIDED, BUT NOT
11:16:12 FINALIZED. SECRETARY SALAZAR HIRES SILVIA
11:16:15 BACA AWAY FROM BP AMERICA TO BECOME HIS DEPUTY ASSISTANT
11:16:18 SECRETARY OF LAND AND MATERIALS MANAGEMENT ACCORDING TO THIS
11:16:22 TIMELINE. SUMMER 2009, THE MMS AWARDS
11:16:26 TRANSOCEAN'S U.S. GULF OF MEXICO OPERATION A SAFETY AWARD FOR
11:16:31 EXCELLENCE AND OUR SECRETARY DIRECTED MMS TO BEGIN FOCUSING
11:16:34 ON PROMOTING WIND ENERGY. ELIZABETH BIRNBAUM ASSUMES
11:16:38 DUTIES AS DIRECTOR OF MMS. THE NEW YORK TIMES RECORDED THAT
11:16:42 QUOTE NR PARTICULARLY AND TASKED WITH HANDLING THE ISSUE OF THE
11:16:47 25-MILE CAPE WIND FARM OFF OF CAPE COD.
11:16:50 WHAT HAPPENS THE NEXT MONTH AUGUST 2009, MMS FAILS TO
11:16:54 PERFORM A STANDARD MONTHLY EXPANSION OF DEEPWATER HORIZON.
11:16:59 AUGUST OF THAT SAME MONTH, WHITE HOUSE -- AT THE WHITE HOUSE'S
11:17:03 REQUEST, SECRETARY SALAZAR TAKES A BREAK FROM HER WIND ENERGY
11:17:06 EFFORTS TO BEGIN THE BIG EFFORT OF SELLING HEALTH CARE REFORM.
11:17:10 AUGUST 2009, YOU TRAVELED THROUGHOUT THE WEST TO TOUT
11:17:14 OBAMA'S STIMULUS PLAN. I UNDERSTAND FROM THIS TIMELINE
11:17:16 THAT ON THE 21st OF AUGUST THAT YOU WERE IN GRAND CANYON SOUTH
11:17:20 RIM ON THE HIGHLIGHTING 10.8 MILLION STIMULUS DOLLARS.
11:17:27 8/20, YOU WERE IN UTAH. $3.6 MILLION STIMULUS DOLLARS
11:17:32 AND ON THE 20th YOU WERE IN OREGON ON STIMULUS DOLLARS.
11:17:35 THE VERY NEXT MONTH THE NATIONAL OCEANIC ATMOSPHERIC
11:17:40 ADMINISTRATION SENT MMS A LETTER ABOUT THE OFFSHORE DRILLING
11:17:43 PROPOSAL SAYING MMS UNDERSTATED ENVIRONMENTAL IMPACTS OF THE NEW
11:17:47 DRILLING PROPOSAL. SEPTEMBER 8th OF THAT MONTH,
11:17:52 SALAZAR SAYS DURING AN INTERVIEW AT REUTERS SAYS ROOT NOW WE ARE
11:17:58 FOCUSED ON HEALTH CARE REFORM. IN FACT, KRSHS REPORTS IN
11:18:01 NOVEMBER 2009 THAT ANTICIPATING A STRUGGLE THE WHITE HOUSE
11:18:05 DEPUTIZED KEN SALAZAR AND FORMER SENATE MAJORITY LEADER TOM
11:18:09 DASCHLE TO JOIN VICE PRESIDENT JOE BIDEN IN TRYING TO CLEAR THE
11:18:12 WAY FOR HEALTHCARE BILLS OVERHAUL OF THE NEXT FEW WEEKS,
11:18:16 BUT MMS IS IS BUSY. MMS HAS A RENEWABLE ENERGY TASK
11:18:21 FORCE MEETING IN RHODE ISLAND, MASSACHUSETTS, AND NEW JERSEY
11:18:24 AND WITH ALL OF THIS ACTIVITY HAPPENING IN NOVEMBER, WHAT
11:18:27 HAPPENS IN THE GULF IN DECEMBER? DECEMBER 2009, MMS FAILS TO
11:18:34 PERFORM THE STANDARD MONTHLY INSPECTION OF DEEPWATER HORIZON?
11:18:39 THEY AGAIN FAILED TO PERFORM THE INSPECTION IN JANUARY AND THEN
11:18:43 THROUGH A SERIES OF NOTIFICATIONS THAT BP PROVIDES
11:18:47 TO THE AGENCY, THE SPECIFICATIONS FROM DEEPWATER
11:18:51 ARE CONTINUED TO BE ADJUSTED. MMS RESPONDING IN SEVEN MINUTES
11:18:54 TO ONE REQUEST FOR MODIFICATION, 4.5 MINUTES TO ANOTHER AFTER
11:18:59 HAVING ROUTINELY NOT SHOWN UP FOR STANDARD INSPECTIONS AND IN
11:19:03 APRIL, THE DEEPWATER HORIZON RIG EXPLODES AND THEN SINKS, AND I
11:19:10 BELIEVE THE SECRETARY IS THERE BY APRIL 30th AFTER ATTENDING ON
11:19:16 APRIL 27th, PARTICIPATING IN A CEREMONY ON WIND TURBINES.
11:19:22 APRIL 28th, ANNOUNCING THE APPROVAL OF THE CAPE WIND
11:19:27 PROJECT AND THEN YOUR ATTENDING IN THE GULF TO TAKE A LOOK AT
11:19:30 WHAT HAS OCCURRED. THE GENTLEMAN'S TIME.
11:19:33 A SIGNIFICANT AMOUNT INACTIVITY.
11:19:35 THE GENTLEMAN'S TIME HAS EXPIRED.
11:19:39 I BELIEVE MY STAFF HAS A COPY OF THE TIMELINE WHICH I CAN ALSO
11:19:42 PROVIDE TO YOU. MR. CHAIRMAN RESPOND EVEN
11:19:45 THOUGH THE GENTLEMAN'S TIME HAS EXPIRED.
11:19:50 THE FACT IS THE UNITED STATES DEPARTMENT OF THE INTERIOR HAS A
11:19:53 MAJOR MISSION TO PROTECT AND PRESERVE THE NATURAL RESOURCES
11:19:57 OF AMERICA BOTH ONSHORE AS WELL AS OFFSHORE AS WELL AS BEING THE
11:20:02 CUSTODIAN OF AMERICA'S MISSION AND ON THAT MISSION WE WORK ON
11:20:05 THE SET OF ISSUES RELATING TO NATIVE AMERICANS AND ALTHOUGH
11:20:08 THE OTHER ASSIGNMENTS THAT WE HAVE WITHIN THE DEPARTMENT OF
11:20:12 THE INTERIOR. SPECIFICALLY WITH RESPECT TO
11:20:15 MANY OF THE THINGS THAT YOU CITE IN THERE, I HAVE SPENT PROBABLY
11:20:20 MORE TIME ON THE COMPREHENSIVE ENERGY PROGRAM FOR THE NATION
11:20:23 THAT THE PRESIDENT AND I HAVE BEEN CHAMPIONING THAN ON ALMOST
11:20:28 ANY OTHER ISSUE, BUT I CAN TELL YOU WITHIN THE COMPREHENSIVE
11:20:31 ENERGY PLAN, WE ARE CONFIDENT THAT WE WILL SEE AND FOLD FOR
11:20:35 THIS NATION THAT WE WILL HAVE A BROAD ENERGY PORTFOLIO THAT WILL
11:20:38 INCLUDE OIL AND GAS AND AT THE SAME TIME INCLUDE THE NEW ENERGY
11:20:44 FRONTIER OF SOLAR, WIND AND GEOTHERMAL THAT WE HAVE WORKED
11:20:48 ON VERY HARD. I WILL SAY THIS TO YOU, MR.
11:20:51 TURNER, THAT WITHOUT EQUIVOCATION, WE HAVE SPENT A
11:20:54 HUGE AMOUNT OF TIME WITH RESPECT TO ALL OF THE ISSUES RELATING TO
11:20:59 MMS AND THEY HAVE INCLUDED CHANGING THE ETHICS CULTURE
11:21:03 MOVING FORWARD WITH A NEW DIRECTION ON THE SHELF FROM WHAT
11:21:07 WAS LEFT OVER FROM THE PRIOR ADMINISTRATION AND MOVING
11:21:10 FORWARD TO STANDING UP, A RENEWABLE ENERGY PROGRAM.
11:21:14 SO WE WORK HARD. WE COVER A LOT OF GROUND AND WE
11:21:18 HAVE A LOT OF GROUND TO COVER IN THE FUTURE.
11:21:21 THANK YOU VERY MUCH, THE GENTLEMAN'S TIME HAS EXPIRED,
11:21:24 AND I NOW YIELD FIVE MINUTES TO THE GENTLEMAN FROM CALIFORNIA,
11:21:30 MISS CHU. THANK YOU, MR. CHAIR.
11:21:35 WE KNOW THAT THE BLOWOUT PREVENTERS FAILED WITH BP WITH
11:21:39 ENORMOUSLY TRAGIC CONSEQUENCES. IT'S MY UNDERSTANDING THAT AN
11:21:42 INSPECTOR DOES NOT ACTUALLY HAVE TO WITNESS IN PERSON THE BLOWOUT
11:21:46 PREVENTER TEST, BUT CAN SIMPLY REVIEW PAPERWORK FROM THE OIL
11:21:50 COMPANY OPERATORS AND THEY CAN BASICALLY TAKE THEIR WORD FOR
11:21:54 IT. WE KNOW THAT THESE TESTS CAN BE
11:21:57 SUCCESSFULLY FAKED AS ILLUSTRATED BY SEVERAL CASES.
11:22:02 THIS PRACTICE IS JUST UNIMAGINABLE AND CUTS CORNERS
11:22:06 AND COMPROMISES THE OVERSIGHT OF THE VALIDITY OF THE TEST.
11:22:10 SO HOW -- HOW WAS THE REORGANIZATION OF MMS WORK TO
11:22:14 IMPROVE THESE INSPECTION PRACTICES AND WHAT SPECIFIC
11:22:17 IMPROVEMENTS DO YOU ANTICIPATE MAKING TO MAKE THE BOP TEST
11:22:23 EFFECTIVE AND WHAT ARE YOUR THOUGHTS ABOUT HAVING THESE
11:22:27 TYPES OF TESTS CERTIFIED BY INDEPENDENT THIRD PARTY
11:22:31 INSPECTORS SELECTED BY FEDERAL REGULATORS AND NOT THE OIL
11:22:34 COMPANIES? CONGRESSWOMAN CHU, IT IS A
11:22:37 VERY GOOD QUESTION AND SOMETHING WHICH WE HAVE BEEN WORKING ON
11:22:40 THAT RELATES TO TWO PARTS, THE REFORMS WITHIN THE OCS AND THE
11:22:44 FIRST OF THOSE IS HAVING THE RIGHT STANDARDS IN PLACE AND
11:22:48 MANY OF THOSE STANDARDS WERE SET FORTH IN THE 30-DAY REPORT WHICH
11:22:53 PRESIDENT OBAMA DIRECTED THEY DELIVER TO HIM.
11:22:55 MANY OF THOSE STANDARDS ARE BEING IMPLEMENTED WITH RESPECT
11:22:58 TO THE NOTICE THAT DIRECTOR BROMWICH SPOKE ABOUT A LITTLE
11:23:01 BIT EARLIER AND THEN FINALLY WITH RESPECT TO THE ENFORCEMENT
11:23:05 OF THOSE STANDARDS THERE NEEDS TO BE A SIGNIFICANTLY BEEFED UP
11:23:11 EFFORT WITH RESPECT TO THE AGENCY'S INSPECTION CAPABILITIES
11:23:15 BECAUSE RIGHT NOW IT IS A FOOL'S ERRAND TO THINK THAT 60
11:23:20 INSPECTORS CAN ESSENTIALLY COME OUT AND INSPECT ALL OF THE
11:23:25 DIFFERENT OCS FACILITIES INCLUDING PRODUCTION FACILITIES
11:23:29 THAT ARE OUT THERE. SO YOU WILL BE COMING
11:23:31 FORTHWITH NEW REGULATIONS PERTAINING TO THIS PARTICULAR
11:23:34 PRACTICE? YES.
11:23:37 WELL, THEN IT LEADS TO ANOTHER QUESTION WHICH IS ABOUT
11:23:42 NEW REGULATIONS AND ONE OF THE PROBLEMS WITH THE CURRENT
11:23:47 REGULATORY SYSTEM IS THAT IT TAKES A LONG TIME FOR ANY
11:23:50 IMPROVEMENTS AND IN FACT, IT TOOK NINE YEARS FOR REGULATIONS
11:23:54 RELATED TO PIPELINE SAFETY TOE WORK ITS WAY THROUGH THE PROCESS
11:23:56 AND TAKE EFFECT. SO HOW WILL THE REORGANIZATION
11:24:01 OF MMS WORK TO RESOLVE THIS ISSUE OF DELAYED IMPLEMENTATION
11:24:05 OF NEW AND NECESSARY REGULATIONS?
11:24:10 THE REORGANIZATION ITSELF, THERE WILL BE TWO PARTS ESSENTIALLY
11:24:15 DEALING WITH THE SHELF BEYOND THE REVENUE SITE AND ONE OF THEM
11:24:20 WILL BE TO PROVIDE THE SAFETY AND ENFORCEMENT AND WE WILL MAKE
11:24:24 SURE THAT WE ARE MOVING FORWARD TO ADDRESS ALL OF THE ISSUES AND
11:24:28 ALL OF THE LESSONS TO BE LEARNED FROM THIS TRAGEDY.
11:24:32 BUT MY QUESTION IS HOW LONG WILL IT TAKE AND WHAT WILL YOU
11:24:35 DO TO MAKE SURE THAT IT'S ACCELERATED?
11:24:39 CONGRESSWOMAN CHU, I THINK SOME PEOPLE MIGHT SAY THAT WE
11:24:42 SHOULD HAVE WAITED FOR ANOTHER SIX MONTHS, EIGHT MONTHS UNTIL
11:24:46 WE FOUND OUT EXACTLY ALL OF THE RESULTS OF ALL OF THE
11:24:49 INVESTIGATIONS. OUR VIEW FROM DAY ONE HAS BEEN
11:24:53 THAT WE WOULD WORK ON THE ISSUE AS FAST AS WE CAN AND SO THE
11:24:59 30-DAY REPORT THAT WAS DELIVERED TO THE PRESIDENT IS THE REPORT
11:25:02 THAT HAS MANY RULES AND REQUIREMENTS AND STANDARDS WHICH
11:25:05 ARE ALREADY BEING IMPLEMENTED AND SOME OF THEM NOTICE THE LESS
11:25:09 SEES AND SOME OF THEM THROUGH RULE MAKING THAT WILL BE
11:25:14 CONDUCTED BY DIRECTOR BROMWICH. FINALLY, LET ME ASK THIS.
11:25:18 UNDER THE TWO INTERIOR DEPARTMENT REGULATIONS, OIL
11:25:22 COMPANIES USE MODELS DEVELOPED BY MMS TO PREDICT THE OIL
11:25:26 REACHING THE SHORE FOLLOWING A SPILL.
11:25:28 IN THE DEEPWATER HORIZON CASE, THESE MODELS INCORRECTLY
11:25:31 PREDICTED THAT THERE WAS A 0% LIKELIHOOD OF OIL REACHING BOTH
11:25:37 SHORES IN FLORIDA, ALABAMA AND LOUISIANA.
11:25:42 IT SUGGESTS, OF COURSE, THAT THESE MODELS ARE OUTDATED AND
11:25:45 THAT THE REGULATIONS RELATING TO THE OIL RESPONSE PLANS NEED TO
11:25:50 BE REVISITED. SO MY QUESTION IS DOES MMS NEED
11:25:53 TO RE-EXAMINE ALL OF THESE OIL SPILL RESPONSE PLANS
11:25:57 PARTICULARLY WITH REGARD TO THESE KINDS OF PREDICTIONS WHICH
11:26:01 ARE CLEARLY INCORRECT AND WAY OFF AND HOW WILL THE MMS
11:26:06 REORGANIZATION HELP THIS PROCESS?
11:26:08 THE ANSWER IS YES ON DRILLING SAFETY AND CONTAINMENT MEASURES
11:26:12 AND OIL SPILL RESPONSIBILITIES AND I WOULD LIKE DIRECTOR
11:26:15 BROMWICH TO COMMENT ON THAT AS WELL.
11:26:18 YOU ARE QUITE RIGHT, CONGRESSWOMAN, THAT THE OIL
11:26:22 SPILL RESPONSE PLANS ARE PLAINLY INADEQUATE AND THAT IS ONE
11:26:25 SUBJECT ON WHICH I WILL BE GATHERING INFORMATION ON THE
11:26:28 PUBLIC FORUMS THAT WE WILL BE HOLDING OVER THE NEXT MONTH AND
11:26:32 A HALF WITH AN EYE TOWARD NOT ONLY INSISTING ON THE SHORT TERM
11:26:35 FOR REGULATIONS THAT THOSE OIL SPILL RESPONSE PLANS BE
11:26:39 SUBSTANTIALLY REVISED IF THEY'RE GOING TO PASS MUSTER, BUT ALSO
11:26:42 WITH AN EYE TOWARD GETTING OUT NEW REGULATIONS IN THE FUTURE
11:26:46 AND WE'LL MAKE SURE THAT THAT'S THE STANDARD FROM NOW ON.
11:26:49 AND YOU'RE REVIEWING ALL OF THE PLANS?
11:26:52 YES. GENTLEWOMAN'S TIME HAS
11:26:56 EXPIRED, AND I YIELD TO THE GENTLEMAN FROM TENNESSEE AND LET
11:27:00 ME ALSO WISH HIM HAPPY BIRTHDAY. WELL, I HAVE THE HONOR OF
11:27:04 SHARING A BIRTHDAY YESTERDAY WITH THE CHAIRMAN AND HE SENT ME
11:27:08 A NOTE SAYING THAT HE THINKS WE SHOULD MAKE IT A NATIONAL
11:27:12 HOLIDAY. THAT WAS A VERY NICE NOTE.
11:27:19 MR. SECRETARY, THANK YOU FOR COMING HERE.
11:27:22 I'VE SAT THROUGH HEARINGS IN THE TRANSPORTATION COMMITTEE AND THE
11:27:25 RESOURCES COMMITTEE ON THE BP OIL SPILL AND IN BOTH OF THOSE
11:27:29 HEARINGS THE WITNESSES HAVE MENTIONED THAT OVER 40,000 WELLS
11:27:33 HAVE BEEN DRILLED IN THE GULF SINCE 1960 AND MY STAFF GOT
11:27:42 INFORMATION FROM YOUR DEPARTMENT EARLIER TODAY SAYING SINCE 1947
11:27:46 MORE THAN 50,000 WELLS HAVE BEEN DRILLED IN THE GULF OF MEXICO
11:27:50 AND IT'S -- WOULD YOU NOT AGREE IT'S AN -- IT'S ALMOST AN
11:27:57 ASTONISHINGLY SAFE, CLEAN HISTORY THAT WE HAVE THERE IN
11:27:59 THE GULF? I MEAN, THERE HAVE BEEN ALMOST
11:28:02 NO -- THERE'S BEEN ANYTHING EVEN CLOSE TO THIS BP SPILL.
11:28:07 IN FACT, I'M TOLD THERE ARE MORE SPILLS OUT OF SHIPS THAN THERE
11:28:11 ARE FROM THESE RIGS. CONGRESSMAN DUNCAN, I AGREE
11:28:15 WITH YOU. IN FACT, I THINK IT WAS THAT
11:28:18 HISTORY OF SAFETY OVER ALL OF THOSE TIMES, 50,000 WELLS WHICH
11:28:23 ESSENTIALLY WAS THE IMPERICAL FOUNDATION UPON WHICH THE
11:28:27 NATIONAL FRAMEWORK HAS BEEN BUILT WITH RESPECT TO THE OIL
11:28:31 AND GAS PRODUCTION IN THE OUTER CONTINENTAL SHELF.
11:28:35 I AM TOLD THERE ARE NOW 3600 STRUCTURES IN THE GULF RIGHT
11:28:41 NOW. GOVERNOR ENGLER WROTE A COLUMN
11:28:45 FOR "THE WASHINGTON TIMES" A FEW WEEKS AGO AND SAYS DRILLING
11:28:50 MORATORIUM IS A JOBS MORATORIUM. HE SAID THE MORATORIUM
11:28:54 IMMEDIATELY SHUT DOWN 33 DEEPWATER RIGS IN THE GULF
11:28:58 INCLUDING 22 NEAR LOUISIANA. THIS ACTION COULD COST 3,000 TO
11:29:04 6,000 LOUISIANA JOBS IN THE NEXT TWO TO THREE WEEKS AND
11:29:07 POTENTIALLY 20,000 BY THE END OF NEXT YEAR.
11:29:10 FOR EVERY ONE EMPLOYEE ON AN OIL RIG, THERE ARE NINE EMPLOYEES
11:29:14 ONSHORE SUPPORTING THAT ONE EMPLOYEE.
11:29:17 THAT'S -- THAT'S MY MAIN CONCERN BECAUSE NOT ONLY DID I READ THIS
11:29:23 BY GOVERNOR ENGLER, BUT REPEATEDLY, I'VE SEEN ON THE
11:29:27 NEWS REPORTS THAT THESE OIL WORKERS IN THE GULF AREA ARE
11:29:31 ALMOST IN A PANIC SITUATION ABOUT ALL OF THE THOUSANDS OF
11:29:37 JOBS THAT ARE BEING DESTROYED AND ARE TO BE DESTROYED.
11:29:42 CONGRESSMAN DUNCAN, LET ME JUST SAY THAT WE, TOO, ARE
11:29:46 CONCERNED AND WE ARE AWARE OF THE ISSUES OF OUR VIEW AND MY
11:29:50 VIEW IN ISSUING THE MORATORIUM THAT IT WAS THE RIGHT WAY TO
11:29:53 MOVE FORWARD TO PUT THE PAUSE BUTTON IN PLACE UNTIL WE CAN
11:29:57 ANSWER THREE FUNDAMENTAL QUESTIONS.
11:29:59 DRILLING SAFETY AND BLOWOUT CONTAINMENT CAPABILITY AS WELL
11:30:03 AS OIL SPILL RESPONSE CAPABILITY.
11:30:06 IF WE WERE TO HAVE ANOTHER ONE IN THE GULF OF MEXICO TODAY OR
11:30:10 NEXT WEEK, WE COULD NOT HAVE THE OIL SPILL RESPONSE CAPABILITY TO
11:30:14 DEAL WITH THOSE BLOWOUTS. THE EFFORT WHICH EXXON, SHELL
11:30:17 AND CHEVRON AND CONOCO PHILLIPS CAME UP WITH YESTERDAY IS THE
11:30:23 BEGINNING POINT OF THAT CONVERSATION RELATIVE TO HOW WE
11:30:25 ADDRESS ONE OF THOSE THREE FUNDAMENTAL ISSUES AND DIRECTOR
11:30:30 BROMWICH'S SET OF MEETINGS WILL HELP US ANSWER THOSE THREE
11:30:32 FUNDAMENTAL QUESTIONS SO WE CAN DETERMINE HOW TO MOVE FORWARD
11:30:35 WITH RESPECT TO THE PAUSE BUTTON IN PLACE.
11:30:39 ON ANOTHER POINT, THE COLUMNIST AND COMMENTATOR WHOI
11:30:43 THINK ALMOST EVERYBODY AGREES EVEN IF THEY DON'T AGREE WITH
11:30:46 HIM, THEY THINK HE'S ONE OF THE SMARTEST MEN IN THIS CITY.
11:30:50 HE WROTE RECENTLY, ENVIRONMENTAL CHIC HAS DRIVEN US OUT THERE.
11:30:55 HE ASKED WHY WE WERE DRILLING IN 5,000 FEET OF WATER IN THE FIRST
11:30:59 PLACE. EN INCHMENTAL CHIC HAS DRIVEN US
11:31:02 OUT THERE, THEY HAVE RENDERED THE PACIFIC AND NEARLY ALL OF
11:31:05 THE ATLANTIC COAST OFF LIMITS TO OIL PRODUCTION AND OF COURSE, IN
11:31:08 THE SAFEST OF ALL PLACES ON LAND, WE'VE HAD A 30-YEAR BAN IN
11:31:12 THE ARCTIC WILD LIFE REFUGE. I'VE SEEN ARTICLES THAT SAY
11:31:16 SOMETHING LIKE 83% OR 84% OF THE CONTINENTAL SHELF IS OFF LIMITS
11:31:21 TO OIL PRODUCTION AND THAT -- THAT ALSO IS A CONCERN OF MINE
11:31:27 AND THEN FINALLY, BEFORE MY TIME RUNS OUT I'LL SAY TO MR.
11:31:34 BROMWICH, I'M CONCERNED WE'VE CHANGED THE NAME AND THERE SEEMS
11:31:38 TO BE A GOAL OF EMPHASIZING ENFORCEMENT, AND I'M JUST
11:31:43 WONDERING, ARE WE GOING HAVE A GOTCHA-TYPE AGENCY NOW?
11:31:48 BECAUSE MOST OF THESE COMPANIES, LET'S FORGET ABOUT BP.
11:31:52 LET'S CONSIDER THEM A BAD ACTOR, BUT MOST OF THESE COMPANIES ARE
11:31:56 DOING A GOOD JOB AND COMPLYING WITH ALL THE LAWS.
11:31:59 I AGREE WITH YOU. WE'RE NOT GOING HAVE A GOTCHA
11:32:03 CULTURE, BUT WE'RE GOING TO HAVE CLEAR RULES AND WE'RE GOING TO
11:32:06 HAVE AGGRESSIVE INSPECTIONS AND VIOLATIONS OF THOSE CLEAR RULES
11:32:10 WILL BE DEALT WITH SEVERELY. I THINK THAT'S THE RIGHT KIND OF
11:32:14 REGULATORY REGIME TO HAVE. IF YOU FIND A VIOLATION ARE
11:32:17 YOU GOING TO GIVE THE COMPANY A CHANCE TO CORRECT IT OR ARE YOU
11:32:20 IMMEDIATELY GOING TO COME DOWN ON THEM AND SHUT THEM DOWN?
11:32:23 THAT'S A FACT-SPECIFIC DETERMINATION AND WE'LL HAVE TO
11:32:26 TAKE IT ON A CASE-BY-CASE BASIS. THE GENTLEMAN'S TIME HAS
11:32:31 EXPIRED. I RECOGNIZE THE GENTLEMAN FROM
11:32:33 MARYLAND, CONGRESSMAN CUMMINGS. THANK YOU VERY MUCH, MR.
11:32:37 CHAIRMAN. SECRETARY SALAZAR.
11:32:38 ONE OF THE THINGS THAT WE ARE -- THAT WE HAD WITH THE COAST GUARD
11:32:44 SUB COMMITET AND TRANSPORTATION COMMITTEE AND ONE OF THE THINGS
11:32:48 THAT WE WERE CONCERNED ABOUT IS THE -- WHAT ROLE DO YOU ALL SEE
11:32:52 THE COAST GUARD PLAYING IN THE FUTURE?
11:32:56 YOU KNOW, THE LEGISLATION PASSED BY THE COMMITTEE ON
11:33:00 TRANSPORTATION INFRASTRUCTURE WILL REQUIRE MUCH MORE
11:33:03 SIGNIFICANT ROLE FOR THE COAST GUARD AND THE APPROVAL OF THE
11:33:06 OIL SPILL RESPONSE PLANS WHICH IS CRUCIAL GIVEN THAT THE COAST
11:33:09 GUARD IS RESPONSIBLE FOR MANAGING THE RESPONSE TO THE
11:33:14 SPILLS. SO WHAT STEPS, IF ANY, MMS AND
11:33:20 THE COAST GUARD TAKING NOW TO STRENGTHEN THE ROLE OF THE COAST
11:33:23 GUARD AND BY THE WAY, THAT'S BEEN ONE OF THEIR COMPLAINTS
11:33:26 THAT THEY'RE ASKED TO BE RESPONSIBLE FOR OVERSEEING THE
11:33:30 CLEANUP, BUT THEY DON'T HAVE ENOUGH SAY IN CREATING THE PLAN.
11:33:36 DID YOU KNOW THAT? THEY'VE ACTUALLY TESTIFIED TO
11:33:41 THAT. EITHER ONE OF YOU.
11:33:43 CONGRESSMAN CUMMINGS, IF I MAY, THE ROLE THAT WE HAVE SEEN
11:33:48 PLAY OUT WITH RESPECT TO THE RESPONSE WITH THE DEEPWATER
11:33:52 HORIZON BLOWOUT AND THE BP OIL SPILL HAS BEEN ONE THAT WE HAVE
11:33:56 BEEN WORKING WITH HAND IN HAND WITH ADMIRAL ALLEN AS THE
11:33:59 NATIONAL INCIDENT COMMANDER AND IT'S BEEN CONTINUOUS.
11:34:03 WE WILL LOOK BACK AT THE DEEPWATER HORIZON TRAGEDY AND
11:34:06 LOOK AT THE LESSONS LEARNED INCLUDING THE CAPACITY THAT ARE
11:34:11 OUT THERE WITH RESPECT TO THE COAST GUARD AND OTHERS, BUT THE
11:34:14 FACT OF THE MATTER IS THE RELATIONSHIP IN TERMS OF THE
11:34:20 STRUCTURE HAS BEEN SET UP TO RESPOND TO THE OIL SPILL
11:34:23 RESPONSE HAS WORKED WELL BETWEEN INTERIOR AND THE COAST GUARD AND
11:34:27 OTHER AGENCIES THAT ARE ALSO INVOLVED.
11:34:31 I'VE GOT TO TELL YOU AGAIN, WE'VE HAD TESTIMONY WITHIN THE
11:34:36 LAST THREE WEEKS AND I WILL GET YOU THAT INFORMATION WHERE THEY
11:34:42 HAVE TOLD US THAT THEY WANT -- AND THIS IS NOT ADMIRAL ALLEN.
11:34:48 THEY WANT MORE SAY IN THE DEVELOPMENT OF THE RESPONSE, THE
11:34:54 EMERGENCY RESPONSE PLAN BECAUSE THEY JUST FEEL LIKE, BY THE
11:34:58 TIME, IF YOU'RE GOING TO CALL ON THEM TO OVERSEE THE CLEANUP,
11:35:02 THEY SHOULD BE MORE INVOLVED THAN IN THE BEGINNING.
11:35:05 I'LL GET THAT TO YOU. YOU MIGHT WANT TO TAKE A LOOK AT
11:35:09 THAT. I'M SURPRISED YOU DIDN'T KNOW
11:35:11 THAT. LET ME SAY THIS, CONGRESSMAN
11:35:14 CUMMINGS. THE FACT THAT THE OIL SPILL
11:35:16 RESPONSE ISSUE IS IS ONE OF THE THREE MOST CENTRAL ISSUES THAT
11:35:19 WE'RE LOOKING AT AND THAT ISSUE WILL NECESSARILY INVOLVE --
11:35:24 SHOULD INVOLVE AND WILL INVOLVE, I WILL MAKE SURE IT HAPPENS, A
11:35:28 CLOSE COLLABORATION WITH THE COAST GUARD BECAUSE WE'RE NOT
11:35:31 GOING TO MOVE FORWARD UNTIL WE HAVE AN ASSUREDNESS WITH RESPECT
11:35:36 TO THE ADEQUACY OF OIL SPILL RESPONSE PLANS.
11:35:41 MR. SECRETARY, ALTHOUGH THE DEEP-WATER HORIZON WAS
11:35:45 REGISTERED IN THE REPUBLIC OF THE MARSHALL ISLANDS, HAS
11:35:55 TESTIFIED BEFORE THE JOINT MMS COAST GUARD PANEL SAYING THAT
11:35:59 THE RMI AS A FLAG STATE DID NOT INSPECT THE DRILLING EQUIPMENT &
11:36:04 ON THE DEEP WATER. HE INDICATED THAT SUCH
11:36:07 INSPECTION ARE LEFT UP TO THE MMS AND WE UNDERSTAND THAT MMS
11:36:11 OFTEN RELIES ON KEY TESTS AND THAT MMS INSPECTORS ONLY REVIEW
11:36:17 THE PAPERWORK ASSOCIATED WITH THE TEXT.
11:36:20 HOW IS IT THAT ADEQUATE -- HOW CAN WE MAKE SURE THAT WE HAVE
11:36:27 ADEQUATE -- THAT IS, APPROVAL OF THESE -- OF THESE REPORTS?
11:36:33 BECAUSE THERE'S A QUESTION OF INSPECTION THAT SOME OF THE
11:36:37 INSPECTIONS ARE NOT ACTUALLY DONE BY OUR PEOPLE, BUT THEY'RE
11:36:41 DONE BY THE MARSHALL ALLEN FOLK AND PEOPLE THEY CONTRACT SO HOW
11:36:47 CAN WE GUARANTEE THAT THOSE INSPECTIONS WHICH ARE SO
11:36:50 IMPORTANT ARE PROPERLY DONE? LET ME SAY FIRST THERE WERE
11:36:54 INSPECS CONDUCTED OF THE DEEPWATER HORIZON INCLUDING
11:36:57 INSPECTIONS IN APRIL AND TESTING INCLUDING OF THE BLOWOUT
11:37:00 PREVENTER THAT OCCURRED IN THE DAYS LEADING UP TO THE
11:37:03 EXPLOSION. SECONDLY, WE WILL HAVE A
11:37:08 SIGNIFICANTLY MORE ROBUST INSPECTION REGIME AND IT'S PART
11:37:11 OF WHAT DIRECTOR BROMWICH WILL BE WORKING ON AND HE MAY WANT TO
11:37:16 COMMENT ON THAT. THAT'S ABSOLUTELY RIGHT.
11:37:18 THOSE ARE ONE OF THE THINGS WE'LL BE FOCUSING ON MOST
11:37:21 INTENTLY. THE IMPORTANT INSPEINSPECTIONS
11:37:26 TO BE DONE BY HUMAN BEINGS AND HUMAN BEINGS WITH EXPERIENCE AND
11:37:30 DEMONSTRATED COMPETENCE AND AN ARM'S LENGTH RELATIONSHIP AT
11:37:33 LEAST TO THE ENTITIES THAT OWN THE FACILITIES.
11:37:36 I SEE MY TIME IS UP. THANK YOU VERY MUCH.
11:37:40 THE SECRETARY HAS GOT LEAVE AT 12, AND I'M GOING TO TRY TO
11:37:43 GET IN AS MANY MEMBERS AS WE CAN BEFORE THEY HAVE TO LEAVE BEFORE
11:37:48 THEY GO TO VOTE. MR. BURTON, FIVE MINUTES.
11:37:51 YOU KNOW, 50,000 WELLS HAVE BEEN DRILLED IN THE GULF WITHOUT
11:37:59 A PROBLEM, AND YET THE PRESIDENT PUT A MORATORIUM ON THE
11:38:04 DRILLING, AND AS A RESULT YOU'VE HAD SOME OF THE RIGS GO TO
11:38:10 EGYPT, TO THE CONGO. IN CANADA THEY'RE TALKING ABOUT
11:38:20 NEW WELLS DIGGING UP TO 6,000 FEET AND WE'LL LOSE THE WELLS
11:38:26 AND THEY'LL PROBABLY NOT COME BACK FOR A LONG, LONG TIME.
11:38:29 IT MAKES NO SENSE TO ME TO CUT OFF THE DRILLING IN THE GULF
11:38:34 WHEN YOU'VE NOT HAD ANY REAL PROBLEMS EXCEPT FOR THIS ONE
11:38:39 CATASTROPHE, AND I JUST DON'T UNDERSTAND WHY THE
11:38:42 ADMINISTRATION HAS TAKEN THIS CARTE BLANCHE APPROACH.
11:38:45 CAN YOU EXPLAIN THAT? CONGRESSMAN BURTON, HAVING
11:38:51 BEEN INVOLVED IN THIS MATTER IN RESPONSE TO THE DEEPWATER
11:38:55 HORIZON BLOWOUT EVERY SINGLE DAY SINCE THE BLOWOUT, I CAN TELL
11:38:58 YOU THAT THERE ARE THREE FUNDAMENTAL QUESTIONS THAT HAVE
11:39:01 TO BE ANSWERED BEFORE WE TAKE OUR HAND OFF THE PAUSE BUTTON
11:39:05 AND THOSE ARE THE ISSUES OF DRILLING SAFETY AND OIL WELL
11:39:11 BLOWOUT CONTAINMENT AS WELL AS OIL SPILL RESPONSE CAPACITIES
11:39:15 THAT'S WHAT WE ARE WORKING ON WITH DIRECTOR BROMWICH AS WELL
11:39:21 WITH A WHOLE HOST OF OTHER EFFORTS.
11:39:23 YOU'VE ALREADY STATED THAT THERE'S MORE OF A CHANCE FROM A
11:39:26 LEAK OF A TANKER THAN THERE IS FROM ONE OF THESE RIGS.
11:39:30 IT JUST DOESN'T MAKE ANY SENSE WITH A 50,000 DRILLING OF WELLS
11:39:34 IN THE GULF AND YOU HAVE ONE SPILL THAT YOU WILL CUT OFF
11:39:37 EVERYTHING AND THE RIGS ARE ALREADY MOVING TO BRAZZAVILLE
11:39:42 AND THE CONGO AND WE SENT THEM TO DRILL IN DEEPWATER AREAS.
11:39:48 SO WHAT WE'RE DOING, IN EFFECT, IS SHOVING OIL PRODUCTION AWAY
11:39:52 FROM THE UNITED STATES AND WE'RE COSTING US JOBS WHEN THERE IS
11:39:56 REALLY NO REASON FOR IT EXCEPT FOR THIS ONE EXCEPTION AND WHAT
11:40:00 YOU'RE TALKING ABOUT, IN MY OPINION, IT DOESN'T MAKE A GREAT
11:40:04 DEAL OF SENSE. I WANT TO ASK YOU A COUPLE OF
11:40:06 OTHER QUESTIONS REALLY QUICK. I HAVE A VIDEO I WOULD LIKE TO
11:40:10 SHOW YOU REALLY QUICK. IT'S ABOUT 15 SECONDS LONG.
11:40:14 SO CAN YOU CUE UP THAT VIDEO? SALAZAR AND NAPOLITANO HAVE
11:40:22 BEEN ON THE ISLANDS THREE TIMES. IT'S A PHOTO-OP?
11:40:26 I DON'T KNOW. DO YOU HAVE CONTACT ON THE
11:40:28 STOCK LEVEL? EVERY TIME NAPOLITANO AND
11:40:38 SALAZAR HAS COME ON TO GRAND ISLE THEY GO ON A BOAT OR
11:40:41 HELICOPTER AND SOMETHING LIKE THAT.
11:40:43 THEY'VE NEVER MET WITH LOCAL HOMELAND SECURITY.
11:40:46 I DON'T THINK THEY'VE MET WITH ANYONE IN TOWN.
11:40:48 SHE DROVE PAST ME LAST TIME AND I WAS STANDING AT THE AIRPORT
11:40:51 WAITING FOR YOU TO COME IN AND SHE DROVE RIGHT PAST ME.
11:40:53 WELL, THIS IS DINO BONANO WHO IS THE HOMELAND SECURITY
11:41:00 DIRECTOR DOWN THERE AND THE FIRE CHIEF MARK SCARDINO.
11:41:05 THEY SAID YOU'VE NEVER BEEN DOWN TO THAT PARISH AND THAT'S ONE OF
11:41:08 THE MOST TOXIC AREAS THAT'S BEEN HIT SINCE THE SPILL TOOK PLACE.
11:41:13 WHY HAVEN'T YOU BEEN DOWN THERE? CONGRESSMAN BURTON, FIRST OF
11:41:17 ALL, WE BELIEVE THAT THE LAST COUNT THAT I SAW HAD 11 TIMES
11:41:23 THAT WE HAD BEEN IN THE GULF COAST STATES --
11:41:25 THIS IS ONE OF THE HARDEST HIT.
11:41:28 I HAVE BEEN THROUGH LOUISIANA, ALABAMA, MISSISSIPPI,
11:41:32 FLORIDA. I DON'T KNOW THE EXACT PARISH BY
11:41:35 PARISH, BUT LET ME JUST SAY SINCE APRIL 20th AND EVEN BEFORE
11:41:41 THAT, I SPENT A LOT OF TIME ON THE GULF COAST AND I CONTINUE TO
11:41:44 SPEND A LOT OF TIME DOWN THERE AND WILL AND WILL WORK
11:41:48 RELENTLESSLY ON THIS PROBLEM UNTIL WE GET IT FIXED AND WE
11:41:51 CHARGE THE WAY FORWARD -- IT SEEMS LIKE THIS WOULD HAVE
11:41:55 BEEN ONE OF THE TOP PRIORITIES. I DON'T UNDERSTAND WHY YOU
11:41:58 WEREN'T THERE AND THEY WERE COMPLAINING VERY VIGOROUSLY THAT
11:42:01 YOU HAD IGNORED THEIR PROBLEMS THERE.
11:42:03 THE PRESIDENT, THE VICE PRESIDENT AND MEMBERS OF THE
11:42:05 CABINET HAVE BEEN DOWN THERE COUNTLESS TIMES.
11:42:08 MY ASSISTANT SECRETARY -- MY ASSISTANT SECRETARY FOR FISH AND
11:42:11 WILD LIFE HAS TAKEN 17 TRIPS DOWN INTO THAT AREA TO DEAL WITH
11:42:15 THESE ISSUES. YOU'RE THE GUY.
11:42:17 YOU SHOULD HAVE BEEN THERE, IN MY OPINION.
11:42:19 THE LAST THING I WANT TO ASK IS I KNOW THE JONES ACT WAS
11:42:24 REFERRED TO. THERE WERE A NUMBER OF COUNTRIES
11:42:26 THAT WANTED TO BRING SKIMMERS IN AS SOON AS THIS THING TOOK
11:42:30 PLACE. WE COULD HAVE ELIMINATED AN
11:42:32 AWFUL LOT OF THESE ECOLOGICAL PROBLEMS IF THOSE SKIMMERS HAD
11:42:35 BEEN BROUGHT IN. WHY IN THE WORLD DID WE LET THE
11:42:39 OTHER COUNTRIES BRING IN THE SKIMMERS AS FAST AS POSSIBLE.
11:42:43 I DISAGREE WITH YOU. THE JONES ACT HAS NOT KEPT A
11:42:46 SINGLE VESSEL FROM COMING INTO THE COUNTRY, NUMBER ONE.
11:42:49 WE HAVE A SHORTAGE OF SKIMMING VESSELS HAS NOT BEEN AN ISSUE
11:42:52 AND THE JONES ACT WAS WANT AN ISSUE.
11:42:54 WHY WEREN'T THEY ALLOWED IN. THAD ALLEN AND THE NATIONAL
11:43:01 INCIDENT COMMANDER HAD BEEN IN CHARGE.
11:43:03 THE GENTLEMAN'S TIME HAS EXPIRED.
11:43:08 THANK YOU, MADAM CHAIR. MY INTENT WASN'T TO REBUT MY
11:43:12 REPUBLICAN COLLEAGUES IN THE HEARING, BUT GIVEN WHAT WAS JUST
11:43:15 SAID ABOUT THE EXCEPTION OF THIS DISASTER, IT'S LIKE SUGGESTING
11:43:20 THAT 9/11 WAS AN EXCEPTION TO AIR TRAFFIC CONTROL REGULATIONS
11:43:23 AND THAT WE SHOULDN'T REACT TO THAT.
11:43:25 THE FACT IS THAT THIS HAS BEEN AN ENVIRONMENTAL DISASTER AND
11:43:29 THE FACT THAT WE SHOULD LOOK AT THE REGULATION A PREEP ATLY OF
11:43:33 OIL WELLS IN THE GULF AND I THINK IT'S VERY APPROPRIATE THAT
11:43:36 THE ADMINISTRATION TAKE THE STEPS THAT IT HAS TO MAKE SURE
11:43:39 THAT ALL OF THE WELLS ARE SAFE. I FURTHER HEARD MY REPUBLICAN
11:43:45 COLLEAGUING IS THAT ITS LUM TAGDZS ON ONSHORE DRILLING AND
11:43:48 OTHER PARTS OF THE COUNTRY THAT IS DRIVING BP AND OTHERS TO GO
11:43:52 TO THE GULF UPON I ASSUME THAT THEY'RE MAKING MONEY IN THE GULF
11:43:56 THAT THE REASON THEY HAVE THIS IN THE GULF IS BECAUSE THEY HAVE
11:43:59 OIL WELLS THERE AND THEY'RE MAKING MONEY, IS THAT CORRECT?
11:44:02 THAT'S CORRECT. THE REASON BP AND OTHER OIL
11:44:05 COMPANIES ARE, IN FACT, DRILLING IS BECAUSE THEY'RE MAKING A
11:44:10 PROFIT IN THE GULF? THAT IS CORRECT.
11:44:13 I WOULD LIKE TO MOVE ON AND I THINK THE ISSUE HERE IS ONE
11:44:16 THAT'S IMPORTANT AND IT GOES BACK TO THE 2005 ENERGY ACT AND
11:44:19 THE ISSUE OF CATEGORICAL EXCLUSIONS.
11:44:22 I AM CONCERNED, AS ARE OTHERS WITH REGARD TO THE NUMBER OF
11:44:26 CATEGORICAL EXCLUSIONS THAT WE HAVE SEEN FOR WELLS IN THE GULF,
11:44:29 AND I WOULD APPRECIATE IF YOU WOULD HELP US BETTER UNDERSTAND
11:44:33 HOW CATEGORICAL EXCLUSIONS ARE DETERMINED AND WHETHER OR NOT BP
11:44:39 ADVOCATED EXCLUSIVELY FOR CATEGORICAL EXCLUSIONS FOR THE
11:44:42 DRILLING OPERATIONS IN THE GULF. CONGRESSMAN, LET ME JUST SAY,
11:44:48 FIRST OF ALL THAT JUST BACK ON THE MORATORIUM, IT WAS A PRUDENT
11:44:52 POSITION THAT WE HAVE TAKEN AND I APPRECIATE THE SUPPORT THAT
11:44:55 YOU ECHO FOR THE MORATORIUM BECAUSE OF THE FUNDAMENTAL
11:44:59 ISSUES THAT WE DO NEED TO HAVE ADDRESSED.
11:45:01 SECONDLY, WITH RESPECT TO THE QUESTION ON CATEGORICAL
11:45:05 EXCLUSIONS, THEY APPEAR AT A TIME WHEN AFTER SIGNIFICANT
11:45:09 ENVIRONMENTAL ANALYSIS HAS BEEN DONE BECAUSE THE PROCESS IN
11:45:12 DEVELOPING A FIVE-YEAR PLAN, YOU DO AN ENVIRONMENTAL IMPACT
11:45:16 STATEMENT BEFORE YOU ISSUE AND HAVE A LEASE SALE THERE'S
11:45:21 ANOTHER ENVIRONMENTAL IMPACT STATEMENT REVIEWED BEFORE A SALE
11:45:26 HAPPENS. THE CATEGORICAL EXCLUSION IN THE
11:45:27 GULF OF MEXICO WHICH HAS BEEN GRANTED TO MORE THAN BP.
11:45:30 THOSE OCCUR IN LARGE PART BECAUSE THERE IS A 30-DAY WINDOW
11:45:34 OF APPROVAL REQUIRED BY STATUTE WHEN AN EXPLORATION PLAN ITSELF
11:45:40 IS FILED AS PART OF THE LEASING AND DEVELOPMENT PROCESS.
11:45:43 SO WE'VE ASKED THE CONGRESS TO EXTEND THAT 30-DAY WINDOW TO THE
11:45:48 90-DAY WINDOW, AND I HOPE THAT IT IS SOMETHING THAT YOU ENACT
11:45:52 IN THE OIL SPILL LEGISLATION BEFORE YOU.
11:45:54 WHEN YOU SAY THE 30-DAY WINDOW IS IN STATUTE.
11:45:58 WHEN WAS THAT 30-DAY WINDOW IMPLEMENTED AND WHY WAS IT ONLY
11:46:01 30 DAYS AND WHO ADVOCATED FOR THE 30-DAY WINDOW?
11:46:05 I DO NOT HAVE THE SPECIFICS ON WHEN THAT REQUIREMENT WAS PUT
11:46:09 INTO THE LAW, BUT I CAN GET THAT FOR YOU.
11:46:13 DO YOU BELIEVE -- WHAT IS YOUR OPINION AS TO HOW LONG IT
11:46:16 SHOULD BE FOR THE REVIEW? YOU SAID 90 DAYS.
11:46:19 IS 90 DAYS APPROPRIATE. 30 DAYS I BELIEVE IS TOO SHORT,
11:46:24 AND I DO THINK WHAT WE NEED TO DO ESPECIALLY IN PLACES LIKE THE
11:46:28 GULF OF MEXICO, YOU HAVE TREMENDOUS ENVIRONMENTAL
11:46:31 INFORMATION AND REVIEWS THAT HAVE BEEN CONDUCTED AND SO WE
11:46:34 JUST NEED TO MAKE SURE THAT THE ENVIRONMENTAL REVIEWS THAT ARE
11:46:38 BEING CONDUCTED ARE WORTHWHILE AND THAT WE'RE DOING THE RIGHT
11:46:43 THING IN TERMS OF THE AIM OF THE ENVIRONMENTAL ANALYSIS WHICH IS
11:46:47 TO UNDERSTAND WHAT IMPACTS THEY'LL BE TO THE ENVIRONMENT
11:46:51 AND THE ACTIVITY. DO YOU BELIEVE THERE'S BEEN
11:46:53 AN OVERUSE OF CATEGORICAL EXCLUSIONS UNDER THE PREVIOUS
11:46:58 ADMINISTRATIONS AND IN THE 30-DAY WINDOW IS A PRIMARY CAUSE
11:47:01 OF THAT? I DO BELIEVE THAT THERE WAS
11:47:04 AN OVERUSE OF THE CATEGORICAL EXCLUSIONS AND INDEED WITH
11:47:08 RESPECT TO WHAT WE'VE DONE ON THE ONSHORE UNDER THE BUREAU OF
11:47:11 LAND MANAGEMENT IS THAT WE HAVE CHANGED THAT PRACTICE AND
11:47:14 OBVIOUSLY, WE ARE NOW CONDUCTING A COMPREHENSIVE REVIEW WITH THE
11:47:20 COUNCIL OF THE QUALITY RELATIVE WITH THE CHANGES THAT WILL
11:47:25 HAPPEN. THANK YOU, MADAM CHAIR, I
11:47:29 YIELD BACK. MR. MURPHY?
11:47:32 THANK YOU VERY MUCH, MADAM CHAIR.
11:47:33 I KNOW WE'RE ABOUT TO GO TO VOTES AND SECRETARY SALAZAR,
11:47:37 YOU'VE BEEN GREAT TO SPEND TIME WITH US.
11:47:39 I APPRECIATE YOUR RESPONSE TO MR. BURTON'S QUESTION.
11:47:43 WE COULD BE FOR DAYS ON END IF WE WOULD PLAY SINGLE INDIVIDUALS
11:47:46 THAT WERE UPSET THAT ONE PARTICULAR FEDERAL OFFICIAL
11:47:50 DIDN'T VISIT THEM. I THINK WE'RE VERY LUCKY TO HAVE
11:47:52 YOU IN THIS POSITION. SO MANY OF US HAVE BEEN
11:47:55 IMPRESSED BY YOUR IMMEDIATE AND ROBUST RESPONSE TO THIS TRAGEDY
11:48:00 AND MR. BROMWICH, YOU HAVE A REPUTATION AS A NO-NONSENSE
11:48:05 ADMINISTRATOR IN EVERYTHING YOU'VE DONE, AND I THINK YOU'RE
11:48:07 THE RIGHT GUY FOR THE JOB. I JUST HAVE A COUPLE OF QUICK
11:48:10 QUESTIONS. ONE RELEVANCE OF FUNDING SOURCE
11:48:13 IS MOVING FORWARD. THE REORGANIZATION AS YOU SPLIT
11:48:17 INTO THREE DIFFERENT ENTITIES WILL REQUIRE MORE PEOPLE IN AND
11:48:20 OF ITSELF AND THREE DIRECTORS AND THREE OFFICERS OF
11:48:23 CONGRESSIONAL RELATIONS AND WE KNOW THAT WE NEED MORE PEOPLE TO
11:48:26 DO THE INSPECTION WORK. AS YOU LOOK DOWN THE ROAD AT HOW
11:48:30 YOU THINK THE AGENCY SHOULD BE FUNDED AND YOU LOOK AT A
11:48:35 POTENTIAL DIMINISHING RELIANCE ON ROYALTY PAYMENTS.
11:48:39 HOW DO YOU EXPECT THAT MOVING FORWARD THE NEW FUNCTIONS OF
11:48:44 THESE AGENCIES ARE GOING TO BE FUNDED?
11:48:47 CONGRESSMAN MURPHY, THANK YOU FOR YOUR COMMENTS.
11:48:51 WE ARE IN THE MIDST OF WORKING WITH THE APPROPRIATORS IN
11:48:56 DEVELOPING THE BUDGET AMENDMENT TO MAKE SURE THAT THE FUNDING IS
11:49:00 THERE TO BE ABLE TO DO THE JOB. AND THE FUNDING SOURCES
11:49:07 THEMSELVES THEY'LL BE PART OF THE DISCUSSION TO ENGAGE WITH
11:49:10 CONGRESS ON. WITH RESPECT TO ROYALTY
11:49:13 PAYMENTS. DO YOU HAVE IDEAS AS TO WHAT
11:49:16 COMPONENTS WILL BE -- CONTINUE TO BE FUNDED BY ROYALTY PAYMENTS
11:49:20 OR WHAT COMPONENTS YOU NO LONGER WANT TO BE FUNDED WITH RESPECT
11:49:24 TO THOSE PAYMENTS. THAT IS PART OF THE REVIEW THAT
11:49:27 WE CURRENTLY HAVE IN THE IMPLEMENTATION PROGRAMS THAT WE
11:49:30 ARE DEVELOPING. AND MAYBE I'LL DIRECT THIS
11:49:34 QUESTION TO MR. BROMWICH AND I WOULD BE HAPPY TO HAVE THE
11:49:37 SECRETARY WEIGH IN AS WELL. ONE OF THE THINGS THAT HAS BEEN
11:49:40 OF GREAT FRUSTRATION TO US IS THE TECHNOLOGY THAT WE'RE USING
11:49:44 RIGHT NOW TO DEAL WITH THIS, BILL.
11:49:46 AND THE FACT THAT WE'VE HAD A FAIRLY SLOW PACE OF INNOVATION
11:49:50 WITHIN THE INDUSTRY IN DEVELOPING NEW TECHNOLOGIES TO
11:49:53 ADDRESS SPILLS. MAYBE IT'S MOVING A LOT FASTER
11:49:55 RIGHT NOW AS WE SPEAK, BUT OVER A LONG PERIOD OF TIME IT'S BEEN
11:50:00 RELATIVELY SLOW GIVEN THE THREAT.
11:50:01 CAN YOU TALK A LITTLE BIT ABOUT HOW YOU FORESEE EITHER WITHIN
11:50:06 YOUR AGENCY OR -- OR IN PUTTING PRESSURE ON THE INDUSTRY.
11:50:11 HOW DO WE MORE QUICKLY DO WE MO OIL SPILL DISASTER TECHNOLOGY
11:50:18 GOING FORWARD? YES, IT IS A VERY GOOD
11:50:21 QUESTION. I THINK ONE OF THE THINGS THAT
11:50:26 THIS DISASTER HAS FOECUSED PEOPLE'S ATTENTIONS ON IS OIL
11:50:33 SPILL RESPONSE TECHNOLOGIES. IT HAS BEEN RECOGNIZED BY US AND
11:50:41 PLAYERS IN THE INDUSTRY. I THINK THAT IS ONE OF THE
11:50:44 REASONS WHY YESTERDAY WE SAW THE FOUR LARGEST MAJORS COME FORWARD
11:50:48 WITH THE OUTLINES OF A PLAN TO DEAL WITH OIL SPILL CONTAINMENT
11:50:54 IN THE GULF OF MEXICO. I THINK THAT THIS DISASTER HAS
11:50:58 FOCUSED PEOPLE'S ENERGIES AND IT WILL STIMULATE INNOVATION.
11:51:03 WE WILL BE DIRECTLY INVOLVED IN THAT PROCESS.
11:51:06 THE PROPOSAL THAT WAS MADE YESTERDAY IS AN INTERESTING
11:51:10 INTRIGUING ONE. BUT WE WILL WANT TO REVIEW AND
11:51:15 STUDY IT CAREFULLY. IT IS ONE THAT WE, AND YOU AND
11:51:19 THE AMERICAN PUBLIC IS GOING TO NEED TO HAVE CONFIDENCE IN.
11:51:24 MR. ISA FOR FIVE MINUTES. THANK YOU, MADAM CHAIR.
11:51:31 JUST ONE QUICK QUESTION, YOU KNOW MR. SECRETARY THAT YOUR
11:51:38 DECISION WAS ARBITRARY. IN LIGHT OF WHAT YOU SAID
11:51:44 EARLIER TODAY, WOULD YOU SAY THAT RESOURCES THAT ARE FREED UP
11:51:48 AT THE TIME OF THE KILL OF THIS WELL COULD JUST AS EASY BE THE
11:51:53 END OF THE MORATORIUM? AS YOU SAID EARLIER, CLEARLY
11:51:56 THERE WERE RESOURCES THAT YOU DIDN'T WANT TO HAVE NOT
11:52:00 AVAILABLE AS ONE IN 50,000 WELLS HAPPENED A SECOND TIME.
11:52:04 BUT WOULDN'T A TARGET OF THE KILLING OF THIS WELL BE JUST AS
11:52:09 APPROPRIATE FOR CONSIDERING LIMITED WELL-SUPERWELL-SUPERVIS
11:52:16 BACK INTO EXPLORATION OF THE EXISTING 22 RIGS?
11:52:21 CONGRESSMAN, I APPRECIATE YOUR OBSERVATION AND I
11:52:25 APPRECIATE THE SENSE OF URGENCY THAT YOU HAVE THAT THESE ISSUES
11:52:30 BE ADDRESSED. BUT THERE IS A TREMENDOUS AMOUNT
11:52:33 OF WORK THAT WILL BE UNFOLDING. I WILL HAVE A REPORT BACK FROM
11:52:38 THE OVERSIGHT SAFETY BOARD WHICH INCLUDES GREAT WORK FROM THE IN
11:52:43 SPECKER GENERAL AND HER STAFF THAT ARE FOCUSED IN ON THESE
11:52:48 ISSUES WHICH IS DUE ON I BELIEVE ON AUGUST THE 15th.
11:52:53 THE ACADEMY WILL HAVE A REPORT MORE ME BY OCTOBER 31st.
11:53:00 SO, IF THERE IS A POINT IN TIME BETWEEN NOW AND NOVEMBER 30th,
11:53:05 WHERE THE THREE QUESTIONS THAT I HAVE ALREADY ADDRESSED ARE
11:53:09 ADDRESSED TO OUR SATISFACTION, WE WILL REVISIT THAT TIMELINE.
11:53:13 I APPRECIATE THAT. I YIELD THE BALANCE OF TIME TO
11:53:17 MR. FORTENBERRY. THANK YOU FOR JOINING US
11:53:23 TODAY. THIS OIL SPILL IS AN
11:53:28 ENVIRONMENTAL CATASTROPHE. WE MUST WORK TOGETHER TO MAKE
11:53:34 THUR THAT THE LEAK IS CONTINUING TO BE STOPPED AND THAT THE
11:53:37 ENVIRONMENT IS CLEANED UP AND THAT WE WORK WITH THE RESOURCES
11:53:40 WE HAVE TO MAKE SURE THAT THIS NEVER HAPPENS AGAIN, IN THAT
11:53:45 REGARD, YOUR REASONING FOR THE MORATORIUM IS THAT OUR RESOURCES
11:53:49 ARE CURRENTLY DEPLOYED AND DEPLETED AND IN CASE THERE WAS A
11:53:54 SECOND SPILL LIKE THIS WE WOULD NOT HAVE THE RESOURCES TO WORK
11:53:58 AGAINST IT. BUT GIVEN THAT THERE IS THE
11:54:01 POTENTIAL FOR THIS LEAK TO BE PERMANENTLY STOPPED IN THE NEAR
11:54:05 TERM, YOUR CONSIDERATION OF THAT FACTOR IN TERMS OF THE
11:54:09 MORATORIUM DEADLINES I THINK IS REASONABLE.
11:54:11 THE SECOND POINT BEING GIVEN THAT THE RESOURCES THAT ARE
11:54:18 APPLIED ARE UNDER INTENSE PRESSURE TO MOVE OVERSEAS AND
11:54:24 THAT THIS WOULD CAUSE MORE IMPORTED OIL TO COME INTO OUR
11:54:29 WATERS, MORE TANKERS THAT ARE MORE DANGEROUS THAN THE DRILLING
11:54:37 ITSELF. IS THE MORATORIUM TIMELINE MORE
11:54:41 RISKY? A RELATED POINT IS THAT ALL
11:54:44 DRILL SOMETHING NOT THE SAME. BP WAS ENGAGED IN THE RISKIEST
11:54:48 TYPE OF DRILLING. IS THERE A CONSIDERATION THAT
11:54:53 THOSE MAY BE EXCEPTED AS WELL GIVEN THAT THE PROFILE IS LOWER?
11:54:58 CONGRESSMAN, THE ANSWER TO THAT IS YES.
11:55:00 AND THAT IS PART OF WHAT THE DIRECTOR WILL BE GATHERING
11:55:07 INFORMATION ON. THERE MAY BE DIFFERENT
11:55:08 ACTIVITIES AND DIFFERENT ZONES OF RISK THAT MIGHT BE ALLOWED TO
11:55:12 GO FORWARD. WE HAVE MADE ONE OF THOSE
11:55:16 FINDINGS WITH RESPECT TO THE S
11:55:29 SHALLOW WATER DRILLING AND THERE MAY BE OTHERS AS WE MOVE
11:55:30 FORWARD. SEG MEN STATION OF RISK BASED
11:55:31 ON THE HISTORICAL PAST, ANALYSIS OF RISK RATHER THAN A BLANKET
11:55:36 MORATORIUM? THERE MAY BE FOR EXAMPLE,
11:55:40 DIFFERENTIATION BETWEEN THE EXPIRATION WELLS IN THE DEEP
11:55:44 WATER AND WELLS THAT ARE BEING DRILLED INTO ALREADY DEVELOPED
11:55:51 RESERVOIRS THAT YOU KNOW EXACTLY WHAT IT IS THAT YOU ARE DRILLING
11:55:55 INTO AS OPPOSED TO THE EXPLORATORY TYPE OF WELLS.
11:56:00 SO THOSE ARE THE DISTINCTIONS THAT WE WILL BE TAKING A LOOK AT
11:56:03 IN THE MONTHS AHEAD. I THINK THE LAST THING THAT
11:56:07 WE WANT TO DO IS INCREASE PRESSURES FOR MORE WATER.
11:56:19 WITH THAT SAID, I WANT TO POINT OUT THAT I VISITED THE AREA
11:56:24 RECENTLY. THESE PEOPLE ARE EXHAUSTING
11:56:27 THEMSELVES TO SAVE THEIR WAY OF LIFE AND THE ENVIRONMENT --
11:56:31 I THINK YOU ARE HEARD. YOUR TIME HAS EXPIRED.
11:56:35 I HAD A GOOD VIDEO FOR YOU, BUT WE'LL HAVE TO DO IT AT
11:56:40 ANOTHER TIME. MISS MALONEY.
11:56:44 THANK YOU MADAM CHAIR AND I THANK YOU BOTH FOR YOUR
11:56:48 TESTIMONY THE DEVASTATION OF THE BP OIL SPILL HAS HIGHLIGHTED
11:56:53 MANY PROBLEMS IN WORKER'S SAFETY AND CONTAINMENT AND OVERSIGHT.
11:56:58 BUT IT HAS ESPECIALLY HIGHLIGHTED THE MISSMANAGEMENT
11:57:02 OF THE MMS, THE MINERALS AND MANAGEMENT SERVICE AGENCY WHICH
11:57:08 IF MANAGED APPROPRIATELY COULD BRING IN MILLIONS IF NOT
11:57:14 BILLIONS TO OUR TREASURY FROM OIL EXTRACTED FROM LAND OWNS BY
11:57:19 THE AMERICAN PEOPLE. UNDER THE CURRENT STRUCTURE, THE
11:57:23 GENERAL ACCOUNTING OFFICES FOUND THAT THE MMS SHOULD DO A GREAT
11:57:27 DEAL MORE TO IMPROVE THE ACCURACY OF THE DATA USED TO
11:57:32 COLLECT AND VERIFY THE OIL ROYALTIES, AND I HAVE A BILL IN
11:57:38 HR-1462, WHICH WOULD REQUIRE THE NATIONAL ACADEMY OF ENGINEERING
11:57:43 TO STUDY AND COME FORWARD WITH I
11:57:53 IMPROVEMENTS AND REM DECISIONS OF WAYS THAT WE COULD MORE
11:57:54 ACCURATELY COLLECT THE ROYALTIES ON THE PRODUCTION OF OIL.
11:57:55 I WOULD LIKE MR. SECRETARY, IF YOU WOULD REVIEW IT AND THIS
11:57:59 COULD BE HELPFUL IN DEFINING IT IN A WAY THAT WE COULD BE MORE
11:58:04 SUCCESSFUL IN GIVING THE AMERICAN PEOPLE THE TAXPAYERS
11:58:08 THEIR JUST REWARD OR THEIR JUST TAX REVENUES OR REVENUES FROM
11:58:13 THIS OIL. ACCORDING TO THE GENERAL
11:58:16 ACCOUNTING OFFICE REPORT, THAT WAS GIVEN TO THIS COMMITTEE, THE
11:58:22 REVENUE SHARE THAT THE GOVERNMENT COLLECTS FROM OIL AND
11:58:25 GAS PRODUCED IN THE GULF RANKS 93rd AMONG THE LOWEST OF THE 104
11:58:32 REVENUE COLLECTION REGIMES AROUND THE WORLD.
11:58:36 ARE WE 93rd IN COLLECTION? I HAVE NOT -- I CANNOT
11:58:48 COMMENT ON THAT STATISTIC. BUT WE HAVE BEEN COLLECTING
11:58:51 RECOMMENDATIONS FROM THE ACCOUNTING OFFICE AS WELL AS
11:58:56 RECOMMENDATIONS THAT CAME FORTH FROM THE KERRY-GARNS COMMISSION
11:59:00 THAT ADDRESSED MANY OF THESE ISSUES.
11:59:03 AT THE END OF THE DAY, WHAT W